PBF Logistics LP
Company Summary
Financial Data:
NYSE:PBFX from Google FinanceTickers:
-
PBFX - New York Stock Exchange
Recent news
- 2/16/2023 - PBF Energy Simplifies... (subscriber access)
- 1/5/2023 - PBF Logistics Redeems... (subscriber access)
- 12/2/2022 - PBF Energy Acquires PBF... (subscriber access)
- 4/25/2019 - PBF Logistics Acquires... (subscriber access)
- 4/25/2019 - PBF Logistics Reports... (subscriber access)
Investor Presentations
Company Transactions
Date: 6/30/2019
Type: Acquisition
BUYERS:
PBF Logistics LP
SELLERS:
Torrance Valley Pipeline Company
DETAILS:
COST: 200 $MM
VOLUMES: 50 Percent
NOTES:
PBF Logistics acquired the remaining 50% interest in Torrance Valley Pipeline Company for roughly $200 million.
PBF Logistics acquired the remaining 50% interest in Torrance Valley Pipeline Company for roughly $200 million.
Date: 10/2/2018
Type: Acquisition
BUYERS:
PBF Logistics LP
SELLERS:
CPI Operations LLC
ASSETS:
Paulsboro Storage Facility
DETAILS:
COST: 107 $MM
NOTES:
The assets acquired include a storage facility containing four million barrels of multi-use storage capacity, a rail facility, a truck terminal, and other assets located on the Delaware River in Paulsboro, New Jersey. The assets are expected to provide synergy opportunities with PBF Energy. Total consideration is $107 million, composed of an initial payment of 75 million with the balance being payable one year after closing.
The assets acquired include a storage facility containing four million barrels of multi-use storage capacity, a rail facility, a truck terminal, and other assets located on the Delaware River in Paulsboro, New Jersey. The assets are expected to provide synergy opportunities with PBF Energy. Total consideration is $107 million, composed of an initial payment of 75 million with the balance being payable one year after closing.
REGIONS:
Northeast
Date: 4/17/2017
Type: Acquisition
BUYERS:
PBF Logistics LP
SELLERS:
Sunoco LP
ASSETS:
Toledo Refined Products Terminal
DETAILS:
COST: 10 $MM
NOTES:
REGIONS:
Midwest
Date: 9/15/2016
Type: Acquisition
NOTES:
PBF Logistics acquiring 50% interest in Torrance Valley Pipeline Company from a subsidiary of PBF Energy.
PBF Logistics acquiring 50% interest in Torrance Valley Pipeline Company from a subsidiary of PBF Energy.
REGIONS:
West
Date: 4/29/2016
Type: Acquisition
NOTES:
East Coast Terminal Acquisition
East Coast Terminal Acquisition
REGIONS:
United States
News & Press Releases
Criterion News
- 2/16/2023 - PBF Energy Simplifies... (subscriber access)
- 1/5/2023 - PBF Logistics Redeems... (subscriber access)
- 12/2/2022 - PBF Energy Acquires PBF... (subscriber access)
- 4/25/2019 - PBF Logistics Acquires... (subscriber access)
- 4/25/2019 - PBF Logistics Reports... (subscriber access)
- 3/1/2019 - PBF Energy & PBF... (subscriber access)
- 2/18/2019 - PBF Logistics Reports... (subscriber access)
- 1/14/2019 - Phillips 66 Partners, Harvest Midstream, and PBF Logistics Report Open Season for ACE Pipeline System in Louisiana
- 10/2/2018 - PBF Logistics Acquires... (subscriber access)
- 2/15/2018 - PBF Logistics Announces... (subscriber access)
- 10/4/2017 - PBF Logistics Announces... (subscriber access)
- 4/17/2017 - PBF Logistics Acquires... (subscriber access)
- 9/13/2016 - PBF Logistics Reports... (subscriber access)
- 8/12/2016 - PBF Logistics Prices 4... (subscriber access)
- 8/12/2016 - PBF Logistics Enters Letter of Intent to Acquire Interest in Torrance Valley Pipeline
- 8/2/2016 - PBF Energy 2Q16 Gross Refining Margins Drop 36% Y/Y
- 8/2/2016 - PBF Energy Refining... (subscriber access)
- 8/2/2016 - PBF Energy Reports 2Q16... (subscriber access)
- 5/2/2016 - PBF Logistics Closes on... (subscriber access)
- 3/31/2016 - PBF Logistics Commences $100 Million Equity Offering
Press Releases
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the economic returns on various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the economic returns on various investment opportunities.
- Increased precautions to keep our employees healthy and safe, including social distancing, additional personal protective equipment and enhanced facility cleanings. We have not had to temporarily close any of our refineries due to a COVID-19 outbreak;
- Reduced 2020 planned capital expenditures by a total of more than $350 million, an increase from our originally announced $240 million reduction. This is an estimated aggregate reduction of approximately 50% to our previous 2020 budget. Early in the second quarter, PBF completed its only major turnaround activity for 2020 at its Toledo refinery. We intend to satisfy all required safety, environmental and regulatory capital commitments, while continuing to explore further opportunities to minimize our near-term capital expenditure requirements;
- Reduced corporate overhead expenses by over $20 million on an annual basis primarily through salary reductions;
- Suspended PBF Energy's quarterly dividend of $0.30 per share, anticipated to preserve approximately $35 million of cash each quarter; and
- Evaluating various other liquidity and cash flow optimization options.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the economic returns on various investment opportunities.
- 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 Partnership's operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of the Partnership's assets to generate sufficient cash flow to make distributions to the Partnership's unitholders;
- the Partnership's ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the economic returns on various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the economic returns on various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly-traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- Revenue of between $78.3 million and $79.3 million;
- Net income of between $21.6 million and $22.6 million;
- EBITDA of between $42.4 million and $43.4 million (see below for a reconciliation of net income to EBITDA);
- EBITDA attributable to PBFX of between $36.3 million and $37.3 million (see below for a reconciliation of net income to EBITDA attributable to PBFX);
- Included in results for the first quarter are $6.1 million of transaction costs, unit-based compensation and non-recurring charges negatively impacting net income and EBITDA and EBITDA attributable to PBFX comprised of transaction-related expenses primarily associated with the IDR simplification transaction, unit-based compensation, environmental remediation costs associated with our East Coast Terminals and a true-up for revenue associated with the Paulsboro Natural Gas Pipeline due to a reduction in its pipeline tariff based on the lower than budget project costs; and
- Adjusted EBITDA of between $42.4 million and $43.4 million, after adding back $6.1 million of transaction, unit-based compensation and non-recurring charges.
- they do not reflect depreciation expense or our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
- they do not reflect changes in, or cash requirements for, our working capital needs;
- they do not reflect our interest expense, or the cash requirements necessary to service interest or principal payments, on our debt; and
- they do not reflect transaction costs, unit-based compensation and non-recurring charges incurred during the period.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unit holders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- Alerian Midstream Energy Index (AMNA). Altus Midstream (NASDAQ: ALTM) and Equitrans Midstream (NYSE: ETRN) will be added.
- Alerian US Midstream Energy Index (AMUS). Altus Midstream (ALTM) and Equitrans Midstream (ETRN) will be added.
- Alerian Midstream Energy Select Index (AMEI). CNX Midstream Partners (NYSE: CNXM) will be added.
- Alerian MLP Index (AMZ) and Alerian MLP Equal Weight Index (AMZE). Antero Midstream GP (NYSE: AMGP), American Midstream Partners (NYSE: AMID), CNX Midstream Partners (CNXM), Delek Logistics Partners (NYSE: DKL), EnLink Midstream LLC (NYSE: ENLC), EQGP Holdings (NYSE: EQGP), Green Plains Partners (NASDAQ: GPP), Hess Midstream Partners (NYSE: HESM), Martin Midstream Partners (NASDAQ: MMLP), Oasis Midstream Partners (NYSE: OMP), PBF Logistics (NYSE: PBFX), Sanchez Midstream Partners (NYSEAMERICAN: SNMP), TransMontaigne Partners (NYSE: TLP), USD Partners (NYSE: USDP), and Western Gas Equity Partners (NYSE: WGP) will be added.
- Alerian Energy Infrastructure Capital Strength Select Index (AMCS). Buckeye Partners (NYSE: BPL), Equitrans Midstream (ETRN), and HollyFrontier (NYSE: HFC) will be added. EQGP Holdings (EQGP) will be removed.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unit holders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unit holders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unit holders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unit holders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unit holders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unit holders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unit holders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
- our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unit holders;
- our ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
PBF Logistics to attend Wells Fargo Virtual Midstream and Utility Symposium
Source: PR Newswire
PARSIPPANY, N.J., Dec. 4, 2020 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that the partnership's management will be participating in the Wells Fargo Virtual Midstream and Utility Symposium on December 8, 2020.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-attend-wells-fargo-virtual-midstream-and-utility-symposium-301186693.html
SOURCE PBF Logistics LP
Article Date
12/4/202010/29/2020 - PBF Logistics Declares Quarterly Distribution of $0.30 per Unit and Announces Third Quarter 2020 Earnings Results
PBF Logistics Declares Quarterly Distribution of $0.30 per Unit and Announces Third Quarter 2020 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., Oct. 29, 2020 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) (the "Partnership") today announced third quarter 2020 net income attributable to the limited partners of $44.2 million, or $0.71 per common unit. During the quarter, the Partnership generated cash from operations of $61.7 million, EBITDA attributable to PBFX of $59.3 million, Adjusted EBITDA of $60.5 million and distributable cash flow of $48.5 million. Included in reported results for the third quarter are $1.2 million, or $0.02 per common unit, of non-cash unit-based compensation expense and continued environmental remediation costs associated with the East Coast Terminals. Also included in results for the third quarter is a $4.7 million, or $0.7 per common unit, net gain to the Partnership as a result of a contract termination at one of its storage facilities. This includes a gain on the change in contingent consideration, offset by impairment expense and acceleration of depreciation and amortization on the applicable assets.
"Our focus during the third quarter continued to be on the health and safety of our employees and operations. We continuously monitored the effectiveness of our enhanced safety protocols to ensure the well-being of our employees while continuing uninterrupted service to our customers. Our strong contracted minimum volume commitments and base-load regional demand have continued to provide stable support for our business," said PBF Logistics GP LLC Executive Vice President Matt Lucey. "We announced a distribution of $0.30 per unit today and continued to reduce leverage during the third quarter. Going forward, we intend to remain conservative in our capital allocation and focus on strengthening the balance sheet."
As of September 30, 2020, the Partnership had approximately $310.0 million of liquidity, including approximately $27.9 million in cash and cash equivalents, and access to approximately $282.1 million under its revolving credit facility.
PBF Logistics Declares Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.30 per common unit. The distribution is payable on November 30, 2020, to unitholders of record at the close of business on November 16, 2020.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
The Partnership defines EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization, impairment expense and change in contingent consideration. The Partnership defines EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization, impairment expense and change in contingent consideration attributable to PBFX, which excludes results of acquisitions from affiliates of PBF Energy prior to the effective dates of such transactions and earnings attributable to the CPI earn-out (the portion of earnings associated with an earn-out provision related to the purchase of CPI Operations LLC ("CPI"), (the "Contingent Consideration")). The Partnership defines Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. The Partnership defines distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").
For additional information on the Partnership's non-GAAP financial measures, including reconciliations to their most directly comparable financial measures calculated and presented in accordance with GAAP, refer to the supplemental information provided in "Results of Operations" and the Earnings Release Tables included herein.
Conference Call Information
The Partnership will host a conference call and webcast regarding quarterly results and other business matters on Thursday, October 29, 2020, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (877) 876-9173 or (785) 424-1667, conference ID: PBFXQ320. The audio replay will be available two hours after the end of the call through November 12, 2020, by dialing (800) 753-4606 or (402) 220-2103.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets, the possibility that the Partnership may not consummate any potential future acquisitions, the Partnership's plans for financing any potential future acquisitions, the duration and severity of the COVID-19 pandemic, and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Business Developments
COVID-19
The outbreak of the coronavirus disease 2019 ("COVID-19") pandemic continues to negatively impact worldwide economic and commercial activity and financial markets, as well as global demand for petroleum and petrochemical products. The COVID-19 pandemic and resulting governmental and consumer responses have also resulted in significant business and operational disruptions, including business and school closures, supply chain disruptions, travel restrictions, stay-at-home orders and limitations on the availability of workforces. Such impacts have resulted in revenue declines due to lower demand and throughput volumes across certain of our facilities, which may continue to affect our business for the foreseeable future. In response to the COVID-19 pandemic, we are taking steps to mitigate potential adverse impacts on our business and operations by limiting capital expenditures, reducing discretionary activities and third-party services and lowering our quarterly distribution to our minimum quarterly distribution of $0.30 per unit. This distribution reduction, effective with the distribution for the first quarter of 2020 that was paid on June 17, 2020, represents a strategic shift to build our cash flow coverage, de-lever our business and increase our financial resources as we continue to identify potential organic growth projects or strategic acquisitions. In addition, our parent sponsor and largest customer, PBF Energy Inc., has endeavored to take the necessary steps to preserve liquidity and solidify its operations under the adverse market conditions caused by the COVID-19 pandemic.
The full extent to which the COVID-19 pandemic impacts our business and operations, or that of our parent sponsor, is unknown and will depend on the severity, location and duration of the effects and spread of COVID-19, the actions undertaken by national, regional and local governments and health officials to contain the virus or treat its effects, related consumer responses and how quickly and to what extent economic conditions improve and normal business and operating conditions resume.
Factors Affecting Comparability
The following tables present our results of operations, related operational information and reconciliations of net income and net cash provided by operating activities to our EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow (each as defined below) for the three and nine months ended September 30, 2020 and 2019.
On October 1, 2018, we acquired from Crown Point International, LLC, its wholly-owned subsidiary, CPI Operations LLC ("CPI"), whose assets include a storage facility with multi-use storage capacity, an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and certain other idled assets (the "East Coast Storage Assets") located on the Delaware River near Paulsboro, New Jersey (the "East Coast Storage Assets Acquisition"). In connection with the acquisition, the purchase and sale agreement included an earn-out provision related to an existing commercial agreement with a third party, based on the future results of certain of the acquired idled assets, which recommenced operations in October 2019. Pursuant to the terms of the commercial agreement, in the third quarter of 2020, the counterparty exercised its right to terminate the contract at the conclusion of the current contract year, resulting in an adjustment to the contingent consideration (as defined below). In addition, as a result of the contract termination, we recorded an impairment charge to write-down the related processing unit assets and customer contract intangible asset of $3.0 million and $4.0 million, respectively. The impairment charge represents a write-down of the CPI assets due to the reduction of future earnings as a result of the contract termination. The fair values of the assets were determined using the income approach and was based on the expected undiscounted future net cash flows over the remaining contractual period.
On April 24, 2019, we entered into a Contribution Agreement with PBF Energy Company LLC ("PBF LLC"), pursuant to which PBF LLC contributed to us all of the issued and outstanding limited liability company interests of TVP Holding Company LLC ("TVP Holding"), which held the remaining 50% equity interest in Torrance Valley Pipeline Company LLC ("TVPC"), for total consideration of $200.0 million (the "TVPC Acquisition"). Subsequent to the closing of the TVPC Acquisition on May 31, 2019, we own 100% of the equity interest in TVPC.
On April 24, 2019, we entered into subscription agreements to sell an aggregate of 6,585,500 common units to certain institutional investors in a registered direct public offering (the "2019 Registered Direct Offering") for gross proceeds of approximately $135.0 million. The 2019 Registered Direct Offering closed on April 29, 2019.
In addition, our results in the current year have been negatively affected by the impact of the COVID-19 pandemic on our business, including lower throughput volumes at our terminals, as the industry reacts to the related economic downturn and volatile commodity markets.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization, impairment expense and change in contingent consideration. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization, impairment expense and change in contingent consideration attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions and earnings attributable to the CPI earn-out (the portion of earnings associated with an earn-out provision related to the purchase of CPI (the "Contingent Consideration")). We define Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is calculated by dividing distributable cash flow by our total distribution declared. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with GAAP, they are supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA provides useful information to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance for current and comparative periods. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance and it provides investors with another perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, income from operations, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all, items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue (a): | ||||||||||||||||
Affiliate | $ | 70,716 | $ | 78,026 | $ | 218,681 | $ | 224,014 | ||||||||
Third-party | 18,294 | 8,351 | 52,487 | 23,958 | ||||||||||||
Total revenue | 89,010 | 86,377 | 271,168 | 247,972 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Operating and maintenance expenses (a) | 22,730 | 28,356 | 75,385 | 86,825 | ||||||||||||
General and administrative expenses | 4,112 | 4,552 | 12,798 | 18,142 | ||||||||||||
Depreciation and amortization | 14,305 | 9,079 | 36,821 | 26,654 | ||||||||||||
Impairment expense | 7,000 | — | 7,000 | — | ||||||||||||
Change in contingent consideration | (14,765) | — | (14,235) | — | ||||||||||||
Total costs and expenses | 33,382 | 41,987 | 117,769 | 131,621 | ||||||||||||
Income from operations | 55,628 | 44,390 | 153,399 | 116,351 | ||||||||||||
Other expense: | ||||||||||||||||
Interest expense, net | (10,544) | (12,230) | (33,929) | (34,359) | ||||||||||||
Amortization of loan fees and debt premium | (328) | (444) | (1,309) | (1,339) | ||||||||||||
Accretion on discounted liabilities | (594) | (722) | (1,726) | (2,255) | ||||||||||||
Net income | 44,162 | 30,994 | 116,435 | 78,398 | ||||||||||||
Less: Net income attributable to noncontrolling interest (g) | — | — | — | 7,881 | ||||||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 44,162 | $ | 30,994 | $ | 116,435 | $ | 70,517 | ||||||||
Net income per limited partner unit (h): | ||||||||||||||||
Common units - basic | $ | 0.71 | $ | 0.50 | $ | 1.87 | $ | 1.23 | ||||||||
Common units - diluted | 0.71 | 0.50 | 1.87 | 1.23 | ||||||||||||
Weighted-average limited partner units outstanding (h): | ||||||||||||||||
Common units - basic | 62,519,105 | 62,361,974 | 62,424,217 | 57,314,382 | ||||||||||||
Common units - diluted | 62,529,489 | 62,460,669 | 62,429,475 | 57,385,166 | ||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||
PBF LOGISTICS LP | ||||||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||||||
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||||||||||
(Unaudited, amounts in thousands except barrel and per unit data) | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Transportation and Terminaling Segment | ||||||||||||||||||||
Terminals | ||||||||||||||||||||
Total throughput (barrels per day ("bpd")) (b)(d) | 199,139 | 334,340 | 240,159 | 287,027 | ||||||||||||||||
Lease tank capacity (average lease capacity barrels per month) (d) | 2,587,334 | 2,088,044 | 2,343,637 | 2,229,890 | ||||||||||||||||
Pipelines | ||||||||||||||||||||
Total throughput (bpd) (b)(d) | 143,273 | 165,757 | 153,909 | 158,307 | ||||||||||||||||
Lease tank capacity (average lease capacity barrels per month) (d) | 1,123,864 | 1,388,849 | 1,144,915 | 1,355,645 | ||||||||||||||||
Storage Segment | ||||||||||||||||||||
Storage capacity reserved (average shell capacity barrels per month) (d) | 7,687,505 | 8,033,679 | 7,634,264 | 8,006,785 | ||||||||||||||||
Total throughput (bpd) (b)(d) | 21,835 | — | 24,704 | — | ||||||||||||||||
Cash Flow Information: | ||||||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||||
Operating activities | $ | 61,741 | $ | 39,757 | $ | 141,429 | $ | 95,643 | ||||||||||||
Investing activities | (1,763) | (8,028) | (9,635) | (23,180) | ||||||||||||||||
Financing activities | (53,695) | 849 | (138,909) | (39,793) | ||||||||||||||||
Net change in cash and cash equivalents | $ | 6,283 | $ | 32,578 | $ | (7,115) | $ | 32,670 | ||||||||||||
Other Financial Information: | ||||||||||||||||||||
EBITDA attributable to PBFX (c) | $ | 59,281 | $ | 53,469 | $ | 174,457 | $ | 132,825 | ||||||||||||
Adjusted EBITDA (c) | $ | 60,519 | $ | 55,451 | $ | 178,459 | $ | 146,744 | ||||||||||||
Distributable cash flow (c) | $ | 48,486 | $ | 39,538 | $ | 136,233 | $ | 99,074 | ||||||||||||
Quarterly distribution declared per unit (e) | $ | 0.3000 | $ | 0.5200 | $ | 0.9000 | $ | 1.5450 | ||||||||||||
Distributions (e): | ||||||||||||||||||||
Common units | $ | 18,848 | $ | 32,709 | $ | 56,541 | $ | 97,188 | ||||||||||||
Total distributions | $ | 18,848 | $ | 32,709 | $ | 56,541 | $ | 97,188 | ||||||||||||
Coverage ratio (c) | 2.57x | 1.21x | 2.41x | 1.02x | ||||||||||||||||
Capital expenditures | $ | 1,763 | $ | 8,028 | $ | 9,635 | $ | 23,180 | ||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
PBF LOGISTICS LP | |||||||||
EARNINGS RELEASE TABLES | |||||||||
KEY OPERATING AND FINANCIAL INFORMATION (continued) | |||||||||
(Unaudited, in thousands) | |||||||||
September 30, | December 31, | ||||||||
Balance Sheet Information: | 2020 | 2019 | |||||||
Cash and cash equivalents (f) | $ | 27,851 | $ | 34,966 | |||||
Property, plant and equipment, net | 829,832 | 854,610 | |||||||
Total assets | 941,767 | 973,002 | |||||||
Total debt (f) | 733,414 | 802,104 | |||||||
Total liabilities | 788,211 | 867,919 | |||||||
Partners' equity | 153,556 | 105,083 | |||||||
Total liabilities and equity | 941,767 | 973,002 | |||||||
See Footnotes to Earnings Release Tables | |||||||||
PBF LOGISTICS LP | |||||||||||||||||
EARNINGS RELEASE TABLES | |||||||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER GAAP | |||||||||||||||||
TO EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||||
(Unaudited, in thousands) | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Reconciliation of net income to EBITDA and distributable cash flow (c): | |||||||||||||||||
Net income | $ | 44,162 | $ | 30,994 | $ | 116,435 | $ | 78,398 | |||||||||
Interest expense, net | 10,544 | 12,230 | 33,929 | 34,359 | |||||||||||||
Amortization of loan fees and debt premium | 328 | 444 | 1,309 | 1,339 | |||||||||||||
Accretion on discounted liabilities | 594 | 722 | 1,726 | 2,255 | |||||||||||||
Change in contingent consideration | (14,765) | — | (14,235) | — | |||||||||||||
Impairment expense | 7,000 | — | 7,000 | — | |||||||||||||
Depreciation and amortization | 14,305 | 9,079 | 36,821 | 26,654 | |||||||||||||
EBITDA | 62,168 | 53,469 | 182,985 | 143,005 | |||||||||||||
Less: Noncontrolling interest EBITDA (g) | — | — | — | 10,180 | |||||||||||||
Less: Earnings attributable to the CPI earn-out | 2,887 | — | 8,528 | — | |||||||||||||
EBITDA attributable to PBFX | 59,281 | 53,469 | 174,457 | 132,825 | |||||||||||||
Non-cash unit-based compensation expense | 995 | 1,271 | 3,242 | 5,622 | |||||||||||||
Cash interest | (10,760) | (12,334) | (34,481) | (34,760) | |||||||||||||
Maintenance capital expenditures attributable to PBFX | (1,030) | (2,868) | (6,985) | (4,613) | |||||||||||||
Distributable cash flow | $ | 48,486 | $ | 39,538 | $ | 136,233 | $ | 99,074 | |||||||||
Reconciliation of net cash provided by operating activities to EBITDA and distributable cash flow (c): | |||||||||||||||||
Net cash provided by operating activities | $ | 61,741 | $ | 39,757 | $ | 141,429 | $ | 95,643 | |||||||||
Change in operating assets and liabilities | (9,122) | 2,753 | 10,869 | 18,625 | |||||||||||||
Interest expense, net | 10,544 | 12,230 | 33,929 | 34,359 | |||||||||||||
Non-cash unit-based compensation expense | (995) | (1,271) | (3,242) | (5,622) | |||||||||||||
EBITDA | 62,168 | 53,469 | 182,985 | 143,005 | |||||||||||||
Less: Noncontrolling interest EBITDA (g) | — | — | — | 10,180 | |||||||||||||
Less: Earnings attributable to the CPI earn-out | 2,887 | — | 8,528 | — | |||||||||||||
EBITDA attributable to PBFX | 59,281 | 53,469 | 174,457 | 132,825 | |||||||||||||
Non-cash unit-based compensation expense | 995 | 1,271 | 3,242 | 5,622 | |||||||||||||
Cash interest | (10,760) | (12,334) | (34,481) | (34,760) | |||||||||||||
Maintenance capital expenditures attributable to PBFX | (1,030) | (2,868) | (6,985) | (4,613) | |||||||||||||
Distributable cash flow | $ | 48,486 | $ | 39,538 | $ | 136,233 | $ | 99,074 | |||||||||
See Footnotes to Earnings Release Tables | |||||||||||||||||
PBF LOGISTICS LP | |||||||||||||||||
EARNINGS RELEASE TABLES | |||||||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER GAAP | |||||||||||||||||
TO EBITDA AND ADJUSTED EBITDA | |||||||||||||||||
(Unaudited, in thousands) | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Reconciliation of net income to EBITDA and Adjusted EBITDA (c): | |||||||||||||||||
Net income | $ | 44,162 | $ | 30,994 | $ | 116,435 | $ | 78,398 | |||||||||
Interest expense, net | 10,544 | 12,230 | 33,929 | 34,359 | |||||||||||||
Amortization of loan fees and debt premium | 328 | 444 | 1,309 | 1,339 | |||||||||||||
Accretion on discounted liabilities | 594 | 722 | 1,726 | 2,255 | |||||||||||||
Change in contingent consideration | (14,765) | — | (14,235) | — | |||||||||||||
Impairment expense | 7,000 | — | 7,000 | — | |||||||||||||
Depreciation and amortization | 14,305 | 9,079 | 36,821 | 26,654 | |||||||||||||
EBITDA | 62,168 | 53,469 | 182,985 | 143,005 | |||||||||||||
Less: Noncontrolling interest EBITDA (g) | — | — | — | 10,180 | |||||||||||||
Less: Earnings attributable to the CPI earn-out | 2,887 | — | 8,528 | — | |||||||||||||
EBITDA attributable to PBFX | 59,281 | 53,469 | 174,457 | 132,825 | |||||||||||||
Acquisition and transaction costs | 6 | 281 | 116 | 3,389 | |||||||||||||
Non-cash unit-based compensation expense | 995 | 1,271 | 3,242 | 5,622 | |||||||||||||
East Coast Terminals environmental remediation costs | 237 | 430 | 644 | 4,026 | |||||||||||||
PNGPC tariff true-up adjustment | — | — | — | 882 | |||||||||||||
Adjusted EBITDA | $ | 60,519 | $ | 55,451 | $ | 178,459 | $ | 146,744 | |||||||||
See Footnotes to Earnings Release Tables | |||||||||||||||||
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Three Months Ended September 30, 2020 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 66,992 | $ | 22,018 | $ | — | $ | 89,010 | ||||||||
Depreciation and amortization | 7,010 | 7,295 | — | 14,305 | ||||||||||||
Income (loss) from operations | 43,377 | 16,363 | (4,112) | 55,628 | ||||||||||||
Other expense | — | — | 11,466 | 11,466 | ||||||||||||
Capital expenditures | 1,438 | 325 | — | 1,763 | ||||||||||||
Three Months Ended September 30, 2019 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 73,269 | $ | 13,108 | $ | — | $ | 86,377 | ||||||||
Depreciation and amortization | 7,051 | 2,028 | — | 9,079 | ||||||||||||
Income (loss) from operations | 43,596 | 5,346 | (4,552) | 44,390 | ||||||||||||
Other expense | — | — | 13,396 | 13,396 | ||||||||||||
Capital expenditures | 2,781 | 5,247 | — | 8,028 | ||||||||||||
Nine Months Ended September 30, 2020 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 203,944 | $ | 67,224 | $ | — | $ | 271,168 | ||||||||
Depreciation and amortization | 21,105 | 15,716 | — | 36,821 | ||||||||||||
Income (loss) from operations | 127,557 | 38,640 | (12,798) | 153,399 | ||||||||||||
Other expense | — | — | 36,964 | 36,964 | ||||||||||||
Capital expenditures | 6,469 | 3,166 | — | 9,635 | ||||||||||||
Nine Months Ended September 30, 2019 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 208,884 | $ | 39,088 | $ | — | $ | 247,972 | ||||||||
Depreciation and amortization | 20,831 | 5,823 | — | 26,654 | ||||||||||||
Income (loss) from operations | 120,676 | 13,817 | (18,142) | 116,351 | ||||||||||||
Other expense | — | — | 37,953 | 37,953 | ||||||||||||
Capital expenditures | 15,014 | 8,166 | — | 23,180 | ||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
SEGMENT FINANCIAL INFORMATION (continued) | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Balance at September 30, 2020 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total assets | $ | 705,416 | $ | 213,118 | $ | 23,233 | $ | 941,767 | ||||||||
Balance at December 31, 2019 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total assets | $ | 726,374 | $ | 228,495 | $ | 18,133 | $ | 973,002 | ||||||||
PBF LOGISTICS LP | |||||||||||
EARNINGS RELEASE TABLES | |||||||||||
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
(Unaudited, in thousands, except per unit data) | |||||||||||
(a) | See discussion of the factors affecting comparability noted on page 4. Our results of operations may not be comparable to the historical results of operations for the reasons described below: | ||||||||||
Revenue - On October 1, 2018, we closed the East Coast Storage Assets Acquisition, which was accounted for as a business combination. In October 2019, we recommenced operations of certain of the acquired idled assets, which began revenue generating activities. As such, there was no revenue associated with the acquired idled assets prior to their recommencement. | |||||||||||
On May 31, 2019, we closed the TVPC Acquisition in which we acquired the remaining 50% equity interest in TVPC. As such, we now own 100% of the equity interest in TVPC and no longer record a noncontrolling interest related to our ownership of TVPC. | |||||||||||
Operating and maintenance expenses - As a result of our acquisitions and the completion of certain organic growth projects, our operating expenses are not comparative to prior periods as it pertains to expenses associated with those assets. | |||||||||||
In addition, our results in the current year have been negatively affected by the impact of the COVID-19 pandemic on our business, including lower throughput at our terminals, as the industry reacts to the related economic downturn and volatile commodity markets. | |||||||||||
(b) | Calculated as the sum of the average throughput per day for each asset group for the periods presented. | ||||||||||
(c) | See "Non-GAAP Financial Measures" on page 5 for definitions of EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA, distributable cash flow and coverage ratio. | ||||||||||
(d) | Operating information reflects activity subsequent to our acquisitions, the execution of the commercial agreements with PBF Holding and the completion of certain organic growth projects. | ||||||||||
(e) | On October 29, 2020, we announced a quarterly cash distribution of $0.30 per limited partner unit based on the results of the third quarter of 2020. The distribution is payable on November 30, 2020 to PBFX unitholders of record at the close of business on November 16, 2020. The total distribution amount includes the expected distributions to be made related to third quarter earnings. | ||||||||||
(f) | Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents from total debt. We believe this measurement is 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. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of September 30, 2020 and December 31, 2019 was $705,563 and $767,138, respectively. | ||||||||||
(g) | Prior to the TVPC Acquisition, our wholly-owned subsidiary, PBFX Operating Company LLC ("PBFX Op Co"), held a 50% controlling equity interest in TVPC, with the other 50% equity interest in TVPC owned by TVP Holding, a subsidiary of PBF Holding. PBFX Op Co was the sole managing member of TVPC. We, through our ownership of PBFX Op Co, consolidated the financial results of TVPC and recorded a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated statements of operations included the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated balance sheets included the portion of net assets of TVPC attributable to TVP Holding. | ||||||||||
Subsequent to the TVPC Acquisition, we own 100% of the equity interest in TVPC and no longer record a noncontrolling interest related to TVPC. | |||||||||||
(h) | We base our calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during the period and the amount of available cash that has been, or will be, distributed to the limited partners. | ||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-declares-quarterly-distribution-of-0-30-per-unit-and-announces-third-quarter-2020-earnings-results-301162614.html
SOURCE PBF Logistics LP
Article Date
10/29/2020PBF Logistics Declares Quarterly Distribution of $0.30 per Unit and Announces Second Quarter 2020 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., July 31, 2020 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX, the "Partnership") today announced second quarter 2020 net income attributable to the limited partners of $37.5 million, or $0.60 per common unit. During the quarter, the Partnership generated cash from operations of $61.0 million, EBITDA attributable to PBFX of $58.9 million, Adjusted EBITDA of $60.0 million and distributable cash flow of $47.0 million. Included in reported results for the second quarter are $1.1 million, or $0.02 per common unit, of expenses related to pending and non-consummated acquisitions, non-cash unit-based compensation and environmental remediation costs associated with the East Coast Terminals.
"Our focus during the second quarter was on the safety of our employees and operations as we implemented many additional safety protocols to ensure business continuity. Our strong contracted minimum volume commitments largely insulated us from the impacts of the pandemic and resulting decrease in volumes. We continued to support our customers during this disruptive time and we expect our revenues to remain well-supported by our long-term contracts in the coming quarters," said PBF Logistics GP LLC Executive Vice President Matt Lucey. "We announced a distribution of $0.30 per unit today and used excess cash to reduce leverage by paying down a portion of our revolving credit facility. Delevering the business and strengthening the balance sheet will position the Partnership to be opportunistic."
As of June 30, 2020, the Partnership had approximately $268.7 million of liquidity, including approximately $21.6 million in cash and cash equivalents, and access to approximately $247.1 million under its revolving credit facility.
PBF Logistics Declares Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.30 per common unit. The distribution is payable on August 26, 2020, to unitholders of record at the close of business on August 13, 2020.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
The Partnership defines EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization and change in contingent consideration. The Partnership defines EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization and change in contingent consideration attributable to PBFX, which excludes results of acquisitions from affiliates of PBF Energy prior to the effective dates of such transactions and earnings attributable to the CPI earn-out (the portion of earnings associated with an earn-out provision related to the purchase of CPI Operations LLC ("CPI"),(the "Contingent Consideration")). The Partnership defines Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. The Partnership defines distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").
For additional information on the Partnership's non-GAAP financial measures, including reconciliations to their most directly comparable financial measures calculated and presented in accordance with GAAP, refer to the supplemental information provided in "Results of Operations" and the Earnings Release Tables included herein.
Conference Call Information
The Partnership will host a conference call and webcast regarding second quarter results and other business matters on Friday, July 31, 2020, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (800) 459-5346 or (203) 518-9544, conference ID: PBFXQ220. The audio replay will be available two hours after the end of the call through August 14, 2020, by dialing (800) 753-5207 or (402) 220-2156.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets, the possibility that the Partnership may not consummate any potential future acquisitions, the Partnership's plans for financing any potential future acquisitions, the duration and severity of the COVID-19 pandemic, and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Business Developments
COVID-19
The recent outbreak of the coronavirus disease 2019 ("COVID-19") pandemic continues to negatively impact worldwide economic and commercial activity and financial markets, as well as global demand for petroleum and petrochemical products. The COVID-19 pandemic and resulting governmental and consumer responses have also resulted in significant business and operational disruptions, including business and school closures, supply chain disruptions, travel restrictions, stay-at-home orders and limitations on the availability of workforces. Such impacts have resulted in revenue declines due to lower demand and throughput volumes across certain of our facilities, which may continue to affect our business for the foreseeable future. In response to the COVID-19 pandemic, we are taking steps to mitigate potential adverse impacts on our business and operations by limiting capital expenditures, reducing discretionary activities and third-party services and lowering our quarterly distribution to our minimum quarterly distribution of $0.30 per unit. This distribution reduction, effective with the distribution for the first quarter of 2020 that was paid on June 17, 2020, represents a strategic shift to build our cash flow coverage, de-lever our business and increase our financial resources as we continue to identify potential organic growth projects or strategic acquisitions. In addition, our parent sponsor and largest customer, PBF Energy Inc., has endeavored to take the necessary steps to preserve liquidity and solidify its operations under the adverse market conditions caused by the COVID-19 pandemic.
The full extent to which the COVID-19 pandemic impacts our business and operations, or that of our parent sponsor, is unknown and will depend on the severity, location and duration of the effects and spread of COVID-19, the actions undertaken by national, regional and local governments and health officials to contain the virus or treat its effects, related consumer responses and how quickly and to what extent economic conditions improve and normal business and operating conditions resume.
Factors Affecting Comparability
The following tables present our results of operations, related operational information and reconciliations of net income and net cash provided by operating activities to our EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow (each as defined below) for the three and six months ended June 30, 2020 and 2019.
On October 1, 2018, we acquired from Crown Point International, LLC, its wholly-owned subsidiary, CPI Operations LLC ("CPI"), whose assets include a storage facility with multi-use storage capacity, an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and certain other idled assets (the "East Coast Storage Assets") located on the Delaware River near Paulsboro, New Jersey (the "East Coast Storage Assets Acquisition"). In connection with the acquisition, the purchase and sale agreement included an earn-out provision related to an existing commercial agreement with a third party, based on the future results of certain of the acquired idled assets, which recommenced operations in October 2019.
On April 24, 2019, we entered into a Contribution Agreement with PBF Energy Company LLC ("PBF LLC"), pursuant to which PBF LLC contributed to us all of the issued and outstanding limited liability company interests of TVP Holding Company LLC ("TVP Holding"), which held the remaining 50% equity interest in Torrance Valley Pipeline Company LLC ("TVPC"), for total consideration of $200.0 million (the "TVPC Acquisition"). Subsequent to the closing of the TVPC Acquisition on May 31, 2019, we own 100% of the equity interest in TVPC.
On April 24, 2019, we entered into subscription agreements to sell an aggregate of 6,585,500 common units to certain institutional investors in a registered direct public offering (the "2019 Registered Direct Offering") for gross proceeds of approximately $135.0 million. The 2019 Registered Direct Offering closed on April 29, 2019.
In addition, our results in the current year have been negatively affected by the impact of the COVID-19 pandemic on our business, including lower throughput volumes at our terminals, as the industry reacts to the related economic downturn and volatile commodity markets.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization and change in contingent consideration. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization and change in contingent consideration attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions and earnings attributable to the CPI earn-out (the portion of earnings associated with an earn-out provision related to the purchase of CPI (the "Contingent Consideration")). We define Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is calculated by dividing distributable cash flow by our total distribution declared. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with GAAP, they are supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA provides useful information to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance for current and comparative periods. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance and it provides investors with another perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, income from operations, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all, items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
PBF LOGISTICS LP | ||||||||||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||
Revenue (a): | ||||||||||||||||||||||||
Affiliate | $ | 72,422 | $ | 74,656 | $ | 147,965 | $ | 145,988 | ||||||||||||||||
Third-party | 16,707 | 8,094 | 34,193 | 15,607 | ||||||||||||||||||||
Total revenue | 89,129 | 82,750 | 182,158 | 161,595 | ||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||
Operating and maintenance expenses (a) | 23,154 | 28,553 | 52,655 | 58,469 | ||||||||||||||||||||
General and administrative expenses | 4,299 | 7,580 | 8,686 | 13,590 | ||||||||||||||||||||
Depreciation and amortization | 11,234 | 8,854 | 22,516 | 17,575 | ||||||||||||||||||||
Change in contingent consideration | 324 | — | 530 | — | ||||||||||||||||||||
Total costs and expenses | 39,011 | 44,987 | 84,387 | 89,634 | ||||||||||||||||||||
Income from operations | 50,118 | 37,763 | 97,771 | 71,961 | ||||||||||||||||||||
Other expense: | ||||||||||||||||||||||||
Interest expense, net | (11,536) | (11,216) | (23,385) | (22,129) | ||||||||||||||||||||
Amortization of loan fees and debt premium | (542) | (446) | (981) | (895) | ||||||||||||||||||||
Accretion on discounted liabilities | (580) | (773) | (1,132) | (1,533) | ||||||||||||||||||||
Net income | 37,460 | 25,328 | 72,273 | 47,404 | ||||||||||||||||||||
Less: Net income attributable to noncontrolling interest (g) | — | 3,162 | — | 7,881 | ||||||||||||||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 37,460 | $ | 22,166 | $ | 72,273 | $ | 39,523 | ||||||||||||||||
Net income per limited partner unit (h): | ||||||||||||||||||||||||
Common units - basic | $ | 0.60 | $ | 0.37 | $ | 1.16 | $ | 0.72 | ||||||||||||||||
Common units - diluted | 0.60 | 0.37 | 1.16 | 0.72 | ||||||||||||||||||||
Weighted-average limited partner units outstanding (h): | ||||||||||||||||||||||||
Common units - basic | 62,439,378 | 60,279,287 | 62,364,243 | 54,748,755 | ||||||||||||||||||||
Common units - diluted | 62,446,419 | 60,364,347 | 62,372,554 | 54,776,257 | ||||||||||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||||||||||
PBF LOGISTICS LP | ||||||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||||||
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||||||||||
(Unaudited, amounts in thousands except barrel and per unit data) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||
Transportation and Terminaling Segment | ||||||||||||||||||||
Terminals | ||||||||||||||||||||
Total throughput (barrels per day ("bpd")) (b)(d) | 221,396 | 275,076 | 260,894 | 262,772 | ||||||||||||||||
Lease tank capacity (average lease capacity barrels per month) (d) | 2,392,535 | 2,185,882 | 2,221,789 | 2,300,813 | ||||||||||||||||
Pipelines | ||||||||||||||||||||
Total throughput (bpd) (b)(d) | 156,043 | 161,809 | 159,285 | 154,520 | ||||||||||||||||
Lease tank capacity (average lease capacity barrels per month) (d) | 1,163,287 | 1,500,714 | 1,155,555 | 1,338,769 | ||||||||||||||||
Storage Segment | ||||||||||||||||||||
Storage capacity reserved (average shell capacity barrels per month) (d) | 7,607,643 | 8,053,983 | 7,607,643 | 7,993,338 | ||||||||||||||||
Total throughput (bpd) (b)(d) | 27,054 | — | 26,154 | — | ||||||||||||||||
Cash Flow Information: | ||||||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||||
Operating activities | $ | 61,041 | $ | 17,677 | $ | 79,688 | $ | 55,886 | ||||||||||||
Investing activities | (1,792) | (3,932) | (7,872) | (15,152) | ||||||||||||||||
Financing activities | (153,704) | (10,191) | (85,214) | (40,642) | ||||||||||||||||
Net change in cash and cash equivalents | $ | (94,455) | $ | 3,554 | $ | (13,398) | $ | 92 | ||||||||||||
Other Financial Information: | ||||||||||||||||||||
EBITDA attributable to PBFX (c) | $ | 58,867 | $ | 42,534 | $ | 115,176 | $ | 79,356 | ||||||||||||
Adjusted EBITDA (c) | $ | 60,002 | $ | 48,336 | $ | 117,940 | $ | 91,293 | ||||||||||||
Distributable cash flow (c) | $ | 46,972 | $ | 34,123 | $ | 87,747 | $ | 59,536 | ||||||||||||
Quarterly distribution declared per unit (e) | $ | 0.3000 | $ | 0.5150 | $ | 0.6000 | $ | 1.0250 | ||||||||||||
Distributions (e): | ||||||||||||||||||||
Common units | $ | 18,849 | $ | 32,398 | $ | 37,693 | $ | 64,481 | ||||||||||||
Total distributions | $ | 18,849 | $ | 32,398 | $ | 37,693 | $ | 64,481 | ||||||||||||
Coverage ratio (c) | 2.49x | 1.05x | 2.33x | 0.92x | ||||||||||||||||
Capital expenditures | $ | 1,792 | $ | 3,932 | $ | 7,872 | $ | 15,152 | ||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
PBF LOGISTICS LP | |||||||||
EARNINGS RELEASE TABLES | |||||||||
KEY OPERATING AND FINANCIAL INFORMATION (continued) | |||||||||
(Unaudited, in thousands) | |||||||||
June 30, | December 31, | ||||||||
Balance Sheet Information: | 2020 | 2019 | |||||||
Cash and cash equivalents (f) | $ | 21,568 | $ | 34,966 | |||||
Property, plant and equipment, net | 841,475 | 854,610 | |||||||
Total assets | 950,543 | 973,002 | |||||||
Total debt (f) | 768,085 | 802,104 | |||||||
Total liabilities | 823,297 | 867,919 | |||||||
Partners' equity | 127,246 | 105,083 | |||||||
Total liabilities and equity | 950,543 | 973,002 | |||||||
See Footnotes to Earnings Release Tables | |||||||||
PBF LOGISTICS LP | |||||||||||||||||
EARNINGS RELEASE TABLES | |||||||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER GAAP | |||||||||||||||||
TO EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||||
(Unaudited, in thousands) | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Reconciliation of net income to EBITDA and distributable cash flow (c): | |||||||||||||||||
Net income | $ | 37,460 | $ | 25,328 | $ | 72,273 | $ | 47,404 | |||||||||
Interest expense, net | 11,536 | 11,216 | 23,385 | 22,129 | |||||||||||||
Amortization of loan fees and debt premium | 542 | 446 | 981 | 895 | |||||||||||||
Accretion on discounted liabilities | 580 | 773 | 1,132 | 1,533 | |||||||||||||
Change in contingent consideration | 324 | — | 530 | — | |||||||||||||
Depreciation and amortization | 11,234 | 8,854 | 22,516 | 17,575 | |||||||||||||
EBITDA | 61,676 | 46,617 | 120,817 | 89,536 | |||||||||||||
Less: Noncontrolling interest EBITDA (g) | — | 4,083 | — | 10,180 | |||||||||||||
Less: Earnings attributable to the CPI earn-out | 2,809 | — | 5,641 | — | |||||||||||||
EBITDA attributable to PBFX | 58,867 | 42,534 | 115,176 | 79,356 | |||||||||||||
Non-cash unit-based compensation expense | 945 | 3,387 | 2,247 | 4,351 | |||||||||||||
Cash interest | (11,733) | (11,290) | (23,721) | (22,426) | |||||||||||||
Maintenance capital expenditures attributable to PBFX | (1,107) | (508) | (5,955) | (1,745) | |||||||||||||
Distributable cash flow | $ | 46,972 | $ | 34,123 | $ | 87,747 | $ | 59,536 | |||||||||
Reconciliation of net cash provided by operating activities to EBITDA and distributable cash flow (c): | |||||||||||||||||
Net cash provided by operating activities | $ | 61,041 | $ | 17,677 | $ | 79,688 | $ | 55,886 | |||||||||
Change in operating assets and liabilities | (9,956) | 21,111 | 19,991 | 15,872 | |||||||||||||
Interest expense, net | 11,536 | 11,216 | 23,385 | 22,129 | |||||||||||||
Non-cash unit-based compensation expense | (945) | (3,387) | (2,247) | (4,351) | |||||||||||||
EBITDA | 61,676 | 46,617 | 120,817 | 89,536 | |||||||||||||
Less: Noncontrolling interest EBITDA (g) | — | 4,083 | — | 10,180 | |||||||||||||
Less: Earnings attributable to the CPI earn-out | 2,809 | — | 5,641 | — | |||||||||||||
EBITDA attributable to PBFX | 58,867 | 42,534 | 115,176 | 79,356 | |||||||||||||
Non-cash unit-based compensation expense | 945 | 3,387 | 2,247 | 4,351 | |||||||||||||
Cash interest | (11,733) | (11,290) | (23,721) | (22,426) | |||||||||||||
Maintenance capital expenditures attributable to PBFX | (1,107) | (508) | (5,955) | (1,745) | |||||||||||||
Distributable cash flow | $ | 46,972 | $ | 34,123 | $ | 87,747 | $ | 59,536 | |||||||||
See Footnotes to Earnings Release Tables | |||||||||||||||||
PBF LOGISTICS LP | |||||||||||||||||
EARNINGS RELEASE TABLES | |||||||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER GAAP | |||||||||||||||||
TO EBITDA AND ADJUSTED EBITDA | |||||||||||||||||
(Unaudited, in thousands) | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||
Reconciliation of net income to EBITDA and Adjusted EBITDA (c): | |||||||||||||||||
Net income | $ | 37,460 | $ | 25,328 | $ | 72,273 | $ | 47,404 | |||||||||
Interest expense, net | 11,536 | 11,216 | 23,385 | 22,129 | |||||||||||||
Amortization of loan fees and debt premium | 542 | 446 | 981 | 895 | |||||||||||||
Accretion on discounted liabilities | 580 | 773 | 1,132 | 1,533 | |||||||||||||
Change in contingent consideration | 324 | — | 530 | — | |||||||||||||
Depreciation and amortization | 11,234 | 8,854 | 22,516 | 17,575 | |||||||||||||
EBITDA | 61,676 | 46,617 | 120,817 | 89,536 | |||||||||||||
Less: Noncontrolling interest EBITDA (g) | — | 4,083 | — | 10,180 | |||||||||||||
Less: Earnings attributable to the CPI earn-out | 2,809 | — | 5,641 | — | |||||||||||||
EBITDA attributable to PBFX | 58,867 | 42,534 | 115,176 | 79,356 | |||||||||||||
Acquisition and transaction costs | 15 | 955 | 110 | 3,108 | |||||||||||||
Non-cash unit-based compensation expense | 945 | 3,387 | 2,247 | 4,351 | |||||||||||||
East Coast Terminals environmental remediation costs | 175 | 1,460 | 407 | 3,596 | |||||||||||||
PNGPC tariff true-up adjustment | — | — | — | 882 | |||||||||||||
Adjusted EBITDA | $ | 60,002 | $ | 48,336 | $ | 117,940 | $ | 91,293 | |||||||||
See Footnotes to Earnings Release Tables | |||||||||||||||||
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Three Months Ended June 30, 2020 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 66,709 | $ | 22,420 | $ | — | $ | 89,129 | ||||||||
Depreciation and amortization | 7,023 | 4,211 | — | 11,234 | ||||||||||||
Income (loss) from operations | 42,912 | 11,505 | (4,299) | 50,118 | ||||||||||||
Other expense | — | — | 12,658 | 12,658 | ||||||||||||
Capital expenditures | 1,405 | 387 | — | 1,792 | ||||||||||||
Three Months Ended June 30, 2019 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 69,656 | $ | 13,094 | $ | — | $ | 82,750 | ||||||||
Depreciation and amortization | 6,879 | 1,975 | — | 8,854 | ||||||||||||
Income (loss) from operations | 40,529 | 4,814 | (7,580) | 37,763 | ||||||||||||
Other expense | — | — | 12,435 | 12,435 | ||||||||||||
Capital expenditures | 1,689 | 2,243 | — | 3,932 | ||||||||||||
Six Months Ended June 30, 2020 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 136,952 | $ | 45,206 | $ | — | $ | 182,158 | ||||||||
Depreciation and amortization | 14,095 | 8,421 | — | 22,516 | ||||||||||||
Income (loss) from operations | 84,180 | 22,277 | (8,686) | 97,771 | ||||||||||||
Other expense | — | — | 25,498 | 25,498 | ||||||||||||
Capital expenditures | 5,031 | 2,841 | — | 7,872 | ||||||||||||
Six Months Ended June 30, 2019 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 135,615 | $ | 25,980 | $ | — | $ | 161,595 | ||||||||
Depreciation and amortization | 13,780 | 3,795 | — | 17,575 | ||||||||||||
Income (loss) from operations | 77,080 | 8,471 | (13,590) | 71,961 | ||||||||||||
Other expense | — | — | 24,557 | 24,557 | ||||||||||||
Capital expenditures | 12,233 | 2,919 | — | 15,152 | ||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
SEGMENT FINANCIAL INFORMATION (continued) | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Balance at June 30, 2020 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total assets | $ | 710,817 | $ | 229,595 | $ | 10,131 | $ | 950,543 | ||||||||
Balance at December 31, 2019 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total assets | $ | 726,374 | $ | 228,495 | $ | 18,133 | $ | 973,002 | ||||||||
PBF LOGISTICS LP | |||||||||||
EARNINGS RELEASE TABLES | |||||||||||
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
(Unaudited, in thousands, except per unit data) | |||||||||||
(a) | See discussion of the factors affecting comparability noted on page 4. Our results of operations may not be comparable to the historical results of operations for the reasons described below:
Revenue - On October 1, 2018, we closed the East Coast Storage Assets Acquisition, which was accounted for as a business combination. In October 2019, we recommenced operations of certain of the acquired idled assets, which began revenue generating activities. As such, there was no revenue associated with the acquired idled assets prior to their recommencement.
On May 31, 2019, we closed the TVPC Acquisition in which we acquired the remaining 50% equity interest in TVPC. As such, we now own 100% of the equity interest in TVPC and no longer record a noncontrolling interest related to our ownership of TVPC.
Operating and maintenance expenses - As a result of our acquisitions and the completion of certain organic growth projects, our operating expenses are not comparative to prior periods as it pertains to expenses associated with those assets.
In addition, our results in the current year have been negatively affected by the impact of the COVID-19 pandemic on our business, including lower throughput at our terminals, as the industry reacts to the related economic downturn and volatile commodity markets. | ||||||||||
(b) | Calculated as the sum of the average throughput per day for each asset group for the periods presented. | ||||||||||
(c) | See "Non-GAAP Financial Measures" on page 5 for definitions of EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA, distributable cash flow and coverage ratio. | ||||||||||
(d) | Operating information reflects activity subsequent to our acquisitions, the execution of the commercial agreements with PBF Holding and the completion of certain organic growth projects. | ||||||||||
(e) | On July 31, 2020, we announced a quarterly cash distribution of $0.30 per limited partner unit based on the results of the second quarter of 2020. The distribution is payable on August 26, 2020 to PBFX unitholders of record at the close of business on August 13, 2020. The total distribution amount includes the expected distributions to be made related to second quarter earnings. | ||||||||||
(f) | Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents from total debt. We believe this measurement is 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. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of June 30, 2020 and December 31, 2019 was $746,517 and $767,138, respectively. | ||||||||||
(g) | Prior to the TVPC Acquisition, our wholly-owned subsidiary, PBFX Operating Company LLC ("PBFX Op Co"), held a 50% controlling equity interest in TVPC, with the other 50% equity interest in TVPC owned by TVP Holding, a subsidiary of PBF Holding. PBFX Op Co was the sole managing member of TVPC. We, through our ownership of PBFX Op Co, consolidated the financial results of TVPC and recorded a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated statements of operations included the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated balance sheets included the portion of net assets of TVPC attributable to TVP Holding. . | ||||||||||
(h) | We base our calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during the period and the amount of available cash that has been, or will be, distributed to the limited partners. | ||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-declares-quarterly-distribution-of-0-30-per-unit-and-announces-second-quarter-2020-earnings-results-301103716.html
SOURCE PBF Logistics LP
Article Date
7/31/2020PBF Logistics to Release Second Quarter 2020 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., June 12, 2020 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that it will release its earnings results for the second quarter 2020 on Friday, July 31, 2020. The company will host a conference call and webcast regarding quarterly results and other business matters on Friday, July 31, 2020, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (800) 459-5346 or (203) 518-9544, conference ID: PBFXQ220. The audio replay will be available two hours after the end of the call through August 14, 2020, by dialing (800) 753-5207 or (402) 220-2156.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-release-second-quarter-2020-earnings-results-301075264.html
SOURCE PBF Logistics LP
Article Date
6/12/20205/15/2020 - PBF Energy Reports First Quarter 2020 Results
PBF Energy Reports First Quarter 2020 Results
Source: PR Newswire
PARSIPPANY, N.J., May 15, 2020 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today reported first quarter 2020 loss from operations of $1,366.8 million as compared to income from operations of $364.6 million for the first quarter of 2019. Excluding special items, first quarter 2020 loss from operations was $134.0 million as compared to loss from operations of $141.4 million for the first quarter of 2019. 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 first quarter 2020 net loss of $1,062.5 million and net loss attributable to PBF Energy Inc. of $1,065.9 million or $(8.93) per share. This compares to net income of $241.4 million, and net income attributable to PBF Energy Inc. of $229.2 million or $1.89 per share for the first quarter 2019. Special items included in the first quarter 2020 results, which increased the net loss by a net, after-tax loss of $933.5 million, or $7.74 per share, consisted of a lower-of-cost-or-market ("LCM") inventory adjustment, change in Tax Receivable Agreement liability, debt extinguishment costs related to the redemption of the 7.00% senior notes due 2023 (the "2023 Senior Notes") and change in the fair value of the earn-out provision included in connection with the Martinez acquisition (the "Contingent Consideration"). Adjusted fully-converted net loss for the first quarter 2020, excluding special items, was $143.2 million, or $(1.19) per share on a fully-exchanged, fully-diluted basis, as described below, compared to adjusted fully-converted net loss of $143.0 million or $(1.18) per share, for the first quarter 2019.
Tom Nimbley, PBF Energy's Chairman and CEO, said, "2020 has presented unexpected and unprecedented challenges and PBF has responded by taking several significant actions to ensure we navigate the current market successfully. Our employees have readily adjusted to new working conditions and continue to provide essential services." Mr. Nimbley continued, "We implemented aggressive cost reduction measures and scaled back operations in response to the near-term, generational decline in demand. We took additional steps to increase our capital resources through the sale of hydrogen plants and a successful debt offering, thereby ensuring we have the resources to manage our business through the current and potential future downturns." Mr. Nimbley concluded, "As more regions across the country are beginning the process of returning to work, we are already seeing an increase in product demand. We are at a delicate intersection on this path and PBF will continue to run our operations in a safe, reliable and environmentally responsible manner and we look forward to a sustainable return to work."
Liquidity and Financial Position
As of May 1, 2020, after giving effect to the successful $1 billion notes offering in May, our liquidity was approximately $2 billion based on our estimated $805.0 million of cash, excluding cash held at PBF Logistics LP, and $151.0 million of additional, available borrowing capacity under our asset-backed revolving credit facility. Assuming current commodity prices remain relatively constant, we expect our liquidity to improve as working capital continues to normalize in May and our Revolving Credit Facility borrowing base increases.
On May 7, 2020, PBF announced that its indirect subsidiary, PBF Holding Company LLC successfully priced $1.0 billion of 9.25% senior secured notes due 2025 in a private offering. The offering closed on May 13, 2020.
Strategic Update and Outlook
The recent outbreak of the COVID-19 pandemic and certain developments in the global oil markets are negatively impacting worldwide economic and commercial activity and financial markets, as well as global demand for petroleum and petrochemical products. The COVID-19 pandemic and related governmental responses have also resulted in significant business and operational disruptions, including business closures, supply chain disruptions, travel restrictions, stay-at-home orders and limitations on the availability of workforces and has resulted in significantly lower demand for refined petroleum products.
We are actively responding to the impacts from these matters on our business. In late March and through early April 2020, we started reducing the amount of crude oil processed at our refineries in response to the decreased demand for our products and we temporarily idled various units at certain of our refineries to optimize our production in light of prevailing market conditions.
In March 2020, we announced initial expense reduction efforts that should result in a reduction in our 2020 operating expenses of approximately $125 million. We have subsequently identified additional reductions and currently estimate an aggregate reduction of approximately $140 million in our 2020 operating expenses budget. In addition, we are currently operating our refineries at minimum rates, a throughput reduction of approximately 30% versus our previous expectations. As the market conditions develop and the demand outlook becomes clearer, we will continue to adjust our operations, regionally and in total, in response. We expect near-term throughput to be in the 650,000 to 750,000 barrel per range for our refining system.
In addition to the steps above with respect to our operations, we are taking the following measures, some of which were previously announced in March 2020:
Sale of Hydrogen Plants
On April 17, 2020, we closed on the sale of five hydrogen plants to Air Products and Chemicals, Inc. for gross cash proceeds of $530.0 million. We will enter into off-take arrangements for hydrogen on terms in line with similar arrangements in place throughout our refining system.
Martinez Refinery Acquisition
On February 1, 2020, PBF completed its previously announced acquisition of the 157,000 barrel-per-day Martinez refinery, and related logistics assets, from Equilon Enterprises LLC d/b/a Shell Oil Products US. With the addition of Martinez, PBF's total throughput capacity is now over 1 million barrels per day and our combined Nelson Complexity increased to 12.8.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to Non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income, Adjusted Fully-Converted Net Income excluding special items, Adjusted Fully-Converted Net Income 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 Friday, May 15, 2020, 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: PBFQ120. The audio replay will be available two hours after the end of the call through May 29, 2020, by dialing (800) 839-3607 or (402) 220-2970.
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 recent acquisition of the Martinez refinery, and related logistics assets; the duration and severity of the COVID-19 pandemic and certain developments in the global oil markets and their impact on the global macroeconomic conditions; 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 | ||||||
March 31, | ||||||
2020 | 2019 | |||||
Revenues | $ 5,277.5 | $ 5,216.2 | ||||
Cost and expenses: | ||||||
Cost of products and other | 5,963.3 | 4,209.2 | ||||
Operating expenses (excluding depreciation and amortization expense as reflected | 531.7 | 479.0 | ||||
Depreciation and amortization expense | 116.7 | 103.0 | ||||
Cost of sales | 6,611.7 | 4,791.2 | ||||
General and administrative expenses (excluding depreciation and amortization | 82.5 | 57.6 | ||||
Depreciation and amortization expense | 2.9 | 2.8 | ||||
Change in fair value of contingent consideration | (52.8) | - | ||||
Total cost and expenses | 6,644.3 | 4,851.6 | ||||
Income (loss) from operations | (1,366.8) | 364.6 | ||||
Other income (expense): | ||||||
Interest expense, net | (49.2) | (39.5) | ||||
Change in Tax Receivable Agreement liability | (11.6) | - | ||||
Change in fair value of catalyst obligations | 11.7 | (3.1) | ||||
Debt extinguishment costs | (22.2) | - | ||||
Other non-service components of net periodic benefit cost | 1.0 | (0.1) | ||||
Income (loss) before income taxes | (1,437.1) | 321.9 | ||||
Income tax (benefit) expense | (374.6) | 80.5 | ||||
Net income (loss) | (1,062.5) | 241.4 | ||||
Less: net income attributable to noncontrolling interests | 3.4 | 12.2 | ||||
Net income (loss) attributable to PBF Energy Inc. stockholders | $ (1,065.9) | $ 229.2 | ||||
Net income (loss) available to Class A common stock per share: | ||||||
Basic | $ (8.93) | $ 1.91 | ||||
Diluted | $ (8.93) | $ 1.89 | ||||
Weighted-average shares outstanding-basic | 119,380,210 | 119,880,915 | ||||
Weighted-average shares outstanding-diluted | 119,380,210 | 122,175,744 | ||||
Dividends per common share | $ - | $ 0.30 | ||||
Adjusted fully-converted net income (loss) and adjusted fully-converted net | ||||||
Adjusted fully-converted net income (loss) | $ (1,076.7) | $ 231.4 | ||||
Adjusted fully-converted net income (loss) per fully exchanged, fully diluted share | $ (8.93) | $ 1.89 | ||||
Adjusted fully-converted shares outstanding - diluted (Note 6) | 120,589,008 | 122,175,744 | ||||
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- | Three Months Ended | |||||||||||||
March 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Net income (loss) attributable to PBF Energy Inc. stockholders | $ | (1,065.9) | $ | 229.2 | ||||||||||
Less: | Income allocated to participating securities | 0.1 | 0.1 | |||||||||||
Income (loss) available to PBF Energy Inc. stockholders - basic | (1,066.0) | 229.1 | ||||||||||||
Add: | Net income (loss) attributable to noncontrolling interest (Note 2) | (14.6) | 3.1 | |||||||||||
Less: | Income tax benefit (expense) (Note 3) | 3.9 | (0.8) | |||||||||||
Adjusted fully-converted net income (loss) | $ | (1,076.7) | $ | 231.4 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: | Non-cash LCM inventory adjustment | 1,285.6 | (506.0) | |||||||||||
Add: | Change in Tax Receivable Agreement liability | 11.6 | — | |||||||||||
Add: | Debt extinguishment costs | 22.2 | — | |||||||||||
Add: | Change in fair value of contingent consideration | (52.8) | — | |||||||||||
Less: | Recomputed income taxes on special items (Note 3) | (333.1) | 131.6 | |||||||||||
Adjusted fully-converted net income (loss) excluding special items | $ | (143.2) | $ | (143.0) | ||||||||||
Weighted-average shares outstanding of PBF Energy Inc. | 119,380,210 | 119,880,915 | ||||||||||||
Conversion of PBF LLC Series A Units (Note 5) | 1,208,798 | 1,206,325 | ||||||||||||
Common stock equivalents (Note 6) | — | 1,088,504 | ||||||||||||
Fully-converted shares outstanding - diluted | 120,589,008 | 122,175,744 | ||||||||||||
Adjusted fully-converted net income (loss) per fully exchanged, fully diluted shares | $ | (8.93) | $ | 1.89 | ||||||||||
Adjusted fully-converted net income (loss) excluding special items per fully | $ | (1.19) | $ | (1.18) | ||||||||||
Three Months Ended | ||||||||||||||
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO INCOME | March 31, | |||||||||||||
2020 | 2019 | |||||||||||||
Income (loss) from operations | $ | (1,366.8) | $ | 364.6 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: | Non-cash LCM inventory adjustment | 1,285.6 | (506.0) | |||||||||||
Add: | Change in the fair value of contingent consideration | (52.8) | — | |||||||||||
Income (loss) from operations excluding special items | $ | (134.0) | $ | (141.4) | ||||||||||
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 | ||||||||||||||
March 31, | ||||||||||||||
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND EBITDA | 2020 | 2019 | ||||||||||||
Net income (loss) | $ | (1,062.5) | $ | 241.4 | ||||||||||
Add: Depreciation and amortization expense | 119.6 | 105.8 | ||||||||||||
Add: Interest expense, net | 49.2 | 39.5 | ||||||||||||
Add: Income tax (benefit) expense | (374.6) | 80.5 | ||||||||||||
EBITDA | $ | (1,268.3) | $ | 467.2 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | 1,285.6 | (506.0) | ||||||||||||
Add: Change in Tax Receivable Agreement liability | 11.6 | — | ||||||||||||
Add: Debt extinguishment costs | 22.2 | — | ||||||||||||
Add: Change in the fair value of contingent consideration | (52.8) | — | ||||||||||||
EBITDA excluding special items | $ | (1.7) | $ | (38.8) | ||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA | 2020 | 2019 | ||||||||||||
EBITDA | $ | (1,268.3) | $ | 467.2 | ||||||||||
Add: Stock-based compensation | 9.6 | 8.0 | ||||||||||||
Add: Net non-cash change in fair value of catalyst obligations | (11.7) | 3.1 | ||||||||||||
Add: Net non-cash change in fair value of contingent consideration (Note 4) | (52.8) | — | ||||||||||||
Add: Non-cash LCM inventory adjustment (Note 4) | 1,285.6 | (506.0) | ||||||||||||
Add: Change in Tax Receivable Agreement liability (Note 4) | 11.6 | — | ||||||||||||
Add: Debt extinguishment costs (Note 4) | 22.2 | — | ||||||||||||
Adjusted EBITDA | $ | (3.8) | $ | (27.7) | ||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||
EARNINGS RELEASE TABLES | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||||||||
(Unaudited, in millions) | |||||||||||
March 31, | December 31, | ||||||||||
2020 | 2019 | ||||||||||
Balance Sheet Data: | |||||||||||
Cash and cash equivalents | $ | 722.1 | $ | 814.9 | |||||||
Inventories | 986.5 | 2,122.2 | |||||||||
Total assets | 9,134.1 | 9,132.4 | |||||||||
Total debt | 3,546.1 | 2,064.9 | |||||||||
Total equity | 2,479.5 | 3,585.5 | |||||||||
Total equity excluding special items (Note 4, 13) | $ | 3,503.3 | $ | 3,675.8 | |||||||
Total debt to capitalization ratio (Note 13) | 59 | % | 37 | % | |||||||
Total debt to capitalization ratio, excluding special items (Note 13) | 50 | % | 36 | % | |||||||
Net debt to capitalization ratio (Note 13) | 53 | % | 26 | % | |||||||
Net debt to capitalization ratio, excluding special items (Note 13) | 45 | % | 25 | % | |||||||
SUMMARIZED STATEMENT OF CASH FLOW DATA | |||||||||||
(Unaudited, in millions) | |||||||||||
Three Months Ended March 31, | |||||||||||
2020 | 2019 | ||||||||||
Cash flows used in operating activities | $ | (235.8) | $ | (149.9) | |||||||
Cash flows used in investing activities | (1,315.2) | (260.6) | |||||||||
Cash flows provided by financing activities | 1,458.2 | 231.5 | |||||||||
Net decrease in cash and cash equivalents | (92.8) | (179.0) | |||||||||
Cash and cash equivalents, beginning of period | 814.9 | 597.3 | |||||||||
Cash and cash equivalents, end of period | $ | 722.1 | $ | 418.3 | |||||||
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 March 31, 2020 | |||||||||||||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||||||||||||
Revenues | $ | 5,260.0 | $ | 93.0 | $ | — | $ | (75.5) | $ | 5,277.5 | |||||||||
Depreciation and amortization expense | 105.4 | 11.3 | 2.9 | — | 119.6 | ||||||||||||||
Income (loss) from operations | (1,386.4) | 47.7 | (28.1) | — | (1,366.8) | ||||||||||||||
Interest expense, net | 0.8 | 12.8 | 35.6 | — | 49.2 | ||||||||||||||
Capital expenditures (Note 14) | 1,304.1 | 6.1 | 5.0 | — | 1,315.2 | ||||||||||||||
Three Months Ended March 31, 2019 | |||||||||||||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||||||||||||
Revenues | $ | 5,208.7 | $ | 78.8 | $ | — | $ | (71.3) | $ | 5,216.2 | |||||||||
Depreciation and amortization expense | 94.3 | 8.7 | 2.8 | — | 105.8 | ||||||||||||||
Income (loss) from operations (Note 15, | 389.5 | 34.2 | (54.4) | (4.7) | 364.6 | ||||||||||||||
Interest expense, net | 0.5 | 12.1 | 26.9 | — | 39.5 | ||||||||||||||
Capital expenditures | 247.1 | 11.2 | 2.3 | — | 260.6 | ||||||||||||||
Balance at March 31, 2020 | |||||||||||||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||||||||||||
Total Assets | $ | 7,746.3 | $ | 1,088.7 | $ | 386.2 | $ | (87.1) | $ | 9,134.1 | |||||||||
Balance at December 31, 2019 | |||||||||||||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||||||||||||
Total Assets | $ | 8,154.8 | $ | 973.0 | $ | 52.7 | $ | (48.1) | $ | 9,132.4 | |||||||||
See Footnotes to Earnings Release Tables | |||||||||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
MARKET INDICATORS AND KEY OPERATING INFORMATION | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
Market Indicators (dollars per barrel) (Note 9) | 2020 | 2019 | ||||||||||
Dated Brent crude oil | $ | 49.70 | $ | 63.26 | ||||||||
West Texas Intermediate (WTI) crude oil | $ | 45.56 | $ | 54.87 | ||||||||
Light Louisiana Sweet (LLS) crude oil | $ | 47.81 | $ | 62.38 | ||||||||
Alaska North Slope (ANS) crude oil | $ | 51.07 | $ | 64.39 | ||||||||
Crack Spreads: | ||||||||||||
Dated Brent (NYH) 2-1-1 | $ | 9.96 | $ | 9.85 | ||||||||
WTI (Chicago) 4-3-1 | $ | 7.37 | $ | 12.33 | ||||||||
LLS (Gulf Coast) 2-1-1 | $ | 10.42 | $ | 9.89 | ||||||||
ANS (West Coast-LA) 4-3-1 | $ | 13.36 | $ | 13.54 | ||||||||
ANS (West Coast-SF) 3-2-1 | $ | 9.65 | $ | 11.14 | ||||||||
Crude Oil Differentials: | ||||||||||||
Dated Brent (foreign) less WTI | $ | 4.14 | $ | 8.39 | ||||||||
Dated Brent less Maya (heavy, sour) | $ | 8.87 | $ | 4.50 | ||||||||
Dated Brent less WTS (sour) | $ | 4.70 | $ | 9.55 | ||||||||
Dated Brent less ASCI (sour) | $ | 4.29 | $ | 2.35 | ||||||||
WTI less WCS (heavy, sour) | $ | 16.85 | $ | 9.96 | ||||||||
WTI less Bakken (light, sweet) | $ | 3.46 | $ | (0.25) | ||||||||
WTI less Syncrude (light, sweet) | $ | 1.80 | $ | (0.04) | ||||||||
WTI less LLS (light, sweet) | $ | (2.25) | $ | (7.51) | ||||||||
WTI less ANS (light, sweet) | $ | (5.51) | $ | (9.52) | ||||||||
Natural gas (dollars per MMBTU) | $ | 1.87 | $ | 2.87 | ||||||||
Key Operating Information | ||||||||||||
Production (barrels per day ("bpd") in thousands) | 867.0 | 737.7 | ||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 852.9 | 743.1 | ||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 77.6 | 66.9 | ||||||||||
Consolidated gross margin per barrel of throughput | $ | (17.19) | $ | 6.35 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 6.60 | $ | 6.38 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 6.54 | $ | 6.78 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12) | ||||||||||||
Heavy | 44 | % | 32 | % | ||||||||
Medium | 23 | % | 32 | % | ||||||||
Light | 19 | % | 24 | % | ||||||||
Other feedstocks and blends | 14 | % | 12 | % | ||||||||
Total throughput | 100 | % | 100 | % | ||||||||
Yield (% of total throughput) | ||||||||||||
Gasoline and gasoline blendstocks | 51 | % | 46 | % | ||||||||
Distillates and distillate blendstocks | 32 | % | 32 | % | ||||||||
Lubes | 1 | % | 1 | % | ||||||||
Chemicals | 1 | % | 2 | % | ||||||||
Other | 17 | % | 18 | % | ||||||||
Total yield | 102 | % | 99 | % | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2020 | 2019 | |||||||||||
Supplemental Operating Information - East Coast (Delaware City and Paulsboro) | ||||||||||||
Production (bpd in thousands) | 327.8 | 299.7 | ||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 329.3 | 305.0 | ||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 30.0 | 27.5 | ||||||||||
Gross margin per barrel of throughput | $ | (13.61) | $ | 1.16 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 6.92 | $ | 3.35 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 5.71 | $ | 6.37 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 27 | % | 25 | % | ||||||||
Medium | 27 | % | 52 | % | ||||||||
Light | 28 | % | 4 | % | ||||||||
Other feedstocks and blends | 18 | % | 19 | % | ||||||||
Total throughput | 100 | % | 100 | % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 46 | % | 43 | % | ||||||||
Distillates and distillate blendstocks | 36 | % | 31 | % | ||||||||
Lubes | 2 | % | 3 | % | ||||||||
Chemicals | 1 | % | 1 | % | ||||||||
Other | 15 | % | 20 | % | ||||||||
Total yield | 100 | % | 98 | % | ||||||||
Supplemental Operating Information - Mid-Continent (Toledo) | ||||||||||||
Production (bpd in thousands) | 91.0 | 150.2 | ||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 90.1 | 148.0 | ||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 8.2 | 13.3 | ||||||||||
Gross margin per barrel of throughput | $ | (44.23) | $ | 15.22 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 1.16 | $ | 12.28 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 8.38 | $ | 5.55 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Medium | 39 | % | 29 | % | ||||||||
Light | 59 | % | 70 | % | ||||||||
Other feedstocks and blends | 2 | % | 1 | % | ||||||||
Total throughput | 100 | % | 100 | % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 45 | % | 53 | % | ||||||||
Distillates and distillate blendstocks | 30 | % | 36 | % | ||||||||
Chemicals | 2 | % | 6 | % | ||||||||
Other | 24 | % | 6 | % | ||||||||
Total yield | 101 | % | 101 | % | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2020 | 2019 | |||||||||||
Supplemental Operating Information - Gulf Coast (Chalmette) | ||||||||||||
Production (bpd in thousands) | 179.4 | 165.0 | ||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 174.5 | 164.6 | ||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 15.9 | 14.8 | ||||||||||
Gross margin per barrel of throughput | $ | (9.93) | $ | 4.48 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 8.07 | $ | 3.33 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 4.67 | $ | 5.89 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 41 | % | 34 | % | ||||||||
Medium | 30 | % | 16 | % | ||||||||
Light | 13 | % | 37 | % | ||||||||
Other feedstocks and blends | 16 | % | 13 | % | ||||||||
Total throughput | 100 | % | 100 | % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 45 | % | 40 | % | ||||||||
Distillates and distillate blendstocks | 33 | % | 35 | % | ||||||||
Chemicals | 2 | % | 2 | % | ||||||||
Other | 23 | % | 23 | % | ||||||||
Total yield | 103 | % | 100 | % | ||||||||
Supplemental Operating Information - West Coast (Torrance and Martinez) | ||||||||||||
Production (bpd in thousands) | 268.8 | 122.8 | ||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 259.0 | 125.5 | ||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 23.5 | 11.3 | ||||||||||
Gross margin per barrel of throughput | $ | (19.43) | $ | 7.42 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 7.09 | $ | 10.76 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 8.21 | $ | 10.40 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 81 | % | 82 | % | ||||||||
Medium | 7 | % | 8 | % | ||||||||
Other feedstocks and blends | 12 | % | 10 | % | ||||||||
Total throughput | 100 | % | 100 | % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 62 | % | 51 | % | ||||||||
Distillates and distillate blendstocks | 27 | % | 24 | % | ||||||||
Other | 15 | % | 23 | % | ||||||||
Total yield | 104 | % | 98 | % | ||||||||
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 | ||||||||||||||||||||
March 31, 2020 | March 31, 2019 | ||||||||||||||||||||
RECONCILIATION OF CONSOLIDATED GROSS | $ | per barrel | $ | per barrel | |||||||||||||||||
Calculation of consolidated gross margin: | |||||||||||||||||||||
Revenues | $ | 5,277.5 | $ | 68.00 | $ | 5,216.2 | $ | 77.99 | |||||||||||||
Less: Cost of sales | 6,611.7 | 85.19 | 4,791.2 | 71.64 | |||||||||||||||||
Consolidated gross margin | $ | (1,334.2) | $ | (17.19) | $ | 425.0 | $ | 6.35 | |||||||||||||
Reconciliation of consolidated gross margin to gross | |||||||||||||||||||||
Consolidated gross margin | $ | (1,334.2) | $ | (17.19) | $ | 425.0 | $ | 6.35 | |||||||||||||
Add: PBFX operating expense | 29.6 | 0.38 | 29.9 | 0.45 | |||||||||||||||||
Add: PBFX depreciation expense | 11.3 | 0.15 | 8.7 | 0.13 | |||||||||||||||||
Less: Revenues of PBFX | (93.0) | (1.20) | (78.8) | (1.18) | |||||||||||||||||
Add: Refinery operating expense | 507.5 | 6.54 | 453.4 | 6.78 | |||||||||||||||||
Add: Refinery depreciation expense | 105.4 | 1.36 | 94.3 | 1.41 | |||||||||||||||||
Gross refining margin | $ | (773.4) | $ | (9.96) | $ | 932.5 | $ | 13.94 | |||||||||||||
Special Items (Note 4): | |||||||||||||||||||||
Add: Non-cash LCM inventory adjustment | 1,285.6 | 16.56 | (506.0) | (7.56) | |||||||||||||||||
Gross refining margin excluding special items | $ | 512.2 | $ | 6.60 | $ | 426.5 | $ | 6.38 | |||||||||||||
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. | ||||||||||||||||||
(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 PBF Energy's estimated annualized statutory corporate tax rate of approximately 26.3% and 26.0% for the 2020 and 2019 periods, respectively, applied to net income (loss) attributable to noncontrolling interest for all periods presented. The adjustment assumes the full exchange of existing PBF LLC Series A Units as described in footnote 2. | ||||||||||||||||||
(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 for the periods presented relate to LCM inventory adjustments, changes in the Tax Receivable Agreement liability, debt extinguishment costs and change in the fair value of contingent consideration, all as discussed further below. Additionally, the cumulative effects of all current and 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. | ||||||||||||||||||
The following table includes the LCM inventory reserve as of each date presented (in millions): | ||||||||||||||||||
2020 | 2019 | |||||||||||||||||
January 1, | $ | 401.6 | $ | 651.8 | ||||||||||||||
March 31, | 1,687.2 | 145.8 | ||||||||||||||||
The following table includes the corresponding impact of changes in the LCM inventory reserve on income (loss) from operations and net income (loss) for the periods presented (in millions): | ||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||
2020 | 2019 | |||||||||||||||||
Net LCM inventory adjustment (charge) benefit in income (loss) from | $ | (1,285.6) | $ | 506.0 | ||||||||||||||
Net LCM inventory adjustment (charge) benefit in net income (loss) | (947.5) | 374.4 | ||||||||||||||||
Debt Extinguishment Costs - During the three months ended March 31, 2020, we recorded pre-tax debt extinguishment costs of $22.2 million related to the redemption of the 2023 Senior Notes. These nonrecurring charges increased net loss by $16.4 million for the three months ended March 31, 2020. There were no such costs in the three months ended March 31, 2019. | ||||||||||||||||||
Change in Tax Receivable Agreement liability - During the three months ended March 31, 2020 we recorded a change in the Tax Receivable Agreement liability that increased loss before income taxes and net loss by $11.6 million and $8.5 million, respectively. The changes in the Tax Receivable Agreement liability reflect charges or benefits attributable to changes in our obligation under the Tax Receivable Agreement due to factors out of our control, such as changes in tax rates. There was no change in the Tax Receivable Agreement liability during the three months ended March 31, 2019. | ||||||||||||||||||
Change in fair value of Contingent Consideration - During the three months ended March 31, 2020 we recorded a change in the fair value of the contingent consideration primarily related to the change in our estimated earn-out liability associated with the Martinez Acquisition, which offset loss before income taxes and net loss by $52.8 million and $38.9 million, respectively. | ||||||||||||||||||
(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 months ended March 31, 2020 and 2019, respectively. Common stock equivalents exclude the effects of performance share units and options and warrants to purchase 11,388,905 and 5,111,617 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three months ended March 31, 2020 and 2019, 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 obligations, 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 March 31, 2020, the Refining segment includes the operations of our oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio, Chalmette, Louisiana, Torrance, California and Martinez, 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. | ||||||||||||||||||
(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. | ||||||||||
March 31, | December 31, | |||||||||
2020 | 2019 | |||||||||
(in millions) | ||||||||||
Total debt | $ | 3,546.1 | $ | 2,064.9 | ||||||
Total equity | 2,479.5 | 3,585.5 | ||||||||
Total capitalization | $ | 6,025.6 | $ | 5,650.4 | ||||||
Total debt | $ | 3,546.1 | $ | 2,064.9 | ||||||
Total equity excluding special items | 3,503.3 | 3,675.8 | ||||||||
Total capitalization excluding special items | $ | 7,049.4 | $ | 5,740.7 | ||||||
Total equity | $ | 2,479.5 | $ | 3,585.5 | ||||||
Special Items (Note 4) | ||||||||||
Add: Non-cash LCM inventory adjustment | 1,687.2 | 401.6 | ||||||||
Add: Gain on Torrance land sale | (76.9) | (76.9) | ||||||||
Add: Change in Tax Receivable Agreement liability | (278.8) | (290.4) | ||||||||
Add: Debt extinguishment costs | 47.7 | 25.5 | ||||||||
Add: Early railcar return expense | 52.3 | 52.3 | ||||||||
Add: Change in fair value of contingent consideration | (52.8) | — | ||||||||
Less: Recomputed income taxes on special items | (375.1) | (42.0) | ||||||||
Add: Net tax expense on TCJA related special items | 20.2 | 20.2 | ||||||||
Net impact of special items to equity | 1,023.8 | 90.3 | ||||||||
Total equity excluding special items | $ | 3,503.3 | $ | 3,675.8 | ||||||
Total debt | $ | 3,546.1 | $ | 2,064.9 | ||||||
Less: Cash and cash equivalents | 722.1 | 814.9 | ||||||||
Net Debt | $ | 2,824.0 | $ | 1,250.0 | ||||||
Total debt to capitalization ratio | 59 | % | 37 | % | ||||||
Total debt to capitalization ratio, excluding special items | 50 | % | 36 | % | ||||||
Net debt to capitalization ratio | 53 | % | 26 | % | ||||||
Net debt to capitalization ratio, excluding special items | 45 | % | 25 | % | ||||||
(14) The Refining segment includes capital expenditures of $1,176.2 million for the acquisition of the Martinez refinery in the first quarter of 2020. | ||||||||||
(15) On April 24, 2019, PBFX entered into a contribution agreement with PBF LLC (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") for total consideration of $200.0 million (the "TVPC Acquisition"). Prior to the TVPC Acquisition, TVP Holding owned a 50% equity interest in Torrance Valley Pipeline Company LLC ("TVPC"). Subsequent to the closing of the TVPC Acquisition on May 31, 2019, PBFX owns 100% of the equity interest in TVPC. | ||||||||||
(16) 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. | ||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-energy-reports-first-quarter-2020-results-301059900.html
SOURCE PBF Energy Inc.
Article Date
5/15/2020PBF Logistics Declares Quarterly Distribution of $0.30 per Unit and Announces First Quarter 2020 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., May 15, 2020 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX, the "Partnership") today announced first quarter 2020 net income attributable to the limited partners of $34.8 million, or $0.56 per common unit. During the quarter, the Partnership generated cash from operations of $18.6 million, EBITDA attributable to PBFX of $56.3 million, Adjusted EBITDA of $57.9 million and distributable cash flow of $40.8 million. Included in reported results for the first quarter are $1.6 million, or $0.03 per common unit, of expenses related to pending and non-consummated acquisitions, non-cash unit-based compensation and environmental remediation costs associated with the East Coast Terminals.
"PBF Logistics operated well during the first quarter and our revenues were supported by our minimum volume commitments with PBF Energy. As we navigate the new market dynamics created by the COVID-19 pandemic, we expect our revenues to remain well-supported by our long-term contracts. However, we have seen a decline in our rack volumes as a result of demand destruction but this has been partially offset by increased revenue and opportunities in our storage segment," said PBF Logistics GP LLC Executive Vice President Matt Lucey. "Additionally, we announced a distribution of $0.30 per unit today and we believe this is prudent given the uncertain outlook. Our near-term strategy is to build coverage, de-lever the business and increase financial resources to pursue identified organic projects and future external growth opportunities that may arise out of the current market turmoil."
As of March 31, 2020, the Partnership had approximately $228.3 million of liquidity, including approximately $116.0 million in cash and cash equivalents, and access to approximately $112.2 million under its revolving credit facility.
PBF Logistics Declares Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.30 per common unit. The distribution is payable on June 17, 2020, to unitholders of record at the close of business on May 27, 2020.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
The Partnership defines EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization and change in contingent consideration. The Partnership defines EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization and change in contingent consideration attributable to PBFX, which excludes results of acquisitions from affiliates of PBF Energy prior to the effective dates of such transactions and earnings attributable to the CPI earn-out (the portion of earnings associated with an earn-out provision related to the purchase of CPI Operations LLC ("CPI")(the "Contingent Consideration")). The Partnership defines Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. The Partnership defines distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").
For additional information on the Partnership's non-GAAP financial measures, including reconciliations to their most directly comparable financial measures calculated and presented in accordance with GAAP, refer to the supplemental information provided in "Results of Operations" and the Earnings Release Tables included herein.
Conference Call Information
The Partnership will host a conference call and webcast regarding first quarter results and other business matters on Friday, May 15, 2020, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (877) 876-9176 or (785) 424-1670, conference ID: PBFXQ120. The audio replay will be available two hours after the end of the call through May 29, 2020, by dialing (800) 934-7884 or (402) 220-6987.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets, the possibility that the Partnership may not consummate any potential future acquisitions, the Partnership's plans for financing any potential future acquisitions, the duration and severity of the COVID-19 pandemic, and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Business Developments
COVID-19
The recent outbreak of the coronavirus disease 2019 ("COVID-19") pandemic is negatively impacting worldwide economic and commercial activity and financial markets, as well as global demand for petroleum and petrochemical products. The COVID-19 pandemic and resulting governmental responses have also resulted in significant business and operational disruptions, including business closures, supply chain disruptions, travel restrictions, stay-at-home orders and limitations on the availability of workforces. While the COVID-19 pandemic is expected to adversely affect our business and operations, the full impact is unknown and rapidly evolving and the ultimate effect on our business is uncertain at this time. However, in light of the COVID-19 pandemic, we are taking necessary steps to mitigate potential adverse impacts on our business and operations as this pandemic continues, including reducing capital expenditures, decreasing operating expenses by reducing discretionary activities and third-party services and reducing our quarterly distribution. Due to the uncertainty of the full impact of the COVID-19 pandemic will have on our business, we have decided to reduce our quarterly distribution to our minimum quarterly distribution of $0.30 per unit, which represents a short term shift in our distribution strategy to build our cash flow coverage, de-lever our business and increase our financial resources as we continue to identify potential organic growth projects or strategic acquisitions. In addition, our parent sponsor and largest customer, PBF Energy, has taken similar steps to preserve liquidity and solidify its operations under the adverse market conditions caused by the COVID-19 pandemic.
The full extent to which the COVID-19 pandemic impacts our business and operations, or that of our parent sponsor, will depend on the severity, location and duration of the effects and spread of COVID-19, the actions undertaken by national, regional and local governments and health officials to contain the virus or treat its effects, related consumer responses and how quickly and to what extent economic conditions improve and normal business and operating conditions resume.
Factors Affecting Comparability
The following tables present our results of operations, related operational information and reconciliations of net income and net cash provided by operating activities to our EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow (each as defined below) for the three months ended March 31, 2020 and 2019.
On October 1, 2018, we acquired from Crown Point International, LLC, its wholly-owned subsidiary, CPI Operations LLC ("CPI"), whose assets include a storage facility with multi-use storage capacity, an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and certain other idled assets (the "East Coast Storage Assets") located on the Delaware River near Paulsboro, New Jersey (the "East Coast Storage Assets Acquisition"). In connection with the acquisition, the purchase and sale agreement included an earn-out provision related to an existing commercial agreement with a third party, based on the future results of certain of the acquired idled assets, which recommenced operations in October 2019.
On April 24, 2019, we entered into a Contribution Agreement with PBF Energy Company LLC ("PBF LLC"), pursuant to which PBF LLC contributed to us all of the issued and outstanding limited liability company interests of TVP Holding Company LLC ("TVP Holding"), which held the remaining 50% equity interest in Torrance Valley Pipeline Company LLC ("TVPC"), for total consideration of $200.0 million (the "TVPC Acquisition"). Subsequent to the closing of the TVPC Acquisition on May 31, 2019, we own 100% of the equity interest in TVPC.
On April 24, 2019, we entered into subscription agreements to sell an aggregate of 6,585,500 common units to certain institutional investors in a registered direct public offering (the "2019 Registered Direct Offering") for gross proceeds of approximately $135.0 million. The 2019 Registered Direct Offering closed on April 29, 2019.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization and change in contingent consideration. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization and change in contingent consideration attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions and earnings attributable to the CPI earn-out (the portion of earnings associated with an earn-out provision related to the purchase of CPI (the "Contingent Consideration")). We define Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is calculated by dividing distributable cash flow by our total distribution declared. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with GAAP, they are supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA provides useful information to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance for current and comparative periods. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance and it provides investors with another perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, income from operations, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all, items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
PBF LOGISTICS LP | ||||||||
EARNINGS RELEASE TABLES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited, in thousands, except unit and per unit data) | ||||||||
Three Months Ended | ||||||||
2020 | 2019 | |||||||
Revenue (a): | ||||||||
Affiliate | $ | 75,543 | $ | 71,332 | ||||
Third-party | 17,486 | 7,513 | ||||||
Total revenue | 93,029 | 78,845 | ||||||
Costs and expenses: | ||||||||
Operating and maintenance expenses (a) | 29,501 | 29,916 | ||||||
General and administrative expenses | 4,387 | 6,010 | ||||||
Depreciation and amortization | 11,282 | 8,721 | ||||||
Change in contingent consideration | 206 | — | ||||||
Total costs and expenses | 45,376 | 44,647 | ||||||
Income from operations | 47,653 | 34,198 | ||||||
Other expense: | ||||||||
Interest expense, net | (11,849) | (10,913) | ||||||
Amortization of loan fees and debt premium | (439) | (449) | ||||||
Accretion on discounted liabilities | (552) | (760) | ||||||
Net income | 34,813 | 22,076 | ||||||
Less: Net income attributable to noncontrolling interest (g) | — | 4,719 | ||||||
Net income attributable to PBF Logistics LP unitholders | $ | 34,813 | $ | 17,357 | ||||
Net income per limited partner unit (h): | ||||||||
Common units - basic | $ | 0.56 | $ | 0.35 | ||||
Common units - diluted | 0.56 | 0.35 | ||||||
Weighted-average limited partner units outstanding (h): | ||||||||
Common units - basic | 62,370,927 | 49,151,927 | ||||||
Common units - diluted | 62,473,094 | 49,318,133 | ||||||
See Footnotes to Earnings Release Tables | ||||||||
PBF LOGISTICS LP | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||
(Unaudited, amounts in thousands except barrel and per unit data) | ||||||||||||
Three Months Ended | ||||||||||||
2020 | 2019 | |||||||||||
Transportation and Terminaling Segment | ||||||||||||
Terminals | ||||||||||||
Total throughput (barrels per day ("bpd")) (b)(d) | 300,392 | 249,781 | ||||||||||
Lease tank capacity (average lease capacity barrels per month) (d) | 2,051,043 | 2,415,744 | ||||||||||
Pipelines | ||||||||||||
Total throughput (bpd) (b)(d) | 162,527 | 147,149 | ||||||||||
Lease tank capacity (average lease capacity barrels per month) (d) | 1,147,823 | 1,175,024 | ||||||||||
Storage Segment | ||||||||||||
Storage capacity reserved (average shell capacity barrels per month) (d) | 7,607,643 | 7,932,693 | ||||||||||
Total throughput (bpd) (b)(d) | 25,254 | — | ||||||||||
Cash Flow Information: | ||||||||||||
Net cash provided by (used in): | ||||||||||||
Operating activities | $ | 18,647 | $ | 38,209 | ||||||||
Investing activities | (6,080) | (11,220) | ||||||||||
Financing activities | 68,490 | (30,451) | ||||||||||
Net change in cash and cash equivalents | $ | 81,057 | $ | (3,462) | ||||||||
Other Financial Information: | ||||||||||||
EBITDA attributable to PBFX (c) | $ | 56,309 | $ | 36,822 | ||||||||
Adjusted EBITDA (c) | $ | 57,938 | $ | 42,957 | ||||||||
Distributable cash flow (c) | $ | 40,775 | $ | 25,413 | ||||||||
Quarterly distribution declared per unit (e) | $ | 0.30 | $ | 0.51 | ||||||||
Distributions (e): | ||||||||||||
Common units | $ | 18,844 | $ | 31,952 | ||||||||
Total distributions | $ | 18,844 | $ | 31,952 | ||||||||
Coverage ratio (c) | 2.16x | 0.80x | ||||||||||
Capital expenditures | $ | 6,080 | $ | 11,220 | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||
PBF LOGISTICS LP | |||||||||
EARNINGS RELEASE TABLES | |||||||||
KEY OPERATING AND FINANCIAL INFORMATION (continued) | |||||||||
(Unaudited, in thousands) | |||||||||
March 31, | December 31, | ||||||||
Balance Sheet Information: | 2020 | 2019 | |||||||
Cash and cash equivalents (f) | $ | 116,023 | $ | 34,966 | |||||
Property, plant and equipment, net | 850,015 | 854,610 | |||||||
Total assets | 1,088,743 | 973,002 | |||||||
Total debt (f) | 902,543 | 802,104 | |||||||
Total liabilities | 980,254 | 867,919 | |||||||
Partners' equity | 108,489 | 105,083 | |||||||
Total liabilities and equity | 1,088,743 | 973,002 | |||||||
See Footnotes to Earnings Release Tables | |||||||||
PBF LOGISTICS LP | |||||||||
EARNINGS RELEASE TABLES | |||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER GAAP | |||||||||
TO EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||
(Unaudited, in thousands) | |||||||||
Three Months Ended | |||||||||
2020 | 2019 | ||||||||
Reconciliation of net income to EBITDA and distributable cash flow (c): | |||||||||
Net income | $ | 34,813 | $ | 22,076 | |||||
Interest expense, net | 11,849 | 10,913 | |||||||
Amortization of loan fees and debt premium | 439 | 449 | |||||||
Accretion on discounted liabilities | 552 | 760 | |||||||
Change in contingent consideration | 206 | — | |||||||
Depreciation and amortization | 11,282 | 8,721 | |||||||
EBITDA | 59,141 | 42,919 | |||||||
Less: Noncontrolling interest EBITDA (g) | — | 6,097 | |||||||
Less: Earnings attributable to the CPI earn-out | 2,832 | — | |||||||
EBITDA attributable to PBFX | 56,309 | 36,822 | |||||||
Non-cash unit-based compensation expense | 1,302 | 964 | |||||||
Cash interest | (11,988) | (11,136) | |||||||
Maintenance capital expenditures attributable to PBFX | (4,848) | (1,237) | |||||||
Distributable cash flow | $ | 40,775 | $ | 25,413 | |||||
Reconciliation of net cash provided by operating activities to EBITDA and | |||||||||
Net cash provided by operating activities | $ | 18,647 | $ | 38,209 | |||||
Change in operating assets and liabilities | 29,947 | (5,239) | |||||||
Interest expense, net | 11,849 | 10,913 | |||||||
Non-cash unit-based compensation expense | (1,302) | (964) | |||||||
EBITDA | 59,141 | 42,919 | |||||||
Less: Noncontrolling interest EBITDA (g) | — | 6,097 | |||||||
Less: Earnings attributable to the CPI earn-out | 2,832 | — | |||||||
EBITDA attributable to PBFX | 56,309 | 36,822 | |||||||
Non-cash unit-based compensation expense | 1,302 | 964 | |||||||
Cash interest | (11,988) | (11,136) | |||||||
Maintenance capital expenditures attributable to PBFX | (4,848) | (1,237) | |||||||
Distributable cash flow | $ | 40,775 | $ | 25,413 | |||||
See Footnotes to Earnings Release Tables | |||||||||
PBF LOGISTICS LP | |||||||||
EARNINGS RELEASE TABLES | |||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER GAAP | |||||||||
TO EBITDA AND ADJUSTED EBITDA | |||||||||
(Unaudited, in thousands) | |||||||||
Three Months Ended | |||||||||
2020 | 2019 | ||||||||
Reconciliation of net income to EBITDA and Adjusted EBITDA (c): | |||||||||
Net income | $ | 34,813 | $ | 22,076 | |||||
Interest expense, net | 11,849 | 10,913 | |||||||
Amortization of loan fees and debt premium | 439 | 449 | |||||||
Accretion on discounted liabilities | 552 | 760 | |||||||
Change in contingent consideration | 206 | — | |||||||
Depreciation and amortization | 11,282 | 8,721 | |||||||
EBITDA | 59,141 | 42,919 | |||||||
Less: Noncontrolling interest EBITDA (g) | — | 6,097 | |||||||
Less: Earnings attributable to the CPI earn-out | 2,832 | — | |||||||
EBITDA attributable to PBFX | 56,309 | 36,822 | |||||||
Acquisition and transaction costs | 95 | 2,153 | |||||||
Non-cash unit-based compensation expense | 1,302 | 964 | |||||||
East Coast Terminals environmental remediation costs | 232 | 2,136 | |||||||
PNGPC tariff true-up adjustment | — | 882 | |||||||
Adjusted EBITDA | $ | 57,938 | $ | 42,957 | |||||
See Footnotes to Earnings Release Tables | |||||||||
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Three Months Ended March 31, 2020 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 70,243 | $ | 22,786 | $ | — | $ | 93,029 | ||||||||
Depreciation and amortization | 7,072 | 4,210 | — | 11,282 | ||||||||||||
Income (loss) from operations | 41,268 | 10,772 | (4,387) | 47,653 | ||||||||||||
Other expense | — | — | 12,840 | 12,840 | ||||||||||||
Capital expenditures | 3,626 | 2,454 | — | 6,080 | ||||||||||||
Three Months Ended March 31, 2019 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 65,959 | $ | 12,886 | $ | — | $ | 78,845 | ||||||||
Depreciation and amortization | 6,901 | 1,820 | — | 8,721 | ||||||||||||
Income (loss) from operations | 36,551 | 3,657 | (6,010) | 34,198 | ||||||||||||
Other expense | — | — | 12,122 | 12,122 | ||||||||||||
Capital expenditures | 10,544 | 676 | — | 11,220 | ||||||||||||
Balance at March 31, 2020 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total assets | $ | 747,200 | $ | 234,652 | $ | 106,891 | $ | 1,088,743 | ||||||||
Balance at December 31, 2019 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total assets | $ | 726,374 | $ | 228,495 | $ | 18,133 | $ | 973,002 | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||
PBF LOGISTICS LP | |||||||||||
EARNINGS RELEASE TABLES | |||||||||||
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
(Unaudited, in thousands, except per unit data) | |||||||||||
(a) | See discussion of the factors affecting comparability noted on page 4. Our results of operations may not be comparable to the historical results of operations for the reasons described below: | ||||||||||
(b) | Calculated as the sum of the average throughput per day for each asset group for the periods presented. | ||||||||||
(c) | See "Non-GAAP Financial Measures" on page 5 for definitions of EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA, distributable cash flow and coverage ratio. | ||||||||||
(d) | Operating information reflects activity subsequent to our acquisitions, the execution of the commercial agreements with PBF Holding and the completion of certain organic growth projects. | ||||||||||
(e) | On May 15, 2020, we announced a quarterly cash distribution of $0.30 per limited partner unit based on the results of the first quarter of 2020. The distribution is payable on June 17, 2020 to PBFX unitholders of record at the close of business on May 27, 2020. The total distribution amount includes the expected distributions to be made related to first quarter earnings. | ||||||||||
(f) | Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents from total debt. We believe this measurement is 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. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of March 31, 2020 and December 31, 2019 was $786,520 and $767,138, respectively. | ||||||||||
(g) | Prior to the TVPC Acquisition, our wholly-owned subsidiary, PBFX Operating Company LLC ("PBFX Op Co"), held a 50% controlling equity interest in TVPC, with the other 50% equity interest in TVPC owned by TVP Holding, a subsidiary of PBF Holding. PBFX Op Co was the sole managing member of TVPC. We, through our ownership of PBFX Op Co, consolidated the financial results of TVPC and recorded a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated statements of operations included the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated balance sheets included the portion of net assets of TVPC attributable to TVP Holding. | ||||||||||
(h) | We base our calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during the period and the amount of available cash that has been, or will be, distributed to the limited partners. | ||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-declares-quarterly-distribution-of-0-30-per-unit-and-announces-first-quarter-2020-earnings-results-301059899.html
SOURCE PBF Logistics LP
Article Date
5/15/2020PBF Energy Announces Change to a Virtual Meeting Format for 2020 Annual Meeting of Stockholders on June 4, 2020
Source: PR Newswire
PARSIPPANY, N.J., May 8, 2020 /PRNewswire/ -- To protect the health and safety of its stockholders, employees and other stakeholders during the coronavirus pandemic, PBF Energy Inc. (NYSE: PBF) today announced that that its 2020 Annual Meeting of Stockholders will be conducted through an online virtual meeting, and will not include an in-person event. The previously announced date and time of the 2020 Annual Meeting (June 4, 2020, at 10:00 a.m. Eastern Time), and the business items to be considered at the 2020 Annual Meeting, remain the same. However, stockholders will not be able to attend the meeting in person.
Stockholders who owned shares of common stock as of April 6, 2020 (the "record date") are entitled to attend and vote at the Annual Meeting. To attend the Annual Meeting, visit www.virtualshareholdermeeting.com/PBF2020 and enter the 16-digit control number included on your proxy card or on the voting instruction form that you have previously received. Beneficial owners of shares held in street name will need to follow the instructions provided by the broker, bank or other nominee that holds their shares.
Regardless of meeting attendance, to ensure that their shares are represented at the 2020 Annual Meeting, stockholders should submit their voting instructions over the internet, by telephone, by completing, signing, dating, and returning their proxy card in the previously provided envelope, or by following the instructions they have received from their broker or other nominee. The proxy card, voting instruction form or notice of internet availability that were previously distributed will not be updated to reflect this change in meeting format and may be used to vote shares in connection with the 2020 Annual Meeting. Stockholders who previously sent in proxies, or voted by telephone or by internet, do not need to take any further action.
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-change-to-a-virtual-meeting-format-for-2020-annual-meeting-of-stockholders-on-june-4-2020-301055997.html
SOURCE PBF Energy Inc.
Article Date
5/8/2020PBF Energy Announces Pricing of $1.0 Billion of Senior Secured Notes due 2025
Source: PR Newswire
PARSIPPANY, N.J., May 7, 2020 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) ("PBF Energy") today announced that its indirect subsidiary, PBF Holding Company LLC ("PBF Holding"), priced $1.0 billion in aggregate principal amount of 9.25% senior secured notes due 2025 (the "Notes") in a private offering. The offering is expected to close on May 13, 2020, subject to customary closing conditions. The Notes will be co-issued by PBF Finance Corporation, a wholly owned subsidiary of PBF Holding. PBF Holding intends to use the net proceeds from the offering for general corporate purposes.
The Notes to be offered and sold have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and unless so registered, the Notes may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes were offered and will be sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act.
This press release is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of any securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
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 risks relating to the offering not closing and the securities markets generally, the company's expectations with respect to the timing and amount of the offering and the anticipated use of proceeds therefrom. 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-pricing-of-1-0-billion-of-senior-secured-notes-due-2025--301055411.html
SOURCE PBF Energy Inc.
Article Date
5/7/2020PBF Energy Announces Date Change for First Quarter 2020 Earnings Release and Call
Source: PR Newswire
PARSIPPANY, N.J., May 7, 2020 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) announced today that it has changed the date of its previously announced earnings release and earnings call and will now report its results for the first quarter 2020 on Friday, May 15, 2020. The company will host a conference call and webcast regarding quarterly results and other business matters on Friday, May 15, 2020, 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: PBFQ120. The audio replay will be available two hours after the end of the call through May 29, 2020, by dialing (800) 839-3607 or (402) 220-2970.
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-date-change-for-first-quarter-2020-earnings-release-and-call-301054885.html
SOURCE PBF Energy Inc.
Article Date
5/7/2020PBF Logistics Announces Date Change for First Quarter 2020 Earnings Release and Call
Source: PR Newswire
PARSIPPANY, N.J., May 7, 2020 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that it has changed the date of its previously announced earnings release and earnings call and will now report its results for the first quarter 2020 on Friday, May 15, 2020. The company will host a conference call and webcast regarding quarterly results and other business matters on Friday, May 15, 2020, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (877) 876-9176 or (785) 424-1670, conference ID: PBFXQ120. The audio replay will be available two hours after the end of the call through May 29, 2020, by dialing (800) 934-7884 or (402) 220-6987.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-announces-date-change-for-first-quarter-2020-earnings-release-and-call-301054889.html
SOURCE PBF Logistics LP
Article Date
5/7/2020PBF Energy Announces Intention to Offer $1,000.0 million of Senior Secured Notes
Source: PR Newswire
PARSIPPANY, N.J., May 7, 2020 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) ("PBF Energy") today announced that its indirect subsidiary, PBF Holding Company LLC ("PBF Holding"), intends to offer, subject to market and other conditions, $1,000.0 million in aggregate principal amount of senior secured notes due 2025 (the "Notes") in a private offering. The Notes will be co-issued by PBF Finance Corporation, a wholly owned subsidiary of PBF Holding. Completion of the offering is subject to, among other things, pricing and market conditions. PBF Holding intends to use the net proceeds from the offering for general corporate purposes.
The Notes will be offered in a private placement and are expected to be resold by the initial purchasers to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). The offer of the Notes will be made only by means of an offering memorandum to qualified investors and has not been registered under the Securities Act or any applicable state securities laws, and the Notes may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act.
This press release is being issued pursuant to Rule 135c under the Securities Act, and is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of any securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
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 expectations with respect to the timing and amount of the offering and the anticipated use of proceeds therefrom. 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-intention-to-offer-1-000-0-million-of-senior-secured-notes-301054882.html
SOURCE PBF Energy Inc.
Article Date
5/7/20204/20/2020 - PBF Energy Completes Sale of Five Operating Hydrogen Plants for $530 Million to Air Products
PBF Energy Completes Sale of Five Operating Hydrogen Plants for $530 Million to Air Products
Source: PR Newswire
PARSIPPANY, N.J., April 20, 2020 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today announced it has completed, and received the $530 million consideration for, the sale of five steam methane reformer (SMR) hydrogen production plants to Air Products (NYSE: APD). PBF Energy has entered into long-term supply agreements with Air Products at the Martinez, Torrance and Delaware City refineries.
"PBF Energy is pleased to have worked cooperatively with Air Products, a global leader in the supply of hydrogen to refineries, to complete this transaction and expand the long-term relationship between our two companies," said PBF's Chairman and Chief Executive Officer Tom Nimbley.
Air Products is known as a leader in the supply of hydrogen to refineries in order to make cleaner burning transportation fuels. Hydrogen is widely used in petroleum refining processes to remove impurities found in crude oil such as sulphur, olefins and aromatics to meet product fuels specifications. Removing these components allows gasoline and diesel to burn cleaner and thus makes hydrogen a critical component in the production of cleaner fuels needed by modern, efficient internal combustion engines.
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-completes-sale-of-five-operating-hydrogen-plants-for-530-million-to-air-products-301043005.html
SOURCE PBF Energy Inc.
Article Date
4/20/2020PBF Energy to Release First Quarter 2020 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., April 15, 2020 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) announced today that it will release its earnings results for the first quarter 2020 on Friday, May 8, 2020. The company will host a conference call and webcast regarding quarterly results and other business matters on Friday, May 8, 2020, 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: PBFQ120. The audio replay will be available two hours after the end of the call through May 22, 2020, by dialing (800) 839-2457 or (402) 220-7217.
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-to-release-first-quarter-2020-earnings-results-301041484.html
SOURCE PBF Energy Inc.
Article Date
4/15/2020PBF Logistics to Release First Quarter 2020 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., April 15, 2020 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that it will release its earnings results for the first quarter 2020 on Friday, May 8, 2020. The company will host a conference call and webcast regarding quarterly results and other business matters on Friday, May 8, 2020, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (877) 876-9176 or (785) 424-1670, conference ID: PBFXQ120. The audio replay will be available two hours after the end of the call through May 22, 2020, by dialing (800) 839-1198 or (402) 220-0458.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-release-first-quarter-2020-earnings-results-301041479.html
SOURCE PBF Logistics LP
Article Date
4/15/2020PBF 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
Source: PR Newswire
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:
"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.
Article Date
3/30/20202/20/2020 - PBF Logistics Filed 2019 Form 10-K
PBF Logistics Filed 2019 Form 10-K
Source: PR Newswire
PARSIPPANY, N.J., Feb. 20, 2020 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The filing can be viewed on the Partnership's website at www.pbflogistics.com.
Upon written request, limited partners may receive, free of charge, a hard copy of the Partnership's Annual Report on Form 10-K (including complete audited financial statements). Requests should be communicated in writing to PBF Logistics LP, Attention: Investor Relations, at 1 Sylvan Way, 2nd Floor, Parsippany, New Jersey 07054.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-filed-2019-form-10-k-301008838.html
SOURCE PBF Logistics LP
Article Date
2/20/20202/19/2020 - PBF Energy to Attend Industry Conferences
PBF Energy to Attend Industry Conferences
Source: PR Newswire
PARSIPPANY, N.J., Feb. 19, 2020 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be attending the Credit Suisse Energy Conference on March 1-3, 2020, and the Bank of America Merrill Lynch 2020 Refining Conference on March 11, 2020.
Any company presentation materials will be made available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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-to-attend-industry-conferences-301007968.html
SOURCE PBF Energy Inc.
Article Date
2/19/2020PBF Energy Reports Fourth Quarter 2019 Results, Declares Dividend of $0.30 Per Share
Source: PR Newswire
PARSIPPANY, N.J., Feb. 13, 2020 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today reported fourth quarter 2019 income from operations of $123.0 million as compared to loss from operations of $446.2 million for the fourth quarter of 2018. Excluding special items, fourth quarter 2019 income from operations was $149.8 million as compared to income from operations of $213.3 million for the fourth quarter of 2018.
The company reported fourth quarter 2019 net income of $69.1 million and net income attributable to PBF Energy Inc. of $53.0 million or $0.44 per share. This compares to net loss of $346.7 million, and net loss attributable to PBF Energy Inc. of $353.8 million or $2.97 per share for the fourth quarter of 2018. Special items in the fourth quarter 2019 results, which decreased net income by a net, after-tax charge of $20.2 million, or $0.16 per share, consisted of a lower-of-cost-or-market ("LCM") inventory adjustment. Adjusted fully-converted net income for the fourth quarter 2019, excluding special items, was $73.6 million, or $0.60 per share on a fully-exchanged, fully-diluted basis, as described below, compared to an adjusted fully-converted net income of $125.8 million or $1.03 per share, for the fourth quarter 2018.
Tom Nimbley, PBF Energy's Chairman and CEO, said, "We ended 2019 with strong results. By strategically advancing maintenance into the first half of 2019 we gave ourselves a clear runway for the second half of the year and into 2020." Mr. Nimbley continued, "Looking forward, our outlook remains positive. The turmoil we experienced in January should begin to subside as we move past the market disruptions and into seasonally higher demand. We have started to see impacts of the IMO marine fuel regulation change and we expect those to become more apparent as the market continues to adapt to the new realities of lower-sulfur product demand and shifting appetites for various qualities of feedstocks. Finally, PBF Energy successfully completed the acquisition of the Martinez refinery and we welcome our newest employees and assets to the PBF family."
Income from operations was $649.0 million for the year-ended December 31, 2019 as compared to income from operations of $358.1 million for the year-ended December 31, 2018. Excluding special items, income from operations was $365.7 million for the year-ended December 31, 2019 as compared to income from operations of $717.9 million for the year-ended December 31, 2018. Adjusted fully-converted net income for the year ended December 31, 2019, excluding special items, was $109.3 million, or $0.90 per share on a fully-exchanged, fully-diluted basis, as compared to adjusted fully-converted net income, excluding special items, of $387.0 million, or $3.26 per share, for the year ended December 31, 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 December 31, 2019.
Strategic and Corporate Update
On February 1, 2020, PBF Energy announced that its subsidiary completed the acquisition of the 157,000 barrel-per-day Martinez refinery, and related logistics assets. With the acquisition, PBF increased its total throughput capacity to more than one million barrels per day and becomes the most complex independent refiner with a consolidated Nelson Complexity of 12.8.
In January of 2020, PBF Energy's indirect subsidiary, PBF Holding Company LLC, successfully raised $1.0 billion in aggregate principal amount of 6.00% senior unsecured notes due 2028 (the "2028 Senior Notes") in a private offering. The company intends to use the net proceeds from the offering to fund the redemption of its outstanding 7.00% Senior Notes due 2023 (the "2023 Notes") and for general corporate purposes, including to pay a portion of the cash consideration for the acquisition of the Martinez refinery and related logistics assets.
Throughput Guidance
For the first quarter 2020, we expect East Coast total throughput to average 345,000 to 365,000 barrels per day; Mid-Continent total throughput is expected to average 95,000 to 105,000 barrels per day; Gulf Coast total throughput is expected to average 165,000 to 175,000 barrels per day; and West Coast total throughput is expected to average 260,000 to 280,000 barrels per day.
For the full-year 2020, East Coast total throughput is expected to average 350,000 to 370,000 barrels per day; Mid-Continent total throughput is expected to average 135,000 to 145,000 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 290,000 to 310,000 barrels per day.
First quarter and full-year throughput guidance for the West Coast region reflects the expected throughput of the Martinez refinery from the date of closing.
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 17, 2020, to holders of record as of February 25, 2020.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to Non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income, Adjusted Fully-Converted Net Income 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 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, February 13, 2020, 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) 518-6930 or (203) 518-9797, conference ID: PBFQ419. The audio replay will be available two hours after the end of the call through February 27, 2020, by dialing (800) 723-0528 or (402) 220-2654.
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, customers 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 48% 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 millions, except share and per share data) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Revenues | $ | 6,301.5 | $ | 6,292.9 | $ | 24,508.2 | $ | 27,186.1 | ||||||||||||
Cost and expenses: | ||||||||||||||||||||
Cost of products and other | 5,522.3 | 6,102.7 | 21,387.5 | 24,503.4 | ||||||||||||||||
Operating expenses (excluding depreciation and amortization expense as reflected | 433.6 | 452.8 | 1,782.3 | 1,721.0 | ||||||||||||||||
Depreciation and amortization expense | 110.4 | 95.3 | 425.3 | 359.1 | ||||||||||||||||
Cost of sales | 6,066.3 | 6,650.8 | 23,595.1 | 26,583.5 | ||||||||||||||||
General and administrative expenses (excluding depreciation and amortization | 108.1 | 85.6 | 284.0 | 277.0 | ||||||||||||||||
Depreciation and amortization expense | 3.0 | 2.7 | 10.8 | 10.6 | ||||||||||||||||
Change in contingent consideration | (0.8) | — | (0.8) | — | ||||||||||||||||
Loss (gain) on sale of assets | 1.9 | — | (29.9) | (43.1) | ||||||||||||||||
Total cost and expenses | 6,178.5 | 6,739.1 | 23,859.2 | 26,828.0 | ||||||||||||||||
Income (loss) from operations | 123.0 | (446.2) | 649.0 | 358.1 | ||||||||||||||||
Other income (expense): | ||||||||||||||||||||
Interest expense, net | (38.3) | (41.0) | (159.6) | (169.9) | ||||||||||||||||
Change in Tax Receivable Agreement liability | — | 6.1 | — | 13.9 | ||||||||||||||||
Change in fair value of catalyst obligations | (3.3) | (0.2) | (9.7) | 5.6 | ||||||||||||||||
Other non-service components of net periodic benefit cost | — | 0.3 | (0.2) | 1.1 | ||||||||||||||||
Income (loss) before income taxes | 81.4 | (481.0) | 479.5 | 208.8 | ||||||||||||||||
Income tax expense (benefit) | 12.3 | (134.3) | 104.3 | 33.5 | ||||||||||||||||
Net income (loss) | 69.1 | (346.7) | 375.2 | 175.3 | ||||||||||||||||
Less: net income attributable to noncontrolling interests | 16.1 | 7.1 | 55.8 | 47.0 | ||||||||||||||||
Net income (loss) attributable to PBF Energy Inc. stockholders | $ | 53.0 | $ | (353.8) | $ | 319.4 | $ | 128.3 | ||||||||||||
Net income (loss) available to Class A common stock per share: | ||||||||||||||||||||
Basic | $ | 0.44 | $ | (2.97) | $ | 2.66 | $ | 1.11 | ||||||||||||
Diluted | $ | 0.44 | $ | (2.97) | $ | 2.64 | $ | 1.10 | ||||||||||||
Weighted-average shares outstanding-basic | 119,858,394 | 119,066,695 | 119,887,646 | 115,190,262 | ||||||||||||||||
Weighted-average shares outstanding-diluted | 121,987,940 | 119,066,695 | 121,853,299 | 118,773,606 | ||||||||||||||||
Dividends per common share | $ | 0.30 | $ | 0.30 | $ | 1.20 | $ | 1.20 | ||||||||||||
Adjusted fully-converted net income (loss) and adjusted fully-converted net | ||||||||||||||||||||
Adjusted fully-converted net income (loss) | $ | 53.4 | $ | (357.7) | $ | 322.2 | $ | 131.0 | ||||||||||||
Adjusted fully-converted net income (loss) per fully exchanged, fully diluted share | $ | 0.44 | $ | (2.97) | $ | 2.64 | $ | 1.10 | ||||||||||||
Adjusted fully-converted shares outstanding - diluted (Note 6) | 121,987,940 | 120,273,021 | 121,853,299 | 118,773,606 | ||||||||||||||||
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) | ||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) AND ADJUSTED FULLY-CONVERTED NET INCOME EXCLUDING SPECIAL ITEMS (Note 1) | December 31, | December 31, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Net income (loss) attributable to PBF Energy Inc. stockholders | $ | 53.0 | $ | (353.8) | $ | 319.4 | $ | 128.3 | ||||||||||||||
Less: | Income allocated to participating securities | 0.1 | 0.1 | 0.5 | 0.7 | |||||||||||||||||
Income (loss) available to PBF Energy Inc. stockholders - basic | 52.9 | (353.9) | 318.9 | 127.6 | ||||||||||||||||||
Add: | Net income (loss) attributable to noncontrolling interest (Note 2) | 0.7 | (5.1) | 4.3 | 4.6 | |||||||||||||||||
Less: | Income tax (expense) benefit (Note 3) | (0.2) | 1.3 | (1.0) | (1.2) | |||||||||||||||||
Adjusted fully-converted net income (loss) | $ | 53.4 | $ | (357.7) | $ | 322.2 | $ | 131.0 | ||||||||||||||
Special Items (Note 4): | ||||||||||||||||||||||
Add: | Non-cash LCM inventory adjustment | 26.8 | 651.8 | (250.2) | 351.3 | |||||||||||||||||
Add: | Change in Tax Receivable Agreement liability | — | (6.1) | — | (13.9) | |||||||||||||||||
Add: | Gain on Torrance land sale | — | — | (33.1) | (43.8) | |||||||||||||||||
Add: | Early railcar return expense | — | 7.7 | — | 52.3 | |||||||||||||||||
Less: | Recomputed income taxes on special items (Note 3) | (6.6) | (169.9) | 70.4 | (89.9) | |||||||||||||||||
Adjusted fully-converted net income excluding special items | $ | 73.6 | $ | 125.8 | $ | 109.3 | $ | 387.0 | ||||||||||||||
Weighted-average shares outstanding of PBF Energy Inc. | 119,858,394 | 119,066,695 | 119,887,646 | 115,190,262 | ||||||||||||||||||
Conversion of PBF LLC Series A Units (Note 5) | 1,211,310 | 1,206,326 | 1,207,581 | 1,938,089 | ||||||||||||||||||
Common stock equivalents (Note 6) | 918,236 | 1,749,607 | 758,072 | 1,645,255 | ||||||||||||||||||
Fully-converted shares outstanding - diluted | 121,987,940 | 122,022,628 | 121,853,299 | 118,773,606 | ||||||||||||||||||
Adjusted fully-converted net income (loss) per fully exchanged, fully diluted shares outstanding (Note 6) | $ | 0.44 | $ | (2.97) | $ | 2.64 | $ | 1.10 | ||||||||||||||
Adjusted fully-converted net income excluding special items per fully exchanged, fully diluted shares outstanding (Note 4, 6) | $ | 0.60 | $ | 1.03 | $ | 0.90 | $ | 3.26 | ||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO INCOME FROM OPERATIONS EXCLUDING SPECIAL ITEMS | December 31, | December 31, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Income (loss) from operations | $ | 123.0 | $ | (446.2) | $ | 649.0 | $ | 358.1 | ||||||||||||||
Special Items (Note 4): | ||||||||||||||||||||||
Add: | Non-cash LCM inventory adjustment | 26.8 | 651.8 | (250.2) | 351.3 | |||||||||||||||||
Add: | Gain on Torrance land sale | — | — | (33.1) | (43.8) | |||||||||||||||||
Add: | Early railcar return expense | — | 7.7 | — | 52.3 | |||||||||||||||||
Income from operations excluding special items | $ | 149.8 | $ | 213.3 | $ | 365.7 | $ | 717.9 | ||||||||||||||
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 | Year Ended | |||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND EBITDA EXCLUDING SPECIAL ITEMS | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Net income (loss) | $ | 69.1 | $ | (346.7) | $ | 375.2 | $ | 175.3 | ||||||||||||||
Add: | Depreciation and amortization expense | 113.4 | 98.0 | 436.1 | 369.7 | |||||||||||||||||
Add: | Interest expense, net | 38.3 | 41.0 | 159.6 | 169.9 | |||||||||||||||||
Add: | Income tax expense (benefit) | 12.3 | (134.3) | 104.3 | 33.5 | |||||||||||||||||
EBITDA | $ | 233.1 | $ | (342.0) | $ | 1,075.2 | $ | 748.4 | ||||||||||||||
Special Items (Note 4): | ||||||||||||||||||||||
Add: | Non-cash LCM inventory adjustment | 26.8 | 651.8 | (250.2) | 351.3 | |||||||||||||||||
Add: | Change in Tax Receivable Agreement liability | — | (6.1) | — | (13.9) | |||||||||||||||||
Add: | Gain on Torrance land sale | — | — | (33.1) | (43.8) | |||||||||||||||||
Add: | Early railcar return expense | — | 7.7 | — | 52.3 | |||||||||||||||||
EBITDA excluding special items | $ | 259.9 | $ | 311.4 | $ | 791.9 | $ | 1,094.3 | ||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
EBITDA | $ | 233.1 | $ | (342.0) | $ | 1,075.2 | $ | 748.4 | ||||||||||||||
Add: | Stock-based compensation | 8.9 | 7.4 | 37.3 | 26.0 | |||||||||||||||||
Add: | Net non-cash change in fair value of catalyst obligations | 3.3 | 0.2 | 9.7 | (5.6) | |||||||||||||||||
Add: | Non-cash LCM inventory adjustment (Note 4) | 26.8 | 651.8 | (250.2) | 351.3 | |||||||||||||||||
Add: | Change in Tax Receivable Agreement liability (Note 4) | — | (6.1) | — | (13.9) | |||||||||||||||||
Adjusted EBITDA | $ | 272.1 | $ | 311.3 | $ | 872.0 | $ | 1,106.2 | ||||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||
EARNINGS RELEASE TABLES | |||||||||||
CONSOLIDATED BALANCE SHEET DATA | |||||||||||
(Unaudited, in millions) | |||||||||||
December 31, | December 31, | ||||||||||
2019 | 2018 | ||||||||||
Balance Sheet Data: | |||||||||||
Cash and cash equivalents | $ | 814.9 | $ | 597.3 | |||||||
Inventories | 2,122.2 | 1,865.8 | |||||||||
Total assets | 9,132.4 | 8,005.4 | |||||||||
Total debt | 2,064.9 | 1,933.7 | |||||||||
Total equity | 3,585.5 | 3,248.5 | |||||||||
Total equity excluding special items (Note 4, 13) | $ | 3,675.8 | $ | 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) | 26 | % | 29 | % | |||||||
Net debt to capitalization ratio, excluding special items (Note 13) | 25 | % | 27 | % | |||||||
SUMMARIZED STATEMENT OF CASH FLOW DATA | |||||||||||
(Unaudited, in millions) | |||||||||||
Year Ended December 31, | |||||||||||
2019 | 2018 | ||||||||||
Cash flows provided by operations | $ | 933.5 | $ | 838.0 | |||||||
Cash flows used in investing activities | (712.6) | (685.6) | |||||||||
Cash flows used in financing activities | (3.3) | (128.1) | |||||||||
Net increase in cash and cash equivalents | 217.6 | 24.3 | |||||||||
Cash and cash equivalents, beginning of period | 597.3 | 573.0 | |||||||||
Cash and cash equivalents, end of period | $ | 814.9 | $ | 597.3 | |||||||
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 December 31, 2019 | |||||||||||||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||||||||||||
Revenues | $ | 6,286.2 | $ | 92.2 | $ | — | $ | (76.9) | $ | 6,301.5 | |||||||||
Depreciation and amortization expense | 98.4 | 12.0 | 3.0 | — | 113.4 | ||||||||||||||
Income (loss) from operations | 184.9 | 42.9 | (104.8) | — | 123.0 | ||||||||||||||
Interest expense, net | 0.6 | 13.1 | 24.6 | — | 38.3 | ||||||||||||||
Capital expenditures | 108.7 | 8.5 | 1.9 | — | 119.1 | ||||||||||||||
Three Months Ended December 31, 2018 | |||||||||||||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||||||||||||
Revenues | $ | 6,281.5 | $ | 80.0 | $ | — | $ | (68.6) | $ | 6,292.9 | |||||||||
Depreciation and amortization expense | 86.7 | 8.6 | 2.7 | — | 98.0 | ||||||||||||||
Income (loss) from operations (Note 15) | (397.7) | 38.6 | (82.4) | (4.7) | (446.2) | ||||||||||||||
Interest expense, net | 1.1 | 12.1 | 27.8 | — | 41.0 | ||||||||||||||
Capital expenditures (Note 17) | 175.2 | 89.1 | 1.5 | — | 265.8 | ||||||||||||||
Year Ended December 31, 2019 | |||||||||||||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||||||||||||
Revenues | $ | 24,468.9 | $ | 340.2 | $ | — | $ | (300.9) | $ | 24,508.2 | |||||||||
Depreciation and amortization expense | 386.7 | 38.6 | 10.8 | — | 436.1 | ||||||||||||||
Income (loss) from operations (Note 14, 15) | 767.9 | 159.3 | (270.3) | (7.9) | 649.0 | ||||||||||||||
Interest expense, net | 1.3 | 51.1 | 107.2 | — | 159.6 | ||||||||||||||
Capital expenditures | 708.9 | 31.7 | 8.3 | — | 748.9 | ||||||||||||||
Year Ended December 31, 2018 | |||||||||||||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||||||||||||
Revenues | $ | 27,162.1 | $ | 283.4 | $ | — | $ | (259.4) | $ | 27,186.1 | |||||||||
Depreciation and amortization expense | 329.3 | 29.8 | 10.6 | — | 369.7 | ||||||||||||||
Income (loss) from operations (Note 15) | 498.2 | 143.9 | (266.2) | (17.8) | 358.1 | ||||||||||||||
Interest expense, net | 7.6 | 43.0 | 119.3 | — | 169.9 | ||||||||||||||
Capital expenditures (Note 17) | 552.0 | 175.7 | 6.2 | — | 733.9 | ||||||||||||||
Balance at December 31, 2019 | |||||||||||||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||||||||||||
Total Assets (Note 14) | $ | 8,154.8 | $ | 973.0 | $ | 52.7 | $ | (48.1) | $ | 9,132.4 | |||||||||
Balance at December 31, 2018 | |||||||||||||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||||||||||||
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 | Year Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
Market Indicators (dollars per barrel) (Note 9) | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Dated Brent Crude | $ | 63.22 | $ | 68.70 | $ | 64.34 | $ | 71.34 | ||||||||||||
West Texas Intermediate (WTI) crude oil | $ | 56.88 | $ | 59.98 | $ | 57.03 | $ | 65.20 | ||||||||||||
Light Louisiana Sweet (LLS) crude oil | $ | 60.65 | $ | 67.51 | $ | 62.67 | $ | 70.23 | ||||||||||||
Alaska North Slope (ANS) crude oil | $ | 64.32 | $ | 69.53 | $ | 65.00 | $ | 71.54 | ||||||||||||
Crack Spreads: | ||||||||||||||||||||
Dated Brent (NYH) 2-1-1 | $ | 12.56 | $ | 10.19 | $ | 12.68 | $ | 13.17 | ||||||||||||
WTI (Chicago) 4-3-1 | $ | 10.97 | $ | 11.75 | $ | 15.25 | $ | 14.84 | ||||||||||||
LLS (Gulf Coast) 2-1-1 | $ | 12.78 | $ | 9.35 | $ | 12.43 | $ | 12.30 | ||||||||||||
ANS (West Coast) 4-3-1 | $ | 18.35 | $ | 11.82 | $ | 18.46 | $ | 15.48 | ||||||||||||
Crude Oil Differentials: | ||||||||||||||||||||
Dated Brent (foreign) less WTI | $ | 6.34 | $ | 8.72 | $ | 7.31 | $ | 6.14 | ||||||||||||
Dated Brent less Maya (heavy, sour) | $ | 10.23 | $ | 6.19 | $ | 6.76 | $ | 8.70 | ||||||||||||
Dated Brent less WTS (sour) | $ | 6.07 | $ | 15.38 | $ | 8.09 | $ | 13.90 | ||||||||||||
Dated Brent less ASCI (sour) | $ | 5.56 | $ | 4.45 | $ | 3.73 | $ | 4.64 | ||||||||||||
WTI less WCS (heavy, sour) | $ | 19.18 | $ | 34.67 | $ | 13.61 | $ | 26.93 | ||||||||||||
WTI less Bakken (light, sweet) | $ | 1.04 | $ | 8.48 | $ | 0.66 | $ | 2.86 | ||||||||||||
WTI less Syncrude (light, sweet) | $ | 1.65 | $ | 19.19 | $ | 0.18 | $ | 6.84 | ||||||||||||
WTI less LLS (light, sweet) | $ | (3.77) | $ | (7.53) | $ | (5.64) | $ | (5.03) | ||||||||||||
WTI less ANS (light, sweet) | $ | (7.44) | $ | (9.55) | $ | (7.97) | $ | (6.34) | ||||||||||||
Natural gas (dollars per MMBTU) | $ | 2.41 | $ | 3.72 | $ | 2.53 | $ | 3.07 | ||||||||||||
Key Operating Information | ||||||||||||||||||||
Production (barrels per day ("bpd") in thousands) | 852.1 | 850.8 | 825.2 | 854.5 | ||||||||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 843.0 | 842.7 | 823.1 | 849.7 | ||||||||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 77.5 | 77.5 | 300.4 | 310.0 | ||||||||||||||||
Consolidated gross margin per barrel of throughput | $ | 3.04 | $ | (4.62) | $ | 3.04 | $ | 1.94 | ||||||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 9.31 | $ | 10.00 | $ | 8.51 | $ | 9.09 | ||||||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 5.28 | $ | 5.56 | $ | 5.61 | $ | 5.34 | ||||||||||||
Crude and feedstocks (% of total throughput) (Note 12) | ||||||||||||||||||||
Heavy | 33 | % | 35 | % | 32 | % | 36 | % | ||||||||||||
Medium | 25 | % | 30 | % | 28 | % | 30 | % | ||||||||||||
Light | 28 | % | 22 | % | 26 | % | 21 | % | ||||||||||||
Other feedstocks and blends | 14 | % | 13 | % | 14 | % | 13 | % | ||||||||||||
Total throughput | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
Yield (% of total throughput) | ||||||||||||||||||||
Gasoline and gasoline blendstocks | 51 | % | 50 | % | 49 | % | 50 | % | ||||||||||||
Distillates and distillate blendstocks | 33 | % | 33 | % | 32 | % | 32 | % | ||||||||||||
Lubes | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||
Chemicals | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||||
Other | 14 | % | 15 | % | 16 | % | 16 | % | ||||||||||||
Total yield | 101 | % | 101 | % | 100 | % | 101 | % | ||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||||||
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Supplemental Operating Information - East Coast (Delaware City and Paulsboro) | ||||||||||||||||||||
Production (bpd in thousands) | 355.2 | 327.5 | 330.9 | 340.2 | ||||||||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 357.0 | 331.2 | 336.4 | 344.7 | ||||||||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 32.8 | 30.5 | 122.8 | 125.8 | ||||||||||||||||
Gross margin per barrel of throughput | $ | 3.73 | $ | (11.54) | $ | 0.33 | $ | 0.25 | ||||||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 8.16 | $ | 8.55 | $ | 5.90 | $ | 7.43 | ||||||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 4.43 | $ | 5.12 | $ | 4.92 | $ | 4.68 | ||||||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||||||||||
Heavy | 25 | % | 26 | % | 22 | % | 27 | % | ||||||||||||
Medium | 28 | % | 47 | % | 40 | % | 47 | % | ||||||||||||
Light | 29 | % | 9 | % | 20 | % | 8 | % | ||||||||||||
Other feedstocks and blends | 18 | % | 18 | % | 18 | % | 18 | % | ||||||||||||
Total throughput | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
Yield (% of total throughput): | ||||||||||||||||||||
Gasoline and gasoline blendstocks | 47 | % | 46 | % | 45 | % | 46 | % | ||||||||||||
Distillates and distillate blendstocks | 36 | % | 33 | % | 33 | % | 33 | % | ||||||||||||
Lubes | 2 | % | 2 | % | 2 | % | 2 | % | ||||||||||||
Chemicals | 1 | % | 1 | % | 1 | % | 1 | % | ||||||||||||
Other | 13 | % | 17 | % | 17 | % | 17 | % | ||||||||||||
Total yield | 99 | % | 99 | % | 98 | % | 99 | % | ||||||||||||
Supplemental Operating Information - Mid-Continent (Toledo) | ||||||||||||||||||||
Production (bpd in thousands) | 152.2 | 152.9 | 155.5 | 151.5 | ||||||||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 149.6 | 149.8 | 153.0 | 149.6 | ||||||||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 13.8 | 13.8 | 55.9 | 54.6 | ||||||||||||||||
Gross margin per barrel of throughput | $ | 3.93 | $ | (9.90) | $ | 7.24 | $ | 5.07 | ||||||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 9.42 | $ | 17.76 | $ | 12.26 | $ | 13.46 | ||||||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 5.11 | $ | 5.30 | $ | 5.10 | $ | 5.12 | ||||||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||||||||||
Medium | 30 | % | 30 | % | 30 | % | 32 | % | ||||||||||||
Light | 69 | % | 68 | % | 69 | % | 66 | % | ||||||||||||
Other feedstocks and blends | 1 | % | 2 | % | 1 | % | 2 | % | ||||||||||||
Total throughput | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
Yield (% of total throughput): | ||||||||||||||||||||
Gasoline and gasoline blendstocks | 54 | % | 52 | % | 52 | % | 53 | % | ||||||||||||
Distillates and distillate blendstocks | 37 | % | 37 | % | 36 | % | 35 | % | ||||||||||||
Chemicals | 6 | % | 6 | % | 6 | % | 5 | % | ||||||||||||
Other | 5 | % | 7 | % | 8 | % | 8 | % | ||||||||||||
Total yield | 102 | % | 102 | % | 102 | % | 101 | % | ||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||||||
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Supplemental Operating Information - Gulf Coast (Chalmette) | ||||||||||||||||||||
Production (bpd in thousands) | 171.0 | 192.1 | 179.1 | 189.2 | ||||||||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 167.7 | 188.7 | 177.9 | 185.6 | ||||||||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 15.4 | 17.3 | 64.9 | 67.7 | ||||||||||||||||
Gross margin per barrel of throughput | $ | 0.76 | $ | 0.27 | $ | 0.93 | $ | (0.27) | ||||||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 6.05 | $ | 5.83 | $ | 5.87 | $ | 6.41 | ||||||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 5.16 | $ | 4.65 | $ | 4.95 | $ | 4.66 | ||||||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||||||||||
Heavy | 36 | % | 38 | % | 35 | % | 39 | % | ||||||||||||
Medium | 28 | % | 18 | % | 23 | % | 19 | % | ||||||||||||
Light | 20 | % | 29 | % | 25 | % | 29 | % | ||||||||||||
Other feedstocks and blends | 16 | % | 15 | % | 17 | % | 13 | % | ||||||||||||
Total throughput | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
Yield (% of total throughput): | ||||||||||||||||||||
Gasoline and gasoline blendstocks | 46 | % | 44 | % | 45 | % | 43 | % | ||||||||||||
Distillates and distillate blendstocks | 33 | % | 36 | % | 33 | % | 34 | % | ||||||||||||
Chemicals | 1 | % | 1 | % | 2 | % | 1 | % | ||||||||||||
Other | 22 | % | 21 | % | 21 | % | 24 | % | ||||||||||||
Total yield | 102 | % | 102 | % | 101 | % | 102 | % | ||||||||||||
Supplemental Operating Information - West Coast (Torrance) | ||||||||||||||||||||
Production (bpd in thousands) | 173.7 | 178.3 | 159.7 | 173.6 | ||||||||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 168.7 | 173.0 | 155.8 | 169.8 | ||||||||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 15.5 | 15.9 | 56.8 | 61.9 | ||||||||||||||||
Gross margin per barrel of throughput | $ | (0.09) | $ | 5.09 | $ | 3.96 | $ | 2.33 | ||||||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 14.85 | $ | 10.57 | $ | 13.38 | $ | 11.60 | ||||||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 7.34 | $ | 7.61 | $ | 8.34 | $ | 7.61 | ||||||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||||||||||
Heavy | 77 | % | 78 | % | 80 | % | 81 | % | ||||||||||||
Medium | 10 | % | 10 | % | 8 | % | 7 | % | ||||||||||||
Other feedstocks and blends | 13 | % | 12 | % | 12 | % | 12 | % | ||||||||||||
Total throughput | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
Yield (% of total throughput): | ||||||||||||||||||||
Gasoline and gasoline blendstocks | 63 | % | 60 | % | 60 | % | 59 | % | ||||||||||||
Distillates and distillate blendstocks | 24 | % | 28 | % | 26 | % | 28 | % | ||||||||||||
Other | 16 | % | 15 | % | 17 | % | 15 | % | ||||||||||||
Total yield | 103 | % | 103 | % | 103 | % | 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 | ||||||||||||||||||||
December 31, 2019 | December 31, 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 | $ | 6,301.5 | $ | 81.26 | $ | 6,292.9 | $ | 81.16 | |||||||||||||
Less: Cost of sales | 6,066.3 | 78.22 | 6,650.8 | 85.78 | |||||||||||||||||
Consolidated gross margin | $ | 235.2 | $ | 3.04 | $ | (357.9) | $ | (4.62) | |||||||||||||
Reconciliation of consolidated gross margin to gross refining margin: | |||||||||||||||||||||
Consolidated gross margin | $ | 235.2 | $ | 3.04 | $ | (357.9) | $ | (4.62) | |||||||||||||
Add: PBFX operating expense | 31.8 | 0.41 | 27.0 | 0.35 | |||||||||||||||||
Add: PBFX depreciation expense | 12.0 | 0.15 | 8.6 | 0.11 | |||||||||||||||||
Less: Revenues of PBFX | (92.2) | (1.19) | (80.0) | (1.03) | |||||||||||||||||
Add: Refinery operating expense | 409.4 | 5.28 | 430.9 | 5.56 | |||||||||||||||||
Add: Refinery depreciation expense | 98.4 | 1.27 | 86.7 | 1.12 | |||||||||||||||||
Gross refining margin | $ | 694.6 | $ | 8.96 | $115.3 | $ | 1.49 | ||||||||||||||
Special Items (Note 4): | |||||||||||||||||||||
Add: Non-cash LCM inventory adjustment | 26.8 | 0.35 | 651.8 | 8.41 | |||||||||||||||||
Add: Early railcar return expense | — | — | 7.7 | 0.10 | |||||||||||||||||
Gross refining margin excluding special items | $ | 721.4 | $ | 9.31 | $ | 774.8 | $ | 10.00 | |||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||
December 31, 2019 | December 31, 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 | $ | 24,508.2 | $ | 81.58 | $ | 27,186.1 | $ | 87.67 | |||||||||||||
Less: Cost of sales | 23,595.1 | 78.54 | 26,583.5 | 85.73 | |||||||||||||||||
Consolidated gross margin | $ | 913.1 | $ | 3.04 | $ | 602.6 | $ | 1.94 | |||||||||||||
Reconciliation of consolidated gross margin to gross refining margin: | |||||||||||||||||||||
Consolidated gross margin | $ | 913.1 | $ | 3.04 | $ | 602.6 | $ | 1.94 | |||||||||||||
Add: PBFX operating expense | 118.7 | 0.40 | 84.4 | 0.27 | |||||||||||||||||
Add: PBFX depreciation expense | 38.6 | 0.13 | 29.4 | 0.09 | |||||||||||||||||
Less: Revenues of PBFX | (340.2) | (1.13) | (281.5) | (0.91) | |||||||||||||||||
Add: Refinery operating expense | 1,684.3 | 5.61 | 1,654.8 | 5.34 | |||||||||||||||||
Add: Refinery depreciation expense | 386.7 | 1.29 | 329.7 | 1.06 | |||||||||||||||||
Gross refining margin | $ | 2,801.2 | $ | 9.34 | $ | 2,419.4 | $ | 7.79 | |||||||||||||
Special Items (Note 4): | |||||||||||||||||||||
Add: Non-cash LCM inventory adjustment | (250.2) | (0.83) | 351.3 | 1.13 | |||||||||||||||||
Add: Early railcar return expense | — | — | 52.3 | 0.17 | |||||||||||||||||
Gross refining margin excluding special items | $ | 2,551.0 | $ | 8.51 | $ | 2,823.0 | $ | 9.09 | |||||||||||||
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. | |||||||||||||||||||||||||
(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 PBF Energy's annualized statutory corporate tax rate of approximately 24.9% and 26.0% for the 2019 and 2018 periods, respectively, applied to net income attributable to noncontrolling interest for all periods presented. The adjustment assumes the full exchange of existing PBF LLC Series A Units as described in footnote 2 above. Our statutory tax rates were reduced in 2018 as a result of the Tax Cuts and Jobs Act ("TCJA") enactment. | |||||||||||||||||||||||||
(4) The Non-GAAP measures presented include adjusted fully-converted net income excluding special items, income from operations excluding special items, EBITDA excluding special items and gross refining margin excluding special items. Special items for the periods presented relate to lower of cost or market ("LCM") inventory adjustments, gains on the sale of assets at our Torrance refinery, changes in the Tax Receivable Agreement liability and charges associated with the early return of certain leased railcars, as discussed further below. Additionally, the cumulative effects of all current and 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. | |||||||||||||||||||||||||
The following table includes the LCM inventory reserve as of each date presented (in millions): | |||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||
January 1, | $ | 651.8 | $ | 300.5 | |||||||||||||||||||||
September 30, | 374.8 | — | |||||||||||||||||||||||
December 31, | 401.6 | 651.8 | |||||||||||||||||||||||
The following table includes the corresponding impact of changes in the LCM inventory reserve on income (loss) from operations and net income (loss) for the periods presented (in millions): | |||||||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||
Net LCM inventory adjustment (charge) benefit | $ | (26.8) | $ | (651.8) | $ | 250.2 | $ | (351.3) | |||||||||||||||||
Net LCM inventory adjustment (charge) benefit | (20.2) | (482.3) | 188.0 | (260.0) | |||||||||||||||||||||
Gain on Torrance land sale - During the years ended December 31, 2019 and 2018, respectively, we recorded a gain on the sale of two separate parcels of real property acquired as part of the Torrance refinery, but not part of the refinery itself. The gain increased income from operations and net income by $33.1 million and $24.9 million, respectively, during the year ended December 31, 2019. The gain increased income from operations and net income by $43.8 million and $32.4 million, respectively, during the year ended December 31, 2018. | |||||||||||||||||||||||||
Early Return of Railcars - During the three months and year ended December 31, 2018 we recognized certain expenses within Cost of sales associated with the voluntary early return of certain leased railcars, which decreased income from operations by $7.7 million and $52.3 million ($5.7 million and $38.7 million, net of tax), respectively. There were no such expenses in the year ended December 31, 2019. | |||||||||||||||||||||||||
Change in Tax Receivable Agreement liability - During the three months and year ended December 31, 2018 we recorded a change in the Tax Receivable Agreement liability that increased income before income taxes by $6.1 million and $13.9 million ($4.5 million and $10.3 million, net of tax), respectively. There were no such expenses in the year ended December 31, 2019. | |||||||||||||||||||||||||
Recomputed Income taxes on special items - The income tax impact of the special items were calculated using the tax rates shown in footnote 3 above. | |||||||||||||||||||||||||
(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 months and years ended December 31, 2019 and 2018, respectively. Common stock equivalents exclude the effects of performance share units and options and warrants to purchase 6,734,276 and 6,765,526 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, 2019, respectively. Common stock equivalents exclude the effects of options and warrants to purchase 1,278,242 and 1,293,242 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, 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 obligations, 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 December 31, 2019, the Refining segment includes the operations of our oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio, Chalmette, 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. | ||||||||||
December 31, | December 31, | |||||||||
2019 | 2018 | |||||||||
(in millions) | ||||||||||
Total debt | $ | 2,064.9 | $ | 1,933.7 | ||||||
Total equity | 3,585.5 | 3,248.5 | ||||||||
Total capitalization | $ | 5,650.4 | $ | 5,182.2 | ||||||
Total debt | $ | 2,064.9 | $ | 1,933.7 | ||||||
Total equity excluding special items | 3,675.8 | 3,551.7 | ||||||||
Total capitalization excluding special items | $ | 5,740.7 | $ | 5,485.4 | ||||||
Total equity | $ | 3,585.5 | $ | 3,248.5 | ||||||
Special Items (Note 4) | ||||||||||
Add: Non-cash LCM inventory adjustment | 401.6 | 651.8 | ||||||||
Add: Gain on Torrance land sale | (76.9) | (43.8) | ||||||||
Add: Change in Tax Receivable Agreement liability | (290.4) | (290.4) | ||||||||
Add: Debt extinguishment costs | 25.5 | 25.5 | ||||||||
Add: Early railcar return expense | 52.3 | 52.3 | ||||||||
Less: Recomputed income taxes on special items | (42.0) | (112.4) | ||||||||
Add: Net tax expense on TCJA related special items | 20.2 | 20.2 | ||||||||
Net impact of special items to equity | 90.3 | 303.2 | ||||||||
Total equity excluding special items | $ | 3,675.8 | $ | 3,551.7 | ||||||
Total debt | $ | 2,064.9 | $ | 1,933.7 | ||||||
Less: Cash and cash equivalents | 814.9 | 597.3 | ||||||||
Net Debt | $ | 1,250.0 | $ | 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 | 26 | % | 29 | % | ||||||
Net debt to capitalization ratio, excluding special items | 25 | % | 27 | % | ||||||
(14) On April 24, 2019, PBFX entered into a contribution agreement with PBF LLC (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") for a total consideration of $200.0 million (the "TVPC Acquisition"). Prior to the TVPC Acquisition, TVP Holding owned a 50% equity interest in TVPC. Subsequent to the closing of the TVPC Acquisition on May 31, 2019, PBFX owns 100% of the equity interests 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 the Company's 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 the Company's Consolidated Financial Statements, PBFX's noncontrolling interest in TVPC and PBF Holding's equity investment in TVPC eliminated in consolidation. | ||||||||||
(17) For the three months ended December 31, 2018, the Logistics segment includes capital expenditures of $75.0 million related to the PBFX acquisition of the East Coast Storage Assets on October 1, 2018. For the year ended December 31, 2018, the Logistics segment also includes capital expenditures of $58.4 million for the PBFX acquisition of the Knoxville Terminals on April 16, 2018. | ||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-energy-reports-fourth-quarter-2019-results-declares-dividend-of-0-30-per-share-301004274.html
SOURCE PBF Energy Inc.
Article Date
2/13/2020PBF Energy Completes Acquisition of Martinez Refinery, Creates West Coast System
Source: PR Newswire
PARSIPPANY, N.J., Feb. 1, 2020 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that its subsidiary completed the acquisition of Martinez refinery, and related logistics assets, from Equilon Enterprises LLC d/b/a Shell Oil Products US (the "Seller" or "Shell"). With the acquisition, PBF's increased its total throughput capacity to more than one million barrels per day and becomes the most complex independent refiner with a consolidated Nelson Complexity of 12.8. The purchase price for the assets was $960.0 million plus the value of hydrocarbon inventory. In conjunction with the transaction, PBF has entered into market-based, crude oil supply and product offtake agreements with Shell. PBF financed the transaction with a combination of cash, including proceeds from its subsidiaries' $1 billion private debt offering in January of 2020, and borrowings under its existing revolving credit facility.
"We welcome Martinez's professional workforce to the PBF family," said PBF's Chairman and Chief Executive Officer Tom Nimbley. "We are committed to maintaining the high operational standards of the refinery and, through continued safe, reliable and environmentally responsible operations, earning the privilege of being a respected member of the Martinez and Contra Costa County communities." Mr. Nimbley continued, "The acquisition of Martinez is a significant strategic step for PBF as we expand our West Coast operations. Martinez is a top-tier asset, is a perfect complement to our existing assets and provides increased opportunities for PBF's West Coast operations to deliver value."
The 157,000 barrel-per-day, dual-coking Martinez refinery is located on an 860-acre site in the City of Martinez, 30 miles northeast of San Francisco, California. The refinery is a high-conversion facility with a Nelson Complexity Index of 16.1, making it one of the most complex refineries in the United States. The facility is strategically positioned in Northern California and provides for operating and other synergies with PBF's Torrance refinery located in Southern California. In addition to refining assets, the transaction includes a number of high-quality onsite logistics assets including a deep-water marine facility, product distribution terminals and refinery crude and product storage facilities with approximately 8.8 million barrels of shell capacity.
Renewable Fuels Project
PBF Energy and Shell have agreed to jointly move forward with reviewing the feasibility of building a proposed renewable diesel project which would repurpose existing idled equipment at the Martinez refinery to create a renewable fuels production facility.
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 post-acquisition plans, objectives, expectations and intentions with respect to future earnings and operations of the Martinez refinery and/or its West Coast operations, including the renewable fuels project. 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-completes-acquisition-of-martinez-refinery-creates-west-coast-system-300997298.html
SOURCE PBF Energy Inc.
Article Date
2/1/2020PBF Energy Announces Pricing of $1.0 Billion of 6.00% Senior Notes Due 2028
Source: PR Newswire
PARSIPPANY, N.J., Jan. 16, 2020 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) ("PBF Energy") announced today that its indirect subsidiary, PBF Holding Company LLC ("PBF Holding"), priced $1.0 billion in aggregate principal amount of 6.00% senior unsecured notes due 2028 (the "Notes") in a private offering. The offering is expected to close on January 24, 2020, subject to customary closing conditions. The Notes will be co-issued by PBF Finance Corporation, a wholly owned subsidiary of PBF Holding.
PBF Holding intends to use the net proceeds from the offering to fund the redemption of its outstanding 7.00% Senior Notes due 2023 (the "2023 Notes") and for general corporate purposes, including to pay a portion of the cash consideration in the pending acquisition of the Martinez refinery and related logistics assets (the "Martinez Acquisition"). The offering is not contingent on the completion of the Martinez Acquisition.
The Notes to be offered and sold have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and unless so registered, the Notes may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes were offered and will be sold only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such states.
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 risks relating to the offering not closing and the securities markets generally, the company's expectations with respect to the offering and the anticipated use of proceeds therefrom, the timing of the completion of the proposed acquisition and the consummation of the redemption of the 2023 Notes; the company's post-acquisition plans, objectives, expectations and intentions with respect to future earnings and operations of the Martinez refinery and/or its West Coast operations, including the renewable fuels project; the company's plans for financing the proposed acquisition; and the conditions to the closing of the proposed acquisition and the possibility that the proposed acquisition will not close. 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-pricing-of-1-0-billion-of-6-00-senior-notes-due-2028--300988495.html
SOURCE PBF Energy Inc.
Article Date
1/16/2020PBF Energy Announces Intention to Offer $1 Billion of Senior Notes
Source: PR Newswire
PARSIPPANY, N.J., Jan. 15, 2020 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) ("PBF Energy") today announced that its indirect subsidiary, PBF Holding Company LLC ("PBF Holding"), intends to offer, subject to market and other conditions, $1.0 billion in aggregate principal amount of senior unsecured notes due 2028 (the "Notes") in a private offering. The Notes will be co-issued by PBF Finance Corporation, a wholly owned subsidiary of PBF Holding.
PBF Holding intends to use the net proceeds from the offering to fund the redemption of its outstanding 7.00% Senior Notes due 2023 (the "2023 Notes") and for general corporate purposes, including to pay a portion of the cash consideration in the pending acquisition of the Martinez refinery and related logistics assets.
The Notes will be offered in a private placement and are expected to be resold by the initial purchasers to qualified institutional buyers under Rule 144A and to persons outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). The offer of the Notes will be made only by means of an offering memorandum to qualified investors and has not been registered under the Securities Act or any applicable state securities laws, and the Notes may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act.
This press release is being issued pursuant to Rule 135c under the Securities Act, and is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of any securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
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 expectations with respect to the offering and the anticipated use of proceeds therefrom, the timing of the completion of the proposed acquisition and the consummation of the redemption of the 2023 Notes; the company's post-acquisition plans, objectives, expectations and intentions with respect to future earnings and operations of the Martinez refinery and/or its West Coast operations, including the renewable fuels project; the company's plans for financing the proposed acquisition; and the conditions to the closing of the proposed acquisition and the possibility that the proposed acquisition will not close. 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-intention-to-offer-1-billion-of-senior-notes-300987447.html
SOURCE PBF Energy Inc.
Article Date
1/15/202012/30/2019 - Lawrence M. Ziemba Elected as Independent Director
Lawrence M. Ziemba Elected as Independent Director
Source: PR Newswire
PARSIPPANY, N.J., Dec. 30, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") today announced that Lawrence M. Ziemba has been elected as an independent director of PBF Logistics GP LLC, the general partner of the Partnership, effective December 31, 2019.
Thomas J. Nimbley, Chairman of the Board and Chief Executive Officer, commented, "We are very pleased to have Larry join the Board of Directors of PBF Logistics GP LLC. Larry has extensive industry experience and will be a significant contributor to the Board."
Mr. Ziemba most recently served as Executive VP, Refining and a member of the Executive Committee of Phillips 66. He held this position following the separation of Phillips 66 from ConocoPhillips in May 2012. During his career, he held various positions in downstream for ConocoPhillips, Phillips Petroleum, Tosco, and Unocal. Originally from Chicago, he started his career in 1977 with Unocal.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets, the possibility that the Partnership may not consummate any pending acquisitions, the Partnership's plans for financing any pending acquisitions, and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/lawrence-m-ziemba-elected-as-independent-director-300979558.html
SOURCE PBF Logistics LP
Article Date
12/30/2019PBF Energy to Participate in the Mizuho Securities Virtual Refining Conference
Source: PR Newswire
PARSIPPANY, N.J., Dec. 30, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) announced today that the company's management will be participating in the Mizuho Securities Virtual Refining Conference being held on January 6, 2020.
Any company presentation materials will be made available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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-to-participate-in-the-mizuho-securities-virtual-refining-conference-300975554.html
SOURCE PBF Energy Inc.
Article Date
12/30/2019PBF Energy to Participate in the Goldman Sachs Global Energy Conference
Source: PR Newswire
PARSIPPANY, N.J., Dec. 30, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be participating in the Goldman Sachs Global Energy Conference being held on January 6-7, 2020.
Any company presentation materials will be made available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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-to-participate-in-the-goldman-sachs-global-energy-conference-300974975.html
SOURCE PBF Energy Inc.
Article Date
12/30/2019PBF Logistics to Release Fourth Quarter 2019 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., Dec. 11, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that it will release its earnings results for the fourth quarter 2019 on Thursday, February 13, 2020. The company will host a conference call and webcast regarding quarterly results and other business matters on Thursday, February 13, 2020, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (877) 830-2590 or (785) 424-1737, conference ID: PBFXQ419. The audio replay will be available two hours after the end of the call through February 27, 2020, by dialing (800) 723-0544 or (402) 220-2656.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-release-fourth-quarter-2019-earnings-results-300973608.html
SOURCE PBF Logistics LP
Article Date
12/11/2019PBF Energy to Release Fourth Quarter 2019 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., Dec. 11, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that it will release its earnings results for the fourth quarter 2019 on Thursday, February 13, 2020. The company will host a conference call and webcast regarding quarterly results and other business matters on Thursday, February 13, 2020, 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) 518-6930 or (203) 518-9797, conference ID: PBFQ419. The audio replay will be available two hours after the end of the call through February 27, 2020, by dialing (800) 723-0528 or (402) 220-2654.
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-to-release-fourth-quarter-2019-earnings-results-300973607.html
SOURCE PBF Energy Inc.
Article Date
12/11/2019PBF Logistics to attend Wells Fargo Midstream and Utility Symposium
Source: PR Newswire
PARSIPPANY, N.J., Dec. 10, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that the partnership's management will be participating in the 18th Annual Wells Fargo Midstream and Utility Symposium on December 12, 2019.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-attend-wells-fargo-midstream-and-utility-symposium-300972608.html
SOURCE PBF Logistics LP
Article Date
12/10/2019PBF Energy Announces Election of Karen B. Davis as Director
Source: PR Newswire
PARSIPPANY, N.J., Dec. 5, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced that Karen B. Davis has been elected as an independent director effective January 1, 2020.
Thomas J. Nimbley, Chairman of the Board and CEO, commented, "We are very pleased to have Karen join the PBF Energy Board of Directors. She is a seasoned financial executive, with extensive refining industry experience and will be a great addition to the Board."
Ms. Davis most recently served as Executive Vice President and Chief Financial Officer of Western Refining, Inc. and its affiliated entities, Western Refining Logistics LP and Northern Tier Energy, LP, through May 2017. During her career, Ms. Davis has served in various chief financial officer and financial reporting officer positions with various public and private companies throughout the United States. She is presently a director of PBF Logistics LP, where she is a member of the Audit and the Conflicts Committees.
Forward-Looking Statements
This press release includes certain statements that may constitute forward-looking statements. Such forward-looking statements are subject to the general risks inherent in our business and are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. Our expectations may or may not be realized or may be based upon assumptions or judgments that prove to be incorrect. Additional information relating to the uncertainties and other factors that can affect our business and future results are discussed in the "Risk Factors" section or other sections in our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by us from time to time with the Securities and Exchange Commission. The forward-looking statements are only as of the date made, and we undertake no obligation to (and expressly disclaim any obligation to) update or revise any forward-looking statement to reflect new information or events, other than as required by 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-election-of-karen-b-davis-as-director-300970313.html
SOURCE PBF Energy Inc.
Article Date
12/5/2019PBF Energy Reports Third Quarter 2019 Results, Declares Dividend of $0.30 Per Share
Source: PR Newswire
PARSIPPANY, N.J., Oct. 31, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today reported third quarter 2019 income from operations of $151.9 million as compared to income from operations of $286.3 million for the third quarter of 2018. Excluding special items, third quarter 2019 income from operations was $165.8 million as compared to income from operations of $232.3 million for the third 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 third quarter 2019 net income of $86.3 million and net income attributable to PBF Energy Inc. of $69.5 million or $0.57 per share. This compares to net income of $192.5 million, and net income attributable to PBF Energy Inc. of $179.6 million or $1.50 per share for the third quarter 2018. Special items included in the third quarter 2019 results, which decreased net income by a net, after-tax loss of $10.2 million, or $0.09 per share, consisted of a lower-of-cost-or-market ("LCM") inventory adjustment and a gain on land sale at our Torrance refinery. Adjusted fully-converted net income for the third quarter 2019, excluding special items, was $80.1 million, or $0.66 per share on a fully-exchanged, fully-diluted basis, as described below, compared to adjusted fully-converted net income of $135.6 million or $1.13 per share, for the third quarter 2018.
Tom Nimbley, PBF Energy's Chairman and CEO, said, "PBF's strong results and operating cash flow in the third quarter reflects the benefit of our strategic decision to front-load our maintenance activity during the first half of 2019. All of our refineries operated well and we generated solid financial results despite a volatile market." Mr. Nimbley continued, "We have had a good start to the fourth quarter and I am excited to announce that our second Chalmette coker is in the start-up process and the project was completed on time and on budget. We continue to progress towards the closing of the Martinez refinery acquisition and are looking forward to 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.
The Martinez transaction is expected to close in the first quarter of 2020, subject to customary closing conditions and regulatory approvals.
PBF Energy Inc. Declares Dividend
The company announced today that it will pay a quarterly dividend of $0.30 per share of Class A common stock on November 26, 2019, to holders of record at the close of business on November 14, 2019.
Outlook
For the fourth quarter 2019, we expect East Coast total throughput to average 340,000 to 360,000 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 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.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to Non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income, Adjusted Fully-Converted Net Income excluding special items, Adjusted Fully-Converted Net Income 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, October 31, 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: PBFQ319. The audio replay will be available two hours after the end of the call through November 14, 2019, by dialing (800) 723-0607 or (402) 220-2658.
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 | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2019 | 2018 | 2019 | 2018 | |||||||
Revenues | $ 6,430.5 | $ 7,646.3 | $ 18,206.7 | $ 20,893.2 | ||||||
Cost and expenses: | ||||||||||
Cost of products and other | 5,700.2 | 6,816.1 | 15,865.2 | 18,400.7 | ||||||
Operating expenses (excluding depreciation | 436.5 | 424.4 | 1,348.7 | 1,268.2 | ||||||
Depreciation and amortization expense | 107.7 | 90.8 | 314.9 | 263.8 | ||||||
Cost of sales | 6,244.4 | 7,331.3 | 17,528.8 | 19,932.7 | ||||||
General and administrative expenses (excluding | 64.7 | 69.9 | 175.9 | 191.4 | ||||||
Depreciation and amortization expense | 2.1 | 2.6 | 7.8 | 7.9 | ||||||
Gain on sale of assets | (32.6) | (43.8) | (31.8) | (43.1) | ||||||
Total cost and expenses | 6,278.6 | 7,360.0 | 17,680.7 | 20,088.9 | ||||||
Income from operations | 151.9 | 286.3 | 526.0 | 804.3 | ||||||
Other income (expense): | ||||||||||
Change in Tax Receivable Agreement liability | — | 7.8 | — | 7.8 | ||||||
Change in fair value of catalyst leases | (3.8) | 1.7 | (6.4) | 5.8 | ||||||
Interest expense, net | (39.7) | (42.3) | (121.3) | (128.9) | ||||||
Other non-service components of net periodic benefit | (0.1) | 0.3 | (0.2) | 0.8 | ||||||
Income before income taxes | 108.3 | 253.8 | 398.1 | 689.8 | ||||||
Income tax expense | 22.0 | 61.3 | 92.0 | 167.8 | ||||||
Net income | 86.3 | 192.5 | 306.1 | 522.0 | ||||||
Less: net income attributable to noncontrolling interests | 16.8 | 12.9 | 39.7 | 39.9 | ||||||
Net income attributable to PBF Energy Inc. stockholders | $ 69.5 | $ 179.6 | $ 266.4 | $ 482.1 | ||||||
Net income available to Class A common stock per share: | ||||||||||
Basic | $ 0.58 | $ 1.53 | $ 2.22 | $ 4.24 | ||||||
Diluted | $ 0.57 | $ 1.50 | $ 2.20 | $ 4.16 | ||||||
Weighted-average shares outstanding-basic | 119,921,346 | 117,029,486 | 119,897,504 | 113,597,970 | ||||||
Weighted-average shares outstanding-diluted | 121,589,179 | 120,405,315 | 121,871,864 | 117,375,170 | ||||||
Dividends per common share | $ 0.30 | $ 0.30 | $ 0.90 | $ 0.90 | ||||||
Adjusted fully-converted net income and adjusted fully- | ||||||||||
Adjusted fully-converted net income | $ 69.9 | $ 181.1 | $ 268.7 | $ 488.7 | ||||||
Adjusted fully-converted net income per fully | $ 0.57 | $ 1.50 | $ 2.20 | $ 4.16 | ||||||
Adjusted fully-converted shares outstanding - diluted | 121,589,179 | 120,405,315 | 121,871,864 | 117,375,170 | ||||||
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 TO | Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Net income attributable to PBF Energy Inc. | $ | 69.5 | $ | 179.6 | $ | 266.4 | $ | 482.1 | ||||||||||||||
Less: | Income allocated to participating securities | 0.2 | 0.2 | 0.4 | 0.6 | |||||||||||||||||
Income available to PBF Energy Inc. stockholders - | 69.3 | 179.4 | 266.0 | 481.5 | ||||||||||||||||||
Add: | Net income attributable to noncontrolling | 0.9 | 2.4 | 3.6 | 9.8 | |||||||||||||||||
Less: | Income tax expense (Note 3) | (0.3) | (0.7) | (0.9) | (2.6) | |||||||||||||||||
Adjusted fully-converted net income | $ | 69.9 | $ | 181.1 | $ | 268.7 | $ | 488.7 | ||||||||||||||
Special Items (Note 4): | ||||||||||||||||||||||
Add: | Non-cash LCM inventory adjustment | 47.0 | (54.8) | (277.0) | (300.5) | |||||||||||||||||
Add: | Change in Tax Receivable Agreement liability | — | (7.8) | — | (7.8) | |||||||||||||||||
Add: | Gain on Torrance land sale | (33.1) | (43.8) | (33.1) | (43.8) | |||||||||||||||||
Add: | Early railcar return expense | — | 44.6 | — | 44.6 | |||||||||||||||||
Less: | Recomputed income taxes on special items (Note | (3.7) | 16.3 | 82.0 | 81.2 | |||||||||||||||||
Adjusted fully-converted net income excluding special | $ | 80.1 | $ | 135.6 | $ | 40.6 | $ | 262.4 | ||||||||||||||
Weighted-average shares outstanding of PBF Energy | 119,921,346 | 117,029,486 | 119,897,504 | 113,597,970 | ||||||||||||||||||
Conversion of PBF LLC Series A Units (Note 5) | 1,206,325 | 1,206,326 | 1,206,325 | 2,184,690 | ||||||||||||||||||
Common stock equivalents (Note 6) | 461,508 | 2,169,503 | 768,035 | 1,592,510 | ||||||||||||||||||
Fully-converted shares outstanding - diluted | 121,589,179 | 120,405,315 | 121,871,864 | 117,375,170 | ||||||||||||||||||
Adjusted fully-converted net income per fully | $ | 0.57 | $ | 1.50 | $ | 2.20 | $ | 4.16 | ||||||||||||||
Adjusted fully-converted net income excluding special | $ | 0.66 | $ | 1.13 | $ | 0.33 | $ | 2.24 | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
RECONCILIATION OF INCOME FROM | September 30, | September 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Income from operations | $ | 151.9 | $ | 286.3 | $ | 526.0 | $ | 804.3 | ||||||||||||||
Special Items (Note 4): | ||||||||||||||||||||||
Add: | Non-cash LCM inventory adjustment | 47.0 | (54.8) | (277.0) | (300.5) | |||||||||||||||||
Add: | Gain on Torrance land sale | (33.1) | (43.8) | (33.1) | (43.8) | |||||||||||||||||
Add: | Early railcar return expense | — | 44.6 | — | 44.6 | |||||||||||||||||
Income from operations excluding special items | $ | 165.8 | $ | 232.3 | $ | 215.9 | $ | 504.6 | ||||||||||||||
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 | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
RECONCILIATION OF NET INCOME TO EBITDA | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
Net income | $ | 86.3 | $ | 192.5 | $ | 306.1 | $ | 522.0 | ||||||||||||||
Add: Depreciation and amortization expense | 109.8 | 93.4 | 322.7 | 271.7 | ||||||||||||||||||
Add: Interest expense, net | 39.7 | 42.3 | 121.3 | 128.9 | ||||||||||||||||||
Add: Income tax expense | 22.0 | 61.3 | 92.0 | 167.8 | ||||||||||||||||||
EBITDA | $ | 257.8 | $ | 389.5 | $ | 842.1 | $ | 1,090.4 | ||||||||||||||
Special Items (Note 4): | ||||||||||||||||||||||
Add: Non-cash LCM inventory adjustment | 47.0 | (54.8) | (277.0) | (300.5) | ||||||||||||||||||
Add: Change in Tax Receivable Agreement liability | — | (7.8) | — | (7.8) | ||||||||||||||||||
Add: Gain on Torrance land sale | (33.1) | (43.8) | (33.1) | (43.8) | ||||||||||||||||||
Add: Early railcar return expense | — | 44.6 | — | 44.6 | ||||||||||||||||||
EBITDA excluding special items | $ | 271.7 | $ | 327.7 | $ | 532.0 | $ | 782.9 | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
RECONCILIATION OF EBITDA TO ADJUSTED | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||
EBITDA | $ | 257.8 | $ | 389.5 | $ | 842.1 | $ | 1,090.4 | ||||||||||||||
Add: Stock-based compensation | 8.4 | 5.6 | 28.4 | 18.6 | ||||||||||||||||||
Add: Net non-cash change in fair value of catalyst leases | 3.8 | (1.7) | 6.4 | (5.8) | ||||||||||||||||||
Add: Non-cash LCM inventory adjustment (Note 4) | 47.0 | (54.8) | (277.0) | (300.5) | ||||||||||||||||||
Add: Change in Tax Receivable Agreement liability | — | (7.8) | — | (7.8) | ||||||||||||||||||
Adjusted EBITDA | $ | 317.0 | $ | 330.8 | $ | 599.9 | $ | 794.9 | ||||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||
EARNINGS RELEASE TABLES | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||||||||
(Unaudited, in millions) | |||||||||||
September 30, | December 31, | ||||||||||
2019 | 2018 | ||||||||||
Balance Sheet Data: | |||||||||||
Cash and cash equivalents | $ | 536.3 | $ | 597.3 | |||||||
Inventories | 2,130.4 | 1,865.8 | |||||||||
Total assets | 8,917.4 | 8,005.4 | |||||||||
Total debt | 2,064.3 | 1,933.7 | |||||||||
Total equity | 3,554.3 | 3,248.5 | |||||||||
Total equity excluding special items (Note 4, 13) | $ | 3,629.4 | $ | 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) | 30 | % | 29 | % | |||||||
Net debt to capitalization ratio, excluding special items (Note 13) | 30 | % | 27 | % | |||||||
SUMMARIZED STATEMENT OF CASH FLOW DATA | |||||||||||
(Unaudited, in millions) | |||||||||||
Nine Months Ended September | |||||||||||
2019 | 2018 | ||||||||||
Cash flows provided by operating activities | $ | 432.2 | $ | 720.2 | |||||||
Cash flows used in investing activities | (593.5) | (419.8) | |||||||||
Cash flows provided by financing activities | 100.3 | 185.8 | |||||||||
Net increase (decrease) in cash and cash equivalents | (61.0) | 486.2 | |||||||||
Cash and cash equivalents, beginning of period | 597.3 | 573.0 | |||||||||
Cash and cash equivalents, end of period | $ | 536.3 | $ | 1,059.2 | |||||||
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 September 30, 2019 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Revenues | $ 6,422.1 | $ 86.4 | $ — | $ (78.0) | $ 6,430.5 | ||||
Depreciation and amortization expense | 98.7 | 9.0 | 2.1 | — | 109.8 | ||||
Income (loss) from operations | 169.8 | 44.4 | (62.3) | — | 151.9 | ||||
Interest expense, net | (0.7) | 13.4 | 27.0 | — | 39.7 | ||||
Capital expenditures | 117.2 | 8.0 | 2.7 | — | 127.9 | ||||
Three Months Ended September 30, 2018 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Revenues | $ 7,641.9 | $ 70.6 | $ — | $ (66.2) | $ 7,646.3 | ||||
Depreciation and amortization expense | 83.3 | 7.5 | 2.6 | — | 93.4 | ||||
Income (loss) from operations (Note 15) | 321.3 | 37.6 | (67.9) | (4.7) | 286.3 | ||||
Interest expense, net | 2.1 | 10.5 | 29.7 | — | 42.3 | ||||
Capital expenditures | 79.8 | 20.9 | 2.2 | — | 102.9 | ||||
Nine Months Ended September 30, 2019 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Revenues | $ 18,182.7 | $ 248.0 | $ — | $ (224.0) | $ 18,206.7 | ||||
Depreciation and amortization expense | 288.3 | 26.6 | 7.8 | — | 322.7 | ||||
Income (loss) from operations (Note 14, 15) | 583.0 | 116.4 | (165.5) | (7.9) | 526.0 | ||||
Interest expense, net | 0.7 | 38.0 | 82.6 | — | 121.3 | ||||
Capital expenditures | 600.2 | 23.2 | 6.4 | — | 629.8 | ||||
Nine Months Ended September 30, 2018 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Revenues | $ 20,880.6 | $ 203.4 | $ — | $ (190.8) | $ 20,893.2 | ||||
Depreciation and amortization expense | 242.6 | 21.2 | 7.9 | — | 271.7 | ||||
Income (loss) from operations (Note 15) | 895.9 | 105.3 | (183.8) | (13.1) | 804.3 | ||||
Interest expense, net | 6.5 | 30.9 | 91.5 | — | 128.9 | ||||
Capital expenditures (Note 17) | 376.8 | 86.6 | 4.7 | — | 468.1 | ||||
Balance at September 30, 2019 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Total Assets (Note 14) | $ 7,921.4 | $ 1,010.3 | $ 52.1 | $ (66.4) | $ 8,917.4 | ||||
Balance at December 31, 2018 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
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 | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
Market Indicators (dollars per barrel) (Note 9) | 2019 | 2018 | 2019 | 2018 | ||||||||
Dated Brent crude oil | $ 61.86 | $ 75.07 | $ 64.71 | $ 72.19 | ||||||||
West Texas Intermediate (WTI) crude oil | $ 56.40 | $ 69.63 | $ 57.08 | $ 66.90 | ||||||||
Light Louisiana Sweet (LLS) crude oil | $ 60.60 | $ 74.15 | $ 63.35 | $ 71.11 | ||||||||
Alaska North Slope (ANS) crude oil | $ 62.98 | $ 75.26 | $ 65.23 | $ 72.19 | ||||||||
Crack Spreads: | ||||||||||||
Dated Brent (NYH) 2-1-1 | $ 14.72 | $ 14.62 | $ 12.73 | $ 14.15 | ||||||||
WTI (Chicago) 4-3-1 | $ 16.51 | $ 18.05 | $ 16.69 | $ 15.84 | ||||||||
LLS (Gulf Coast) 2-1-1 | $ 14.32 | $ 13.38 | $ 12.32 | $ 13.26 | ||||||||
ANS (West Coast) 4-3-1 | $ 18.81 | $ 14.84 | $ 18.49 | $ 16.67 | ||||||||
Crude Oil Differentials: | ||||||||||||
Dated Brent (foreign) less WTI | $ 5.46 | $ 5.44 | $ 7.63 | $ 5.29 | ||||||||
Dated Brent less Maya (heavy, sour) | $ 6.36 | $ 9.12 | $ 5.58 | $ 10.21 | ||||||||
Dated Brent less WTS (sour) | $ 6.01 | $ 19.79 | $ 8.76 | $ 13.41 | ||||||||
Dated Brent less ASCI (sour) | $ 2.98 | $ 4.42 | $ 3.11 | $ 4.69 | ||||||||
WTI less WCS (heavy, sour) | $ 12.79 | $ 29.30 | $ 11.78 | $ 24.55 | ||||||||
WTI less Bakken (light, sweet) | $ 0.74 | $ 1.08 | $ 0.53 | $ 0.87 | ||||||||
WTI less Syncrude (light, sweet) | $ (0.89) | $ 5.59 | $ (0.30) | $ 3.00 | ||||||||
WTI less LLS (light, sweet) | $ (4.20) | $ (4.52) | $ (6.27) | $ (4.21) | ||||||||
WTI less ANS (light, sweet) | $ (6.58) | $ (5.63) | $ (8.15) | $ (5.29) | ||||||||
Natural gas (dollars per MMBTU) | $ 2.33 | $ 2.86 | $ 2.56 | $ 2.85 | ||||||||
Key Operating Information | ||||||||||||
Production (barrels per day ("bpd") in thousands) | 863.0 | 896.7 | 817.9 | 854.0 | ||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 850.9 | 888.4 | 816.4 | 851.8 | ||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 78.3 | 81.7 | 222.9 | 232.5 | ||||||||
Consolidated gross margin per barrel of throughput | $ 2.38 | $ 3.86 | $ 3.04 | $ 4.13 | ||||||||
Gross refining margin, excluding special items, per barrel of | $ 8.87 | $ 9.25 | $ 8.21 | $ 8.80 | ||||||||
Refinery operating expense, per barrel of throughput (Note | $ 5.26 | $ 5.01 | $ 5.72 | $ 5.26 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12) | ||||||||||||
Heavy | 32 % | 35 % | 31 % | 36 % | ||||||||
Medium | 30 % | 28 % | 30 % | 30 % | ||||||||
Light | 25 % | 23 % | 25 % | 21 % | ||||||||
Other feedstocks and blends | 13 % | 14 % | 14 % | 13 % | ||||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | ||||||||
Yield (% of total throughput) | ||||||||||||
Gasoline and gasoline blendstocks | 50 % | 49 % | 48 % | 49 % | ||||||||
Distillates and distillate blendstocks | 33 % | 32 % | 32 % | 32 % | ||||||||
Lubes | 1 % | 1 % | 1 % | 1 % | ||||||||
Chemicals | 2 % | 2 % | 2 % | 2 % | ||||||||
Other | 15 % | 17 % | 17 % | 16 % | ||||||||
Total yield | 101 % | 101 % | 100 % | 100 % | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Supplemental Operating Information - East Coast | ||||||||||||
Production (bpd in thousands) | 354.7 | 351.0 | 323.7 | 345.0 | ||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 357.2 | 354.6 | 329.5 | 349.2 | ||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 32.9 | 32.6 | 90.0 | 95.3 | ||||||||
Gross margin per barrel of throughput | $ (0.25) | $ 7.22 | $ (0.91) | $ 4.02 | ||||||||
Gross refining margin, excluding special items, per barrel of | $ 7.32 | $ 7.52 | $ 5.08 | $ 7.07 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ 4.20 | $ 4.15 | $ 5.09 | $ 4.53 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 21 % | 30 % | 21 % | 28 % | ||||||||
Medium | 41 % | 41 % | 44 % | 47 % | ||||||||
Light | 22 % | 9 % | 16 % | 8 % | ||||||||
Other feedstocks and blends | 16 % | 20 % | 19 % | 17 % | ||||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 45 % | 45 % | 44 % | 46 % | ||||||||
Distillates and distillate blendstocks | 36 % | 33 % | 32 % | 33 % | ||||||||
Lubes | 2 % | 2 % | 2 % | 2 % | ||||||||
Chemicals | 1 % | 1 % | 1 % | 1 % | ||||||||
Other | 15 % | 18 % | 19 % | 17 % | ||||||||
Total yield | 99 % | 99 % | 98 % | 99 % | ||||||||
Supplemental Operating Information - Mid-Continent | ||||||||||||
Production (bpd in thousands) | 153.6 | 175.5 | 156.6 | 151.0 | ||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 151.1 | 172.1 | 154.1 | 149.5 | ||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 13.9 | 15.8 | 42.1 | 40.8 | ||||||||
Gross margin per barrel of throughput | $ 4.39 | $ 17.56 | $ 8.32 | $ 10.12 | ||||||||
Gross refining margin, excluding special items, per barrel of | $ 12.24 | $ 14.11 | $ 13.18 | $ 12.01 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ 4.98 | $ 4.39 | $ 5.10 | $ 5.06 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Medium | 32 % | 27 % | 30 % | 32 % | ||||||||
Light | 67 % | 71 % | 69 % | 66 % | ||||||||
Other feedstocks and blends | 1 % | 2 % | 1 % | 2 % | ||||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 52 % | 53 % | 51 % | 54 % | ||||||||
Distillates and distillate blendstocks | 34 % | 35 % | 36 % | 34 % | ||||||||
Chemicals | 6 % | 5 % | 6 % | 5 % | ||||||||
Other | 10 % | 9 % | 9 % | 8 % | ||||||||
Total yield | 102 % | 102 % | 102 % | 101 % | ||||||||
Supplemental Operating Information - Gulf Coast | ||||||||||||
Production (bpd in thousands) | 182.9 | 198.3 | 182.4 | 185.8 | ||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 178.0 | 195.5 | 181.4 | 184.4 | ||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 16.4 | 18.0 | 49.5 | 50.4 | ||||||||
Gross margin per barrel of throughput | $ 0.69 | $ (6.36) | $ 0.98 | $ (0.45) | ||||||||
Gross refining margin, excluding special items, per barrel of | $ 8.30 | $ 7.21 | $ 5.82 | $ 6.62 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ 4.81 | $ 4.36 | $ 4.89 | $ 4.66 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 37 % | 35 % | 34 % | 39 % | ||||||||
Medium | 25 % | 26 % | 22 % | 20 % | ||||||||
Light | 18 % | 23 % | 27 % | 28 % | ||||||||
Other feedstocks and blends | 20 % | 16 % | 17 % | 13 % | ||||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 47 % | 42 % | 45 % | 42 % | ||||||||
Distillates and distillate blendstocks | 33 % | 33 % | 33 % | 33 % | ||||||||
Chemicals | 1 % | 1 % | 2 % | 1 % | ||||||||
Other | 22 % | 25 % | 21 % | 24 % | ||||||||
Total yield | 103 % | 101 % | 101 % | 100 % | ||||||||
Supplemental Operating Information - West Coast | ||||||||||||
Production (bpd in thousands) | 171.8 | 171.9 | 155.2 | 172.2 | ||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 164.6 | 166.2 | 151.4 | 168.7 | ||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 15.1 | 15.3 | 41.3 | 46.0 | ||||||||
Gross margin per barrel of throughput | $ 4.82 | $ (8.27) | $ 5.48 | $ 1.38 | ||||||||
Gross refining margin, excluding special items, per barrel of | $ 9.77 | $ 10.28 | $ 12.83 | $ 11.96 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ 8.30 | $ 8.26 | $ 8.71 | $ 7.61 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 81 % | 85 % | 81 % | 82 % | ||||||||
Medium | 7 % | 6 % | 7 % | 6 % | ||||||||
Other feedstocks and blends | 12 % | 9 % | 12 % | 12 % | ||||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 61 % | 60 % | 59 % | 59 % | ||||||||
Distillates and distillate blendstocks | 26 % | 27 % | 26 % | 27 % | ||||||||
Other | 17 % | 16 % | 18 % | 16 % | ||||||||
Total yield | 104 % | 103 % | 103 % | 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 | |||||||||||||
September 30, 2019 | September 30, 2018 | |||||||||||||
RECONCILIATION OF CONSOLIDATED GROSS | $ | per barrel | $ | per barrel | ||||||||||
Calculation of consolidated gross margin: | ||||||||||||||
Revenues | $ 6,430.5 | $ 82.15 | $ 7,646.3 | $ 93.56 | ||||||||||
Less: Cost of sales | 6,244.4 | 79.77 | 7,331.3 | 89.70 | ||||||||||
Consolidated gross margin | $ 186.1 | $ 2.38 | $ 315.0 | $ 3.86 | ||||||||||
Reconciliation of consolidated gross margin to gross | ||||||||||||||
Consolidated gross margin | $ 186.1 | $ 2.38 | $ 315.0 | $ 3.86 | ||||||||||
Add: PBFX operating expense | 28.4 | 0.36 | 20.3 | 0.25 | ||||||||||
Add: PBFX depreciation expense | 9.0 | 0.11 | 7.4 | 0.09 | ||||||||||
Less: Revenues of PBFX | (86.4) | (1.10) | (70.0) | (0.86) | ||||||||||
Add: Refinery operating expense | 411.8 | 5.26 | 409.7 | 5.01 | ||||||||||
Add: Refinery depreciation expense | 98.7 | 1.26 | 83.4 | 1.02 | ||||||||||
Gross refining margin | $ 647.6 | $ 8.27 | $ 765.8 | $ 9.37 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | 47.0 | 0.60 | (54.8) | (0.67) | ||||||||||
Add: Early railcar return expense | — | — | 44.6 | 0.55 | ||||||||||
Gross refining margin excluding special items | $ 694.6 | $ 8.87 | $ 755.6 | $ 9.25 | ||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||
September 30, 2019 | September 30, 2018 | |||||||||||||
RECONCILIATION OF CONSOLIDATED GROSS | $ | per barrel | $ | per barrel | ||||||||||
Calculation of consolidated gross margin: | ||||||||||||||
Revenues | $ 18,206.7 | $ 81.69 | $ 20,893.2 | $ 89.84 | ||||||||||
Less: Cost of sales | 17,528.8 | 78.65 | 19,932.7 | 85.71 | ||||||||||
Consolidated gross margin | $ 677.9 | $ 3.04 | $ 960.5 | $ 4.13 | ||||||||||
Reconciliation of consolidated gross margin to gross | ||||||||||||||
Consolidated gross margin | $ 677.9 | $ 3.04 | $ 960.5 | $ 4.13 | ||||||||||
Add: PBFX operating expense | 86.9 | 0.39 | 57.4 | 0.25 | ||||||||||
Add: PBFX depreciation expense | 26.6 | 0.12 | 20.8 | 0.09 | ||||||||||
Less: Revenues of PBFX | (248.0) | (1.11) | (201.4) | (0.87) | ||||||||||
Add: Refinery operating expense | 1,274.9 | 5.72 | 1,223.8 | 5.26 | ||||||||||
Add: Refinery depreciation expense | 288.3 | 1.29 | 243.0 | 1.04 | ||||||||||
Gross refining margin | $ 2,106.6 | $ 9.45 | $ 2,304.1 | $ 9.90 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | (277.0) | (1.24) | (300.5) | (1.29) | ||||||||||
Add: Early railcar return expense | — | — | 44.6 | 0.19 | ||||||||||
Gross refining margin excluding special items | $ 1,829.6 | $ 8.21 | $ 2,048.2 | $ 8.80 | ||||||||||
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. | |||||||||
(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 PBF Energy's 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 interest for all periods presented. The adjustment assumes the full exchange of existing PBF LLC Series A Units as described in footnote 2. | |||||||||
(4) The Non-GAAP measures presented include adjusted fully-converted net income excluding special items, income from operations excluding special items, EBITDA excluding special items and gross refining margin excluding special items. Special items presented for the three and nine months ended September 30, 2019 relate to a lower of cost or market ("LCM") inventory adjustment and gain on sale of assets related to the Torrance land sale. Special items presented for the three and nine months ended September 30, 2018 relate to a lower of cost or market ("LCM") inventory adjustment, gain on sale of assets related to the Torrance land sale, changes in the Tax Receivable Agreement liability and charges associated with the early return of certain leased railcars, all as discussed further below. Additionally, the cumulative effects of all prior period special items on equity are shown in footnote 13. | |||||||||
The following table includes the LCM inventory reserve as of each date presented (in millions): | |||||||||
2019 | 2018 | ||||||||
January 1, | $ 651.8 | $ 300.5 | |||||||
June 30, | 327.8 | 54.8 | |||||||
September 30, | 374.8 | — | |||||||
The following table includes the corresponding impact of changes in the LCM inventory reserve on income from operations and net income for the periods presented (in millions): | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
2019 | 2018 | 2019 | 2018 | ||||||
Net LCM inventory adjustment (charge) | $ (47.0) | $ 54.8 | $ 277.0 | $ 300.5 | |||||
Net LCM inventory adjustment (charge) benefit in net income | (34.6) | 40.3 | 203.7 | 221.1 | |||||
Gain on Torrance land sale- During the three and nine months ended September 30, 2019 and 2018, respectively, we recorded gains on the sale of two separate parcels of real property acquired as part of the Torrance refinery, but not part of the refinery itself. The gain increased income from operations and net income by $33.1 million and $24.3 million, respectively, during the three and nine months ended September 30, 2019. The gain increased income from operations and net income by $43.8 million and $32.2 million, respectively, during the same periods in 2018. | |||||||||
Change in Tax Receivable Agreement liability - During the three and nine months ended September 30, 2018 we recorded a change in the Tax Receivable Agreement liability that increased income before income taxes and net income by $7.8 million and $5.7 million, respectively. The changes in the Tax Receivable Agreement liability reflect charges or benefits attributable to changes in our obligation under the Tax Receivable Agreement due to factors out of our control such as changes in tax rates. There was no change in the Tax Receivable Agreement liability during the three and nine months ended September 30, 2019. | |||||||||
Early Return of Railcars- During the three and nine months ended September 30, 2018 we recognized certain expenses within Cost of sales associated with the voluntary early return of certain leased railcars. These charges decreased income from operations and net income by $44.6 million and $32.8 million, respectively. There were no such expenses in the same periods of 2019. | |||||||||
(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 nine months ended September 30, 2019 and 2018, respectively. Common stock equivalents exclude the effects of options, warrants and performance share units to purchase 7,739,275 and 6,003,867 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three and nine months ended September 30, 2019, respectively. Common stock equivalents exclude the effects of options and warrants to purchase 15,000 and 25,000 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three and nine months ended September 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 September 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. | |||||||||
(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. | |||||||||
September 30, | December 31, | ||||||||
2019 | 2018 | ||||||||
(in millions) | |||||||||
Total debt | $ 2,064.3 | $ 1,933.7 | |||||||
Total equity | 3,554.3 | 3,248.5 | |||||||
Total capitalization | $ 5,618.6 | $ 5,182.2 | |||||||
Total debt | $ 2,064.3 | $ 1,933.7 | |||||||
Total equity excluding special items | 3,629.4 | 3,551.7 | |||||||
Total capitalization excluding special items | $ 5,693.7 | $ 5,485.4 | |||||||
Total equity | $ 3,554.3 | $ 3,248.5 | |||||||
Special Items (Note 4) | |||||||||
Add: Non-cash LCM inventory adjustment | 374.8 | 651.8 | |||||||
Add: Gain on Torrance land sale | (76.9) | (43.8) | |||||||
Add: Change in Tax Receivable Agreement liability | (290.4) | (290.4) | |||||||
Add: Debt extinguishment costs | 25.5 | 25.5 | |||||||
Add: Early railcar return expense | 52.3 | 52.3 | |||||||
Less: Recomputed income taxes on special items | (30.4) | (112.4) | |||||||
Add: Net tax expense on TCJA related special items | 20.2 | 20.2 | |||||||
Net impact of special items to equity | 75.1 | 303.2 | |||||||
Total equity excluding special items | $ 3,629.4 | $ 3,551.7 | |||||||
Total debt | $ 2,064.3 | $ 1,933.7 | |||||||
Less: Cash and cash equivalents | 536.3 | 597.3 | |||||||
Net Debt | $ 1,528.0 | $ 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 | 30 % | 29 % | |||||||
Net debt to capitalization ratio, excluding special items | 30 % | 27 % | |||||||
(14) On April 24, 2019, PBFX entered into a contribution agreement with PBF LLC (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. | |||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-energy-reports-third-quarter-2019-results-declares-dividend-of-0-30-per-share-300948836.html
SOURCE PBF Energy Inc.
Article Date
10/31/2019PBF Energy to Participate in the Barclays CEO Energy-Power Conference
Source: PR Newswire
PARSIPPANY, N.J., Aug. 30, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be attending the Barclays CEO Energy-Power Conference being held on September 3-5, 2019.
Any company presentation materials will be made available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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-to-participate-in-the-barclays-ceo-energy-power-conference-300909964.html
SOURCE PBF Energy Inc.
Article Date
8/30/2019Alerian Reports June 30, 2019 Index Linked Product Positions
Source: PR Newswire
DALLAS, Aug. 9, 2019 /PRNewswire/ -- Alerian reported, as of June 28, 2019, total products directly tied to and tracking the Alerian indices was $13.7 billion.
Exchange traded funds, exchange traded notes, return of capital notes, and variable insurance portfolios represent $12.7 billion of the total $13.7 billion. Below is a list of energy master limited partnership (MLP) positions, as of June 28, 2019, in the $12.7 billion of such assets tracking Alerian's indices.
Ticker | Exposure in Alerian Linked-Products ($) | Exposure in Alerian Linked-Products (Units) | Ticker | Exposure in Alerian Linked-Products ($) | Exposure in Alerian Linked-Products (Units) | |
AM | 2,402,831 | 209,671 | HESM | 7,694,422 | 394,586 | |
AMID | 4,919,211 | 951,492 | MMLP | 5,598,671 | 784,128 | |
ANDX | 403,075,523 | 11,094,840 | MMP | 1,276,581,260 | 19,946,582 | |
BPL | 782,332,474 | 19,058,038 | MPLX | 1,273,711,451 | 39,568,545 | |
BPMP | 18,205,543 | 1,176,069 | NBLX | 89,522,800 | 2,691,606 | |
CEQP | 220,495,699 | 6,164,263 | NGL | 214,053,630 | 14,492,460 | |
CNXM | 14,513,491 | 1,032,989 | NS | 331,580,260 | 12,217,401 | |
CQP | 214,074,794 | 5,075,268 | OMP | 5,663,726 | 263,429 | |
DCP | 329,731,673 | 11,253,641 | PAA | 1,305,749,277 | 53,624,200 | |
DKL | 6,791,101 | 212,222 | PAGP | 7,638,294 | 305,899 | |
ENBL | 153,164,680 | 11,171,749 | PBFX | 16,284,545 | 770,319 | |
ENLC | 327,210,823 | 32,429,219 | PSXP | 342,743,828 | 6,945,164 | |
EPD | 1,277,755,891 | 44,258,950 | SHLX | 319,209,192 | 15,405,849 | |
EQM | 462,044,829 | 10,341,200 | SMLP | 7,589,588 | 1,020,106 | |
ET | 1,262,122,882 | 89,639,409 | TCP | 253,540,259 | 6,739,507 | |
GEL | 298,090,775 | 13,611,451 | TGE | 419,509,147 | 19,872,532 | |
GPP | 3,882,098 | 277,293 | USDP | 3,861,679 | 342,044 | |
HEP | 156,422,759 | 5,688,100 | WES | 773,416,245 | 25,135,400 |
About Alerian
Alerian equips investors to make informed decisions about energy infrastructure and Master Limited Partnerships (MLPs). Its benchmarks are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of June 28, 2019, nearly $14 billion of products, including exchange traded funds and notes, are directly tied to and tracking the Alerian Index Series. Visit alerian.com to learn more.
View original content:http://www.prnewswire.com/news-releases/alerian-reports-june-30-2019-index-linked-product-positions-300899499.html
SOURCE Alerian
Article Date
8/9/2019PBF Energy Reports Second Quarter 2019 Results, Declares Dividend of $0.30 Per Share
Source: PR Newswire
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 | 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 | 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 | — | 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. | $ | (32.2) | $ | 272.1 | $ | 197.0 | $ | 302.5 | ||||||||||||
Net income (loss) available to Class A common stock per | ||||||||||||||||||||
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 | ||||||||||||||||||||
Adjusted fully-converted net income (loss) | $ | (32.7) | $ | 276.5 | $ | 198.8 | $ | 307.6 | ||||||||||||
Adjusted fully-converted net income (loss) per fully | $ | (0.27) | $ | 2.37 | $ | 1.63 | $ | 2.66 | ||||||||||||
Adjusted fully-converted shares outstanding - diluted | 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 | Three Months Ended | Six Months Ended | ||||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Net income (loss) attributable to PBF Energy Inc. | $ | (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. | (32.3) | 271.9 | 196.8 | 302.1 | ||||||||||||||||||
Add: | Net income (loss) attributable to noncontrolling | (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 | (48.2) | 41.7 | 85.7 | 64.9 | |||||||||||||||||
Adjusted fully-converted net income (loss) excluding | $ | 101.1 | $ | 160.2 | $ | (39.5) | $ | 126.8 | ||||||||||||||
Weighted-average shares outstanding of PBF Energy | 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 | $ | (0.27) | $ | 2.37 | $ | 1.63 | $ | 2.66 | ||||||||||||||
Adjusted fully-converted net income (loss) excluding | $ | 0.83 | $ | 1.38 | $ | (0.33) | $ | 1.10 | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||
RECONCILIATION OF INCOME FROM | 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 | 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 | 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 | (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 | $ | 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 | ||||||||||||||||||||
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 | $ | 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 | ||||||||||||||||||||
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 | $ | 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 | ||||||||||||||||||||
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 | $ | 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 | ||||||||||||||||||||
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 | $ | 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 | $ | per barrel of | $ | per barrel of | |||||||||||||||||
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 | |||||||||||||||||||||
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 | $ | per barrel of | $ | per barrel of | |||||||||||||||||
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 | |||||||||||||||||||||
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. | ||||||||||||||||||||||
(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. | ||||||||||||||||||||||
(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. | ||||||||||||||||||||||
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 | Six Months Ended | |||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
Net LCM inventory adjustment (charge) | $ | (182.0) | $ | 158.0 | $ | 324.0 | $ | 245.7 | ||||||||||||||
Net LCM inventory adjustment (charge) | (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. | ||||||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-energy-reports-second-quarter-2019-results-declares-dividend-of-0-30-per-share-300894697.html
SOURCE PBF Energy Inc.
Article Date
8/1/2019PBF Logistics Increases Quarterly Distribution to $0.5150 per Unit and Announces Second Quarter 2019 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., Aug. 1, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") today announced second quarter 2019 net income attributable to the limited partners of $22.2 million, or $0.37 per common unit. During the quarter, the Partnership generated cash from operations of approximately $17.7 million, earnings before interest, income taxes, depreciation, and amortization ("EBITDA") of $42.5 million, Adjusted EBITDA of $48.3 million and distributable cash flow of $34.1 million. Included in reported results for the second quarter are $5.8 million, or $0.10 per common unit, of expenses related to the Torrance Valley Pipeline Company acquisition, non-cash unit-based compensation and environmental remediation costs associated with the East Coast Terminals.
"During the second quarter, PBF Logistics' assets operated well and we are currently seeing increased demand at several of our East Coast terminaling and storage facilities. We successfully delivered incremental growth through the completion of the TVPC acquisition and remain committed to the Partnership's continued development by executing our three-pronged growth strategy," said PBF Logistics GP LLC Executive Vice President Matt Lucey. "Additionally, with the anticipated early start to our processing and storage agreement with Maersk, we are seeing the initial moves by market participants in preparation for the IMO fuel specification implementation on January 1, 2020."
As of June 30, 2019, the Partnership had approximately $264.9 million of liquidity, including approximately $20.0 million in cash and cash equivalents, and access to approximately $244.9 million under its revolving credit facility.
Agreement for production and storage of 0.5% sulphur fuel on the U.S. East Coast
On February 14, 2019, PBF Logistics announced an agreement with A.P. Moller - Maersk ("Maersk") to source and PBFX to process crude oil at CPI Operations LLC, a PBF Logistics LP terminal facility ("East Coast Storage assets") in New Jersey, United States. The processing and storage arrangement is expected to commence on October 1, 2019, approximately two months earlier than originally anticipated.
The agreement enables Maersk Oil Trading to supply IMO 2020-compliant 0.5% marine fuel to its customers on the US East Coast. Annual production will be around 1.25 million metric tonnes (mt), the equivalent of approximately 10% of A.P. Moller - Maersk's annual fuel demand.
About the TVPC Transaction
On May 31, 2019, PBF Logistics completed the previously announced transaction to acquire the remaining fifty percent interest in Torrance Valley Pipeline Company LLC ("TVPC") from an affiliate of PBF Energy Inc. (NYSE:PBF) for total consideration of approximately $200.0 million, an eight times acquisition multiple.
The acquisition of TVPC by the Partnership immediately doubles its position in one of its core assets and is immediately accretive to distributable cash flow.
PBF Logistics Announces Increased Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.5150 per common unit. The distribution is payable on August 30, 2019, to unitholders of record at the close of business on August 15, 2019.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
PBFX Reconciliation of Amounts under U.S. generally accepted accounting principles ("GAAP") to annualized run-rate EBITDA (unaudited, in millions)
Reconciliation of fifty percent TVPC acquired interest, inclusive of the amendment to the M70 services agreement, estimated annualized run-rate Net Income to annualized run-rate EBITDA:
TVPC Acquisition | ||||
Annualized run-rate net income | $ | 15.5 | ||
Add: Depreciation and amortization expense | 5.5 | |||
Add: Interest expense, net and other financing costs | 4.0 | |||
Annualized run-rate EBITDA | $ | 25.0 | ||
Due to the forward-looking nature of annualized run-rate EBITDA, information to reconcile annualized run-rate EBITDA to annualized run-rate cash flow from operating activities is not available as management is unable to project working capital changes for future periods at this time.
Due to the forward-looking nature of forecasted and long-term, consolidated run-rate EBITDA and distributable cash flow, information to reconcile long-term, consolidated run-rate EBITDA, distributable cash flow and coverage ratios to long-term, consolidated run-rate net income and cash flow from operating activities is not available as management is unable to project financing terms and working capital changes for future periods at this time.
The Partnership defines EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense. The Partnership defines EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense attributable to PBFX, which excludes results of acquisitions from affiliates of PBF Energy prior to the effective dates of such transactions. The Partnership defines Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. The Partnership defines distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are non-GAAP supplemental financial measures that management and external users of the Partnership's condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership believes that the presentation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA provides useful information to investors in assessing the Partnership's financial condition and results of operations and assists in evaluating the Partnership's ongoing operating performance for current and comparative periods. The Partnership believes that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance and provides investors with another perspective of the operating performance of the Partnership's assets and the cash the Partnership's business is generating. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, income from operations, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all, items that affect net income and net cash provided by operating activities. Additionally, because EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow may be defined differently by other companies in the Partnership's industry, the Partnership's definitions of such measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Conference Call Information
The Partnership will host a conference call and webcast regarding second quarter results and other business matters on Thursday, August 1, 2019, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (866) 831-8713 or (203) 518-9822, conference ID: PBFXQ219. The audio replay will be available two hours after the end of the call through August 15, 2019, by dialing (800) 723-5782 or (402) 220-2663.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets, the possibility that the Partnership may not consummate any pending acquisitions, the Partnership's plans for financing any pending acquisitions, and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present our results of operations, related operational information and reconciliations of net income and net cash provided by operating activities to EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow (all as defined below) of PBFX for the three and six months ended June 30, 2019 and 2018. The financial information presented contains the financial results of PBFX and the Development Assets (as defined below) prior to the Development Assets Acquisition (as defined below) on July 31, 2018.
On April 24, 2019, we entered into a Contribution Agreement with PBF Energy Company LLC ("PBF LLC"), pursuant to which PBF LLC contributed to us all of the issued and outstanding limited liability company interests of TVP Holding Company LLC ("TVP Holding"), which held the remaining 50% equity interest in Torrance Valley Pipeline Company LLC ("TVPC"), for total consideration of $200.0 million (the "TVPC Acquisition"). Subsequent to the closing of the TVPC Acquisition on May 31, 2019, we own 100% of the equity interest in TVPC, and we no longer record a noncontrolling interest related to our ownership of TVPC.
On February 28, 2019, we closed on an Equity Restructuring Agreement with PBF LLC and PBF Logistics GP, our general partner, pursuant to which PBFX's incentive distribution rights ("IDRs") held by PBF LLC were canceled and converted into 10,000,000 newly issued PBFX common units (the "IDR Restructuring"). Subsequent to the closing of the IDR Restructuring, no distributions were made to PBF LLC with respect to the IDRs, and the newly issued PBFX common units are entitled to normal distributions.
On October 1, 2018, we acquired Crown Point International LLC's wholly-owned subsidiary, CPI Operations LLC (the "East Coast Storage Assets Acquisition"), whose assets include a storage facility with approximately four million barrels of multi-use storage capacity, an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and certain other idled assets located on the Delaware River near Paulsboro, New Jersey (collectively, the "East Coast Storage Assets"). Additionally, the East Coast Storage Assets Acquisition includes an earn-out provision related to an existing commercial agreement with a third party, based on the results of restarting certain of the acquired idled assets, which are expected to be restarted in the fourth quarter of 2019.
On July 31, 2018, we acquired from PBF LLC, a subsidiary of PBF Energy Inc., all of the issued and outstanding limited liability company interests of: Toledo Rail Logistics Company LLC, whose assets consist of a loading and unloading rail facility located at PBF Holding Company LLC's ("PBF Holding") Toledo Refinery (the "Toledo Rail Products Facility"); Chalmette Logistics Company LLC, whose assets consist of a truck loading rack facility (the "Chalmette Truck Rack") and a rail yard facility (the "Chalmette Rosin Yard"), both of which are located at PBF Holding's Chalmette Refinery; Paulsboro Terminaling Company LLC, whose assets consist of a lube oil terminal facility located at PBF Holding's Paulsboro Refinery (the "Paulsboro Lube Oil Terminal"); and DCR Storage and Loading Company LLC, whose assets consist of an ethanol storage facility located at PBF Holding's Delaware City Refinery (the "Delaware Ethanol Storage Facility" and collectively with the Toledo Rail Products Facility, the Chalmette Truck Rack, the Chalmette Rosin Yard, and the Paulsboro Lube Oil Terminal, the "Development Assets") (the "Development Assets Acquisition"). In connection with the Development Assets Acquisition, we entered into various commercial agreements with PBF Holding and assumed an existing commercial agreement with a third party.
On April 16, 2018, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), completed the purchase of two refined product terminals located in Knoxville, Tennessee, which include product tanks, pipeline connections to the Colonial Pipeline Company and Plantation Pipe Line Company pipeline systems and truck loading facilities (the "Knoxville Terminals") from Cummins Terminals, Inc. (the "Knoxville Terminals Purchase").
The Development Assets Acquisition was a transfer between entities under common control. Accordingly, PBFX's financial information contained herein has been retrospectively adjusted to include the historical results of the Development Assets as if they were owned by the Partnership for all periods presented. The results of the Development Assets are included in the Transportation and Terminaling segment.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions. We define Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is calculated by dividing distributable cash flow by our total distribution declared. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with GAAP, they are supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA provides useful information to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance for current and comparative periods. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance and it provides investors with another perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, income from operations, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all, items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue (a): | ||||||||||||||||
Affiliate | $ | 74,656 | $ | $ | 63,785 | $ | 145,988 | $ | 124,649 | |||||||
Third-party | 8,094 | 4,314 | 15,607 | 8,190 | ||||||||||||
Total revenue | 82,750 | 68,099 | 161,595 | 132,839 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Operating and maintenance expenses (a) | 28,553 | 20,724 | 58,469 | 40,604 | ||||||||||||
General and administrative expenses | 7,580 | 6,488 | 13,590 | 10,779 | ||||||||||||
Depreciation and amortization | 8,854 | 7,091 | 17,575 | 13,734 | ||||||||||||
Total costs and expenses | 44,987 | 34,303 | 89,634 | 65,117 | ||||||||||||
Income from operations | 37,763 | 33,796 | 71,961 | 67,722 | ||||||||||||
Other expense: | ||||||||||||||||
Interest expense, net | (11,216) | (10,029) | (22,129) | (19,614) | ||||||||||||
Amortization of loan fees and debt premium | (446) | (396) | (895) | (759) | ||||||||||||
Accretion on discounted liabilities | (773) | — | (1,533) | — | ||||||||||||
Net income | 25,328 | 23,371 | 47,404 | 47,349 | ||||||||||||
Less: Net loss attributable to Predecessor | — | (1,084) | — | (2,363) | ||||||||||||
Less: Net income attributable to noncontrolling interest (g) | 3,162 | 4,363 | 7,881 | 8,385 | ||||||||||||
Net income attributable to the partners | 22,166 | 20,092 | 39,523 | 41,327 | ||||||||||||
Less: Net income attributable to the IDR holder (h) | — | 3,415 | — | 6,370 | ||||||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 22,166 | $ | 16,677 | $ | 39,523 | $ | 34,957 | ||||||||
Net income per limited partner unit (i): | ||||||||||||||||
Common units - basic | $ | 0.37 | $ | 0.39 | $ | 0.72 | $ | 0.83 | ||||||||
Common units - diluted | 0.37 | 0.39 | 0.72 | 0.83 | ||||||||||||
Weighted-average limited partner units outstanding (i): | ||||||||||||||||
Common units - basic | 60,279,287 | 42,231,119 | 54,748,755 | 42,176,202 | ||||||||||||
Common units - diluted | 60,364,347 | 42,294,616 | 54,776,257 | 42,190,136 | ||||||||||||
Cash distribution declared per unit (e) | $ | 0.5150 | $ | 0.4950 | $ | 1.0250 | $ | 0.9850 | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||
PBF LOGISTICS LP | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (continued) | ||||||||||||
(Unaudited, in thousands) | ||||||||||||
Three Months Ended June 30, 2018 | ||||||||||||
PBF Logistics | Development Assets* | Consolidated Results | ||||||||||
Revenue: | ||||||||||||
Affiliate | $ | 63,785 | $ | — | $ | 63,785 | ||||||
Third-party | 3,613 | 701 | 4,314 | |||||||||
Total revenue | 67,398 | 701 | 68,099 | |||||||||
Costs and expenses: | ||||||||||||
Operating and maintenance expenses | 19,111 | 1,613 | 20,724 | |||||||||
General and administrative expenses | 6,488 | — | 6,488 | |||||||||
Depreciation and amortization | 6,919 | 172 | 7,091 | |||||||||
Total costs and expenses | 32,518 | 1,785 | 34,303 | |||||||||
Income (loss) from operations | 34,880 | (1,084) | 33,796 | |||||||||
Other expense: | ||||||||||||
Interest expense, net | (10,029) | — | (10,029) | |||||||||
Amortization of loan fees and debt premium | (396) | — | (396) | |||||||||
Net income (loss) | 24,455 | (1,084) | 23,371 | |||||||||
Less: Net loss attributable to Predecessor | — | (1,084) | (1,084) | |||||||||
Less: Net income attributable to noncontrolling interest (g) | 4,363 | — | 4,363 | |||||||||
Net income attributable to the partners | 20,092 | — | 20,092 | |||||||||
Less: Net income attributable to the IDR holder | 3,415 | — | 3,415 | |||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 16,677 | $ | — | $ | 16,677 | ||||||
See Footnotes to Earnings Release Tables | ||||||||||||
*Reflects the results of the Development Assets prior to our acquisition on July 31, 2018.
PBF LOGISTICS LP | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (continued) | ||||||||||||
(Unaudited, in thousands) | ||||||||||||
Six Months Ended June 30, 2018 | ||||||||||||
PBF Logistics | Development Assets* | Consolidated Results | ||||||||||
Revenue: | ||||||||||||
Affiliate | $ | 124,649 | $ | — | $ | 124,649 | ||||||
Third-party | 6,788 | 1,402 | 8,190 | |||||||||
Total revenue | 131,437 | 1,402 | 132,839 | |||||||||
Costs and expenses: | ||||||||||||
Operating and maintenance expenses | 37,159 | 3,445 | 40,604 | |||||||||
General and administrative expenses | 10,779 | — | 10,779 | |||||||||
Depreciation and amortization | 13,414 | 320 | 13,734 | |||||||||
Total costs and expenses | 61,352 | 3,765 | 65,117 | |||||||||
Income (loss) from operations | 70,085 | (2,363) | 67,722 | |||||||||
Other expense: | ||||||||||||
Interest expense, net | (19,614) | — | (19,614) | |||||||||
Amortization of loan fees and debt premium | (759) | — | (759) | |||||||||
Net income (loss) | 49,712 | (2,363) | 47,349 | |||||||||
Less: Net loss attributable to Predecessor | — | (2,363) | (2,363) | |||||||||
Less: Net income attributable to noncontrolling interest (g) | 8,385 | — | 8,385 | |||||||||
Net income attributable to the partners | 41,327 | — | 41,327 | |||||||||
Less: Net income attributable to the IDR holder | 6,370 | — | 6,370 | |||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 34,957 | $ | — | $ | 34,957 | ||||||
See Footnotes to Earnings Release Tables | ||||||||||||
*Reflects the results of the Development Assets prior to our acquisition on July 31, 2018.
PBF LOGISTICS LP | ||||||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||||||
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||||||||||
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Transportation and Terminaling Segment | ||||||||||||||||||||
Terminals | ||||||||||||||||||||
Total throughput (barrels per day ("bpd")) (b)(d) | 275,076 | 268,430 | 262,772 | 255,973 | ||||||||||||||||
Lease tank capacity (average lease capacity barrels per | 2,185,882 | 1,589,784 | 2,300,813 | 1,869,693 | ||||||||||||||||
Pipelines | ||||||||||||||||||||
Total throughput (bpd) (b)(d) | 161,809 | 166,900 | 154,520 | 159,868 | ||||||||||||||||
Lease tank capacity (average lease capacity barrels per | 1,500,714 | 1,574,740 | 1,338,769 | 1,555,930 | ||||||||||||||||
Storage Segment | ||||||||||||||||||||
Storage capacity reserved (average shell capacity | 8,053,983 | 4,412,673 | 7,993,338 | 4,445,714 | ||||||||||||||||
Cash Flow Information: | ||||||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||||
Operating activities | $ | 17,677 | $ | 22,402 | $ | 55,886 | $ | 65,327 | ||||||||||||
Investing activities | (3,932) | (61,718) | (15,152) | (65,671) | ||||||||||||||||
Financing activities | (10,191) | 36,988 | (40,642) | 361 | ||||||||||||||||
Net change in cash | $ | 3,554 | $ | (2,328) | $ | 92 | $ | 17 | ||||||||||||
Other Financial Information: | ||||||||||||||||||||
EBITDA attributable to PBFX (c) | $ | 42,534 | $ | 36,070 | $ | 79,356 | $ | 72,387 | ||||||||||||
Adjusted EBITDA (c) | $ | 48,336 | $ | 39,402 | $ | 91,293 | $ | 77,036 | ||||||||||||
Distributable cash flow (c) | $ | 34,123 | $ | 28,100 | $ | 59,536 | $ | 54,346 | ||||||||||||
Quarterly distribution declared per unit (e) | $ | 0.5150 | $ | 0.4950 | $ | 1.0250 | $ | 0.9850 | ||||||||||||
Distributions (e): | ||||||||||||||||||||
Common units | $ | 32,398 | $ | 22,800 | $ | 64,481 | $ | 43,770 | ||||||||||||
IDR holder - PBF LLC (h) | — | 3,415 | — | 6,370 | ||||||||||||||||
Total distributions | $ | 32,398 | $ | 26,215 | $ | 64,481 | $ | 50,140 | ||||||||||||
Coverage ratio (c) | 1.05x | 1.07x | 0.92x | 1.08x | ||||||||||||||||
Capital expenditures, including the Knoxville Terminals | $ | 3,932 | $ | 61,718 | $ | 15,152 | $ | 65,671 | ||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
PBF LOGISTICS LP | |||||||||
EARNINGS RELEASE TABLES | |||||||||
KEY OPERATING AND FINANCIAL INFORMATION (continued) | |||||||||
(Unaudited, in thousands) | |||||||||
June 30, | December 31, | ||||||||
Balance Sheet Information: | 2019 | 2018 | |||||||
Cash and cash equivalents (f) | $ | 20,000 | $ | 19,908 | |||||
Property, plant and equipment, net | 855,958 | 862,117 | |||||||
Total assets | 959,573 | 956,353 | |||||||
Total debt (f) | 769,219 | 673,324 | |||||||
Total liabilities | 852,579 | 763,163 | |||||||
Partners' equity | 106,994 | 23,718 | |||||||
Noncontrolling interest (g) | — | 169,472 | |||||||
Total liabilities and equity | 959,573 | 956,353 | |||||||
See Footnotes to Earnings Release Tables | |||||||||
PBF LOGISTICS LP | |||||||||||||||||
EARNINGS RELEASE TABLES | |||||||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||
TO EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||||
(Unaudited, in thousands) | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Reconciliation of net income to EBITDA and | |||||||||||||||||
Net Income | $ | 25,328 | $ | 23,371 | $ | 47,404 | $ | 47,349 | |||||||||
Interest expense, net | 11,216 | 10,029 | 22,129 | 19,614 | |||||||||||||
Amortization of loan fees and debt premium | 446 | 396 | 895 | 759 | |||||||||||||
Accretion on discounted liabilities | 773 | — | 1,533 | — | |||||||||||||
Depreciation and amortization | 8,854 | 7,091 | 17,575 | 13,734 | |||||||||||||
EBITDA | 46,617 | 40,887 | 89,536 | 81,456 | |||||||||||||
Less: Predecessor EBITDA | — | (912) | — | (2,043) | |||||||||||||
Less: Noncontrolling interest EBITDA (g) | 4,083 | 5,729 | 10,180 | 11,112 | |||||||||||||
EBITDA attributable to PBFX | 42,534 | 36,070 | 79,356 | 72,387 | |||||||||||||
Non-cash unit-based compensation expense | 3,387 | 2,663 | 4,351 | 3,497 | |||||||||||||
Cash interest | (11,290) | (10,049) | (22,426) | (19,629) | |||||||||||||
Maintenance capital expenditures attributable to PBFX | (508) | (584) | (1,745) | (1,909) | |||||||||||||
Distributable cash flow | $ | 34,123 | $ | 28,100 | $ | 59,536 | $ | 54,346 | |||||||||
Reconciliation of net cash provided by operating activities | |||||||||||||||||
Net cash provided by operating activities | $ | 17,677 | $ | 22,402 | $ | 55,886 | $ | 65,327 | |||||||||
Change in operating assets and liabilities | 21,111 | 11,119 | 15,872 | 12 | |||||||||||||
Interest expense, net | 11,216 | 10,029 | 22,129 | 19,614 | |||||||||||||
Non-cash unit-based compensation expense | (3,387) | (2,663) | (4,351) | (3,497) | |||||||||||||
EBITDA | 46,617 | 40,887 | 89,536 | 81,456 | |||||||||||||
Less: Predecessor EBITDA | — | (912) | — | (2,043) | |||||||||||||
Less: Noncontrolling interest EBITDA (g) | 4,083 | 5,729 | 10,180 | 11,112 | |||||||||||||
EBITDA attributable to PBFX | 42,534 | 36,070 | 79,356 | 72,387 | |||||||||||||
Non-cash unit-based compensation expense | 3,387 | 2,663 | 4,351 | 3,497 | |||||||||||||
Cash interest | (11,290) | (10,049) | (22,426) | (19,629) | |||||||||||||
Maintenance capital expenditures attributable to PBFX | (508) | (584) | (1,745) | (1,909) | |||||||||||||
Distributable cash flow | $ | 34,123 | $ | 28,100 | $ | 59,536 | $ | 54,346 | |||||||||
See Footnotes to Earnings Release Tables | |||||||||||||||||
PBF LOGISTICS LP | |||||||||||||||||
EARNINGS RELEASE TABLES | |||||||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||
TO ADJUSTED EBITDA | |||||||||||||||||
(Unaudited, in thousands) | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||
Reconciliation of net income to EBITDA and Adjusted | |||||||||||||||||
Net income | $ | 25,328 | $ | 23,371 | $ | 47,404 | $ | 47,349 | |||||||||
Interest expense, net | 11,216 | 10,029 | 22,129 | 19,614 | |||||||||||||
Amortization of loan fees and debt premium | 446 | 396 | 895 | 759 | |||||||||||||
Accretion on discounted liabilities | 773 | — | 1,533 | — | |||||||||||||
Depreciation and amortization | 8,854 | 7,091 | 17,575 | 13,734 | |||||||||||||
EBITDA | 46,617 | 40,887 | 89,536 | 81,456 | |||||||||||||
Less: Predecessor EBITDA | — | (912) | — | (2,043) | |||||||||||||
Less: Noncontrolling interest EBITDA (g) | 4,083 | 5,729 | 10,180 | 11,112 | |||||||||||||
EBITDA attributable to PBFX | 42,534 | 36,070 | 79,356 | 72,387 | |||||||||||||
Acquisition and transaction costs | 955 | 669 | 3,108 | 1,152 | |||||||||||||
Non-cash unit-based compensation expense | 3,387 | 2,663 | 4,351 | 3,497 | |||||||||||||
East Coast Terminals environmental remediation costs | 1,460 | — | 3,596 | — | |||||||||||||
PNGPC tariff true-up adjustments | — | — | 882 | — | |||||||||||||
Adjusted EBITDA | $ | 48,336 | $ | 39,402 | $ | 91,293 | $ | 77,036 | |||||||||
See Footnotes to Earnings Release Tables | |||||||||||||||||
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Three Months Ended June 30, 2019 | ||||||||||||||||
Transportation and | Storage | Corporate | Consolidated Total | |||||||||||||
Total revenue (a) | $ | 69,656 | $ | 13,094 | $ | — | $ | 82,750 | ||||||||
Depreciation and amortization | 6,879 | 1,975 | — | 8,854 | ||||||||||||
Income (loss) from operations | 40,529 | 4,814 | (7,580) | 37,763 | ||||||||||||
Interest expense, net, amortization of loan | — | — | 12,435 | 12,435 | ||||||||||||
Capital expenditures | 1,689 | 2,243 | — | 3,932 | ||||||||||||
Three Months Ended June 30, 2018 | ||||||||||||||||
Transportation and | Storage | Corporate | Consolidated Total | |||||||||||||
Total revenue (a) | $ | 61,133 | $ | 6,966 | $ | — | $ | 68,099 | ||||||||
Depreciation and amortization | 6,166 | 925 | — | 7,091 | ||||||||||||
Income (loss) from operations | 36,234 | 4,050 | (6,488) | 33,796 | ||||||||||||
Interest expense, net and amortization of loan fees and debt premium | — | — | 10,425 | 10,425 | ||||||||||||
Capital expenditures, including the Knoxville Terminals Purchase | 61,716 | 2 | — | 61,718 | ||||||||||||
Six Months Ended June 30, 2019 | ||||||||||||||||
Transportation and | Storage | Corporate | Consolidated Total | |||||||||||||
Total revenue (a) | $ | 135,615 | $ | 25,980 | $ | — | $ | 161,595 | ||||||||
Depreciation and amortization | 13,780 | 3,795 | — | 17,575 | ||||||||||||
Income (loss) from operations | 77,080 | 8,471 | (13,590) | 71,961 | ||||||||||||
Interest expense, net, amortization of loan fees and debt premium and accretion on discounted liabilities | — | — | 24,557 | 24,557 | ||||||||||||
Capital expenditures | 12,233 | 2,919 | — | 15,152 | ||||||||||||
Six Months Ended June 30, 2018 | ||||||||||||||||
Transportation and | Storage | Corporate | Consolidated Total | |||||||||||||
Total revenue (a) | $ | 118,804 | $ | 14,035 | $ | — | $ | 132,839 | ||||||||
Depreciation and amortization | 11,884 | 1,850 | — | 13,734 | ||||||||||||
Income (loss) from operations | 70,460 | 8,041 | (10,779) | 67,722 | ||||||||||||
Interest expense, net and amortization of loan fees and debt premium | — | — | 20,373 | 20,373 | ||||||||||||
Capital expenditures, including the Knoxville Terminals Purchase | 65,583 | 88 | — | 65,671 | ||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
SEGMENT FINANCIAL INFORMATION (continued) | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Balance at June 30, 2019 | ||||||||||||||||
Transportation and | Storage | Corporate | Consolidated | |||||||||||||
Total assets | $ | 730,250 | $ | 220,030 | $ | 9,293 | $ | 959,573 | ||||||||
Balance at December 31, 2018 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total assets | $ | 731,505 | $ | 219,326 | $ | 5,522 | $ | 956,353 | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||
PBF LOGISTICS LP | |||||||||||
EARNINGS RELEASE TABLES | |||||||||||
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
(Unaudited, in thousands, except per unit data) | |||||||||||
(a) | See discussion of the factors affecting comparability noted on page 5. Our results of operations may not be comparable to | ||||||||||
(b) | Calculated as the sum of the average throughput per day for each asset group for the period presented. | ||||||||||
(c) | See "Non-GAAP Financial Measures" on page 6 for definitions of EBITDA, EBITDA attributable to PBFX, Adjusted | ||||||||||
(d) | Operating information reflects activity subsequent to our acquisitions, the execution of the commercial agreements with PBF Holding and the completion of certain organic growth projects. | ||||||||||
(e) | On August 1, 2019, we announced a quarterly cash distribution of $0.5150 per limited partner unit based on the results of the | ||||||||||
(f) | Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by | ||||||||||
(g) | Prior to the TVPC Acquisition, our wholly-owned subsidiary, PBFX Operating Company LLC ("PBFX Op Co"), held a 50% | ||||||||||
(h) | Subsequent to the closing of the IDR Restructuring, the IDRs were canceled and exchanged for 10,000,000 newly issued | ||||||||||
(i) | We base our calculation of net income per limited partner unit on the weighted-average number of limited partner units | ||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-increases-quarterly-distribution-to-0-5150-per-unit-and-announces-second-quarter-2019-earnings-results-300894694.html
SOURCE PBF Logistics LP
Article Date
8/1/2019PBF Energy to Release Third Quarter 2019 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., July 16, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that it will release its earnings results for the third quarter 2019 on Thursday, October 31, 2019. The company will host a conference call and webcast regarding third quarter results and other business matters on Thursday, October 31, 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: PBFQ319. The audio replay will be available two hours after the end of the call through November 14, 2019, by dialing (800) 723-0607 or (402) 220-2658.
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-to-release-third-quarter-2019-earnings-results-300885820.html
SOURCE PBF Energy Inc.
Article Date
7/16/2019PBF Logistics to Release Third Quarter 2019 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., July 16, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that it will release its earnings results for the third quarter 2019 on Thursday, October 31, 2019. The company will host a conference call and webcast regarding third quarter results and other business matters on Thursday, October 31, 2019, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (866) 831-8713 or (203) 518-9822, conference ID: PBFXQ319. The audio replay will be available two hours after the end of the call through November 14, 2019, by dialing (800) 723-8184 or (402) 220-2668.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-release-third-quarter-2019-earnings-results-300885812.html
SOURCE PBF Logistics LP
Article Date
7/16/2019PBF Energy to Release Second Quarter 2019 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., June 25, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that it will release its earnings results for the second quarter 2019 on Thursday, August 1, 2019. The company will host a conference call and webcast regarding second quarter 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.
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-to-release-second-quarter-2019-earnings-results-300874893.html
SOURCE PBF Energy Inc.
Article Date
6/25/2019PBF Logistics to Release Second Quarter 2019 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., June 25, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that it will release its earnings results for the second quarter 2019 on Thursday, August 1, 2019. The company will host a conference call and webcast regarding second quarter results and other business matters on Thursday, August 1, 2019, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (866) 831-8713 or (203) 518-9822, conference ID: PBFXQ219. The audio replay will be available two hours after the end of the call through August 15, 2019, by dialing (800) 723-5782 or (402) 220-2663.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-release-second-quarter-2019-earnings-results-300874892.html
SOURCE PBF Logistics LP
Article Date
6/25/2019PBF Energy to Attend the J.P. Morgan 2019 Energy Conference
Source: PR Newswire
PARSIPPANY, N.J., June 15, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be attending the J.P. Morgan 2019 Energy Conference being held on June 18-19, 2019.
Company presentation materials will be made available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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-to-attend-the-jp-morgan-2019-energy-conference-300869150.html
SOURCE PBF Energy Inc.
Article Date
6/15/2019PBF Energy Creates West Coast System with Purchase of Shell Martinez Refinery
Source: PR Newswire
PARSIPPANY, N.J., June 11, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that its subsidiary has 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 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. Notably, direct and indirect first quarter 2020 turnaround costs and certain additional future capital expenses will be funded by the Seller. The value of working capital will be determined at closing. The Martinez transaction is expected to close in the second half of 2019, subject to customary closing conditions and regulatory approvals.
"The acquisition of the high-complexity, dual-coking Martinez refinery is a significant strategic step for PBF as we expand our West Coast operations and increase our total throughput capacity to more than one million barrels per day," said PBF Chairman and Chief Executive Officer Tom Nimbley. "Martinez is one of the most complex refineries in the country and a top-tier asset. This acquisition will provide increased opportunities for PBF's expanding West Coast operations to deliver enhanced value and returns in the favorable markets ahead including tangible synergies for our two-refinery West Coast system. We look forward to welcoming Martinez's highly-motivated and professional workforce to the PBF family, and are committed to continuing their tradition of safe, reliable, environmentally responsible operations, as well as their outstanding community partnership."
The Martinez refinery is located on an 860-acre site in the City of Martinez, 30 miles northeast of San Francisco, California. The refinery is a high-conversion 157,000 barrel per day, dual-coking facility with a Nelson Complexity Index of 16.1, making it one of the most complex refineries in the United States. The facility is strategically positioned in Northern California and provides for operating and other synergies with PBF's Torrance refinery located in Southern California.
In addition to refining assets, the transaction includes a number of high-quality onsite logistics assets including a deep-water marine facility, product distribution terminals and refinery crude and product storage facilities with approximately 8.8 million barrels of shell capacity.
Renewable Fuels Project
PBF Energy and Shell have also agreed to jointly move forward with reviewing the feasibility of building a proposed renewable diesel project which would repurpose existing idled equipment at the Martinez refinery to create a renewable fuels production facility. The detailed feasibility review and planning for this project is expected to occur after closing of the acquisition.
Conference Call Information
At 5:15 p.m. ET, June 11, 2019, PBF Energy will host a conference call to discuss the transaction. The call will be webcast and can be accessed at PBF Energy's website, http://www.pbfenergy.com. The call can also be heard by dialing (866) 342-8591 or (203) 518-9713, conference ID: PBF0611. The audio replay will be available two hours after the end of the call through June 25, 2019, by dialing (800) 839-4013 or (402) 220-2982.
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 expectations with respect to timing of the completion of the proposed acquisition; the company's post-acquisition plans, objectives, expectations and intentions with respect to future earnings and operations of the Martinez refinery and/or its West Coast operations, including the renewable fuels project; the company's plans for financing the proposed acquisition; and the conditions to the closing of the proposed acquisition and the possibility that the proposed acquisition will not close. 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-creates-west-coast-system-with-purchase-of-shell-martinez-refinery-300865777.html
SOURCE PBF Energy Inc.
Article Date
6/11/2019PBF Logistics to attend 2019 MLP & Energy Infrastructure Conference
Source: PR Newswire
PARSIPPANY, N.J., May 8, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that the partnership's management will be meeting with investors and industry analysts on May 14 to May 15, 2019, at the 2019 MLP & Energy Infrastructure Conference.
The partnership's meeting materials will be available on the Investor Relations section of the PBF Logistics LP website at www.pbflogistics.com.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-attend-2019-mlp--energy-infrastructure-conference-300846795.html
SOURCE PBF Logistics LP
Article Date
5/8/2019PBF Logistics Increases Quarterly Distribution to $0.51 per Unit, Highlights $135 Million Common Unit Offering and Announces First Quarter 2019 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., May 1, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX, the "Partnership") today announced first quarter 2019 net income attributable to the limited partners of $17.4 million, or $0.35 per common unit. During the quarter, the Partnership generated cash from operations of approximately $38.2 million, earnings before interest, income taxes, depreciation, and amortization ("EBITDA") of $36.8 million, Adjusted EBITDA of $43.0 million and distributable cash flow of $25.4 million. Included in reported results for the first quarter are $6.1 million, or $0.13 per common unit, of transaction-related expenses primarily associated with the IDR simplification transaction, unit-based compensation, environmental remediation costs associated with our East Coast Terminals and a true-up for revenue associated with the Paulsboro Natural Gas Pipeline due to a reduction in its pipeline tariff based on the lower than budget project costs.
"During the first quarter PBF Logistics' assets operated well. We are committed to the continued development of the Partnership through the execution of our three-pronged strategy of delivering growth through organic projects, third-party acquisitions and, most recently, drop-down transactions," said PBF Logistics GP LLC Executive Vice President Matt Lucey. "The Torrance Valley Pipeline transaction, in combination with our ongoing organic growth efforts, exceeds our near-term distribution growth funding requirements. Given our successful capital raise this past week, we do not anticipate the need to access the equity markets to fund growth capital through 2020," Mr. Lucey concluded, "Over the first four months of 2019 the Partnership has responded to the call of investors by eliminating the IDR structure, delivered significant growth through an accretive acquisition and positioned ourselves to execute our longer term growth plans."
As of March 31, 2019, the Partnership had approximately $352.3 million of liquidity, including approximately $16.4 million in cash and cash equivalents, and access to approximately $335.9 million under its revolving credit facility.
About the TVPC Transaction and Over-subscribed Equity Offering
On April 24, 2019, PBF Logistics announced the execution of definitive agreements for the acquisition of the remaining fifty percent interest in Torrance Valley Pipeline Company LLC ("TVPC") from an affiliate of PBF Energy Inc. (NYSE:PBF) for total consideration of approximately $200.0 million, an eight times acquisition multiple. The Partnership and PBF Energy currently anticipate the closing of the transaction to occur in the second quarter, subject to customary closing conditions.
The acquisition is expected to be financed through a combination of $135.0 million of gross proceeds from PBFX's over-subscribed registered direct offering of common units to certain institutional investors and a $65.0 million draw-down from the Partnership's senior secured revolving credit facility. The offering closed on April 29, 2019.
The acquisition of TVPC by the Partnership immediately doubles its position in one of its core assets and is immediately accretive to distributable cash flow. Pro forma for the transaction, the Partnership expects 2019 coverage to be consistent with its original guidance of approximately 1.05x based on current expectations. The Partnership reiterates its prior guidance of maintaining leverage in the three-to-four times run-rate EBITDA range and its commitment to a long-term coverage ratio of 1.15x.
PBF Logistics Announces Increased Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.51 per common unit. The distribution is payable on May 30, 2019, to unitholders of record at the close of business on May 15, 2019.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
PBFX Reconciliation of Amounts under U.S. GAAP to annualized run-rate EBITDA (unaudited, in millions)
Reconciliation of fifty percent TVPC acquired interest, inclusive of the amendment to the M70 services agreement, estimated annualized run-rate Net Income to annualized run-rate EBITDA:
TVPC Acquisition | ||||
Annualized run-rate net income | $ | 15.5 | ||
Add: Depreciation and amortization expense | 5.5 | |||
Add: Interest expense, net and other financing costs | 4.0 | |||
Annualized run-rate EBITDA | $ | 25.0 | ||
Due to the forward-looking nature of annualized run-rate EBITDA, information to reconcile annualized run-rate EBITDA to annualized run-rate cash flow from operating activities is not available as management is unable to project working capital changes for future periods at this time.
Due to the forward-looking nature of forecasted and long-term, consolidated run-rate EBITDA and distributable cash flow, information to reconcile long-term, consolidated run-rate EBITDA, distributable cash flow and coverage ratios to long-term, consolidated run-rate net income and cash flow from operating activities is not available as management is unable to project financing terms and working capital changes for future periods at this time.
The Partnership defines EBITDA as net income (loss) before net interest expense including amortization of loan fees and debt premium and accretion on discounted liabilities, income tax expense, depreciation and amortization expense. The Partnership defines EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense including amortization of loan fees and debt premium and accretion on discounted liabilities, income tax expense, depreciation and amortization expense attributable to PBFX, which excludes results of acquisitions from affiliates of PBF Energy prior to the effective dates of such transactions. The Partnership defines Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, unit-based compensation and items that meet the conditions of unusual, infrequent and/or non-recurring charges. EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA are non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA provide useful information to investors in assessing our financial condition and results of operations. EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA should not be considered alternatives to net income, income from operations, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA have important limitations as analytical tools because they excludes some, but not all, items that affect net income. Additionally, because EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA may be defined differently by other companies in our industry, our definition of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.
Conference Call Information
The Partnership will host a conference call and webcast regarding first quarter results and other business matters on Wednesday, May 1, 2019, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (877) 876-9173 or (785) 424-1667, conference ID: PBFXQ119. The audio replay will be available two hours after the end of the call through May 15, 2019, by dialing (800) 283-5758 or (402) 220-0863.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets, the possibility that the Partnership may not consummate any pending acquisitions, the Partnership's plans for financing any pending acquisitions, and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present our results of operations, related operational information, and reconciliations of net income and net cash provided by operating activities to EBITDA, Adjusted EBITDA and distributable cash flow (all as defined below) of PBFX for the three months ended March 31, 2019 and 2018. The financial information presented contains the financial results of PBFX and the Development Assets (as defined below) prior to the Development Assets Acquisition (as defined below) on July 31, 2018.
On February 28, 2019, we closed on an Equity Restructuring Agreement with PBF Energy Company LLC ("PBF LLC") and PBF Logistics GP, our general partner, pursuant to which PBFX's incentive distribution rights ("IDRs") held by PBF LLC were canceled and converted into 10,000,000 newly issued common units (the "IDR Restructuring"). Subsequent to the closing of the IDR Restructuring, no distributions were made to PBF LLC with respect to the IDRs and the newly issued common units are entitled to normal distributions.
On October 1, 2018, we acquired from Crown Point International LLC, its wholly-owned subsidiary, CPI Operations LLC (the "East Coast Storage Assets Acquisition"), whose assets include a storage facility with approximately four million barrels of multi-use storage capacity, an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts, and certain other idled assets located on the Delaware River near Paulsboro, New Jersey (the "East Coast Storage Assets"). Additionally, the East Coast Storage Assets Acquisition includes an earn-out provision related to an existing commercial agreement with a third party, based on the future results of certain of the acquired idled assets, which we are currently in the process of restarting.
On July 31, 2018, we acquired from PBF LLC, a subsidiary of PBF Energy Inc., all of the issued and outstanding limited liability company interests of: Toledo Rail Logistics Company LLC, whose assets consist of a loading and unloading rail facility located at PBF Holding Company LLC's ("PBF Holding") Toledo Refinery (the "Toledo Rail Products Facility"); Chalmette Logistics Company LLC, whose assets consist of a truck loading rack facility (the "Chalmette Truck Rack") and a rail yard facility (the "Chalmette Rosin Yard"), both of which are located at PBF Holding's Chalmette Refinery; Paulsboro Terminaling Company LLC, whose assets consist of a lube oil terminal facility located at PBF Holding's Paulsboro Refinery (the "Paulsboro Lube Oil Terminal"); and DCR Storage and Loading Company LLC, whose assets consist of an ethanol storage facility located at PBF Holding's Delaware City Refinery (the "Delaware Ethanol Storage Facility" and collectively with the Toledo Rail Products Facility, the Chalmette Truck Rack, the Chalmette Rosin Yard, and the Paulsboro Lube Oil Terminal, the "Development Assets") (the "Development Assets Acquisition"). In connection with the Development Assets Acquisition, we entered into various commercial agreements with PBF Holding and assumed an existing commercial agreement with a third party.
On April 16, 2018, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), completed the purchase of two refined product terminals located in Knoxville, Tennessee, which include product tanks, pipeline connections to the Colonial Pipeline Company and Plantation Pipe Line Company pipeline systems and truck loading facilities (the "Knoxville Terminals"), from Cummins Terminals, Inc. (the "Knoxville Terminals Purchase").
The Development Assets Acquisition was a transfer between entities under common control. Accordingly, PBFX's financial information contained herein has been retrospectively adjusted to include the historical results of the Development Assets as if they were owned by the Partnership for all periods presented. The results of the Development Assets are included in the Transportation and Terminaling segment.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions. We define Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, unit-based compensation and items that meet the conditions of unusual, infrequent and/or non-recurring charges. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is calculated by taking distributable cash flow divided by our total distribution declared. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with GAAP, they are supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA provide useful information to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance for current and comparative periods. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance and it provides investors with another perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
PBF LOGISTICS LP | ||||||||
EARNINGS RELEASE TABLES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(Unaudited, in thousands, except unit and per unit data) | ||||||||
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Revenue (a): | ||||||||
Affiliate | $ | 71,332 | $ | 60,864 | ||||
Third-party | 7,513 | 3,876 | ||||||
Total revenue | 78,845 | 64,740 | ||||||
Costs and expenses: | ||||||||
Operating and maintenance expenses (a) | 29,916 | 19,880 | ||||||
General and administrative expenses | 6,010 | 4,291 | ||||||
Depreciation and amortization | 8,721 | 6,643 | ||||||
Total costs and expenses | 44,647 | 30,814 | ||||||
Income from operations | 34,198 | 33,926 | ||||||
Other expense: | ||||||||
Interest expense, net | (10,913) | (9,585) | ||||||
Amortization of loan fees and debt premium | (449) | (363) | ||||||
Accretion on discounted liabilities | (760) | — | ||||||
Net income | 22,076 | 23,978 | ||||||
Less: Net loss attributable to Predecessor | — | (1,279) | ||||||
Less: Net income attributable to noncontrolling interest (g) | 4,719 | 4,022 | ||||||
Net income attributable to the partners | 17,357 | 21,235 | ||||||
Less: Net income attributable to the IDR holder (h) | — | 2,959 | ||||||
Net income attributable to PBF Logistics LP unitholders | $ | 17,357 | $ | 18,276 | ||||
Net income per limited partner unit (i): | ||||||||
Common units - basic | $ | 0.35 | $ | 0.43 | ||||
Common units - diluted | 0.35 | 0.43 | ||||||
Weighted-average limited partner units outstanding (i): | ||||||||
Common units - basic | 49,151,927 | 42,129,377 | ||||||
Common units - diluted | 49,318,133 | 42,236,092 | ||||||
Cash distribution declared per unit (e) | $ | 0.5100 | $ | 0.4900 | ||||
See Footnotes to Earnings Release Tables | ||||||||
PBF LOGISTICS LP | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Unaudited, in thousands) | ||||||||||||
Three Months Ended March 31, 2018 | ||||||||||||
PBF Logistics | Development | Consolidated | ||||||||||
Revenue: | ||||||||||||
Affiliate | $ | 60,864 | $ | — | $ | 60,864 | ||||||
Third-party | 3,175 | 701 | 3,876 | |||||||||
Total revenue | 64,039 | 701 | 64,740 | |||||||||
Costs and expenses: | ||||||||||||
Operating and maintenance expenses | 18,048 | 1,832 | 19,880 | |||||||||
General and administrative expenses | 4,291 | — | 4,291 | |||||||||
Depreciation and amortization | 6,495 | 148 | 6,643 | |||||||||
Total costs and expenses | 28,834 | 1,980 | 30,814 | |||||||||
Income (loss) from operations | 35,205 | (1,279) | 33,926 | |||||||||
Other expense: | ||||||||||||
Interest expense, net | (9,585) | — | (9,585) | |||||||||
Amortization of loan fees and debt premium | (363) | — | (363) | |||||||||
Net income (loss) | 25,257 | (1,279) | 23,978 | |||||||||
Less: Net loss attributable to Predecessor | — | (1,279) | (1,279) | |||||||||
Less: Net income attributable to noncontrolling interest (g) | 4,022 | — | 4,022 | |||||||||
Net income attributable to the partners | 21,235 | — | 21,235 | |||||||||
Less: Net income attributable to the IDR holder | 2,959 | — | 2,959 | |||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 18,276 | $ | — | $ | 18,276 | ||||||
See Footnotes to Earnings Release Tables | ||||||||||||
*Reflects the results of the Development Assets prior to our acquisition on July 31, 2018. | ||||||||||||
PBF LOGISTICS LP | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||
(Unaudited, amounts in thousands except as indicated) | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2019 | 2018 | |||||||||||
Transportation and Terminaling Segment | ||||||||||||
Terminals | ||||||||||||
Total throughput (barrels per day ("bpd")) (b)(d) | 249,781 | 197,398 | ||||||||||
Lease tank capacity (average lease capacity barrels per month) | 2,415,744 | 2,137,302 | ||||||||||
Pipelines | ||||||||||||
Total throughput (bpd) (b)(d) | 147,149 | 152,757 | ||||||||||
Lease tank capacity (average lease capacity barrels per month) | 1,175,024 | 1,536,912 | ||||||||||
Storage Segment | ||||||||||||
Storage capacity reserved (average shell capacity barrels per month) | 7,932,693 | 4,478,755 | ||||||||||
Cash Flow Information: | ||||||||||||
Net cash provided by (used in): | ||||||||||||
Operating activities | $ | 38,209 | $ | 42,925 | ||||||||
Investing activities | (11,220) | (3,953) | ||||||||||
Financing activities | (30,451) | (36,627) | ||||||||||
Net change in cash | $ | (3,462) | $ | 2,345 | ||||||||
Other Financial Information: | ||||||||||||
EBITDA attributable to PBFX (c) | $ | 36,822 | $ | 36,317 | ||||||||
Adjusted EBITDA (c) | $ | 42,957 | $ | 37,634 | ||||||||
Distributable cash flow (c) | $ | 25,413 | $ | 26,246 | ||||||||
Quarterly distribution declared per unit (e) | $ | 0.5100 | $ | 0.4900 | ||||||||
Distributions (e): | ||||||||||||
Common units | $ | 31,952 | $ | 20,847 | ||||||||
IDR holder - PBF LLC (h) | — | 2,959 | ||||||||||
Total distributions | $ | 31,952 | $ | 23,806 | ||||||||
Coverage ratio (c) | 0.80x | 1.10x | ||||||||||
Capital expenditures | $ | 11,220 | $ | 3,953 | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||
PBF LOGISTICS LP | |||||||||
EARNINGS RELEASE TABLES | |||||||||
KEY OPERATING AND FINANCIAL INFORMATION | |||||||||
(Unaudited, in thousands) | |||||||||
March 31, | December 31, | ||||||||
Balance Sheet Information: | 2019 | 2018 | |||||||
Cash and cash equivalents (f) | $ | 16,446 | $ | 19,908 | |||||
Property, plant and equipment, net | 861,617 | 862,117 | |||||||
Total assets | 957,247 | 956,353 | |||||||
Total debt (f) | 677,773 | 673,324 | |||||||
Total liabilities | 775,571 | 763,163 | |||||||
Partners' equity | 13,985 | 23,718 | |||||||
Noncontrolling interest (g) | 167,691 | 169,472 | |||||||
Total liabilities and equity | 957,247 | 956,353 | |||||||
See Footnotes to Earnings Release Tables | |||||||||
PBF LOGISTICS LP | |||||||||
Three Months Ended | |||||||||
2019 | 2018 | ||||||||
Reconciliation of net income to EBITDA and distributable cash flow (c): | |||||||||
Net income | $ | 22,076 | $ | 23,978 | |||||
Interest expense, net | 10,913 | 9,585 | |||||||
Amortization of loan fees and debt premium | 449 | 363 | |||||||
Accretion on discounted liabilities | 760 | — | |||||||
Depreciation and amortization | 8,721 | 6,643 | |||||||
EBITDA | 42,919 | 40,569 | |||||||
Less: Predecessor EBITDA | — | (1,131) | |||||||
Less: Noncontrolling interest EBITDA (g) | 6,097 | 5,383 | |||||||
EBITDA attributable to PBFX | 36,822 | 36,317 | |||||||
Non-cash unit-based compensation expense | 964 | 834 | |||||||
Cash interest | (11,136) | (9,580) | |||||||
Maintenance capital expenditures attributable to PBFX | (1,237) | (1,325) | |||||||
Distributable cash flow | $ | 25,413 | $ | 26,246 | |||||
Reconciliation of net cash provided by operating activities to EBITDA and | |||||||||
Net cash provided by operating activities | $ | 38,209 | $ | 42,925 | |||||
Change in operating assets and liabilities | (5,239) | (11,107) | |||||||
Interest expense, net | 10,913 | 9,585 | |||||||
Non-cash unit-based compensation expense | (964) | (834 | |||||||
EBITDA | 42,919 | 40,569 | |||||||
Less: Predecessor EBITDA | — | (1,131) | |||||||
Less: Noncontrolling interest EBITDA (g) | 6,097 | 5,383 | |||||||
EBITDA attributable to PBFX | 36,822 | 36,317 | |||||||
Non-cash unit-based compensation expense | 964 | 834 | |||||||
Cash interest | (11,136) | (9,580) | |||||||
Maintenance capital expenditures attributable to PBFX | (1,237) | (1,325) | |||||||
Distributable cash flow | $ | 25,413 | $ | 26,246 | |||||
See Footnotes to Earnings Release Tables | |||||||||
PBF LOGISTICS LP | |||||||||
EARNINGS RELEASE TABLES | |||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||
TO ADJUSTED EBITDA | |||||||||
(Unaudited, in thousands) | |||||||||
Three Months Ended March 31, | |||||||||
2019 | 2018 | ||||||||
Reconciliation of net income to EBITDA and Adjusted EBITDA (c): | |||||||||
Net income | $ | 22,076 | $ | 23,978 | |||||
Interest expense, net | 10,913 | 9,585 | |||||||
Amortization of loan fees and debt premium | 449 | 363 | |||||||
Accretion on discounted liabilities | 760 | — | |||||||
Depreciation and amortization | 8,721 | 6,643 | |||||||
EBITDA | 42,919 | 40,569 | |||||||
Less: Predecessor EBITDA | — | (1,131) | |||||||
Less: Noncontrolling interest EBITDA (g) | 6,097 | 5,383 | |||||||
EBITDA attributable to PBFX | 36,822 | 36,317 | |||||||
Acquisition and transaction costs | 2,153 | 483 | |||||||
Non-cash unit-based compensation expense | 964 | 834 | |||||||
East Coast Terminals environmental remediation costs | 2,136 | — | |||||||
PNGPC tariff true-up adjustments | 882 | — | |||||||
Adjusted EBITDA | $ | 42,957 | $ | 37,634 | |||||
See Footnotes to Earnings Release Tables | |||||||||
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Three Months Ended March 31, 2019 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 65,959 | $ | 12,886 | $ | — | $ | 78,845 | ||||||||
Depreciation and amortization expense | 6,901 | 1,820 | — | 8,721 | ||||||||||||
Income (loss) from operations | 36,551 | 3,657 | (6,010) | 34,198 | ||||||||||||
Interest expense, net, amortization of loan | — | — | 12,122 | 12,122 | ||||||||||||
Capital expenditures | 10,544 | 676 | — | 11,220 | ||||||||||||
Three Months Ended March 31, 2018 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 57,671 | $ | 7,069 | $ | — | $ | 64,740 | ||||||||
Depreciation and amortization expense | 5,718 | 925 | — | 6,643 | ||||||||||||
Income (loss) from operations | 34,226 | 3,991 | (4,291) | 33,926 | ||||||||||||
Interest expense, net and amortization of | — | — | 9,948 | 9,948 | ||||||||||||
Capital expenditures | 3,867 | 86 | — | 3,953 | ||||||||||||
Balance at March 31, 2019 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total assets | $ | 733,191 | $ | 221,319 | $ | 2,737 | $ | 957,247 | ||||||||
Balance at December 31, 2018 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total assets | $ | 731,505 | $ | 219,326 | $ | 5,522 | $ | 956,353 | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||
PBF LOGISTICS LP | |||||||||||
EARNINGS RELEASE TABLES | |||||||||||
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
(Unaudited, in thousands, except per unit data) | |||||||||||
(a) | See discussion of the factors affecting comparability noted on page 5. Our results of operations may not be comparable to
Revenue - On October 1, 2018, we closed on the East Coast Storage Assets Acquisition, which was accounted for as a
On July 31, 2018, we closed on the Development Assets Acquisition with PBF LLC. Commercial agreements with PBF
On April 16, 2018, our wholly-owned subsidiary, PLPT, closed on the Knoxville Terminals Purchase, which was accounted for Operating and maintenance expenses - As a result of our acquisitions and the completion of certain organic growth projects, | ||||||||||
(b) | Calculated as the sum of the average throughput per day for each asset group for the period presented. | ||||||||||
(c) | See "Non-GAAP Financial Measures" on page 6 for definitions of EBITDA, EBITDA attributable to PBFX, Adjusted | ||||||||||
(d) | Operating information reflects activity subsequent to our acquisitions, the execution of the commercial agreements with PBF | ||||||||||
(e) | On May 1, 2019, we announced a quarterly cash distribution of $0.5100 per limited partner unit based on the results of the | ||||||||||
(f) | Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting | ||||||||||
(g) | Our wholly-owned subsidiary, PBFX Op Co, holds a 50% controlling interest in Torrance Valley Pipeline Company LLC ("TVPC"), with | ||||||||||
(h) | Subsequent to the closing of the IDR Restructuring, the IDRs were canceled and exchanged for 10,000,000 newly issued PBFX | ||||||||||
(i) | We base our calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during t | ||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-increases-quarterly-distribution-to-0-51-per-unit-highlights-135-million-common-unit-offering-and-announces-first-quarter-2019-earnings-results-300841529.html
SOURCE PBF Logistics LP
Article Date
5/1/2019PBF Energy Reports First Quarter 2019 Results, Announces Drop-down of Remaining 50% Interest in Torrance Valley Pipeline Company and Declares Dividend of $0.30 Per Share
Source: PR Newswire
PARSIPPANY, N.J., May 1, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today reported first quarter 2019 income from operations of $364.6 million as compared to income from operations of $95.7 million for the first quarter of 2018. Excluding special items, first quarter 2019 loss from operations was $141.4 million as compared to income from operations of $8.0 million for the first 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 54.1% of the limited partner interests as of quarter-end.
The company reported first quarter 2019 net income of $241.4 million and net income attributable to PBF Energy Inc. of $229.2 million or $1.89 per share. This compares to net income of $41.8 million, and net income attributable to PBF Energy Inc. of $30.4 million or $0.27 per share for the first quarter 2018. Special items in the first quarter 2019 results, which increased net income, by a net, after-tax gain of $374.4 million, or $3.07 per share, consisted of a lower-of-cost-or-market ("LCM") inventory adjustment. Adjusted fully-converted net loss for the first quarter 2019, excluding special items, was $143.0 million, or $(1.18) per share on a fully-exchanged, fully-diluted basis, as described below, compared to an adjusted fully-converted net loss of $33.4 million or $(0.29) per share, for the first quarter 2018.
Tom Nimbley, PBF Energy's Chairman and CEO, said, "PBF made the strategic decision to advance the majority of our 2019 maintenance program into the first quarter of 2019. Consequently, first quarter results reflect both the challenging market conditions, in terms of narrow crude differentials and weak product margins, as well as the intentional shift of maintenance into this period of low refining margins. Four out of five of our refineries conducted turnarounds or significant maintenance during the quarter which reduced our overall throughput and increased expenditures." Mr. Nimbley continued, "As a result of this shift in maintenance activity to the first quarter, our refineries are in the favorable position of being able to operate unimpeded for the remainder of the year in an improving market with an even stronger outlook."
Drop-down transaction
On April 24, 2019, PBF Logistics LP (NYSE:PBFX) (the "Partnership" or "PBF Logistics") announced the execution of definitive agreements for the acquisition of 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. PBF currently anticipates closing of the transaction to occur in the second quarter, subject to customary closing conditions.
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 May 30, 2019, to holders of record as of May 15, 2019.
Outlook
For the second quarter 2019, we expect East Coast total throughput to average 320,000 to 340,000 barrels per day; Mid-Continent total throughput is expected to average 160,000 to 170,000 barrels per day; Gulf Coast total throughput is expected to average 190,000 to 200,000 barrels per day and West Coast total throughput is expected to average 160,000 to 170,000 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 190,000 to 200,000 barrels per day and West Coast total throughput is expected to average 160,000 to 170,000 barrels per day.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to Non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income, Adjusted Fully-Converted Net Income excluding special items, Adjusted Fully-Converted Net Income 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 Wednesday, May 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 (800) 894-5910 or (785) 424-1052, conference ID: PBFQ119. The audio replay will be available two hours after the end of the call through May 15, 2019, by dialing (800) 723-0394 or (402) 220-2649.
Forward-Looking Statements
Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the company's control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the company's filings with the SEC, as well as the risks disclosed in PBF Logistics LP's SEC filings and any impact PBF Logistics LP may have on the company's credit rating, cost of funds, employees, customer and vendors; risk relating to the securities markets generally; and the impact of adverse market conditions affecting the company, unanticipated developments, regulatory approvals, changes in laws and other events that negatively impact the company. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.
PBF Energy Inc. also currently indirectly owns the general partner and approximately 48.3% 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 | ||||||||
March 31, | ||||||||
2019 | 2018 | |||||||
Revenues | $ | 5,216.2 | $ | 5,802.8 | ||||
Cost and expenses: | ||||||||
Cost of products and other | 4,209.2 | 5,132.1 | ||||||
Operating expenses (excluding depreciation and amortization expense as reflected below) | 479.0 | 426.1 | ||||||
Depreciation and amortization expense | 103.0 | 83.3 | ||||||
Cost of sales | 4,791.2 | 5,641.5 | ||||||
General and administrative expenses (excluding depreciation and amortization expense as reflected below) | 57.6 | 62.8 | ||||||
Depreciation and amortization expense | 2.8 | 2.7 | ||||||
Loss on sale of assets | — | 0.1 | ||||||
Total cost and expenses | 4,851.6 | 5,707.1 | ||||||
Income from operations | 364.6 | 95.7 | ||||||
Other income (expense): | ||||||||
Change in fair value of catalyst leases | (3.1) | — | ||||||
Interest expense, net | (39.5) | (43.2) | ||||||
Other non-service components of net periodic benefit cost | (0.1) | 0.3 | ||||||
Income before income taxes | 321.9 | 52.8 | ||||||
Income tax expense | 80.5 | 11.0 | ||||||
Net income | 241.4 | 41.8 | ||||||
Less: net income attributable to noncontrolling interests | 12.2 | 11.4 | ||||||
Net income attributable to PBF Energy Inc. stockholders | $ | 229.2 | $ | 30.4 | ||||
Net income available to Class A common stock per share: | ||||||||
Basic | $ | 1.91 | $ | |||||
Diluted | $ | 1.89 | $ | 0.27 | ||||
Weighted-average shares outstanding-basic | 119,880,915 | 110,820,379 | ||||||
Weighted-average shares outstanding-diluted | 122,175,744 | 115,193,491 | ||||||
Dividends per common share | $ | $ | 0.30 | |||||
Adjusted fully-converted net income and adjusted fully-converted net income per fully exchanged, fully diluted shares outstanding (Note 1): | ||||||||
Adjusted fully-converted net income | $ | 231.4 | $ | 31.1 | ||||
Adjusted fully-converted net income per fully exchanged, fully diluted share | $ | 1.89 | $ | 0.27 | ||||
Adjusted fully-converted shares outstanding - diluted (Note 6) | 122,175,744 | 115,193,491 | ||||||
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) | ||||||||||||||
Three Months Ended | ||||||||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED FULLY-CONVERTED NET INCOME AND ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) EXCLUDING SPECIAL ITEMS (Note 1) | March 31, | |||||||||||||
2019 | 2018 | |||||||||||||
Net income attributable to PBF Energy Inc. stockholders | $ | 229.2 | $ | 30.4 | ||||||||||
Less: Income allocated to participating securities | 0.1 | 0.2 | ||||||||||||
Income available to PBF Energy Inc. stockholders - basic | 229.1 | 30.2 | ||||||||||||
Add: Net income attributable to noncontrolling interest (Note 2) | 3.1 | 1.3 | ||||||||||||
Less: Income tax expense (Note 3) | (0.8) | (0.4) | ||||||||||||
Adjusted fully-converted net income | $ | 231.4 | $ | 31.1 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | (506.0) | (87.7) | ||||||||||||
Less: Recomputed income taxes on special items | 131.6 | 23.2 | ||||||||||||
Adjusted fully-converted net income (loss) excluding special items | $ | (143.0) | $ | (33.4) | ||||||||||
Weighted-average shares outstanding of PBF Energy Inc. | 119,880,915 | 110,820,379 | ||||||||||||
Conversion of PBF LLC Series A Units (Note 5) | 1,206,325 | 3,535,140 | ||||||||||||
Common stock equivalents (Note 6) | 1,088,504 | 837,972 | ||||||||||||
Fully-converted shares outstanding - diluted | 122,175,744 | 115,193,491 | ||||||||||||
Adjusted fully-converted net income per fully exchanged, fully diluted shares outstanding | $ | 1.89 | $ | 0.27 | ||||||||||
Adjusted fully-converted net loss excluding special items per fully exchanged, fully diluted shares outstanding (Note 4, 6) | $ | (1.18) | $ | (0.29) | ||||||||||
Three Months Ended | ||||||||||||||
RECONCILIATION OF INCOME FROM OPERATIONS TO INCOME (LOSS) FROM OPERATIONS EXCLUDING SPECIAL ITEMS | March 31, | |||||||||||||
2019 | 2018 | |||||||||||||
Income from operations | $ | 364.6 | $ | 95.7 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | (506.0) | (87.7) | ||||||||||||
Income (loss) from operations excluding special items | $ | (141.4) | $ | 8.0 | ||||||||||
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 | ||||||||||||||
March 31, | ||||||||||||||
RECONCILIATION OF NET INCOME TO EBITDA AND EBITDA EXCLUDING SPECIAL ITEMS | 2019 | 2018 | ||||||||||||
Net income | $ | 241.4 | $ | 41.8 | ||||||||||
Add: Depreciation and amortization expense | 105.8 | 86.0 | ||||||||||||
Add: Interest expense, net | 39.5 | 43.2 | ||||||||||||
Add: Income tax expense | 80.5 | 11.0 | ||||||||||||
EBITDA | $ | 467.2 | $ | 182.0 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | (506.0) | (87.7) | ||||||||||||
EBITDA excluding special items | $ | (38.8) | $ | 94.3 | ||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA | 2019 | 2018 | ||||||||||||
EBITDA | $ | 467.2 | $ | 182.0 | ||||||||||
Add: Stock-based compensation | 8.0 | 5.1 | ||||||||||||
Add: Net non-cash change in fair value of catalyst leases | 3.1 | — | ||||||||||||
Add: Non-cash LCM inventory adjustment (Note 4) | (506.0) | (87.7) | ||||||||||||
Adjusted EBITDA | $ | (27.7) | $ | 99.4 | ||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||
EARNINGS RELEASE TABLES | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||||||||
(Unaudited, in millions) | |||||||||||
March 31, | December 31, | ||||||||||
2019 | 2018 | ||||||||||
Balance Sheet Data: | |||||||||||
Cash and cash equivalents | $ | 418.3 | $ | 597.3 | |||||||
Inventories | 2,566.5 | 1,865.8 | |||||||||
Total assets | 9,126.1 | 8,005.4 | |||||||||
Total debt | 2,191.0 | 1,933.7 | |||||||||
Total equity | 3,446.8 | 3,248.5 | |||||||||
Total equity excluding special items (Note 4, 13) | $ | 3,375.6 | $ | 3,551.7 | |||||||
Total debt to capitalization ratio (Note 13) | 39 | % | 37 | % | |||||||
Total debt to capitalization ratio, excluding special items (Note 13) | 39 | % | 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) | |||||||||||
Three Months Ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
Cash flows used in operating activities | $ | (149.9) | $ | (85.4) | |||||||
Cash flows used in investing activities | (260.6) | (93.3) | |||||||||
Cash flows provided by (used in) financing activities | 231.5 | (31.3) | |||||||||
Net decrease in cash and cash equivalents | (179.0) | (210.0) | |||||||||
Cash and cash equivalents, beginning of period | 597.3 | 573.0 | |||||||||
Cash and cash equivalents, end of period | $ | 418.3 | $ | 363.0 | |||||||
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 March 31, 2019 | |||||||||||||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated Total | |||||||||||||||
Revenues | $ | 5,208.7 | $ | 78.8 | $ | — | $ | (71.3) | $ | 5,216.2 | |||||||||
Depreciation and amortization expense | 94.3 | 8.7 | 2.8 | — | 105.8 | ||||||||||||||
Income (loss) from operations (Note 14) | 389.5 | 34.2 | (54.4) | (4.7) | 364.6 | ||||||||||||||
Interest expense, net | 0.5 | 12.1 | 26.9 | — | 39.5 | ||||||||||||||
Capital expenditures | 247.1 | 11.2 | 2.3 | — | 260.6 | ||||||||||||||
Three Months Ended March 31, 2018 | |||||||||||||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated Total | |||||||||||||||
Revenues | $ | 5,799.1 | $ | 64.7 | $ | — | $ | (61.0) | $ | 5,802.8 | |||||||||
Depreciation and amortization expense | 76.7 | 6.6 | 2.7 | — | 86.0 | ||||||||||||||
Income (loss) from operations (Note 14) | 127.0 | 33.9 | (61.2) | (4.0) | 95.7 | ||||||||||||||
Interest expense, net | 1.9 | 9.9 | 31.4 | — | 43.2 | ||||||||||||||
Capital expenditures | 88.3 | 4.0 | 1.0 | — | 93.3 | ||||||||||||||
Balance at March 31, 2019 | |||||||||||||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||||||||||||
Total Assets (Note 15) | $ | 8,158.2 | $ | 957.2 | $ | 54.6 | $ | (43.9) | $ | 9,126.1 | |||||||||
Balance at December 31, 2018 | |||||||||||||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||||||||||||
Total Assets (Note 15) | $ | 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 | ||||||||||||
March 31, | ||||||||||||
Market Indicators (dollars per barrel) (Note 9) | 2019 | 2018 | ||||||||||
Dated Brent crude oil | $ | 63.26 | $ | 66.90 | ||||||||
West Texas Intermediate (WTI) crude oil | $ | 54.87 | $ | 62.90 | ||||||||
Light Louisiana Sweet (LLS) crude oil | $ | 62.38 | $ | 65.84 | ||||||||
Alaska North Slope (ANS) crude oil | $ | 64.39 | $ | 67.20 | ||||||||
Crack Spreads: | ||||||||||||
Dated Brent (NYH) 2-1-1 | $ | 9.85 | $ | 12.80 | ||||||||
WTI (Chicago) 4-3-1 | $ | 12.33 | $ | 11.78 | ||||||||
LLS (Gulf Coast) 2-1-1 | $ | 9.89 | $ | 12.84 | ||||||||
ANS (West Coast) 4-3-1 | $ | 13.54 | $ | 16.42 | ||||||||
Crude Oil Differentials: | ||||||||||||
Dated Brent (foreign) less WTI | $ | 8.39 | $ | 4.00 | ||||||||
Dated Brent less Maya (heavy, sour) | $ | 4.50 | $ | 9.15 | ||||||||
Dated Brent less WTS (sour) | $ | 9.55 | $ | 5.40 | ||||||||
Dated Brent less ASCI (sour) | $ | 2.35 | $ | 4.57 | ||||||||
WTI less WCS (heavy, sour) | $ | 9.96 | $ | 26.06 | ||||||||
WTI less Bakken (light, sweet) | $ | (0.25) | $ | 1.04 | ||||||||
WTI less Syncrude (light, sweet) | $ | (0.04) | $ | 0.30 | ||||||||
WTI less LLS (light, sweet) | $ | (7.51) | $ | (2.94) | ||||||||
WTI less ANS (light, sweet) | $ | (9.52) | $ | (4.30) | ||||||||
Natural gas (dollars per MMBTU) | $ | 2.87 | $ | 2.79 | ||||||||
Key Operating Information | ||||||||||||
Production (barrels per day ("bpd") in thousands) | 737.7 | 803.0 | ||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 743.1 | 799.6 | ||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 66.9 | 72.0 | ||||||||||
Consolidated gross margin per barrel of throughput | $ | 6.35 | $ | 2.26 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 6.38 | $ | 7.26 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 6.78 | $ | 5.72 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12) | ||||||||||||
Heavy | 32 | % | 34 | % | ||||||||
Medium | 32 | % | 35 | % | ||||||||
Light | 24 | % | 20 | % | ||||||||
Other feedstocks and blends | 12 | % | 11 | % | ||||||||
Total throughput | 100 | % | 100 | % | ||||||||
Yield (% of total throughput) | ||||||||||||
Gasoline and gasoline blendstocks | 46 | % | 51 | % | ||||||||
Distillates and distillate blendstocks | 32 | % | 31 | % | ||||||||
Lubes | 1 | % | 1 | % | ||||||||
Chemicals | 2 | % | 2 | % | ||||||||
Other | 18 | % | 15 | % | ||||||||
Total yield | 99 | % | 100 | % | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2019 | 2018 | |||||||||||
Supplemental Operating Information - East Coast (Delaware City and Paulsboro) | ||||||||||||
Production (bpd in thousands) | 299.7 | 329.6 | ||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 305.0 | 332.9 | ||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 27.5 | 30.0 | ||||||||||
Gross margin per barrel of throughput | $ | 1.16 | $ | 1.23 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 3.35 | $ | 6.47 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 6.37 | $ | 5.16 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 25 | % | 23 | % | ||||||||
Medium | 52 | % | 52 | % | ||||||||
Light | 4 | % | 10 | % | ||||||||
Other feedstocks and blends | 19 | % | 15 | % | ||||||||
Total throughput | 100 | % | 100 | % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 43 | % | 48 | % | ||||||||
Distillates and distillate blendstocks | 31 | % | 32 | % | ||||||||
Lubes | 3 | % | 3 | % | ||||||||
Chemicals | 1 | % | 1 | % | ||||||||
Other | 20 | % | 15 | % | ||||||||
Total yield | 98 | % | 99 | % | ||||||||
Supplemental Operating Information - Mid-Continent (Toledo) | ||||||||||||
Production (bpd in thousands) | 150.2 | 125.0 | ||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 148.0 | 122.9 | ||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 13.3 | 11.1 | ||||||||||
Gross margin per barrel of throughput | $ | 15.22 | $ | 0.12 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 12.28 | $ | 8.22 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 5.55 | $ | 6.19 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Medium | 29 | % | 37 | % | ||||||||
Light | 70 | % | 62 | % | ||||||||
Other feedstocks and blends | 1 | % | 1 | % | ||||||||
Total throughput | 100 | % | 100 | % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 53 | % | 60 | % | ||||||||
Distillates and distillate blendstocks | 36 | % | 32 | % | ||||||||
Chemicals | 6 | % | 5 | % | ||||||||
Other | 6 | % | 5 | % | ||||||||
Total yield | 101 | % | 102 | % | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||
(Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2019 | 2018 | |||||||||||
Supplemental Operating Information - Gulf Coast (Chalmette) | ||||||||||||
Production (bpd in thousands) | 165.0 | 167.1 | ||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 164.6 | 169.2 | ||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 14.8 | 15.2 | ||||||||||
Gross margin per barrel of throughput | $ | 4.48 | $ | 0.06 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 3.33 | $ | 4.45 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 5.89 | $ | 5.01 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 34 | % | 41 | % | ||||||||
Medium | 16 | % | 19 | % | ||||||||
Light | 37 | % | 32 | % | ||||||||
Other feedstocks and blends | 13 | % | 8 | % | ||||||||
Total throughput | 100 | % | 100 | % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 40 | % | 40 | % | ||||||||
Distillates and distillate blendstocks | 35 | % | 33 | % | ||||||||
Chemicals | 2 | % | 1 | % | ||||||||
Other | 23 | % | 25 | % | ||||||||
Total yield | 100 | % | 99 | % | ||||||||
Supplemental Operating Information - West Coast (Torrance) | ||||||||||||
Production (bpd in thousands) | 122.8 | 181.3 | ||||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 125.5 | 174.6 | ||||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 11.3 | 15.7 | ||||||||||
Gross margin per barrel of throughput | $ | 7.42 | $ | 5.26 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ | 10.76 | $ | 10.81 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ | 10.40 | $ | 7.13 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 82 | % | 80 | % | ||||||||
Medium | 8 | % | 4 | % | ||||||||
Other feedstocks and blends | 10 | % | 16 | % | ||||||||
Total throughput | 100 | % | 100 | % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 51 | % | 60 | % | ||||||||
Distillates and distillate blendstocks | 24 | % | 28 | % | ||||||||
Other | 23 | % | 16 | % | ||||||||
Total yield | 98 | % | 104 | % | ||||||||
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 | ||||||||||||||||||||
March 31, 2019 | March 31, 2018 | ||||||||||||||||||||
RECONCILIATION OF CONSOLIDATED GROSS MARGIN TO GROSS REFINING MARGIN AND GROSS REFINING MARGIN EXCLUDING SPECIAL ITEMS | $ | per barrel | $ | per barrel | |||||||||||||||||
Calculation of consolidated gross margin: | |||||||||||||||||||||
Revenues | $ | 5,216.2 | $ | 77.99 | $ | 5,802.8 | $ | 80.64 | |||||||||||||
Less: Cost of Sales | 4,791.2 | 71.64 | 5,641.5 | 78.38 | |||||||||||||||||
Consolidated gross margin | $ | 425.0 | $ | 6.35 | $ | 161.3 | $ | 2.26 | |||||||||||||
Reconciliation of consolidated gross margin to gross refining margin: | |||||||||||||||||||||
Consolidated gross margin | $ | 425.0 | $ | 6.35 | $ | 161.3 | $ | 2.26 | |||||||||||||
Add: PBFX operating expense | 29.9 | 0.45 | 18.0 | 0.25 | |||||||||||||||||
Add: PBFX depreciation expense | 8.7 | 0.13 | 6.5 | 0.08 | |||||||||||||||||
Less: Revenues of PBFX | (78.8) | (1.18) | (64.0) | (0.89) | |||||||||||||||||
Add: Refinery operating expense | 453.4 | 6.78 | 411.4 | 5.72 | |||||||||||||||||
Add: Refinery depreciation expense | 94.3 | 1.41 | 76.8 | 1.07 | |||||||||||||||||
Gross refining margin | $ | 932.5 | $ | 13.94 | $ | 610.0 | $ | 8.49 | |||||||||||||
Special Items (Note 4): | |||||||||||||||||||||
Add: Non-cash LCM inventory adjustment | (506.0) | (7.56) | (87.7) | (1.23) | |||||||||||||||||
Gross refining margin excluding special items | $ | 426.5 | $ | 6.38 | $ | 522.3 | $ | 7.26 | |||||||||||||
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. | ||||||||||||||||||
(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 26.0% 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. | ||||||||||||||||||
(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 months ended March 31, 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. | ||||||||||||||||||
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 | ||||
The following table includes the corresponding impact of changes in the LCM inventory reserve on income from operations and net income for the periods presented (in millions): | ||||||
Three Months Ended | ||||||
2019 | 2018 | |||||
Net LCM inventory adjustment benefit in income from operations | $ | 506.0 | $ | 87.7 | ||
Net LCM inventory adjustment benefit in net income | 374.4 | 64.5 | ||||
(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 months ended March 31, 2019 and 2018, respectively. Common stock equivalents exclude the effects of options and warrants to purchase 5,111,617 and 3,982,000 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three months ended March 31, 2019 and 2018, respectively. For periods showing a net loss, all common stock equivalents 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 PBF Energy's 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 March 31, 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. | ||||||||||
March 31, | December 31, | |||||||||
2019 | 2018 | |||||||||
(in millions) | ||||||||||
Total debt | $ | 2,191.0 | $ | 1,933.7 | ||||||
Total equity | 3,446.8 | 3,248.5 | ||||||||
Total capitalization | $ | 5,637.8 | $ | 5,182.2 | ||||||
Total debt | $ | 2,191.0 | $ | 1,933.7 | ||||||
Total equity excluding special items | 3,375.6 | 3,551.7 | ||||||||
Total capitalization excluding special items | $ | 5,566.6 | $ | 5,485.4 | ||||||
Total equity | $ | 3,446.8 | $ | 3,248.5 | ||||||
Special Items (Note 4) | ||||||||||
Add: Non-cash LCM inventory adjustment | 145.8 | 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 | 19.2 | (112.4) | ||||||||
Add: Net tax expense on TCJA related special items | 20.2 | 20.2 | ||||||||
Net impact of special items to equity | (71.2) | 303.2 | ||||||||
Total equity excluding special items | $ | 3,375.6 | $ | 3,551.7 | ||||||
Total debt | $ | 2,191.0 | $ | 1,933.7 | ||||||
Less: Cash and cash equivalents | 418.3 | 597.3 | ||||||||
Net Debt | $ | 1,772.7 | $ | 1,336.4 | ||||||
Total debt to capitalization ratio | 39 | % | 37 | % | ||||||
Total debt to capitalization ratio, excluding special items | 39 | % | 35 | % | ||||||
Net debt to capitalization ratio | 34 | % | 29 | % | ||||||
Net debt to capitalization ratio, excluding special items | 34 | % | 27 | % | ||||||
(14) 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. |
(15) 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. |
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-energy-reports-first-quarter-2019-results-announces-drop-down-of-remaining-50-interest-in-torrance-valley-pipeline-company-and-declares-dividend-of-0-30-per-share-300841502.html
SOURCE PBF Energy Inc.
Article Date
5/1/2019PBF Logistics Announces Acquisition of Remaining 50% Interest in Torrance Valley Pipeline Company and Provides First Quarter Interim Update
Source: PR Newswire
PARSIPPANY, N.J., April 24, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) (the "Partnership" or "PBF Logistics") announced today the execution of definitive agreements for the acquisition of the remaining fifty percent interest in Torrance Valley Pipeline Company LLC ("TVPC") from an affiliate of PBF Energy Inc. (NYSE: PBF) for total consideration of approximately $200 million in cash. The Partnership and PBF Energy currently anticipate closing of the transaction to occur in the second quarter, subject to customary closing conditions. The acquisition is expected to be financed through a combination of $135 million of gross proceeds from PBFX's over-subscribed registered direct offering of common units to certain institutional investors announced today and a $65 million draw-down from the Partnership's senior secured revolving credit facility.
The acquisition of TVPC by the Partnership immediately doubles its position in one of its core assets and is immediately accretive to distributable cash flow. Pro forma for the transaction, the Partnership expects 2019 coverage to be consistent with its original guidance of approximately 1.05x based on current expectations. The Partnership reiterates its prior guidance of maintaining leverage in the three-to-four times run-rate EBITDA range and its commitment to a long-term coverage ratio of 1.15x.
PBFX and PBF Energy Chief Executive Officer Thomas Nimbley said, "The acquisition of the remaining 50 percent interest in TVPC reflects PBFX's ongoing commitment to deliver sustained growth to our unitholders by adding high-quality assets to our earnings base. The equity issuance and drop-down transaction were executed in response to high investor demand for investable opportunities in PBF Logistics." Mr. Nimbley continued, "With this transaction, in combination with our organic growth efforts, we exceed our near-term distribution growth funding requirements and achieve the flexibility to execute our strategic plan without accessing public equity to fund growth capital through 2020."
About the TVPC Transaction
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.
Pursuant to the agreement, upon closing, the Partnership would consolidate the existing ten-year term transportation services agreements with subsidiaries of PBF Energy containing minimum volume throughput commitments ("MVCs") of approximately 50,000 barrels per day for the M1 and M55 pipelines; increased MVCs of approximately 75,000 barrels per day for the M70 pipeline, from current MVCs of 70,000 bpd, and for storage capacity at certain tanks representing approximately 50 percent of the total available shell capacity of the storage facilities. Based on the TVPC ownership interest to be acquired, current cost structure, increased fees payable by PBF Energy under the amended M70 services agreement and the expected minimum throughput rates, the newly-acquired interests of TVPC would be expected to generate, on an annualized run-rate basis subsequent to closing the proposed acquisition, estimated annual net income of approximately $15.5 million based on revenues of approximately $44.0 million and estimated earnings before interest, taxes, depreciation and amortization ("EBITDA") of approximately $25.0 million. Annual maintenance capital expenditures for the Partnership's acquired interest would be expected to average approximately $1.5 million.
The terms of the potential transaction have been approved by the Conflicts Committee of the Board of Directors of the general partner of PBF Logistics. The Conflicts Committee is composed of independent directors and was advised by Piper, Jaffray & Co., its financial advisor, and Baker Botts LLP, its legal counsel.
First Quarter Interim Update
The preliminary financial data discussed below has been prepared by, and is the responsibility of, our management and has not been audited or reviewed by our independent registered public accounting firm. We have provided a range for our current preliminary unaudited estimates of revenue, net income, EBITDA and EBITDA attributable to PBFX discussed below because our financial closing procedures for the first quarter of fiscal year 2019 are not yet complete and are subject to final adjustments and other developments that may arise between now and the time the financial results for the first quarter of fiscal year 2019 are finalized.
The preliminary first quarter estimates are based upon assumptions we believe to be reasonable but include information from third parties that is subject to further review and verification. It is possible that our final reported results may not be within the ranges we currently estimate, and the difference may be material. We expect to report financial results related to the quarter ended March 31, 2019 on or about May 1, 2019.
The following are our current preliminary estimates for the three month period ended March 31, 2019:
As of March 31, 2019, the Partnership had approximately $352 million of liquidity, including approximately $16 million in cash and cash equivalents, and access to approximately $336 million under its revolving credit facility.
Non-GAAP Measures
The Partnership defines EBITDA as net income (loss) before net interest expense including amortization of loan fees and debt premium and accretion on discounted liabilities, income tax expense, depreciation and amortization expense. The Partnership defines EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense including amortization of loan fees and debt premium and accretion on discounted liabilities, income tax expense, depreciation and amortization expense attributable to PBFX, which excludes results of acquisitions from affiliates of PBF Energy prior to the effective dates of such transactions. The Partnership defines Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, unit-based compensation and items that meet the conditions of unusual, infrequent and/or non-recurring charges. EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA are supplemental measures of performance that are not required by or presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We use these non-GAAP financial measure as a supplement to our GAAP results in order to provide a more complete understanding of the factors and trends affecting our business and to assist in evaluating our ongoing operating performance for the current reporting period in comparison to other reporting periods. EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA are measures of operating performance that are not defined by GAAP and should not be considered a substitute for net income, operating income or any other measure of financial performance in accordance with GAAP.
Also, because EBITDA, EBITDA attributable to PBFX 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, EBITDA attributable to PBFX and Adjusted EBITDA have their limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Some of the limitations of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA are:
PBF Logistics LP Reconciliation of Amounts (unaudited, millions)
Reconciliation of preliminary first quarter net income to EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA:
Three Months Ended | |||
March 31, 2019 | |||
Range | |||
Low | High | ||
Net income | $21.6 | $22.6 | |
Add: Depreciation and amortization expense | 8.7 | 8.7 | |
Add: Interest expense, net and other financing costs | 12.1 | 12.1 | |
EBITDA | 42.4 | 43.4 | |
Less: Noncontrolling interest EBITDA | 6.1 | 6.1 | |
EBITDA attributable to PBFX | 36.3 | 37.3 | |
Add: Transaction, unit-based compensation and non-recurring charges | 6.1 | 6.1 | |
Adjusted EBITDA | $42.4 | $43.4 | |
Reconciliation of fifty percent TVPC acquired interest, inclusive of the amendment to the M70 services agreement, estimated annualized run-rate Net Income to annualized run-rate EBITDA:
Annualized run-rate net income | $15.5 | |
Add: Depreciation and amortization expense | 5.5 | |
Add: Interest expense, net and other financing costs | 4.0 | |
Annualized run-rate EBITDA | $25.0 |
Due to the forward-looking nature of annualized run-rate EBITDA, information to reconcile annualized run-rate EBITDA to annualized run-rate cash flow from operating activities is not available as management is unable to project working capital changes for future periods at this time.
Due to the forward-looking nature of forecasted and long-term, consolidated run-rate EBITDA and distributable cash flow, information to reconcile long-term, consolidated run-rate EBITDA, distributable cash flow and coverage ratios to long-term, consolidated run-rate net income and cash flow from operating activities is not available as management is unable to project financing terms and working capital changes for future periods at this time.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Forward-looking Statements
Disclosures in this press release contain "forward-looking statements." All statements, other than statements of historical facts, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the accretion expected to be realized by the Partnership as a result of the acquisition, the information under
"First Quarter Interim Update" and the expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of the Partnership and its subsidiaries. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports filed by the Partnership with the Securities and Exchange Commission. Any forward-looking statement applies only as of the date on which such statement is made and the Partnership does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-announces-acquisition-of-remaining-50-interest-in-torrance-valley-pipeline-company-and-provides-first-quarter-interim-update-300837925.html
SOURCE PBF Logistics LP
Article Date
4/24/2019PBF Logistics Announces Registered Direct Offering of 6,585,500 Common Units
Source: PR Newswire
PARSIPPANY, N.J., April 24, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership"), a master limited partnership formed by PBF Energy Inc., announced that it has entered into definitive subscription agreements with certain institutional investors, pursuant to which the Partnership will sell an aggregate of 6,585,500 common units directly to such institutional investors in a registered direct offering for gross proceeds of approximately $135.0 million. The offering is expected to close on April 29, 2019, subject to customary closing conditions.
The Partnership plans to use the net proceeds from this offering, after placement fees and other estimated offering expenses, to fund a portion of the purchase price for its acquisition from an affiliate of PBF Energy Inc. of the remaining 50 percent interest in the Torrance Valley Pipeline Company LLC that it does not currently own. If the Partnership does not consummate such transaction, the Partnership intends to use the net proceeds from this offering for general partnership purposes, which may include reducing indebtedness outstanding under its revolving credit facility. The offering is not conditioned on the closing of the acquisition.
RBC Capital Markets, LLC acted as the placement agent for the transaction.
The offering was made pursuant to an effective shelf registration statement that was previously filed with the Securities and Exchange Commission ("SEC"). This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities described herein, nor shall there be any sale of these securities, in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offering is being made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended, copies of which may be obtained at the SEC's website at http://www.sec.gov. Copies of the prospectus supplement and accompanying prospectus may also be obtained from RBC Capital Markets, LLC, Attention: Equity Syndicate, 200 Vesey Street, 8th Floor, New York, NY 10281-8098, by telephone toll-free at (877) 822-4098, or by e-mail to equityprospectus@rbccm.com.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting the Partnership's logistics and other assets, the possibility that the Partnership may not consummate the proposed acquisition, the Partnership's plans for financing the proposed acquisition, and other risks inherent in the Partnership's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see the Partnership's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-announces-registered-direct-offering-of-6-585-500-common-units-300837923.html
SOURCE PBF Logistics LP
Article Date
4/24/20193/22/2019 - PBF Energy to Attend Industry Conferences
PBF Energy to Attend Industry Conferences
Source: PR Newswire
PARSIPPANY, N.J., March 22, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be attending the Scotia Howard Weil Energy Conference being held on March 24-26, 2019, and the Mizuho Energy Summit on March 31 to April 1, 2019.
Any company presentation materials will be made available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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 54% 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-to-attend-industry-conferences-300817072.html
SOURCE PBF Energy Inc.
Article Date
3/22/2019PBF Logistics to Release First Quarter 2019 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., March 13, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that it will release its earnings results for the first quarter 2019 on Wednesday, May 1, 2019. The company will host a conference call and webcast regarding first quarter results and other business matters on Wednesday, May 1, 2019, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (877) 876-9173 or (785) 424-1667, conference ID: PBFXQ119. The audio replay will be available two hours after the end of the call through May 15, 2019, by dialing (800) 283-5758 or (402) 220-0863.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-release-first-quarter-2019-earnings-results-300812055.html
SOURCE PBF Logistics LP
Article Date
3/13/2019PBF Energy to Release First Quarter 2019 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., March 13, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that it will release its earnings results for the first quarter 2019 on Wednesday, May 1, 2019. The company will host a conference call and webcast regarding first quarter results and other business matters on Wednesday, May 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 (800) 894-5910 or (785) 424-1052, conference ID: PBFQ119. The audio replay will be available two hours after the end of the call through May 15, 2019, by dialing (800) 723-0394 or (402) 220-2649.
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 54% 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-to-release-first-quarter-2019-earnings-results-300812054.html
SOURCE PBF Energy Inc.
Article Date
3/13/2019PBF Logistics Announces Availability of 2018 K-1 Tax Packages
Source: PR Newswire
PARSIPPANY, N.J., March 6, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announces availability of 2018 K-1 Tax Packages. The packages are available online and may be accessed at:
- https://www.partnerdatalink.com/pbflogistics.
As of March 6, 2019, PBFX is in the process of mailing the 2018 tax packages to unitholders.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-announces-availability-of-2018-k-1-tax-packages-300808105.html
SOURCE PBF Logistics LP
Article Date
3/6/2019PBF Energy and PBF Logistics Close Previously Announced IDR Simplification
Source: PR Newswire
PARSIPPANY, N.J., Feb. 28, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) ("PBF Energy") and PBF Logistics LP (NYSE:PBFX) ("PBF Logistics") today closed the IDR Simplification transaction previously announced on February 14, 2019. As a result, PBF Energy holds approximately 30 million PBF Logistics common units, representing 54% of the outstanding common units, with a market value of approximately $655 million based on today's closing price of $21.84.
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 54% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
About PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-energy-and-pbf-logistics-close-previously-announced-idr-simplification-300804770.html
SOURCE PBF Energy Inc.; PBF Logistics LP
Article Date
3/1/20192/21/2019 - PBF Logistics Filed 2018 Form 10-K
PBF Logistics Filed 2018 Form 10-K
Source: PR Newswire
PARSIPPANY, N.J., Feb. 21, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K for the fiscal year ended December 31, 2018. The filing can be viewed on the Partnership's website at www.pbflogistics.com.
Upon written request, limited partners may receive, free of charge, a hard copy of the Partnership's Annual Report on Form 10-K (including complete audited financial statements). Requests should be communicated in writing to PBF Logistics LP, Attention: Investor Relations, at 1 Sylvan Way, 2nd Floor, Parsippany, New Jersey 07054.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-filed-2018-form-10-k-300800112.html
SOURCE PBF Logistics LP
Article Date
2/21/20192/21/2019 - PBF Energy to Attend Industry Conferences
PBF Energy to Attend Industry Conferences
Source: PR Newswire
PARSIPPANY, N.J., Feb. 21, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be attending the Simmons Energy Conference being held on February 26-28, 2019, and the Bank of America Merrill Lynch 2019 Refining Conference on March 7, 2019.
Any company presentation materials will be made available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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% 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-to-attend-industry-conferences-300800111.html
SOURCE PBF Energy Inc.
Article Date
2/21/2019PBF Energy Reports Fourth Quarter 2018 Results, Declares Dividend of $0.30 Per Share
Source: PR Newswire
PARSIPPANY, N.J., Feb. 14, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today reported fourth quarter 2018 loss from operations of $446.2 million as compared to income from operations of $254.6 million for the fourth quarter of 2017. Excluding special items, fourth quarter 2018 income from operations was $213.2 million as compared to income from operations of $57.0 million for the fourth quarter of 2017.
The company reported fourth quarter 2018 net loss of $346.7 million and net loss attributable to PBF Energy Inc. of $353.7 million or $2.97 per share. This compares to net income of $260.4 million, and net income attributable to PBF Energy Inc. of $241.9 million or $2.14 per share for the fourth quarter of 2017. Special items in the fourth quarter 2018 results, which decreased net income, by a net, after-tax charge of $483.5 million, or $4.00 per share, consisted of a lower-of-cost-or-market ("LCM") inventory adjustment and a charge associated with the residual costs on the early return of certain leased railcars, offset by a benefit related to the change in our Tax Receivable Agreement liability. Adjusted fully-converted net income for the fourth quarter 2018, excluding special items, was $125.8 million, or $1.03 per share on a fully-exchanged, fully-diluted basis, as described below, compared to an adjusted fully-converted net loss of $4.4 million or $0.04 per share, for the fourth quarter 2017.
Tom Nimbley, PBF Energy's Chairman and CEO, said, "Our strong fourth quarter results capped off a solid year for PBF Energy. We were able to demonstrate the flexibility of our high-complexity refining system by sourcing advantaged crude to help blunt the impact of an oversupplied product market, especially gasoline." Mr. Nimbley continued, "Looking forward, our outlook remains positive. Strong clean product demand should return inventories to their seasonal norms as we move into the spring maintenance season and make the shift to summer-grade gasoline. Additionally, we are strategically positioning PBF in front of the upcoming IMO marine fuel regulation changes by advancing our turnaround activities and completing the bulk of our major maintenance in the first half of 2019. Finally, PBF Energy continues to be a supportive sponsor of PBF Logistics and the elimination of the IDRs highlights our commitment to the future of PBF Logistics and its value as a partner in the growth of both companies."
Income from operations was $358.1 million for the year-ended December 31, 2018 as compared to income from operations of $731.6 million for the year-ended December 31, 2017. Excluding special items, income from operations was $718.0 million for the year-ended December 31, 2018 as compared to income from operations of $436.1 million for the year-ended December 31, 2017. Adjusted fully-converted net income for the year ended December 31, 2018, excluding special items, was $387.0 million, or $3.26 per share on a fully-exchanged, fully-diluted basis, as compared to adjusted fully-converted net income of $130.1 million, or $1.14 per share, for the year ended December 31, 2017. 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 44.0% of the limited partner interests as of December 31, 2018.
Strategic Projects, Capital and Corporate Update
As previously disclosed, PBF Energy is progressing with the restart of the idled 12,000 barrel per day coker at the Chalmette refinery and the installation of a new hydrogen plant at the Delaware City refinery. Both projects are on schedule. We expect that the coker will be in service late in the fourth quarter of 2019 and the new hydrogen plant, which is being built and will be owned and operated by Linde, will be in service during the first quarter of 2020. PBF Energy's capital expenses for the projects are expected to be approximately $110 million and $40 million for the coker and hydrogen plant, respectively.
In order to strategically position the company for the later part of 2019, as the expected benefits of the changing marine fuels standards being implemented with IMO 2020 begin to emerge, PBF has elected to accelerate the previously announced 2019 turnarounds at its Delaware City and Paulsboro refineries. The Delaware City coker turnaround, and other ancillary units, will now occur in the March to April time frame, and the Paulsboro crude unit turnaround originally planned for the third quarter will now occur in the second quarter of 2019.
PBF Logistics announced today an IDR simplification agreement in which PBF will receive 10,000,000 newly-issued common units in exchange for the elimination of PBF's IDRs. The transaction is subject to customary closing conditions. Closing of the transaction is expected to occur on February 28, 2019. Pro forma for the transaction, PBF will own approximately 54% of the outstanding LP common units.
Throughput Guidance
Throughput guidance for the first quarter reflects ongoing maintenance activity and current expectations based on prevailing market conditions. In addition to advancing the turnaround work on the East Coast, PBF is conducting repairs on piping and instrumentation associated with a pre-flash tower, located in Delaware City, which was damaged during an incident commencing on February 3, 2019. The refinery's crude unit was not damaged and has been returned to service.
For the first quarter 2019, we expect East Coast total throughput to average 300,000 to 320,000 barrels per day; Mid-Continent total throughput is expected to average 135,000 to 145,000 barrels per day; Gulf Coast total throughput is expected to average 175,000 to 185,000 barrels per day and West Coast total throughput is expected to average 130,000 to 140,000 barrels per day.
For the full-year 2019, we expect East Coast total throughput to average 325,000 to 345,000 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 195,000 to 205,000 barrels per day and West Coast total throughput is expected to average 160,000 to 170,000 barrels per day.
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, 2019, to holders of record as of February 28, 2019.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to Non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income, Adjusted Fully-Converted Net Income 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 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, February 14, 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 (877) 876-9173 or (785) 424-1667, conference ID: PBFQ418. The audio replay will be available two hours after the end of the call through February 28, 2019, by dialing (800) 723-0488 or (402) 220-2651.
Forward-Looking Statements
Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the company's control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the company's filings with the SEC, as well as the risks disclosed in PBF Logistics LP's SEC filings and any impact PBF Logistics LP may have on the company's credit rating, cost of funds, employees, customer and vendors; risk relating to the securities markets generally; and the impact of adverse market conditions affecting the company, unanticipated developments, regulatory approvals, changes in laws and other events that negatively impact the company. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE: PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.
PBF Energy Inc. also currently indirectly owns the general partner and approximately 44.0% 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, | |||||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||||
Revenues | $ | 6,292,874 | $ | 6,535,988 | $ | 27,186,093 | $ | 21,786,637 | ||||||||||||
Cost and expenses: | ||||||||||||||||||||
Cost of products and other | 6,102,661 | 5,709,100 | 24,503,393 | 18,863,621 | ||||||||||||||||
Operating expenses (excluding depreciation and amortization expense as reflected | 452,798 | 417,556 | 1,720,959 | 1,684,435 | ||||||||||||||||
Depreciation and amortization expense | 95,373 | 80,192 | 359,126 | 277,992 | ||||||||||||||||
Cost of sales | 6,650,832 | 6,206,848 | 26,583,478 | 20,826,048 | ||||||||||||||||
General and administrative expenses (excluding depreciation and amortization | 85,537 | 71,400 | 276,955 | 214,547 | ||||||||||||||||
Depreciation and amortization expense | 2,763 | 2,609 | 10,634 | 12,964 | ||||||||||||||||
(Gain) loss on sale of assets | (22) | 518 | (43,094) | 1,458 | ||||||||||||||||
Total cost and expenses | 6,739,110 | 6,281,375 | 26,827,973 | 21,055,017 | ||||||||||||||||
Income (loss) from operations | (446,236) | 254,613 | 358,120 | 731,620 | ||||||||||||||||
Other income (expense): | ||||||||||||||||||||
Change in Tax Receivable Agreement liability | 6,130 | 250,357 | 13,893 | 250,922 | ||||||||||||||||
Change in fair value of catalyst leases | (196) | (1,236) | 5,587 | (2,247) | ||||||||||||||||
Debt extinguishment costs | — | — | — | (25,451) | ||||||||||||||||
Interest expense, net | (40,976) | (39,556) | (169,911) | (154,427) | ||||||||||||||||
Other non-service components of net periodic benefit cost (Note 16) | 276 | (1,097) | 1,109 | (1,402) | ||||||||||||||||
Income (loss) before income taxes | (481,002) | 463,081 | 208,798 | 799,015 | ||||||||||||||||
Income tax (benefit) expense | (134,329) | 202,695 | 33,507 | 315,584 | ||||||||||||||||
Net income (loss) | (346,673) | 260,386 | 175,291 | 483,431 | ||||||||||||||||
Less: net income attributable to noncontrolling interests | 7,069 | 18,494 | 46,976 | 67,914 | ||||||||||||||||
Net income (loss) attributable to PBF Energy Inc. stockholders | $ | (353,742) | $ | 241,892 | $ | 128,315 | $ | 415,517 | ||||||||||||
Net income (loss) available to Class A common stock per share: | ||||||||||||||||||||
Basic | $ | (2.97) | $ | 2.19 | $ | 1.11 | $ | 3.78 | ||||||||||||
Diluted | $ | (2.97) | $ | 2.14 | $ | 1.10 | $ | 3.73 | ||||||||||||
Weighted-average shares outstanding-basic | 119,066,695 | 110,208,152 | 115,190,262 | 109,779,407 | ||||||||||||||||
Weighted-average shares outstanding-diluted | 119,066,695 | 114,773,845 | 118,773,606 | 113,898,845 | ||||||||||||||||
Dividends per common share | $ | 0.30 | $ | 0.30 | $ | 1.20 | $ | 1.20 | ||||||||||||
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) | $ | (357,688) | $ | 245,929 | $ | 131,021 | $ | 424,587 | ||||||||||||
Adjusted fully-converted net income (loss) per fully exchanged, fully diluted share | $ | (2.97) | $ | 2.14 | $ | 1.10 | $ | 3.73 | ||||||||||||
Adjusted fully-converted shares outstanding - diluted (Note 6) | 120,273,021 | 114,773,845 | 118,773,606 | 113,898,845 | ||||||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||
(Unaudited, in thousands, except share and per share data) | ||||||||||||||
Three Months Ended | Year Ended | |||||||||||||
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED | December 31, | December 31, | ||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
Net income (loss) attributable to PBF Energy Inc. stockholders | $ (353,742) | $ 241,892 | $ 128,315 | $ 415,517 | ||||||||||
Less: Income allocated to participating securities | 156 | 232 | 748 | 1,043 | ||||||||||
Income (loss) available to PBF Energy Inc. stockholders - basic | (353,898) | 241,660 | 127,567 | 414,474 | ||||||||||
Add: Net income (loss) attributable to noncontrolling interest (Note 2) | (5,122) | 7,069 | 4,668 | 16,746 | ||||||||||
Less: Income tax benefit (expense) (Note 3) | 1,332 | (2,800) | (1,214) | (6,633) | ||||||||||
Adjusted fully-converted net income (loss) | $ (357,688) | $ 245,929 | $ 131,021 | $ 424,587 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | 651,734 | (197,589) | 351,278 | (295,532) | ||||||||||
Add: Change in Tax Receivable Agreement liability | (6,130) | (250,357) | (13,893) | (250,922) | ||||||||||
Add: Debt extinguishment costs | — | — | — | 25,451 | ||||||||||
Add: Gain on Torrance land sale | — | — | (43,761) | — | ||||||||||
Add: Early railcar return expense | 7,742 | — | 52,313 | — | ||||||||||
Add: Net tax benefit related to the TCJA | — | (173,346) | — | (173,346) | ||||||||||
Add: Net tax expense on remeasurement of TRA associated deferred tax assets | — | 193,499 | — | 193,499 | ||||||||||
Less: Recomputed income taxes on special items | (169,870) | 177,427 | (89,944) | 206,364 | ||||||||||
Adjusted fully-converted net income (loss) excluding special items | $ 125,788 | $ (4,437) | $ 387,014 | $ 130,101 | ||||||||||
Weighted-average shares outstanding of PBF Energy Inc. | 119,066,695 | 110,208,152 | 115,190,262 | 109,779,407 | ||||||||||
Conversion of PBF LLC Series A Units (Note 5) | 1,206,326 | 3,798,023 | 1,938,089 | 3,823,783 | ||||||||||
Common stock equivalents (Note 6) | 1,749,607 | 767,670 | 1,645,255 | 295,655 | ||||||||||
Fully-converted shares outstanding - diluted | 122,022,628 | 114,773,845 | 118,773,606 | 113,898,845 | ||||||||||
Adjusted fully-converted net income (loss) per fully exchanged, fully | $ (2.97) | $ 2.14 | $ 1.10 | $ 3.73 | ||||||||||
Adjusted fully-converted net income (loss) excluding special items per | $ 1.03 | $ (0.04) | $ 3.26 | $ 1.14 | ||||||||||
Three Months Ended | Year Ended | |||||||||||||
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS | December 31, | December 31, | ||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
Income (loss) from operations (Note 16) | $ (446,236) | $ 254,613 | $ 358,120 | $ 731,620 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | 651,734 | (197,589) | 351,278 | (295,532) | ||||||||||
Add: Gain on Torrance land sale | — | — | (43,761) | — | ||||||||||
Add: Early railcar return expense | 7,742 | — | 52,313 | — | ||||||||||
Income from operations excluding special items | $ 213,240 | $ 57,024 | $ 717,950 | $ 436,088 | ||||||||||
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 thousands) | ||||||||||||||
Three Months Ended | Year Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND | 2018 | 2017 | 2018 | 2017 | ||||||||||
Net income (loss) | $ (346,673) | $ 260,386 | $ 175,291 | $ 483,431 | ||||||||||
Add: Depreciation and amortization expense | 98,136 | 82,801 | 369,760 | 290,956 | ||||||||||
Add: Interest expense, net | 40,976 | 39,556 | 169,911 | 154,427 | ||||||||||
Add: Income tax (benefit) expense | (134,329) | 202,695 | 33,507 | 315,584 | ||||||||||
EBITDA | $ (341,890) | $ 585,438 | $ 748,469 | $ 1,244,398 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | 651,734 | (197,589) | 351,278 | (295,532) | ||||||||||
Add: Change in Tax Receivable Agreement liability | (6,130) | (250,357) | (13,893) | (250,922) | ||||||||||
Add: Debt extinguishment costs | — | — | — | 25,451 | ||||||||||
Add: Gain on Torrance land sale | — | — | (43,761) | — | ||||||||||
Add: Early railcar return expense | 7,742 | — | 52,313 | — | ||||||||||
EBITDA excluding special items | $ 311,456 | $ 137,492 | $ 1,094,406 | $ 723,395 | ||||||||||
Three Months Ended | Year Ended | |||||||||||||
December 31, | December 31, | |||||||||||||
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA | 2018 | 2017 | 2018 | 2017 | ||||||||||
EBITDA | $ (341,890) | $ 585,438 | $ 748,469 | $ 1,244,398 | ||||||||||
Add: Stock-based compensation | 7,361 | 8,784 | 25,969 | 26,848 | ||||||||||
Add: Net non-cash change in fair value of catalyst leases | 196 | 1,236 | (5,587) | 2,247 | ||||||||||
Add: Non-cash LCM inventory adjustment (Note 4) | 651,734 | (197,589) | 351,278 | (295,532) | ||||||||||
Add: Change in Tax Receivable Agreement liability (Note 4) | (6,130) | (250,357) | (13,893) | (250,922) | ||||||||||
Add: Debt extinguishment costs (Note 4) | — | — | — | 25,451 | ||||||||||
Adjusted EBITDA | $ 311,271 | $ 147,512 | $ 1,106,236 | $ 752,490 | ||||||||||
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, | |||||||
2018 | 2017 | |||||||
Balance Sheet Data: | ||||||||
Cash and cash equivalents | $ 597,286 | $ 573,021 | ||||||
Inventories | 1,865,831 | 2,213,797 | ||||||
Total assets | 8,005,415 | 8,117,993 | ||||||
Total debt | 1,933,694 | 2,191,650 | ||||||
Total equity | 3,248,479 | 2,902,949 | ||||||
Total equity excluding special items (Note 4, 13) | $ 3,551,677 | $ 2,950,154 | ||||||
Total debt to capitalization ratio (Note 13) | 37 % | 43 % | ||||||
Total debt to capitalization ratio, excluding special items (Note 13) | 35 % | 43 % | ||||||
Net debt to capitalization ratio (Note 13) | 29 % | 36 % | ||||||
Net debt to capitalization ratio, excluding special items (Note 13) | 27 % | 35 % | ||||||
SUMMARIZED STATEMENT OF CASH FLOW DATA | ||||||||
(Unaudited, in thousands) | ||||||||
Year Ended December 31, | ||||||||
2018 | 2017 | |||||||
Cash flows provided by operations | $ 837,938 | $ 685,861 | ||||||
Cash flows used in investing activities | (685,597) | (687,011) | ||||||
Cash flows used in financing activities | (128,076) | (172,103) | ||||||
Net increase (decrease) in cash and cash equivalents | 24,265 | (173,253) | ||||||
Cash and cash equivalents, beginning of period | 573,021 | 746,274 | ||||||
Cash and cash equivalents, end of period | $ 597,286 | $ 573,021 | ||||||
See Footnotes to Earnings Release Tables | ||||||||
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||
EARNINGS RELEASE TABLES | |||||||||
CONSOLIDATING FINANCIAL INFORMATION (Note 8) | |||||||||
(Unaudited, in thousands) | |||||||||
Three Months Ended December 31, 2018 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Revenues | $ 6,281,466 | $ 80,045 | $ — | $ (68,637) | $ 6,292,874 | ||||
Depreciation and amortization expense | 86,749 | 8,624 | 2,763 | — | 98,136 | ||||
Income (loss) from operations (Note 14, 16) | (397,665) | 38,571 | (82,433) | (4,709) | (446,236) | ||||
Interest expense, net | 1,092 | 12,093 | 27,791 | — | 40,976 | ||||
Capital expenditures (Note 17) | 175,246 | 89,069 | 1,445 | — | 265,760 | ||||
Three Months Ended December 31, 2017 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Revenues | $ 6,532,514 | $ 67,213 | $ — | $ (63,739) | $ 6,535,988 | ||||
Depreciation and amortization expense | 72,884 | 7,308 | 2,609 | — | 82,801 | ||||
Income (loss) from operations (Note 14, 16) | 293,018 | 35,614 | (70,672) | (3,347) | 254,613 | ||||
Interest expense, net | 1,262 | 9,745 | 28,549 | — | 39,556 | ||||
Capital expenditures | 58,423 | 18,158 | 512 | — | 77,093 | ||||
Year Ended December 31, 2018 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Revenues | $ 27,162,079 | $ 283,440 | $ — | $ (259,426) | $ 27,186,093 | ||||
Depreciation and amortization expense | 329,317 | 29,809 | 10,634 | — | 369,760 | ||||
Income (loss) from operations (Note 14, 16) | 498,287 | 143,870 | (266,218) | (17,819) | 358,120 | ||||
Interest expense, net | 7,601 | 43,033 | 119,277 | — | 169,911 | ||||
Capital expenditures (Note 17) | 552,020 | 175,696 | 6,171 | — | 733,887 | ||||
Year Ended December 31, 2017 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Revenues | $ 21,769,703 | $ 257,588 | $ — | $ (240,654) | $ 21,786,637 | ||||
Depreciation and amortization expense | 253,588 | 24,404 | 12,964 | — | 290,956 | ||||
Income (loss) from operations (Note 14, 16) | 814,033 | 143,379 | (211,227) | (14,565) | 731,620 | ||||
Interest expense, net | 4,695 | 33,363 | 116,369 | — | 154,427 | ||||
Capital expenditures (Note 17) | 633,294 | 90,258 | 3,483 | — | 727,035 | ||||
Balance at December 31, 2018 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Total Assets (Note 15) | $ 6,988,059 | $ 956,353 | $ 98,055 | $ (37,052) | $ 8,005,415 | ||||
Balance at December 31, 2017 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Total Assets (Note 15) | $ 7,287,384 | $ 748,215 | $ 123,211 | $ (40,817) | $ 8,117,993 | ||||
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) (Note 9) | 2018 | 2017 | 2018 | 2017 | |||||||
Dated Brent Crude | $ 68.70 | $ 61.39 | $ 71.34 | $ 54.18 | |||||||
West Texas Intermediate (WTI) crude oil | $ 59.98 | $ 55.23 | $ 65.20 | $ 50.79 | |||||||
Light Louisiana Sweet (LLS) crude oil | $ 67.51 | $ 60.94 | $ 70.23 | $ 54.02 | |||||||
Alaska North Slope (ANS) crude oil | $ 69.53 | $ 61.31 | $ 71.54 | $ 54.43 | |||||||
Crack Spreads: | |||||||||||
Dated Brent (NYH) 2-1-1 | $ 10.19 | $ 14.44 | $ 13.17 | $ 14.74 | |||||||
WTI (Chicago) 4-3-1 | $ 11.75 | $ 19.44 | $ 14.84 | $ 15.88 | |||||||
LLS (Gulf Coast) 2-1-1 | $ 9.35 | $ 13.00 | $ 12.30 | $ 13.57 | |||||||
ANS (West Coast) 4-3-1 | $ 11.82 | $ 13.34 | $ 15.48 | $ 17.43 | |||||||
Crude Oil Differentials: | |||||||||||
Dated Brent (foreign) less WTI | $ 8.72 | $ 6.16 | $ 6.14 | $ 3.39 | |||||||
Dated Brent less Maya (heavy, sour) | $ 6.19 | $ 10.52 | $ 8.70 | $ 7.16 | |||||||
Dated Brent less WTS (sour) | $ 15.38 | $ 6.59 | $ 13.90 | $ 4.37 | |||||||
Dated Brent less ASCI (sour) | $ 4.45 | $ 3.88 | $ 4.64 | $ 3.66 | |||||||
WTI less WCS (heavy, sour) | $ 34.67 | $ 16.48 | $ 26.93 | $ 12.24 | |||||||
WTI less Bakken (light, sweet) | $ 8.48 | $ (1.54) | $ 2.86 | $ (0.26) | |||||||
WTI less Syncrude (light, sweet) | $ 19.19 | $ (1.53) | $ 6.84 | $ (1.74) | |||||||
WTI less LLS (light, sweet) | $ (7.53) | $ (5.71) | $ (5.03) | $ (3.23) | |||||||
WTI less ANS (light, sweet) | $ (9.55) | $ (6.08) | $ (6.34) | $ (3.63) | |||||||
Natural gas (dollars per MMBTU) | $ 3.72 | $ 2.92 | $ 3.07 | $ 3.02 | |||||||
Key Operating Information | |||||||||||
Production (barrels per day ("bpd") in thousands) | 850.8 | 872.3 | 854.5 | 802.9 | |||||||
Crude oil and feedstocks throughput (bpd in thousands) | 842.7 | 870.9 | 849.7 | 807.4 | |||||||
Total crude oil and feedstocks throughput (millions of barrels) | 77.5 | 80.1 | 310.0 | 294.7 | |||||||
Consolidated gross margin per barrel of throughput | $ (4.62) | $ 4.11 | $ 1.94 | $ 3.25 | |||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, | $ 10.00 | $ 7.06 | $ 9.09 | $ 8.08 | |||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ 5.56 | $ 5.01 | $ 5.34 | $ 5.52 | |||||||
Crude and feedstocks (% of total throughput) (Note 12) | |||||||||||
Heavy | 35 % | 33 % | 36 % | 34 % | |||||||
Medium | 30 % | 30 % | 30 % | 30 % | |||||||
Light | 22 % | 23 % | 21 % | 21 % | |||||||
Other feedstocks and blends | 13 % | 14 % | 13 % | 15 % | |||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | |||||||
Yield (% of total throughput) | |||||||||||
Gasoline and gasoline blendstocks | 50 % | 51 % | 50 % | 50 % | |||||||
Distillates and distillate blendstocks | 33 % | 31 % | 32 % | 30 % | |||||||
Lubes | 1 % | 1 % | 1 % | 1 % | |||||||
Chemicals | 2 % | 2 % | 2 % | 2 % | |||||||
Other | 15 % | 15 % | 16 % | 16 % | |||||||
Total yield | 101 % | 100 % | 101 % | 99 % | |||||||
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, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Supplemental Operating Information - East Coast (Delaware City and Paulsboro) | ||||||||||||
Production (bpd in thousands) | 327.5 | 359.3 | 340.2 | 332.5 | ||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 331.2 | 362.4 | 344.7 | 338.2 | ||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 30.5 | 33.3 | 125.8 | 123.4 | ||||||||
Gross margin per barrel of throughput | $ (11.54) | $ 1.47 | $ 0.25 | $ 0.89 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ 8.55 | $ 4.02 | $ 7.43 | $ 5.46 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ 5.12 | $ 4.28 | $ 4.68 | $ 4.44 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 26 % | 26 % | 27 % | 31 % | ||||||||
Medium | 47 % | 44 % | 47 % | 40 % | ||||||||
Light | 9 % | 12 % | 8 % | 11 % | ||||||||
Other feedstocks and blends | 18 % | 18 % | 18 % | 18 % | ||||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 46 % | 48 % | 46 % | 46 % | ||||||||
Distillates and distillate blendstocks | 33 % | 33 % | 33 % | 31 % | ||||||||
Lubes | 2 % | 2 % | 2 % | 2 % | ||||||||
Chemicals | 1 % | 1 % | 1 % | 1 % | ||||||||
Other | 17 % | 15 % | 17 % | 18 % | ||||||||
Total yield | 99 % | 99 % | 99 % | 98 % | ||||||||
Supplemental Operating Information - Mid-Continent (Toledo) | ||||||||||||
Production (bpd in thousands) | 152.9 | 143.8 | 151.5 | 148.2 | ||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 149.8 | 141.5 | 149.6 | 145.2 | ||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 13.8 | 13.0 | 54.6 | 53.0 | ||||||||
Gross margin per barrel of throughput | $ (9.90) | $ 9.18 | $ 5.07 | $ 5.52 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ 17.76 | $ 12.17 | $ 13.46 | $ 10.28 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ 5.30 | $ 5.33 | $ 5.12 | $ 5.24 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Medium | 30 % | 36 % | 32 % | 37 % | ||||||||
Light | 68 % | 63 % | 66 % | 61 % | ||||||||
Other feedstocks and blends | 2 % | 1 % | 2 % | 2 % | ||||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 52 % | 55 % | 53 % | 54 % | ||||||||
Distillates and distillate blendstocks | 37 % | 33 % | 35 % | 33 % | ||||||||
Chemicals | 6 % | 6 % | 5 % | 6 % | ||||||||
Other | 7 % | 8 % | 8 % | 9 % | ||||||||
Total yield | 102 % | 102 % | 101 % | 102 % | ||||||||
Supplemental Operating Information - Gulf Coast (Chalmette) | ||||||||||||
Production (bpd in thousands) | 192.1 | 187.7 | 189.2 | 182.3 | ||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 188.7 | 190.1 | 185.6 | 184.5 | ||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 17.3 | 17.5 | 67.7 | 67.4 | ||||||||
Gross margin per barrel of throughput | $ 0.27 | $ 2.94 | $ (0.27) | $ 3.69 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ 5.83 | $ 6.12 | $ 6.41 | $ 8.34 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ 4.65 | $ 4.51 | $ 4.66 | $ 4.84 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 38 % | 36 % | 39 % | 38 % | ||||||||
Medium | 18 % | 16 % | 19 % | 22 % | ||||||||
Light | 29 % | 35 % | 29 % | 25 % | ||||||||
Other feedstocks and blends | 15 % | 13 % | 13 % | 15 % | ||||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 44 % | 44 % | 43 % | 45 % | ||||||||
Distillates and distillate blendstocks | 36 % | 32 % | 34 % | 32 % | ||||||||
Chemicals | 1 % | 2 % | 1 % | 2 % | ||||||||
Other | 21 % | 21 % | 24 % | 20 % | ||||||||
Total yield | 102 % | 99 % | 102 % | 99 % | ||||||||
Supplemental Operating Information - West Coast (Torrance) | ||||||||||||
Production (bpd in thousands) | 178.3 | 181.5 | 173.6 | 139.9 | ||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 173.0 | 176.9 | 169.8 | 139.5 | ||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 15.9 | 16.3 | 61.9 | 50.9 | ||||||||
Gross margin per barrel of throughput | $ 5.09 | $ 4.26 | $ 2.33 | $ 2.84 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ 10.57 | $ 10.24 | $ 11.60 | $ 11.80 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ 7.61 | $ 6.85 | $ 7.61 | $ 9.35 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 78 % | 77 % | 81 % | 74 % | ||||||||
Medium | 10 % | 7 % | 7 % | 8 % | ||||||||
Other feedstocks and blends | 12 % | 16 % | 12 % | 18 % | ||||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 60 % | 62 % | 59 % | 64 % | ||||||||
Distillates and distillate blendstocks | 28 % | 27 % | 28 % | 22 % | ||||||||
Other | 15 % | 14 % | 15 % | 14 % | ||||||||
Total yield | 103 % | 103 % | 102 % | 100 % | ||||||||
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 thousands, except per barrel amounts) | ||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||
December 31, 2018 | December 31, 2017 | |||||||||||||
RECONCILIATION OF CONSOLIDATED GROSS MARGIN TO | $ | per barrel of | $ | per barrel of | ||||||||||
Calculation of consolidated gross margin: | ||||||||||||||
Revenues | $ 6,292,874 | $ 81.16 | $ 6,535,988 | $ 81.58 | ||||||||||
Less: Cost of Sales | 6,650,832 | 85.78 | 6,206,848 | 77.47 | ||||||||||
Consolidated gross margin | $ (357,958) | $ (4.62) | $ 329,140 | $ 4.11 | ||||||||||
Reconciliation of consolidated gross margin to gross refining | ||||||||||||||
Consolidated gross margin | $ (357,958) | $ (4.62) | $ 329,140 | $ 4.11 | ||||||||||
Add: PBFX operating expense | 26,983 | 0.35 | 19,280 | 0.24 | ||||||||||
Add: PBFX depreciation expense | 8,624 | 0.11 | 7,159 | 0.09 | ||||||||||
Less: Revenues of PBFX | (80,045) | (1.03) | (66,513) | (0.83) | ||||||||||
Add: Refinery operating expense (Note 16) | 430,951 | 5.56 | 401,683 | 5.01 | ||||||||||
Add: Refinery depreciation expense | 86,749 | 1.12 | 73,033 | 0.91 | ||||||||||
Gross refining margin | $ 115,304 | $ 1.49 | $ 763,782 | $ 9.53 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | 651,734 | 8.41 | (197,589) | (2.47) | ||||||||||
Add: Early railcar return expense | 7,742 | 0.10 | — | — | ||||||||||
Gross refining margin excluding special items | $ 774,780 | $ 10.00 | $ 566,193 | $ 7.06 | ||||||||||
Year Ended | Year Ended | |||||||||||||
December 31, 2018 | December 31, 2017 | |||||||||||||
RECONCILIATION OF CONSOLIDATED GROSS MARGIN TO | $ | per barrel of | $ | per barrel of | ||||||||||
Calculation of consolidated gross margin: | ||||||||||||||
Revenues | $ 27,186,093 | $ 87.67 | $ 21,786,637 | $ 73.92 | ||||||||||
Less: Cost of Sales | 26,583,478 | 85.73 | 20,826,048 | 70.67 | ||||||||||
Consolidated gross margin | $ 602,615 | $ 1.94 | $ 960,589 | $ 3.25 | ||||||||||
Reconciliation of consolidated gross margin to gross refining | ||||||||||||||
Consolidated gross margin | $ 602,615 | $ 1.94 | $ 960,589 | $ 3.25 | ||||||||||
Add: PBFX operating expense | 84,410 | 0.27 | 66,443 | 0.23 | ||||||||||
Add: PBFX depreciation expense | 29,417 | 0.09 | 23,721 | 0.08 | ||||||||||
Less: Revenues of PBFX | (281,511) | (0.91) | (254,813) | (0.86) | ||||||||||
Add: Refinery operating expense (Note 16) | 1,654,749 | 5.34 | 1,626,440 | 5.52 | ||||||||||
Add: Refinery depreciation expense | 329,709 | 1.06 | 254,271 | 0.86 | ||||||||||
Gross refining margin | $ 2,419,389 | $ 7.79 | $ 2,676,651 | $ 9.08 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | 351,278 | 1.13 | (295,532) | (1.00) | ||||||||||
Add: Early railcar return expense | 52,313 | 0.17 | — | — | ||||||||||
Gross refining margin excluding special items | $ 2,822,980 | $ 9.09 | $ 2,381,119 | $ 8.08 | ||||||||||
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. | |||||||||
(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 annualized statutory corporate tax rate of approximately 26.0% and 39.6% for the 2018 and 2017 periods, respectively, applied to net income (loss) 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. Our statutory tax rates were reduced in 2018 as a result of the Tax Cuts and Jobs Act (the "TCJA") enactment. | |||||||||
(4) The Non-GAAP measures presented include adjusted fully-converted net income excluding special items, income from operations excluding special items, EBITDA excluding special items and gross refining margin excluding special items. Special items presented for the year ended December 31, 2018 relate to a lower of cost or market ("LCM") inventory adjustment, changes in the Tax Receivable Agreement liability, gain on the sale of assets related to the Torrance land sale and charges associated with the early return of certain leased railcars. Special items for the year ended December 31, 2017 relate to an LCM inventory adjustment, changes in the Tax Receivable Agreement liability, debt extinguishment costs, a net tax benefit related to the TCJA enactment and a net tax expense associated with the remeasurement of the Tax Receivable Agreement associated deferred tax assets, as discussed further below. Additionally, the cumulative effects of all current and 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. |
The following table includes the LCM inventory reserve as of each date presented (in thousands): | |||||||||
2018 | 2017 | ||||||||
January 1, | $ 300,456 | $ 595,988 | |||||||
September 30, | — | 498,045 | |||||||
December 31, | 651,734 | 300,456 | |||||||
The following table includes the corresponding impact of changes in the LCM inventory reserve on income (loss) from operations and net income (loss) for the periods presented (in thousands): | |||||||||
Three Months Ended | Year Ended December 31, | ||||||||
2018 | 2017 | 2018 | 2017 | ||||||
Net LCM inventory adjustment (charge) | $ (651,734) | $ 197,589 | $ (351,278) | $ 295,532 | |||||
Net LCM inventory adjustment (charge) | (482,283) | 119,326 | (259,946) | 178,475 | |||||
Change in Tax Receivable Agreement liability- During the three months and year ended December 31, 2018 we recorded a change in the Tax Receivable Agreement liability that increased income before income taxes by $6.1 million and $13.9 million ($4.5 million and $10.3 million, net of tax), respectively. During the three months and year ended December 31, 2017 PBF Energy recorded a change in the Tax Receivable Agreement liability that increased income before taxes by $250.4 million and $250.9 million ($151.2 million and $151.5 million, net of tax), respectively. The changes in the Tax Receivable Agreement liabilities reflect charges or benefits attributable to changes in PBF Energy's obligation under the Tax Receivable Agreement due to factors out of our control such as changes in tax rates. | |||||||||
Gain on Torrance land sale- During the year ended December 31, 2018 we recorded a gain on the sale of a parcel of real property acquired as part of the Torrance refinery, but not part of the refinery itself. The gain increased income from operations and net income by $43.8 million and $32.4 million, respectively. There was no such gain in the year ended December 31, 2017. | |||||||||
Early Return of Railcars- During the three months ended and year ended December 31, 2018 we recognized certain expenses within Cost of sales associated with the voluntary early return of certain leased railcars. These charges decreased income from operations by $7.7 million and $52.3 million ($5.7 million and $38.7 million, net of tax), respectively. There were no such expenses in the year ended December 31, 2017. | |||||||||
Debt Extinguishment Costs- 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, 2018. | |||||||||
TCJA Enactment- The Company made a one-time adjustment in 2017 to deferred tax assets and liabilities in relation to the TCJA. The prior year net income tax expense impact of $20.2 million consists of a net tax expense of $193.5 million associated with the remeasurement of the Tax Receivable Agreement 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. | |||||||||
Recomputed Income taxes on special items - The income tax impact of the special items, other than TCJA related items, were calculated using the tax rates shown in footnote 3 above. | |||||||||
(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 months and years ended December 31, 2018 and 2017, respectively. Common stock equivalents exclude the effects of options and warrants to purchase 1,278,242 and 1,293,242 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, 2018, 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. For periods showing a net loss, all common stock equivalents 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. 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 December 31, 2018, 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, as described in footnote 4 above, we have also presented the total debt to capitalization and net debt to capitalization ratios excluding the cumulative effects of special items on equity. | |||||||||
December 31, | December 31, | ||||||||
2018 | 2017 | ||||||||
(in thousands) | |||||||||
Total debt | $ 1,933,694 | $ 2,191,650 | |||||||
Total equity | 3,248,479 | 2,902,949 | |||||||
Total capitalization | $ 5,182,173 | $ 5,094,599 | |||||||
Total debt | $ 1,933,694 | $ 2,191,650 | |||||||
Total equity excluding special items | 3,551,677 | 2,950,154 | |||||||
Total capitalization excluding special items | $ 5,485,371 | $ 5,141,804 | |||||||
Total equity | $ 3,248,479 | $ 2,902,949 | |||||||
Special Items (Note 4) | |||||||||
Add: Non-cash LCM inventory adjustment | 651,734 | 300,456 | |||||||
Add: Change in Tax Receivable Agreement liability | (290,323) | (276,430) | |||||||
Add: Debt extinguishment costs | 25,451 | 25451 | |||||||
Add: Gain on Torrance land sale | (43,761) | — | |||||||
Add: Early railcar return expense | 52,313 | — | |||||||
Less: Recomputed income taxes on special items | (112,369) | (22,425) | |||||||
Add: Net tax expense on TCJA related special items | 20,153 | 20,153 | |||||||
Net impact of special items to equity | 303,198 | 47,205 | |||||||
Total equity excluding special items | $ 3,551,677 | $ 2,950,154 | |||||||
Total debt | $ 1,933,694 | $ 2,191,650 | |||||||
Less: Cash and cash equivalents | 597,286 | 573,021 | |||||||
Net Debt | $ 1,336,408 | $ 1,618,629 | |||||||
Total debt to capitalization ratio | 37 % | 43 % | |||||||
Total debt to capitalization ratio, excluding special items | 35 % | 43 % | |||||||
Net debt to capitalization ratio | 29 % | 36 % | |||||||
Net debt to capitalization ratio, excluding special items | 27 % | 35 % | |||||||
(14) 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. | |||||||||
(15) 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. | |||||||||
(16) The Company adopted ASU 2017-07 effective January 1, 2018. The new guidance requires the bifurcation of net periodic benefit cost. The service cost component is presented within Income from operations, while the other components are reported separately outside of operations. This guidance was applied retrospectively in the consolidated statements of operations. | |||||||||
The following table shows the effect of the adoption of ASU 2017-07 on our financial statements (in thousands): | |||||||||
Three Months Ended | Year Ended December 31, | ||||||||
2018 | 2017 | 2018 | 2017 | ||||||
Refining segment income (expense) related to other | $ 373 | $ (919) | $ 1,488 | $ (1,176) | |||||
Corporate expense related to other non-service | (97) | (178) | (379) | (226) | |||||
Total income (expense) related to other non-service | $ 276 | $ (1,097) | $ 1,109 | $ (1,402) | |||||
(17) For the three months ended December 31, 2018, the Logistics segment includes capital expenditures of $75.0 million related to the PBFX acquisition of the East Coast Storage Assets on October 1, 2018. For the years ended December 31, 2018 and December 31, 2017, the Logistics segment also includes capital expenditures of $58.4 million for the PBFX acquisition of the Knoxville Terminals on April 16, 2018 and $10.1 million for the PBFX acquisition of the Toledo Products Terminal on April 17, 2017. | |||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-energy-reports-fourth-quarter-2018-results-declares-dividend-of-0-30-per-share-300795711.html
SOURCE PBF Energy Inc.
Article Date
2/14/2019PBF Logistics Announces Immediately Accretive IDR Simplification Agreement, Increases Quarterly Cash Distribution to $0.5050 per Unit and Announces Fourth Quarter 2018 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., Feb. 14, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") announced today fourth quarter 2018 net income attributable to the limited partners of $21.8 million, or $0.48 per common unit. During the fourth quarter, the Partnership generated cash from operations of approximately $15.6 million, earnings before interest, income taxes, depreciation, and amortization (EBITDA) of $41.1 million and distributable cash flow of $28.7 million. Included in our general and administrative expenses for the fourth quarter are $1.8 million, or $0.04 per common unit, of incremental incentive compensation and transaction-related expenses.
For the year-ended December 31, 2018, the Partnership reported net income attributable to the limited partners of $75.5 million, or $1.73 per common unit (net of IDRs) and $152.4 million of EBITDA. Included in our general and administrative expenses for the year-ended December 31, 2018 are $4.0 million, or $0.09 per common unit, of incremental incentive compensation and transaction-related expenses.
As of December 31, 2018, the Partnership had liquidity of $359.9 million, including $19.9 million in cash and cash equivalents and $340.0 million of capacity under its revolving credit facility.
"The IDR simplification is an important transaction for both PBF Logistics and PBF Energy. Eliminating the IDRs is immediately accretive to limited partner cash flow per unit and enhances PBF Logistics' ability to pursue growth opportunities and manage its business over the long-term by decreasing its cost of capital," said PBF Logistics GP LLC Executive Vice President Matt Lucey. "We are committed to the development of the Partnership and, on the back of continued execution of our growth plan, we are pleased to announce our seventeenth consecutive distribution increase as well as our expectation of continued future increases," Mr. Lucey continued. "PBF Energy continues to be a supportive sponsor and we are pleased that PBF Energy has made the early decision to extend their Delaware City rail contract commitment to PBF Logistics through 2025. Lastly, along with Maersk, we are pleased to announce a new processing agreement at our East Coast Storage Assets. This agreement highlights the opportunities that exist within our expanding asset portfolio and the potential benefits that can be captured by the Partnership in today's changing markets," concluded Mr. Lucey.
PBF Logistics Announces Immediately Accretive IDR Simplification Agreement
On February 13, 2019, PBFX and PBF Energy Company LLC ("PBF LLC"), a subsidiary of PBF Energy (NYSE:PBF) ("PBF Energy"), entered into a definitive agreement to eliminate the incentive distribution rights ("IDRs") held by PBF LLC in exchange for the issuance by PBFX of 10,000,000 of its common units to PBF LLC, representing total equity value of approximately $215 million based on PBFX's 30-day volume-weighted average price as of February 13, 2019, $21.53. The transaction value represents a multiple of approximately 11x 2019 estimated IDR cash flow and is expected to be immediately accretive to distributable cash flow per LP unit in 2019 and beyond. Upon closing of the transaction, PBF LLC will hold approximately 30 million PBFX common units, representing approximately 54% of the outstanding common units.
The terms of the transaction were unanimously approved by the board of directors of PBF Logistics GP LLC, a subsidiary of PBF Energy and the general partner of PBFX, based on the unanimous approval and recommendation of its Conflicts Committee, which is comprised of independent directors. The Conflicts Committee was advised by Intrepid Partners LLC, as financial advisor, and Baker Botts L.L.P., as legal advisor. The transaction was also approved by the boards of directors of PBF LLC and PBF Energy.
The transaction is subject to customary closing conditions and is expected to close on February 28, 2019.
PBF Logistics Strategic Update and Outlook
Based on a favorable outlook and successful execution of our growth opportunities, the Partnership remains committed to its prior distribution guidance and expects to continue to deliver on the $100 million of EBITDA organic growth pipeline announced in 2018. PBFX successfully delivered $34 million of annualized EBITDA growth in 2018.
The Partnership is pleased to announce the early extension of PBF Energy's rail unloading contracts at the Delaware City rail facilities. The current contracts will remain in place until expiry at the end of 2021 with no change to the current contract economics. The extension runs from January 1, 2022 to December 31, 2025. The extension of this agreement represents a strategic commitment by PBF Energy to the crude-by-rail business and PBF Logistics' rail operations.
During the extension, PBF Energy has committed to a minimum volume commitment of 95,000 barrel per day, with the per barrel fees and variable pass-through cost structure of the preceding agreement unchanged.
The Partnership is also pleased to announce a processing agreement with A.P. Moller - Maersk ("Maersk") whereby PBFX would process crude oil at its East Coast Storage Assets in New Jersey and supply Maersk with IMO 2020-compliant 0.5% sulfur marine fuel.
PBF Logistics Announces Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.5050 per common unit. The distribution is payable on March 14, 2019, to unitholders of record at the close of business on March 1, 2019.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
The Partnership defines EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense. EBITDA is a non-GAAP (U.S. Generally Accepted Accounting Principles) supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA should not be considered an alternative to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.
Due to the forward-looking nature of forecasted EBITDA, information to reconcile forecasted EBITDA to forecasted earnings and cash flow from operating activities is not available as management is unable to project financing terms and working capital changes for future periods at this time.
Furthermore, this earnings release, and the discussion during the management conference call, may include references to non-GAAP financial measures including, but not limited to, EBITDA, EBITDA attributable to PBFX and distributable cash flow. PBFX's management believes that non-GAAP financial measures provide useful information about the Partnership's operating performance, financial results and the amount of cash generated by the Partnership's operations and the amount available for distribution to its unitholders. 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. PBFX'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 financial measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
The Partnership's senior management will host a conference call and webcast regarding earnings results and other business matters on Thursday, February 14, 2019, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (866) 342-8591 or (203) 518-9713, conference ID: PBFXQ418. The audio replay will be available two hours after the end of the call through February 28, 2019, by dialing (800) 283-9429 or (402) 220-0871.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets and other risks inherent in PBFX's business including but not limited to our ability to consummate potential acquisitions, the timing for the closing of any such acquisition and our plans for financing any acquisition; unforeseen liabilities associated with any potential acquisition; inability to successfully integrate acquired assets or other acquired businesses or operations; effects of existing and future laws and governmental regulations, including environmental, health and safety regulations; and various other factors. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. PBFX assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present our results of operations, related operational information and reconciliations of net income and net cash provided by operating activities to our EBITDA, EBITDA attributable to PBFX and distributable cash flow (all as defined below) for the three months and years ended December 31, 2018 and 2017. The financial information presented contains our financial results and the financial results of the Development Assets (as defined below) and PNGPC (as defined below) prior to the Development Assets Acquisition (as defined below) on July 31, 2018 and the PNGPC Acquisition (as defined below) on February 28, 2017.
On February 13, 2019, we entered into an Equity Restructuring Agreement with PBF Energy Company LLC ("PBF LLC") and PBF Logistics GP, our general partner, pursuant to which all of the incentive distribution rights ("IDRs") held by PBF LLC will be canceled and converted into 10,000,000 newly issued PBFX common units (the "IDR Restructuring"). The IDR Restructuring is expected to close on February 28, 2019. Subsequent to the IDR Restructuring, no distributions will be made to PBF LLC with respect to the IDRs and the newly issued common units will be entitled to normal distributions. As such, no income was allocated to the IDR holder for the three months ended December 31, 2018.
On October 1, 2018, we acquired from Crown Point International, LLC, its wholly-owned subsidiary, CPI Operations LLC (the "East Coast Storage Assets Acquisition"), whose assets include a storage facility with approximately four million barrels of multi-use storage capacity, an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts, and certain other idled assets located on the Delaware River near Paulsboro, New Jersey (the "East Coast Storage Assets"). Additionally, the East Coast Storage Assets Acquisition includes an earn-out provision related to an existing commercial agreement with a third party, based on the future results of restarting certain of the acquired idled assets.
On July 31, 2018, we acquired from PBF LLC, a subsidiary of PBF Energy Inc., all of the issued and outstanding limited liability company interests of: Toledo Rail Logistics Company LLC, whose assets consist of a loading and unloading rail facility located at PBF Holding Company LLC's ("PBF Holding") Toledo Refinery (the "Toledo Rail Products Facility"); Chalmette Logistics Company LLC, whose assets consist of a truck loading rack facility (the "Chalmette Truck Rack") and a rail yard facility (the "Chalmette Rosin Yard"), both of which are located at PBF Holding's Chalmette Refinery; Paulsboro Terminaling Company LLC, whose assets consist of a lube oil terminal facility located at PBF Holding's Paulsboro Refinery (the "Paulsboro Lube Oil Terminal"); and DCR Storage and Loading Company LLC, whose assets consist of an ethanol storage facility located at PBF Holding's Delaware City Refinery (the "Delaware Ethanol Storage Facility" and collectively with the Toledo Rail Products Facility, the Chalmette Truck Rack, the Chalmette Rosin Yard, and the Paulsboro Lube Oil Terminal, the "Development Assets") (the "Development Assets Acquisition"). In connection with the Development Assets Acquisition, we entered into various commercial agreements with PBF Holding and assumed an existing commercial agreement with a third party.
On April 16, 2018, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), completed the purchase of two refined product terminals located in Knoxville, Tennessee, which include product tanks, pipeline connections to the Colonial Pipeline Company and Plantation Pipe Line Company pipeline systems and truck loading facilities (the "Knoxville Terminals"), from Cummins Terminals, Inc. (the "Knoxville Terminals Purchase").
Effective January 1, 2018, our wholly-owned subsidiary, Delaware City Terminaling Company LLC, and PBF Holding amended the commercial agreements relating to our Delaware City rail unloading assets with the service fees thereunder being adjusted, including the addition of an ancillary fee paid by PBF Holding on an actual cost basis (the "Amended and Restated Rail Agreements").
In November 2017, our wholly-owned subsidiary, PBFX Operating Company LLC ("PBFX Op Co"), completed construction of a new crude storage tank at PBF Holding's Chalmette Refinery (the "Chalmette Storage Tank") and began providing storage services to PBF Holding in November 2017 for usage of the Chalmette Storage Tank under a ten-year storage services agreement (the "Chalmette Storage Services Agreement").
On April 17, 2017, our wholly-owned subsidiary, PLPT, acquired the Toledo, Ohio refined products terminal assets (the "Toledo Products Terminal") from Sunoco Logistics Partners L.P. (the "Toledo Products Terminal Acquisition"). The Toledo Products Terminal is directly connected to, and currently supplied by, PBF Holding's Toledo Refinery. The Toledo Products Terminal is comprised of a ten-bay truck rack and chemicals, clean product and additive storage capacity.
On February 28, 2017, our wholly-owned subsidiary, PBFX Op Co, acquired from PBF LLC, all of the issued and outstanding limited liability company interests of Paulsboro Natural Gas Pipeline Company LLC ("PNGPC") (the "PNGPC Acquisition"). In connection with the PNGPC Acquisition, we constructed a new 24" natural gas pipeline to replace the existing interstate pipeline, which commenced services in August 2017 (the "Paulsboro Natural Gas Pipeline"). Concurrent with commencement of operations of the Paulsboro Natural Gas Pipeline, a new service agreement was entered into between PNGPC and Paulsboro Refining Company LLC ("PRC"), a subsidiary of PBF Holding.
The Development Assets Acquisition and the PNGPC Acquisition were transfers between entities under common control. Accordingly, our financial information contained herein has been retrospectively adjusted to include the historical results of the Development Assets and PNGPC as if they were owned by us for all periods presented. The results of the Development Assets and PNGPC are included in the Transportation and Terminaling segment. Certain of the following Earnings Release Tables provide a summary of our results of operations for the year ended December 31, 2018 and the three months and year ended December 31, 2017 on a disaggregated basis to present the results of our operations and the pre-acquisition results of the Development Assets and PNGPC, respectively. For purpose of such tables, PBF Logistics LP includes the results of such assets subsequent to the close of the acquisitions.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation and amortization expense attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is distributable cash flow divided by total distribution declared. EBITDA, EBITDA attributable to PBFX and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX and distributable cash flow are not presentations made in accordance with GAAP, they are supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA and EBITDA attributable to PBFX provides useful information to investors in assessing our financial condition and results of operations. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, as it provides investors with another perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||||||
Three months ended | Year ended | |||||||||||||||
2018 | 2017* | 2018 | 2017 | |||||||||||||
Revenue (a): | ||||||||||||||||
Affiliate | $ | 68,637 | $ | 63,738 | $ | 259,426 | $ | 240,654 | ||||||||
Third-party | 11,408 | 3,475 | 24,014 | 16,934 | ||||||||||||
Total revenue | 80,045 | 67,213 | 283,440 | 257,588 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Operating and maintenance expenses (a) | 26,983 | 20,954 | 88,390 | 73,521 | ||||||||||||
General and administrative expenses | 5,867 | 3,337 | 21,371 | 16,284 | ||||||||||||
Depreciation and amortization | 8,624 | 7,308 | 29,809 | 24,404 | ||||||||||||
Total costs and expenses | 41,474 | 31,599 | 139,570 | 114,209 | ||||||||||||
Income from operations | 38,571 | 35,614 | 143,870 | 143,379 | ||||||||||||
Other expense: | ||||||||||||||||
Interest expense, net | (10,857) | (9,382) | (40,541) | (31,875) | ||||||||||||
Amortization of loan fees and debt premium | (461) | (363) | (1,717) | (1,488) | ||||||||||||
Accretion on discounted liabilities | (775) | — | (775) | — | ||||||||||||
Net income | 26,478 | 25,869 | 100,837 | 110,016 | ||||||||||||
Less: Net loss attributable to Predecessor | — | (1,123) | (2,443) | (4,986) | ||||||||||||
Less: Net income attributable to noncontrolling interest (g) | 4,709 | 3,347 | 17,819 | 14,565 | ||||||||||||
Net income attributable to the partners | 21,769 | 23,645 | 85,461 | 100,437 | ||||||||||||
Less: Net income attributable to the IDR holder (h) | — | 2,736 | 10,011 | 9,055 | ||||||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 21,769 | $ | 20,909 | $ | 75,450 | $ | 91,382 | ||||||||
Net income per limited partner unit (i): | ||||||||||||||||
Common units - basic | $ | 0.48 | $ | 0.50 | $ | 1.73 | $ | 2.17 | ||||||||
Common units - diluted | 0.48 | 0.50 | 1.73 | 2.17 | ||||||||||||
Subordinated units - basic and diluted | — | — | — | 2.15 | ||||||||||||
Weighted-average limited partner units outstanding (i): | ||||||||||||||||
Common units - basic | 45,593,259 | 42,123,770 | 43,646,997 | 35,505,446 | ||||||||||||
Common units - diluted | 45,708,154 | 42,185,666 | 43,731,299 | 35,568,760 | ||||||||||||
Subordinated units - basic and diluted | — | — | — | 6,572,245 | ||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||
____________
* Prior-period financial information has been retrospectively adjusted for the Development Assets Acquisition.
PBF LOGISTICS LP | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Unaudited, in thousands) | ||||||||||||
Year ended December 31, 2018 | ||||||||||||
PBF | Development Assets* | Consolidated Results | ||||||||||
Revenue: | ||||||||||||
Affiliate | $ | 259,426 | $ | — | $ | 259,426 | ||||||
Third-party | 22,085 | 1,929 | 24,014 | |||||||||
Total revenue | 281,511 | 1,929 | 283,440 | |||||||||
Costs and expenses: | ||||||||||||
Operating and maintenance expenses | 84,410 | 3,980 | 88,390 | |||||||||
General and administrative expenses | 21,371 | — | 21,371 | |||||||||
Depreciation and amortization | 29,417 | 392 | 29,809 | |||||||||
Total costs and expenses | 135,198 | 4,372 | 139,570 | |||||||||
Income (loss) from operations | 146,313 | (2,443) | 143,870 | |||||||||
Other expense: | ||||||||||||
Interest expense, net | (40,541) | — | (40,541) | |||||||||
Amortization of loan fees and debt premium | (1,717) | — | (1,717) | |||||||||
Accretion on discounted liabilities | (775) | — | (775) | |||||||||
Net income (loss) | 103,280 | (2,443) | 100,837 | |||||||||
Less: Net loss attributable to Predecessor | — | (2,443) | (2,443) | |||||||||
Less: Net income attributable to noncontrolling interest (g) | 17,819 | — | 17,819 | |||||||||
Net income attributable to the partners | 85,461 | — | 85,461 | |||||||||
Less: Net income attributable to the IDR holder (h) | 10,011 | — | 10,011 | |||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 75,450 | $ | — | $ | 75,450 | ||||||
See Footnotes to Earnings Release Tables | ||||||||||||
____________
* Reflects the results of the Development Assets prior to our acquisition on July 31, 2018.
PBF LOGISTICS LP | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Unaudited, in thousands) | ||||||||||||
Three months ended December 31, 2017 | ||||||||||||
PBF | Development Assets* | Consolidated Results | ||||||||||
Revenue: | ||||||||||||
Affiliate | $ | 63,738 | $ | — | $ | 63,738 | ||||||
Third-party | 2,775 | 700 | 3,475 | |||||||||
Total revenue | 66,513 | 700 | 67,213 | |||||||||
Costs and expenses: | ||||||||||||
Operating and maintenance expenses | 19,280 | 1,674 | 20,954 | |||||||||
General and administrative expenses | 3,337 | — | 3,337 | |||||||||
Depreciation and amortization | 7,159 | 149 | 7,308 | |||||||||
Total costs and expenses | 29,776 | 1,823 | 31,599 | |||||||||
Income (loss) from operations | 36,737 | (1,123) | 35,614 | |||||||||
Other expense: | ||||||||||||
Interest expense, net | (9,382) | — | (9,382) | |||||||||
Amortization of loan fees and debt premium | (363) | — | — | (363) | ||||||||
Net income (loss) | 26,992 | (1,123) | 25,869 | |||||||||
Less: Net loss attributable to Predecessor | — | (1,123) | (1,123) | |||||||||
Less: Net income attributable to noncontrolling interest (g) | 3,347 | — | 3,347 | |||||||||
Net income attributable to the partners | 23,645 | — | 23,645 | |||||||||
Less: Net income attributable to the IDR holder | 2,736 | — | 2,736 | |||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 20,909 | $ | — | $ | 20,909 | ||||||
See Footnotes to Earnings Release Tables | ||||||||||||
____________
* Reflects the results of the Development Assets prior to our acquisition on July 31, 2018.
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||
PBF | PNGPC* | Development Assets** | Consolidated | |||||||||||||
Revenue: | ||||||||||||||||
Affiliate | $ | 240,654 | $ | — | $ | — | $ | 240,654 | ||||||||
Third-party | 14,159 | — | 2,775 | 16,934 | ||||||||||||
Total revenue | 254,813 | — | 2,775 | 257,588 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Operating and maintenance expenses | 66,443 | 40 | 7,038 | 73,521 | ||||||||||||
General and administrative expenses | 16,284 | — | — | 16,284 | ||||||||||||
Depreciation and amortization | 23,721 | 110 | 573 | 24,404 | ||||||||||||
Total costs and expenses | 106,448 | 150 | 7,611 | 114,209 | ||||||||||||
Income (loss) from operations | 148,365 | (150) | (4,836) | 143,379 | ||||||||||||
Other expense: | ||||||||||||||||
Interest expense, net | (31,875) | — | — | (31,875) | ||||||||||||
Amortization of loan fees and debt premium | (1,488) | — | — | (1,488) | ||||||||||||
Net income (loss) | 115,002 | (150) | (4,836) | 110,016 | ||||||||||||
Less: Net loss attributable to Predecessor | — | (150) | (4,836) | (4,986) | ||||||||||||
Less: Net income attributable to noncontrolling interest (g) | 14,565 | — | — | 14,565 | ||||||||||||
Net income attributable to the partners | 100,437 | — | — | 100,437 | ||||||||||||
Less: Net income attributable to the IDR holder | 9,055 | — | — | 9,055 | ||||||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 91,382 | $ | — | $ | — | $ | 91,382 | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||
____________
* Reflects the results of PNGPC prior to our acquisition on February 28, 2017.
** Reflects the results of the Development Assets prior to our acquisition on July 31, 2018.
PBF LOGISTICS LP | ||||||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||||||
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||||||||||
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
Three months ended | Year ended | |||||||||||||||||||
2018 | 2017* | 2018 | 2017 | |||||||||||||||||
Transportation and Terminaling Segment | ||||||||||||||||||||
Terminals | ||||||||||||||||||||
Total throughput (bpd) (b)(d) | 289,638 | 210,334 | 291,655 | 204,833 | ||||||||||||||||
Lease tank capacity (average lease capacity barrels per | 2,237,539 | 1,935,033 | 2,067,660 | 2,089,529 | ||||||||||||||||
Pipelines | ||||||||||||||||||||
Total throughput (bpd) (b)(d) | 172,976 | 158,339 | 164,787 | 140,900 | ||||||||||||||||
Lease tank capacity (average lease capacity barrels per month) | 1,671,677 | 1,603,474 | 1,583,294 | 1,250,930 | ||||||||||||||||
Storage Segment | ||||||||||||||||||||
Storage capacity reserved (average shell capacity barrels per month) (d) | 7,390,097 | 4,376,698 | 7,550,292 | 4,363,630 | ||||||||||||||||
Cash Flow Information: | ||||||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||||
Operating activities | $ | 15,559 | $ | 20,506 | $ | 133,141 | $ | 138,182 | ||||||||||||
Investing activities | (89,069) | (18,158) | (175,696) | (50,234) | ||||||||||||||||
Financing activities | 75,396 | (22,104) | 42,799 | (132,505) | ||||||||||||||||
Net change in cash | $ | 1,886 | $ | (19,756) | $ | 244 | $ | (44,557) | ||||||||||||
Other Financial Information: | ||||||||||||||||||||
EBITDA attributable to PBFX (c) | $ | 41,107 | $ | 39,190 | $ | 152,428 | $ | 152,084 | ||||||||||||
Distributable cash flow (c) | $ | 28,695 | $ | 28,608 | $ | 111,586 | $ | 120,038 | ||||||||||||
Quarterly distribution declared per unit (e) | $ | 0.5050 | $ | 0.4850 | $ | 1.9900 | $ | 1.8950 | ||||||||||||
Distribution (e): | ||||||||||||||||||||
Common units | $ | 28,313 | $ | 20,634 | $ | 95,120 | $ | 73,322 | ||||||||||||
Subordinated units - PBF LLC | — | — | — | 7,308 | ||||||||||||||||
IDR holder - PBF LLC (h) | — | 2,736 | 10,011 | 9,055 | ||||||||||||||||
Total distribution | $ | 28,313 | $ | 23,370 | $ | 105,131 | $ | 89,685 | ||||||||||||
Coverage ratio (c) | 1.01x | 1.22x | 1.06x | 1.34x | ||||||||||||||||
Capital expenditures, including acquisitions | $ | 89,069 | $ | 18,158 | $ | 175,696 | $ | 90,258 | ||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
____________
* Prior-period financial information has been retrospectively adjusted for the Development Assets Acquisition.
PBF LOGISTICS LP | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||
(Unaudited, in thousands) | ||||||||||||
December 31, | December 31, | |||||||||||
Balance Sheet Information: | 2018 | 2017 | ||||||||||
Cash and cash equivalents (f) | $ | 19,908 | $ | 19,664 | ||||||||
Property, plant and equipment, net | 862,117 | 684,488 | ||||||||||
Total assets | 956,353 | 748,215 | ||||||||||
Total debt (f) | 673,324 | 548,793 | ||||||||||
Total liabilities | 763,163 | 580,455 | ||||||||||
Partners' equity | 23,718 | (4,143) | ||||||||||
Noncontrolling interest (g) | 169,472 | 171,903 | ||||||||||
Total liabilities and equity | 956,353 | 748,215 | ||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||
PBF LOGISTICS LP | |||||||||||||||||||||
EARNINGS RELEASE TABLES | |||||||||||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||
TO EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||||||||
(Unaudited, in thousands) | |||||||||||||||||||||
Three months ended | Year ended | ||||||||||||||||||||
2018 | 2017* | 2018 | 2017 | ||||||||||||||||||
Reconciliation of net income to EBITDA and distributable | |||||||||||||||||||||
Net income | $ | 26,478 | $ | 25,869 | $ | 100,837 | $ | 110,016 | |||||||||||||
Interest expense, net | 10,857 | 9,382 | 40,541 | 31,875 | |||||||||||||||||
Amortization of loan fees and debt premium | 461 | 363 | 1,717 | 1,488 | |||||||||||||||||
Accretion on discounted liabilities | 775 | — | 775 | — | |||||||||||||||||
Depreciation and amortization | 8,624 | 7,308 | 29,809 | 24,404 | |||||||||||||||||
EBITDA | 47,195 | 42,922 | 173,679 | 167,783 | |||||||||||||||||
Less: Predecessor EBITDA | — | (974) | (2,051) | (4,303) | |||||||||||||||||
Less: Noncontrolling interest EBITDA (g) | 6,088 | 4,706 | 23,302 | 20,002 | |||||||||||||||||
EBITDA attributable to PBFX | 41,107 | 39,190 | 152,428 | 152,084 | |||||||||||||||||
Non-cash unit-based compensation expense | 1,208 | 830 | 5,757 | 5,345 | |||||||||||||||||
Cash interest | (10,944) | (9,428) | (40,685) | (33,050) | |||||||||||||||||
Maintenance capital expenditures attributable to PBFX | (2,676) | (1,984) | (5,914) | (4,341) | |||||||||||||||||
Distributable cash flow | $ | 28,695 | $ | 28,608 | $ | 111,586 | $ | 120,038 | |||||||||||||
Reconciliation of net cash provided by operating activities to EBITDA and distributable cash flow (c): | |||||||||||||||||||||
Net cash provided by operating activities | $ | 15,559 | $ | 20,506 | $ | 133,141 | $ | 138,182 | |||||||||||||
Change in operating assets and liabilities | 21,987 | 13,864 | 5,754 | 3,071 | |||||||||||||||||
Interest expense, net | 10,857 | 9,382 | 40,541 | 31,875 | |||||||||||||||||
Non-cash unit-based compensation expense | (1,208) | (830) | (5,757) | (5,345) | |||||||||||||||||
EBITDA | 47,195 | 42,922 | 173,679 | 167,783 | |||||||||||||||||
Less: Predecessor EBITDA | — | (974) | (2,051) | (4,303) | |||||||||||||||||
Less: Noncontrolling interest EBITDA (g) | 6,088 | 4,706 | 23,302 | 20,002 | |||||||||||||||||
EBITDA attributable to PBFX | 41,107 | 39,190 | 152,428 | 152,084 | |||||||||||||||||
Non-cash unit-based compensation expense | 1,208 | 830 | 5,757 | 5,345 | |||||||||||||||||
Cash interest | (10,944) | (9,428) | (40,685) | (33,050) | |||||||||||||||||
Maintenance capital expenditures attributable to PBFX | (2,676) | (1,984) | (5,914) | (4,341) | |||||||||||||||||
Distributable cash flow | $ | 28,695 | $ | 28,608 | $ | 111,586 | $ | 120,038 | |||||||||||||
See Footnotes to Earnings Release Tables | |||||||||||||||||||||
____________
* Prior-period financial information has been retrospectively adjusted for the Development Assets Acquisition.
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Three months ended December 31, 2018 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 67,597 | $ | 12,448 | $ | — | $ | 80,045 | ||||||||
Depreciation and amortization expense | 6,491 | 2,133 | — | 8,624 | ||||||||||||
Income (loss) from operations | 40,278 | 4,160 | (5,867) | 38,571 | ||||||||||||
Interest expense, net, amortization of loan |
— | — | 12,093 | 12,093 | ||||||||||||
Capital expenditures, including the East | 11,295 | 77,774 | — | 89,069 | ||||||||||||
Three months ended December 31, 2017* | ||||||||||||||||
Transportation and Terminaling | Storage | Corporate | Consolidated Total | |||||||||||||
Total revenue (a) | $ | 60,814 | $ | 6,399 | $ | — | $ | 67,213 | ||||||||
Depreciation and amortization expense | 6,396 | 912 | — | 7,308 | ||||||||||||
Income (loss) from operations | 35,566 | 3,385 | (3,337) | 35,614 | ||||||||||||
Interest expense, net and amortization of | — |
— | 9,745 | 9,745 | ||||||||||||
Capital expenditures | 1,864 | 16,294 | — | 18,158 | ||||||||||||
Year ended December 31, 2018 | ||||||||||||||||
Transportation and Terminaling | Storage | Corporate | Consolidated Total | |||||||||||||
Total revenue (a) | $ | 250,412 | $ | 33,028 | $ | — | $ | 283,440 | ||||||||
Depreciation and amortization expense | 24,899 | 4,910 | — | 29,809 | ||||||||||||
Income (loss) from operations | 149,337 | 15,904 | (21,371) | 143,870 | ||||||||||||
Interest expense, net, amortization of loan fees and debt premium and accretion on discounted liabilities | — | — | 43,033 |
43,033 | ||||||||||||
Capital expenditures, including the | 97,077 |
78,619 |
— | 175,696 | ||||||||||||
Year ended December 31, 2017 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated Total | |||||||||||||
Total revenue (a) | $ | 234,338 | $ | 23,250 | $ | — | $ | 257,588 | ||||||||
Depreciation and amortization expense | 21,650 | 2,754 | — | 24,404 | ||||||||||||
Income (loss) from operations | 146,803 | 12,860 | (16,284) | 143,379 | ||||||||||||
Interest expense, net and amortization of | — | — | 33,363 | 33,363 | ||||||||||||
Capital expenditures, including the Toledo | 59,119 | 31,139 | — | 90,258 | ||||||||||||
Balance at December 31, 2018 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total assets | $ | 731,505 | $ | 219,326 | $ | 5,522 | $ | 956,353 | ||||||||
Balance at December 31, 2017 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total assets | $ | 649,975 | $ | 86,760 | $ | 11,480 | $ | 748,215 | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||
____________
* Prior-period financial information has been retrospectively adjusted for the Development Assets Acquisition.
PBF LOGISTICS LP | |||||||||||
EARNINGS RELEASE TABLES | |||||||||||
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
(Unaudited, in thousands, except per unit data) | |||||||||||
(a) | See discussion of the factors affecting comparability noted on page 5. Our results of operations may not be comparable to the historical results of operations for the reasons described below: . | ||||||||||
(b) | Calculated as the sum of the average throughput per day for each asset group for the period presented. | ||||||||||
(c) | See "Non-GAAP Financial Measures" on page 6 for definitions of EBITDA, EBITDA attributable to PBFX, distributable cash flow and coverage ratio. | ||||||||||
(d) | Operating information reflects activity subsequent to our acquisitions, the execution of the commercial agreements with PBF Holding and the completion of certain organic growth projects. | ||||||||||
(e) | On February 14, 2019, we announced a quarterly cash distribution of $0.5050 per limited partner unit based on the results of the fourth quarter of 2018. The distribution is payable on March 14, 2019 to PBFX unitholders of record at the close of business on March 1, 2019. The total distribution amounts include the expected distributions to be made related to fourth quarter earnings. | ||||||||||
(f) | Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents from total debt. We believe this measurement is 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. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of December 31, 2018 and December 31, 2017 was $653,416 and $529,129, respectively. | ||||||||||
(g) | Our wholly-owned subsidiary, PBFX Op Co, holds a 50% controlling interest in Torrance Valley Pipeline Company LLC ("TVPC"), with the other 50% interest in TVPC owned by TVP Holding Company LLC ("TVP Holding"), an indirect subsidiary of PBF Holding. PBFX Op Co is also the sole managing member of TVPC. We, through our ownership of PBFX Op Co, consolidate the financial results of TVPC, and record a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the consolidated statements of operations includes the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the consolidated balance sheets includes the portion of net assets of TVPC attributable to TVP Holding. | ||||||||||
(h) | Subsequent to the closing of the IDR Restructuring, the IDRs will be canceled and exchanged for 10,000,000 newly issued PBFX common units. No distributions will be made to PBF LLC with respect to the IDRs related to the fourth quarter distribution. The newly issued common units will be entitled to normal distributions. As such, no income was allocated to the IDR holder for the three months ended December 31, 2018. | ||||||||||
(i) | We base our calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during the period and the amount of available cash that has been or will be distributed to the limited partners and IDR holders (prior to the IDR Restructuring) for that reporting period. The weighted-average number of common and subordinated units reflects the conversion of all outstanding subordinated units to common units on June 1, 2017. | ||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-announces-immediately-accretive-idr-simplification-agreement-increases-quarterly-cash-distribution-to-0-5050-per-unit-and-announces-fourth-quarter-2018-earnings-results-300795666.html
SOURCE PBF Logistics LP
Article Date
2/14/2019PBF Logistics to Attend UBS MLP One-on-One Conference
Source: PR Newswire
PARSIPPANY, N.J., Jan. 4, 2019 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that the partnership's management will be participating in meetings with institutional investors at the UBS MLP One-on-One Conference on January 14-15, 2019.
The company's meeting materials will be available on the Investor Relations section of the PBF Logistics LP website at www.pbflogistics.com.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-attend-ubs-mlp-one-on-one-conference-300773239.html
SOURCE PBF Logistics LP
Article Date
1/4/20191/2/2019 - PBF Energy to Attend Energy Industry Events
PBF Energy to Attend Energy Industry Events
Source: PR Newswire
PARSIPPANY, N.J., Jan. 2, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be participating in the Mizuho Securities Virtual Refining Conference on January 3, 2019, and attending the Goldman Sachs Global Energy Conference on January 8, 2019.
Relevant presentation materials will be available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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% 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-to-attend-energy-industry-events-300772130.html
SOURCE PBF Energy Inc.
Article Date
1/2/2019PBF Logistics to Release Fourth Quarter 2018 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., Dec. 19, 2018 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that it will release its earnings results for the fourth quarter 2018 on Thursday, February 14, 2019. The company will host a conference call and webcast regarding fourth quarter results and other business matters on Thursday, February 14, 2019, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (866) 342-8591 or (203) 518-9713, conference ID: PBFXQ418. The audio replay will be available two hours after the end of the call through February 28, 2019, by dialing (800) 283-9429 or (402) 220-0871.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-release-fourth-quarter-2018-earnings-results-300769194.html
SOURCE PBF Logistics LP
Article Date
12/19/2018PBF Energy to Release Fourth Quarter 2018 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., Dec. 19, 2018 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that it will release its earnings results for the fourth quarter 2018 on Thursday, February 14, 2019. The company will host a conference call and webcast regarding fourth quarter results and other business matters on Thursday, February 14, 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 (877) 876-9173 or (785) 424-1667, conference ID: PBFQ418. The audio replay will be available two hours after the end of the call through February 28, 2019, by dialing (800) 723-0488 or (402) 220-2651.
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% 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-to-release-fourth-quarter-2018-earnings-results-300769182.html
SOURCE PBF Energy Inc.
Article Date
12/19/201812/14/2018 - Alerian Index Series December 2018 Index Review
Alerian Index Series December 2018 Index Review
Source: PR Newswire
DALLAS, Dec. 14, 2018 /PRNewswire/ -- Alerian announced the results of the December quarterly review for the Alerian Index Series. All changes will be implemented as of the close of business on Friday, December 21, 2018.
AmeriGas Partners (NYSE: APU), Alliance Resource Partners (NASDAQ: ARLP), GasLog Partners (NYSE: GLOP), Golar LNG Partners (NASDAQ: GMLP), Hi-Crush Partners (NYSE: HCLP), Suburban Propane Partners (NYSE: SPH), Sunoco (NYSE: SUN), Teekay LNG Partners (NYSE: TGP), USA Compression Partners (NYSE: USAC), and Viper Energy Partners (NASDAQ: VNOM) will be removed.
There are no constituent changes to the Alerian MLP Infrastructure Index (AMZI) or the Alerian Natural Gas MLP Index (ANGI).
In addition, each index will be rebalanced in accordance with its existing methodology. Constituent additions to and deletions from an index do not reflect an opinion by Alerian on the investment merits of the respective securities.
About Alerian
Alerian equips investors to make informed decisions about energy infrastructure and Master Limited Partnerships (MLPs). Its benchmarks are widely used by industry executives, investment professionals, research analysts, and national media to analyze relative performance. As of November 30, 2018, over $13 billion is directly tied to the Alerian Index Series through exchange-traded funds and notes, separately managed accounts, and structured products. Visit alerian.com to learn more.
View original content:http://www.prnewswire.com/news-releases/alerian-index-series-december-2018-index-review-300765593.html
SOURCE Alerian
Article Date
12/14/201811/27/2018 - Linde to partner with Delaware City Refining Company to establish new hydrogen production facilities
Linde to partner with Delaware City Refining Company to establish new hydrogen production facilities
Source: PR Newswire
BRIDGEWATER, N.J. and PARSIPPANY, N.J., Nov. 27, 2018 /PRNewswire/ -- Linde and PBF Energy (NYSE:PBF) are pleased to jointly announce that the companies and their guests broke ground yesterday for a new hydrogen plant that is being built in Delaware City, DE, in partnership with PBF subsidiary Delaware City Refining Company (DCRC). Delaware Gov. John Carney; U.S. Senators Tom Carper (D-DE) and Chris Coons (D-DE); Delaware City Mayor Stanley E. Green; and other dignitaries joined executives from Linde, PBF Energy, and DCRC in the groundbreaking ceremony. Also in attendance were Kevin Herbein, President of United Steelworkers Local 4-898, and James Maravelias, President of the Delaware State AFL-CIO and Delaware Building Trades Council.
Investments by Linde and DCRC in this project, which include a 25 million standard cubic feet per day (MMSCFD) hydrogen plant and supporting infrastructure, are expected to exceed U.S. $100 million. As part of this initiative, Linde will design, build, own and operate the hydrogen plant, which is targeted for start-up during the second quarter of 2020. The hydrogen plant project will generate about 80 to 100 construction jobs at peak workload, seven permanent positions, and 25 to 30 local contractor employees during major turnarounds.
"Our partnership with Linde has allowed us to progress this attractive project, which will make our Delaware City Refinery even more competitive," added Tom Nimbley, PBF Energy's Chairman and CEO. "The refinery already features complex crude processing flexibility, and the new hydrogen plant will expand our ability to convert our heavy feedstock slate into cleaner, higher-value products, including marine fuels that meet new global, ultra-low sulfur standards established by the International Maritime Organization (IMO) that go into effect in 2020."
Dr. Raghu Menon, Vice President of Onsite Investment Projects for Linde Americas, remarked, "Linde is committed to development and delivery of exceptional value for our customers. Linde customized our solution to meet PBF's and DCRC's criteria, including critical parameters such as plant efficiency, project schedule and environmental performance. Our plant will include a Steam Methane Reformer with a proprietary Linde design and a Selective-Catalytic Reduction process unit that will reduce plant emissions and deliver excellent environmental performance."
About The Linde Group
In the 2017 financial year, The Linde Group generated revenue of USD 21.1 bn (EUR 17.113 bn), making it one of the leading gases and engineering companies in the world, with approximately 58,000 employees working in more than 100 countries worldwide. The strategy of The Linde Group is geared towards long-term profitable growth and focuses on the expansion of its international business, with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment in every one of its business areas, regions and locations across the globe. The company is committed to technologies and products that unite the goals of customer value and sustainable development. For more information, see The Linde Group online at www.linde.com
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
View original content to download multimedia:http://www.prnewswire.com/news-releases/linde-to-partner-with-delaware-city-refining-company-to-establish-new-hydrogen-production-facilities-300755829.html
SOURCE Linde North America, Inc.
Article Date
11/27/201811/27/2018 - Linde to partner with Delaware City Refining Company to establish new hydrogen production facilities
Linde to partner with Delaware City Refining Company to establish new hydrogen production facilities
Source: PR Newswire
BRIDGEWATER, N.J. and PARSIPPANY, N.J., Nov. 27, 2018 /PRNewswire/ -- Linde and PBF Energy (NYSE: PBF) are pleased to jointly announce that the companies and their guests broke ground yesterday for a new hydrogen plant that is being built in Delaware City, DE, in partnership with PBF subsidiary Delaware City Refining Company (DCRC). Delaware Gov. John Carney; U.S. Senators Tom Carper (D-DE) and Chris Coons (D-DE); Delaware City Mayor Stanley E. Green; and other dignitaries joined executives from Linde, PBF Energy, and DCRC in the groundbreaking ceremony. Also in attendance were Kevin Herbein, President of United Steelworkers Local 4-898, and James Maravelias, President of the Delaware State AFL-CIO and Delaware Building Trades Council.
Investments by Linde and DCRC in this project, which include a 25 million standard cubic feet per day (MMSCFD) hydrogen plant and supporting infrastructure, are expected to exceed U.S. $100 million. As part of this initiative, Linde will design, build, own and operate the hydrogen plant, which is targeted for start-up during the second quarter of 2020. The hydrogen plant project will generate about 80 to 100 construction jobs at peak workload, seven permanent positions, and 25 to 30 local contractor employees during major turnarounds.
"Our partnership with Linde has allowed us to progress this attractive project, which will make our Delaware City Refinery even more competitive," added Tom Nimbley, PBF Energy's Chairman and CEO. "The refinery already features complex crude processing flexibility, and the new hydrogen plant will expand our ability to convert our heavy feedstock slate into cleaner, higher-value products, including marine fuels that meet new global, ultra-low sulfur standards established by the International Maritime Organization (IMO) that go into effect in 2020."
Dr. Raghu Menon, Vice President of Onsite Investment Projects for Linde Americas, remarked, "Linde is committed to development and delivery of exceptional value for our customers. Linde customized our solution to meet PBF's and DCRC's criteria, including critical parameters such as plant efficiency, project schedule and environmental performance. Our plant will include a Steam Methane Reformer with a proprietary Linde design and a Selective-Catalytic Reduction process unit that will reduce plant emissions and deliver excellent environmental performance."
About The Linde Group
In the 2017 financial year, The Linde Group generated revenue of USD 21.1 bn (EUR 17.113 bn), making it one of the leading gases and engineering companies in the world, with approximately 58,000 employees working in more than 100 countries worldwide. The strategy of The Linde Group is geared towards long-term profitable growth and focuses on the expansion of its international business, with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment in every one of its business areas, regions and locations across the globe. The company is committed to technologies and products that unite the goals of customer value and sustainable development. For more information, see The Linde Group online at www.linde.com
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
View original content to download multimedia:http://www.prnewswire.com/news-releases/linde-to-partner-with-delaware-city-refining-company-to-establish-new-hydrogen-production-facilities-300755837.html
SOURCE PBF Energy Inc.
Article Date
11/27/201810/31/2018 - PBF Logistics Increases Quarterly Distribution to $0.50 per Unit and Announces Third Quarter 2018 Earnings Results
PBF Logistics Increases Quarterly Distribution to $0.50 per Unit and Announces Third Quarter 2018 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., Oct. 31, 2018 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") today announced third quarter 2018 net income attributable to the limited partners of $18.7 million, or $0.42 per common unit, net of the General Partner interest. During the quarter, the Partnership generated cash from operations of approximately $52.3 million, earnings before interest, income taxes, depreciation, and amortization ("EBITDA") of $38.9 million and distributable cash flow of $28.5 million. Included in general and administrative expenses for the third quarter are $0.8 million, or $0.02 per common unit, of transaction-related expenses.
"PBF Logistics assets continue to operate well and the team remains dedicated to the ongoing expansion of our business. During the third quarter we focused on the execution of our promising organic growth projects and the completion of the East Coast Storage Assets acquisition which adds meaningful storage capacity to our East Coast operations and positions the Partnership to potentially benefit from changes in the marine fuels and heavy oil markets," said PBF Logistics GP LLC Executive Vice President Matt Lucey. "Our active business development efforts have generated these accretive opportunities and we see additional attractive prospects for the continuing growth of the Partnership."
As of September 30, 2018, the Partnership had approximately $464.0 million of liquidity, including approximately $18.0 million in cash and cash equivalents, and access to approximately $446.0 million under its revolving credit facility.
East Coast Storage Assets Acquisition and Drop-downs
On October 1, 2018, the Partnership completed the previously announced acquisition of CPI Operations LLC. The assets acquired include a storage facility and other idled assets located on the Delaware River near Paulsboro, New Jersey (the "East Coast Storage Assets"). The total consideration of $107.0 million includes an initial payment at closing of $75.0 million, plus working capital, with the balance being payable one year after closing.
The East Coast Storage Assets include a storage facility with approximately four million barrels of multi-use storage capacity, of which over 50 percent is heated storage, an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and other assets. With close proximity to the Paulsboro refinery, the assets are expected to provide synergy opportunities with the Partnership's sponsor, PBF Energy. The Partnership expects to invest approximately $8.5 million over the next two years in projects to enhance facility capabilities and expects to achieve run-rate earnings before interest, taxes, depreciation and amortization ("EBITDA") of $15.5 million at the end of 2020.
PBF Logistics Announces Increased Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.50 per common unit. The distribution is payable on November 30, 2018, to unitholders of record at the close of business on November 15, 2018.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
PBFX Reconciliation of Amounts under U.S. GAAP to annualized run-rate EBITDA (unaudited, in millions)
Reconciliation of East Coast Storage Assets and associated projects related Forecasted Net Income to annualized run-rate EBITDA:
(in millions) | East Coast Storage | ||
Forecasted net income | $ | 6.1 | |
Add: Depreciation and amortization expense | 4.5 | ||
Add: Interest expense, net and other financing costs | 4.9 | ||
Annualized run-rate EBITDA | $ | 15.5 | |
Annualized run-rate EBITDA for the East Coast Storage Assets assumes the completion of all related capital projects and full run-rate throughput. The identified organic growth capital projects associated with the acquisition are capable to generate incremental revenue for PBFX above the acquired base assets. The organic projects and the execution of the related contracts are expected to be completed with the assets operating at full run-rate volumes by the end of 2020.
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA should not be considered an alternative to net income, income from operations, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important limitations as an analytical tool because it excludes some, but not all, items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.
Conference Call Information
The Partnership's senior management will host a conference call and webcast regarding quarterly results and other business matters on Wednesday, October 31, 2018, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (800) 894-5910 or (785) 424-1052, conference ID: PBFXQ318. The audio replay will be available two hours after the end of the call through November 14, 2018, by dialing (800) 677-7320 or (402) 220-0666.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets, the possibility that the Partnership may not consummate any pending acquisitions, the Partnership's plans for financing any pending acquisitions, and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present our results of operations, related operational information, and reconciliations of net income and net cash provided by operating activities to EBITDA and distributable cash flow (both as defined below) of PBFX for the three and nine months ended September 30, 2018 and 2017. The financial information presented contains the financial results of PBFX, the Development Assets (as defined below) and PNGPC (as defined below) prior to the Development Assets Acquisition (as defined below) on July 31, 2018 and the PNGPC Acquisition (as defined below) on February 28, 2017.
On July 31, 2018, we acquired from PBF Energy Company LLC ("PBF LLC"), a subsidiary of PBF Energy Inc. ("PBF Energy"), all of the issued and outstanding limited liability company interests (the "Development Assets Acquisition") of: Toledo Rail Logistics Company LLC ("TRLC"), whose assets consist of a loading and unloading rail facility located at PBF Holding's Toledo Refinery (the "Toledo Rail Products Facility"); Chalmette Logistics Company LLC ("CLC"), whose assets consist of a truck loading rack facility (the "Chalmette Truck Rack") and a rail yard facility (the "Chalmette Rosin Yard"), both of which are located at PBF Holding's Chalmette Refinery; Paulsboro Terminaling Company LLC ("PTC"), whose assets consist of a lube oil terminal facility located at PBF Holding's Paulsboro Refinery (the "Paulsboro Lube Oil Terminal"); and DCR Storage and Loading Company LLC ("DSLC"), whose assets consist of an ethanol storage facility located at PBF Holding's Delaware City Refinery (the "Delaware Ethanol Storage Facility" and collectively with the Toledo Rail Products Facility, the Chalmette Truck Rack, the Chalmette Rosin Yard, and the Paulsboro Lube Oil Terminal, the "Development Assets"). In connection with the Development Assets Acquisition, we entered into various commercial agreements with PBF Holding Company LLC ("PBF Holding") and assumed an existing commercial agreement with a third-party.
On April 16, 2018, the Partnership's wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), completed the purchase of two refined product terminals located in Knoxville, Tennessee, which include product tanks, pipeline connections to the Colonial and Plantation pipeline systems and truck loading facilities (the "Knoxville Terminals") from Cummins Terminals, Inc. (the "Knoxville Terminals Purchase").
Effective January 1, 2018, our wholly-owned subsidiary, Delaware City Terminaling Company LLC, and PBF Holding amended the commercial agreements relating to our Delaware City rail unloading assets with the service fees thereunder being adjusted, including the addition of an ancillary fee paid by PBF Holding on an actual cost basis (the "Amended and Restated Rail Agreements").
On April 17, 2017, our wholly-owned subsidiary, PLPT, acquired the Toledo, Ohio refined products terminal assets (the "Toledo Products Terminal") from Sunoco Logistics Partners L.P. (the "Toledo Products Terminal Acquisition"). The Toledo Products Terminal is directly connected to, and currently supplied by, PBF Holding's Toledo Refinery. The Toledo Products Terminal is comprised of a ten-bay truck rack and chemicals, clean product and additive storage capacity.
On February 28, 2017, our wholly-owned subsidiary, PBFX Operating Company LLC ("PBFX Op Co"), acquired from PBF LLC, all of the issued and outstanding limited liability company interests of Paulsboro Natural Gas Pipeline Company LLC ("PNGPC") (the "PNGPC Acquisition"). In connection with the PNGPC Acquisition, we constructed a new 24" natural gas pipeline to replace the existing interstate pipeline, which commenced services in August 2017 (the "Paulsboro Natural Gas Pipeline"). Concurrent with commencement of operations of the Paulsboro Natural Gas Pipeline, a new service agreement was entered into between PNGPC and Paulsboro Refining Company LLC ("PRC").
In November 2017, we completed construction of a new crude storage tank at PBF Holding's Chalmette Refinery (the "Chalmette Storage Tank"). Our wholly-owned subsidiary, PBFX Op Co, began providing storage services to PBF Holding in November 2017 for usage of the Chalmette Storage Tank under a ten-year storage services agreement (the "Chalmette Storage Services Agreement").
The Development Assets Acquisition and the PNGPC Acquisition were transfers between entities under common control. Accordingly, PBFX's financial information contained herein has been retrospectively adjusted to include the historical results of the Development Assets and PNGPC as if it was owned by the Partnership for all periods presented. The results of the Development Assets and PNGPC are included in the Transportation and Terminaling segment.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense, income tax expense, depreciation and amortization expense attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less net cash paid for interest, maintenance capital expenditures and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is distributable cash flow divided by total distribution declared. EBITDA, EBITDA attributable to PBFX and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX and distributable cash flow are not presentations made in accordance with GAAP, they are supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA and EBITDA attributable to PBFX provides useful information to investors in assessing our financial condition and results of operations. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, as it provides investors with another perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2018* | 2017* | 2018* | 2017* | |||||||||||||
Revenue (a): | ||||||||||||||||
Affiliate | $ | 66,140 | $ | 62,359 | $ | 190,789 | $ | 176,916 | ||||||||
Third-party | 4,416 | 3,836 | 12,606 | 13,459 | ||||||||||||
Total revenue | 70,556 | 66,195 | 203,395 | 190,375 | ||||||||||||
Costs and expenses: | ||||||||||||||||
Operating and maintenance expenses (a) | 20,803 | 17,704 | 61,407 | 52,567 | ||||||||||||
General and administrative expenses | 4,725 | 3,534 | 15,504 | 12,947 | ||||||||||||
Depreciation and amortization | 7,451 | 5,756 | 21,185 | 17,096 | ||||||||||||
Total costs and expenses | 32,979 | 26,994 | 98,096 | 82,610 | ||||||||||||
Income from operations | 37,577 | 39,201 | 105,299 | 107,765 | ||||||||||||
Other expense: | ||||||||||||||||
Interest expense, net | (10,070) | (7,416) | (29,684) | (22,493) | ||||||||||||
Amortization of loan fees and debt premium | (497) | (332) | (1,256) | (1,125) | ||||||||||||
Net income | 27,010 | 31,453 | 74,359 | 84,147 | ||||||||||||
Less: Net loss attributable to Predecessor | (80) | (1,219) | (2,443) | (3,863) | ||||||||||||
Less: Net income attributable to noncontrolling interest (g) | 4,725 | 3,799 | 13,110 | 11,218 | ||||||||||||
Net income attributable to the partners | 22,365 | 28,873 | 63,692 | 76,792 | ||||||||||||
Less: Net income attributable to the IDR holder | 3,641 | 2,526 | 10,011 | 6,319 | ||||||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 18,724 | $ | 26,347 | $ | 53,681 | $ | 70,473 | ||||||||
Net income per limited partner unit (h): | ||||||||||||||||
Common units - basic | $ | 0.42 | $ | 0.63 | $ | 1.25 | $ | 1.69 | ||||||||
Common units - diluted | 0.42 | 0.63 | 1.25 | 1.69 | ||||||||||||
Subordinated units - basic and diluted | — | — | — | 1.61 | ||||||||||||
Weighted-average limited partner units outstanding (h): | ||||||||||||||||
Common units - basic | 44,518,365 | 42,127,288 | 42,965,502 | 33,280,957 | ||||||||||||
Common units - diluted | 44,612,522 | 42,161,008 | 43,015,817 | 33,309,555 | ||||||||||||
Subordinated units - basic and diluted | — | — | — | 8,787,068 | ||||||||||||
Cash distribution declared per unit (e) | $ | 0.5000 | $ | 0.4800 | $ | 1.4850 | $ | 1.4100 | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||
* Current and prior-period financial information has been retrospectively adjusted for the Development Assets Acquisition. | ||||||||||||||||
PBF LOGISTICS LP | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Unaudited, in thousands) | ||||||||||||
Three Months Ended September 30, 2018 | ||||||||||||
PBF Logistics | Development | Consolidated | ||||||||||
Revenue: | ||||||||||||
Affiliate | $ | 66,140 | $ | — | $ | 66,140 | ||||||
Third-party | 3,889 | 527 | 4,416 | |||||||||
Total revenue | 70,029 | 527 | 70,556 | |||||||||
Costs and expenses: | ||||||||||||
Operating and maintenance expenses | 20,268 | 535 | 20,803 | |||||||||
General and administrative expenses | 4,725 | — | 4,725 | |||||||||
Depreciation and amortization | 7,379 | 72 | 7,451 | |||||||||
Total costs and expenses | 32,372 | 607 | 32,979 | |||||||||
Income (loss) from operations | 37,657 | (80) | 37,577 | |||||||||
Other expense: | ||||||||||||
Interest expense, net | (10,070) | — | (10,070) | |||||||||
Amortization of loan fees and debt premium | (497) | — | (497) | |||||||||
Net income (loss) | 27,090 | (80) | 27,010 | |||||||||
Less: Net loss attributable to Predecessor | — | (80) | (80) | |||||||||
Less: Net income attributable to noncontrolling interest (g) | 4,725 | — | 4,725 | |||||||||
Net income attributable to the partners | 22,365 | — | 22,365 | |||||||||
Less: Net income attributable to the IDR holder | 3,641 | — | 3,641 | |||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 18,724 | $ | — | $ | 18,724 | ||||||
See Footnotes to Earnings Release Tables | ||||||||||||
*Reflects the results of the Development Assets prior to our acquisition on July 31, 2018. | ||||||||||||
PBF LOGISTICS LP | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Unaudited, in thousands) | ||||||||||||
Three Months Ended September 30, 2017 | ||||||||||||
PBF Logistics | Development | Consolidated | ||||||||||
Revenue: | ||||||||||||
Affiliate | $ | 62,359 | $ | — | $ | 62,359 | ||||||
Third-party | 3,135 | 701 | 3,836 | |||||||||
Total revenue | 65,494 | 701 | 66,195 | |||||||||
Costs and expenses: | ||||||||||||
Operating and maintenance expenses | 15,930 | 1,774 | 17,704 | |||||||||
General and administrative expenses | 3,534 | — | 3,534 | |||||||||
Depreciation and amortization | 5,610 | 146 | 5,756 | |||||||||
Total costs and expenses | 25,074 | 1,920 | 26,994 | |||||||||
Income (loss) from operations | 40,420 | (1,219) | 39,201 | |||||||||
Other expense: | ||||||||||||
Interest expense, net | (7,416) | — | (7,416) | |||||||||
Amortization of loan fees and debt premium | (332) | — | (332) | |||||||||
Net income (loss) | 32,672 | (1,219) | 31,453 | |||||||||
Less: Net loss attributable to Predecessor | — | (1,219) | (1,219) | |||||||||
Less: Net income attributable to noncontrolling interest (g) | 3,799 | — | 3,799 | |||||||||
Net income attributable to the partners | 28,873 | — | 28,873 | |||||||||
Less: Net income attributable to the IDR holder | 2,526 | — | 2,526 | |||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 26,347 | $ | — | $ | 26,347 | ||||||
See Footnotes to Earnings Release Tables | ||||||||||||
*Reflects the results of the Development Assets prior to our acquisition on July 31, 2018. | ||||||||||||
PBF LOGISTICS LP | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Unaudited, in thousands) | ||||||||||||
Nine Months Ended September 30, 2018 | ||||||||||||
PBF Logistics | Development | Consolidated | ||||||||||
Revenue: | ||||||||||||
Affiliate | $ | 190,789 | $ | — | $ | 190,789 | ||||||
Third-party | 10,677 | 1,929 | 12,606 | |||||||||
Total revenue | 201,466 | 1,929 | 203,395 | |||||||||
Costs and expenses: | ||||||||||||
Operating and maintenance expenses | 57,427 | 3,980 | 61,407 | |||||||||
General and administrative expenses | 15,504 | — | 15,504 | |||||||||
Depreciation and amortization | 20,793 | 392 | 21,185 | |||||||||
Total costs and expenses | 93,724 | 4,372 | 98,096 | |||||||||
Income (loss) from operations | 107,742 | (2,443) | 105,299 | |||||||||
Other expense: | ||||||||||||
Interest expense, net | (29,684) | — | (29,684) | |||||||||
Amortization of loan fees and debt premium | (1,256) | — | (1,256) | |||||||||
Net income (loss) | 76,802 | (2,443) | 74,359 | |||||||||
Less: Net loss attributable to Predecessor | — | (2,443) | (2,443) | |||||||||
Less: Net income attributable to noncontrolling interest (g) | 13,110 | — | 13,110 | |||||||||
Net income attributable to the partners | 63,692 | — | 63,692 | |||||||||
Less: Net income attributable to the IDR holder | 10,011 | — | 10,011 | |||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 53,681 | $ | — | $ | 53,681 | ||||||
See Footnotes to Earnings Release Tables | ||||||||||||
*Reflects the results of the Development Assets prior to our acquisition on July 31, 2018. | ||||||||||||
PBF LOGISTICS LP | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Unaudited, in thousands) | ||||||||||||
Nine Months Ended September 30, 2017 | ||||||||||||
PBF Logistics | Development | Consolidated | ||||||||||
Revenue: | ||||||||||||
Affiliate | $ | 176,916 | $ | — | $ | 176,916 | ||||||
Third-party | 11,384 | 2,075 | 13,459 | |||||||||
Total revenue | 188,300 | 2,075 | 190,375 | |||||||||
Costs and expenses: | ||||||||||||
Operating and maintenance expenses | 47,203 | 5,364 | 52,567 | |||||||||
General and administrative expenses | 12,947 | — | 12,947 | |||||||||
Depreciation and amortization | 16,672 | 424 | 17,096 | |||||||||
Total costs and expenses | 76,822 | 5,788 | 82,610 | |||||||||
Income (loss) from operations | 111,478 | (3,713) | 107,765 | |||||||||
Other expense: | ||||||||||||
Interest expense, net | (22,493) | — | (22,493) | |||||||||
Amortization of loan fees and debt premium | (1,125) | — | (1,125) | |||||||||
Net income (loss) | 87,860 | (3,713) | 84,147 | |||||||||
Less: Net loss attributable to Predecessor | (150) | (3,713) | (3,863) | |||||||||
Less: Net income attributable to noncontrolling interest (g) | 11,218 | — | 11,218 | |||||||||
Net income attributable to the partners | 76,792 | — | 76,792 | |||||||||
Less: Net income attributable to the IDR holder | 6,319 | — | 6,319 | |||||||||
Net income attributable to PBF Logistics LP unitholders | $ | 70,473 | $ | — | $ | 70,473 | ||||||
See Footnotes to Earnings Release Tables | ||||||||||||
*Reflects the results of the Development Assets prior to our acquisition on July 31, 2018. | ||||||||||||
PBF LOGISTICS LP | ||||||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||||||
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||||||||||
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
2018* | 2017* | 2018* | 2017* | |||||||||||||||||
Transportation and Terminaling Segment | ||||||||||||||||||||
Terminals | ||||||||||||||||||||
Total throughput (barrels per day ("bpd")) (b)(d) | 299,757 | 196,985 | 290,076 | 202,896 | ||||||||||||||||
Lease tank capacity (average lease capacity barrels per | 1,713,988 | 1,922,453 | 1,970,347 | 2,141,027 | ||||||||||||||||
Pipelines | ||||||||||||||||||||
Total throughput (bpd) (b)(d) | 166,275 | 137,262 | 162,027 | 134,951 | ||||||||||||||||
Lease tank capacity (average lease capacity barrels per | 1,548,747 | 1,273,634 | 1,553,509 | 1,132,124 | ||||||||||||||||
Storage Segment | ||||||||||||||||||||
Storage capacity reserved (average shell capacity | 4,138,709 | 3,709,693 | 4,343,379 | 3,729,789 | ||||||||||||||||
Cash Flow Information: | ||||||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||||
Operating activities | $ | 52,255 | $ | 29,239 | $ | 117,582 | $ | 117,676 | ||||||||||||
Investing activities | (20,956) | (15,536) | (86,627) | (32,076) | ||||||||||||||||
Financing activities | (32,958) | (25,337) | (32,597) | (110,401) | ||||||||||||||||
Net change in cash | $ | (1,659) | $ | (11,634) | $ | (1,642) | $ | (24,801) | ||||||||||||
Other Financial Information: | ||||||||||||||||||||
EBITDA attributable to PBFX (c) | $ | 38,934 | $ | 40,873 | $ | 111,321 | $ | 112,894 | ||||||||||||
Distributable cash flow (c) | $ | 28,545 | $ | 32,293 | $ | 82,891 | $ | 91,430 | ||||||||||||
Quarterly distribution declared per unit (e) | $ | 0.5000 | $ | 0.4800 | $ | 1.4850 | $ | 1.4100 | ||||||||||||
Distributions (e): | ||||||||||||||||||||
Common units | $ | 23,028 | $ | 20,417 | $ | 66,792 | $ | 52,687 | ||||||||||||
Subordinated units - PBF LLC | — | — | — | 7,308 | ||||||||||||||||
IDR holder - PBF LLC | 3,641 | 2,526 | 10,011 | 6,319 | ||||||||||||||||
Total distributions | $ | 26,669 | $ | 22,943 | $ | 76,803 | $ | 66,314 | ||||||||||||
Coverage ratio (c) | 1.07x | 1.41x | 1.08x | 1.38x | ||||||||||||||||
Capital expenditures, including acquisitions | $ | 20,956 | $ | 15,536 | $ | 86,627 | $ | 72,100 | ||||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
* Current and prior-period financial information has been retrospectively adjusted for the Development Assets Acquisition. | ||||||||||||||||||||
PBF LOGISTICS LP | |||||||||
EARNINGS RELEASE TABLES | |||||||||
KEY OPERATING AND FINANCIAL INFORMATION | |||||||||
(Unaudited, in thousands) | |||||||||
September 30, | December 31, | ||||||||
Balance Sheet Information: | 2018 | 2017* | |||||||
Cash and cash equivalents (f) | $ | 18,022 | $ | 19,664 | |||||
Property, plant and equipment, net | 736,876 | 684,488 | |||||||
Total assets | 806,850 | 748,215 | |||||||
Total debt (f) | 567,152 | 548,793 | |||||||
Total liabilities | 611,662 | 580,455 | |||||||
Partners' equity | 26,425 | (4,143) | |||||||
Noncontrolling interest (g) | 168,763 | 171,903 | |||||||
Total liabilities and equity | 806,850 | 748,215 | |||||||
See Footnotes to Earnings Release Tables | |||||||||
* Prior-period financial information has been retrospectively adjusted for the Development Assets Acquisition. | |||||||||
PBF LOGISTICS LP | |||||||||||||||||
EARNINGS RELEASE TABLES | |||||||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||
TO EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||||
(Unaudited, in thousands) | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2018* | 2017* | 2018* | 2017* | ||||||||||||||
Reconciliation of net income to EBITDA and | |||||||||||||||||
Net income | $ | 27,010 | $ | 31,453 | $ | 74,359 | $ | 84,147 | |||||||||
Interest expense, net | 10,070 | 7,416 | 29,684 | 22,493 | |||||||||||||
Amortization of loan fees and debt premium | 497 | 332 | 1,256 | 1,125 | |||||||||||||
Depreciation and amortization | 7,451 | 5,756 | 21,185 | 17,096 | |||||||||||||
EBITDA | 45,028 | 44,957 | 126,484 | 124,861 | |||||||||||||
Less: Predecessor EBITDA | (8) | (1,073) | (2,051) | (3,329) | |||||||||||||
Less: Noncontrolling interest EBITDA (g) | 6,102 | 5,157 | 17,214 | 15,296 | |||||||||||||
EBITDA attributable to PBFX | 38,934 | 40,873 | 111,321 | 112,894 | |||||||||||||
Non-cash unit-based compensation expense | 1,052 | 807 | 4,549 | 4,515 | |||||||||||||
Cash interest | (10,112) | (8,006) | (29,741) | (23,622) | |||||||||||||
Maintenance capital expenditures attributable to PBFX | (1,329) | (1,381) | (3,238) | (2,357) | |||||||||||||
Distributable cash flow | $ | 28,545 | $ | 32,293 | $ | 82,891 | $ | 91,430 | |||||||||
Reconciliation of net cash provided by operating | |||||||||||||||||
Net cash provided by operating activities | $ | 52,255 | $ | 29,239 | $ | 117,582 | $ | 117,676 | |||||||||
Change in operating assets and liabilities | (16,245) | 9,109 | (16,233) | (10,793) | |||||||||||||
Interest expense, net | 10,070 | 7,416 | 29,684 | 22,493 | |||||||||||||
Non-cash unit-based compensation expense | (1,052) | (807) | (4,549) | (4,515) | |||||||||||||
EBITDA | 45,028 | 44,957 | 126,484 | 124,861 | |||||||||||||
Less: Predecessor EBITDA | (8) | (1,073) | (2,051) | (3,329) | |||||||||||||
Less: Noncontrolling interest EBITDA (g) | 6,102 | 5,157 | 17,214 | 15,296 | |||||||||||||
EBITDA attributable to PBFX | 38,934 | 40,873 | 111,321 | 112,894 | |||||||||||||
Non-cash unit-based compensation expense | 1,052 | 807 | 4,549 | 4,515 | |||||||||||||
Cash interest | (10,112) | (8,006) | (29,741) | (23,622) | |||||||||||||
Maintenance capital expenditures attributable to PBFX | (1,329) | (1,381) | (3,238) | (2,357) | |||||||||||||
Distributable cash flow | $ | 28,545 | $ | 32,293 | $ | 82,891 | $ | 91,430 | |||||||||
See Footnotes to Earnings Release Tables | |||||||||||||||||
* Current and prior-period financial information has been retrospectively adjusted for the Development Assets Acquisition. | |||||||||||||||||
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Three Months Ended September 30, 2018* | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 64,011 | $ | 6,545 | $ | — | $ | 70,556 | ||||||||
Depreciation and amortization expense | 6,524 | 927 | — | 7,451 | ||||||||||||
Income (loss) from operations | 38,599 | 3,703 | (4,725) | 37,577 | ||||||||||||
Interest expense, net and amortization of | — | — | 10,567 | 10,567 | ||||||||||||
Capital expenditures | 20,199 | 757 | — | 20,956 | ||||||||||||
Three Months Ended September 30, 2017* | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 60,608 | $ | 5,587 | $ | — | $ | 66,195 | ||||||||
Depreciation and amortization expense | 5,135 | 621 | — | 5,756 | ||||||||||||
Income (loss) from operations | 39,837 | 2,898 | (3,534) | 39,201 | ||||||||||||
Interest expense, net and amortization of | — | — | 7,748 | 7,748 | ||||||||||||
Capital expenditures | 9,243 | 6,293 | — | 15,536 | ||||||||||||
Nine Months Ended September 30, 2018* | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 182,815 | $ | 20,580 | $ | — | $ | 203,395 | ||||||||
Depreciation and amortization expense | 18,408 | 2,777 | — | 21,185 | ||||||||||||
Income (loss) from operations | 109,059 | 11,744 | (15,504) | 105,299 | ||||||||||||
Interest expense, net and amortization of | — | — | 30,940 | 30,940 | ||||||||||||
Capital expenditures, including the | 85,782 | 845 | — | 86,627 | ||||||||||||
Nine Months Ended September 30, 2017* | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total revenue (a) | $ | 173,524 | $ | 16,851 | $ | — | $ | 190,375 | ||||||||
Depreciation and amortization expense | 15,254 | 1,842 | — | 17,096 | ||||||||||||
Income (loss) from operations | 111,237 | 9,475 | (12,947) | 107,765 | ||||||||||||
Interest expense, net and amortization of | — | — | 23,618 | 23,618 | ||||||||||||
Capital expenditures, including the Toledo | 57,255 | 14,845 | — | 72,100 | ||||||||||||
* Current and prior-period financial information has been retrospectively adjusted for the Development Assets Acquisition. | ||||||||||||||||
PBF LOGISTICS LP | ||||||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||||||
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
Balance at September 30, 2018 | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total assets | $ | 718,461 | $ | 84,620 | $ | 3,769 | $ | 806,850 | ||||||||
Balance at December 31, 2017* | ||||||||||||||||
Transportation | Storage | Corporate | Consolidated | |||||||||||||
Total assets | $ | 649,975 | $ | 86,760 | $ | 11,480 | $ | 748,215 | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||||
* Prior-period financial information has been retrospectively adjusted for the Development Assets Acquisition. | ||||||||||||||||
PBF LOGISTICS LP | |||||||||||
EARNINGS RELEASE TABLES | |||||||||||
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
(Unaudited, in thousands, except per unit data) | |||||||||||
(a) | See discussion of the factors affecting comparability noted on page 4. Our results of operations may not be comparable to the historical results of operations for the reasons described below: | ||||||||||
(b) | Calculated as the sum of the average throughput per day for each asset group for the period presented. | ||||||||||
(c) | See "Non-GAAP Financial Measures" on page 5 for definitions of EBITDA, EBITDA attributable to PBFX, distributable cash flow and coverage ratio. | ||||||||||
(d) | Operating information pertains to assets which are included in the Transportation and Terminaling segment. Throughput information reflects activity subsequent to execution of the commercial agreements in connection with the acquisitions of the Toledo Products Terminal, the Paulsboro Natural Gas Pipeline, the Knoxville Terminals and the Development Assets. | ||||||||||
(e) | On October 31, 2018, we announced a quarterly cash distribution of $0.5000 per limited partner unit based on the results of the third quarter of 2018. The distribution is payable on November 30, 2018 to PBFX unitholders of record at the close of business on November 15, 2018. The total distribution amounts include the expected distributions to be made related to third quarter earnings. | ||||||||||
(f) | Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents from total debt. We believe this measurement is 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. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of September 30, 2018 and December 31, 2017 was $549,130 and $529,129, respectively. | ||||||||||
(g) | Our subsidiary, PBFX Op Co, holds a 50% controlling interest in Torrance Valley Pipeline Company LLC ("TVPC"), with the other 50% interest in TVPC owned by TVP Holding Company LLC ("TVP Holding"), an indirect subsidiary of PBF Holding. PBFX Op Co is also the sole managing member of TVPC. We, through our ownership of PBFX Op Co, consolidate the financial results of TVPC, and record a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated statements of operations includes the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated balance sheets includes the portion of net assets of TVPC attributable to TVP Holding. | ||||||||||
(h) | PBFX bases its calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during the period and the amount of available cash that has been or will be distributed to the limited partners and IDR holders for that reporting period. The weighted-average number of common and subordinated units reflects the conversion of all outstanding subordinated units to common units on June 1, 2017. | ||||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-increases-quarterly-distribution-to-0-50-per-unit-and-announces-third-quarter-2018-earnings-results-300740994.html
SOURCE PBF Logistics LP
Article Date
10/31/2018PBF Energy Reports Third Quarter 2018 Results, Announces Approval of Chalmette Coker Restart and Declares Dividend of $0.30 Per Share
Source: PR Newswire
PARSIPPANY, N.J., Oct. 31, 2018 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today reported third quarter 2018 income from operations of $286.4 million as compared to income from operations of $587.3 million for the third quarter of 2017. Excluding special items, third quarter 2018 income from operations was $232.4 million as compared to income from operations of $322.2 million for the third quarter of 2017. 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 44.0% of the limited partner interests as of quarter-end.
The company reported third quarter 2018 net income of $192.5 million and net income attributable to PBF Energy Inc. of $179.5 million or $1.50 per share. This compares to net income of $347.2 million, and net income attributable to PBF Energy Inc. of $314.4 million or $2.85 per share for the third quarter 2017. Special items in the third quarter 2018 results, which increased net income, by a net, after-tax gain of $45.4 million, or $0.37 per share, consisted of a lower-of-cost-or-market ("LCM") inventory adjustment, a gain on land sale at our Torrance refinery, a benefit related to the change in our Tax Receivable Agreement liability, and a charge associated with the early return of certain leased railcars. Adjusted fully-converted net income for the third quarter 2018, excluding special items, was $135.7 million, or $1.13 per share on a fully-exchanged, fully-diluted basis, as described below, compared to an adjusted fully-converted net income of $164.0 million or $1.44 per share, for the third quarter 2017.
Tom Nimbley, PBF Energy's Chairman and CEO, said, "Our strong results for the third quarter continue to reflect the earnings power of our five-refinery system. We are pleased to announce that our board has approved the restart of the idled Chalmette coker. This unique, high-return project leverages existing infrastructure to execute a brown-field project in a fraction of the time and cost required for a new build. As a result, we increase Chalmette's long-term flexibility and ability to process additional volumes of discounted heavy, high-sulfur feedstocks." Mr. Nimbley continued, "Looking forward, crude oil differentials are favorable and our assets are well-positioned to benefit through safe, reliable and environmentally responsible operations."
Chalmette Coker Restart
The board of PBF Energy has approved the restart of the idled 12,000 barrel per day coker at the Chalmette refinery. The coker has been idle since 2010 and PBF has completed detailed engineering for completion of the restart. The unit is expected to be in service by the end of 2019 and is expected to cost approximately $110 million to place in service. Once the idled unit is in service, Chalmette's total coking capacity will increase to 42,000 barrels per day.
PBF Energy Inc. Declares Dividend
The company announced today that it will pay a quarterly dividend of $0.30 per share of Class A common stock on November 30, 2018, to holders of record as of November 15, 2018.
Outlook
For the fourth 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 145,000 to 155,000 barrels per day; Gulf Coast total throughput is expected to average 185,000 to 195,000 barrels per day and West Coast total throughput is expected to average 165,000 to 175,000 barrels per day.
For the full-year 2018, we expect East Coast total throughput to average 320,000 to 340,000 barrels per day; Mid-Continent total throughput is expected to average 145,000 to 155,000 barrels per day; Gulf Coast total throughput is expected to average 185,000 to 195,000 barrels per day and West Coast total throughput is expected to average 170,000 to 180,000 barrels per day.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to Non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income, Adjusted Fully-Converted Net Income 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 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 Wednesday, October 31, 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 accessed by dialing (877) 876-9176 or (785) 424-1667, conference ID: PBFQ318. The audio replay will be available two hours after the end of the call through November 14, 2018, by dialing (800) 723-5154 or (402) 220-2661.
Forward-Looking Statements
Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the company's control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the company's filings with the SEC, as well as the risks disclosed in PBF Logistics LP's SEC filings and any impact PBF Logistics LP may have on the company's credit rating, cost of funds, employees, customer and vendors; risk relating to the securities markets generally; and the impact of adverse market conditions affecting the company, unanticipated developments, regulatory approvals, changes in laws and other events that negatively impact the company. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.
PBF Energy Inc. also currently indirectly owns the general partner and approximately 44.0% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||
EARNINGS RELEASE TABLES | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
(Unaudited, in thousands, except share and per share data) | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2018 | 2017 | 2018 | 2017 | |||||||
Revenues | $ 7,646,360 | $ 5,478,951 | $ 20,893,219 | $ 15,250,649 | ||||||
Cost and expenses: | ||||||||||
Cost of products and other | 6,816,095 | 4,352,061 | 18,400,732 | 13,154,521 | ||||||
Operating expenses (excluding depreciation and amortization expense as reflected | 424,331 | 402,823 | 1,268,161 | 1,266,879 | ||||||
Depreciation and amortization expense | 90,732 | 75,948 | 263,753 | 197,800 | ||||||
Cost of sales | 7,331,158 | 4,830,832 | 19,932,646 | 14,619,200 | ||||||
General and administrative expenses (excluding depreciation and amortization | 69,920 | 58,259 | 191,418 | 143,147 | ||||||
Depreciation and amortization expense | 2,594 | 2,572 | 7,871 | 10,355 | ||||||
(Gain) loss on sale of assets | (43,745) | 28 | (43,072) | 940 | ||||||
Total cost and expenses | 7,359,927 | 4,891,691 | 20,088,863 | 14,773,642 | ||||||
Income from operations | 286,433 | 587,260 | 804,356 | 477,007 | ||||||
Other income (expense): | ||||||||||
Change in Tax Receivable Agreement liability | 7,763 | 565 | 7,763 | 565 | ||||||
Change in fair value of catalyst leases | 1,630 | 473 | 5,783 | (1,011) | ||||||
Debt extinguishment costs | — | — | — | (25,451) | ||||||
Interest expense, net | (42,289) | (36,990) | (128,935) | (114,871) | ||||||
Other non-service components of net periodic benefit cost (Note 16) | 278 | (103) | 833 | (305) | ||||||
Income before income taxes | 253,815 | 551,205 | 689,800 | 335,934 | ||||||
Income tax expense | 61,349 | 203,979 | 167,836 | 112,889 | ||||||
Net income | 192,466 | 347,226 | 521,964 | 223,045 | ||||||
Less: net income attributable to noncontrolling interests | 12,928 | 32,861 | 39,907 | 49,420 | ||||||
Net income attributable to PBF Energy Inc. stockholders | $ 179,538 | $ 314,365 | $ 482,057 | $ 173,625 | ||||||
Net income available to Class A common stock per share: | ||||||||||
Basic | $ 1.53 | $ 2.86 | $ 4.24 | $ 1.58 | ||||||
Diluted | $ 1.50 | $ 2.85 | $ 4.16 | $ 1.57 | ||||||
Weighted-average shares outstanding-basic | 117,029,486 | 109,724,595 | 113,597,970 | 109,634,921 | ||||||
Weighted-average shares outstanding-diluted | 120,405,315 | 113,882,240 | 117,375,170 | 113,791,542 | ||||||
Dividends per common share | $ 0.30 | $ 0.30 | $ 0.90 | $ 0.90 | ||||||
Adjusted fully-converted net income and adjusted fully-converted net income per | ||||||||||
Adjusted fully-converted net income | $ 181,106 | $ 325,091 | $ 488,670 | $ 178,682 | ||||||
Adjusted fully-converted net income per fully exchanged, fully diluted share | $ 1.50 | $ 2.85 | $ 4.16 | $ 1.57 | ||||||
Adjusted fully-converted shares outstanding - diluted | 120,405,315 | 113,882,240 | 117,375,170 | 113,791,542 | ||||||
See Footnotes to Earnings Release Tables | ||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||
(Unaudited, in thousands, except share and per share data) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED FULLY- | September 30, | September 30, | ||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
Net income attributable to PBF Energy Inc. stockholders | $ 179,538 | $ 314,365 | $ 482,057 | $ 173,625 | ||||||||||
Less: Income allocated to participating securities | 194 | 272 | 592 | 811 | ||||||||||
Income available to PBF Energy Inc. stockholders - basic | 179,344 | 314,093 | 481,465 | 172,814 | ||||||||||
Add: Net income attributable to noncontrolling interest (Note 2) | 2,394 | 18,137 | 9,790 | 9,677 | ||||||||||
Less: Income tax expense (Note 3) | (632) | (7,139) | (2,585) | (3,809) | ||||||||||
Adjusted fully-converted net income | $ 181,106 | $ 325,091 | $ 488,670 | $ 178,682 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | (54,801) | (265,077) | (300,456) | (97,943) | ||||||||||
Add: Change in Tax Receivable Agreement liability | (7,763) | (565) | (7,763) | (565) | ||||||||||
Add: Debt extinguishment costs | — | — | — | 25,451 | ||||||||||
Add: Gain on Torrance land sale | (43,761) | — | (43,761) | — | ||||||||||
Add: Early railcar return expense | 44,571 | — | 44,571 | — | ||||||||||
Less: Recomputed income taxes on special items | 16,309 | 104,556 | 81,186 | 28,755 | ||||||||||
Adjusted fully-converted net income excluding special items | $ 135,661 | $ 164,005 | $ 262,447 | $ 134,380 | ||||||||||
Weighted-average shares outstanding of PBF Energy Inc. | 117,029,486 | 109,724,595 | 113,597,970 | 109,634,921 | ||||||||||
Conversion of PBF LLC Series A Units (Note 5) | 1,206,326 | 3,825,508 | 2,184,690 | 3,832,464 | ||||||||||
Common stock equivalents (Note 6) | 2,169,503 | 332,137 | 1,592,510 | 324,157 | ||||||||||
Fully-converted shares outstanding - diluted | 120,405,315 | 113,882,240 | 117,375,170 | 113,791,542 | ||||||||||
Adjusted fully-converted net income per fully exchanged, fully | $ 1.50 | $ 2.85 | $ 4.16 | $ 1.57 | ||||||||||
Adjusted fully-converted net income excluding special items per fully | $ 1.13 | $ 1.44 | $ 2.24 | $ 1.18 | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
RECONCILIATION OF INCOME FROM OPERATIONS TO INCOME | 2018 | 2017 | 2018 | 2017 | ||||||||||
Income from operations (Note 16) | $ 286,433 | $ 587,260 | $ 804,356 | $ 477,007 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | (54,801) | (265,077) | (300,456) | (97,943) | ||||||||||
Add: Gain on Torrance land sale | (43,761) | — | (43,761) | — | ||||||||||
Add: Early railcar return expense | 44,571 | — | 44,571 | — | ||||||||||
Income from operations excluding special items | $ 232,442 | $ 322,183 | $ 504,710 | $ 379,064 | ||||||||||
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 thousands) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
RECONCILIATION OF NET INCOME TO EBITDA AND EBITDA | 2018 | 2017 | 2018 | 2017 | ||||||||||
Net income | $ 192,466 | $ 347,226 | $ 521,964 | $ 223,045 | ||||||||||
Add: Depreciation and amortization expense | 93,326 | 78,520 | 271,624 | 208,155 | ||||||||||
Add: Interest expense, net | 42,289 | 36,990 | 128,935 | 114,871 | ||||||||||
Add: Income tax expense | 61,349 | 203,979 | 167,836 | 112,889 | ||||||||||
EBITDA | $ 389,430 | $ 666,715 | $ 1,090,359 | $ 658,960 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | (54,801) | (265,077) | (300,456) | (97,943) | ||||||||||
Add: Change in Tax Receivable Agreement liability | (7,763) | (565) | (7,763) | (565) | ||||||||||
Add: Debt extinguishment costs | — | — | — | 25,451 | ||||||||||
Add: Gain on Torrance land sale | (43,761) | — | (43,761) | — | ||||||||||
Add: Early railcar return expense | 44,571 | — | 44,571 | — | ||||||||||
EBITDA excluding special items | $ 327,676 | $ 401,073 | $ 782,950 | $ 585,903 | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA | 2018 | 2017 | 2018 | 2017 | ||||||||||
EBITDA | $ 389,430 | $ 666,715 | $ 1,090,359 | $ 658,960 | ||||||||||
Add: Stock-based compensation | 5,591 | 4,222 | 18,608 | 18,064 | ||||||||||
Add: Net non-cash change in fair value of catalyst leases | (1,630) | (473) | (5,783) | 1,011 | ||||||||||
Add: Non-cash LCM inventory adjustment (Note 4) | (54,801) | (265,077) | (300,456) | (97,943) | ||||||||||
Add: Change in Tax Receivable Agreement liability (Note 4) | (7,763) | (565) | (7,763) | (565) | ||||||||||
Add: Debt extinguishment costs (Note 4) | — | — | — | 25,451 | ||||||||||
Adjusted EBITDA | $ 330,827 | $ 404,822 | $ 794,965 | $ 604,978 | ||||||||||
See Footnotes to Earnings Release Tables | ||||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||
EARNINGS RELEASE TABLES | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEET DATA | ||||||||
(Unaudited, in thousands) | ||||||||
September 30, | December 31, | |||||||
2018 | 2017 | |||||||
Balance Sheet Data: | ||||||||
Cash and cash equivalents | $ 1,059,200 | $ 573,021 | ||||||
Inventories | 2,561,106 | 2,213,797 | ||||||
Total assets | 9,215,410 | 8,117,993 | ||||||
Total debt | 2,177,131 | 2,191,650 | ||||||
Total equity | 3,645,361 | 2,902,949 | ||||||
Total equity excluding special items (Note 4, 13) | $ 3,466,344 | $ 2,950,154 | ||||||
Total debt to capitalization ratio (Note 13) | 37 % | 43 % | ||||||
Total debt to capitalization ratio, excluding special items (Note 13) | 39 % | 43 % | ||||||
Net debt to capitalization ratio (Note 13) | 23 % | 36 % | ||||||
Net debt to capitalization ratio, excluding special items (Note 13) | 24 % | 35 % | ||||||
SUMMARIZED STATEMENT OF CASH FLOW DATA | ||||||||
(Unaudited, in thousands) | ||||||||
Nine Months Ended September 30, | ||||||||
2018 | 2017 | |||||||
Cash flows provided by operations | $ 720,329 | $ 322,223 | ||||||
Cash flows used in investing activities | (419,837) | (609,918) | ||||||
Cash flows provided by (used in) financing activities | 185,687 | (157,688) | ||||||
Net increase (decrease) in cash and cash equivalents | 486,179 | (445,383) | ||||||
Cash and cash equivalents, beginning of period | 573,021 | 746,274 | ||||||
Cash and cash equivalents, end of period | $ 1,059,200 | $ 300,891 | ||||||
See Footnotes to Earnings Release Tables | ||||||||
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||
EARNINGS RELEASE TABLES | |||||||||
CONSOLIDATING FINANCIAL INFORMATION (Note 8) | |||||||||
(Unaudited, in thousands) | |||||||||
Three Months Ended September 30, 2018 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Revenues | $ 7,641,944 | $ 70,556 | $ — | $ (66,140) | $ 7,646,360 | ||||
Depreciation and amortization expense | 83,281 | 7,451 | 2,594 | — | 93,326 | ||||
Income (loss) from operations (Note 14, 16) | 321,370 | 37,577 | (67,789) | (4,725) | 286,433 | ||||
Interest expense, net | 2,078 | 10,567 | 29,644 | — | 42,289 | ||||
Capital expenditures | 79,697 | 20,956 | 2,233 | — | 102,886 | ||||
Three Months Ended September 30, 2017 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Revenues | $ 5,475,114 | $ 66,195 | $ — | $ (62,358) | $ 5,478,951 | ||||
Depreciation and amortization expense | 70,192 | 5,756 | 2,572 | — | 78,520 | ||||
Income (loss) from operations (Note 14, 16) | 609,292 | 39,201 | (57,434) | (3,799) | 587,260 | ||||
Interest expense, net | 1,180 | 7,748 | 28,062 | — | 36,990 | ||||
Capital expenditures | 165,179 | 15,536 | 562 | — | 181,277 | ||||
Nine Months Ended September 30, 2018 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Revenues | $ 20,880,613 | $ 203,395 | $ — | $ (190,789) | $ 20,893,219 | ||||
Depreciation and amortization expense | 242,568 | 21,185 | 7,871 | — | 271,624 | ||||
Income (loss) from operations (Note 14, 16) | 895,952 | 105,299 | (183,785) | (13,110) | 804,356 | ||||
Interest expense, net | 6,509 | 30,940 | 91,486 | — | 128,935 | ||||
Capital expenditures (Note 17) | 376,774 | 86,627 | 4,726 | — | 468,127 | ||||
Nine Months Ended September 30, 2017 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Revenues | $ 15,237,189 | $ 190,375 | $ — | $ (176,915) | $ 15,250,649 | ||||
Depreciation and amortization expense | 180,704 | 17,096 | 10,355 | — | 208,155 | ||||
Income (loss) from operations (Note 14, 16) | 521,015 | 107,765 | (140,555) | (11,218) | 477,007 | ||||
Interest expense, net | 3,433 | 23,618 | 87,820 | — | 114,871 | ||||
Capital expenditures (Note 17) | 574,871 | 72,100 | 2,971 | — | 649,942 | ||||
Balance at September 30, 2018 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Total Assets (Note 15) | $ 8,369,215 | $ 806,850 | $ 72,799 | $ (33,454) | $ 9,215,410 | ||||
Balance at December 31, 2017 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Total Assets (Note 15) | $ 7,287,384 | $ 748,215 | $ 123,211 | $ (40,817) | $ 8,117,993 | ||||
See Footnotes to Earnings Release Tables | |||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
MARKET INDICATORS AND KEY OPERATING INFORMATION | ||||||||||||
(Unaudited, amounts in thousands except as indicated) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
Market Indicators (dollars per barrel) (Note 9) | 2018 | 2017 | 2018 | 2017 | ||||||||
Dated Brent Crude | $ 75.07 | $ 52.16 | $ 72.19 | $ 51.79 | ||||||||
West Texas Intermediate (WTI) crude oil | $ 69.63 | $ 48.18 | $ 66.90 | $ 49.32 | ||||||||
Light Louisiana Sweet (LLS) crude oil | $ 74.15 | $ 51.67 | $ 71.11 | $ 51.73 | ||||||||
Alaska North Slope (ANS) crude oil | $ 75.26 | $ 52.04 | $ 72.19 | $ 52.15 | ||||||||
Crack Spreads: | ||||||||||||
Dated Brent (NYH) 2-1-1 | $ 14.62 | $ 18.12 | $ 14.15 | $ 14.84 | ||||||||
WTI (Chicago) 4-3-1 | $ 18.05 | $ 18.82 | $ 15.84 | $ 14.70 | ||||||||
LLS (Gulf Coast) 2-1-1 | $ 13.38 | $ 16.69 | $ 13.26 | $ 13.75 | ||||||||
ANS (West Coast) 4-3-1 | $ 14.84 | $ 20.66 | $ 16.67 | $ 18.78 | ||||||||
Crude Oil Differentials: | ||||||||||||
Dated Brent (foreign) less WTI | $ 5.44 | $ 3.97 | $ 5.29 | $ 2.47 | ||||||||
Dated Brent less Maya (heavy, sour) | $ 9.12 | $ 8.75 | $ 10.21 | $ 6.77 | ||||||||
Dated Brent less WTS (sour) | $ 19.79 | $ 4.96 | $ 13.41 | $ 3.63 | ||||||||
Dated Brent less ASCI (sour) | $ 4.42 | $ 3.82 | $ 4.69 | $ 3.58 | ||||||||
WTI less WCS (heavy, sour) | $ 29.30 | $ 10.03 | $ 24.55 | $ 10.83 | ||||||||
WTI less Bakken (light, sweet) | $ 1.08 | $ (0.69) | $ 0.87 | $ 0.18 | ||||||||
WTI less Syncrude (light, sweet) | $ 5.59 | $ (1.95) | $ 3.00 | $ (1.86) | ||||||||
WTI less LLS (light, sweet) | $ (4.52) | $ (3.49) | $ (4.21) | $ (2.41) | ||||||||
WTI less ANS (light, sweet) | $ (5.63) | $ (3.86) | $ (5.29) | $ (2.82) | ||||||||
Natural gas (dollars per MMBTU) | $ 2.86 | $ 2.95 | $ 2.85 | $ 3.05 | ||||||||
Key Operating Information | ||||||||||||
Production (barrels per day ("bpd") in thousands) | 896.7 | 852.6 | 854.0 | 781.6 | ||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 888.4 | 849.7 | 851.8 | 786.1 | ||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 81.7 | 78.2 | 232.5 | 214.6 | ||||||||
Consolidated gross margin per barrel of throughput | $ 3.86 | $ 8.29 | $ 4.13 | $ 2.94 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, | $ 9.25 | $ 10.22 | $ 8.80 | $ 8.46 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ 5.01 | $ 4.98 | $ 5.26 | $ 5.71 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12) | ||||||||||||
Heavy | 35 % | 33 % | 36 % | 34 % | ||||||||
Medium | 28 % | 30 % | 30 % | 30 % | ||||||||
Light | 23 % | 22 % | 21 % | 21 % | ||||||||
Other feedstocks and blends | 14 % | 15 % | 13 % | 15 % | ||||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | ||||||||
Yield (% of total throughput) | ||||||||||||
Gasoline and gasoline blendstocks | 49 % | 50 % | 49 % | 50 % | ||||||||
Distillates and distillate blendstocks | 32 % | 29 % | 32 % | 29 % | ||||||||
Lubes | 1 % | 1 % | 1 % | 1 % | ||||||||
Chemicals | 2 % | 2 % | 2 % | 2 % | ||||||||
Other | 17 % | 18 % | 16 % | 17 % | ||||||||
Total yield | 101 % | 100 % | 100 % | 99 % | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||
(Unaudited, amounts in thousands except as indicated) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Supplemental Operating Information - East Coast (Delaware City and Paulsboro) | ||||||||||||
Production (bpd in thousands) | 351.0 | 339.6 | 345.0 | 323.8 | ||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 354.6 | 343.7 | 349.2 | 330.1 | ||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 32.6 | 31.6 | 95.3 | 90.1 | ||||||||
Gross margin per barrel of throughput | $ 7.22 | $ 4.45 | $ 4.02 | $ 0.68 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note | $ 7.52 | $ 6.96 | $ 7.07 | $ 5.99 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ 4.15 | $ 3.83 | $ 4.53 | $ 4.50 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 30 % | 31 % | 28 % | 33 % | ||||||||
Medium | 41 % | 38 % | 47 % | 38 % | ||||||||
Light | 9 % | 8 % | 8 % | 10 % | ||||||||
Other feedstocks and blends | 20 % | 23 % | 17 % | 19 % | ||||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 45 % | 46 % | 46 % | 45 % | ||||||||
Distillates and distillate blendstocks | 33 % | 28 % | 33 % | 30 % | ||||||||
Lubes | 2 % | 2 % | 2 % | 2 % | ||||||||
Chemicals | 1 % | 1 % | 1 % | 1 % | ||||||||
Other | 18 % | 22 % | 17 % | 20 % | ||||||||
Total yield | 99 % | 99 % | 99 % | 98 % | ||||||||
Supplemental Operating Information - Mid-Continent (Toledo) | ||||||||||||
Production (bpd in thousands) | 175.5 | 164.7 | 151.0 | 149.6 | ||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 172.1 | 160.6 | 149.5 | 146.5 | ||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 15.8 | 14.8 | 40.8 | 40.0 | ||||||||
Gross margin per barrel of throughput | $ 17.56 | $ 13.15 | $ 10.12 | $ 4.33 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note | $ 14.11 | $ 12.87 | $ 12.01 | $ 9.67 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ 4.39 | $ 4.57 | $ 5.06 | $ 5.21 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Medium | 27 % | 36 % | 32 % | 38 % | ||||||||
Light | 71 % | 62 % | 66 % | 60 % | ||||||||
Other feedstocks and blends | 2 % | 2 % | 2 % | 2 % | ||||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 53 % | 54 % | 54 % | 54 % | ||||||||
Distillates and distillate blendstocks | 35 % | 33 % | 34 % | 33 % | ||||||||
Chemicals | 5 % | 6 % | 5 % | 6 % | ||||||||
Other | 9 % | 10 % | 8 % | 9 % | ||||||||
Total yield | 102 % | 103 % | 101 % | 102 % | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||
(Unaudited, amounts in thousands except as indicated) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||
Supplemental Operating Information - Gulf Coast (Chalmette) | ||||||||||||
Production (bpd in thousands) | 198.3 | 198.1 | 185.8 | 181.7 | ||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 195.5 | 200.4 | 184.4 | 182.6 | ||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 18.0 | 18.5 | 50.4 | 49.9 | ||||||||
Gross margin per barrel of throughput | $ (6.36) | $ 8.57 | $ (0.45) | $ 3.95 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, | $ 7.21 | $ 10.36 | $ 6.62 | $ 9.13 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ 4.36 | $ 4.29 | $ 4.66 | $ 4.96 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 35 % | 34 % | 39 % | 39 % | ||||||||
Medium | 26 % | 24 % | 20 % | 24 % | ||||||||
Light | 23 % | 28 % | 28 % | 21 % | ||||||||
Other feedstocks and blends | 16 % | 14 % | 13 % | 16 % | ||||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 42 % | 43 % | 42 % | 46 % | ||||||||
Distillates and distillate blendstocks | 33 % | 34 % | 33 % | 32 % | ||||||||
Chemicals | 1 % | 2 % | 1 % | 2 % | ||||||||
Other | 25 % | 20 % | 24 % | 20 % | ||||||||
Total yield | 101 % | 99 % | 100 % | 100 % | ||||||||
Supplemental Operating Information - West Coast (Torrance) | ||||||||||||
Production (bpd in thousands) | 171.9 | 150.2 | 172.2 | 126.5 | ||||||||
Crude oil and feedstocks throughput (bpd in thousands) | 166.2 | 145.0 | 168.7 | 126.9 | ||||||||
Total crude oil and feedstocks throughput (millions of barrels) | 15.3 | 13.3 | 46.0 | 34.6 | ||||||||
Gross margin per barrel of throughput | $ (8.27) | $ 8.31 | $ 1.38 | $ 2.18 | ||||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, | $ 10.28 | $ 14.81 | $ 11.96 | $ 12.53 | ||||||||
Refinery operating expense, per barrel of throughput (Note 11) | $ 8.26 | $ 9.13 | $ 7.61 | $ 10.52 | ||||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||||||
Heavy | 85 % | 75 % | 82 % | 72 % | ||||||||
Medium | 6 % | 12 % | 6 % | 8 % | ||||||||
Other feedstocks and blends | 9 % | 13 % | 12 % | 20 % | ||||||||
Total throughput | 100 % | 100 % | 100 % | 100 % | ||||||||
Yield (% of total throughput): | ||||||||||||
Gasoline and gasoline blendstocks | 60 % | 64 % | 59 % | 65 % | ||||||||
Distillates and distillate blendstocks | 27 % | 24 % | 27 % | 20 % | ||||||||
Other | 16 % | 16 % | 16 % | 15 % | ||||||||
Total yield | 103 % | 104 % | 102 % | 100 % | ||||||||
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 thousands, except per barrel amounts) | ||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||
September 30, 2018 | September 30, 2017 | |||||||||||||
RECONCILIATION OF CONSOLIDATED GROSS MARGIN TO | $ | per barrel of | $ | per barrel of | ||||||||||
Calculation of consolidated gross margin: | ||||||||||||||
Revenues | $ 7,646,360 | $ 93.56 | $ 5,478,951 | $ 70.09 | ||||||||||
Less: Cost of Sales | 7,331,158 | 89.70 | 4,830,832 | 61.80 | ||||||||||
Consolidated gross margin | $ 315,202 | $ 3.86 | $ 648,119 | $ 8.29 | ||||||||||
Reconciliation of consolidated gross margin to gross refining | ||||||||||||||
Consolidated gross margin | $ 315,202 | $ 3.86 | $ 648,119 | $ 8.29 | ||||||||||
Add: PBFX operating expense | 20,268 | 0.25 | 15,930 | 0.20 | ||||||||||
Add: PBFX depreciation expense | 7,379 | 0.09 | 5,610 | 0.08 | ||||||||||
Less: Revenues of PBFX | (70,029) | (0.86) | (65,494) | (0.84) | ||||||||||
Add: Refinery operating expenses (Note 16) | 409,600 | 5.01 | 389,504 | 4.98 | ||||||||||
Add: Refinery depreciation expense | 83,353 | 1.02 | 70,338 | 0.90 | ||||||||||
Gross refining margin | $ 765,773 | $ 9.37 | $ 1,064,007 | $ 13.61 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | (54,801) | (0.67) | (265,077) | (3.39) | ||||||||||
Add: Early railcar return expense | 44,571 | 0.55 | — | — | ||||||||||
Gross refining margin excluding special items | $ 755,543 | $ 9.25 | $ 798,930 | $ 10.22 | ||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||
September 30, 2018 | September 30, 2017 | |||||||||||||
RECONCILIATION OF CONSOLIDATED GROSS MARGIN TO | $ | per barrel of | $ | per barrel of | ||||||||||
Calculation of consolidated gross margin: | ||||||||||||||
Revenues | $ 20,893,219 | $ 89.84 | $ 15,250,649 | $ 71.07 | ||||||||||
Less: Cost of Sales | 19,932,646 | 85.71 | 14,619,200 | 68.13 | ||||||||||
Consolidated gross margin | $ 960,573 | $ 4.13 | $ 631,449 | $ 2.94 | ||||||||||
Reconciliation of consolidated gross margin to gross refining | ||||||||||||||
Consolidated gross margin | $ 960,573 | $ 4.13 | $ 631,449 | $ 2.94 | ||||||||||
Add: PBFX operating expense | 57,427 | 0.25 | 47,163 | 0.22 | ||||||||||
Add: PBFX depreciation expense | 20,793 | 0.09 | 16,562 | 0.08 | ||||||||||
Less: Revenues of PBFX | (201,466) | (0.87) | (188,300) | (0.88) | ||||||||||
Add: Refinery operating expense (Note 16) | 1,223,798 | 5.26 | 1,224,757 | 5.71 | ||||||||||
Add: Refinery depreciation expense | 242,960 | 1.04 | 181,238 | 0.84 | ||||||||||
Gross refining margin | $ 2,304,085 | $ 9.90 | $ 1,912,869 | $ 8.91 | ||||||||||
Special Items (Note 4): | ||||||||||||||
Add: Non-cash LCM inventory adjustment | (300,456) | (1.29) | (97,943) | (0.45) | ||||||||||
Add: Early railcar return expense | 44,571 | 0.19 | — | — | ||||||||||
Gross refining margin excluding special items | $ 2,048,200 | $ 8.80 | $ 1,814,926 | $ 8.46 | ||||||||||
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. | |||||||||
(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 26.4% and 39.4% for the 2018 and 2017 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. Our statutory tax rates were reduced in 2018 as a result of the Tax Cut and Jobs Act enactment. | |||||||||
(4) The Non-GAAP measures presented include adjusted fully-converted net income excluding special items, income from operations excluding special items, EBITDA excluding special items and gross refining margin excluding special items. Special items presented for the three and nine months ended September 30, 2018 relate to a lower of cost or market ("LCM") inventory adjustment, changes in the Tax Receivable Agreement liability, gain on the sale of assets related to the Torrance land sale and charges associated with the early return of certain leased railcars. Special items presented for the three and nine months ended September 30, 2017 relate to an LCM inventory adjustment, changes in the Tax Receivable Agreement liability and debt extinguishment costs, as discussed further below. Additionally, the cumulative effects of all prior period special items on equity are shown in footnote 13. | |||||||||
The following table includes the LCM inventory reserve as of each date presented (in thousands): | |||||||||
2018 | 2017 | ||||||||
January 1, | $ 300,456 | $ 595,988 | |||||||
June 30, | 54,801 | 763,122 | |||||||
September 30, | — | 498,045 | |||||||
The following table includes the corresponding impact of changes in the LCM inventory reserve on income from | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
2018 | 2017 | 2018 | 2017 | ||||||
Net LCM inventory adjustment benefit in | $ 54,801 | $ 265,077 | $ 300,456 | $ 97,943 | |||||
Net LCM inventory adjustment benefit in net | 40,328 | 160,743 | 221,106 | 59,393 | |||||
Change in Tax Receivable Agreement liability- During the three and nine months ended September 30, 2018 we recorded a change in the Tax Receivable Agreement liability that increased income before income taxes and net income by $7.8 million and $5.7 million, respectively. During the three and nine months ended September 30, 2017 we recorded a change in the Tax Receivable Agreement liability that increased income before income taxes and net income by $0.6 million and $0.3 million, respectively. The changes in the Tax Receivable Agreement liability reflect charges or benefits attributable to changes in our obligation under the Tax Receivable Agreement due to factors out of our control such as changes in tax rates. | |||||||||
Debt Extinguishment Costs- During the nine months ended September, 30, 2017, we recorded pre-tax debt extinguishment costs of $25.5 million related to the redemption of the 2020 Senior Secured Notes. These nonrecurring charges decreased net income by $15.4 million for the nine months ended September 30, 2017. There were no such costs in the same periods of 2018. | |||||||||
Gain on Torrance land sale- During the three and nine months ended September 30, 2018 we recorded a gain on the sale of a parcel of property acquired as part of the Torrance Refinery, but not part of the refinery itself. The gain increased income from operations and net income by $43.8 million and $32.2 million, respectively. There was no such gain in the same periods of 2017. | |||||||||
Early Return of Railcars- During the three and nine months ended September 30, 2018 we recognized certain expenses within cost of sales associated with the voluntary early return of certain leased railcars. These charges decreased income from operations and net income by $44.6 million and $32.8 million, respectively. There were no such expenses in the same periods of 2017. | |||||||||
(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 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 nine months ended September 30, 2018 and September 30, 2017, respectively. Common stock equivalents exclude the effects of options and warrants to purchase 15,000 and 25,000 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three and nine months ended September 30, 2018, respectively. Common stock equivalents exclude the effects of options and warrants to purchase 6,484,650 and 6,554,650 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three and nine months ended September 30, 2017, respectively. | |||||||||
(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. 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 September 30, 2018, 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, 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. | |||||||||
(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, as described in footnote 4 above, we have also presented the total debt to capitalization and net debt to capitalization ratios excluding the cumulative effects of special items on equity. | |||||||||
September 30, | December 31, | ||||||||
2018 | 2017 | ||||||||
(in thousands) | |||||||||
Total debt | $ 2,177,131 | $ 2,191,650 | |||||||
Total equity | 3,645,361 | 2,902,949 | |||||||
Total capitalization | $ 5,822,492 | $ 5,094,599 | |||||||
Total debt | $ 2,177,131 | $ 2,191,650 | |||||||
Total equity excluding special items | 3,466,344 | 2,950,154 | |||||||
Total capitalization excluding special items | $ 5,643,475 | $ 5,141,804 | |||||||
Total equity | $ 3,645,361 | $ 2,902,949 | |||||||
Special Items (Note 4) | |||||||||
Add: Non-cash LCM inventory adjustment | — | 300,456 | |||||||
Add: Change in Tax Receivable Agreement liability | (284,193) | (276,430) | |||||||
Add: Debt extinguishment costs | 25,451 | 25,451 | |||||||
Add: Gain on Torrance land sale | (43,761) | — | |||||||
Add: Early railcar return expense | 44,571 | — | |||||||
Less: Recomputed income taxes on special items | 58,762 | (22,425) | |||||||
Add: Net tax expense on TCJA related special items | 20,153 | 20,153 | |||||||
Net impact of special items to equity | (179,017) | 47,205 | |||||||
Total equity excluding special items | $ 3,466,344 | $ 2,950,154 | |||||||
Total debt | $ 2,177,131 | $ 2,191,650 | |||||||
Less: Cash and cash equivalents | 1,059,200 | 573,021 | |||||||
Net Debt | $ 1,117,931 | $ 1,618,629 | |||||||
Total debt to capitalization ratio | 37 % | 43 % | |||||||
Total debt to capitalization ratio, excluding special items | 39 % | 43 % | |||||||
Net debt to capitalization ratio | 23 % | 36 % | |||||||
Net debt to capitalization ratio, excluding special items | 24 % | 35 % | |||||||
(14) 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. | |||||||||
(15) 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. | |||||||||
(16) The Company adopted ASU 2017-07 effective January 1, 2018. The new guidance requires the bifurcation of net periodic benefit cost. The service cost component is presented within Income from operations, while the other components are reported separately outside of operations. This guidance was applied retrospectively in the condensed consolidated statements of operations. | |||||||||
The following table shows the effect of the adoption of ASU 2017-07 on our financial statements (in thousands): | |||||||||
Three Months Ended | Nine Months Ended | ||||||||
2018 | 2017 | 2018 | 2017 | ||||||
Refining segment income (expense) related to other | $ 374 | $ (87) | $ 1,115 | $ (257) | |||||
Corporate expense related to other non-service | (96) | (16) | (282) | (48) | |||||
Total income (expense) related to other non-service | $ 278 | $ (103) | $ 833 | $ (305) | |||||
(17) The Logistics segment includes capital expenditures of $58.0 million for the acquisition of the Knoxville Terminals by PBFX on April 16, 2018 and $10.1 million for the acquisition of the Toledo ProductsTerminal by PBFX on April 17, 2017. | |||||||||
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-energy-reports-third-quarter-2018-results-announces-approval-of-chalmette-coker-restart-and-declares-dividend-of-0-30-per-share-300741057.html
SOURCE PBF Energy Inc.
Article Date
10/31/2018PBF Logistics Closes Acquisition of East Coast Storage Assets
Source: PR Newswire
PARSIPPANY, N.J., Oct. 1, 2018 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership" or "PBF Logistics") today announced the completion of the previously announced acquisition of CPI Operations LLC. The assets acquired include a storage facility and other idled assets located on the Delaware River near Paulsboro, New Jersey (the "East Coast Storage Assets"). The total consideration of $107.0 million includes an initial payment at closing of $75.0 million, plus working capital, with the balance being payable one year after closing.
Commenting on the acquisition, Matt Lucey, PBF Logistics Executive Vice President, said, "The ongoing execution of our strategic plan continues to deliver meaningful accretive growth for the Partnership. The acquisition of the East Coast Storage Assets also strategically positions the Partnership for the upcoming International Maritime Organization's low-sulfur fuel specification change in 2020 by adding significant marine-accessible storage assets to our portfolio. The marine facilities are capable of handling a range of material from finished petroleum products and residual fuel oils to heavy, high-sulfur refinery feedstocks and increase synergy opportunities with our sponsor, PBF Energy." Mr. Lucey continued, "We welcome the Crown Point employees to the PBF Logistics' family and look forward to driving further accretive growth for the Partnership."
The East Coast Storage Assets include a storage facility with approximately four million barrels of multi-use storage capacity, of which over 50 percent is heated storage, an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and other assets. With close proximity to the Paulsboro refinery, the assets are expected to provide synergy opportunities with the Partnership's sponsor, PBF Energy. The Partnership expects to invest approximately $8.5 million over the next two years in projects to enhance facility capabilities and expects to achieve run-rate earnings before interest, taxes, depreciation and amortization ("EBITDA") of $15.5 million at the end of 2020.
Non-GAAP Financial Measures
PBFX Reconciliation of Amounts under U.S. GAAP to annualized run-rate EBITDA (unaudited, in millions)
Reconciliation of East Coast Storage assets and associated projects related Forecasted Net Income to annualized run-rate EBITDA:
(millions) | East Coast | ||||
Forecasted net income | $ | 6.1 | |||
Add: Depreciation and amortization expense | 4.5 | ||||
Add: Interest expense, net and other financing costs | 4.9 | ||||
Annualized run-rate EBITDA | $ | 15.5 |
Annualized run-rate EBITDA the East Coast Storage Assets assumes the completion of all related capital projects and full run-rate throughput. The identified organic growth capital projects associated with the acquisition are capable to generate incremental revenue for PBFX above the acquired base assets. The organic projects and the execution of the related contracts are expected to be completed with the assets operating at full run-rate volumes by the end of 2020.
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA should not be considered an alternative to net income, income from operations, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important limitations as an analytical tool because it excludes some, but not all, items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets, the possibility that the Partnership may not consummate the proposed acquisitions, the Partnership's plans for financing the proposed organic projects, and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K and its Quarterly Report on Form 10-Q for the quarter-ended June 30, 2018. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-closes-acquisition-of-east-coast-storage-assets-300722229.html
SOURCE PBF Logistics LP
Article Date
10/1/2018PBF Logistics to Release Third Quarter 2018 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., Sept. 18, 2018 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that it will release its earnings results for the third quarter 2018 on Wednesday, October 31, 2018. The company will host a conference call and webcast regarding third quarter results and other business matters on Wednesday, October 31, 2018, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (800) 894-5910 or (785) 424-1052, conference ID: PBFXQ318. The audio replay will be available two hours after the end of the call through November 14, 2018, by dialing (800) 677-7320 or (402) 220-0666.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content to download multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-release-third-quarter-2018-earnings-results-300714999.html
SOURCE PBF Logistics LP
Article Date
9/18/2018PBF Energy to Release Third Quarter 2018 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., Sept. 18, 2018 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that it will release its earnings results for the third quarter 2018 on Wednesday, October 31, 2018. The company will host a conference call and webcast regarding third quarter results and other business matters on Wednesday, October 31, 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 accessed by dialing (877) 876-9176 or (785) 424-1667, conference ID: PBFQ318. The audio replay will be available two hours after the end of the call through November 14, 2018, by dialing (800) 723-5154 or (402) 220-2661.
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% 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-to-release-third-quarter-2018-earnings-results-300714996.html
SOURCE PBF Energy Inc.
Article Date
9/18/2018PBF Energy to Participate in the Barclays CEO Energy-Power Conference
Source: PR Newswire
PARSIPPANY, N.J., Aug. 29, 2018 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) announced today that the company's management will be participating in the Barclays CEO Energy-Power Conference on September 5, 2018.
The company's presentation materials will be available on the Investor Relations section of the PBF Energy website at http://investors.pbfenergy.com/.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-to-participate-in-the-barclays-ceo-energy-power-conference-300704340.html
SOURCE PBF Energy Inc.
Article Date
8/29/2018PBF Energy Announces Public Offering of its Class A Common Stock
Source: PR Newswire
PARSIPPANY, N.J., Aug. 9, 2018 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) ("PBF Energy") announced today that it has commenced an underwritten public offering (the "Offering") of 6 million shares of its Class A common stock. The underwriter of the Offering will have a thirty day option to purchase up to 900,000 additional shares.
On August 2, 2018, PBF Energy announced a $0.30 per share dividend on outstanding Class A common stock, payable on August 30, 2018 to holders of record at the close of business on August 15, 2018. Settlement of shares purchased in this Offering will occur prior to the record date for this dividend and, as a result, purchasers in this Offering who are holders of record at the close of business on August 15, 2018 will be entitled to receive this dividend and will be responsible for any related tax obligation.
PBF Energy expects to use the net proceeds from the Offering to pursue strategic capital projects associated with optimizing its ability to process heavy sour feedstocks, increasing its clean product yield, and enhancing its system-wide operational reliability, which may include construction of a hydrogen plant facility at PBF Energy's Delaware city refinery and restarting certain idle units at PBF Energy's Chalmette refinery. In addition, net proceeds from this Offering, or a portion thereof, subject to the timing and execution of any potential strategic capital projects, may be used for general corporate purposes, including the repayment of indebtedness and funding working capital requirements.
RBC Capital Markets is acting as the sole underwriter for the Offering. A copy of the prospectus supplement and accompanying base prospectus relating to the Offering may be obtained, when available, by sending a request to RBC Capital Markets, LLC Attn: Prospectus Department, 200 Vesey Street, 8th Floor, New York, NY 10281 or by calling (866) 375-6829 or emailing equityprospectus@rbccm.com. These documents may also be obtained free of charge when they are available from the Securities and Exchange Commission's website ("SEC") at www.sec.gov.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities described herein, nor shall there be any sale of these securities, in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The Offering will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended. The Offering is made pursuant to an effective shelf registration statement and prospectus filed by PBF Energy with the SEC.
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 expectations with respect to the offering and the anticipated use of proceeds therefrom. 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, including the possibility that the potential strategic capital projects may not be completed in the expected timeframe or at all. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the company's filings with the SEC, as well as the risks disclosed in PBF Logistics LP's SEC filings and any impact PBF Logistics LP may have on the company's credit rating, cost of funds, employees, customer and vendors; risk relating to the securities markets generally; and the impact of adverse market conditions affecting the company, unanticipated developments, regulatory approvals, changes in laws and other events that negatively impact the company. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.
PBF Energy Inc. also currently indirectly owns the general partner and approximately 44% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-announces-public-offering-of-its-class-a-common-stock-300695134.html
SOURCE PBF Energy Inc.
Article Date
8/9/2018PBF Logistics Increases Quarterly Distribution to $0.4950 per Unit and Announces Second Quarter 2018 Earnings Results
Source: PR Newswire
PARSIPPANY, N.J., Aug. 2, 2018 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") today announced second quarter 2018 net income attributable to the limited partners of $16.7 million, or $0.39 per common unit, net of the General Partner interest. During the quarter, the Partnership generated cash from operations of approximately $23.3 million, earnings before interest, income taxes, depreciation, and amortization ("EBITDA") of $36.1 million and distributable cash flow of $28.1 million. Included in our general and administrative expenses for the second quarter are $2.6 million, or $0.07 per common unit, of expenses related to incremental stock-based compensation and transaction-related expenses.
"Our base business remains strong and our growing asset base is performing well. On July 31, we completed the drop-down transaction with PBF Energy as announced in April, and earlier in July we announced the agreement to acquire the East Coast Storage Assets," said PBF Logistics GP LLC Executive Vice President Matt Lucey. "Our active business development efforts have generated these accretive transactions and we see additional attractive opportunities to continue the growth of the Partnership and, ultimately, reward our unitholders."
As of June 30, 2018, the Partnership had approximately $291.7 million of liquidity, including approximately $19.7 million in cash and cash equivalents, and access to approximately $272.0 million under its revolving credit facility.
PBF Logistics announces successful closing of upsized $500 million credit facility
PBF Logistics LP announced today that it and certain of its subsidiaries' have entered into an amended and extended five-year revolving credit facility. Commitments under the facility have increased from $360 million to $500 million. The credit facility will be used for acquisitions and other general partnership purposes.
The Partnership's Chief Financial Officer Erik Young said, "This successful syndication demonstrates the growth and development of our business and we thank our lending partners for their commitment to PBF Logistics. Our upsized, five-year credit facility provides us with incremental liquidity and increased financial flexibility that will help fund our disciplined growth strategy."
Wells Fargo Bank is the Administrative Agent for the 20-bank syndicate participating in the facility. Wells Fargo Securities, LLC, BNP Paribas, Citigroup Global Markets Inc., MUFG Union Bank, N.A., Natixis and RBC Capital Markets acted as Joint Lead Arrangers and Joint Bookrunners. BNP Paribas, Citigroup Global Markets Inc., MUFG Union Bank, N.A., Natixis and RBC Capital Markets acted as Co-Syndication Agents.
East Coast Storage Assets Acquisition and Drop-downs
On July 17, 2018, The Partnership announced that it has entered into an agreement to purchase CPI Operations LLC, whose assets include a storage facility and other idled assets located on the Delaware River near Paulsboro, New Jersey (the "East Coast Storage Assets"). The acquisition of the East Coast Storage Assets, combined together with the transactions announced on April 16, 2018, which closed on July 31, 2018, the Partnership expects to achieve annualized run-rate EBITDA of approximately $34 million for a total investment of approximately $243 million, inclusive of related capital projects.
The East Coast Storage Assets include a storage facility with approximately four million barrels of multi-use storage capacity (of which over 50 percent is heated storage), an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and other assets. With close proximity to the Paulsboro refinery, the assets are expected to provide synergy opportunities with the Partnership's sponsor, PBF Energy. The total consideration for the assets is $107.0 million, which is comprised of an initial payment at closing of $75.0 million with the balance being payable one year after closing. Following closing, the Partnership expects to invest approximately $8.5 million over the next two years in projects to enhance facility capabilities and expects to achieve run-rate EBITDA of $15.5 million at the end of 2020. The transaction is expected to close in the fourth quarter subject to customary regulatory and other approvals.
PBF Logistics Announces Increased Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.4950 per common unit. The distribution is payable on August 30, 2018, to unitholders of record at the close of business on August 15, 2018.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
PBFX Reconciliation of Amounts under U.S. GAAP to annualized run-rate EBITDA (unaudited, in millions)
Reconciliation of East Coast Storage Assets, Knoxville Terminals, drop-down assets and associated projects Forecasted Net Income to annualized run-rate EBITDA:
|
(in millions) |
Knoxville |
East Coast |
Total | |||||
|
Forecasted net income |
$ |
10.4 |
$ |
6.1 |
$ |
16.5 | ||
|
Add: Depreciation and amortization expense |
3.8 |
4.5 |
8.3 | |||||
|
Add: Interest expense, net and other financing costs |
3.9 |
4.9 |
8.8 | |||||
|
Annualized run-rate EBITDA |
$ |
18.1 |
$ |
15.5 |
$ |
33.6 | ||
Annualized run-rate EBITDA for the Knoxville Terminals, drop-down assets and the East Coast Storage Assets assumes the completion of all related capital projects and full run-rate throughput. The identified organic growth capital projects associated with each of the acquisitions are capable of generating incremental revenue for PBFX above the acquired base assets. Upon completion of the organic projects, run-rate annualized EBITDA is expected to be approximately $33.6 million, which will be supported by long-term agreements with PBF Energy. The organic projects and the execution of the related contracts are expected to be completed with the assets operating at full run-rate volumes as follows: a) the organic projects associated with the drop-down assets by the end of 2018; b) the Knoxville Terminals by the end of 2019; and c) the East Coast Storage Assets by the end of 2020. The Knoxville Terminals, drop-down assets, the East Coast Storage Assets and the organic growth capital projects are included in the run-rate EBITDA for a full year period.
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA should not be considered an alternative to net income, income from operations, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important limitations as an analytical tool because it excludes some, but not all, items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.
Conference Call Information
The Partnership's senior management will host a conference call and webcast regarding quarterly results and other business matters on Thursday, August 2, 2018, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (866) 342-8591 or (203) 518-9822, conference ID: PBFXQ218. The audio replay will be available two hours after the end of the call through August 16, 2018, by dialing (800) 688-9445 or (402) 220-1371.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets, the possibility that the Partnership may not consummate the proposed acquisitions, the Partnership's plans for financing the proposed acquisitions, and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K and its Quarterly Report on Form 10-Q. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present our results of operations, related operational information, and reconciliations of net income and net cash provided by operating activities to EBITDA and distributable cash flow (both as defined below) of PBFX for the three and six months ended June 30, 2018 and 2017. The financial information presented contains the financial results of PBFX and PNGPC (as defined below) prior to the PNGPC Acquisition (as defined below) on February 28, 2017.
On April 16, 2018, the Partnership's wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), completed the purchase of two refined product terminals located in Knoxville, Tennessee, which include product tanks, pipeline connections to the Colonial and Plantation pipeline systems and truck loading facilities (the "Knoxville Terminals") from Cummins Terminals, Inc. (the "Knoxville Terminals Purchase").
Effective January 1, 2018, our wholly-owned subsidiary, Delaware City Terminaling Company LLC, and PBF Holding Company LLC ("PBF Holding") amended the commercial agreements relating to our Delaware City rail unloading assets with the service fees thereunder being adjusted, including the addition of an ancillary fee paid by PBF Holding on an actual cost basis (the "Amended and Restated Rail Agreements").
On April 17, 2017, our wholly-owned subsidiary, PLPT, acquired the Toledo, Ohio refined products terminal assets (the "Toledo Products Terminal") from Sunoco Logistics Partners L.P. (the "Toledo Products Terminal Acquisition"). The Toledo Products Terminal is directly connected to, and currently supplied by, PBF Holding's Toledo Refinery. The Toledo Products Terminal is comprised of a ten-bay truck rack and chemicals, clean product and additive storage capacity.
On February 28, 2017, our wholly-owned subsidiary, PBFX Operating Company LLC ("PBFX Op Co"), acquired from PBF Energy Company LLC ("PBF LLC"), a subsidiary of PBF Energy Inc. ("PBF Energy"), all of the issued and outstanding limited liability company interests of Paulsboro Natural Gas Pipeline Company LLC ("PNGPC") (the "PNGPC Acquisition"). In connection with the PNGPC Acquisition, we constructed a new 24" natural gas pipeline to replace the existing interstate pipeline, which commenced services in August 2017 (the "Paulsboro Natural Gas Pipeline"). Concurrent with commencement of operations of the Paulsboro Natural Gas Pipeline, a new service agreement was entered into between PNGPC and Paulsboro Refining Company LLC ("PRC").
In November 2017, we completed construction of a new crude storage tank at PBF Holding's Chalmette Refinery (the "Chalmette Storage Tank"). Our wholly-owned subsidiary, PBFX Op Co, began providing storage services to PBF Holding in November 2017 for usage of the Chalmette Storage Tank under a ten-year storage services agreement (the "Chalmette Storage Services Agreement").
The PNGPC Acquisition was a transfer between entities under common control. Accordingly, PBFX's financial information contained herein has been retrospectively adjusted to include the historical results of PNGPC as if it was owned by the Partnership for all periods presented. The results of PNGPC are included in the Transportation and Terminaling segment.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense, income tax expense, depreciation and amortization expense attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less net cash paid for interest, maintenance capital expenditures and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is distributable cash flow divided by total distribution declared. EBITDA, EBITDA attributable to PBFX and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX and distributable cash flow are not presentations made in accordance with GAAP, they are supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA and EBITDA attributable to PBFX provides useful information to investors in assessing our financial condition and results of operations. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, as it provides investors with another perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
|
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||
|
2018 |
2017 |
2018 |
2017 | |||||||||||||
|
Revenue (a): |
||||||||||||||||
|
Affiliate |
$ |
63,785 |
$ |
58,355 |
$ |
124,649 |
$ |
114,557 |
||||||||
|
Third-party |
3,613 |
3,974 |
6,788 |
8,249 |
||||||||||||
|
Total revenue |
67,398 |
62,329 |
131,437 |
122,806 |
||||||||||||
|
Costs and expenses: |
||||||||||||||||
|
Operating and maintenance expenses (a) |
19,111 |
15,504 |
37,159 |
31,273 |
||||||||||||
|
General and administrative expenses |
6,488 |
6,098 |
10,779 |
9,413 |
||||||||||||
|
Depreciation and amortization |
6,919 |
5,710 |
13,414 |
11,062 |
||||||||||||
|
Total costs and expenses |
32,518 |
27,312 |
61,352 |
51,748 |
||||||||||||
|
Income from operations |
34,880 |
35,017 |
70,085 |
71,058 |
||||||||||||
|
Other expense: |
||||||||||||||||
|
Interest expense, net |
(10,029) |
(7,509) |
(19,614) |
(15,077) |
||||||||||||
|
Amortization of loan fees and debt premium |
(396) |
(377) |
(759) |
(793) |
||||||||||||
|
Net income |
24,455 |
27,131 |
49,712 |
55,188 |
||||||||||||
|
Less: Net loss attributable to Predecessor |
— |
— |
— |
(150) |
||||||||||||
|
Less: Net income attributable to noncontrolling interest (g) |
4,363 |
3,820 |
8,385 |
7,419 |
||||||||||||
|
Net income attributable to the partners |
20,092 |
23,311 |
41,327 |
47,919 |
||||||||||||
|
Less: Net income attributable to the IDR holder |
3,415 |
2,107 |
6,370 |
3,793 |
||||||||||||
|
Net income attributable to PBF Logistics LP unitholders |
$ |
16,677 |
$ |
21,204 |
$ |
34,957 |
$ |
44,126 |
||||||||
|
Net income per limited partner unit (h): |
||||||||||||||||
|
Common units - basic |
$ |
0.39 |
$ |
0.49 |
$ |
0.83 |
$ |
1.04 |
||||||||
|
Common units - diluted |
0.39 |
0.49 |
0.83 |
1.04 |
||||||||||||
|
Subordinated units - basic and diluted |
— |
0.52 |
— |
1.07 |
||||||||||||
|
Weighted-average limited partner units outstanding (h): |
||||||||||||||||
|
Common units - basic |
42,231,119 |
31,428,577 |
42,176,202 |
28,784,479 |
||||||||||||
|
Common units - diluted |
42,294,616 |
31,485,563 |
42,190,136 |
28,788,463 |
||||||||||||
|
Subordinated units - basic and diluted |
— |
10,649,228 |
— |
13,253,423 |
||||||||||||
|
Cash distribution declared per unit (e) |
$ |
0.4950 |
$ |
0.4700 |
$ |
0.9850 |
$ |
0.9300 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||
|
2018 |
2017 |
2018 |
2017 | |||||||||||||||||
|
Transportation and Terminaling Segment |
||||||||||||||||||||
|
Terminals |
||||||||||||||||||||
|
Total throughput (barrels per day ("bpd")) (b)(d) |
268,430 |
223,639 |
255,973 |
209,618 |
||||||||||||||||
|
Lease tank capacity (average lease capacity barrels |
1,589,784 |
2,374,420 |
1,869,693 |
2,250,314 |
||||||||||||||||
|
Pipelines |
||||||||||||||||||||
|
Total throughput (bpd) (b)(d) |
166,900 |
121,532 |
159,868 |
133,694 |
||||||||||||||||
|
Lease tank capacity (average lease capacity barrels |
1,574,740 |
750,597 |
1,555,930 |
1,060,197 |
||||||||||||||||
|
Storage Segment |
||||||||||||||||||||
|
Storage capacity reserved (average shell capacity |
4,412,673 |
3,787,736 |
4,445,714 |
3,739,838 |
||||||||||||||||
|
Cash Flow Information: |
||||||||||||||||||||
|
Net cash provided by (used in): |
||||||||||||||||||||
|
Operating activities |
$ |
23,314 |
$ |
36,856 |
$ |
67,370 |
$ |
90,653 |
||||||||||||
|
Investing activities |
(59,568) |
3,136 |
(63,521) |
(16,361) |
||||||||||||||||
|
Financing activities |
33,926 |
(29,768) |
(3,832) |
(87,459) |
||||||||||||||||
|
Net change in cash |
$ |
(2,328) |
$ |
10,224 |
$ |
17 |
$ |
(13,167) |
||||||||||||
|
Other Financial Information: |
||||||||||||||||||||
|
EBITDA attributable to PBFX (c) |
$ |
36,070 |
$ |
35,552 |
$ |
72,387 |
$ |
72,022 |
||||||||||||
|
Distributable cash flow (c) |
$ |
28,100 |
$ |
30,543 |
$ |
54,346 |
$ |
59,137 |
||||||||||||
|
Quarterly distribution declared per unit (e) |
$ |
0.4950 |
$ |
0.4700 |
$ |
0.9850 |
$ |
0.9300 |
||||||||||||
|
Distributions (e): |
||||||||||||||||||||
|
Common units |
$ |
22,800 |
$ |
20,000 |
$ |
43,770 |
$ |
32,272 |
||||||||||||
|
Subordinated units - PBF LLC |
— |
— |
— |
7,308 |
||||||||||||||||
|
IDR holder - PBF LLC |
3,415 |
2,107 |
6,370 |
3,793 |
||||||||||||||||
|
Total distributions |
$ |
26,215 |
$ |
22,107 |
$ |
50,140 |
$ |
43,373 |
||||||||||||
|
Coverage ratio (c) |
1.07x |
1.38x |
1.08x |
1.36x |
||||||||||||||||
|
Capital expenditures, including acquisitions |
$ |
59,568 |
$ |
36,918 |
$ |
63,521 |
$ |
56,385 |
||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF LOGISTICS LP | |||||||||
|
EARNINGS RELEASE TABLES | |||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | |||||||||
|
(Unaudited, in thousands) | |||||||||
|
June 30, |
December 31, | ||||||||
|
Balance Sheet Information: |
2018 |
2017 | |||||||
|
Cash and cash equivalents (f) |
$ |
19,681 |
$ |
19,664 |
|||||
|
Property, plant and equipment, net |
710,412 |
673,823 |
|||||||
|
Total assets |
777,756 |
737,550 |
|||||||
|
Total debt (f) |
603,581 |
548,793 |
|||||||
|
Total liabilities |
627,012 |
580,455 |
|||||||
|
Partners' equity |
(18,294) |
(14,808) |
|||||||
|
Noncontrolling interest (g) |
169,038 |
171,903 |
|||||||
|
Total liabilities and equity |
777,756 |
737,550 |
|||||||
|
See Footnotes to Earnings Release Tables | |||||||||
|
PBF LOGISTICS LP | |||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||
|
TO EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||
|
Three Months Ended |
Six Months Ended | ||||||||||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||||||||||
|
Reconciliation of net income to EBITDA and |
|||||||||||||||||
|
Net income |
$ |
24,455 |
$ |
27,131 |
$ |
49,712 |
$ |
55,188 |
|||||||||
|
Interest expense, net |
10,029 |
7,509 |
19,614 |
15,077 |
|||||||||||||
|
Amortization of loan fees and debt premium |
396 |
377 |
759 |
793 |
|||||||||||||
|
Depreciation and amortization |
6,919 |
5,710 |
13,414 |
11,062 |
|||||||||||||
|
EBITDA |
41,799 |
40,727 |
83,499 |
82,120 |
|||||||||||||
|
Less: Predecessor EBITDA |
— |
— |
— |
(40) |
|||||||||||||
|
Less: Noncontrolling interest EBITDA (g) |
5,729 |
5,175 |
11,112 |
10,138 |
|||||||||||||
|
EBITDA attributable to PBFX |
36,070 |
35,552 |
72,387 |
72,022 |
|||||||||||||
|
Non-cash unit-based compensation expense |
2,663 |
3,028 |
3,497 |
3,708 |
|||||||||||||
|
Cash interest |
(10,049) |
(7,866) |
(19,629) |
(15,617) |
|||||||||||||
|
Maintenance capital expenditures attributable to PBFX |
(584) |
(171) |
(1,909) |
(976) |
|||||||||||||
|
Distributable cash flow |
$ |
28,100 |
$ |
30,543 |
$ |
54,346 |
$ |
59,137 |
|||||||||
|
Reconciliation of net cash provided by operating |
|||||||||||||||||
|
Net cash provided by operating activities |
$ |
23,314 |
$ |
36,856 |
$ |
67,370 |
$ |
90,653 |
|||||||||
|
Change in operating assets and liabilities |
11,119 |
(610) |
12 |
(19,902) |
|||||||||||||
|
Interest expense, net |
10,029 |
7,509 |
19,614 |
15,077 |
|||||||||||||
|
Non-cash unit-based compensation expense |
(2,663) |
(3,028) |
(3,497) |
(3,708) |
|||||||||||||
|
EBITDA |
41,799 |
40,727 |
83,499 |
82,120 |
|||||||||||||
|
Less: Predecessor EBITDA |
— |
— |
— |
(40) |
|||||||||||||
|
Less: Noncontrolling interest EBITDA (g) |
5,729 |
5,175 |
11,112 |
10,138 |
|||||||||||||
|
EBITDA attributable to PBFX |
36,070 |
35,552 |
72,387 |
72,022 |
|||||||||||||
|
Non-cash unit-based compensation expense |
2,663 |
3,028 |
3,497 |
3,708 |
|||||||||||||
|
Cash interest |
(10,049) |
(7,866) |
(19,629) |
(15,617) |
|||||||||||||
|
Maintenance capital expenditures attributable to PBFX |
(584) |
(171) |
(1,909) |
(976) |
|||||||||||||
|
Distributable cash flow |
$ |
28,100 |
$ |
30,543 |
$ |
54,346 |
$ |
59,137 |
|||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||
|
Three Months Ended June 30, 2018 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total revenue (a) |
$ |
60,432 |
$ |
6,966 |
$ |
— |
$ |
67,398 |
||||||||
|
Depreciation and amortization expense |
5,994 |
925 |
— |
6,919 |
||||||||||||
|
Income (loss) from operations |
37,318 |
4,050 |
(6,488) |
34,880 |
||||||||||||
|
Interest expense, net and amortization of |
— |
— |
10,425 |
10,425 |
||||||||||||
|
Capital expenditures, including the |
59,566 |
2 |
— |
59,568 |
||||||||||||
|
Three Months Ended June 30, 2017 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total revenue (a) |
$ |
56,603 |
$ |
5,726 |
$ |
— |
$ |
62,329 |
||||||||
|
Depreciation and amortization expense |
5,090 |
620 |
— |
5,710 |
||||||||||||
|
Income (loss) from operations |
37,788 |
3,327 |
(6,098) |
35,017 |
||||||||||||
|
Interest expense, net and amortization of |
— |
— |
7,886 |
7,886 |
||||||||||||
|
Capital expenditures, including the Toledo |
32,540 |
4,378 |
— |
36,918 |
||||||||||||
|
Six Months Ended June 30, 2018 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total revenue (a) |
$ |
117,402 |
$ |
14,035 |
$ |
— |
$ |
131,437 |
||||||||
|
Depreciation and amortization expense |
11,564 |
1,850 |
— |
13,414 |
||||||||||||
|
Income (loss) from operations |
72,823 |
8,041 |
(10,779) |
70,085 |
||||||||||||
|
Interest expense, net and amortization of l |
— |
— |
20,373 |
20,373 |
||||||||||||
|
Capital expenditures, including the Knoxville |
63,433 |
88 |
— |
63,521 |
||||||||||||
|
Six Months Ended June 30, 2017 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total revenue (a) |
$ |
111,542 |
$ |
11,264 |
$ |
— |
$ |
122,806 |
||||||||
|
Depreciation and amortization expense |
9,841 |
1,221 |
— |
11,062 |
||||||||||||
|
Income (loss) from operations |
73,894 |
6,577 |
(9,413) |
71,058 |
||||||||||||
|
Interest expense, net and amortization of |
— |
— |
15,870 |
15,870 |
||||||||||||
|
Capital expenditures, including the Toledo |
47,833 |
8,552 |
— |
56,385 |
||||||||||||
|
Balance at June 30, 2018 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total assets |
$ |
684,582 |
$ |
84,489 |
$ |
8,685 |
$ |
777,756 |
||||||||
|
Balance at December 31, 2017 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total assets |
$ |
639,310 |
$ |
86,760 |
$ |
11,480 |
$ |
737,550 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF LOGISTICS LP | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
|
(Unaudited, in thousands, except per unit data) | |||||||||||
|
(a) |
See discussion of the factors affecting comparability noted on page 5. Our results of operations may not be comparable to the historical results of operations for the reasons described below: | ||||||||||
|
(b) |
Calculated as the sum of the average throughput per day for each asset group for the period presented. | ||||||||||
|
(c) |
See "Non-GAAP Financial Measures" on page 6 for definitions of EBITDA, EBITDA attributable to PBFX, distributable cash flow and coverage ratio. | ||||||||||
|
(d) |
Operating information pertains to assets which are included in the Transportation and Terminaling segment. Throughput information reflects activity subsequent to execution of the commercial agreements in connection with the acquisitions of the Toledo Products Terminal, the Paulsboro Natural Gas Pipeline and the Knoxville Terminals. | ||||||||||
|
(e) |
On August 2, 2018, we announced a quarterly cash distribution of $0.4950 per limited partner unit based on the results of the second quarter of 2018. The distribution is payable on August 30, 2018 to PBFX unitholders of record at the close of business on August 15, 2018. The total distribution amounts include the expected distributions to be made related to second quarter earnings. | ||||||||||
|
(f) |
Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents from total debt. We believe this measurement is 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. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of June 30, 2018 and December 31, 2017 was $583,900 and $529,129, respectively. | ||||||||||
|
(g) |
Our subsidiary, PBFX Op Co, holds a 50% controlling interest in Torrance Valley Pipeline Company LLC ("TVPC"), with the other 50% interest in TVPC owned by TVP Holding Company LLC ("TVP Holding"), an indirect subsidiary of PBF Holding. PBFX Op Co is also the sole managing member of TVPC. We, through our ownership of PBFX Op Co, consolidate the financial results of TVPC, and record a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated statements of operations includes the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated balance sheets includes the portion of net assets of TVPC attributable to TVP Holding. | ||||||||||
|
(h) |
PBFX bases its calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during the period and the amount of available cash that has been or will be distributed to the general partner, limited partners and IDR holders for that reporting period. The weighted-average number of common and subordinated units reflects the conversion of all outstanding subordinated units to common units on June 1, 2017. | ||||||||||
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-increases-quarterly-distribution-to-0-4950-per-unit-and-announces-second-quarter-2018-earnings-results-300690733.html
SOURCE PBF Logistics LP
Article Date
8/2/2018PBF Energy Reports Second Quarter 2018 Results, Declares Dividend of $0.30 Per Share
Source: PR Newswire
PARSIPPANY, N.J., Aug. 2, 2018 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today reported second quarter 2018 income from operations of $422.3 million as compared to loss from operations of $111.0 million for the second quarter of 2017. Excluding special items, second quarter 2018 income from operations was $264.3 million as compared to income from operations of $40.0 million for the second quarter of 2017. Special items in the second quarter 2018 results, which increased operating income, include a net, non-cash, after-tax gain of $116.3 million, or $1.00 per share, lower-of-cost-or-market ("LCM") inventory adjustment.
The company reported second quarter 2018 net income of $287.7 million and net income attributable to PBF Energy Inc. of $272.2 million or $2.37 per share. This compares to net loss of $104.2 million, and net loss attributable to PBF Energy Inc. of $109.7 million or $1.01 per share for the second quarter 2017. Adjusted fully-converted net income for the second quarter 2018, excluding special items, was $160.2 million, or $1.38 per share on a fully-exchanged, fully-diluted basis, as described below, compared to an adjusted fully-converted net loss of $6.9 million or $0.06 per share, for the second quarter 2017. 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 43.9% of the limited partner interests as of quarter-end.
Tom Nimbley, PBF Energy's Chairman and CEO, said, "Our strong results for the second quarter reflect the the earnings power of our five-refinery system. The investments and improvements we have made, especially at Torrance, are beginning to show in our operations and we have additional opportunities system-wide to further enhance our earnings potential." Mr. Nimbley continued, "Looking forward, our assets are well-positioned to benefit from favorable market conditions through safe, reliable and environmentally responsible operations."
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, 2018, to holders of record as of August 15, 2018.
Outlook
For the third quarter 2018, we expect East Coast total throughput to average 340,000 to 360,000 barrels per day; Mid-Continent total throughput is expected to average 145,000 to 155,000 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 165,000 to 175,000 barrels per day.
For the full-year 2018, we expect East Coast total throughput to average 340,000 to 360,000 barrels per day; Mid-Continent total throughput is expected to average 140,000 to 150,000 barrels per day; Gulf Coast total throughput is expected to average 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.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to Non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income (Loss), Adjusted Fully-Converted Net Income (Loss) excluding special items, Adjusted Fully-Converted Net Income (Loss) per fully-exchanged, fully-diluted share, gross refining margin, gross refining margin excluding special items, gross refining margin per barrel of throughput, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization), EBITDA excluding special items, Adjusted EBITDA and projected EBITDA related to the refinery acquisitions. PBF believes that Non-GAAP financial measures provide useful information about its operating performance and financial results. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBF's Non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the Non-GAAP measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
PBF Energy's senior management will host a conference call and webcast regarding quarterly results and other business matters on Thursday, August 2, 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 accessed by dialing (877) 876-9176 or (785) 424-1667, conference ID: PBFQ218. The audio replay will be available two hours after the end of the call through August 16, 2018, by dialing (800) 723-0498 or (402) 220-2652.
Forward-Looking Statements
Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the company's control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the company's filings with the SEC, as well as the risks disclosed in PBF Logistics LP's SEC filings and any impact PBF Logistics LP may have on the company's credit rating, cost of funds, employees, customer and vendors; risk relating to the securities markets generally; and the impact of adverse market conditions affecting the company, unanticipated developments, regulatory approvals, changes in laws and other events that negatively impact the company. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.
PBF Energy Inc. also currently indirectly owns the general partner and approximately 44% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
|
(Unaudited, in thousands, except share and per share data) | ||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||
|
June 30, |
June 30, | |||||||||
|
2018 |
2017 |
2018 |
2017 | |||||||
|
Revenues |
$ 7,444,083 |
$ 5,017,225 |
$ 13,246,859 |
$ 9,771,698 | ||||||
|
Cost and expenses (Note 1): |
||||||||||
|
Cost of products and other |
6,452,535 |
4,605,693 |
11,584,637 |
8,802,460 | ||||||
|
Operating expenses (excluding depreciation and amortization expense as reflected |
417,695 |
412,790 |
843,830 |
864,056 | ||||||
|
Depreciation and amortization expense |
89,748 |
62,683 |
173,021 |
121,853 | ||||||
|
Cost of sales |
6,959,978 |
5,081,166 |
12,601,488 |
9,788,369 | ||||||
|
General and administrative expenses (excluding depreciation and amortization |
58,685 |
41,058 |
121,498 |
84,888 | ||||||
|
Depreciation and amortization expense |
2,563 |
6,020 |
5,277 |
7,782 | ||||||
|
Loss on sale of assets |
594 |
29 |
673 |
912 | ||||||
|
Total cost and expenses |
7,021,820 |
5,128,273 |
12,728,936 |
9,881,951 | ||||||
|
Income (loss) from operations |
422,263 |
(111,048) |
517,923 |
(110,253) | ||||||
|
Other income (expense): |
||||||||||
|
Change in fair value of catalyst leases |
4,140 |
1,104 |
4,153 |
(1,484) | ||||||
|
Debt extinguishment costs |
— |
(25,451) |
— |
(25,451) | ||||||
|
Interest expense, net |
(43,448) |
(40,698) |
(86,646) |
(77,881) | ||||||
|
Other non-service components of net periodic benefit cost (Note 17) |
277 |
(101) |
555 |
(202) | ||||||
|
Income (loss) before income taxes |
383,232 |
(176,194) |
435,985 |
(215,271) | ||||||
|
Income tax expense (benefit) |
95,545 |
(72,043) |
106,487 |
(91,090) | ||||||
|
Net income (loss) |
287,687 |
(104,151) |
329,498 |
(124,181) | ||||||
|
Less: net income attributable to noncontrolling interests |
15,534 |
5,512 |
26,979 |
16,559 | ||||||
|
Net income (loss) attributable to PBF Energy Inc. stockholders |
$ 272,153 |
$ (109,663) |
$ 302,519 |
$ (140,740) | ||||||
|
Net income (loss) available to Class A common stock per share: |
||||||||||
|
Basic |
$ 2.41 |
$ (1.01) |
$ 2.70 |
$ (1.30) | ||||||
|
Diluted |
$ 2.37 |
$ (1.01) |
$ 2.66 |
$ (1.30) | ||||||
|
Weighted-average shares outstanding-basic |
112,875,813 |
108,779,992 |
111,853,774 |
108,770,237 | ||||||
|
Weighted-average shares outstanding-diluted |
116,409,273 |
108,779,992 |
115,749,927 |
108,770,237 | ||||||
|
Dividends per common share |
$ 0.30 |
$ 0.30 |
$ 0.60 |
$ 0.60 | ||||||
|
Adjusted fully-converted net income (loss) and adjusted fully-converted net |
||||||||||
|
Adjusted fully-converted net income (loss) |
$ 276,451 |
$ (113,937) |
$ 307,564 |
$ (146,409) | ||||||
|
Adjusted fully-converted net income (loss) per fully exchanged, fully diluted share |
$ 2.37 |
$ (1.01) |
$ 2.66 |
$ (1.30) | ||||||
|
Adjusted fully-converted shares outstanding - diluted |
116,409,273 |
112,608,863 |
115,749,927 |
112,606,236 | ||||||
|
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 (LOSS) TO ADJUSTED |
Three Months Ended |
Six Months Ended | ||||||||||||||
|
NET INCOME (LOSS) AND ADJUSTED FULLY-CONVERTED NET |
June 30, |
June 30, | ||||||||||||||
|
EXCLUDING SPECIAL ITEMS (Note 2) |
2018 |
2017 |
2018 |
2017 | ||||||||||||
|
Net income (loss) attributable to PBF Energy Inc. stockholders |
$ |
272,153 |
$ |
(109,663) |
$ |
302,519 |
$ |
(140,740) |
||||||||
|
Less: Income allocated to participating securities |
197 |
269 |
398 |
539 |
||||||||||||
|
Income (loss) available to PBF Energy Inc. stockholders - basic |
271,956 |
(109,932) |
302,121 |
(141,279) |
||||||||||||
|
Add: Net income (loss) attributable to noncontrolling interest (Note 3) |
6,108 |
(6,604) |
7,396 |
(8,460) |
||||||||||||
|
Less: Income tax (expense) benefit (Note 4) |
(1,613) |
2,599 |
(1,953) |
3,330 |
||||||||||||
|
Adjusted fully-converted net income (loss) |
$ |
276,451 |
$ |
(113,937) |
$ |
307,564 |
$ |
(146,409) |
||||||||
|
Special Items (Note 5): |
||||||||||||||||
|
Add: Non-cash LCM inventory adjustment |
(158,002) |
151,095 |
(245,655) |
167,134 |
||||||||||||
|
Add: Debt extinguishment costs |
— |
25,451 |
— |
25,451 |
||||||||||||
|
Less: Recomputed income taxes on special items |
41,728 |
(69,489) |
64,877 |
(75,801) |
||||||||||||
|
Adjusted fully-converted net income (loss) excluding special items |
$ |
160,177 |
$ |
(6,880) |
$ |
126,786 |
$ |
(29,625) |
||||||||
|
Weighted-average shares outstanding of PBF Energy Inc. |
112,875,813 |
108,779,992 |
111,853,774 |
108,770,237 |
||||||||||||
|
Conversion of PBF LLC Series A Units (Note 6) |
1,838,196 |
3,828,871 |
2,681,980 |
3,835,999 |
||||||||||||
|
Common stock equivalents (Note 7) |
1,695,264 |
— |
1,214,173 |
— |
||||||||||||
|
Fully-converted shares outstanding - diluted |
116,409,273 |
112,608,863 |
115,749,927 |
112,606,236 |
||||||||||||
|
Adjusted fully-converted net income (loss) (per fully exchanged, fully |
$ |
2.37 |
$ |
(1.01) |
$ |
2.66 |
$ |
(1.30) |
||||||||
|
Adjusted fully-converted net income (loss) excluding special items |
$ |
1.38 |
$ |
(0.06) |
$ |
1.10 |
$ |
(0.26) |
||||||||
|
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS |
June 30, |
June 30, | ||||||||||||||
|
TO INCOME FROM OPERATIONS EXCLUDING SPECIAL ITEMS |
2018 |
2017 |
2018 |
2017 | ||||||||||||
|
Income (loss) from operations (Note 17) |
$ |
422,263 |
$ |
(111,048) |
$ |
517,923 |
$ |
(110,253) |
||||||||
|
Special Items (Note 5): |
||||||||||||||||
|
Add:Non-cash LCM inventory adjustment |
(158,002) |
151,095 |
(245,655) |
167,134 |
||||||||||||
|
Income from operations excluding special items |
$ |
264,261 |
$ |
40,047 |
$ |
272,268 |
$ |
56,881 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||||||||
|
EBITDA RECONCILIATIONS (Note 8) | ||||||||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||||
|
June 30, |
June 30, | |||||||||||||||||||||
|
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND |
2018 |
2017 |
2018 |
2017 | ||||||||||||||||||
|
Net income (loss) |
$ |
287,687 |
$ |
(104,151) |
$ |
329,498 |
$ |
(124,181) |
||||||||||||||
|
Add: Depreciation and amortization expense |
92,311 |
68,703 |
178,298 |
129,635 |
||||||||||||||||||
|
Add: Interest expense, net |
43,448 |
40,698 |
86,646 |
77,881 |
||||||||||||||||||
|
Add: Income tax expense (benefit) |
95,545 |
(72,043) |
106,487 |
(91,090) |
||||||||||||||||||
|
EBITDA |
$ |
518,991 |
$ |
(66,793) |
$ |
700,929 |
$ |
(7,755) |
||||||||||||||
|
Special Items (Note 5): |
||||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment |
(158,002) |
151,095 |
(245,655) |
167,134 |
||||||||||||||||||
|
Add: Debt extinguishment costs |
— |
25,451 |
— |
25,451 |
||||||||||||||||||
|
EBITDA excluding special items |
$ |
360,989 |
$ |
109,753 |
$ |
455,274 |
$ |
184,830 |
||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||||
|
June 30, |
June 30, | |||||||||||||||||||||
|
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA |
2018 |
2017 |
2018 |
2017 | ||||||||||||||||||
|
EBITDA |
$ |
518,991 |
$ |
(66,793) |
$ |
700,929 |
$ |
(7,755) |
||||||||||||||
|
Add: Stock-based compensation |
7,945 |
7,817 |
13,017 |
13,842 |
||||||||||||||||||
|
Add: Net non-cash change in fair value of catalyst leases |
(4,140) |
(1,104) |
(4,153) |
1,484 |
||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
(158,002) |
151,095 |
(245,655) |
167,134 |
||||||||||||||||||
|
Add: Debt extinguishment costs (Note 5) |
— |
25,451 |
— |
25,451 |
||||||||||||||||||
|
Adjusted EBITDA |
$ |
364,794 |
$ |
116,466 |
$ |
464,138 |
$ |
200,156 |
||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||||||||||
|
(Unaudited, in thousands) | |||||||||||||
|
June 30, |
December 31, | ||||||||||||
|
2018 |
2017 | ||||||||||||
|
Balance Sheet Data: |
|||||||||||||
|
Cash and cash equivalents |
$ |
478,329 |
$ |
573,021 |
|||||||||
|
Inventories |
2,540,277 |
2,213,797 |
|||||||||||
|
Total assets |
8,546,715 |
8,117,993 |
|||||||||||
|
Total debt |
2,218,540 |
2,191,650 |
|||||||||||
|
Total equity |
3,172,284 |
2,902,949 |
|||||||||||
|
Total equity excluding special items (Note 5, 14) |
$ |
3,038,711 |
$ |
2,950,154 |
|||||||||
|
Total debt to capitalization ratio (Note 14) |
41 |
% |
43 |
% | |||||||||
|
Total debt to capitalization ratio, excluding special items (Note 14) |
42 |
% |
43 |
% | |||||||||
|
Net debt to capitalization ratio (Note 14) |
35 |
% |
36 |
% | |||||||||
|
Net debt to capitalization ratio, excluding special items (Note 14) |
36 |
% |
35 |
% | |||||||||
|
SUMMARIZED STATEMENT OF CASH FLOW DATA | |||||||||||||
|
(Unaudited, in thousands) | |||||||||||||
|
Six Months Ended June 30, | |||||||||||||
|
2018 |
2017 | ||||||||||||
|
Cash flows provided by (used in) operations |
$ |
307,888 |
$ |
(34,665) |
|||||||||
|
Cash flows used in investing activities |
(365,241) |
(428,641) |
|||||||||||
|
Cash flows used in financing activities |
(37,339) |
(109,937) |
|||||||||||
|
Net decrease in cash and cash equivalents |
(94,692) |
(573,243) |
|||||||||||
|
Cash and cash equivalents, beginning of period |
573,021 |
746,274 |
|||||||||||
|
Cash and cash equivalents, end of period |
$ |
478,329 |
$ |
173,031 |
|||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||
|
CONSOLIDATING FINANCIAL INFORMATION (Note 9) | |||||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||||
|
Three Months Ended June 30, 2018 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated | |||||||||||||||
|
Revenues |
$ |
7,440,470 |
$ |
67,398 |
$ |
— |
$ |
(63,785) |
$ |
7,444,083 |
|||||||||
|
Depreciation and amortization expense |
82,829 |
6,919 |
2,563 |
— |
92,311 |
||||||||||||||
|
Income (loss) from operations (Note 15, 17) |
446,506 |
34,880 |
(54,760) |
(4,363) |
422,263 |
||||||||||||||
|
Interest expense, net |
2,596 |
10,425 |
30,427 |
— |
43,448 |
||||||||||||||
|
Capital expenditures (Note 18) |
210,930 |
59,568 |
1,463 |
— |
271,961 |
||||||||||||||
|
Three Months Ended June 30, 2017 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated | |||||||||||||||
|
Revenues |
$ |
5,013,251 |
$ |
62,329 |
$ |
— |
$ |
(58,355) |
$ |
5,017,225 |
|||||||||
|
Depreciation and amortization expense |
56,973 |
5,710 |
6,020 |
— |
68,703 |
||||||||||||||
|
Income (loss) from operations (Note 15, 17) |
(101,264) |
35,017 |
(40,981) |
(3,820) |
(111,048) |
||||||||||||||
|
Interest expense, net |
1,335 |
7,886 |
31,477 |
— |
40,698 |
||||||||||||||
|
Capital expenditures (Note 18) |
242,655 |
36,918 |
148 |
— |
279,721 |
||||||||||||||
|
Six Months Ended June 30, 2018 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated | |||||||||||||||
|
Revenues |
$ |
13,240,071 |
$ |
131,437 |
$ |
— |
$ |
(124,649) |
$ |
13,246,859 |
|||||||||
|
Depreciation and amortization expense |
159,607 |
13,414 |
5,277 |
— |
178,298 |
||||||||||||||
|
Income (loss) from operations (Note 15, 17) |
572,219 |
70,085 |
(115,996) |
(8,385) |
517,923 |
||||||||||||||
|
Interest expense, net |
4,431 |
20,373 |
61,842 |
— |
86,646 |
||||||||||||||
|
Capital expenditures (Note 18) |
299,227 |
63,521 |
2,493 |
— |
365,241 |
||||||||||||||
|
Six Months Ended June 30, 2017 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated | |||||||||||||||
|
Revenues |
$ |
9,763,449 |
$ |
122,806 |
$ |
— |
$ |
(114,557) |
$ |
9,771,698 |
|||||||||
|
Depreciation and amortization expense |
110,791 |
11,062 |
7,782 |
— |
129,635 |
||||||||||||||
|
Income (loss) from operations (Note 15, 17) |
(90,771) |
71,058 |
(83,121) |
(7,419) |
(110,253) |
||||||||||||||
|
Interest expense, net |
2,253 |
15,870 |
59,758 |
— |
77,881 |
||||||||||||||
|
Capital expenditures (Note 18) |
409,871 |
56,385 |
2,409 |
— |
468,665 |
||||||||||||||
|
Balance at June 30, 2018 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated | |||||||||||||||
|
Total Assets (Note 16) |
$ |
7,744,601 |
$ |
777,756 |
$ |
55,831 |
$ |
(31,473) |
$ |
8,546,715 |
|||||||||
|
Balance at December 31, 2017 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated | |||||||||||||||
|
Total Assets (Note 16) |
$ |
7,298,049 |
$ |
737,550 |
$ |
123,211 |
$ |
(40,817) |
$ |
8,117,993 |
|||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
MARKET INDICATORS AND KEY OPERATING INFORMATION | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
|
June 30, |
June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||
|
Market Indicators (dollars per barrel) (Note 10) |
2018 |
2017 |
2018 |
2017 | ||||||||||||||||||||||||||||||||||||||||||||||
|
Dated Brent Crude |
$ |
74.42 |
$ |
49.69 |
$ |
70.75 |
$ |
51.61 |
||||||||||||||||||||||||||||||||||||||||||
|
West Texas Intermediate (WTI) crude oil |
$ |
68.02 |
$ |
48.11 |
$ |
65.52 |
$ |
49.89 |
||||||||||||||||||||||||||||||||||||||||||
|
Light Louisiana Sweet (LLS) crude oil |
$ |
73.14 |
$ |
50.17 |
$ |
69.58 |
$ |
51.77 |
||||||||||||||||||||||||||||||||||||||||||
|
Alaska North Slope (ANS) crude oil |
$ |
73.93 |
$ |
50.61 |
$ |
70.64 |
$ |
52.20 |
||||||||||||||||||||||||||||||||||||||||||
|
Crack Spreads: |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Dated Brent (NYH) 2-1-1 |
$ |
14.96 |
$ |
14.81 |
$ |
13.90 |
$ |
13.21 |
||||||||||||||||||||||||||||||||||||||||||
|
WTI (Chicago) 4-3-1 |
$ |
17.56 |
$ |
14.09 |
$ |
14.74 |
$ |
12.65 |
||||||||||||||||||||||||||||||||||||||||||
|
LLS (Gulf Coast) 2-1-1 |
$ |
13.52 |
$ |
12.56 |
$ |
13.19 |
$ |
12.30 |
||||||||||||||||||||||||||||||||||||||||||
|
ANS (West Coast) 4-3-1 |
$ |
18.70 |
$ |
19.16 |
$ |
17.59 |
$ |
17.85 |
||||||||||||||||||||||||||||||||||||||||||
|
Crude Oil Differentials: |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Dated Brent (foreign) less WTI |
$ |
6.40 |
$ |
1.58 |
$ |
5.23 |
$ |
1.73 |
||||||||||||||||||||||||||||||||||||||||||
|
Dated Brent less Maya (heavy, sour) |
$ |
12.40 |
$ |
8.00 |
$ |
10.78 |
$ |
7.34 |
||||||||||||||||||||||||||||||||||||||||||
|
Dated Brent less WTS (sour) |
$ |
14.78 |
$ |
2.65 |
$ |
10.20 |
$ |
2.98 |
||||||||||||||||||||||||||||||||||||||||||
|
Dated Brent less ASCI (sour) |
$ |
5.09 |
$ |
2.85 |
$ |
4.84 |
$ |
3.46 |
||||||||||||||||||||||||||||||||||||||||||
|
WTI less WCS (heavy, sour) |
$ |
18.26 |
$ |
9.56 |
$ |
22.17 |
$ |
11.23 |
||||||||||||||||||||||||||||||||||||||||||
|
WTI less Bakken (light, sweet) |
$ |
0.39 |
$ |
0.30 |
$ |
0.70 |
$ |
0.61 |
||||||||||||||||||||||||||||||||||||||||||
|
WTI less Syncrude (light, sweet) |
$ |
2.98 |
$ |
(1.35) |
$ |
1.69 |
$ |
(1.81) |
||||||||||||||||||||||||||||||||||||||||||
|
WTI less LLS (light, sweet) |
$ |
(5.12) |
$ |
(2.06) |
$ |
(4.06) |
$ |
(1.88) |
||||||||||||||||||||||||||||||||||||||||||
|
WTI less ANS (light, sweet) |
$ |
(5.91) |
$ |
(2.50) |
$ |
(5.12) |
$ |
(2.31) |
||||||||||||||||||||||||||||||||||||||||||
|
Natural gas (dollars per MMBTU) |
$ |
2.85 |
$ |
3.14 |
$ |
2.82 |
$ |
3.10 |
||||||||||||||||||||||||||||||||||||||||||
|
Key Operating Information |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Production (barrels per day ("bpd") in thousands) |
866.1 |
764.2 |
831.2 |
748.8 |
||||||||||||||||||||||||||||||||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
866.6 |
769.2 |
833.3 |
753.7 |
||||||||||||||||||||||||||||||||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
78.8 |
70.0 |
150.8 |
136.4 |
||||||||||||||||||||||||||||||||||||||||||||||
|
Consolidated gross margin per barrel of throughput |
$ |
6.14 |
$ |
(0.90) |
$ |
4.28 |
$ |
(0.12) |
||||||||||||||||||||||||||||||||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, |
$ |
9.77 |
$ |
7.17 |
$ |
8.57 |
$ |
7.45 |
||||||||||||||||||||||||||||||||||||||||||
|
Refinery operating expense, per barrel of throughput (Note 12) |
$ |
5.11 |
$ |
5.69 |
$ |
5.40 |
$ |
6.12 |
||||||||||||||||||||||||||||||||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13) |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Heavy |
38 |
% |
30 |
% |
37 |
% |
35 |
% | ||||||||||||||||||||||||||||||||||||||||||
|
Medium |
28 |
% |
31 |
% |
31 |
% |
30 |
% | ||||||||||||||||||||||||||||||||||||||||||
|
Light |
21 |
% |
23 |
% |
20 |
% |
20 |
% | ||||||||||||||||||||||||||||||||||||||||||
|
Other feedstocks and blends |
13 |
% |
16 |
% |
12 |
% |
15 |
% | ||||||||||||||||||||||||||||||||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||||||||||||||||||||||||||||||||
|
Yield (% of total throughput) |
||||||||||||||||||||||||||||||||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
48 |
% |
50 |
% |
49 |
% |
51 |
% | ||||||||||||||||||||||||||||||||||||||||||
|
Distillates and distillate blendstocks |
32 |
% |
30 |
% |
32 |
% |
30 |
% | ||||||||||||||||||||||||||||||||||||||||||
|
Lubes |
1 |
% |
1 |
% |
1 |
% |
1 |
% | ||||||||||||||||||||||||||||||||||||||||||
|
Chemicals |
2 |
% |
2 |
% |
2 |
% |
2 |
% | ||||||||||||||||||||||||||||||||||||||||||
|
Other |
17 |
% |
16 |
% |
16 |
% |
16 |
% | ||||||||||||||||||||||||||||||||||||||||||
|
Total yield |
100 |
% |
99 |
% |
100 |
% |
100 |
% | ||||||||||||||||||||||||||||||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||||||||||||||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||
|
June 30, |
June 30, | |||||||||||||||||||
|
2018 |
2017 |
2018 |
2017 | |||||||||||||||||
|
Supplemental Operating Information - East Coast (Delaware City and Paulsboro) |
||||||||||||||||||||
|
Production (bpd in thousands) |
357.1 |
321.4 |
342.5 |
318.6 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
359.9 |
326.1 |
346.5 |
323.2 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
32.7 |
29.7 |
62.7 |
58.5 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
3.39 |
$ |
(2.60) |
$ |
2.36 |
$ |
(1.36) |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, Note 11) |
$ |
7.17 |
$ |
4.98 |
$ |
6.84 |
$ |
5.46 |
||||||||||||
|
Refinery operating expense, per barrel of throughput (Note 12) |
$ |
4.34 |
$ |
4.54 |
$ |
4.73 |
$ |
4.85 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Heavy |
30 |
% |
31 |
% |
27 |
% |
34 |
% | ||||||||||||
|
Medium |
47 |
% |
40 |
% |
49 |
% |
38 |
% | ||||||||||||
|
Light |
4 |
% |
12 |
% |
7 |
% |
11 |
% | ||||||||||||
|
Other feedstocks and blends |
19 |
% |
17 |
% |
17 |
% |
17 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
45 |
% |
43 |
% |
46 |
% |
45 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
33 |
% |
33 |
% |
33 |
% |
31 |
% | ||||||||||||
|
Lubes |
2 |
% |
2 |
% |
2 |
% |
2 |
% | ||||||||||||
|
Chemicals |
1 |
% |
1 |
% |
1 |
% |
1 |
% | ||||||||||||
|
Other |
18 |
% |
20 |
% |
17 |
% |
20 |
% | ||||||||||||
|
Total yield |
99 |
% |
99 |
% |
99 |
% |
99 |
% | ||||||||||||
|
Supplemental Operating Information - Mid-Continent (Toledo) |
||||||||||||||||||||
|
Production (bpd in thousands) |
154.7 |
158.2 |
139.1 |
142.2 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
152.9 |
154.6 |
138.0 |
139.3 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
13.9 |
14.1 |
25.0 |
25.2 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
9.61 |
$ |
(0.19) |
$ |
5.41 |
$ |
(0.85) |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, Note |
$ |
12.63 |
$ |
7.90 |
$ |
10.68 |
$ |
7.79 |
||||||||||||
|
Refinery operating expense, per barrel of throughput (Note 12) |
$ |
4.93 |
$ |
4.82 |
$ |
5.49 |
$ |
5.58 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Medium |
34 |
% |
35 |
% |
36 |
% |
39 |
% | ||||||||||||
|
Light |
64 |
% |
64 |
% |
63 |
% |
60 |
% | ||||||||||||
|
Other feedstocks and blends |
2 |
% |
1 |
% |
1 |
% |
1 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
50 |
% |
55 |
% |
55 |
% |
55 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
36 |
% |
31 |
% |
33 |
% |
33 |
% | ||||||||||||
|
Chemicals |
5 |
% |
6 |
% |
5 |
% |
6 |
% | ||||||||||||
|
Other |
10 |
% |
10 |
% |
8 |
% |
8 |
% | ||||||||||||
|
Total yield |
101 |
% |
102 |
% |
101 |
% |
102 |
% | ||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||
|
June 30, |
June 30, | |||||||||||||||||||
|
2018 |
2017 |
2018 |
2017 | |||||||||||||||||
|
Supplemental Operating Information - Gulf Coast (Chalmette) |
||||||||||||||||||||
|
Production (bpd in thousands) |
190.0 |
191.8 |
176.9 |
173.6 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
188.5 |
191.3 |
178.9 |
173.6 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
17.2 |
17.4 |
32.4 |
31.4 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
5.30 |
$ |
0.85 |
$ |
2.83 |
$ |
1.24 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, |
$ |
7.92 |
$ |
7.76 |
$ |
6.29 |
$ |
8.40 |
||||||||||||
|
Refinery operating expense, per barrel of throughput (Note 12) |
$ |
4.65 |
$ |
4.65 |
$ |
4.82 |
$ |
5.35 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Heavy |
42 |
% |
42 |
% |
42 |
% |
42 |
% | ||||||||||||
|
Medium |
13 |
% |
25 |
% |
16 |
% |
25 |
% | ||||||||||||
|
Light |
30 |
% |
20 |
% |
31 |
% |
16 |
% | ||||||||||||
|
Other feedstocks and blends |
15 |
% |
13 |
% |
11 |
% |
17 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
43 |
% |
45 |
% |
42 |
% |
47 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
32 |
% |
33 |
% |
32 |
% |
31 |
% | ||||||||||||
|
Chemicals |
2 |
% |
2 |
% |
1 |
% |
2 |
% | ||||||||||||
|
Other |
24 |
% |
20 |
% |
24 |
% |
20 |
% | ||||||||||||
|
Total yield |
101 |
% |
100 |
% |
99 |
% |
100 |
% | ||||||||||||
|
Supplemental Operating Information - West Coast (Torrance) |
||||||||||||||||||||
|
Production (bpd in thousands) |
164.3 |
92.8 |
172.7 |
114.4 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
165.3 |
97.2 |
169.9 |
117.6 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
15.0 |
8.8 |
30.7 |
21.3 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
7.12 |
$ |
(4.55) |
$ |
6.17 |
$ |
(1.66) |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, |
$ |
14.88 |
$ |
12.18 |
$ |
12.80 |
$ |
11.10 |
||||||||||||
|
Refinery operating expense, per barrel of throughput (Note 12) |
$ |
7.46 |
$ |
13.01 |
$ |
7.29 |
$ |
11.39 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Heavy |
82 |
% |
57 |
% |
81 |
% |
73 |
% | ||||||||||||
|
Medium |
7 |
% |
3 |
% |
6 |
% |
2 |
% | ||||||||||||
|
Other feedstocks and blends |
11 |
% |
40 |
% |
13 |
% |
25 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
57 |
% |
69 |
% |
59 |
% |
66 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
27 |
% |
12 |
% |
27 |
% |
17 |
% | ||||||||||||
|
Other |
15 |
% |
14 |
% |
16 |
% |
14 |
% | ||||||||||||
|
Total yield |
99 |
% |
95 |
% |
102 |
% |
97 |
% | ||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||
|
GROSS REFINING MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note 11) | |||||||||||||||||||||
|
(Unaudited, in thousands, except per barrel amounts) | |||||||||||||||||||||
|
Three Months Ended |
Three Months Ended | ||||||||||||||||||||
|
June 30, 2018 |
June 30, 2017 | ||||||||||||||||||||
|
RECONCILIATION OF CONSOLIDATED GROSS MARGIN TO |
$ |
per barrel of throughput |
$ |
per barrel of | |||||||||||||||||
|
Calculation of consolidated gross margin: |
|||||||||||||||||||||
|
Revenues |
$ |
7,444,083 |
$ |
94.40 |
$ |
5,017,225 |
$ |
71.68 |
|||||||||||||
|
Less: Cost of Sales |
6,959,978 |
88.26 |
5,081,166 |
72.58 |
|||||||||||||||||
|
Consolidated gross margin |
$ |
484,105 |
$ |
6.14 |
$ |
(63,941) |
$ |
(0.90) |
|||||||||||||
|
Reconciliation of consolidated gross margin to gross refining |
|||||||||||||||||||||
|
Consolidated gross margin |
$ |
484,105 |
$ |
6.14 |
$ |
(63,941) |
$ |
(0.90) |
|||||||||||||
|
Add: PBFX operating expense |
19,111 |
0.24 |
15,504 |
0.22 |
|||||||||||||||||
|
Add: PBFX depreciation expense |
6,919 |
0.08 |
5,710 |
0.08 |
|||||||||||||||||
|
Less: Revenues of PBFX |
(67,398) |
(0.85) |
(62,329) |
(0.89) |
|||||||||||||||||
|
Add: Refinery operating expenses (Note 17) |
402,751 |
5.11 |
398,501 |
5.69 |
|||||||||||||||||
|
Add: Refinery depreciation expense |
82,829 |
1.05 |
56,973 |
0.81 |
|||||||||||||||||
|
Gross refining margin |
$ |
928,317 |
$ |
11.77 |
$ |
350,418 |
$ |
5.01 |
|||||||||||||
|
Special Items (Note 5): |
|||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment |
(158,002) |
(2.00) |
151,095 |
2.16 |
|||||||||||||||||
|
Gross refining margin excluding special items |
$ |
770,315 |
$ |
9.77 |
$ |
501,513 |
$ |
7.17 |
|||||||||||||
|
Six Months Ended |
Six Months Ended | ||||||||||||||||||||
|
June 30, 2018 |
June 30, 2017 | ||||||||||||||||||||
|
RECONCILIATION OF CONSOLIDATED GROSS MARGIN TO |
$ |
per barrel of |
$ |
per barrel of | |||||||||||||||||
|
Calculation of consolidated gross margin: |
|||||||||||||||||||||
|
Revenues |
$ |
13,246,859 |
$ |
87.83 |
$ |
9,771,698 |
$ |
71.63 |
|||||||||||||
|
Less: Cost of Sales |
12,601,488 |
83.55 |
9,788,369 |
71.75 |
|||||||||||||||||
|
Consolidated gross margin |
$ |
645,371 |
$ |
4.28 |
$ |
(16,671) |
$ |
(0.12) |
|||||||||||||
|
Reconciliation of consolidated gross margin to gross refining |
|||||||||||||||||||||
|
Consolidated gross margin |
$ |
645,371 |
$ |
4.28 |
$ |
(16,671) |
$ |
(0.12) |
|||||||||||||
|
Add: PBFX operating expense |
37,159 |
0.25 |
31,233 |
0.23 |
|||||||||||||||||
|
Add: PBFX depreciation expense |
13,414 |
0.09 |
10,952 |
0.08 |
|||||||||||||||||
|
Less: Revenues of PBFX |
(131,437) |
(0.87) |
(122,806) |
(0.90) |
|||||||||||||||||
|
Add: Refinery operating expense (Note 17) |
814,198 |
5.40 |
835,253 |
6.12 |
|||||||||||||||||
|
Add: Refinery depreciation expense |
159,607 |
1.05 |
110,901 |
0.81 |
|||||||||||||||||
|
Gross refining margin |
$ |
1,538,312 |
$ |
10.20 |
$ |
848,862 |
$ |
6.22 |
|||||||||||||
|
Special Items (Note 5): |
|||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment |
(245,655) |
(1.63) |
167,134 |
1.23 |
|||||||||||||||||
|
Gross refining margin excluding special items |
$ |
1,292,657 |
$ |
8.57 |
$ |
1,015,996 |
$ |
7.45 |
|||||||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||
|
(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 cost 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 condensed consolidated income from operations or net income, nor does it have any impact on our condensed 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 7. | |||||||
|
(3) 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. | |||||||
|
(4) Represents an adjustment to reflect our estimated annualized statutory corporate tax rate of approximately 26.4% and 39.4% for the 2018 and 2017 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 3. Our statutory tax rates were reduced in 2018 as a result of the Tax Cut and Jobs Act enactment. | |||||||
|
(5) The Non-GAAP measures presented include adjusted fully-converted net income (loss) excluding special items, income 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, 2018 relate to a lower of cost or market ("LCM") inventory adjustment and special items presented for the three and six months ended June 30, 2017 relate to an LCM inventory adjustment and debt extinguishment costs, as discussed further below. Additionally, the cumulative effects of all prior period special items on equity are shown in footnote 14. | |||||||
|
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. | |||||||
|
LCM inventory adjustment - LCM is a GAAP guideline related to inventory valuation that requires inventory to be stated at the lower of cost or market. Our inventories are stated at the lower of cost or market. Cost is determined using last-in, first-out (LIFO) inventory valuation methodology, in which the most recently incurred costs are charged to cost of sales and inventories are valued at base layer acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and net realizable selling price of the inventory. In periods where the market price of our inventory declines substantially, cost values of inventory may exceed market values. In such instances, we record an adjustment to write down the value of inventory to market value in accordance with GAAP. In subsequent periods, the value of inventory is reassessed and an LCM inventory adjustment is recorded to reflect the net change in the LCM inventory reserve between the prior period and the current period. | |||||||
|
The following table shows the LCM inventory reserve as of each date presented (in thousands): | |||||||
|
2018 |
2017 | ||||||||
|
January 1, |
$ 300,456 |
$ 595,988 | |||||||
|
March 31, |
212,803 |
612,027 | |||||||
|
June 30, |
54,801 |
763,122 | |||||||
|
The following table includes the corresponding impact of changes in the LCM inventory reserve on income (loss) from operations and net income (loss) for the periods presented (in thousands): |
|
Three Months Ended |
Six Months Ended | ||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||
|
Net LCM inventory adjustment benefit (charge) |
$ 158,002 |
$ (151,095) |
$ 245,655 |
$ (167,134) | |||||
|
Net LCM inventory adjustment benefit (charge) |
116,274 |
(91,624) |
180,778 |
(101,350) | |||||
|
Debt Extinguishment Costs - During the three and six months ended June, 30, 2017, we recorded pre-tax debt extinguishment costs of $25.5 million related to the redemption of the 2020 Senior Secured Notes. These nonrecurring charges decreased net income by $15.4 million for the three and six months ended June 30, 2017. There were no such costs in the same periods of 2018. |
|
(6) Represents an adjustment to weighted-average diluted shares outstanding to assume the full exchange of existing PBF LLC Series A Units as described in footnote 3 above. |
|
(7) Represents weighted-average diluted shares outstanding assuming the conversion of all common stock equivalents, including options and warrants for PBF LLC Series A Units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method (to the extent the impact of such exchange would not be anti-dilutive) for the three and six months ended June 30, 2018 and June 30, 2017, 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. Common stock equivalents exclude the effects of options and warrants to purchase 7,278,142 and 7,278,142 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three and six months ended June 30, 2017, respectively. |
|
(8) EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Adjusted EBITDA are supplemental measures of performance that are not required by, or presented in accordance with GAAP. We use these Non-GAAP financial measures as a supplement to our GAAP results in order to provide additional metrics on factors and trends affecting our business. EBITDA and Adjusted EBITDA are measures of operating performance that are not defined by GAAP and should not be considered substitutes for net income as determined in accordance with GAAP. In addition, because EBITDA and Adjusted EBITDA are not calculated in the same manner by all companies, they are not necessarily comparable to other similarly titled measures used by other companies. EBITDA and Adjusted EBITDA have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. |
|
(9) We operate in two reportable segments: Refining and Logistics. Our operations that are not included in the Refining and Logistics segments are included in Corporate. As of June 30, 2018, 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, 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. |
|
PBFX currently does not generate significant third party revenue and intersegment related-party revenues are eliminated in consolidation. 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 operating segments. |
|
(10) As reported by Platts. |
|
(11) Gross refining margin and gross refining margin per barrel of throughput are Non-GAAP measures because they exclude refinery operating expenses, 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. |
|
(12) Represents refinery operating expenses, including corporate-owned logistics assets, excluding depreciation and amortization, divided by total crude oil and feedstocks throughput. |
|
(13) We define heavy crude oil as crude oil with American Petroleum Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with API gravity between 24 and 35 degrees. We define light crude oil as crude oil with API gravity higher than 35 degrees. |
|
(14) The 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, 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. |
|
June 30, |
December 31, | ||||||||
|
2018 |
2017 | ||||||||
|
(in thousands) | |||||||||
|
Total debt |
$ 2,218,540 |
$ 2,191,650 | |||||||
|
Total equity |
3,172,284 |
2,902,949 | |||||||
|
Total capitalization |
$ 5,390,824 |
$ 5,094,599 | |||||||
|
Total debt |
$ 2,218,540 |
$ 2,191,650 | |||||||
|
Total equity excluding special items |
3,038,711 |
2,950,154 | |||||||
|
Total capitalization excluding special items |
$ 5,257,251 |
$ 5,141,804 | |||||||
|
Total equity |
$ 3,172,284 |
$ 2,902,949 | |||||||
|
Special Items (Note 5) |
|||||||||
|
Add: Non-cash LCM inventory adjustment |
54,801 |
300,456 | |||||||
|
Add: Change in tax receivable agreement liability |
(276,430) |
(276,430) | |||||||
|
Add: Debt extinguishment costs |
25,451 |
25,451 | |||||||
|
Less: Recomputed income taxes on special items |
42,452 |
(22,425) | |||||||
|
Add: Net tax expense on TCJA related special items |
20,153 |
20,153 | |||||||
|
Net impact of special items to equity |
(133,573) |
47,205 | |||||||
|
Total equity excluding special items |
$ 3,038,711 |
$ 2,950,154 | |||||||
|
Total debt |
$ 2,218,540 |
$ 2,191,650 | |||||||
|
Less: Cash and cash equivalents |
478,329 |
573,021 | |||||||
|
Net Debt |
$ 1,740,211 |
$ 1,618,629 | |||||||
|
Total debt to capitalization ratio |
41 % |
43 % | |||||||
|
Total debt to capitalization ratio, excluding special items |
42 % |
43 % | |||||||
|
Net debt to capitalization ratio |
35 % |
36 % | |||||||
|
Net debt to capitalization ratio, excluding special items |
36 % |
35 % | |||||||
|
(15) 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. |
|
(16) 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. |
|
(17) The Company adopted ASU 2017-07 effective January 1, 2018. The new guidance requires the bifurcation of net periodic benefit cost. The service cost component is presented within Income from operations, while the other components are reported separately outside of operations. This guidance was applied retrospectively in the condensed consolidated statements of operations. |
|
The following table shows the effect of the adoption of ASU 2017-07 on our financial statements (in thousands): |
|
Three Months Ended |
Six Months Ended | ||||||||
|
2018 |
2017 |
2018 |
2017 | ||||||
|
Refining segment income (expense) related to other |
$ 371 |
$ (85) |
$ 741 |
$ (170) | |||||
|
Corporate operations income (expense) related to non- |
(94) |
(16) |
(186) |
(32) | |||||
|
Total income (expense) related to other non-service |
$ 277 |
$ (101) |
$ 555 |
$ (202) | |||||
|
(18) The Logistics segment includes capital expenditures of $58.0 million for the acquisition of the Knoxville Terminals by PBFX on April 16, 2018 and $10.1 million for the acquisition of the Toledo Terminal by PBFX on April 17, 2017. |
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-reports-second-quarter-2018-results-declares-dividend-of-0-30-per-share-300690829.html
SOURCE PBF Energy Inc.
Article Date
8/2/2018PBF Energy to Attend the 2018 J.P. Morgan Energy Conference
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., June 15, 2018 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) announced today that the company's management will be attending the 2018 J.P. Morgan Energy Conference on June 19, 2018, taking place in New York, New York.
Company presentation materials will be available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-to-attend-the-2018-jp-morgan-energy-conference-300667126.html
SOURCE PBF Energy Inc.
Article Date
6/15/2018PBF Energy to Attend the Wells Fargo West Coast Energy Conference
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., June 8, 2018 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be attending the Wells Fargo West Coast Energy Conference on June 12, 2018, taking place in San Francisco, California.
Company presentation materials will be available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-to-attend-the-wells-fargo-west-coast-energy-conference-300662475.html
SOURCE PBF Energy Inc.
Article Date
6/8/2018PBF Energy Reports First Quarter 2018 Results, Declares Dividend of $0.30 Per Share
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., May 3, 2018 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today reported first quarter 2018 income from operations of $95.7 million as compared to income from operations of $0.8 million for the first quarter of 2017. Excluding special items, first quarter 2018 income from operations was $8.0 million as compared to income from operations of $16.8 million for the first quarter of 2017. Special items in the first quarter 2018 results, which increased operating income, include a net, non-cash, after-tax gain of $64.5 million, or $0.56 per share, lower-of-cost-or-market ("LCM") inventory adjustment.
The company reported first quarter 2018 net income of $41.8 million and net income attributable to PBF Energy Inc. of $30.4 million or $0.27 per share. This compares to net loss of $20.0 million, and net loss attributable to PBF Energy Inc. of $31.1 million or $(0.29) per share for the first quarter 2017. Adjusted fully-converted net loss for the first quarter 2018, excluding special items, was $33.4 million, or $(0.29) per share on a fully-exchanged, fully-diluted basis, as described below, compared to an adjusted fully-converted net loss of $22.7 million or $(0.20) per share, for the first quarter 2017. PBF Energy's financial results reflect the consolidation of PBF Logistics LP (NYSE: PBFX), a master limited partnership of which PBF indirectly owns the general partner and approximately 44.1% of the limited partner interests as of quarter-end.
Tom Nimbley, PBF Energy's Chairman and CEO, said, "During the first quarter we completed approximately 70 percent of our planned maintenance for the year by executing turnarounds in our East Coast, Gulf Coast and Mid-continent regions. Our Torrance operations were strong during the quarter and with our other assets now out of turnaround, we feel we are well positioned for the coming summer driving season." Mr. Nimbley continued, "Looking forward, market fundamentals appear favorable. Demand continues to drive inventories of gasoline and distillate to more normalized levels and the distillate market in particular appears to be very strong. Our focus remains the safe, reliable and environmentally responsible operation of our five-asset refining system and positioning ourselves to benefit from prevailing market conditions."
PBF announces successful closing of upsized $3.4 billion credit facility
PBF's subsidiary, PBF Holding Company LLC, announced today that it and certain of its subsidiaries' have entered into a new five year revolving credit agreement. Commitments under the facility have increased from $2.6 billion to $3.4 billion. The credit agreement will be used for working capital and other general corporate purposes.
PBF's Chief Financial Officer Erik Young said, "This successful syndication demonstrates the growth and development of our business and we thank our banking partners for their commitment to PBF. Our new credit facility provides us with increased financial flexibility and ability to grow."
Bank of America N.A. is the Administrative and Collateral Agent for the 28-bank syndicate participating in the facility. Bank of America N.A., ABN Amro Capital USA LLC, BNP Paribas, Citibank N.A., Credit Agricole CIB, Deutsche Bank, MUFG Bank, Ltd., Natixis, Royal Bank of Canada and Wells Fargo acted as Joint Lead Arrangers and Joint Bookrunners. Barclays Bank plc, Regions Bank, Societe Generale, Sumitomo Mitsui Banking Corporation and SunTrust Bank acted as Co-Documentation Agents.
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 May 30, 2018, to holders of record as of May 15, 2018.
Outlook
For the second quarter 2018, we expect East Coast total throughput to average 340,000 to 360,000 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 155,000 to 165,000 barrels per day.
For the full-year 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 150,000 to 160,000 barrels per day; Gulf Coast total throughput is expected to average 175,000 to 185,000 barrels per day and West Coast total throughput is expected to average 160,000 to 170,000 barrels per day.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to Non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income (Loss), Adjusted Fully-Converted Net Income (Loss) excluding special items, Adjusted Fully-Converted Net Income (Loss) per fully-exchanged, fully-diluted share, gross refining margin, gross refining margin excluding special items, gross refining margin per barrel of throughput, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization), EBITDA excluding special items, Adjusted EBITDA and projected EBITDA related to the refinery acquisitions. PBF believes that Non-GAAP financial measures provide useful information about its operating performance and financial results. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBF's Non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the Non-GAAP measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
PBF Energy's senior management will host a conference call and webcast regarding quarterly results and other business matters on Thursday, May 3, 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 accessed by dialing (877) 876-9177 or (785) 424-1669, conference ID: PBFQ118. The audio replay will be available two hours after the end of the call through May 17, 2018, by dialing (800) 839-3013 or (402) 220-7233.
Forward-Looking Statements
Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the company's control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the company's filings with the SEC, as well as the risks disclosed in PBF Logistics LP's SEC filings and any impact PBF Logistics LP may have on the company's credit rating, cost of funds, employees, customer and vendors; risk relating to the securities markets generally; and the impact of adverse market conditions affecting the company, unanticipated developments, regulatory approvals, changes in laws and other events that negatively impact the company. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.
PBF Energy Inc. also currently indirectly owns the general partner and approximately 43.9% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
|
(Unaudited, in thousands, except share and per share data) | |||||||||||
|
Three Months Ended | |||||||||||
|
March 31, | |||||||||||
|
2018 |
2017 | ||||||||||
|
Revenues |
$ |
5,802,776 |
$ |
4,754,473 |
|||||||
|
Cost and expenses (Note 1): |
|||||||||||
|
Cost of products and other |
5,132,102 |
4,196,767 |
|||||||||
|
Operating expenses (excluding depreciation and amortization expense as reflected |
426,135 |
451,266 |
|||||||||
|
Depreciation and amortization expense |
83,273 |
59,170 |
|||||||||
|
Cost of sales |
5,641,510 |
4,707,203 |
|||||||||
|
General and administrative expenses (excluding depreciation and amortization expense as reflected below) |
62,813 |
43,830 |
|||||||||
|
Depreciation and amortization expense |
2,714 |
1,762 |
|||||||||
|
Loss on sale of assets |
79 |
883 |
|||||||||
|
Total cost and expenses |
5,707,116 |
4,753,678 |
|||||||||
|
Income from operations |
95,660 |
795 |
|||||||||
|
Other income (expense): |
|||||||||||
|
Change in fair value of catalyst leases |
13 |
(2,588) |
|||||||||
|
Interest expense, net |
(43,198) |
(37,183) |
|||||||||
|
Other non-service components of net periodic benefit cost (Note 17) |
278 |
(101) |
|||||||||
|
Income (loss) before income taxes |
52,753 |
(39,077) |
|||||||||
|
Income tax expense (benefit) |
10,942 |
(19,047) |
|||||||||
|
Net income (loss) |
41,811 |
(20,030) |
|||||||||
|
Less: net income attributable to noncontrolling interests |
11,445 |
11,047 |
|||||||||
|
Net income (loss) attributable to PBF Energy Inc. stockholders |
$ |
30,366 |
$ |
(31,077) |
|||||||
|
Net income (loss) available to Class A common stock per share: |
|||||||||||
|
Basic |
$ |
0.27 |
$ |
(0.29) |
|||||||
|
Diluted |
$ |
0.27 |
$ |
(0.29) |
|||||||
|
Weighted-average shares outstanding-basic |
110,820,379 |
108,760,374 |
|||||||||
|
Weighted-average shares outstanding-diluted |
115,193,491 |
108,760,374 |
|||||||||
|
Dividends per common share |
$ |
0.30 |
$ |
0.30 |
|||||||
|
Adjusted fully-converted net income (loss) and adjusted fully-converted net income (loss) per fully exchanged, fully diluted shares outstanding (Note 2): |
|||||||||||
|
Adjusted fully-converted net income (loss) |
$ |
31,113 |
$ |
(32,473) |
|||||||
|
Adjusted fully-converted net income (loss) per fully exchanged, fully diluted share |
$ |
0.27 |
$ |
(0.29) |
|||||||
|
Adjusted fully-converted shares outstanding - diluted |
115,193,491 |
112,603,580 |
|||||||||
|
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 (LOSS) TO ADJUSTED FULLY-CONVERTED |
Three Months Ended | |||||||||||||
|
NET INCOME (LOSS) AND ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) |
March 31, | |||||||||||||
|
EXCLUDING SPECIAL ITEMS (Note 2) |
2018 |
2017 | ||||||||||||
|
Net income (loss) attributable to PBF Energy Inc. stockholders |
$ |
30,366 |
$ |
(31,077) |
||||||||||
|
Less: Income allocated to participating securities |
201 |
271 |
||||||||||||
|
Income (loss) available to PBF Energy Inc. stockholders - basic |
30,165 |
(31,348) |
||||||||||||
|
Add: Net income (loss) attributable to noncontrolling interest (Note 3) |
1,288 |
(1,856) |
||||||||||||
|
Less: Income tax (expense) benefit (Note 4) |
(340) |
731 |
||||||||||||
|
Adjusted fully-converted net income (loss) |
$ |
31,113 |
$ |
(32,473) |
||||||||||
|
Special Items (Note 5): |
||||||||||||||
|
Add: Non-cash LCM inventory adjustment |
(87,653) |
16,039 |
||||||||||||
|
Less: Recomputed income taxes on special items |
23,149 |
(6,313) |
||||||||||||
|
Adjusted fully-converted net loss excluding special items |
$ |
(33,391) |
$ |
(22,747) |
||||||||||
|
Weighted-average shares outstanding of PBF Energy Inc. |
110,820,379 |
108,760,374 |
||||||||||||
|
Conversion of PBF LLC Series A Units (Note 6) |
3,535,140 |
3,843,206 |
||||||||||||
|
Common stock equivalents (Note 7) |
837,972 |
— |
||||||||||||
|
Fully-converted shares outstanding - diluted |
115,193,491 |
112,603,580 |
||||||||||||
|
Adjusted fully-converted net income (loss) (per fully exchanged, fully diluted shares |
$ |
0.27 |
$ |
(0.29) |
||||||||||
|
Adjusted fully-converted loss excluding special items (per fully exchanged, fully diluted |
$ |
(0.29) |
$ |
(0.20) |
||||||||||
|
Three Months Ended | ||||||||||||||
|
RECONCILIATION OF INCOME FROM OPERATIONS |
March 31, | |||||||||||||
|
TO INCOME FROM OPERATIONS EXCLUDING SPECIAL ITEMS |
2018 |
2017 | ||||||||||||
|
Income from operations (Note 17) |
$ |
95,660 |
$ |
795 |
||||||||||
|
Special Items (Note 5): |
||||||||||||||
|
Add: Non-cash LCM inventory adjustment |
(87,653) |
16,039 |
||||||||||||
|
Income from operations excluding special items |
$ |
8,007 |
$ |
16,834 |
||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||
|
EBITDA RECONCILIATIONS (Note 8) | ||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||
|
Three Months Ended | ||||||||||||||
|
March 31, | ||||||||||||||
|
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND EBITDA EXCLUDING |
2018 |
2017 | ||||||||||||
|
Net income (loss) |
$ |
41,811 |
$ |
(20,030) |
||||||||||
|
Add: Depreciation and amortization expense |
85,987 |
60,932 |
||||||||||||
|
Add: Interest expense, net |
43,198 |
37,183 |
||||||||||||
|
Add: Income tax expense (benefit) |
10,942 |
(19,047) |
||||||||||||
|
EBITDA |
$ |
181,938 |
$ |
59,038 |
||||||||||
|
Special Items (Note 5): |
||||||||||||||
|
Add: Non-cash LCM inventory adjustment |
(87,653) |
16,039 |
||||||||||||
|
EBITDA excluding special items |
$ |
94,285 |
$ |
75,077 |
||||||||||
|
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA |
||||||||||||||
|
EBITDA |
$ |
181,938 |
$ |
59,038 |
||||||||||
|
Add: Stock-based compensation |
5,072 |
6,025 |
||||||||||||
|
Add: Net non-cash change in fair value of catalyst leases |
(13) |
2,588 |
||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
(87,653) |
16,039 |
||||||||||||
|
Adjusted EBITDA |
$ |
99,344 |
$ |
83,690 |
||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||||||||
|
(Unaudited, in thousands) | |||||||||||
|
March 31, |
December 31, | ||||||||||
|
2018 |
2017 | ||||||||||
|
Balance Sheet Data: |
|||||||||||
|
Cash and cash equivalents |
$ |
362,963 |
$ |
573,021 |
|||||||
|
Inventories |
2,579,744 |
2,213,797 |
|||||||||
|
Total assets |
8,282,363 |
8,117,993 |
|||||||||
|
Total debt |
2,181,046 |
2,191,650 |
|||||||||
|
Total equity |
2,915,825 |
2,902,949 |
|||||||||
|
Total equity excluding special items (Note 5, 14) |
$ |
2,898,526 |
$ |
2,950,154 |
|||||||
|
Total debt to capitalization ratio (Note 14) |
43 |
% |
43 |
% | |||||||
|
Total debt to capitalization ratio, excluding special items (Note 14) |
43 |
% |
43 |
% | |||||||
|
Net debt to capitalization ratio (Note 14) |
38 |
% |
36 |
% | |||||||
|
Net debt to capitalization ratio, excluding special items (Note 14) |
39 |
% |
35 |
% | |||||||
|
SUMMARIZED STATEMENT OF CASH FLOW DATA | |||||||||||
|
(Unaudited, in thousands) | |||||||||||
|
Three Months Ended March 31, | |||||||||||
|
2018 |
2017 | ||||||||||
|
Cash flows used in operations |
$ |
(85,433) |
$ |
(165,364) |
|||||||
|
Cash flows used in investing activities |
(93,280) |
(188,974) |
|||||||||
|
Cash flows used in financing activities |
(31,345) |
(85,845) |
|||||||||
|
Net decrease in cash and cash equivalents |
(210,058) |
(440,183) |
|||||||||
|
Cash and cash equivalents, beginning of period |
573,021 |
746,274 |
|||||||||
|
Cash and cash equivalents, end of period |
$ |
362,963 |
$ |
306,091 |
|||||||
|
Marketable securities |
— |
40,054 |
|||||||||
|
Net cash, cash equivalents and marketable securities |
$ |
362,963 |
$ |
346,145 |
|||||||
|
See Footnotes to Earnings Release Tables | |||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||
|
CONSOLIDATING FINANCIAL INFORMATION (Note 9) | |||||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||||
|
Three Months Ended March 31, 2018 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated | |||||||||||||||
|
Revenues |
$ |
5,799,601 |
$ |
64,039 |
$ |
— |
$ |
(60,864) |
$ |
5,802,776 |
|||||||||
|
Depreciation and amortization expense |
76,778 |
6,495 |
2,714 |
— |
85,987 |
||||||||||||||
|
Income (loss) from operations (Note 15, |
125,713 |
35,205 |
(61,236) |
(4,022) |
95,660 |
||||||||||||||
|
Interest expense, net |
1,835 |
9,948 |
31,415 |
— |
43,198 |
||||||||||||||
|
Capital expenditures |
88,297 |
3,953 |
1,030 |
— |
93,280 |
||||||||||||||
|
Three Months Ended March 31, 2017 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated | |||||||||||||||
|
Revenues |
$ |
4,750,197 |
$ |
60,477 |
$ |
— |
$ |
(56,201) |
$ |
4,754,473 |
|||||||||
|
Depreciation and amortization expense |
53,818 |
5,352 |
1,762 |
— |
60,932 |
||||||||||||||
|
Income (loss) from operations (Note 15, 17) |
10,615 |
36,041 |
(42,262) |
(3,599) |
795 |
||||||||||||||
|
Interest expense, net |
918 |
7,984 |
28,281 |
— |
37,183 |
||||||||||||||
|
Capital expenditures |
167,216 |
19,467 |
2,261 |
— |
188,944 |
||||||||||||||
|
Balance at March 31, 2018 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated | |||||||||||||||
|
Total Assets (Note 16) |
$ |
7,471,210 |
$ |
728,480 |
$ |
115,576 |
$ |
(32,903) |
$ |
8,282,363 |
|||||||||
|
Balance at December 31, 2017 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated | |||||||||||||||
|
Total Assets (Note 16) |
$ |
7,298,049 |
$ |
737,550 |
$ |
123,211 |
$ |
(40,817) |
$ |
8,117,993 |
|||||||||
|
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 | |||||||||||||
|
March 31, | |||||||||||||
|
Market Indicators (dollars per barrel) (Note 10) |
2018 |
2017 | |||||||||||
|
Dated Brent Crude |
$ |
66.90 |
$ |
53.57 |
|||||||||
|
West Texas Intermediate (WTI) crude oil |
$ |
62.90 |
$ |
51.70 |
|||||||||
|
Light Louisiana Sweet (LLS) crude oil |
$ |
65.84 |
$ |
53.39 |
|||||||||
|
Alaska North Slope (ANS) crude oil |
$ |
67.20 |
$ |
53.82 |
|||||||||
|
Crack Spreads: |
|||||||||||||
|
Dated Brent (NYH) 2-1-1 |
$ |
12.80 |
$ |
11.58 |
|||||||||
|
WTI (Chicago) 4-3-1 |
$ |
11.78 |
$ |
11.19 |
|||||||||
|
LLS (Gulf Coast) 2-1-1 |
$ |
12.84 |
$ |
12.03 |
|||||||||
|
ANS (West Coast) 4-3-1 |
$ |
16.42 |
$ |
16.52 |
|||||||||
|
Crude Oil Differentials: |
|||||||||||||
|
Dated Brent (foreign) less WTI |
$ |
4.00 |
$ |
1.87 |
|||||||||
|
Dated Brent less Maya (heavy, sour) |
$ |
9.15 |
$ |
8.95 |
|||||||||
|
Dated Brent less WTS (sour) |
$ |
5.40 |
$ |
3.31 |
|||||||||
|
Dated Brent less ASCI (sour) |
$ |
4.57 |
$ |
4.08 |
|||||||||
|
WTI less WCS (heavy, sour) |
$ |
26.06 |
$ |
12.93 |
|||||||||
|
WTI less Bakken (light, sweet) |
$ |
1.04 |
$ |
0.92 |
|||||||||
|
WTI less Syncrude (light, sweet) |
$ |
0.30 |
$ |
(2.20) |
|||||||||
|
WTI less LLS (light, sweet) |
$ |
(2.94) |
$ |
(1.69) |
|||||||||
|
WTI less ANS (light, sweet) |
$ |
(4.30) |
$ |
(2.12) |
|||||||||
|
Natural gas (dollars per MMBTU) |
$ |
2.79 |
$ |
3.06 |
|||||||||
|
Key Operating Information |
|||||||||||||
|
Production (barrels per day ("bpd") in thousands) |
803.0 |
742.7 |
|||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
799.6 |
738.0 |
|||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
72.0 |
66.4 |
|||||||||||
|
Gross margin per barrel of throughput |
$ |
2.54 |
$ |
1.01 |
|||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, Note 11) |
$ |
7.26 |
$ |
7.75 |
|||||||||
|
Refinery operating expense, per barrel of throughput (Note 12) |
$ |
5.72 |
$ |
6.58 |
|||||||||
|
Crude and feedstocks (% of total throughput) (Note 13) |
|||||||||||||
|
Heavy |
34 |
% |
40 |
% | |||||||||
|
Medium |
35 |
% |
29 |
% | |||||||||
|
Light |
20 |
% |
16 |
% | |||||||||
|
Other feedstocks and blends |
11 |
% |
15 |
% | |||||||||
|
Total throughput |
100 |
% |
100 |
% | |||||||||
|
Yield (% of total throughput): |
|||||||||||||
|
Gasoline and gasoline blendstocks |
51 |
% |
52 |
% | |||||||||
|
Distillates and distillate blendstocks |
31 |
% |
29 |
% | |||||||||
|
Lubes |
1 |
% |
1 |
% | |||||||||
|
Chemicals |
2 |
% |
2 |
% | |||||||||
|
Other |
15 |
% |
16 |
% | |||||||||
|
Total yield |
100 |
% |
100 |
% | |||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | |||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | |||||||||||||
|
Three Months Ended | |||||||||||||
|
March 31, | |||||||||||||
|
2018 |
2017 | ||||||||||||
|
Supplemental Operating Information - East Coast (Delaware City and Paulsboro) |
|||||||||||||
|
Production (bpd in thousands) |
329.6 |
317.0 |
|||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
332.9 |
320.3 |
|||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
30.0 |
28.8 |
|||||||||||
|
Gross margin per barrel of throughput |
$ |
1.23 |
$ |
(0.09) |
|||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, Note 11) |
$ |
6.47 |
$ |
5.96 |
|||||||||
|
Refinery operating expense, per barrel of throughput (Note 12) |
$ |
5.16 |
$ |
5.18 |
|||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
|||||||||||||
|
Heavy |
23 |
% |
37 |
% | |||||||||
|
Medium |
52 |
% |
36 |
% | |||||||||
|
Light |
10 |
% |
10 |
% | |||||||||
|
Other feedstocks and blends |
15 |
% |
17 |
% | |||||||||
|
Total throughput |
100 |
% |
100 |
% | |||||||||
|
Yield (% of total throughput): |
|||||||||||||
|
Gasoline and gasoline blendstocks |
48 |
% |
47 |
% | |||||||||
|
Distillates and distillate blendstocks |
32 |
% |
30 |
% | |||||||||
|
Lubes |
3 |
% |
2 |
% | |||||||||
|
Chemicals |
1 |
% |
1 |
% | |||||||||
|
Other |
15 |
% |
19 |
% | |||||||||
|
Total yield |
99 |
% |
99 |
% | |||||||||
|
Supplemental Operating Information - Mid-Continent (Toledo) |
|||||||||||||
|
Production (bpd in thousands) |
125.0 |
126.5 |
|||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
122.9 |
123.8 |
|||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
11.1 |
11.1 |
|||||||||||
|
Gross margin per barrel of throughput |
$ |
0.12 |
$ |
(1.67) |
|||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, Note 11) |
$ |
8.22 |
$ |
7.65 |
|||||||||
|
Refinery operating expense, per barrel of throughput (Note 12) |
$ |
6.19 |
$ |
6.53 |
|||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
|||||||||||||
|
Medium |
37 |
% |
46 |
% | |||||||||
|
Light |
62 |
% |
53 |
% | |||||||||
|
Other feedstocks and blends |
1 |
% |
1 |
% | |||||||||
|
Total throughput |
100 |
% |
100 |
% | |||||||||
|
Yield (% of total throughput): |
|||||||||||||
|
Gasoline and gasoline blendstocks |
60 |
% |
54 |
% | |||||||||
|
Distillates and distillate blendstocks |
32 |
% |
35 |
% | |||||||||
|
Chemicals |
5 |
% |
7 |
% | |||||||||
|
Other |
5 |
% |
6 |
% | |||||||||
|
Total yield |
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 | |||||||||||||
|
March 31, | |||||||||||||
|
2018 |
2017 | ||||||||||||
|
Supplemental Operating Information - Gulf Coast (Chalmette) |
|||||||||||||
|
Production (bpd in thousands) |
167.1 |
162.7 |
|||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
169.2 |
155.6 |
|||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
15.2 |
14.0 |
|||||||||||
|
Gross margin per barrel of throughput |
$ |
0.06 |
$ |
1.72 |
|||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, Note 11) |
$ |
4.45 |
$ |
9.20 |
|||||||||
|
Refinery operating expense, per barrel of throughput (Note 12) |
$ |
5.01 |
$ |
6.23 |
|||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
|||||||||||||
|
Heavy |
41 |
% |
41 |
% | |||||||||
|
Medium |
19 |
% |
24 |
% | |||||||||
|
Light |
32 |
% |
13 |
% | |||||||||
|
Other feedstocks and blends |
8 |
% |
22 |
% | |||||||||
|
Total throughput |
100 |
% |
100 |
% | |||||||||
|
Yield (% of total throughput): |
|||||||||||||
|
Gasoline and gasoline blendstocks |
40 |
% |
50 |
% | |||||||||
|
Distillates and distillate blendstocks |
33 |
% |
29 |
% | |||||||||
|
Chemicals |
1 |
% |
2 |
% | |||||||||
|
Other |
25 |
% |
19 |
% | |||||||||
|
99 |
% |
100 |
% | ||||||||||
|
Supplemental Operating Information - West Coast (Torrance) |
|||||||||||||
|
Production (bpd in thousands) |
181.3 |
136.5 |
|||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
174.6 |
138.3 |
|||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
15.7 |
12.5 |
|||||||||||
|
Gross margin per barrel of throughput |
$ |
5.26 |
$ |
0.39 |
|||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, Note 11) |
$ |
10.81 |
$ |
10.33 |
|||||||||
|
Refinery operating expense, per barrel of throughput (Note 12) |
$ |
7.13 |
$ |
10.24 |
|||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
|||||||||||||
|
Heavy |
80 |
% |
83 |
% | |||||||||
|
Medium |
4 |
% |
1 |
% | |||||||||
|
Other feedstocks and blends |
16 |
% |
16 |
% | |||||||||
|
Total throughput |
100 |
% |
100 |
% | |||||||||
|
Yield (% of total throughput): |
|||||||||||||
|
Gasoline and gasoline blendstocks |
60 |
% |
64 |
% | |||||||||
|
Distillates and distillate blendstocks |
28 |
% |
21 |
% | |||||||||
|
Other |
16 |
% |
14 |
% | |||||||||
|
Total yield |
104 |
% |
99 |
% | |||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||
|
GROSS REFINING MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note 11) | |||||||||||||||||||||
|
(Unaudited, in thousands, except per barrel amounts) | |||||||||||||||||||||
|
Three Months Ended |
Three Months Ended | ||||||||||||||||||||
|
March 31, 2018 |
March 31, 2017 | ||||||||||||||||||||
|
RECONCILIATION OF GROSS MARGIN TO GROSS REFINING |
$ |
per barrel of |
$ |
per barrel of | |||||||||||||||||
|
Calculation of gross margin: |
|||||||||||||||||||||
|
Revenues |
$ |
5,802,776 |
$ |
80.64 |
$ |
4,754,473 |
$ |
71.56 |
|||||||||||||
|
Less: Cost of products and other |
5,132,102 |
71.31 |
4,196,767 |
63.16 |
|||||||||||||||||
|
Less: Refinery operating expense |
411,447 |
5.72 |
436,768 |
6.58 |
|||||||||||||||||
|
Less: Refinery depreciation expense |
76,778 |
1.07 |
53,927 |
0.81 |
|||||||||||||||||
|
Gross margin |
$ |
182,449 |
$ |
2.54 |
$ |
67,011 |
$ |
1.01 |
|||||||||||||
|
Less: Revenues of PBFX |
(64,039) |
(0.89) |
(60,477) |
(0.91) |
|||||||||||||||||
|
Add: Affiliate cost of sales of PBFX |
3,360 |
0.05 |
1,215 |
0.02 |
|||||||||||||||||
|
Add: Refinery operating expense (Note 17) |
411,447 |
5.72 |
436,768 |
6.58 |
|||||||||||||||||
|
Add: Refinery depreciation expense |
76,778 |
1.07 |
53,927 |
0.81 |
|||||||||||||||||
|
Gross refining margin |
$ |
609,995 |
$ |
8.49 |
$ |
498,444 |
$ |
7.51 |
|||||||||||||
|
Special Items (Note 5): |
|||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment |
(87,653) |
(1.23) |
16,039 |
0.24 |
|||||||||||||||||
|
Gross refining margin excluding special items |
$ |
522,342 |
$ |
7.26 |
$ |
514,483 |
$ |
7.75 |
|||||||||||||
|
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 cost 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 condensed consolidated income from operations or net income, nor does it have any impact on our condensed 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 7. | |||||||||||||||
|
(3) 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 Series A Units for shares of PBF Energy's Class A common stock. | |||||||||||||||
|
(4) Represents an adjustment to reflect our estimated annualized statutory corporate tax rate of approximately 26.4% and 39.4% for the 2018 and 2017 periods, respectively, applied to net income attributable to noncontrolling interests for all periods presented. The adjustment assumes the full exchange of existing PBF Energy Company LLC Series A Units as described in footnote 3. | |||||||||||||||
|
(5) The Non-GAAP measures presented include adjusted fully-converted net income (loss) excluding special items, income from operations excluding special items, EBITDA excluding special items and gross refining margin excluding special items. The special items presented for the three months ended March 31, 2018 and for the three months ended March 31, 2017 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 14. | |||||||||||||||
|
The following table shows the LCM inventory reserve as of each date presented (in thousands): | |||||||||||||||
|
2018 |
2017 |
||||||||||||||
|
January 1, |
$ |
300,456 |
$ |
595,988 |
|||||||||||
|
March 31, |
212,803 |
612,027 |
|||||||||||||
|
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 thousands): | |||||||||||||||
|
Three Months Ended | |||||||||||||||
|
2018 |
2017 | ||||||||||||||
|
Net LCM inventory adjustment benefit (charge) in income from |
$ |
87,653 |
$ |
(16,039) |
|||||||||||
|
Net LCM inventory adjustment benefit (charge) in net income (loss) |
64,504 |
(9,726) |
|||||||||||||
|
(6) Represents an adjustment to weighted-average diluted shares outstanding to assume the full exchange of existing PBF LLC Series A Units as described in footnote 3 above. | |||||||||||||||
|
(7) Represents weighted-average diluted shares outstanding assuming the conversion of all common stock equivalents, including options and warrants for PBF LLC Series A Units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method (to the extent the impact of such exchange would not be anti-dilutive) for the three months ended March 31, 2018 and 2017, respectively. Common stock equivalents exclude the effects of options and warrants to purchase 3,982,000 and 7,364,616 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three months ended March 31, 2018 and 2017, respectively. | |||||||||||||||
|
(8) EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Adjusted EBITDA are supplemental measures of performance that are not required by, or presented in accordance with GAAP. We use these Non-GAAP financial measures as a supplement to our GAAP results in order to provide additional metrics on factors and trends affecting our business. EBITDA and Adjusted EBITDA are measures of operating performance that are not defined by GAAP and should not be considered substitutes for net income as determined in accordance with GAAP. In addition, because EBITDA and Adjusted EBITDA are not calculated in the same manner by all companies, they are not necessarily comparable to other similarly titled measures used by other companies. EBITDA and Adjusted EBITDA have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. | |||||||||||||||
|
(9) We operate in two reportable segments: Refining and Logistics. Our operations that are not included in the Refining and Logistics segments are included in Corporate. As of March 31, 2018, 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.
PBFX currently does not generate significant third party revenue and intersegment related-party revenues are eliminated in consolidation. From a PBF Energy perspective, the Company's chief operating decision maker evaluates the Logistics segment as a whole without regard to any of PBFX's individual segments. | |||||||||||||||
|
(10) As reported by Platts. | |||||||||||||||
|
(11) Gross refining margin and gross refining margin per barrel of throughput are Non-GAAP measures because they exclude refinery operating expenses, refinery depreciation and amortization and gross margin of PBFX. Gross refining margin per barrel is gross refining margin, divided by total crude and feedstocks throughput. We believe they are important measures of operating performance and provide useful information to investors because gross refining margin per barrel is a helpful metric comparison to the industry refining margin benchmarks shown in the Market Indicators Tables, as the industry benchmarks do not include a charge for refinery operating expenses and depreciation. Other companies in our industry may not calculate gross refining margin and gross refining margin per barrel in the same manner. Gross refining margin and gross refining margin per barrel of throughput have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. | |||||||||||||||
|
(12) Represents refinery operating expenses, including corporate-owned logistics assets, excluding depreciation and amortization, divided by total crude oil and feedstocks throughput. | |||||||||||||||
|
(13) We define heavy crude oil as crude oil with American Petroleum Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with API gravity between 24 and 35 degrees. We define light crude oil as crude oil with API gravity higher than 35 degrees. | |||||||||||||||
|
(14) The 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, 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. | |||||||||||||||
|
March 31, |
December 31, | |||||||||
|
2018 |
2017 | |||||||||
|
(in thousands) | ||||||||||
|
Total debt |
$ |
2,181,046 |
$ |
2,191,650 |
||||||
|
Total equity |
2,915,825 |
2,902,949 |
||||||||
|
Total capitalization |
$ |
5,096,871 |
$ |
5,094,599 |
||||||
|
Total debt |
$ |
2,181,046 |
$ |
2,191,650 |
||||||
|
Total equity excluding special items |
2,898,526 |
2,950,154 |
||||||||
|
Total capitalization excluding special items |
$ |
5,079,572 |
$ |
5,141,804 |
||||||
|
Total equity |
$ |
2,915,825 |
$ |
2,902,949 |
||||||
|
Special Items (Note 5) |
||||||||||
|
Add: Non-cash LCM inventory adjustment |
212,803 |
300,456 |
||||||||
|
Add: Change in tax receivable agreement liability |
(276,430) |
(276,430) |
||||||||
|
Add: Debt extinguishment costs |
25,451 |
25,451 |
||||||||
|
Less: Recomputed income taxes on special items |
724 |
(22,425) |
||||||||
|
Add: Net tax expense on TCJA related special items |
20,153 |
20,153 |
||||||||
|
Net impact of special items to equity |
(17,299) |
47,205 |
||||||||
|
Total equity excluding special items |
$ |
2,898,526 |
$ |
2,950,154 |
||||||
|
Total debt |
$ |
2,181,046 |
$ |
2,191,650 |
||||||
|
Less: Cash and cash equivalents |
362,963 |
573,021 |
||||||||
|
Net Debt |
$ |
1,818,083 |
$ |
1,618,629 |
||||||
|
Total debt to capitalization ratio |
43 |
% |
43 |
% | ||||||
|
Total debt to capitalization ratio, excluding special items |
43 |
% |
43 |
% | ||||||
|
Net debt to capitalization ratio |
38 |
% |
36 |
% | ||||||
|
Net debt to capitalization ratio, excluding special items |
39 |
% |
35 |
% | ||||||
|
(15) 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. | ||||||||||||||
|
(16) 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. | ||||||||||||||
|
(17) The Company adopted ASU 2017-07 effective January 1, 2018. The new guidance requires the bifurcation of net periodic benefit cost. The service cost component is presented within Income from operations, while the other components are reported separately outside of operations. This guidance was applied retrospectively in the condensed consolidated statements of operations. For the three months ended March 31, 2018 and March 31, 2017, the Company reported income of $278 ($240 related to its Refining segment and $38 related to its Corporate segment) and expense of $101 ($85 related to its Refining segment and $16 related to its Corporate segment), respectively, related to the non-service cost components of net periodic benefit cost in Other income (expense). | ||||||||||||||
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-reports-first-quarter-2018-results-declares-dividend-of-0-30-per-share-300641804.html
SOURCE PBF Energy Inc.
Article Date
5/3/2018PBF Logistics Increases Quarterly Distribution to $0.49 per Unit and Announces First Quarter 2018 Earnings Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., May 3, 2018 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") today announced first quarter 2018 net income attributable to the limited partners of $18.3 million, or $0.43 per common unit, net of the General Partner interest. During the quarter, the Partnership generated cash from operations of approximately $44.1 million, earnings before interest, income taxes, depreciation, and amortization ("EBITDA") of $36.3 million and distributable cash flow of $26.2 million.
"Our first quarter performance reflects another solid operational quarter. Utilization at our East Coast rail facilities increased as a result of favorable crude oil economics for our sponsor. We are actively attracting additional third parties to our East Coast terminals as we continue to build that business," said PBF Logistics GP LLC Executive Vice President Matt Lucey. "Subsequent to the end of the quarter, we announced a multi-asset transaction that will continue the growth of the Partnership. Our robust business development efforts generated these opportunities for the benefit of both the Partnership and our sponsor. We remain focused on further developing our promising pipeline of organic projects and supplementing that growth with additional third-party acquisitions such as the recently acquired Cummins Terminals. The Partnership is committed to delivering future growth and rewarding our unitholders."
As of March 31, 2018, the Partnership had approximately $358.0 million of liquidity, including approximately $22.0 million in cash and cash equivalents, and access to approximately $336.0 million under its existing revolving credit facility.
Acquisitions and Growth
On April 16, 2018, the Partnership announced that it entered into multiple agreements delivering accretive growth. First, PBF Logistics acquired the third-party Cummins Terminals, located in Knoxville, TN. Additionally, the Partnership has reached an agreement to acquire several development assets from subsidiaries of PBF Energy Inc. (NYSE: PBF, "PBF Energy"), its sponsor. The execution of definitive agreements for, and the closing of, the assets to be acquired from PBF Energy are expected in the second quarter of 2018.
In association with the assets acquired from PBF Energy, the Partnership has identified organic growth investment projects that will generate incremental revenue for PBFX while providing new opportunities for PBF Energy to maximize the potential of presently under-utilized assets. Upon completion of the organic project investments, run-rate annualized EBITDA is expected to be approximately $18.1 million, which will be supported by long-term agreements with PBF Energy. The total consideration of $125.4 million, including acquisitions and investments, is expected to be financed through a combination of cash on hand, borrowings under the Partnership's revolving credit facility and equity issued to PBF Energy. Pro forma leverage is expected to remain below 3.7x.
PBF Logistics Announces Increased Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.49 per common unit. The distribution is payable on May 30, 2018, to unitholders of record at the close of business on May 15, 2018.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
PBFX Reconciliation of Amounts under U.S. GAAP to annualized run-rate EBITDA (unaudited, in millions)
Reconciliation of Acquired assets and project related Forecasted Net Income to annualized run-rate EBITDA:
|
Forecasted net income |
$ |
10.4 |
|
|
Add: Depreciation and amortization expense |
3.8 |
||
|
Add: Interest expense, net and other financing costs |
3.9 |
||
|
Annualized run-rate EBITDA |
$ |
18.1 |
|
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA should not be considered an alternative to net income, income from operations, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important limitations as an analytical tool because it excludes some, but not all, items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.
Conference Call Information
The Partnership's senior management will host a conference call and webcast regarding quarterly results and other business matters on Thursday, May 3, 2018, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (877) 876-9176 or (785) 424-1667, conference ID: PBFXQ118. The audio replay will be available two hours after the end of the call through May 17, 2018, by dialing (800) 839-1337 or (402) 220-0489.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including the Annual Report on Form 10-K. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present our results of operations, related operational information, and reconciliations of net income and net cash provided by operating activities to EBITDA and distributable cash flow (both as defined below) of PBFX for the three months ended March 31, 2018 and 2017. The financial information presented contains the financial results of PBFX and PNGPC (as defined below) prior to the PNGPC Acquisition (as defined below) on February 28, 2017.
Effective January 1, 2018, our wholly-owned subsidiary, Delaware City Terminaling Company LLC, and PBF Holding Company LLC ("PBF Holding") amended the commercial agreements relating to our Delaware City rail unloading assets with the service fees thereunder being adjusted, including the addition of an ancillary fee paid by PBF Holding on an actual cost basis (the "Amended and Restated Rail Agreements").
On April 17, 2017, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), acquired the Toledo, Ohio refined products terminal assets (the "Toledo Products Terminal") from Sunoco Logistics Partners L.P. (the "Toledo Products Terminal Acquisition"). The Toledo Products Terminal is directly connected to, and currently supplied by, PBF Holding's Toledo Refinery. The Toledo Products Terminal is comprised of a ten-bay truck rack and over 110,000 barrels of chemicals, clean product and additive storage capacity.
On February 28, 2017, our wholly-owned subsidiary, PBFX Operating Company LLC ("PBFX Op Co"), acquired from PBF Energy Company LLC ("PBF LLC"), a subsidiary of PBF Energy Inc. ("PBF Energy"), all of the issued and outstanding limited liability company interests of Paulsboro Natural Gas Pipeline Company LLC ("PNGPC") (the "PNGPC Acquisition"). In connection with the PNGPC Acquisition, we constructed a new 24" natural gas pipeline to replace the existing interstate pipeline, which commenced services in August 2017 (the "Paulsboro Natural Gas Pipeline"). Concurrent with commencement of operations of the Paulsboro Natural Gas Pipeline, a new service agreement was entered into between PNGPC and Paulsboro Refining Company LLC ("PRC").
In November 2017, we completed construction of a new crude tank with a shell capacity of 625,000 barrels at PBF Holding's Chalmette Refinery (the "Chalmette Storage Tank"). Our wholly-owned subsidiary, PBFX Op Co, began providing storage services to PBF Holding in November 2017 at PBF Holding's Chalmette Refinery under a ten-year storage services agreement (the "Chalmette Storage Services Agreement").
The PNGPC Acquisition was a transfer between entities under common control. Accordingly, PBFX's financial information contained herein has been retrospectively adjusted to include the historical results of PNGPC as if it was owned by the Partnership for all periods presented. The results of PNGPC are included in the Transportation and Terminaling segment.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense, income tax expense, depreciation and amortization expense attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less net cash paid for interest, maintenance capital expenditures and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is distributable cash flow divided by total distribution declared. EBITDA, EBITDA attributable to PBFX and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX and distributable cash flow are not presentations made in accordance with GAAP, they are supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA and EBITDA attributable to PBFX provides useful information to investors in assessing our financial condition and results of operations. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, as it provides investors with another perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
|
PBF LOGISTICS LP | ||||||||
|
EARNINGS RELEASE TABLES | ||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
|
(Unaudited, in thousands, except unit and per unit data) | ||||||||
|
Three Months Ended March 31, | ||||||||
|
2018 |
2017 | |||||||
|
Revenue (a): |
||||||||
|
Affiliate |
$ |
60,864 |
$ |
56,202 |
||||
|
Third-party |
3,175 |
4,275 |
||||||
|
Total revenue |
64,039 |
60,477 |
||||||
|
Costs and expenses: |
||||||||
|
Operating and maintenance expenses (a) |
18,048 |
15,769 |
||||||
|
General and administrative expenses |
4,291 |
3,315 |
||||||
|
Depreciation and amortization |
6,495 |
5,352 |
||||||
|
Total costs and expenses |
28,834 |
24,436 |
||||||
|
Income from operations |
35,205 |
36,041 |
||||||
|
Other expense: |
||||||||
|
Interest expense, net |
(9,585) |
(7,568) |
||||||
|
Amortization of loan fees and debt premium |
(363) |
(416) |
||||||
|
Net income |
25,257 |
28,057 |
||||||
|
Less: Net loss attributable to Predecessor |
— |
(150) |
||||||
|
Less: Net income attributable to noncontrolling interest (g) |
4,022 |
3,599 |
||||||
|
Net income attributable to the partners |
21,235 |
24,608 |
||||||
|
Less: Net income attributable to the IDR holder |
2,959 |
1,686 |
||||||
|
Net income attributable to PBF Logistics LP unitholders |
$ |
18,276 |
$ |
22,922 |
||||
|
Net income per limited partner unit (h): |
||||||||
|
Common units - basic |
$ |
0.43 |
$ |
0.55 |
||||
|
Common units - diluted |
0.43 |
0.55 |
||||||
|
Subordinated units - basic and diluted |
— |
0.55 |
||||||
|
Weighted-average limited partner units outstanding (h): |
||||||||
|
Common units - basic |
42,129,377 |
26,042,248 |
||||||
|
Common units - diluted |
42,236,092 |
26,127,441 |
||||||
|
Subordinated units - basic and diluted |
— |
15,886,553 |
||||||
|
Cash distribution declared per unit (e) |
$ |
0.49 |
$ |
0.46 |
||||
|
See Footnotes to Earnings Release Tables | ||||||||
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||
|
Three Months Ended March 31, | ||||||||||||
|
2018 |
2017 | |||||||||||
|
Transportation and Terminaling Segment |
||||||||||||
|
Terminals |
||||||||||||
|
Total throughput (barrels per day ("bpd")) (b)(d) |
197,398 |
178,715 |
||||||||||
|
Lease tank capacity (average lease capacity barrels per month) |
2,137,302 |
2,126,209 |
||||||||||
|
Pipelines |
||||||||||||
|
Total throughput (bpd) (b)(d) |
152,757 |
146,302 |
||||||||||
|
Lease tank capacity (average lease capacity barrels per month) |
1,536,912 |
1,371,862 |
||||||||||
|
Storage Segment |
||||||||||||
|
Storage capacity reserved (average shell capacity barrels per month) |
4,478,755 |
3,691,939 |
||||||||||
|
Cash Flow Information: |
||||||||||||
|
Net cash provided by (used in): |
||||||||||||
|
Operating activities |
$ |
44,056 |
$ |
53,797 |
||||||||
|
Investing activities |
(3,953) |
(19,497) |
||||||||||
|
Financing activities |
(37,758) |
(57,691) |
||||||||||
|
Net change in cash |
$ |
2,345 |
$ |
(23,391) |
||||||||
|
Other Financial Information: |
||||||||||||
|
EBITDA attributable to PBFX (c) |
$ |
36,317 |
$ |
36,469 |
||||||||
|
Distributable cash flow (c) |
$ |
26,246 |
$ |
28,574 |
||||||||
|
Quarterly distribution declared per unit (e) |
$ |
0.49 |
$ |
0.46 |
||||||||
|
Distributions (e): |
||||||||||||
|
Common units |
$ |
20,847 |
$ |
12,141 |
||||||||
|
Subordinated units - PBF LLC |
— |
7,308 |
||||||||||
|
IDR holder - PBF LLC |
2,959 |
1,686 |
||||||||||
|
Total distributions |
$ |
23,806 |
$ |
21,135 |
||||||||
|
Coverage ratio (c) |
1.10x |
1.35x |
||||||||||
|
Capital expenditures |
$ |
3,953 |
$ |
19,467 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
PBF LOGISTICS LP | ||||||||
|
EARNINGS RELEASE TABLES | ||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||
|
(Unaudited, in thousands) | ||||||||
|
March 31, |
December 31, | |||||||
|
Balance Sheet Information: |
2018 |
2017 | ||||||
|
Cash and cash equivalents (f) |
$ |
22,009 |
$ |
19,664 |
||||
|
Property, plant and equipment, net |
670,261 |
673,823 |
||||||
|
Total assets |
728,480 |
737,550 |
||||||
|
Total debt (f) |
539,456 |
548,793 |
||||||
|
Total liabilities |
573,659 |
580,455 |
||||||
|
Partners' equity |
(16,104) |
(14,808) |
||||||
|
Noncontrolling interest (g) |
170,925 |
171,903 |
||||||
|
Total liabilities and equity |
728,480 |
737,550 |
||||||
|
See Footnotes to Earnings Release Tables | ||||||||
|
PBF LOGISTICS LP | |||||||||
|
EARNINGS RELEASE TABLES | |||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||
|
TO EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||
|
(Unaudited, in thousands) | |||||||||
|
Three Months Ended March 31, | |||||||||
|
2018 |
2017 | ||||||||
|
Reconciliation of net income to EBITDA and distributable cash flow (c): |
|||||||||
|
Net income |
$ |
25,257 |
$ |
28,057 |
|||||
|
Interest expense, net |
9,585 |
7,568 |
|||||||
|
Amortization of loan fees and debt premium |
363 |
416 |
|||||||
|
Depreciation and amortization |
6,495 |
5,352 |
|||||||
|
EBITDA |
41,700 |
41,393 |
|||||||
|
Less: Predecessor EBITDA |
— |
(40) |
|||||||
|
Less: Noncontrolling interest EBITDA (g) |
5,383 |
4,964 |
|||||||
|
EBITDA attributable to PBFX |
36,317 |
36,469 |
|||||||
|
Non-cash unit-based compensation expense |
834 |
680 |
|||||||
|
Cash interest |
(9,580) |
(7,750) |
|||||||
|
Maintenance capital expenditures |
(1,325) |
(825) |
|||||||
|
Distributable cash flow |
$ |
26,246 |
$ |
28,574 |
|||||
|
Reconciliation of net cash provided by operating activities to EBITDA and |
|||||||||
|
Net cash provided by operating activities |
$ |
44,056 |
$ |
53,797 |
|||||
|
Change in operating assets and liabilities |
(11,107) |
(19,292) |
|||||||
|
Interest expense, net |
9,585 |
7,568 |
|||||||
|
Non-cash unit-based compensation expense |
(834) |
(680) |
|||||||
|
EBITDA |
41,700 |
41,393 |
|||||||
|
Less: Predecessor EBITDA |
— |
(40) |
|||||||
|
Less: Noncontrolling interest EBITDA (g) |
5,383 |
4,964 |
|||||||
|
EBITDA attributable to PBFX |
36,317 |
36,469 |
|||||||
|
Non-cash unit-based compensation expense |
834 |
680 |
|||||||
|
Cash interest |
(9,580) |
(7,750) |
|||||||
|
Maintenance capital expenditures |
(1,325) |
(825) |
|||||||
|
Distributable cash flow |
$ |
26,246 |
$ |
28,574 |
|||||
|
See Footnotes to Earnings Release Tables | |||||||||
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||
|
Three Months Ended March 31, 2018 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total revenue (a) |
$ |
56,970 |
$ |
7,069 |
$ |
— |
$ |
64,039 |
||||||||
|
Depreciation and amortization expense |
5,570 |
925 |
— |
6,495 |
||||||||||||
|
Income (loss) from operations |
35,505 |
3,991 |
(4,291) |
35,205 |
||||||||||||
|
Interest expense, net and amortization of |
— |
— |
9,948 |
9,948 |
||||||||||||
|
Capital expenditures |
3,867 |
86 |
— |
3,953 |
||||||||||||
|
Three Months Ended March 31, 2017 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total revenue (a) |
$ |
54,939 |
$ |
5,538 |
$ |
— |
$ |
60,477 |
||||||||
|
Depreciation and amortization expense |
4,751 |
601 |
— |
5,352 |
||||||||||||
|
Income (loss) from operations |
36,106 |
3,250 |
(3,315) |
36,041 |
||||||||||||
|
Interest expense, net and amortization of |
— |
— |
7,984 |
7,984 |
||||||||||||
|
Capital expenditures |
15,293 |
4,174 |
— |
19,467 |
||||||||||||
|
Balance at March 31, 2018 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total assets |
$ |
640,095 |
$ |
85,220 |
$ |
3,165 |
$ |
728,480 |
||||||||
|
Balance at December 31, 2017 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total assets |
$ |
639,310 |
$ |
86,760 |
$ |
11,480 |
$ |
737,550 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF LOGISTICS LP | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
|
(Unaudited, in thousands, except per unit data) | |||||||||||
|
(a) |
See discussion of the factors affecting comparability noted on page 4. Our results of operations may not be comparable to the historical results of operations for the reasons described below: . | ||||||||||
|
(b) |
Calculated as the sum of the average throughput per day for each asset group for the period presented. | ||||||||||
|
(c) |
See "Non-GAAP Financial Measures" on page 4 for definitions of EBITDA, EBITDA attributable to PBFX, distributable cash flow and coverage ratio. | ||||||||||
|
(d) |
Operating information pertains to assets which are included in the Transportation and Terminaling segment. Throughput information reflects activity subsequent to execution of the commercial agreements in connection with the acquisitions of the Toledo Products Terminal and the Paulsboro Natural Gas Pipeline. | ||||||||||
|
(e) |
On May 3, 2018, we announced a quarterly cash distribution of $0.49 per limited partner unit based on the results of the first quarter of 2018. The distribution is payable on May 30, 2018 to PBFX unitholders of record at the close of business on May 15, 2018. The total distribution amounts include the expected distributions to be made related to first quarter earnings. | ||||||||||
|
(f) |
Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents from total debt. We believe this measurement is 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. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of March 31, 2018 and December 31, 2017 was $517,447 and $529,129, respectively. | ||||||||||
|
(g) |
Our subsidiary, PBFX Op Co, holds a 50% controlling interest in Torrance Valley Pipeline Company LLC ("TVPC"), with the other 50% interest in TVPC owned by TVP Holding Company LLC ("TVP Holding"), an indirect subsidiary of PBF Holding. PBFX Op Co is also the sole managing member of TVPC. We, through our ownership of PBFX Op Co, consolidate the financial results of TVPC, and record a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated statements of operations includes the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated balance sheets includes the portion of net assets of TVPC attributable to TVP Holding. | ||||||||||
|
(h) |
PBFX bases its calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during the period. The weighted-average number of common and subordinated units reflects the conversion of all outstanding subordinated units to common units on June 1, 2017. | ||||||||||
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-increases-quarterly-distribution-to-0-49-per-unit-and-announces-first-quarter-2018-earnings-results-300641754.html
SOURCE PBF Logistics LP
Article Date
5/3/2018PBF Logistics to Release First Quarter 2018 Earnings Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., March 28, 2018 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that it will release its earnings results for the first quarter 2018 on Thursday, May 3, 2018. The company will host a conference call and webcast regarding first quarter results and other business matters on Thursday, May 3, 2018, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (877) 876-9176 or (785) 424-1667, conference ID: PBFXQ118. The audio replay will be available two hours after the end of the call through May 17, 2018, by dialing (800) 839-1337 or (402) 220-0489.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-release-first-quarter-2018-earnings-results-300621331.html
SOURCE PBF Logistics LP
Article Date
3/28/2018PBF Energy to Release First Quarter 2018 Earnings Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., March 28, 2018 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that it will release its earnings results for the first quarter 2018 on Thursday, May 3, 2018. The company will host a conference call and webcast regarding first quarter results and other business matters on Thursday, May 3, 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 accessed by dialing (877) 876-9177 or (785) 424-1669, conference ID: PBFQ118. The audio replay will be available two hours after the end of the call through May 17, 2018, by dialing (800) 839-3013 or (402) 220-7233.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-to-release-first-quarter-2018-earnings-results-300621323.html
SOURCE PBF Energy Inc.
Article Date
3/28/2018PBF Energy to Attend the Scotia Howard Weil Energy Conference
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., March 23, 2018 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be attending the Scotia Howard Weil 2018 Energy Conference from March 25, to March 27, 2018, taking place in New Orleans, Louisiana.
Company presentation materials will be available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-to-attend-the-scotia-howard-weil-energy-conference-300618808.html
SOURCE PBF Energy Inc.
Article Date
3/23/2018PBF Logistics Announces Availability of 2017 K-1 Tax Packages
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., March 16, 2018 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announces availability of 2017 K-1 Tax Packages. The packages are available online and may be accessed at:
PBFX began mailing the 2017 tax packages to unitholders on March 14, 2018.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-announces-availability-of-2017-k-1-tax-packages-300615488.html
SOURCE PBF Logistics LP
Article Date
3/16/2018PBF Energy to Attend Bank of America Merrill Lynch Refining Conference
Source: PR Newswire
PARSIPPANY, N.J., March 5, 2018 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) announced today that the company's management will be participating in meetings with investors at the Bank of America Merrill Lynch 2018 Refining Conference on March 8, 2018 taking place in New York, New York.
Company presentation materials will be available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-to-attend-bank-of-america-merrill-lynch-refining-conference-300608503.html
SOURCE PBF Energy Inc.
Article Date
3/5/20182/23/2018 - PBF Logistics Filed 2017 Form 10-K
PBF Logistics Filed 2017 Form 10-K
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., Feb. 23, 2018 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K for the fiscal year ended December 31, 2017. The filing can be viewed on the Partnership's website at www.pbflogistics.com.
Upon written request, limited partners may receive, free of charge, a hard copy of the Partnership's Annual Report on Form 10-K (including complete audited financial statements). Requests should be communicated in writing to PBF Logistics LP, Attention: Investor Relations, at 1 Sylvan Way, 2nd Floor, Parsippany, New Jersey 07054.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-filed-2017-form-10-k-300603405.html
SOURCE PBF Logistics LP
Article Date
2/23/2018PBF Logistics Announces Multi-year Growth Initiatives, Increases Quarterly Cash Distribution to $0.4850 per Unit and Announces Fourth Quarter 2017 Earnings Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., Feb. 15, 2018 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") announced today fourth quarter 2017 net income attributable to the partners of $23.6 million, or $0.50 per common unit (net of IDRs). During the fourth quarter, the Partnership generated cash from operations of approximately $21.5 million, earnings before interest, income taxes, depreciation, and amortization (EBITDA) of $39.2 million and distributable cash flow of $28.5 million. Included in our depreciation and amortization expense for the fourth quarter is approximately $1.5 million, or $0.04 per common unit, of additional depreciation related to the capitalization of our 2017 growth projects. Included in our interest expense for the fourth quarter is approximately $2.0 million, or $0.05 per common unit, of additional interest related to our October $175.0 million bond offering.
For the year-ended December 31, 2017, the Partnership reported net income attributable to the partners of $100.4 million, or $2.17 per common unit (net of IDRs), and $152.1 million of EBITDA.
As of December 31, 2017, the Partnership had liquidity of $346.4 million, including $19.7 million in cash and cash equivalents and $326.7 million of capacity under its existing revolving credit facility.
"We are pleased to announce our multi-year organic growth plan in conjunction with our solid fourth quarter results. We have developed a robust pipeline of projects which we will implement over the next several years. We fully expect our organic growth to be augmented by third-party transactions and further drop-down acquisitions from our supportive sponsor," said PBF Logistics GP LLC Chief Executive Officer, Tom Nimbley. "To aid in the continued development of the Partnership, we believe that a disciplined and measured distribution growth strategy will, importantly, continue to reward unit-holders while simultaneously increasing distribution coverage and internally fund our growth," concluded Mr. Nimbley.
PBF Logistics Announces Multi-year Growth Initiative
The Partnership announces today a four-year organic growth plan comprised of more than $100 million of EBITDA to be contributed by a number of projects across the terminaling, storage and pipeline segments. The projects will focus on providing PBF Energy's refineries with access to crude oil and feedstocks and increasing product distribution channels. We expect these strategic projects to be supported by long-term commitments from our sponsor and other third-parties. Additionally, we expect to augment the organic growth of the Partnership through third-party acquisitions and further drop-down transactions with our sponsor.
PBF Logistics Announces Quarterly Distribution
The Board of Directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.4850 per unit. The distribution is payable on March 14, 2018, to unitholders of record at the close of business on February 28, 2018.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. EBITDA is a non-GAAP (U.S. Generally Accepted Accounting Principles) supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA should not be considered an alternative to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.
(1) Due to the forward-looking nature of forecasted EBITDA, information to reconcile forecasted EBITDA to forecasted earnings and cash flow from operating activities is not available as management is unable to project financing terms and working capital changes for future periods at this time.
Furthermore, this earnings release, and the discussion during the management conference call, may include references to non-GAAP financial measures including, but not limited to, EBITDA, EBITDA attributable to PBFX and Distributable Cash Flow. PBFX's management believes that non-GAAP financial measures provide useful information about the Partnership's operating performance, financial results and the amount of cash generated by the Partnership's operations and the amount available for distribution to its unitholders. 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. PBFX'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 financial measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
The Partnership's senior management will host a conference call and webcast regarding earnings results and other business matters on Thursday, February 15, 2018, at 11:00 a.m. ET. The call can also be heard by dialing (866) 342-8591 or (203) 518-9822, conference ID: PBFXQ417. The audio replay will be available two hours after the end of the call through March 1, 2018, by dialing (800) 283-7928 or (402) 220-0866. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets and other risks inherent in PBFX's business including but not limited to ability to consummate pending acquisitions, the timing for the closing of any such acquisition and our plans for financing any acquisition; unforeseen liabilities associated with any pending acquisition; inability to successfully integrate acquired assets or other acquired businesses or operations; effects of existing and future laws and governmental regulations, including environmental, health and safety regulations; and various other factors. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. PBFX assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present our results of operations, related operational information, and reconciliations of net income and net cash provided by operating activities to EBITDA and distributable cash flows (both as defined below) of PBFX for the three months and years ended December 31, 2017 and 2016. The financial information presented contains the financial results of PBFX, PNGPC (as defined below) prior to our acquisition on February 28, 2017 and the Torrance Valley Pipeline (as defined below) prior to our acquisition on August 31, 2016.
On April 17, 2017, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), acquired the Toledo, Ohio refined products terminal assets (the "Toledo Products Terminal") from Sunoco Logistics Partners L.P. (the "Toledo Products Terminal Acquisition"). The Toledo Products Terminal is directly connected to, and currently supplied by, PBF Holding Company LLC's ("PBF Holding") Toledo Refinery. The Toledo Products Terminal is comprised of a ten-bay truck rack and over 110,000 barrels of chemicals, clean product and additive storage capacity.
On February 28, 2017, our wholly-owned subsidiary, PBFX Operating Company LP ("PBFX Op Co"), acquired from PBF Energy Company LLC ("PBF LLC"), a subsidiary of PBF Energy Inc. ("PBF Energy"), all of the issued and outstanding limited liability company interests of Paulsboro Natural Gas Pipeline Company LLC ("PNGPC") (the "PNGPC Acquisition"). PNGPC owns and operates an existing interstate natural gas pipeline. In connection with the PNGPC Acquisition, we constructed a new 24" pipeline to replace the existing pipeline, which commenced services in August 2017 (the "Paulsboro Natural Gas Pipeline"). Concurrent with commencement of operations of the Paulsboro Natural Gas Pipeline, a new service agreement was entered into between PNGPC and Paulsboro Refining Company LLC ("PRC").
The PNGPC Acquisition was a transfer of assets between entities under common control. Accordingly, PBFX's financial information contained herein has been retrospectively adjusted to include the historical results of PNGPC for all periods presented. The results of PNGPC are included in our Transportation and Terminaling segment.
On February 15, 2017, PBF Holding and PBFX Op Co entered into a ten-year storage services agreement (the "Chalmette Storage Agreement") under which we, through PBFX Op Co, began providing storage services to PBF Holding, commencing on November 1, 2017, upon the completion of the construction of a new crude tank with a shell capacity of 625,000 barrels at PBF Holding's Chalmette Refinery (the "Chalmette Storage Tank"). PBFX Op Co and Chalmette Refining, L.L.C. ("Chalmette Refining") entered into a twenty-year lease for the premises upon which the tank is located (the "Lease") and a project management agreement pursuant to which Chalmette Refining managed the construction of the tank. The Lease can be extended by PBFX Op Co for two additional ten-year periods. Under the Chalmette Storage Agreement, we provide PBF Holding with storage services in return for storage fees. The storage services require us to accept, redeliver and store all products tendered by PBF Holding in the tank and PBF Holding pays a monthly fee of $0.60 per barrel of shell capacity. The Chalmette Storage Agreement can be extended by PBF Holding for two additional five-year periods.
On August 31, 2016, our wholly-owned subsidiary, PBFX Op Co, acquired a 50% equity interest in Torrance Valley Pipeline Company LLC ("TVPC") from PBF LLC (the "TVPC Acquisition"), with the other 50% equity interest continuing to be held by a subsidiary of PBF LLC, TVP Holding Company LLC ("TVP Holding"). TVPC owns the 189-mile San Joaquin Valley pipeline system (the "Torrance Valley Pipeline") with capacity of approximately 110,000 barrels per day ("bpd"), which supports PBF Holding's Torrance Refinery. The Torrance Valley Pipeline consists of the M55, M1 and M70 pipeline systems, including 11 pipeline stations with storage capacity and truck unloading capability at two of the stations. We consolidate the financial results of TVPC, and record a noncontrolling interest for the 50% economic interest in TVPC held by TVP Holding.
On April 29, 2016, our wholly-owned subsidiary, PLPT, purchased four refined product terminals (the "East Coast Terminals") from an affiliate of Plains All American Pipeline, L.P. (the "Plains Asset Purchase"). The East Coast Terminals have subsequently generated third-party revenues. Prior to the Plains Asset Purchase, we did not record third-party revenue for the periods presented.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before interest expense, income tax expense, depreciation and amortization expense. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense, income tax expense, depreciation and amortization expense attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less net cash paid for interest, maintenance capital expenditures and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is distributable cash flow divided by total distribution declared. EBITDA, EBITDA attributable to PBFX and distributable cash flow are not financial measures prescribed by U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX and distributable cash flow are not financial measures prescribed by GAAP ("non-GAAP"), they are supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA and EBITDA attributable to PBFX provides useful information to investors in assessing our financial condition and results of operations. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, as it provides investors with an enhanced perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
|
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||||||
|
Three months ended |
Year ended | |||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||
|
Revenue (a): |
||||||||||||||||
|
Affiliate |
$ |
63,738 |
$ |
57,092 |
$ |
240,654 |
$ |
175,448 |
||||||||
|
Third-party |
2,775 |
4,602 |
14,159 |
11,887 |
||||||||||||
|
Total revenue |
66,513 |
61,694 |
254,813 |
187,335 |
||||||||||||
|
Costs and expenses: |
||||||||||||||||
|
Operating and maintenance expenses (a) |
19,280 |
17,678 |
66,483 |
44,563 |
||||||||||||
|
General and administrative expenses |
3,337 |
3,071 |
16,284 |
16,967 |
||||||||||||
|
Depreciation and amortization |
7,159 |
5,440 |
23,831 |
14,983 |
||||||||||||
|
Total costs and expenses |
29,776 |
26,189 |
106,598 |
76,513 |
||||||||||||
|
Income from operations |
36,737 |
35,505 |
148,215 |
110,822 |
||||||||||||
|
Other expense: |
||||||||||||||||
|
Interest expense, net |
(9,382) |
(7,457) |
(31,875) |
(28,755) |
||||||||||||
|
Amortization of loan fees and debt premium |
(363) |
(417) |
(1,488) |
(1,678) |
||||||||||||
|
Net income |
26,992 |
27,631 |
114,852 |
80,389 |
||||||||||||
|
Less: Net loss attributable to Predecessor |
— |
(1,165) |
(150) |
(6,250) |
||||||||||||
|
Less: Net income attributable to noncontrolling interest (g) |
3,347 |
4,058 |
14,565 |
5,679 |
||||||||||||
|
Net income attributable to the partners |
23,645 |
24,738 |
100,437 |
80,960 |
||||||||||||
|
Less: Net income attributable to the IDR holder |
2,736 |
1,266 |
9,055 |
4,031 |
||||||||||||
|
Net income attributable to PBF Logistics LP unitholders |
$ |
20,909 |
$ |
23,472 |
$ |
91,382 |
$ |
76,929 |
||||||||
|
Net income per limited partner unit (h): |
||||||||||||||||
|
Common units - basic |
$ |
0.50 |
$ |
0.57 |
$ |
2.17 |
$ |
2.01 |
||||||||
|
Common units - diluted |
0.50 |
0.57 |
2.17 |
2.01 |
||||||||||||
|
Subordinated units - basic and diluted |
— |
0.57 |
2.15 |
2.01 |
||||||||||||
|
Weighted-average limited partner units outstanding (h): |
||||||||||||||||
|
Common units - basic |
42,123,770 |
25,843,839 |
35,505,446 |
22,288,118 |
||||||||||||
|
Common units - diluted |
42,185,666 |
25,993,145 |
35,568,760 |
22,338,784 |
||||||||||||
|
Subordinated units - basic and diluted |
— |
15,886,553 |
6,572,245 |
15,886,553 |
||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF LOGISTICS LP | |||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||
|
Year ended December 31, 2017 | |||||||||||||||
|
PBF |
PNGPC (1) |
Consolidated Results | |||||||||||||
|
Revenue: |
|||||||||||||||
|
Affiliate |
$ |
240,654 |
$ |
— |
$ |
240,654 |
|||||||||
|
Third-party |
14,159 |
— |
14,159 |
||||||||||||
|
Total revenue |
254,813 |
— |
254,813 |
||||||||||||
|
Costs and expenses: |
|||||||||||||||
|
Operating and maintenance expenses |
66,443 |
40 |
66,483 |
||||||||||||
|
General and administrative expenses |
16,284 |
— |
16,284 |
||||||||||||
|
Depreciation and amortization |
23,721 |
110 |
23,831 |
||||||||||||
|
Total costs and expenses |
106,448 |
150 |
106,598 |
||||||||||||
|
Income (loss) from operations |
148,365 |
(150) |
148,215 |
||||||||||||
|
Other expense: |
|||||||||||||||
|
Interest expense, net |
(31,875) |
— |
(31,875) |
||||||||||||
|
Amortization of loan fees and debt premium |
(1,488) |
— |
(1,488) |
||||||||||||
|
Net income (loss) |
115,002 |
(150) |
114,852 |
||||||||||||
|
Less: Net loss attributable to Predecessor |
— |
(150) |
(150) |
||||||||||||
|
Less: Net income attributable to noncontrolling interest (g) |
14,565 |
— |
14,565 |
||||||||||||
|
Net income attributable to the partners |
100,437 |
— |
100,437 |
||||||||||||
|
Less: Net income attributable to the IDR holder |
9,055 |
— |
9,055 |
||||||||||||
|
Net income attributable to PBF Logistics LP unitholders |
$ |
91,382 |
$ |
— |
$ |
91,382 |
|||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||
|
(1) Reflects the results of PNGPC prior to our acquisition on February 28, 2017. | |||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||
|
Three months ended December 31, 2016 | ||||||||||||||
|
PBF |
PNGPC (1) |
Consolidated Results | ||||||||||||
|
Revenue: |
||||||||||||||
|
Affiliate |
$ |
57,092 |
$ |
— |
$ |
57,092 |
||||||||
|
Third-party |
4,602 |
— |
4,602 |
|||||||||||
|
Total revenue |
61,694 |
— |
61,694 |
|||||||||||
|
Costs and expenses: |
||||||||||||||
|
Operating and maintenance expenses |
17,607 |
71 |
17,678 |
|||||||||||
|
General and administrative expenses |
3,069 |
2 |
3,071 |
|||||||||||
|
Depreciation and amortization |
5,234 |
206 |
5,440 |
|||||||||||
|
Total costs and expenses |
25,910 |
279 |
26,189 |
|||||||||||
|
Income (loss) from operations |
35,784 |
(279) |
35,505 |
|||||||||||
|
Other expense: |
||||||||||||||
|
Interest expense, net |
(7,457) |
— |
(7,457) |
|||||||||||
|
Amortization of loan fees |
(417) |
— |
(417) |
|||||||||||
|
Net income (loss) |
27,910 |
(279) |
27,631 |
|||||||||||
|
Less: Net loss attributable to Predecessor |
(886) |
(279) |
(1,165) |
|||||||||||
|
Less: Net income attributable to noncontrolling interest (g) |
4,058 |
— |
4,058 |
|||||||||||
|
Net income attributable to the partners |
24,738 |
— |
24,738 |
|||||||||||
|
Less: Net income attributable to the IDR holder |
1,266 |
— |
1,266 |
|||||||||||
|
Net income attributable to PBF Logistics LP unitholders |
$ |
23,472 |
$ |
— |
$ |
23,472 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||
|
(1) Reflects the results of PNGPC prior to our acquisition on February 28, 2017. | ||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||||
|
Year ended December 31, 2016 | ||||||||||||||||||
|
PBF |
PNGPC (1) |
Torrance |
Consolidated | |||||||||||||||
|
Revenue: |
||||||||||||||||||
|
Affiliate |
$ |
175,448 |
$ |
— |
$ |
— |
$ |
175,448 |
||||||||||
|
Third-party |
11,887 |
— |
— |
11,887 |
||||||||||||||
|
Total revenue |
187,335 |
— |
— |
187,335 |
||||||||||||||
|
Costs and expenses: |
||||||||||||||||||
|
Operating and maintenance expenses |
41,317 |
401 |
2,845 |
44,563 |
||||||||||||||
|
General and administrative expenses |
16,609 |
5 |
353 |
16,967 |
||||||||||||||
|
Depreciation and amortization |
12,337 |
827 |
1,819 |
14,983 |
||||||||||||||
|
Total costs and expenses |
70,263 |
1,233 |
5,017 |
76,513 |
||||||||||||||
|
Income (loss) from operations |
117,072 |
(1,233) |
(5,017) |
110,822 |
||||||||||||||
|
Other expense: |
||||||||||||||||||
|
Interest expense, net |
(28,755) |
— |
— |
(28,755) |
||||||||||||||
|
Amortization of loan fees |
(1,678) |
— |
— |
(1,678) |
||||||||||||||
|
Net income (loss) |
86,639 |
(1,233) |
(5,017) |
80,389 |
||||||||||||||
|
Less: Net loss attributable to Predecessor |
— |
(1,233) |
(5,017) |
(6,250) |
||||||||||||||
|
Less: Net income attributable to noncontrolling interest (g) |
5,679 |
— |
— |
5,679 |
||||||||||||||
|
Net income attributable to the partners |
80,960 |
— |
— |
80,960 |
||||||||||||||
|
Less: Net income attributable to the IDR holder |
4,031 |
— |
— |
4,031 |
||||||||||||||
|
Net income attributable to PBF Logistics LP unitholders |
$ |
76,929 |
$ |
— |
$ |
— |
$ |
76,929 |
||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||
|
(1) Reflects the results of PNGPC prior to our acquisition on February 28, 2017. | ||||||||||||||||||
|
(2) Reflects the results of TVPC for the period from July 1, 2016 (the date on which PBF Energy acquired the Torrance Valley Pipeline) through August 31, 2016 (our acquisition date). | ||||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three months ended |
Year ended | |||||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||||||
|
Transportation and Terminaling Segment |
||||||||||||||||||||
|
Terminals |
||||||||||||||||||||
|
Total throughput (bpd) (b)(d) |
210,334 |
167,028 |
204,833 |
164,210 |
||||||||||||||||
|
Lease tank capacity (average lease capacity barrels per |
1,935,033 |
1,979,133 |
2,089,529 |
2,023,304 |
||||||||||||||||
|
Pipelines |
||||||||||||||||||||
|
Total throughput (bpd) (b)(d) |
158,339 |
153,033 |
140,900 |
149,831 |
||||||||||||||||
|
Lease tank capacity (average lease capacity barrels per month) |
1,603,474 |
1,427,922 |
1,250,930 |
1,439,846 |
||||||||||||||||
|
Storage Segment |
||||||||||||||||||||
|
Storage capacity reserved (average shell capacity barrels per month) |
4,376,698 |
3,656,833 |
4,363,630 |
3,635,236 |
||||||||||||||||
|
Cash Flow Information: |
||||||||||||||||||||
|
Net cash provided by (used in): |
||||||||||||||||||||
|
Operating activities |
$ |
21,480 |
$ |
30,927 |
$ |
142,445 |
$ |
99,212 |
||||||||||||
|
Investing activities |
(18,098) |
5,032 |
(49,515) |
72,893 |
||||||||||||||||
|
Financing activities |
(23,138) |
(16,009) |
(137,487) |
(126,562) |
||||||||||||||||
|
Net change in cash |
$ |
(19,756) |
$ |
19,950 |
$ |
(44,557) |
$ |
45,543 |
||||||||||||
|
Other Financial Information: |
||||||||||||||||||||
|
EBITDA attributable to PBFX (c) |
$ |
39,190 |
$ |
36,436 |
$ |
152,084 |
$ |
121,911 |
||||||||||||
|
Distributable cash flow (c) |
$ |
28,541 |
$ |
27,949 |
$ |
119,783 |
$ |
94,507 |
||||||||||||
|
Quarterly distribution declared per unit (e) |
$ |
0.4850 |
$ |
0.4500 |
$ |
1.8950 |
$ |
1.7400 |
||||||||||||
|
Distribution (e): |
||||||||||||||||||||
|
Common units |
$ |
20,634 |
$ |
11,884 |
$ |
73,322 |
$ |
42,232 |
||||||||||||
|
Subordinated units - PBF LLC |
— |
7,149 |
7,308 |
27,642 |
||||||||||||||||
|
IDR holder - PBF LLC |
2,736 |
1,266 |
9,055 |
4,031 |
||||||||||||||||
|
Total distribution |
$ |
23,370 |
$ |
20,299 |
$ |
89,685 |
$ |
73,905 |
||||||||||||
|
Coverage ratio (c) |
1.22x |
1.38x |
1.34x |
1.28x | ||||||||||||||||
|
Capital expenditures, including acquisitions |
$ |
18,098 |
$ |
14,935 |
$ |
89,539 |
$ |
121,351 |
||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||
|
(Unaudited, in thousands) | ||||||||||||
|
December 31, |
December 31, | |||||||||||
|
Balance Sheet Information: |
2017 |
2016 | ||||||||||
|
Cash, cash equivalents and marketable securities (f) |
$ |
19,664 |
$ |
104,245 |
||||||||
|
Property, plant and equipment, net |
673,823 |
608,802 |
||||||||||
|
Total assets |
737,550 |
756,861 |
||||||||||
|
Total debt (f) |
548,793 |
571,675 |
||||||||||
|
Total liabilities |
580,455 |
604,290 |
||||||||||
|
Partners' equity |
(14,808) |
(27,311) |
||||||||||
|
Noncontrolling interest (g) |
171,903 |
179,882 |
||||||||||
|
Total liabilities and equity |
737,550 |
756,861 |
||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
PBF LOGISTICS LP | |||||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||
|
TO EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||||||
|
Three months ended |
Year ended | ||||||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||||||||
|
Reconciliation of net income to EBITDA and distributable cash flow (c): |
|||||||||||||||||||||
|
Net income |
$ |
26,992 |
$ |
27,631 |
$ |
114,852 |
$ |
80,389 |
|||||||||||||
|
Interest expense, net |
9,382 |
7,457 |
31,875 |
28,755 |
|||||||||||||||||
|
Amortization of loan fees and debt premium |
363 |
417 |
1,488 |
1,678 |
|||||||||||||||||
|
Depreciation and amortization |
7,159 |
5,440 |
23,831 |
14,983 |
|||||||||||||||||
|
EBITDA |
43,896 |
40,945 |
172,046 |
125,805 |
|||||||||||||||||
|
Less: Predecessor EBITDA |
— |
(922) |
(40) |
(3,604) |
|||||||||||||||||
|
Less: Noncontrolling interest EBITDA (g) |
4,706 |
5,431 |
20,002 |
7,498 |
|||||||||||||||||
|
EBITDA attributable to PBFX |
39,190 |
36,436 |
152,084 |
121,911 |
|||||||||||||||||
|
Non-cash unit-based compensation expense |
830 |
687 |
5,345 |
4,360 |
|||||||||||||||||
|
Cash interest |
(9,428) |
(7,546) |
(33,050) |
(28,844) |
|||||||||||||||||
|
Maintenance capital expenditures |
(2,051) |
(1,628) |
(4,596) |
(2,920) |
|||||||||||||||||
|
Distributable cash flow |
$ |
28,541 |
$ |
27,949 |
$ |
119,783 |
$ |
94,507 |
|||||||||||||
|
Reconciliation of net cash provided by operating activities to EBITDA and distributable cash flow (c): |
|||||||||||||||||||||
|
Net cash provided by operating activities |
$ |
21,480 |
$ |
30,927 |
$ |
142,445 |
$ |
99,212 |
|||||||||||||
|
Change in operating assets and liabilities |
13,864 |
3,248 |
3,071 |
2,198 |
|||||||||||||||||
|
Interest expense, net |
9,382 |
7,457 |
31,875 |
28,755 |
|||||||||||||||||
|
Non-cash unit-based compensation expense |
(830) |
(687) |
(5,345) |
(4,360) |
|||||||||||||||||
|
EBITDA |
43,896 |
40,945 |
172,046 |
125,805 |
|||||||||||||||||
|
Less: Predecessor EBITDA |
— |
(922) |
(40) |
(3,604) |
|||||||||||||||||
|
Less: Noncontrolling interest EBITDA (g) |
4,706 |
5,431 |
20,002 |
7,498 |
|||||||||||||||||
|
EBITDA attributable to PBFX |
39,190 |
36,436 |
152,084 |
121,911 |
|||||||||||||||||
|
Non-cash unit-based compensation expense |
830 |
687 |
5,345 |
4,360 |
|||||||||||||||||
|
Cash interest |
(9,428) |
(7,546) |
(33,050) |
(28,844) |
|||||||||||||||||
|
Maintenance capital expenditures |
(2,051) |
(1,628) |
(4,596) |
(2,920) |
|||||||||||||||||
|
Distributable cash flow |
$ |
28,541 |
$ |
27,949 |
$ |
119,783 |
$ |
94,507 |
|||||||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||
|
Three months ended December 31, 2017 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total revenue (a) |
$ |
60,114 |
$ |
6,399 |
$ |
— |
$ |
66,513 |
||||||||
|
Depreciation and amortization expense |
6,247 |
912 |
— |
7,159 |
||||||||||||
|
Income (loss) from operations |
36,689 |
3,385 |
(3,337) |
36,737 |
||||||||||||
|
Interest expense, net and amortization of |
— |
— |
9,745 |
9,745 |
||||||||||||
|
Capital expenditures |
1,804 |
16,294 |
— |
18,098 |
||||||||||||
|
Three months ended December 31, 2016 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total revenue (a) |
$ |
56,209 |
$ |
5,485 |
$ |
— |
$ |
61,694 |
||||||||
|
Depreciation and amortization expense |
4,842 |
598 |
— |
5,440 |
||||||||||||
|
Income (loss) from operations |
35,631 |
2,945 |
(3,071) |
35,505 |
||||||||||||
|
Interest expense, net and amortization of loan fees and debt premium |
— |
— |
7,874 |
7,874 |
||||||||||||
|
Capital expenditures |
13,468 |
1,467 |
— |
14,935 |
||||||||||||
|
Year ended December 31, 2017 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total revenue (a) |
$ |
231,563 |
$ |
23,250 |
$ |
— |
$ |
254,813 |
||||||||
|
Depreciation and amortization expense |
21,077 |
2,754 |
— |
23,831 |
||||||||||||
|
Income (loss) from operations |
151,639 |
12,860 |
(16,284) |
148,215 |
||||||||||||
|
Interest expense, net and amortization of loan fees and debt premium |
— |
— |
33,363 |
33,363 |
||||||||||||
|
Capital expenditures |
58,400 |
31,139 |
— |
89,539 |
||||||||||||
|
Year ended December 31, 2016 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total revenue (a) |
$ |
165,524 |
$ |
21,811 |
$ |
— |
$ |
187,335 |
||||||||
|
Depreciation and amortization expense |
12,555 |
2,428 |
— |
14,983 |
||||||||||||
|
Income (loss) from operations |
117,094 |
10,695 |
(16,967) |
110,822 |
||||||||||||
|
Interest expense, net and amortization of |
— |
— |
30,433 |
30,433 |
||||||||||||
|
Capital expenditures |
118,592 |
2,759 |
— |
121,351 |
||||||||||||
|
Balance at December 31, 2017 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total assets |
$ |
639,310 |
$ |
86,760 |
$ |
11,480 |
$ |
737,550 |
||||||||
|
Balance at December 31, 2016 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total assets |
$ |
606,898 |
$ |
57,375 |
$ |
92,588 |
$ |
756,861 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF LOGISTICS LP | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
|
(Unaudited, in thousands, except per unit data) | |||||||||||
|
(a) |
See discussion of the factors affecting comparability noted on page 4. Our results of operations may not be comparable to the historical results of operations for the reasons described below: . | ||||||||||
|
(b) |
Calculated as the sum of the average throughput per day for each asset group for the period presented. | ||||||||||
|
(c) |
See "Non-GAAP Financial Measures" on page 5 for a definition of EBITDA, EBITDA attributable to PBFX, distributable cash flow and coverage ratio. | ||||||||||
|
(d) |
Operating information pertains to assets which are included in our Transportation and Terminaling segment. Throughput information reflects activity subsequent to execution of the commercial agreements in connection with the acquisitions of the Toledo Products Terminal, the Paulsboro Natural Gas Pipeline and the Torrance Valley Pipeline and activity subsequent to the Plains Asset Purchase. | ||||||||||
|
(e) |
On February 15, 2018, we declared a quarterly cash distribution of $0.4850 per common unit for the fourth quarter of 2017. | ||||||||||
|
(f) |
Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents and marketable securities from total debt. We believe this measurement is 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. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of December 31, 2017 and 2016 was $529,129 and $467,430, respectively. | ||||||||||
|
(g) |
Our wholly-owned subsidiary, PBFX Op Co, holds a 50% controlling interest in TVPC, with the other 50% interest in TVPC owned by TVP Holding, an indirect subsidiary of PBF Holding. PBFX Op Co is also the sole managing member of TVPC. We, through our ownership of PBFX Op Co, consolidate the financial results of TVPC and record a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the consolidated statements of operations includes the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the consolidated balance sheets includes the portion of net assets of TVPC attributable to TVP Holding. | ||||||||||
|
(h) |
PBFX bases its calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during the period. The weighted-average number of common and subordinated units reflects the conversion of all of the outstanding subordinated units on a one-to-one basis to common units on June 1, 2017. | ||||||||||
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-announces-multi-year-growth-initiatives-increases-quarterly-cash-distribution-to-04850-per-unit-and-announces-fourth-quarter-2017-earnings-results-300599256.html
SOURCE PBF Logistics LP
Article Date
2/15/2018PBF Energy Reports Fourth Quarter 2017 Results, Declares Dividend of $0.30 Per Share
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
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- |
||||||||||||||||||||
|
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 |
$ |
per barrel of |
$ |
per barrel of | |||||||||||||||||
|
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 |
$ |
per barrel of |
$ |
per barrel of | |||||||||||||||||
|
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 |
$ |
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. | ||||||||||||||||||||||
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-reports-fourth-quarter-2017-results-declares-dividend-of-030-per-share-300599280.html
SOURCE PBF Energy Inc.
Article Date
2/15/2018PBF Logistics to Release Fourth Quarter 2017 Earnings Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., Jan. 12, 2018 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that it will release its earnings results for the fourth quarter 2017 on Thursday, February 15, 2018. The company will host a conference call and webcast regarding fourth quarter results and other business matters on Thursday, February 15, 2018, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (866) 342-8591 or (203) 518-9822, conference ID: PBFXQ417. The audio replay will be available two hours after the end of the call through March 1, 2018, by dialing (800) 283-7928 or (402) 220-0866.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-release-fourth-quarter-2017-earnings-results-300582224.html
SOURCE PBF Logistics LP
Article Date
1/12/2018PBF Energy to Release Fourth Quarter 2017 Earnings Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., Jan. 12, 2018 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that it will release its earnings results for the fourth quarter 2017 on Thursday, February 15, 2018. The company will host a conference call and webcast regarding fourth quarter 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 accessed 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.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-to-release-fourth-quarter-2017-earnings-results-300582219.html
SOURCE PBF Energy Inc.
Article Date
1/12/2018PBF Logistics to Attend UBS MLP One-on-One Conference
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., Jan. 5, 2018 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that the partnership's management will be participating in meetings with institutional investors at the UBS MLP One-on-One Conference to be held in Park City, Utah, from January 8 to January 10, 2018.
The company's meeting materials will be available on the Investor Relations section of the PBF Logistics LP website at www.pbflogistics.com.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-attend-ubs-mlp-one-on-one-conference-300576412.html
SOURCE PBF Logistics LP
Article Date
1/5/201812/28/2017 - PBF Energy to Attend Industry Conferences
PBF Energy to Attend Industry Conferences
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., Dec. 28, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) announced today that the company's management will be participating in meetings with investors at the Wolfe Research Refining Conference on January 3, 2018 taking place in Boston, Massachusetts and the Goldman Sachs Global Energy Conference on January 10, 2016 taking place in Miami, Florida.
The company's presentation will be available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-to-attend-industry-conferences-300574976.html
SOURCE PBF Energy Inc.
Article Date
12/28/2017PBF Energy Announces Election of George E. Ogden as Director
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., Dec, 8, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced that George E. Ogden has been elected as an independent director effective January 1, 2018.
Thomas J. Nimbley, PBF's Chairman of the Board and CEO, commented, "We are very pleased to have George join PBF's Board of Directors. George has over 45 years of experience in the energy sector, with substantial experience in independent refining and will be a valued contributor to the PBF Energy Board."
From January 1999 to the present, Mr. Ogden served as an independent refining and marketing consultant for energy and investment companies. Previously he was a Senior Vice President of Tosco from 1992 to 1999, where he was responsible for mergers, acquisitions and divestments and general corporate planning, and prior to that Mr. Ogden held various positions at Tosco, Occidental Petroleum and the Mobil Oil Corporation in business development, refinery operations, planning and economics and as a refinery engineer. Mr. Ogden is presently a director of PBF Logistics LP, where he is a member of the Audit Committee.
Forward-Looking Statements
This press release includes certain statements that may constitute forward-looking statements. Such forward-looking statements are subject to the general risks inherent in our business and are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. Our expectations may or may not be realized or may be based upon assumptions or judgments that prove to be incorrect. Additional information relating to the uncertainties and other factors that can affect our business and future results are discussed in the "Risk Factors" section or other sections in our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by us from time to time with the Securities and Exchange Commission. The forward-looking statements are only as of the date made, and we undertake no obligation to (and expressly disclaim any obligation to) update or revise any forward-looking statement to reflect new information or events, other than as required by 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).
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-announces-election-of-george-e-ogden-as-director-300568689.html
SOURCE PBF Energy Inc.
Article Date
12/8/201711/20/2017 - PBF Holding Company LLC Announces Extension of Exchange Offer for 7.25% Senior Notes Due 2025
PBF Holding Company LLC Announces Extension of Exchange Offer for 7.25% Senior Notes Due 2025
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., Nov. 20, 2017 /PRNewswire/ -- PBF Holding Company LLC announced today that it has extended the deadline with respect to its offer to exchange $725,000,000 of its 7.25% Senior Notes due 2025 (new notes), which have been registered under the Securities Act of 1933 (Securities Act), for $725,000,000 of its issued and outstanding 7.25% Senior Notes due 2025, which are not registered under the Securities Act (old notes). As a result of the extension, the exchange offer is now scheduled to expire at 5:00 p.m., New York City time, on December 4, 2017, unless further extended.
The exchange offer was scheduled to expire on November 21, 2017 at 12:00 a.m. midnight, New York City time. As of 3:00 p.m., New York City time, on November 20, 2017, approximately $384,733,000 in aggregate principal amount, or 53.07%, of the old notes had been validly tendered and not withdrawn. Except for the extension of the expiration date, all of the other terms of the exchange offer remain as set forth in the exchange offer prospectus, dated October 18, 2017, filed with the U.S. Securities and Exchange Commission, and the related letter of transmittal.
This press release is not an offer to exchange the new notes for the old notes or the solicitation of an offer to exchange, which we are making only through the exchange offer prospectus.
For copies of the exchange offer documents or additional information, please contact the Exchange Agent, Deutsche Bank Trust Company Americas, at:
c/o DB Services Americas, Inc.
Attn: Reorg Dept
5022 Gate Parkway, Suite 200
Jacksonville, FL 32256
Tel: (877) 843-9767
About PBF Holding Company LLC
PBF Holding Company LLC is an indirect subsidiary of PBF Energy Inc. (NYSE: PBF), 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).
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-holding-company-llc-announces-extension-of-exchange-offer-for-725-senior-notes-due-2025-300559667.html
SOURCE PBF Holding Company LLC
Article Date
11/20/2017PBF Logistics Increases Quarterly Distribution to $0.48 per Unit and Announces Third Quarter 2017 Earnings Results
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., Nov. 2, 2017 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") today announced third quarter 2017 net income attributable to the partners of $28.9 million, or $0.63 per common unit. During the quarter, the Partnership generated cash from operations of approximately $30.3 million, earnings before interest, income taxes, depreciation, and amortization ("EBITDA") of $40.9 million and distributable cash flow of $32.2 million.
"Our third quarter performance reflects another solid operational quarter from our expanding asset base. We completed the Paulsboro natural gas pipeline in August and the Chalmette storage tank will be in service by the middle of the fourth quarter," said PBF Logistics GP LLC Chief Executive Officer, Tom Nimbley. "Our business development efforts continue to generate a number of promising organic projects and a robust third-party acquisition pipeline. We are focusing on opportunities that can be funded organically and with existing liquidity. In light of our continued growth, through both acquisitions and organic projects, we are pleased that the board of directors approved our twelfth consecutive quarterly distribution increase to $0.48 per common unit."
As of September 30, 2017, the Partnership had approximately $206.6 million of liquidity, including approximately $39.4 million in cash and cash equivalents, and access to approximately $167.2 million under its existing revolving credit facility. Following the senior notes offering in October, and the subsequent use of proceeds, our revolving credit facility availability increased to $346.7 million. The Partnership intends to use its financial resources to fund organic growth projects, third-party acquisitions and future drop-downs.
PBF Logistics Announces Increased Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.48 per common unit. The distribution is payable on November 29, 2017, to unitholders of record at the close of business on November 13, 2017.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Senior Notes Offering
On October 3, PBF Logistics LP successfully launched and priced $175.0 million in aggregate principal amount of additional 6.875% Senior Notes due 2023 (the "notes"). Due to market demands, the offering was increased by $25.0 million over the aggregate principal amount originally announced. The notes were issued to the public at an offering price of 102% of the principal amount thereof, plus accrued interest from May 15, 2017. The net proceeds from the offering were used to repay a portion of the indebtedness outstanding under the Partnership's revolving credit facility and for general partnership purposes. Additional information on the Partnership and notes can be found in the Partnerships' filings with the Securities and Exchange Commission.
Non-GAAP Financial Measures
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA should not be considered an alternative to net income, income from operations, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important limitations as an analytical tool because it excludes some, but not all, items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.
Conference Call Information
The Partnership's senior management will host a conference call and webcast regarding quarterly results and other business matters on Thursday, November 2, 2017, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be heard by dialing (866) 342-8591 or (203) 518-9822, conference ID: PBFXQ317. The audio replay will be available two hours after the end of the call through November 16, 2017, by dialing (800) 283-4641 or (402) 220-0851.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including the Annual Report on Form 10-K. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present our results of operations, related operational information, and reconciliations of net income and net cash provided by operating activity to EBITDA and distributable cash flow (both as defined below) of PBFX for the three and nine months ended September 30, 2017 and 2016. The financial information presented contains the financial results of PBFX and PNGPC (as defined below) prior to our acquisition on February 28, 2017.
On April 17, 2017, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), acquired the Toledo, Ohio refined products terminal assets (the "Toledo Terminal") from Sunoco Logistics Partners L.P. (the "Toledo Terminal Acquisition"). The Toledo Terminal is directly connected to, and currently supplied by, PBF Holding Company LLC's ("PBF Holding") Toledo Refinery. The Toledo Terminal is comprised of a ten-bay truck rack and over 110,000 barrels of chemicals, clean product and additive storage capacity.
On February 28, 2017, our wholly-owned subsidiary, PBFX Operating Company LP ("PBFX Op Co"), acquired from PBF Energy Company LLC ("PBF LLC"), a subsidiary of PBF Energy Inc. ("PBF Energy") all of the issued and outstanding limited liability company interests of Paulsboro Natural Gas Pipeline Company LLC ("PNGPC") (the "PNGPC Acquisition"). PNGPC owns and operates an existing interstate natural gas pipeline which serves PBF Holding's Paulsboro Refinery (the "Paulsboro Natural Gas Pipeline") and is subject to regulation by the Federal Energy Regulatory Commission ("FERC"). In connection with the PNGPC Acquisition, we constructed a new 24" pipeline (the "New Pipeline") to replace the existing pipeline, which commenced services in August 2017. Concurrent with commencement of operations, a new service agreement was entered into between PNGPC and Paulsboro Refining Company LLC ("PRC") in regards to the New Pipeline.
The PNGPC Acquisition was a transfer between entities under common control. Accordingly, PBFX's financial information contained herein has been retrospectively adjusted to include the historical results of PNGPC for all periods presented. The results of PNGPC are included in the Transportation and Terminaling segment.
On August 31, 2016, PBFX Op Co acquired from PBF LLC a 50% equity interest in Torrance Valley Pipeline Company LLC ("TVPC"), with the other 50% equity interest continuing to be held by a subsidiary of PBF LLC, TVP Holding Company LLC ("TVP Holding") (the "TVPC Acquisition"). TVPC owns the 189-mile San Joaquin Valley pipeline system with capacity of approximately 110,000 barrels per day ("bpd") (the "Torrance Valley Pipeline"), which supports PBF Holding's Torrance Refinery. The Torrance Valley Pipeline consists of the M55, M1 and M70 pipeline systems, including 11 pipeline stations with storage capacity and truck unloading capability at two of the stations. We consolidate the financial results of TVPC, and record a noncontrolling interest for the 50% economic interest in TVPC held by TVP Holding.
On April 29, 2016, our wholly-owned subsidiary, PLPT, purchased four refined product terminals (the "East Coast Terminals") from an affiliate of Plains All American Pipeline, L.P. (the "Plains Asset Purchase"). The East Coast Terminals have subsequently generated third-party revenues. Prior to the Plains Asset Purchase, we did not record third-party revenue, except for third-party revenue generated by the Delaware City Products Pipeline prior to August 2013.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense, income tax expense, depreciation and amortization expense attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less net cash paid for interest, maintenance capital expenditures and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is distributable cash flow divided by total distribution declared. EBITDA, EBITDA attributable to PBFX and distributable cash flow are not financial measures prescribed by U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX and distributable cash flow are not financial measures prescribed by GAAP ("non-GAAP"), they are supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA and EBITDA attributable to PBFX provides useful information to investors in assessing our financial condition and results of operations. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, as it provides investors with an enhanced perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX and distributable cash flow have important limitations as analytical tools because they exclude some, but not all, items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
|
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||||||
|
2017 |
2016* |
2017 |
2016* | |||||||||||||
|
Revenue (a): |
||||||||||||||||
|
Affiliate |
$ |
62,359 |
$ |
43,842 |
$ |
176,916 |
$ |
118,356 |
||||||||
|
Third-party |
3,135 |
4,591 |
11,384 |
7,285 |
||||||||||||
|
Total revenue |
65,494 |
48,433 |
188,300 |
125,641 |
||||||||||||
|
Costs and expenses: |
||||||||||||||||
|
Operating and maintenance expenses (a) |
15,930 |
12,903 |
47,203 |
26,885 |
||||||||||||
|
General and administrative expenses |
3,534 |
4,420 |
12,947 |
13,896 |
||||||||||||
|
Depreciation and amortization |
5,610 |
5,347 |
16,672 |
9,543 |
||||||||||||
|
Total costs and expenses |
25,074 |
22,670 |
76,822 |
50,324 |
||||||||||||
|
Income from operations |
40,420 |
25,763 |
111,478 |
75,317 |
||||||||||||
|
Other expense: |
||||||||||||||||
|
Interest expense, net |
(7,416) |
(7,280) |
(22,493) |
(21,298) |
||||||||||||
|
Amortization of loan fees |
(332) |
(416) |
(1,125) |
(1,261) |
||||||||||||
|
Net income |
32,672 |
18,067 |
87,860 |
52,758 |
||||||||||||
|
Less: Net loss attributable to Predecessor |
— |
(4,428) |
(150) |
(5,085) |
||||||||||||
|
Less: Net income attributable to |
3,799 |
1,621 |
11,218 |
1,621 |
||||||||||||
|
Net income attributable to the partners |
28,873 |
20,874 |
76,792 |
56,222 |
||||||||||||
|
Less: Net income attributable to the IDR |
2,526 |
1,125 |
6,319 |
2,765 |
||||||||||||
|
Net income attributable to PBF Logistics LP |
$ |
26,347 |
$ |
19,749 |
$ |
70,473 |
$ |
53,457 |
||||||||
|
Net income per limited partner unit (h): |
||||||||||||||||
|
Common units - basic |
$ |
0.63 |
$ |
0.50 |
$ |
1.69 |
$ |
1.44 |
||||||||
|
Common units - diluted |
0.63 |
0.50 |
1.69 |
1.44 |
||||||||||||
|
Subordinated units - basic and diluted |
— |
0.50 |
1.61 |
1.45 |
||||||||||||
|
Weighted-average limited partner units |
||||||||||||||||
|
Common units - basic |
42,127,288 |
23,492,796 |
33,280,957 |
21,094,154 |
||||||||||||
|
Common units - diluted |
42,161,008 |
23,571,691 |
33,309,555 |
21,103,919 |
||||||||||||
|
Subordinated units - basic and diluted |
— |
15,886,553 |
8,787,068 |
15,886,553 |
||||||||||||
|
Cash distributions declared per unit (e) |
$ |
0.48 |
$ |
0.44 |
$ |
1.41 |
$ |
1.29 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
____________ | ||||||||||||||||
|
* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition on February 28, 2017. | ||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
|
(Unaudited, in thousands) | ||||||||||||
|
Nine Months Ended September 30, 2017 | ||||||||||||
|
PBF Logistics LP |
PNGPC* |
Consolidated | ||||||||||
|
Revenue: |
||||||||||||
|
Affiliate |
$ |
176,916 |
$ |
— |
$ |
176,916 |
||||||
|
Third-party |
11,384 |
— |
11,384 |
|||||||||
|
Total revenue |
188,300 |
— |
188,300 |
|||||||||
|
Costs and expenses: |
||||||||||||
|
Operating and maintenance expenses |
47,163 |
40 |
47,203 |
|||||||||
|
General and administrative expenses |
12,947 |
— |
12,947 |
|||||||||
|
Depreciation and amortization |
16,562 |
110 |
16,672 |
|||||||||
|
Total costs and expenses |
76,672 |
150 |
76,822 |
|||||||||
|
Income (loss) from operations |
111,628 |
(150) |
111,478 |
|||||||||
|
Other expense: |
||||||||||||
|
Interest expense, net |
(22,493) |
— |
(22,493) |
|||||||||
|
Amortization of loan fees |
(1,125) |
— |
(1,125) |
|||||||||
|
Net income (loss) |
88,010 |
(150) |
87,860 |
|||||||||
|
Less: Net loss attributable to Predecessor |
— |
(150) |
(150) |
|||||||||
|
Less: Net income attributable to noncontrolling interest (g) |
11,218 |
— |
11,218 |
|||||||||
|
Net income attributable to the partners |
76,792 |
— |
76,792 |
|||||||||
|
Less: Net income attributable to the IDR holder |
6,319 |
— |
6,319 |
|||||||||
|
Net income attributable to PBF Logistics LP unitholders |
$ |
70,473 |
$ |
— |
$ |
70,473 |
||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
____________ | ||||||||||||
|
* Reflects the results of PNGPC prior to our acquisition on February 28, 2017. | ||||||||||||
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
|
(Unaudited, in thousands) | ||||||||||||
|
Three Months Ended September 30, 2016 | ||||||||||||
|
PBF Logistics LP |
PNGPC* |
Consolidated | ||||||||||
|
Revenue: |
||||||||||||
|
Affiliate |
$ |
43,842 |
$ |
— |
$ |
43,842 |
||||||
|
Third-party |
4,591 |
— |
4,591 |
|||||||||
|
Total revenue |
48,433 |
— |
48,433 |
|||||||||
|
Costs and expenses: |
||||||||||||
|
Operating and maintenance expenses |
12,814 |
89 |
12,903 |
|||||||||
|
General and administrative expenses |
4,419 |
1 |
4,420 |
|||||||||
|
Depreciation and amortization |
5,140 |
207 |
5,347 |
|||||||||
|
Total costs and expenses |
22,373 |
297 |
22,670 |
|||||||||
|
Income (loss) from operations |
26,060 |
(297) |
25,763 |
|||||||||
|
Other expense: |
||||||||||||
|
Interest expense, net |
(7,280) |
— |
(7,280) |
|||||||||
|
Amortization of loan fees |
(416) |
— |
(416) |
|||||||||
|
Net income (loss) |
18,364 |
(297) |
18,067 |
|||||||||
|
Less: Net loss attributable to Predecessor |
(4,131) |
(297) |
(4,428) |
|||||||||
|
Less: Net income attributable to noncontrolling interest (g) |
1,621 |
— |
1,621 |
|||||||||
|
Net income attributable to the partners |
20,874 |
— |
20,874 |
|||||||||
|
Less: Net income attributable to the IDR holder |
1,125 |
— |
1,125 |
|||||||||
|
Net income attributable to PBF Logistics LP unitholders |
$ |
19,749 |
$ |
— |
$ |
19,749 |
||||||
|
____________ | ||||||||||||
|
* Reflects the results of PNGPC prior to our acquisition on February 28, 2017. | ||||||||||||
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
|
(Unaudited, in thousands) | ||||||||||||
|
Nine Months Ended September 30, 2016 | ||||||||||||
|
PBF Logistics LP |
PNGPC* |
Consolidated | ||||||||||
|
Revenue: |
||||||||||||
|
Affiliate |
$ |
118,356 |
$ |
— |
$ |
118,356 |
||||||
|
Third-party |
7,285 |
— |
7,285 |
|||||||||
|
Total revenue |
125,641 |
— |
125,641 |
|||||||||
|
Costs and expenses: |
||||||||||||
|
Operating and maintenance expenses |
26,555 |
330 |
26,885 |
|||||||||
|
General and administrative expenses |
13,893 |
3 |
13,896 |
|||||||||
|
Depreciation and amortization |
8,922 |
621 |
9,543 |
|||||||||
|
Total costs and expenses |
49,370 |
954 |
50,324 |
|||||||||
|
Income (loss) from operations |
76,271 |
(954) |
75,317 |
|||||||||
|
Other expense: |
||||||||||||
|
Interest expense, net |
(21,298) |
— |
(21,298) |
|||||||||
|
Amortization of loan fees |
(1,261) |
— |
(1,261) |
|||||||||
|
Net income (loss) |
53,712 |
(954) |
52,758 |
|||||||||
|
Less: Net loss attributable to Predecessor |
(4,131) |
(954) |
(5,085) |
|||||||||
|
Less: Net income attributable to noncontrolling interest (g) |
1,621 |
— |
1,621 |
|||||||||
|
Net income attributable to the partners |
56,222 |
— |
56,222 |
|||||||||
|
Less: Net income attributable to the IDR holder |
2,765 |
— |
2,765 |
|||||||||
|
Net income attributable to PBF Logistics LP unitholders |
$ |
53,457 |
$ |
— |
$ |
53,457 |
||||||
|
____________ | ||||||||||||
|
* Reflects the results of PNGPC prior to our acquisition on February 28, 2017. | ||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended | |||||||||||||||||||
|
2017 |
2016* |
2017 |
2016* | |||||||||||||||||
|
Transportation and Terminaling Segment |
||||||||||||||||||||
|
Terminals |
||||||||||||||||||||
|
Total throughput (bpd) (b)(d) |
196,985 |
154,466 |
202,896 |
158,789 |
||||||||||||||||
|
Lease tank capacity (average lease capacity barrels |
1,922,453 |
2,036,599 |
2,141,027 |
2,045,556 |
||||||||||||||||
|
Pipelines |
||||||||||||||||||||
|
Total throughput (bpd) (b)(d) |
137,262 |
130,063 |
134,951 |
128,434 |
||||||||||||||||
|
Lease tank capacity (average lease capacity barrels |
1,273,634 |
1,475,619 |
1,132,124 |
1,475,619 |
||||||||||||||||
|
Storage Segment |
||||||||||||||||||||
|
Storage capacity reserved (average shell capacity |
3,709,693 |
3,654,916 |
3,729,789 |
3,628,037 |
||||||||||||||||
|
Cash Flow Information: |
||||||||||||||||||||
|
Net cash provided by (used in): |
||||||||||||||||||||
|
Operating activities |
$ |
30,312 |
$ |
25,686 |
$ |
120,965 |
$ |
68,285 |
||||||||||||
|
Investing activities |
(15,056) |
71,550 |
(31,417) |
67,861 |
||||||||||||||||
|
Financing activities |
(26,890) |
(102,848) |
(114,349) |
(110,553) |
||||||||||||||||
|
Net change in cash |
$ |
(11,634) |
$ |
(5,612) |
$ |
(24,801) |
$ |
25,593 |
||||||||||||
|
Other Financial Information: |
||||||||||||||||||||
|
EBITDA attributable to PBFX (c) |
$ |
40,873 |
$ |
31,482 |
$ |
112,894 |
$ |
85,475 |
||||||||||||
|
Distributable cash flow (c) |
$ |
32,169 |
$ |
25,073 |
$ |
91,242 |
$ |
66,558 |
||||||||||||
|
Quarterly distribution declared per unit (e) |
$ |
0.48 |
$ |
0.44 |
$ |
1.41 |
$ |
1.29 |
||||||||||||
|
Distribution (e): |
||||||||||||||||||||
|
Common units |
$ |
20,417 |
$ |
11,621 |
$ |
52,686 |
$ |
30,348 |
||||||||||||
|
Subordinated units - PBF LLC |
— |
6,990 |
7,308 |
20,493 |
||||||||||||||||
|
IDR holder - PBF LLC |
2,526 |
1,125 |
6,319 |
2,765 |
||||||||||||||||
|
Total distribution |
$ |
22,943 |
$ |
19,736 |
$ |
66,313 |
$ |
53,606 |
||||||||||||
|
Coverage ratio (c) |
1.40x |
1.27x |
1.38x |
1.24x |
||||||||||||||||
|
Capital expenditures, including acquisitions |
$ |
15,056 |
$ |
4,603 |
$ |
71,441 |
$ |
106,416 |
||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
____________ | ||||||||||||||||||||
|
* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition on February 28, 2017. | ||||||||||||||||||||
|
PBF LOGISTICS LP | ||||||||
|
EARNINGS RELEASE TABLES | ||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||
|
(Unaudited, in thousands) | ||||||||
|
September 30, |
December 31, | |||||||
|
Balance Sheet Information: |
2017 |
2016 | ||||||
|
Cash, cash equivalents and marketable securities (f) |
$ |
39,420 |
$ |
104,245 |
||||
|
Property, plant and equipment, net |
675,793 |
608,802 |
||||||
|
Total assets |
754,477 |
756,861 |
||||||
|
Total debt (f) |
544,736 |
571,675 |
||||||
|
Total liabilities |
597,652 |
604,290 |
||||||
|
Partners' equity |
(15,927) |
(27,311) |
||||||
|
Noncontrolling interest (g) |
172,752 |
179,882 |
||||||
|
Total liabilities and equity |
754,477 |
756,861 |
||||||
|
See Footnotes to Earnings Release Tables | ||||||||
|
PBF LOGISTICS LP | |||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||
|
TO EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||
|
Three Months Ended |
Nine Months Ended | ||||||||||||||||
|
2017 |
2016* |
2017 |
2016* | ||||||||||||||
|
Reconciliation of net income to EBITDA and |
|||||||||||||||||
|
Net income |
$ |
32,672 |
$ |
18,067 |
$ |
87,860 |
$ |
52,758 |
|||||||||
|
Interest expense, net |
7,416 |
7,280 |
22,493 |
21,298 |
|||||||||||||
|
Amortization of loan fees |
332 |
416 |
1,125 |
1,261 |
|||||||||||||
|
Depreciation and amortization |
5,610 |
5,347 |
16,672 |
9,543 |
|||||||||||||
|
EBITDA |
46,030 |
31,110 |
128,150 |
84,860 |
|||||||||||||
|
Less: Predecessor EBITDA |
— |
(2,439) |
(40) |
(2,682) |
|||||||||||||
|
Less: Noncontrolling interest EBITDA (g) |
5,157 |
2,067 |
15,296 |
2,067 |
|||||||||||||
|
EBITDA attributable to PBFX |
40,873 |
31,482 |
112,894 |
85,475 |
|||||||||||||
|
Non-cash unit-based compensation expense |
807 |
963 |
4,515 |
3,673 |
|||||||||||||
|
Cash interest |
(8,006) |
(7,280) |
(23,622) |
(21,298) |
|||||||||||||
|
Maintenance capital expenditures |
(1,505) |
(92) |
(2,545) |
(1,292) |
|||||||||||||
|
Distributable cash flow |
$ |
32,169 |
$ |
25,073 |
$ |
91,242 |
$ |
66,558 |
|||||||||
|
Reconciliation of net cash provided by operating |
|||||||||||||||||
|
Net cash provided by operating activities |
$ |
30,312 |
$ |
25,686 |
$ |
120,965 |
$ |
68,285 |
|||||||||
|
Change in operating assets and liabilities |
9,109 |
(893) |
(10,793) |
(1,050) |
|||||||||||||
|
Interest expense, net |
7,416 |
7,280 |
22,493 |
21,298 |
|||||||||||||
|
Non-cash unit-based compensation expense |
(807) |
(963) |
(4,515) |
(3,673) |
|||||||||||||
|
EBITDA |
46,030 |
31,110 |
128,150 |
84,860 |
|||||||||||||
|
Less: Predecessor EBITDA |
— |
(2,439) |
(40) |
(2,682) |
|||||||||||||
|
Less: Noncontrolling interest EBITDA (g) |
5,157 |
2,067 |
15,296 |
2,067 |
|||||||||||||
|
EBITDA attributable to PBFX |
40,873 |
31,482 |
112,894 |
85,475 |
|||||||||||||
|
Non-cash unit-based compensation expense |
807 |
963 |
4,515 |
3,673 |
|||||||||||||
|
Cash interest |
(8,006) |
(7,280) |
(23,622) |
(21,298) |
|||||||||||||
|
Maintenance capital expenditures |
(1,505) |
(92) |
(2,545) |
(1,292) |
|||||||||||||
|
Distributable cash flow |
$ |
32,169 |
$ |
25,073 |
$ |
91,242 |
$ |
66,558 |
|||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||
|
____________ | |||||||||||||||||
|
* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition on February 28, 2017. | |||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||
|
Three Months Ended September 30, 2017 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total revenue (a) |
$ |
59,907 |
$ |
5,587 |
$ |
— |
$ |
65,494 |
||||||||
|
Depreciation and amortization expense |
4,989 |
621 |
— |
5,610 |
||||||||||||
|
Income (loss) from operations |
41,056 |
2,898 |
(3,534) |
40,420 |
||||||||||||
|
Interest expense, net and amortization of |
— |
— |
7,748 |
7,748 |
||||||||||||
|
Capital expenditures |
8,763 |
6,293 |
— |
15,056 |
||||||||||||
|
Three Months Ended September 30, 2016* | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total revenue (a) |
$ |
42,951 |
$ |
5,482 |
$ |
— |
$ |
48,433 |
||||||||
|
Depreciation and amortization expense |
4,752 |
595 |
— |
5,347 |
||||||||||||
|
Income (loss) from operations |
27,848 |
2,335 |
(4,420) |
25,763 |
||||||||||||
|
Interest expense, net and amortization of |
— |
— |
7,696 |
7,696 |
||||||||||||
|
Capital expenditures |
4,511 |
92 |
— |
4,603 |
||||||||||||
|
Nine Months Ended September 30, 2017 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total revenue (a) |
$ |
171,449 |
$ |
16,851 |
$ |
— |
$ |
188,300 |
||||||||
|
Depreciation and amortization expense |
14,830 |
1,842 |
— |
16,672 |
||||||||||||
|
Income (loss) from operations |
114,950 |
9,475 |
(12,947) |
111,478 |
||||||||||||
|
Interest expense, net and amortization of |
— |
— |
23,618 |
23,618 |
||||||||||||
|
Capital expenditures, including the Toledo |
56,596 |
14,845 |
— |
71,441 |
||||||||||||
|
Nine Months Ended September 30, 2016* | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total revenue (a) |
$ |
109,315 |
$ |
16,326 |
$ |
— |
$ |
125,641 |
||||||||
|
Depreciation and amortization expense |
7,713 |
1,830 |
— |
9,543 |
||||||||||||
|
Income (loss) from operations |
81,463 |
7,750 |
(13,896) |
75,317 |
||||||||||||
|
Interest expense, net and amortization of |
— |
— |
22,559 |
22,559 |
||||||||||||
|
Capital expenditures, including the Plains |
105,124 |
1,292 |
— |
106,416 |
||||||||||||
|
____________ | ||||||||||||||||
|
* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition on February 28, 2017. | ||||||||||||||||
|
Balance at September 30, 2017 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total assets |
$ |
664,251 |
$ |
70,306 |
$ |
19,920 |
$ |
754,477 |
||||||||
|
Balance at December 31, 2016 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total assets |
$ |
606,898 |
$ |
57,375 |
$ |
92,588 |
$ |
756,861 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF LOGISTICS LP | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
|
(Unaudited, in thousands, except per unit data) | |||||||||||
|
(a) |
See discussion of the factors affecting comparability noted on page 4. Our results of operations may not be comparable to the historical results of operations for the reasons described below: . | ||||||||||
|
(b) |
Calculated as the sum of the average throughput per day for each asset group for the period presented. | ||||||||||
|
(c) |
See "Non-GAAP Financial Measures" on page 5 for definitions of EBITDA, EBITDA attributable to PBFX, distributable cash flow and coverage ratio. | ||||||||||
|
(d) |
Operating information pertains to assets which are included in the Transportation and Terminaling segment. Throughput information reflects activity subsequent to execution of the commercial agreements in connection with the acquisitions of the Toledo Terminal, the Paulsboro Natural Gas Pipeline and the Torrance Valley Pipeline and activity subsequent to the Plains Asset Purchase. | ||||||||||
|
(e) |
On November 2, 2017, we announced a quarterly cash distribution of $0.48 per limited partner unit based on the results of the third quarter of 2017. The distribution is payable on November 29, 2017 to PBFX unitholders of record at the close of business on November 13, 2017. The total distribution amounts include the expected distributions to be made related to the third quarter. | ||||||||||
|
(f) |
Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents and marketable securities from total debt, including our affiliate note payable. We believe this measurement is 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. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of September 30, 2017 and December 31, 2016 was $505,316 and $467,430, respectively. | ||||||||||
|
(g) |
Our subsidiary, PBFX Op Co, holds a 50% controlling interest in TVPC, with the other 50% interest in TVPC owned by TVP Holding, an indirect subsidiary of PBF Holding. PBFX Op Co is also the sole managing member of TVPC. We, through our ownership of PBFX Op Co, consolidate the financial results of TVPC, and record a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated statements of operations includes the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated balance sheets includes the portion of net assets of TVPC attributable to TVP Holding. | ||||||||||
|
(h) |
PBFX bases its calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during the period. The weighted-average number of common and subordinated units reflects the conversion of all of the outstanding subordinated units to common units on June 1, 2017. | ||||||||||
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-increases-quarterly-distribution-to-048-per-unit-and-announces-third-quarter-2017-earnings-results-300548132.html
SOURCE PBF Logistics LP
Article Date
11/2/2017PBF Energy Reports Third Quarter 2017 Results, Declares Dividend of $0.30 Per Share
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
PARSIPPANY, N.J., Nov. 2, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today reported third quarter 2017 income from operations of $587.2 million as compared to income from operations of $129.7 million for the third quarter of 2016. Excluding special items, third quarter 2017 income from operations was $322.1 million as compared to income from operations of $25.7 million for the third quarter of 2016. Special items in the third quarter 2017 results, which increased operating income, include a net, non-cash, after-tax gain of $160.7 million, or $1.41 per share, lower-of-cost-or-market ("LCM") inventory adjustment and an after-tax gain of $0.3 million as a result of a change in the tax receivable agreement liability.
The company reported third quarter 2017 net income of $347.2 million, and net income attributable to PBF Energy Inc. of $314.4 million or $2.85 per share. This compares to net income of $56.4 million, and net income attributable to PBF Energy Inc. of $42.1 million or $0.43 per share for the third quarter 2016. Adjusted fully-converted net income for the third quarter 2017, excluding special items, was $164.0 million, or $1.44 per share on a fully-exchanged, fully-diluted basis, as described below, compared to an adjusted fully-converted net loss of $16.5 million, or $(0.16) per share, for the third quarter 2016. PBF Energy's financial results reflect the consolidation of PBF Logistics LP (NYSE: PBFX), a master limited partnership of which PBF indirectly owns the general partner and approximately 44.1% of the limited partner interests as of quarter-end.
Tom Nimbley, PBF Energy's Chairman and CEO, said, "Our results reflect the strong operations of our entire system. For the first time since acquiring the Chalmette and Torrance refineries, we had all five of our assets operating for almost an entire quarter. As a result, we were able to capture the benefits of strong third quarter markets." Mr. Nimbley continued, "We are still coping with the ongoing pressures of narrow crude differentials and headwinds from the flawed Renewable Fuels Standard. However, the overall macroeconomic picture looks positive for refiners heading into year-end and beyond to 2018. We have strong global demand and economic growth, and inventory levels that have come down to more rational historic averages. With this positive backdrop, we are looking forward to demonstrating the earnings capability of our five refinery system through continued safe, reliable and environmentally responsible operations."
PBF Energy Inc. Declares Dividend
The company announced today that it will pay a quarterly dividend of $0.30 per share of Class A common stock on November 29, 2017, to holders of record as of November 13, 2017.
Outlook
For the fourth quarter 2017, we expect East Coast total throughput to average 340,000 to 360,000 barrels per day; Mid-Continent total throughput is expected to average 145,000 to 155,000 barrels per day; Gulf Coast total throughput is expected to average 190,000 to 200,000 barrels per day and West Coast total throughput is expected to average 160,000 to 170,000 barrels per day.
For the full-year 2017, we expect East Coast total throughput to average 315,000 to 335,000 barrels per day; Mid-Continent total throughput is expected to average 145,000 to 155,000 barrels per day; Gulf Coast total throughput is expected to average 175,000 to 185,000 barrels per day and West Coast total throughput is expected to average 130,000 to 140,000 barrels per day.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income (Loss), Adjusted Fully-Converted Net Income (Loss) excluding special items, Adjusted Fully-Converted Net Income (Loss) per fully-exchanged, fully-diluted share, gross refining margin, gross refining margin excluding special items, gross refining margin per barrel of throughput, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization), EBITDA excluding special items, Adjusted EBITDA and projected EBITDA related to the refinery acquisitions. PBF believes that non-GAAP financial measures provide useful information about its operating performance and financial results. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBF's non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the non-GAAP measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
PBF Energy's senior management will host a conference call and webcast regarding quarterly results and other business matters on Thursday, November 2, 2017, at 8:30 a.m. ET. The webcast is available through PBF Energy's website, http://www.pbfenergy.com. The call can also be heard by dialing (866) 831-8713 or (203) 518-9713, conference ID: PBFQ317. The audio replay will be available two hours after the end of the call through November 16, 2017, by dialing (800) 723-1517 or (402) 220-2659.
Forward-Looking Statements
Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the company's control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the company's filings with the SEC, as well as the risks disclosed in PBF Logistics LP's SEC filings and any impact PBF Logistics LP may have on the company's credit rating, cost of funds, employees, customer and vendors; risk relating to the securities markets generally; and the impact of adverse market conditions affecting the company, unanticipated developments, regulatory approvals, changes in laws and other events that negatively impact the company. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.
PBF Energy Inc. also currently indirectly owns the general partner and approximately 44.1% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
|
(Unaudited, in thousands, except share and per share data) | ||||||||||||||||||
|
Three Months Ended |
Nine Months Ended | |||||||||||||||||
|
September 30, |
September 30, | |||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||||
|
Revenues |
$ |
5,478,951 |
$ |
4,513,204 |
$ |
15,250,649 |
$ |
11,171,856 | ||||||||||
|
Costs and expenses (Note 1): |
||||||||||||||||||
|
Cost of products and other |
4,352,061 |
3,862,580 |
13,154,521 |
9,524,119 | ||||||||||||||
|
Operating expenses (excluding depreciation and amortization expense as reflected below) |
402,910 |
412,699 |
1,267,136 |
989,296 | ||||||||||||||
|
Depreciation and amortization expense |
75,948 |
54,694 |
197,800 |
158,612 | ||||||||||||||
|
Cost of sales |
4,830,919 |
4,329,973 |
14,619,457 |
10,672,027 | ||||||||||||||
|
General and administrative expenses (excluding depreciation and amortization expense as |
58,275 |
44,020 |
143,195 |
124,975 | ||||||||||||||
|
Depreciation and amortization expense |
2,572 |
1,342 |
10,355 |
4,417 | ||||||||||||||
|
Loss on sale of assets |
28 |
8,159 |
940 |
11,381 | ||||||||||||||
|
Total cost and expenses |
4,891,794 |
4,383,494 |
14,773,947 |
10,812,800 | ||||||||||||||
|
Income from operations |
587,157 |
129,710 |
476,702 |
359,056 | ||||||||||||||
|
Other income (expenses): |
||||||||||||||||||
|
Change in tax receivable agreement liability |
565 |
(3,143) |
565 |
(3,143) | ||||||||||||||
|
Change in fair value of catalyst leases |
473 |
77 |
(1,011) |
(4,556) | ||||||||||||||
|
Debt extinguishment costs |
— |
— |
(25,451) |
— | ||||||||||||||
|
Interest expense, net |
(36,990) |
(38,527) |
(114,871) |
(111,994) | ||||||||||||||
|
Income before income taxes |
551,205 |
88,117 |
335,934 |
239,363 | ||||||||||||||
|
Income tax expense |
203,979 |
31,673 |
112,889 |
85,607 | ||||||||||||||
|
Net income |
347,226 |
56,444 |
223,045 |
153,756 | ||||||||||||||
|
Less: net income attributable to noncontrolling interests |
32,861 |
14,333 |
49,420 |
37,503 | ||||||||||||||
|
Net income attributable to PBF Energy Inc. stockholders |
$ |
314,365 |
$ |
42,111 |
$ |
173,625 |
$ |
116,253 | ||||||||||
|
Net income available to Class A common stock per share: |
||||||||||||||||||
|
Basic |
$ |
2.86 |
$ |
0.43 |
$ |
1.58 |
$ |
1.19 | ||||||||||
|
Diluted |
$ |
2.85 |
$ |
0.43 |
$ |
1.57 |
$ |
1.19 | ||||||||||
|
Weighted-average shares outstanding-basic |
109,724,595 |
97,825,357 |
109,634,921 |
97,823,708 | ||||||||||||||
|
Weighted-average shares outstanding-diluted |
113,882,240 |
103,135,799 |
113,791,542 |
103,210,917 | ||||||||||||||
|
Dividends per common share |
$ |
0.30 |
$ |
0.30 |
$ |
0.90 |
$ |
0.90 | ||||||||||
|
Adjusted fully-converted net income and adjusted fully-converted net income per fully |
||||||||||||||||||
|
Adjusted fully-converted net income |
$ |
325,091 |
$ |
44,404 |
$ |
178,682 |
$ |
122,749 | ||||||||||
|
Adjusted fully-converted net income per fully exchanged, fully diluted share |
$ |
2.85 |
$ |
0.43 |
$ |
1.57 |
$ |
1.19 | ||||||||||
|
Adjusted fully-converted shares outstanding - diluted |
113,882,240 |
103,135,799 |
113,791,542 |
103,210,917 | ||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||
|
(Unaudited, in thousands, except share and per share data) | |||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended | ||||||||||||||||||||
|
RECONCILIATION OF NET INCOME TO |
September 30, |
September 30, | |||||||||||||||||||
|
ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) (Note 2) |
2017 |
2016 |
2017 |
2016 | |||||||||||||||||
|
Net income attributable to PBF Energy Inc. stockholders |
$ |
314,365 |
$ |
42,111 |
$ |
173,625 |
$ |
116,253 |
|||||||||||||
|
Less: Income allocated to participating securities |
272 |
— |
811 |
— |
|||||||||||||||||
|
Income available to PBF Energy Inc. stockholders - basic |
314,093 |
42,111 |
172,814 |
116,253 |
|||||||||||||||||
|
Add: Net income attributable to noncontrolling interest (Note 3) |
18,137 |
3,797 |
9,677 |
10,755 |
|||||||||||||||||
|
Less: Income tax expense (Note 4) |
(7,139) |
(1,504) |
(3,809) |
(4,259) |
|||||||||||||||||
|
Adjusted fully-converted net income |
$ |
325,091 |
$ |
44,404 |
$ |
178,682 |
$ |
122,749 |
|||||||||||||
|
Special Items (Note 5): |
|||||||||||||||||||||
|
Add: Net non-cash LCM inventory adjustment (Note 6) |
(265,077) |
(103,990) |
(97,943) |
(320,833) |
|||||||||||||||||
|
Add: Change in tax receivable agreement liability (Note 6) |
(565) |
3,143 |
(565) |
3,143 |
|||||||||||||||||
|
Add: Debt extinguishment costs (Note 6) |
— |
— |
25,451 |
— |
|||||||||||||||||
|
Add: Recomputed income taxes on special items (Note 6) |
104,556 |
39,935 |
28,755 |
125,805 |
|||||||||||||||||
|
Adjusted fully-converted net income (loss) excluding special items |
$ |
164,005 |
$ |
(16,508) |
$ |
134,380 |
$ |
(69,136) |
|||||||||||||
|
Weighted-average shares outstanding of PBF Energy Inc. |
109,724,595 |
97,825,357 |
109,634,921 |
97,823,708 |
|||||||||||||||||
|
Conversion of PBF LLC Series A Units (Note 7) |
3,825,508 |
4,966,632 |
3,832,464 |
4,956,853 |
|||||||||||||||||
|
Common stock equivalents (Note 8) |
332,137 |
343,810 |
324,157 |
430,356 |
|||||||||||||||||
|
Adjusted fully-converted shares outstanding - diluted |
113,882,240 |
103,135,799 |
113,791,542 |
103,210,917 |
|||||||||||||||||
|
Adjusted fully-converted net income (per fully exchanged, fully diluted |
$ |
2.85 |
$ |
0.43 |
$ |
1.57 |
$ |
1.19 |
|||||||||||||
|
Adjusted fully-converted net income (loss) excluding special items (per |
$ |
1.44 |
$ |
(0.16) |
$ |
1.18 |
$ |
(0.67) |
|||||||||||||
|
Three Months Ended |
Nine Months Ended | ||||||||||||||||||||
|
RECONCILIATION OF INCOME FROM OPERATIONS |
September 30, |
September 30, | |||||||||||||||||||
|
TO INCOME FROM OPERATIONS EXCLUDING SPECIAL ITEMS |
2017 |
2016 |
2017 |
2016 | |||||||||||||||||
|
Income from operations |
$ |
587,157 |
$ |
129,710 |
$ |
476,702 |
$ |
359,056 |
|||||||||||||
|
Special Items (Note 5): |
|||||||||||||||||||||
|
Add: Net non-cash LCM inventory adjustment (Note 6) |
(265,077) |
(103,990) |
(97,943) |
(320,833) |
|||||||||||||||||
|
Income from operations excluding special items (Note 5) |
$ |
322,080 |
$ |
25,720 |
$ |
378,759 |
$ |
38,223 |
|||||||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||
|
EBITDA RECONCILIATIONS (Note 9) | ||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||
|
Three Months Ended |
Nine Months Ended | |||||||||||||
|
September 30, |
September 30, | |||||||||||||
|
RECONCILIATION OF NET INCOME TO EBITDA AND |
2017 |
2016 |
2017 |
2016 | ||||||||||
|
Net income |
$ 347,226 |
$ 56,444 |
$ 223,045 |
$ 153,756 | ||||||||||
|
Add: Depreciation and amortization expense |
78,520 |
56,036 |
208,155 |
163,029 | ||||||||||
|
Add: Interest expense, net |
36,990 |
38,527 |
114,871 |
111,994 | ||||||||||
|
Add: Income tax expense |
203,979 |
31,673 |
112,889 |
85,607 | ||||||||||
|
EBITDA |
$ 666,715 |
$ 182,680 |
$ 658,960 |
$ 514,386 | ||||||||||
|
Special Items (Note 5): |
||||||||||||||
|
Add: Net non-cash LCM inventory adjustment (Note 6) |
(265,077) |
(103,990) |
(97,943) |
(320,833) | ||||||||||
|
Add: Change in tax receivable agreement liability (Note 6) |
(565) |
3,143 |
(565) |
3,143 | ||||||||||
|
Add: Debt extinguishment costs (Note 6) |
— |
— |
25,451 |
— | ||||||||||
|
EBITDA excluding special items (Note 5) |
$ 401,073 |
$ 81,833 |
$ 585,903 |
$ 196,696 | ||||||||||
|
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA |
||||||||||||||
|
EBITDA |
$ 666,715 |
$ 182,680 |
$ 658,960 |
$ 514,386 | ||||||||||
|
Add: Stock based compensation |
4,222 |
3,622 |
18,064 |
16,331 | ||||||||||
|
Add: Net non-cash change in fair value of catalyst leases |
(473) |
(77) |
1,011 |
4,556 | ||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 6) |
(265,077) |
(103,990) |
(97,943) |
(320,833) | ||||||||||
|
Add: Change in tax receivable agreement liability (Note 6) |
(565) |
3,143 |
(565) |
3,143 | ||||||||||
|
Add: Debt extinguishment costs (Note 6) |
— |
— |
25,451 |
— | ||||||||||
|
Adjusted EBITDA |
$ 404,822 |
$ 85,378 |
$ 604,978 |
$ 217,583 | ||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||||||||
|
(Unaudited, in thousands) | |||||||||||
|
September 30, |
December 31, | ||||||||||
|
2017 |
2016 | ||||||||||
|
Balance Sheet Data: |
|||||||||||
|
Cash, cash equivalents and marketable securities |
$ |
300,891 |
$ |
786,298 |
|||||||
|
Inventories |
2,310,692 |
1,863,560 |
|||||||||
|
Total assets |
7,999,457 |
7,621,927 |
|||||||||
|
Total debt |
2,165,168 |
2,148,234 |
|||||||||
|
Total equity |
2,675,362 |
2,570,684 |
|||||||||
|
Total equity excluding special items (Note 5, 17) |
$ |
2,972,751 |
$ |
2,912,375 |
|||||||
|
Total debt to capitalization ratio (Note 17) |
45 |
% |
46 |
% | |||||||
|
Total debt to capitalization ratio, excluding special items (Note 17) |
42 |
% |
42 |
% | |||||||
|
Net debt to capitalization ratio (Note 17) |
41 |
% |
35 |
% | |||||||
|
Net debt to capitalization ratio, excluding special items (Note 17) |
39 |
% |
32 |
% | |||||||
|
SUMMARIZED STATEMENT OF CASH FLOW DATA | |||||||||||
|
(Unaudited, in thousands) | |||||||||||
|
Nine Months Ended September 30, | |||||||||||
|
2017 |
2016 | ||||||||||
|
Cash flows provided by operations |
$ |
322,223 |
$ |
388,212 |
|||||||
|
Cash flows used in investing activities |
(609,918) |
(1,246,953) |
|||||||||
|
Cash flows (used in) provided by financing activities |
(157,688) |
539,823 |
|||||||||
|
Net decrease in cash and cash equivalents |
(445,383) |
(318,918) |
|||||||||
|
Cash and cash equivalents, beginning of period |
746,274 |
944,320 |
|||||||||
|
Cash and cash equivalents, end of period |
$ |
300,891 |
$ |
625,402 |
|||||||
|
Marketable securities |
— |
59,991 |
|||||||||
|
Net cash, cash equivalents and marketable securities |
$ |
300,891 |
$ |
685,393 |
|||||||
|
See Footnotes to Earnings Release Tables | |||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||
|
CONSOLIDATING FINANCIAL INFORMATION (Note 10) | |||||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||||
|
Three Months Ended September 30, 2017 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
5,475,815 |
$ |
65,494 |
$ |
— |
$ |
(62,358) |
$ |
5,478,951 |
|||||||||
|
Depreciation and amortization expense |
70,338 |
5,610 |
2,572 |
— |
78,520 |
||||||||||||||
|
Income (loss) from operations (Note 18) |
607,848 |
40,420 |
(57,312) |
(3,799) |
587,157 |
||||||||||||||
|
Interest expense, net |
1,180 |
7,748 |
28,062 |
— |
36,990 |
||||||||||||||
|
Capital expenditures |
165,659 |
15,056 |
562 |
— |
181,277 |
||||||||||||||
|
Three Months Ended September 30, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
4,508,613 |
$ |
48,433 |
$ |
— |
$ |
(43,842) |
$ |
4,513,204 |
|||||||||
|
Depreciation and amortization expense |
49,347 |
5,347 |
1,342 |
— |
56,036 |
||||||||||||||
|
Income (loss) from operations (Note 18) |
149,282 |
25,763 |
(43,714) |
(1,621) |
129,710 |
||||||||||||||
|
Interest expense, net |
713 |
7,696 |
30,118 |
— |
38,527 |
||||||||||||||
|
Capital expenditures (Note 15) |
1,084,579 |
4,603 |
4,337 |
— |
1,093,519 |
||||||||||||||
|
Nine Months Ended September 30, 2017 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
15,239,264 |
$ |
188,300 |
$ |
— |
$ |
(176,915) |
$ |
15,250,649 |
|||||||||
|
Depreciation and amortization expense |
181,128 |
16,672 |
10,355 |
— |
208,155 |
||||||||||||||
|
Income (loss) from operations (Note 18) |
517,045 |
111,478 |
(140,603) |
(11,218) |
476,702 |
||||||||||||||
|
Interest expense, net |
3,433 |
23,618 |
87,820 |
— |
114,871 |
||||||||||||||
|
Capital expenditures (Note 16) |
575,530 |
71,441 |
2,971 |
— |
649,942 |
||||||||||||||
|
Nine Months Ended September 30, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
11,164,571 |
$ |
125,641 |
$ |
— |
$ |
(118,356) |
$ |
11,171,856 |
|||||||||
|
Depreciation and amortization expense |
149,069 |
9,543 |
4,417 |
— |
163,029 |
||||||||||||||
|
Income (loss) from operations (Note 18) |
403,630 |
75,317 |
(118,270) |
(1,621) |
359,056 |
||||||||||||||
|
Interest expense, net |
2,827 |
22,559 |
86,608 |
— |
111,994 |
||||||||||||||
|
Capital expenditures (Note 15) |
1,311,248 |
106,416 |
16,596 |
— |
1,434,260 |
||||||||||||||
|
Balance at September 30, 2017 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Total Assets (Note 19) |
$ |
6,953,916 |
$ |
754,477 |
$ |
327,109 |
$ |
(36,045) |
$ |
7,999,457 |
|||||||||
|
Balance at December 31, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Total Assets (Note 19) |
$ |
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 |
Nine Months Ended | |||||||||||||||||||
|
September 30, |
September 30, | |||||||||||||||||||
|
Market Indicators (dollars per barrel) (Note 11) |
2017 |
2016 |
2017 |
2016 | ||||||||||||||||
|
Dated Brent Crude |
$ |
52.16 |
$ |
45.90 |
$ |
51.79 |
$ |
42.05 |
||||||||||||
|
West Texas Intermediate (WTI) crude oil |
$ |
48.18 |
$ |
44.88 |
$ |
49.32 |
$ |
41.41 |
||||||||||||
|
Light Louisiana Sweet (LLS) crude oil |
$ |
51.67 |
$ |
46.52 |
$ |
51.73 |
$ |
43.20 |
||||||||||||
|
Alaska North Slope (ANS) crude oil |
$ |
52.04 |
$ |
44.65 |
$ |
52.15 |
$ |
41.58 |
||||||||||||
|
Crack Spreads: |
||||||||||||||||||||
|
Dated Brent (NYH) 2-1-1 |
$ |
18.12 |
$ |
12.94 |
$ |
14.84 |
$ |
13.18 |
||||||||||||
|
WTI (Chicago) 4-3-1 |
$ |
18.82 |
$ |
13.64 |
$ |
14.70 |
$ |
13.07 |
||||||||||||
|
LLS (Gulf Coast) 2-1-1 |
$ |
16.69 |
$ |
11.51 |
$ |
13.75 |
$ |
10.35 |
||||||||||||
|
ANS (West Coast) 4-3-1 |
$ |
20.66 |
$ |
15.61 |
$ |
18.78 |
$ |
17.22 |
||||||||||||
|
Crude Oil Differentials: |
||||||||||||||||||||
|
Dated Brent (foreign) less WTI |
$ |
3.97 |
$ |
1.02 |
$ |
2.47 |
$ |
0.64 |
||||||||||||
|
Dated Brent less Maya (heavy, sour) |
$ |
8.75 |
$ |
6.87 |
$ |
6.77 |
$ |
7.57 |
||||||||||||
|
Dated Brent less WTS (sour) |
$ |
4.96 |
$ |
2.50 |
$ |
3.63 |
$ |
1.48 |
||||||||||||
|
Dated Brent less ASCI (sour) |
$ |
3.82 |
$ |
4.14 |
$ |
3.58 |
$ |
4.02 |
||||||||||||
|
WTI less WCS (heavy, sour) |
$ |
10.03 |
$ |
13.28 |
$ |
10.83 |
$ |
12.15 |
||||||||||||
|
WTI less Bakken (light, sweet) |
$ |
(0.69) |
$ |
1.41 |
$ |
0.18 |
$ |
1.13 |
||||||||||||
|
WTI less Syncrude (light, sweet) |
$ |
(1.95) |
$ |
(0.95) |
$ |
(1.86) |
$ |
(2.67) |
||||||||||||
|
WTI less LLS (light, sweet) |
$ |
(3.49) |
$ |
(1.65) |
$ |
(2.41) |
$ |
(1.79) |
||||||||||||
|
WTI less ANS (light, sweet) |
$ |
(3.86) |
$ |
0.23 |
$ |
(2.82) |
$ |
(0.17) |
||||||||||||
|
Natural gas (dollars per MMBTU) |
$ |
2.95 |
$ |
2.79 |
$ |
3.05 |
$ |
2.35 |
||||||||||||
|
Key Operating Information |
||||||||||||||||||||
|
Production (barrels per day ("bpd") in thousands) |
852.6 |
799.1 |
781.6 |
717.6 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
849.7 |
786.3 |
786.1 |
711.8 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
78.2 |
72.3 |
214.6 |
195.1 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
8.54 |
$ |
2.70 |
$ |
3.22 |
$ |
2.69 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, Note 12) |
$ |
10.22 |
$ |
6.92 |
$ |
8.46 |
$ |
6.20 |
||||||||||||
|
Refinery operating expense, excluding depreciation, per barrel of throughput (Note 13) |
$ |
4.98 |
$ |
5.59 |
$ |
5.71 |
$ |
4.98 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 14) |
||||||||||||||||||||
|
Heavy crude |
33 |
% |
34 |
% |
34 |
% |
23 |
% | ||||||||||||
|
Medium crude |
30 |
% |
32 |
% |
30 |
% |
38 |
% | ||||||||||||
|
Light crude |
22 |
% |
23 |
% |
21 |
% |
28 |
% | ||||||||||||
|
Other feedstocks and blends |
15 |
% |
11 |
% |
15 |
% |
11 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
50 |
% |
51 |
% |
50 |
% |
49 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
29 |
% |
31 |
% |
29 |
% |
31 |
% | ||||||||||||
|
Lubes |
1 |
% |
1 |
% |
1 |
% |
1 |
% | ||||||||||||
|
Chemicals |
2 |
% |
3 |
% |
2 |
% |
4 |
% | ||||||||||||
|
Other |
18 |
% |
14 |
% |
17 |
% |
15 |
% | ||||||||||||
|
Total yield |
100 |
% |
100 |
% |
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 |
Nine Months Ended | |||||||||||||||||||
|
September 30, |
September 30, | |||||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||||||
|
Supplemental Operating Information - East Coast (Delaware City and |
||||||||||||||||||||
|
Production (bpd in thousands) |
339.6 |
313.1 |
323.8 |
322.9 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
343.7 |
315.9 |
330.1 |
327.9 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
31.6 |
29.1 |
90.1 |
89.8 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
4.45 |
$ |
0.84 |
$ |
0.68 |
$ |
0.98 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, |
$ |
6.96 |
$ |
4.52 |
$ |
5.99 |
$ |
5.21 |
||||||||||||
|
Refinery operating expense, excluding depreciation, per barrel of throughput |
$ |
3.83 |
$ |
4.26 |
$ |
4.50 |
$ |
4.42 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 14): |
||||||||||||||||||||
|
Heavy crude |
31 |
% |
27 |
% |
33 |
% |
17 |
% | ||||||||||||
|
Medium crude |
38 |
% |
48 |
% |
38 |
% |
57 |
% | ||||||||||||
|
Light crude |
8 |
% |
12 |
% |
10 |
% |
12 |
% | ||||||||||||
|
Other feedstocks and blends |
23 |
% |
13 |
% |
19 |
% |
14 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
46 |
% |
46 |
% |
45 |
% |
47 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
28 |
% |
33 |
% |
30 |
% |
30 |
% | ||||||||||||
|
Lubes |
2 |
% |
2 |
% |
2 |
% |
2 |
% | ||||||||||||
|
Chemicals |
1 |
% |
2 |
% |
1 |
% |
2 |
% | ||||||||||||
|
Other |
22 |
% |
16 |
% |
20 |
% |
18 |
% | ||||||||||||
|
Total yield |
99 |
% |
99 |
% |
98 |
% |
99 |
% | ||||||||||||
|
Supplemental Operating Information - Mid-Continent (Toledo) |
||||||||||||||||||||
|
Production (bpd in thousands) |
164.7 |
168.2 |
149.6 |
168.0 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
160.6 |
165.3 |
146.5 |
165.7 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
14.8 |
15.2 |
40.0 |
45.5 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
13.15 |
$ |
3.69 |
$ |
4.33 |
$ |
2.84 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, |
$ |
12.87 |
$ |
6.67 |
$ |
9.67 |
$ |
5.85 |
||||||||||||
|
Refinery operating expense, excluding depreciation, per barrel of throughput |
$ |
4.57 |
$ |
4.29 |
$ |
5.21 |
$ |
4.39 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 14): |
||||||||||||||||||||
|
Medium crude |
36 |
% |
30 |
% |
38 |
% |
33 |
% | ||||||||||||
|
Light crude |
62 |
% |
67 |
% |
60 |
% |
64 |
% | ||||||||||||
|
Other feedstocks and blends |
2 |
% |
3 |
% |
2 |
% |
3 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
54 |
% |
54 |
% |
54 |
% |
52 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
33 |
% |
34 |
% |
33 |
% |
35 |
% | ||||||||||||
|
Chemicals |
6 |
% |
5 |
% |
6 |
% |
5 |
% | ||||||||||||
|
Other |
10 |
% |
9 |
% |
9 |
% |
9 |
% | ||||||||||||
|
Total yield |
103 |
% |
102 |
% |
102 |
% |
101 |
% | ||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended | |||||||||||||||||||
|
September 30, |
September 30, | |||||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||||||
|
Supplemental Operating Information - Gulf Coast (Chalmette) |
||||||||||||||||||||
|
Production (bpd in thousands) |
198.1 |
172.9 |
181.7 |
178.0 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
200.4 |
165.6 |
182.6 |
171.3 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
18.5 |
15.2 |
49.9 |
46.9 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
8.57 |
$ |
1.24 |
$ |
3.95 |
$ |
2.97 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, |
$ |
10.36 |
$ |
7.48 |
$ |
9.13 |
$ |
6.85 |
||||||||||||
|
Refinery operating expense, excluding depreciation, per barrel of throughput |
$ |
4.29 |
$ |
5.78 |
$ |
4.96 |
$ |
5.28 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 14): |
||||||||||||||||||||
|
Heavy crude |
34 |
% |
40 |
% |
39 |
% |
39 |
% | ||||||||||||
|
Medium crude |
24 |
% |
28 |
% |
24 |
% |
17 |
% | ||||||||||||
|
Light crude |
28 |
% |
16 |
% |
21 |
% |
29 |
% | ||||||||||||
|
Other feedstocks and blends |
14 |
% |
16 |
% |
16 |
% |
15 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
43 |
% |
47 |
% |
46 |
% |
47 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
34 |
% |
29 |
% |
32 |
% |
31 |
% | ||||||||||||
|
Chemicals |
2 |
% |
6 |
% |
2 |
% |
6 |
% | ||||||||||||
|
Other |
20 |
% |
18 |
% |
20 |
% |
16 |
% | ||||||||||||
|
Total yield |
99 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Supplemental Operating Information - West Coast (Torrance) |
||||||||||||||||||||
|
Production (bpd in thousands) |
150.2 |
144.9 |
126.5 |
144.9 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
145.0 |
139.5 |
126.9 |
139.6 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
13.3 |
12.8 |
34.6 |
12.8 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
8.31 |
$ |
3.86 |
$ |
2.18 |
$ |
3.86 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 5, |
$ |
14.81 |
$ |
11.96 |
$ |
12.53 |
$ |
11.96 |
||||||||||||
|
Refinery operating expense, excluding depreciation, per barrel of throughput |
$ |
9.13 |
$ |
8.68 |
$ |
10.52 |
$ |
8.68 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 14): |
||||||||||||||||||||
|
Heavy crude |
75 |
% |
85 |
% |
72 |
% |
85 |
% | ||||||||||||
|
Medium crude |
12 |
% |
2 |
% |
8 |
% |
2 |
% | ||||||||||||
|
Other feedstocks and blends |
13 |
% |
13 |
% |
20 |
% |
13 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
64 |
% |
61 |
% |
65 |
% |
61 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
24 |
% |
25 |
% |
20 |
% |
25 |
% | ||||||||||||
|
Other |
16 |
% |
18 |
% |
15 |
% |
18 |
% | ||||||||||||
|
Total yield |
104 |
% |
104 |
% |
100 |
% |
104 |
% | ||||||||||||
|
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 12) | |||||||||||||||||||||
|
(Unaudited, in thousands, except per barrel amounts) | |||||||||||||||||||||
|
Three Months Ended |
Three Months Ended | ||||||||||||||||||||
|
September 30, 2017 |
September 30, 2016 | ||||||||||||||||||||
|
RECONCILIATION OF GROSS MARGIN TO GROSS |
$ |
per barrel of throughput |
$ |
per barrel of | |||||||||||||||||
|
Calculation of gross margin: |
|||||||||||||||||||||
|
Revenues |
$ |
5,478,951 |
$ |
70.09 |
$ |
4,513,204 |
$ |
62.39 |
|||||||||||||
|
Less: Cost of products and other |
4,352,061 |
55.67 |
3,862,580 |
53.39 |
|||||||||||||||||
|
Less: Refinery operating expenses |
389,591 |
4.98 |
404,045 |
5.59 |
|||||||||||||||||
|
Less: Refinery depreciation expenses |
70,338 |
0.90 |
51,337 |
0.71 |
|||||||||||||||||
|
Gross margin |
$ |
666,961 |
$ |
8.54 |
$ |
195,242 |
$ |
2.70 |
|||||||||||||
|
Less: Revenues of PBFX |
(65,494) |
(0.84) |
(48,433) |
(0.67) |
|||||||||||||||||
|
Add: Affiliate cost of sales of PBFX |
2,611 |
0.03 |
2,164 |
0.03 |
|||||||||||||||||
|
Add: Refinery operating expenses |
389,591 |
4.98 |
404,045 |
5.59 |
|||||||||||||||||
|
Add: Refinery depreciation expense |
70,338 |
0.90 |
51,337 |
0.71 |
|||||||||||||||||
|
Gross refining margin |
$ |
1,064,007 |
$ |
13.61 |
$ |
604,355 |
$ |
8.36 |
|||||||||||||
|
Special Items (Note 5): |
|||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 6) |
(265,077) |
(3.39) |
(103,990) |
(1.44) |
|||||||||||||||||
|
Gross refining margin excluding special items (Note 5) |
$ |
798,930 |
$ |
10.22 |
$ |
500,365 |
$ |
6.92 |
|||||||||||||
|
Nine Months Ended |
Nine Months Ended | ||||||||||||||||||||
|
September 30, 2017 |
September 30, 2016 | ||||||||||||||||||||
|
RECONCILIATION OF GROSS MARGIN TO GROSS |
$ |
per barrel of |
$ |
per barrel of | |||||||||||||||||
|
Calculation of gross margin: |
|||||||||||||||||||||
|
Revenues |
$ |
15,250,649 |
$ |
71.07 |
$ |
11,171,856 |
$ |
57.28 |
|||||||||||||
|
Less: Cost of products and other |
13,154,521 |
61.30 |
9,524,119 |
48.83 |
|||||||||||||||||
|
Less: Refinery operating expenses |
1,225,014 |
5.71 |
972,223 |
4.98 |
|||||||||||||||||
|
Less: Refinery depreciation expenses |
181,238 |
0.84 |
151,473 |
0.78 |
|||||||||||||||||
|
Gross margin |
$ |
689,876 |
$ |
3.22 |
$ |
524,041 |
$ |
2.69 |
|||||||||||||
|
Less: Revenues of PBFX |
(188,300) |
(0.88) |
(125,641) |
(0.64) |
|||||||||||||||||
|
Add: Affiliate cost of sales of PBFX |
5,041 |
0.02 |
7,486 |
0.04 |
|||||||||||||||||
|
Add: Refinery operating expenses |
1,225,014 |
5.71 |
972,223 |
4.98 |
|||||||||||||||||
|
Add: Refinery depreciation expense |
181,238 |
0.84 |
151,473 |
0.78 |
|||||||||||||||||
|
Gross refining margin |
$ |
1,912,869 |
$ |
8.91 |
$ |
1,529,582 |
$ |
7.85 |
|||||||||||||
|
Special Items (Note 5): |
|||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 6) |
(97,943) |
(0.45) |
(320,833) |
(1.65) |
|||||||||||||||||
|
Gross refining margin excluding special items (Note 5) |
$ |
1,814,926 |
$ |
8.46 |
$ |
1,208,749 |
$ |
6.20 |
|||||||||||||
|
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, the company determined that it would revise the presentation of certain line items on its consolidated statements of operations to enhance its 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 the company's historical consolidated income from operations or net income, nor does it have any impact on its 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 the company's results across the periods presented and facilitates an understanding of the company's operating results. The company also uses these measures to evaluate its operating performance. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The differences between adjusted fully-converted and GAAP results are explained in footnotes 3 through 8. | |||||||||||||||||||||||||
|
(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 the company's statutory corporate tax rate of approximately 39.4% and 39.6% 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. | |||||||||||||||||||||||||
|
(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") and debt extinguishment costs. LCM is a GAAP guideline related to inventory valuation that requires inventory to be stated at the lower of cost or market. Our inventories are stated at the lower of cost or market. Cost is determined using last-in, first-out (LIFO) inventory valuation methodology, in which the most recently incurred costs are charged to cost of sales and inventories are valued at base layer acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and net realizable selling price of the inventory. In periods where the market price of our inventory declines substantially, cost values of inventory may exceed market values. In such instances, we record an adjustment to write down the value of inventory to market value in accordance with GAAP. In subsequent periods, the value of inventory is reassessed and an LCM adjustment is recorded to reflect the net change in the LCM inventory reserve between the prior period and the current period. Changes in the TRA reflect charges or benefits attributable to changes in our obligation under the TRA due to factors out of our control such as changes in tax rates. Debt extinguishment costs reflect the difference between the carrying value of our 2020 Senior Secured Notes on the date that they were reacquired and the amount for which they were reacquired. Although we believe that Non-GAAP financial measures excluding the impact of special items provide useful supplemental information to investors regarding the results and performance of our business and allow for useful period-over-period comparisons, such Non-GAAP measures should only be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP. | |||||||||||||||||||||||||
|
(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 |
|||||||||||||||||||||
|
June 30, |
763,122 |
900,493 |
|||||||||||||||||||||||
|
September 30, |
498,045 |
796,503 |
|||||||||||||||||||||||
|
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 |
Nine Months Ended | ||||||||||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||||||||||||
|
Net LCM inventory |
$ |
265,077 |
$ |
103,990 |
$ |
97,943 |
$ |
320,833 |
|||||||||||||||||
|
Net LCM inventory |
160,743 |
62,810 |
59,393 |
193,783 |
|||||||||||||||||||||
|
Additionally, during both the three and nine months ended September 30, 2017 we recorded a change in TRA that increased operating income and net income by $0.6 million and $0.3 million, respectively. During the three and nine months ended September 30, 2016 we recorded a change in TRA that decreased operating income and net income by $3.1 million and $1.9 million, respectively. The changes in the tax receivable agreement liability reflect charges or benefits attributable to changes in our obligation under the tax receivable agreement due to factors out of our control such as changes in tax rates.
Furthermore, during the nine months ended September 30, 2017, we recorded pre-tax debt extinguishment costs of $25.5 million related to the redemption of the 2020 Senior Secured Notes. These nonrecurring charges decreased net income by $15.4 million for the nine months ended September 30, 2017. There were no such costs in the three months ended September 30, 2017 nor in the three or nine months ended September 30, 2016. | |||||||||||||||||||||||||
|
(7) 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. | |||||||||||||||||||||||||
|
(8) 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 and nine months ended September 30, 2017 and 2016, respectively. Common stock equivalents exclude the effects of options and warrants to purchase 6,484,650 and 6,554,650 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three and nine months ended September 30, 2017, respectively. Common stock equivalents exclude the effects of options and warrants to purchase 5,161,125 and 4,364,250 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three and nine months ended September 30, 2016, respectively. | |||||||||||||||||||||||||
|
(9) 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. | |||||||||||||||||||||||||
|
(10) We operate in two reportable segments; Refining and Logistics. Our operations that are not included in the Refining and Logistics segments are included in Corporate. As of September 30, 2017, the Refining segment includes the operations of our oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio, New Orleans, Louisiana and Torrance, California. The Logistics segment includes the operations of PBF Logistics LP ("PBFX"), a growth-oriented master limited partnership which owns or leases, operates, develops and acquires crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. PBFX's assets consist of rail and truck terminals and unloading racks, tank farms and pipelines, a substantial portion of which were acquired from or contributed by PBF LLC and are located at, or nearby, the company's refineries. PBFX provides various rail, truck and marine terminaling services, pipeline transportation services and storage services to PBF Holding and/or its subsidiaries and third party customers through fee-based commercial agreements. In connection with the contribution by PBF LLC of the limited liability interests in PNGPC to PBFX, the accompanying segment information has been retrospectively adjusted to include the historical results of PNGPC in the Logistics segment for all periods presented prior to such contribution.
PBFX currently does not generate significant third party revenue and intersegment related-party revenues are eliminated in consolidation. Prior to the PBFX initial public offering, PBFX was not considered to be a separate reportable segment. From a PBF Energy perspective, the company's chief operating decision maker evaluates the Logistics segment as a whole without regard to any of PBFX's individual segments. | |||||||||||||||||||||||||
|
(11) As reported by Platts. | |||||||||||||||||||||||||
|
(12) 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. | |||||||||||||||||||||||||
|
(13) Represents refinery operating expenses, including corporate-owned logistics assets, excluding depreciation and amortization, divided by total crude oil and feedstocks throughput. | |||||||||||||||||||||||||
|
(14) 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. | |||||||||||||||||||||||||
|
(15) 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. | |||||||||||||||||||||||||
|
(16) The Logistics segment includes capital expenditures of $10.1 million for the acquisition of the Toledo Terminal by PBFX on April 17, 2017. | |||||||||||||||||||||||||
|
(17) The total debt to capitalization ratio is calculated by dividing total debt by the sum of total debt and total equity. This ratio is a measurement which is presented in our annual and interim filings and management believes this ratio is useful to investors in analyzing our leverage. Net debt and the net debt to capitalization ratio are Non-GAAP measures. Net debt is calculated by subtracting cash and cash equivalents and marketable securities from total debt. We believe these measurements are also useful to investors since we have the ability to and may decide to use a portion of our cash and cash equivalents to retire or pay down our debt. Marketable securities included in net debt fully collateralized PBFX's Term Loan prior to its repayment. Additionally, as described in footnote 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. | |||||||||||||||||||||||||
|
September 30, |
December 31, | |||||||||
|
2017 |
2016 | |||||||||
|
Total debt |
$ |
2,165,168 |
$ |
2,148,234 |
||||||
|
Total equity |
2,675,362 |
2,570,684 |
||||||||
|
Total capitalization |
$ |
4,840,530 |
$ |
4,718,918 |
||||||
|
Total debt |
$ |
2,165,168 |
$ |
2,148,234 |
||||||
|
Total equity excluding special items |
2,972,751 |
2,912,375 |
||||||||
|
Total capitalization excluding special items |
$ |
5,137,919 |
$ |
5,060,609 |
||||||
|
Total equity |
$ |
2,675,362 |
$ |
2,570,684 |
||||||
|
Special Items (Note 5) |
||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 6) |
498,045 |
595,988 |
||||||||
|
Add: Change in tax receivable agreement liability (Note 6) |
(26,073) |
(25,508) |
||||||||
|
Add: Debt extinguishment costs (Note 6) |
25,451 |
— |
||||||||
|
Less: Recomputed income taxes on special items (Note 6) |
(200,034) |
(228,789) |
||||||||
|
Net impact of special items to equity |
297,389 |
341,691 |
||||||||
|
Total equity excluding special items (Note 5) |
$ |
2,972,751 |
$ |
2,912,375 |
||||||
|
Total debt |
$ |
2,165,168 |
$ |
2,148,234 |
||||||
|
Less: Cash, cash equivalents and marketable securities |
300,891 |
786,298 |
||||||||
|
Net Debt |
$ |
1,864,277 |
$ |
1,361,936 |
||||||
|
Total debt to capitalization ratio |
45 |
% |
46 |
% | ||||||
|
Total debt to capitalization ratio, excluding special items |
42 |
% |
42 |
% | ||||||
|
Net debt to capitalization ratio |
41 |
% |
35 |
% | ||||||
|
Net debt to capitalization ratio, excluding special items |
39 |
% |
32 |
% | ||||||
|
(18) 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. |
|
(19) 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. |
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-reports-third-quarter-2017-results-declares-dividend-of-030-per-share-300548263.html
SOURCE PBF Energy Inc.
Article Date
11/2/2017PBF Logistics LP Announces Pricing of Upsized Offering of $175 Million of Additional 6.875% Senior Notes due 2023
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Oct. 3, 2017 /PRNewswire/ -- PBF Logistics LP (the "Partnership") (NYSE: PBFX) announced today the pricing of $175 million in aggregate principal amount of additional 6.875% Senior Notes due 2023 (the "notes"). This represents an increase of $25 million over the aggregate principal amount previously announced. The notes will be issued to the public at an offering price of 102% of the principal amount thereof, plus accrued interest from May 15, 2017. The Partnership anticipates that consummation of the offering will occur on October 6, 2017 and intends to use the net proceeds from the offering to repay a portion of the indebtedness outstanding under its revolving credit facility and for general partnership purposes.
The notes will be issued as additional notes under the indenture governing the Partnership's 6.875% Senior Notes due 2023 that were issued on May 12, 2015 (the "existing notes"). The notes will be treated as a single series with the existing notes and will have the same terms as those of the existing notes, except that (i) the notes will be subject to a separate registration rights agreement and (ii) the notes will be issued initially under CUSIP numbers different from the existing notes. Holders who exchange their notes in a future registered exchange offer will receive registered notes that are expected to share a single CUSIP number with the existing notes and it is expected that such notes and the existing notes will thereafter be fungible.
The notes to be offered and sold have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and unless so registered, the notes may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The notes purchased by the initial purchasers will be offered and sold only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the United States pursuant to Regulation S under the Securities Act.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of these securities, nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such states.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting the Partnership's logistics and other assets and other risks inherent in the Partnership's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see the Partnership's filings with the SEC including its most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2017 and June 30, 2017. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-lp-announces-pricing-of-upsized-offering-of-175-million-of-additional-6875-senior-notes-due-2023-300530363.html
SOURCE PBF Logistics LP
Article Date
10/3/201710/3/2017 - PBF Logistics LP Announces Intention to Offer $150 Million of Additional 6.875% Senior Notes due 2023
PBF Logistics LP Announces Intention to Offer $150 Million of Additional 6.875% Senior Notes due 2023
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Oct. 3, 2017 /PRNewswire/ -- PBF Logistics LP (the "Partnership") (NYSE:PBFX) today announced that it intends to offer $150 million aggregate principal amount of additional 6.875% Senior Notes due 2023 (the "notes"). The Partnership intends to use the net proceeds from the offering to repay a portion of the indebtedness outstanding under its revolving credit facility and for general partnership purposes.
The notes will be issued as additional notes under the indenture governing the Partnership's 6.875% Senior Notes due 2023 that were issued on May 12, 2015 (the "existing notes"). The notes are expected to be treated as a single series with the existing notes and will have the same terms as those of the existing notes, except that (i) the notes will be subject to a separate registration rights agreement and (ii) the notes will be issued initially under CUSIP numbers different from the existing notes. Holders who exchange their notes in a future registered exchange offer will receive registered notes that are expected to share a single CUSIP number with the existing notes and it is expected that such notes and the existing notes will thereafter be fungible.
The notes will be offered in a private placement and are expected to be resold by the initial purchasers to qualified institutional buyers under Rule 144A and to persons outside the United States pursuant to Regulation S under the Securities Act of 1933, as amended (the "Securities Act"). The offer of the notes will be made only by means of an offering memorandum to qualified investors and has not been registered under the Securities Act or any applicable state securities laws, and the notes may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act.
This press release is being issued pursuant to Rule 135c under the Securities Act, and is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of any securities in any jurisdiction in which such offer, solicitation or sale is unlawful.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting the Partnership's logistics and other assets, and other risks inherent in the Partnership's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see the Partnership's filings with the SEC including its most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2017 and June 30, 2017. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-lp-announces-intention-to-offer-150-million-of-additional-6875-senior-notes-due-2023-300529824.html
SOURCE PBF Logistics LP
Article Date
10/3/2017PBF Energy to Release Third Quarter 2017 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Sept. 19, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that it will release its earnings results for the third quarter 2017 on Thursday, November 2, 2017. The company will host a conference call and webcast regarding third quarter results and other business matters on Thursday, November 2, 2017, 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) 831-8731 or (203) 518-9713, conference ID: PBFQ317. The audio replay will be available two hours after the end of the call through November 16, 2017, by dialing (800) 723-1517 or (402) 220-2659.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-to-release-third-quarter-2017-earnings-results-300522362.html
SOURCE PBF Energy Inc.
Article Date
9/19/2017PBF Logistics to Release Third Quarter 2017 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Sept. 19, 2017 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that it will release its earnings results for the third quarter 2017 on Thursday, November 2, 2017. The company will host a conference call and webcast regarding third quarter results and other business matters on Thursday, November 2, 2017, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (866) 342-8591 or (203) 518-9822, conference ID: PBFXQ317. The audio replay will be available two hours after the end of the call through November 16, 2017, by dialing (800) 283-4641 or (402) 220-0851.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-release-third-quarter-2017-earnings-results-300522359.html
SOURCE PBF Logistics LP
Article Date
9/19/2017PBF Energy to Participate in the Barclays CEO Energy-Power Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Sept. 1, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) announced today that the company's management will be participating in the Barclays CEO Energy-Power Conference on September 6, 2017.
The company's presentation materials will be available on the Investor Relations section of the PBF Energy website at http://investors.pbfenergy.com/.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-to-participate-in-the-barclays-ceo-energy-power-conference-300513031.html
SOURCE PBF Energy Inc.
Article Date
9/1/2017PBF Logistics to attend Citi Infrastructure Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Aug. 14, 2017 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that the partnership's management will be meeting with investors and analysts on August 16, 2017, at the Citi One-on-One MLP / Midstream Infrastructure Conference in Las Vegas, Nevada.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-to-attend-citi-infrastructure-conference-300503837.html
SOURCE PBF Logistics LP
Article Date
8/14/2017PBF Logistics Increases Quarterly Distribution to $0.47 per Unit and Announces Second Quarter 2017 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Aug. 3, 2017 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX, the "Partnership") announced today second quarter 2017 net income attributable to the partners of $23.3 million, or $0.49 per common unit. During the quarter, the Partnership generated cash from operations of approximately $36.9 million, earnings before interest, income taxes, depreciation, and amortization ("EBITDA") of $35.6 million and distributable cash flow of $30.5 million. Included in our general and administrative expenses for the second quarter are $3.4 million, or $0.08 per common unit, of expenses related to stock-based compensation and acquisitions.
"Our second quarter performance reflects another solid operational quarter from our expanding asset base and the continued growth of our portfolio with the April acquisition of the Toledo Terminal," said PBF Logistics GP LLC Chief Executive Officer, Tom Nimbley. "Our Paulsboro natural gas pipeline and Chalmette storage projects are progressing well, and our business development effort continues to generate a number of promising organic projects and a robust third-party acquisition pipeline. In light of our continued growth, through both acquisitions and organic projects, we are pleased that the board of directors approved our eleventh consecutive quarterly distribution increase to $0.47 per common unit."
As of June 30, 2017, the Partnership had approximately $218.3 million of liquidity, including approximately $51.1 million in cash and cash equivalents, and access to approximately $167.2 million under its existing revolving credit facility. The Partnership intends to use its financial resources to fund organic growth projects, third-party acquisitions and future drop-downs.
Toledo Terminal Acquisition
As previously disclosed on April 17, 2017, a wholly-owned subsidiary of the Partnership acquired the Toledo, Ohio, refined products terminal assets of Sunoco Logistics Partners L.P. for $10.0 million in cash. Located adjacent to PBF Energy's Toledo refinery, the Toledo Terminal is comprised of a 10-bay truck rack and over 110,000 barrels of chemicals, clean product and additive storage capacity.
PBF Logistics Announces Increased Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.47 per common unit. The distribution is payable on August 31, 2017, to unitholders of record at the close of business on August 15, 2017.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA should not be considered an alternative to net income, income from operations, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility.
Conference Call Information
The Partnership's senior management will host a conference call and webcast regarding quarterly results and other business matters on Thursday, August 3, 2017, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be heard by dialing (888) 632-3384 or (785) 424-1675, conference ID: PBFXQ217. The audio replay will be available two hours after the end of the call through August 17, 2017, by dialing (800) 839-3413 or (402) 220-7236.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including the Annual Report on Form 10-K. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present our results of operations, related operational information, and reconciliations of net income and net cash provided by operating activity to EBITDA and distributable cash flow (both as defined below) of PBFX for the three and six months ended June 30, 2017 and 2016. The financial information presented contains the financial results of PBFX and PNGPC (as defined below) prior to our acquisition on February 28, 2017.
On April 17, 2017, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), acquired the Toledo, Ohio refined products terminal assets (the "Toledo Terminal") from Sunoco Logistics Partners L.P. (the "Toledo Terminal Acquisition"). The Toledo Terminal is directly connected to, and currently supplied by, PBF Holding Company LLC's ("PBF Holding") Toledo Refinery. The Toledo Terminal is comprised of a ten-bay truck rack and over 110,000 barrels of chemicals, clean product and additive storage capacity.
On February 28, 2017, our wholly-owned subsidiary, PBFX Operating Company LP ("PBFX Op Co"), acquired from PBF Energy Company LLC ("PBF LLC"), a subsidiary of PBF Energy Inc. ("PBF Energy") all of the issued and outstanding limited liability company interests of Paulsboro Natural Gas Pipeline Company LLC ("PNGPC") (the "PNGPC Acquisition"). PNGPC owns and operates an existing interstate natural gas pipeline which serves PBF Holding's Paulsboro Refinery (the "Paulsboro Natural Gas Pipeline") and is subject to regulation by the Federal Energy Regulatory Commission ("FERC"). PNGPC has FERC approval for, and is in the process of constructing, a new 24" pipeline to replace the existing pipeline, which was placed in service in August 2017.
The PNGPC Acquisition was a transfer between entities under common control. Accordingly, the financial information contained herein of PBFX has been retrospectively adjusted to include the historical results of PNGPC for all periods presented. The results of PNGPC are included in the Transportation and Terminaling segment.
On August 31, 2016, PBFX Op Co acquired from PBF LLC a 50% equity interest in Torrance Valley Pipeline Company LLC ("TVPC"), with the other 50% equity interest continuing to be held by a subsidiary of PBF LLC, TVP Holding Company LLC ("TVP Holding") (the "TVPC Acquisition"). TVPC owns the 189-mile San Joaquin Valley pipeline system with capacity of approximately 110,000 barrels per day ("bpd") (the "Torrance Valley Pipeline"), which supports PBF Holding's Torrance Refinery. The Torrance Valley Pipeline consists of the M55, M1 and M70 pipeline systems, including 11 pipeline stations with storage capacity and truck unloading capability at two of the stations. We consolidate the financial results of TVPC, and record a noncontrolling interest for the 50% economic interest in TVPC held by TVP Holding.
On April 29, 2016, our wholly-owned subsidiary, PLPT, purchased four refined product terminals (the "East Coast Terminals") from an affiliate of Plains All American Pipeline, L.P. (the "Plains Asset Purchase"). The East Coast Terminals have subsequently generated third-party revenues. Prior to the Plains Asset Purchase, we did not record third-party revenue, except for third-party revenue generated by the Delaware City Products Pipeline prior to August 2013.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before interest expense, income tax expense, depreciation and amortization expense. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense, income tax expense, depreciation and amortization expense attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less net cash paid for interest, maintenance capital expenditures and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is distributable cash flow divided by total distribution declared. EBITDA, EBITDA attributable to PBFX and distributable cash flow are not financial measures prescribed by U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX and distributable cash flow are not financial measures prescribed by GAAP ("non-GAAP"), they are supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA and EBITDA attributable to PBFX provides useful information to investors in assessing our financial condition and results of operations. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, as it provides investors with an enhanced perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
|
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||||
|
2017 |
2016* |
2017 |
2016* | |||||||||||||
|
Revenue (a): |
||||||||||||||||
|
Affiliate |
$ |
58,355 |
$ |
37,965 |
$ |
114,557 |
$ |
74,514 |
||||||||
|
Third-party |
3,974 |
2,694 |
8,249 |
2,694 |
||||||||||||
|
Total revenue |
62,329 |
40,659 |
122,806 |
77,208 |
||||||||||||
|
Costs and expenses: |
||||||||||||||||
|
Operating and maintenance expenses (a) |
15,504 |
7,890 |
31,273 |
13,982 |
||||||||||||
|
General and administrative expenses |
6,098 |
6,910 |
9,413 |
9,476 |
||||||||||||
|
Depreciation and amortization |
5,710 |
2,349 |
11,062 |
4,196 |
||||||||||||
|
Total costs and expenses |
27,312 |
17,149 |
51,748 |
27,654 |
||||||||||||
|
Income from operations |
35,017 |
23,510 |
71,058 |
49,554 |
||||||||||||
|
Other expense: |
||||||||||||||||
|
Interest expense, net |
(7,509) |
(7,212) |
(15,077) |
(14,018) |
||||||||||||
|
Amortization of loan fees |
(377) |
(422) |
(793) |
(845) |
||||||||||||
|
Net income |
27,131 |
15,876 |
55,188 |
34,691 |
||||||||||||
|
Less: Net loss attributable to Predecessor |
— |
(378) |
(150) |
(657) |
||||||||||||
|
Less: Net income attributable to noncontrolling interest (g) |
3,820 |
— |
7,419 |
— |
||||||||||||
|
Net income attributable to the partners |
23,311 |
16,254 |
47,919 |
35,348 |
||||||||||||
|
Less: Net income attributable to the IDR holder |
2,107 |
882 |
3,793 |
1,639 |
||||||||||||
|
Net income attributable to PBF Logistics LP unitholders |
$ |
21,204 |
$ |
15,372 |
$ |
44,126 |
$ |
33,709 |
||||||||
|
Net income per limited partner unit (h): |
||||||||||||||||
|
Common units - basic |
$ |
0.49 |
$ |
0.41 |
$ |
1.04 |
$ |
0.94 |
||||||||
|
Common units - diluted |
0.49 |
0.41 |
1.04 |
0.94 |
||||||||||||
|
Subordinated units - basic and diluted |
0.52 |
0.41 |
1.07 |
0.95 |
||||||||||||
|
Weighted-average limited partner units outstanding (h): |
||||||||||||||||
|
Common units - basic |
31,428,577 |
21,248,969 |
28,784,479 |
19,873,294 |
||||||||||||
|
Common units - diluted |
31,485,563 |
21,264,690 |
28,788,463 |
19,881,339 |
||||||||||||
|
Subordinated units - basic and diluted |
10,649,228 |
15,886,553 |
13,253,423 |
15,886,553 |
||||||||||||
|
Cash distributions declared per unit (e) |
$ |
0.47 |
$ |
0.43 |
$ |
0.93 |
$ |
0.85 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
____________ | ||||||||||||||||
|
* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition on February 28, 2017. | ||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
|
(Unaudited, in thousands) | ||||||||||||
|
Six Months Ended June 30, 2017 | ||||||||||||
|
PBF Logistics LP |
PNGPC* |
Consolidated Results | ||||||||||
|
Revenue: |
||||||||||||
|
Affiliate |
$ |
114,557 |
$ |
— |
$ |
114,557 |
||||||
|
Third-party |
8,249 |
— |
8,249 |
|||||||||
|
Total revenue |
122,806 |
— |
122,806 |
|||||||||
|
Costs and expenses: |
||||||||||||
|
Operating and maintenance expenses |
31,233 |
40 |
31,273 |
|||||||||
|
General and administrative expenses |
9,413 |
— |
9,413 |
|||||||||
|
Depreciation and amortization |
10,952 |
110 |
11,062 |
|||||||||
|
Total costs and expenses |
51,598 |
150 |
51,748 |
|||||||||
|
Income (loss) from operations |
71,208 |
(150) |
71,058 |
|||||||||
|
Other expense: |
||||||||||||
|
Interest expense, net |
(15,077) |
— |
(15,077) |
|||||||||
|
Amortization of loan fees |
(793) |
— |
(793) |
|||||||||
|
Net income (loss) |
55,338 |
(150) |
55,188 |
|||||||||
|
Less: Net loss attributable to Predecessor |
— |
(150) |
(150) |
|||||||||
|
Less: Net income attributable to noncontrolling interest (g) |
7,419 |
— |
7,419 |
|||||||||
|
Net income attributable to the partners |
47,919 |
— |
47,919 |
|||||||||
|
Less: Net income attributable to the IDR holder |
3,793 |
— |
3,793 |
|||||||||
|
Net income attributable to PBF Logistics LP unitholders |
$ |
44,126 |
$ |
— |
$ |
44,126 |
||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
____________ | ||||||||||||
|
* Reflects the results of PNGPC prior to our acquisition on February 28, 2017. | ||||||||||||
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
|
(Unaudited, in thousands) | ||||||||||||
|
Three Months Ended June 30, 2016 | ||||||||||||
|
PBF Logistics LP |
PNGPC* |
Consolidated Results | ||||||||||
|
Revenue: |
||||||||||||
|
Affiliate |
$ |
37,965 |
$ |
— |
$ |
37,965 |
||||||
|
Third-party |
2,694 |
— |
2,694 |
|||||||||
|
Total revenue |
40,659 |
— |
40,659 |
|||||||||
|
Costs and expenses: |
||||||||||||
|
Operating and maintenance expenses |
7,720 |
170 |
7,890 |
|||||||||
|
General and administrative expenses |
6,909 |
1 |
6,910 |
|||||||||
|
Depreciation and amortization |
2,142 |
207 |
2,349 |
|||||||||
|
Total costs and expenses |
16,771 |
378 |
17,149 |
|||||||||
|
Income (loss) from operations |
23,888 |
(378) |
23,510 |
|||||||||
|
Other expense: |
||||||||||||
|
Interest expense, net |
(7,212) |
— |
(7,212) |
|||||||||
|
Amortization of loan fees |
(422) |
— |
(422) |
|||||||||
|
Net income (loss) |
16,254 |
(378) |
15,876 |
|||||||||
|
Less: Net loss attributable to Predecessor |
— |
(378) |
(378) |
|||||||||
|
Net income attributable to the partners |
16,254 |
— |
16,254 |
|||||||||
|
Less: Net income attributable to the IDR holder |
882 |
— |
882 |
|||||||||
|
Net income attributable to PBF Logistics LP unitholders |
$ |
15,372 |
$ |
— |
$ |
15,372 |
||||||
|
____________ | ||||||||||||
|
* Reflects the results of PNGPC prior to our acquisition on February 28, 2017. | ||||||||||||
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
|
(Unaudited, in thousands) | ||||||||||||
|
Six Months Ended June 30, 2016 | ||||||||||||
|
PBF Logistics LP |
PNGPC* |
Consolidated Results | ||||||||||
|
Revenue: |
||||||||||||
|
Affiliate |
$ |
74,514 |
$ |
— |
$ |
74,514 |
||||||
|
Third-party |
2,694 |
— |
2,694 |
|||||||||
|
Total revenue |
77,208 |
— |
77,208 |
|||||||||
|
Costs and expenses: |
||||||||||||
|
Operating and maintenance expenses |
13,741 |
241 |
13,982 |
|||||||||
|
General and administrative expenses |
9,474 |
2 |
9,476 |
|||||||||
|
Depreciation and amortization |
3,782 |
414 |
4,196 |
|||||||||
|
Total costs and expenses |
26,997 |
657 |
27,654 |
|||||||||
|
Income (loss) from operations |
50,211 |
(657) |
49,554 |
|||||||||
|
Other expense: |
||||||||||||
|
Interest expense, net |
(14,018) |
— |
(14,018) |
|||||||||
|
Amortization of loan fees |
(845) |
— |
(845) |
|||||||||
|
Net income (loss) |
35,348 |
(657) |
34,691 |
|||||||||
|
Less: Net loss attributable to Predecessor |
— |
(657) |
(657) |
|||||||||
|
Net income attributable to the partners |
35,348 |
— |
35,348 |
|||||||||
|
Less: Net income attributable to the IDR holder |
1,639 |
— |
1,639 |
|||||||||
|
Net income attributable to PBF Logistics LP unitholders |
$ |
33,709 |
$ |
— |
$ |
33,709 |
||||||
|
____________ | ||||||||||||
|
* Reflects the results of PNGPC prior to our acquisition on February 28, 2017. | ||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||||||||
|
2017 |
2016* |
2017 |
2016* | |||||||||||||||||
|
Transportation and Terminaling Segment |
||||||||||||||||||||
|
Terminals |
||||||||||||||||||||
|
Total throughput (bpd) (b)(d) |
223,639 |
171,698 |
209,618 |
162,867 |
||||||||||||||||
|
Lease tank capacity (average lease capacity barrels per month) |
2,374,420 |
2,054,552 |
2,250,314 |
2,054,552 |
||||||||||||||||
|
Pipelines |
||||||||||||||||||||
|
Total throughput (bpd) (b)(d) |
121,532 |
60,395 |
133,694 |
48,221 |
||||||||||||||||
|
Lease tank capacity (average lease capacity barrels per month) |
750,597 |
N/A |
1,060,197 |
N/A |
||||||||||||||||
|
Storage Segment |
||||||||||||||||||||
|
Storage capacity reserved (average shell capacity barrels per month) |
3,787,736 |
3,574,613 |
3,739,838 |
3,614,597 |
||||||||||||||||
|
Cash Flow Information: |
||||||||||||||||||||
|
Net cash provided by (used in): |
||||||||||||||||||||
|
Operating activities |
$ |
36,856 |
$ |
16,827 |
$ |
90,653 |
$ |
42,599 |
||||||||||||
|
Investing activities |
3,136 |
(2,423) |
(16,361) |
(3,689) |
||||||||||||||||
|
Financing activities |
(29,768) |
6,215 |
(87,459) |
(7,705) |
||||||||||||||||
|
Net change in cash |
$ |
10,224 |
$ |
20,619 |
$ |
(13,167) |
$ |
31,205 |
||||||||||||
|
Other Financial Information: |
||||||||||||||||||||
|
EBITDA attributable to PBFX (c) |
$ |
35,552 |
$ |
26,030 |
$ |
72,022 |
$ |
53,993 |
||||||||||||
|
Distributable cash flow (c) |
$ |
30,499 |
$ |
20,038 |
$ |
59,073 |
$ |
41,485 |
||||||||||||
|
Quarterly distribution declared per unit (e) |
$ |
0.47 |
$ |
0.43 |
$ |
0.93 |
$ |
0.85 |
||||||||||||
|
Distribution (e): |
||||||||||||||||||||
|
Common units |
$ |
20,000 |
$ |
9,472 |
$ |
32,272 |
$ |
18,723 |
||||||||||||
|
Subordinated units - PBF LLC |
— |
6,831 |
7,308 |
13,503 |
||||||||||||||||
|
IDR holder - PBF LLC |
2,107 |
882 |
3,793 |
1,639 |
||||||||||||||||
|
Total distribution |
$ |
22,107 |
$ |
17,185 |
$ |
43,373 |
$ |
33,865 |
||||||||||||
|
Coverage ratio (c) |
1.38x |
1.17x |
1.36x |
1.23x |
||||||||||||||||
|
Capital expenditures, including acquisitions |
$ |
36,918 |
$ |
100,687 |
$ |
56,385 |
$ |
101,813 |
||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
____________ | ||||||||||||||||||||
|
* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition on February 28, 2017. | ||||||||||||||||||||
|
PBF LOGISTICS LP | |||||||||
|
EARNINGS RELEASE TABLES | |||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | |||||||||
|
(Unaudited, in thousands) | |||||||||
|
June 30, |
December 31, | ||||||||
|
Balance Sheet Information: |
2017 |
2016 | |||||||
|
Cash, cash equivalents and marketable securities (f) |
$ |
51,054 |
$ |
104,245 |
|||||
|
Property, plant and equipment, net |
664,431 |
608,802 |
|||||||
|
Total assets |
751,155 |
756,861 |
|||||||
|
Total debt (f) |
544,404 |
571,675 |
|||||||
|
Total liabilities |
600,629 |
604,290 |
|||||||
|
Partners' equity |
(23,521) |
(27,311) |
|||||||
|
Noncontrolling interest (g) |
174,047 |
179,882 |
|||||||
|
Total liabilities and equity |
751,155 |
756,861 |
|||||||
|
See Footnotes to Earnings Release Tables | |||||||||
|
PBF LOGISTICS LP | |||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||
|
TO EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||||
|
2017 |
2016* |
2017 |
2016* | ||||||||||||||
|
Reconciliation of net income to EBITDA and distributable cash flow (c): |
|||||||||||||||||
|
Net income |
$ |
27,131 |
$ |
15,876 |
$ |
55,188 |
$ |
34,691 |
|||||||||
|
Interest expense, net |
7,509 |
7,212 |
15,077 |
14,018 |
|||||||||||||
|
Amortization of loan fees |
377 |
422 |
793 |
845 |
|||||||||||||
|
Depreciation and amortization |
5,710 |
2,349 |
11,062 |
4,196 |
|||||||||||||
|
EBITDA |
40,727 |
25,859 |
82,120 |
53,750 |
|||||||||||||
|
Less: Predecessor EBITDA |
— |
(171) |
(40) |
(243) |
|||||||||||||
|
Less: Noncontrolling interest EBITDA (g) |
5,175 |
— |
10,138 |
— |
|||||||||||||
|
EBITDA attributable to PBFX |
35,552 |
26,030 |
72,022 |
53,993 |
|||||||||||||
|
Non-cash unit-based compensation expense |
3,028 |
1,981 |
3,708 |
2,710 |
|||||||||||||
|
Cash interest |
(7,866) |
(7,212) |
(15,617) |
(14,018) |
|||||||||||||
|
Maintenance capital expenditures |
(215) |
(761) |
(1,040) |
(1,200) |
|||||||||||||
|
Distributable cash flow |
$ |
30,499 |
$ |
20,038 |
$ |
59,073 |
$ |
41,485 |
|||||||||
|
Reconciliation of net cash provided by operating activities to EBITDA and distributable cash flow (c): |
|||||||||||||||||
|
Net cash provided by operating activities |
$ |
36,856 |
$ |
16,827 |
$ |
90,653 |
$ |
42,599 |
|||||||||
|
Change in operating assets and liabilities |
(610) |
3,801 |
(19,902) |
(157) |
|||||||||||||
|
Interest expense, net |
7,509 |
7,212 |
15,077 |
14,018 |
|||||||||||||
|
Non-cash unit-based compensation expense |
(3,028) |
(1,981) |
(3,708) |
(2,710) |
|||||||||||||
|
EBITDA |
40,727 |
25,859 |
82,120 |
53,750 |
|||||||||||||
|
Less: Predecessor EBITDA |
— |
(171) |
(40) |
(243) |
|||||||||||||
|
Less: Noncontrolling interest EBITDA (g) |
5,175 |
— |
10,138 |
— |
|||||||||||||
|
EBITDA attributable to PBFX |
35,552 |
26,030 |
72,022 |
53,993 |
|||||||||||||
|
Non-cash unit-based compensation expense |
3,028 |
1,981 |
3,708 |
2,710 |
|||||||||||||
|
Cash interest |
(7,866) |
(7,212) |
(15,617) |
(14,018) |
|||||||||||||
|
Maintenance capital expenditures |
(215) |
(761) |
(1,040) |
(1,200) |
|||||||||||||
|
Distributable cash flow |
$ |
30,499 |
$ |
20,038 |
$ |
59,073 |
$ |
41,485 |
|||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||
|
____________ | |||||||||||||||||
|
* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition on February 28, 2017. | |||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||
|
Three Months Ended June 30, 2017 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Total revenue (a) |
$ |
56,603 |
$ |
5,726 |
$ |
— |
$ |
62,329 |
||||||||
|
Depreciation and amortization expense |
5,090 |
620 |
— |
5,710 |
||||||||||||
|
Income (loss) from operations |
37,788 |
3,327 |
(6,098) |
35,017 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
7,886 |
7,886 |
||||||||||||
|
Capital expenditures, including the Toledo Terminal Acquisition |
32,540 |
4,378 |
— |
36,918 |
||||||||||||
|
Three Months Ended June 30, 2016* | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Total revenue (a) |
$ |
35,297 |
$ |
5,362 |
$ |
— |
$ |
40,659 |
||||||||
|
Depreciation and amortization expense |
1,763 |
586 |
— |
2,349 |
||||||||||||
|
Income (loss) from operations |
27,946 |
2,474 |
(6,910) |
23,510 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
7,634 |
7,634 |
||||||||||||
|
Capital expenditures, including the Plains Asset Purchase |
99,926 |
761 |
— |
100,687 |
||||||||||||
|
Six Months Ended June 30, 2017 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Total revenue (a) |
$ |
111,542 |
$ |
11,264 |
$ |
— |
$ |
122,806 |
||||||||
|
Depreciation and amortization expense |
9,841 |
1,221 |
— |
11,062 |
||||||||||||
|
Income (loss) from operations |
73,894 |
6,577 |
(9,413) |
71,058 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
15,870 |
15,870 |
||||||||||||
|
Capital expenditures, including the Toledo Terminal Acquisition |
47,833 |
8,552 |
— |
56,385 |
||||||||||||
|
Six Months Ended June 30, 2016* | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Total revenue (a) |
$ |
66,364 |
$ |
10,844 |
$ |
— |
$ |
77,208 |
||||||||
|
Depreciation and amortization expense |
2,961 |
1,235 |
— |
4,196 |
||||||||||||
|
Income (loss) from operations |
53,615 |
5,415 |
(9,476) |
49,554 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
14,863 |
14,863 |
||||||||||||
|
Capital expenditures, including the Plains Asset Purchase |
100,613 |
1,200 |
— |
101,813 |
||||||||||||
|
____________ * Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition on February 28, 2017. | ||||||||||||||||
|
Balance at June 30, 2017 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Total assets |
$ |
656,854 |
$ |
66,900 |
$ |
27,401 |
$ |
751,155 |
||||||||
|
Balance at December 31, 2016 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Total assets |
$ |
606,898 |
$ |
57,375 |
$ |
92,588 |
$ |
756,861 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF LOGISTICS LP | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
|
(Unaudited, in thousands, except per unit data) | |||||||||||
|
(a) |
See discussion of the factors affecting comparability noted on page 4. Our results of operations may not be comparable to the historical results of operations for the reasons described below: . | ||||||||||
|
(b) |
Calculated as the sum of the average throughput per day for each Terminal and Pipeline asset for the periods presented. | ||||||||||
|
(c) |
See "Non-GAAP Financial Measures" on page 4 for definitions of EBITDA, EBITDA attributable to PBFX, distributable cash flow and coverage ratio. | ||||||||||
|
(d) |
Operating information pertains to assets which are included in the Transportation and Terminaling segment. Throughput information reflects activity subsequent to execution of the commercial agreements in connection with the acquisitions of the Toledo Terminal, the Paulsboro Natural Gas Pipeline and the Torrance Valley Pipeline from PBF LLC and activity subsequent to the Plains Asset Purchase. | ||||||||||
|
(e) |
On August 3, 2017, we announced a quarterly cash distribution of $0.47 per limited partner unit based on the results of the second quarter of 2017. The distribution is payable on August 31, 2017 to PBFX unitholders of record at the close of business on August 15, 2017. The total distribution amounts include the expected distributions to be made related to the second quarter. | ||||||||||
|
(f) |
Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents and marketable securities from total debt, including our affiliate note payable. We believe this measurement is 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. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under U.S. GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of June 30, 2017 and December 31, 2016 was $493,350 and $467,430, respectively. | ||||||||||
|
(g) |
Our subsidiary, PBFX Op Co, holds a 50% controlling interest in TVPC, with the other 50% interest in TVPC owned by TVP Holding, an indirect subsidiary of PBF Holding. PBFX Op Co is also the sole managing member of TVPC. We, through our ownership of PBFX Op Co, consolidate the financial results of TVPC, and record a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated statements of operations includes the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated balance sheets includes the portion of net assets of TVPC attributable to TVP Holding. | ||||||||||
|
(h) |
PBFX bases its calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during the period. The weighted-average number of common and subordinated units reflects the conversion of the subordinated units to common units on June 1, 2017. | ||||||||||
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-logistics-increases-quarterly-distribution-to-047-per-unit-and-announces-second-quarter-2017-earnings-results-300498920.html
SOURCE PBF Logistics LP
Article Date
8/3/2017PBF Energy Reports Second Quarter 2017 Results, Declares Dividend of $0.30 Per Share
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Aug. 3, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today reported second quarter 2017 loss from operations of $111.1 million as compared to income from operations of $234.8 million for the second quarter of 2016. Excluding special items, second quarter 2017 income from operations was $39.9 million as compared to income from operations of $77.0 million for the second quarter of 2016. Special items in the second quarter 2017 results include a net, non-cash, after-tax loss of $91.6 million, or $0.81 per share, lower-of-cost-or-market ("LCM") inventory adjustment which decreased operating income and an after-tax charge of $15.4 million, or $0.14 per share, as a result of debt extinguishment costs incurred from the retirement of PBF Holding Company LLC's 8.25% senior secured notes which were redeemed during the quarter.
The company reported a second quarter 2017 net loss of $104.2 million, and a net loss attributable to PBF Energy Inc. of $109.7 million or $1.01 per share. This compares to net income of $120.6 million, and net income attributable to PBF Energy Inc. of $103.5 million or $1.06 per share for the second quarter 2016. Adjusted fully-converted net loss for the second quarter 2017, excluding special items, was $6.9 million, or $0.06 per share on a fully-exchanged, fully-diluted basis, as described below, compared to an adjusted fully-converted net income of $13.9 million, or $0.14 per share, for the second quarter 2016. PBF Energy's financial results reflect the consolidation of PBF Logistics LP (NYSE: PBFX), a master limited partnership of which PBF indirectly owns the general partner and approximately 44.1% of the limited partner interests as of quarter-end.
Tom Nimbley, PBF Energy's Chairman and CEO, said, "Our main focus during the second quarter was to operate our assets safely and reliably and to complete the extensive turnarounds at our Torrance and Delaware City refineries. I am pleased to report that both turnarounds are complete and the refineries are operating well. When combined with the crude unit turnaround at Chalmette during the first quarter, we have successfully executed our major maintenance goals for 2017. Our second quarter results include the impact of this turnaround work and reflect the ongoing pressures of narrow crude differentials and headwinds from the flawed Renewable Fuels Standard." Mr. Nimbley continued, "Going into the second half of the year, we have five operating refineries, no significant turnaround activity and a refining environment supported by strong domestic and international demand. We are looking forward to the second half of 2017 and demonstrating the capabilities of our refining system."
PBF Energy Inc. Declares Dividend
The company announced today that it will pay a quarterly dividend of $0.30 per share of Class A common stock on August 31, 2017, to holders of record as of August 15, 2017.
Outlook
For the third quarter 2017, we expect East Coast total throughput to average 320,000 to 340,000 barrels per day; Mid-Continent total throughput is expected to average 150,000 to 160,000 barrels per day; Gulf Coast total throughput is expected to average 185,000 to 195,000 barrels per day and West Coast total throughput is expected to average 150,000 to 160,000 barrels per day.
For the full-year 2017, we expect East Coast total throughput to average 315,000 to 335,000 barrels per day; Mid-Continent total throughput is expected to average 140,000 to 150,000 barrels per day; Gulf Coast total throughput is expected to average 170,000 to 180,000 barrels per day and West Coast total throughput is expected to average 130,000 to 140,000 barrels per day.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income (Loss), Adjusted Fully-Converted Net Income (Loss) excluding special items, Adjusted Fully-Converted Net Income (Loss) per fully-exchanged, fully-diluted share, gross refining margin, gross refining margin excluding special items, gross refining margin per barrel of throughput, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization), EBITDA excluding special items, Adjusted EBITDA and projected EBITDA related to the refinery acquisitions. PBF believes that non-GAAP financial measures provide useful information about its operating performance and financial results. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBF's non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the non-GAAP measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
PBF Energy's senior management will host a conference call and webcast regarding quarterly results and other business matters on Thursday, August 3, 2017, at 8:30 a.m. ET. The webcast is available through PBF Energy's website, http://www.pbfenergy.com. The call can also be heard by dialing (888) 632-3384 or (785) 424-1675, conference ID: PBFQ217. The audio replay will be available two hours after the end of the call through August 17, 2017, by dialing (800) 839-2475 or (402) 220-7220.
Forward-Looking Statements
Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the company's control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the company's filings with the SEC, as well as the risks disclosed in PBF Logistics LP's SEC filings and any impact PBF Logistics LP may have on the company's credit rating, cost of funds, employees, customer and vendors; risk relating to the securities markets generally; and the impact of adverse market conditions affecting the company, unanticipated developments, regulatory approvals, changes in laws and other events that negatively impact the company. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.
PBF Energy Inc. also currently indirectly owns the general partner and approximately 44.1% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
|
(Unaudited, in thousands, except share and per share data) | ||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||
|
June 30, |
June 30, | |||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||||
|
Revenues |
$ |
5,017,225 |
$ |
3,858,467 |
$ |
9,771,698 |
$ |
6,658,652 |
||||||||||
|
Costs and expenses: |
||||||||||||||||||
|
Cost of products and other |
4,605,693 |
3,249,444 |
8,802,460 |
5,661,539 |
||||||||||||||
|
Operating expenses (excluding depreciation of $62,683, $49,682, $121,852 and $103,918 for the periods presented, respectively) |
412,859 |
276,598 |
864,226 |
576,597 |
||||||||||||||
|
General and administrative expenses |
41,090 |
43,373 |
84,920 |
80,955 |
||||||||||||||
|
Loss on sale of assets |
29 |
3,222 |
912 |
3,222 |
||||||||||||||
|
Depreciation and amortization expense |
68,703 |
51,060 |
129,635 |
106,993 |
||||||||||||||
|
5,128,374 |
3,623,697 |
9,882,153 |
6,429,306 |
|||||||||||||||
|
Income (loss) from operations |
(111,149) |
234,770 |
(110,455) |
229,346 |
||||||||||||||
|
Other income (expenses): |
||||||||||||||||||
|
Change in fair value of catalyst leases |
1,104 |
(1,748) |
(1,484) |
(4,633) |
||||||||||||||
|
Debt extinguishment costs |
(25,451) |
— |
(25,451) |
— |
||||||||||||||
|
Interest expense, net |
(40,698) |
(35,940) |
(77,881) |
(73,467) |
||||||||||||||
|
Income (loss) before income taxes |
(176,194) |
197,082 |
(215,271) |
151,246 |
||||||||||||||
|
Income tax (benefit) expense |
(72,043) |
76,434 |
(91,090) |
53,934 |
||||||||||||||
|
Net income (loss) |
(104,151) |
120,648 |
(124,181) |
97,312 |
||||||||||||||
|
Less: net income attributable to noncontrolling interests |
5,512 |
17,118 |
16,559 |
23,170 |
||||||||||||||
|
Net income (loss) attributable to PBF Energy Inc. stockholders |
$ |
(109,663) |
$ |
103,530 |
$ |
(140,740) |
$ |
74,142 |
||||||||||
|
Net income (loss) available to Class A common stock per share: |
||||||||||||||||||
|
Basic |
$ |
(1.01) |
$ |
1.06 |
$ |
(1.30) |
$ |
0.76 |
||||||||||
|
Diluted |
$ |
(1.01) |
$ |
1.06 |
$ |
(1.30) |
$ |
0.76 |
||||||||||
|
Weighted-average shares outstanding-basic |
108,779,992 |
97,836,366 |
108,770,237 |
97,822,875 |
||||||||||||||
|
Weighted-average shares outstanding-diluted |
108,779,992 |
103,278,622 |
108,770,237 |
103,364,478 |
||||||||||||||
|
Dividends per common share |
$ |
0.30 |
$ |
0.30 |
$ |
0.60 |
$ |
0.60 |
||||||||||
|
Adjusted fully-converted net income (loss) and adjusted fully-converted net income (loss) per fully exchanged, fully diluted shares outstanding (Note 1): |
||||||||||||||||||
|
Adjusted fully-converted net income (loss) |
$ |
(113,937) |
$ |
109,207 |
$ |
(146,409) |
$ |
78,345 |
||||||||||
|
Adjusted fully-converted net income (loss) per fully exchanged, fully diluted share |
$ |
(1.01) |
$ |
1.06 |
$ |
(1.30) |
$ |
0.76 |
||||||||||
|
Adjusted fully-converted shares outstanding - diluted |
112,608,863 |
103,278,622 |
112,606,236 |
103,364,478 |
||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||
|
(Unaudited, in thousands, except share and per share data) | |||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | ||||||||||||||||||||
|
RECONCILIATION OF NET INCOME (LOSS) TO |
June 30, |
June 30, | |||||||||||||||||||
|
ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) (Note 1) |
2017 |
2016 |
2017 |
2016 | |||||||||||||||||
|
Net income (loss) attributable to PBF Energy Inc. stockholders |
$ |
(109,663) |
$ |
103,530 |
$ |
(140,740) |
$ |
74,142 |
|||||||||||||
|
Income (loss) allocated to participating securities |
(269) |
— |
(539) |
— |
|||||||||||||||||
|
Income (loss) available to PBF Energy Inc. stockholders - basic |
(109,932) |
103,530 |
(141,279) |
74,142 |
|||||||||||||||||
|
Add: Net income (loss) attributable to noncontrolling interest (Note 2) |
(6,604) |
9,399 |
(8,460) |
6,958 |
|||||||||||||||||
|
Less: Income tax benefit (expense) (Note 3) |
2,599 |
(3,722) |
3,330 |
(2,755) |
|||||||||||||||||
|
Adjusted fully-converted net income (loss) |
$ |
(113,937) |
$ |
109,207 |
$ |
(146,409) |
$ |
78,345 |
|||||||||||||
|
Special Items (Note 4): |
|||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
151,095 |
(157,780) |
167,134 |
(216,843) |
|||||||||||||||||
|
Add: Debt extinguishment costs (Note 5) |
25,451 |
— |
25,451 |
— |
|||||||||||||||||
|
Add: Recomputed income taxes on special items (Note 5) |
(69,489) |
62,516 |
(75,801) |
85,870 |
|||||||||||||||||
|
Adjusted fully-converted net income (loss) excluding special items (Note 4) |
$ |
(6,880) |
$ |
13,943 |
$ |
(29,625) |
$ |
(52,628) |
|||||||||||||
|
Weighted-average shares outstanding of PBF Energy Inc. |
108,779,992 |
97,836,366 |
108,770,237 |
97,822,875 |
|||||||||||||||||
|
Conversion of PBF LLC Series A Units (Note 6) |
3,828,871 |
4,947,813 |
3,835,999 |
4,952,115 |
|||||||||||||||||
|
Common stock equivalents (Note 7) |
— |
494,443 |
— |
589,488 |
|||||||||||||||||
|
Adjusted fully-converted shares outstanding - diluted |
112,608,863 |
103,278,622 |
112,606,236 |
103,364,478 |
|||||||||||||||||
|
Adjusted fully-converted net income (loss) (per fully exchanged, fully diluted shares outstanding) |
$ |
(1.01) |
$ |
1.06 |
$ |
(1.30) |
$ |
0.76 |
|||||||||||||
|
Adjusted fully-converted net income (loss) excluding special items (per fully exchanged, fully diluted shares outstanding) (Note 4) |
$ |
(0.06) |
$ |
0.14 |
$ |
(0.26) |
$ |
(0.51) |
|||||||||||||
|
Three Months Ended |
Six Months Ended | ||||||||||||||||||||
|
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS |
June 30, |
June 30, | |||||||||||||||||||
|
TO INCOME (LOSS) FROM OPERATIONS EXCLUDING SPECIAL ITEMS |
2017 |
2016 |
2017 |
2016 | |||||||||||||||||
|
Income (loss) from operations |
$ |
(111,149) |
$ |
234,770 |
$ |
(110,455) |
$ |
229,346 |
|||||||||||||
|
Special Items (Note 4): |
|||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
151,095 |
(157,780) |
167,134 |
(216,843) |
|||||||||||||||||
|
Income (loss) from operations excluding special items (Note 4) |
$ |
39,946 |
$ |
76,990 |
$ |
56,679 |
$ |
12,503 |
|||||||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||||||||
|
EBITDA RECONCILIATIONS (Note 8) | ||||||||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||||
|
June 30, |
June 30, | |||||||||||||||||||||
|
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA |
2017 |
2016 |
2017 |
2016 | ||||||||||||||||||
|
Net income (loss) |
$ |
(104,151) |
$ |
120,648 |
$ |
(124,181) |
$ |
97,312 |
||||||||||||||
|
Add: Depreciation and amortization expense |
68,703 |
51,060 |
129,635 |
106,993 |
||||||||||||||||||
|
Add: Interest expense, net |
40,698 |
35,940 |
77,881 |
73,467 |
||||||||||||||||||
|
Add: Income tax (benefit) expense |
(72,043) |
76,434 |
(91,090) |
53,934 |
||||||||||||||||||
|
EBITDA |
$ |
(66,793) |
$ |
284,082 |
$ |
(7,755) |
$ |
331,706 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
151,095 |
(157,780) |
167,134 |
(216,843) |
||||||||||||||||||
|
Add: Debt extinguishment costs (Note 5) |
25,451 |
— |
25,451 |
— |
||||||||||||||||||
|
EBITDA excluding special items (Note 4) |
$ |
109,753 |
$ |
126,302 |
$ |
184,830 |
$ |
114,863 |
||||||||||||||
|
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA |
||||||||||||||||||||||
|
EBITDA |
$ |
(66,793) |
$ |
284,082 |
$ |
(7,755) |
$ |
331,706 |
||||||||||||||
|
Add: Stock based compensation |
7,817 |
9,359 |
13,842 |
12,709 |
||||||||||||||||||
|
Add: Non-cash change in fair value of catalyst leases |
(1,104) |
1,748 |
1,484 |
4,633 |
||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
151,095 |
(157,780) |
167,134 |
(216,843) |
||||||||||||||||||
|
Add: Debt extinguishment costs (Note 5) |
25,451 |
— |
25,451 |
— |
||||||||||||||||||
|
Adjusted EBITDA |
$ |
116,466 |
$ |
137,409 |
$ |
200,156 |
$ |
132,205 |
||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||||||||
|
(Unaudited, in thousands) | |||||||||||
|
June 30, |
December 31, | ||||||||||
|
2017 |
2016 | ||||||||||
|
Balance Sheet Data: |
|||||||||||
|
Cash, cash equivalents and marketable securities |
$ |
173,031 |
$ |
786,298 |
|||||||
|
Inventories |
1,875,164 |
1,863,560 |
|||||||||
|
Total assets |
7,481,220 |
7,621,927 |
|||||||||
|
Total debt |
2,159,547 |
2,148,234 |
|||||||||
|
Total equity |
2,368,993 |
2,570,684 |
|||||||||
|
Total equity excluding special items (Note 4, 16) |
$ |
2,827,468 |
$ |
2,912,375 |
|||||||
|
Total debt to capitalization ratio (Note 16) |
48 |
% |
46 |
% | |||||||
|
Total debt to capitalization ratio, excluding special items (Note 16) |
43 |
% |
42 |
% | |||||||
|
Net debt to capitalization ratio (Note 16) |
46 |
% |
35 |
% | |||||||
|
Net debt to capitalization ratio, excluding special items (Note 16) |
41 |
% |
32 |
% | |||||||
|
SUMMARIZED STATEMENT OF CASH FLOW DATA | |||||||||||
|
(Unaudited, in thousands) | |||||||||||
|
Six Months Ended June 30, | |||||||||||
|
2017 |
2016 | ||||||||||
|
Cash flows (used in) provided by operations |
$ |
(34,665) |
$ |
216,134 |
|||||||
|
Cash flows used in investing activities |
(428,641) |
(235,757) |
|||||||||
|
Cash flows (used in) provided by financing activities |
(109,937) |
488,238 |
|||||||||
|
Net (decrease) increase in cash and cash equivalents |
(573,243) |
468,615 |
|||||||||
|
Cash and cash equivalents, beginning of period |
746,274 |
944,320 |
|||||||||
|
Cash and cash equivalents, end of period |
$ |
173,031 |
$ |
1,412,935 |
|||||||
|
Marketable securities |
— |
136,144 |
|||||||||
|
Net cash, cash equivalents and marketable securities |
$ |
173,031 |
$ |
1,549,079 |
|||||||
|
See Footnotes to Earnings Release Tables | |||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||
|
CONSOLIDATING FINANCIAL INFORMATION (Note 9) | |||||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||||
|
Three Months Ended June 30, 2017 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
5,013,251 |
$ |
62,329 |
$ |
— |
$ |
(58,355) |
$ |
5,017,225 |
|||||||||
|
Depreciation and amortization expense |
56,973 |
5,710 |
6,020 |
— |
68,703 |
||||||||||||||
|
Income (loss) from operations (16) |
(101,333) |
35,017 |
(41,013) |
(3,820) |
(111,149) |
||||||||||||||
|
Interest expense, net |
1,335 |
7,886 |
31,477 |
— |
40,698 |
||||||||||||||
|
Capital expenditures (Note 14) |
242,655 |
36,918 |
148 |
— |
279,721 |
||||||||||||||
|
Three Months Ended June 30, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
3,855,773 |
$ |
40,659 |
$ |
— |
$ |
(37,965) |
$ |
3,858,467 |
|||||||||
|
Depreciation and amortization expense |
47,333 |
2,349 |
1,378 |
— |
51,060 |
||||||||||||||
|
Income (loss) from operations |
249,102 |
23,510 |
(37,842) |
— |
234,770 |
||||||||||||||
|
Interest expense, net |
1,142 |
7,634 |
27,164 |
— |
35,940 |
||||||||||||||
|
Capital expenditures |
87,756 |
100,687 |
6,559 |
— |
195,002 |
||||||||||||||
|
Six Months Ended June 30, 2017 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
9,763,449 |
$ |
122,806 |
$ |
— |
$ |
(114,557) |
$ |
9,771,698 |
|||||||||
|
Depreciation and amortization expense |
110,790 |
11,062 |
7,783 |
— |
129,635 |
||||||||||||||
|
Income (loss) from operations (Note 17) |
(90,803) |
71,058 |
(83,291) |
(7,419) |
(110,455) |
||||||||||||||
|
Interest expense, net |
2,253 |
15,870 |
59,758 |
— |
77,881 |
||||||||||||||
|
Capital expenditures (Note 14) |
409,871 |
56,385 |
2,409 |
— |
468,665 |
||||||||||||||
|
Six Months Ended June 30, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
6,655,958 |
$ |
77,208 |
$ |
— |
$ |
(74,514) |
$ |
6,658,652 |
|||||||||
|
Depreciation and amortization expense |
99,722 |
4,196 |
3,075 |
— |
106,993 |
||||||||||||||
|
Income (loss) from operations |
254,348 |
49,554 |
(74,556) |
— |
229,346 |
||||||||||||||
|
Interest expense, net |
2,114 |
14,863 |
56,490 |
— |
73,467 |
||||||||||||||
|
Capital expenditures (Note 15) |
226,669 |
101,813 |
12,259 |
— |
340,741 |
||||||||||||||
|
Balance at June 30, 2017 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Total Assets (Note 18) |
$ |
6,232,343 |
$ |
751,155 |
$ |
529,131 |
$ |
(31,409) |
$ |
7,481,220 |
|||||||||
|
Balance at December 31, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Total Assets (Note 18) |
$ |
6,419,950 |
$ |
756,861 |
$ |
482,979 |
$ |
(37,863) |
$ |
7,621,927 |
|||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
MARKET INDICATORS AND KEY OPERATING INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||
|
June 30, |
June 30, | |||||||||||||||||||
|
Market Indicators (dollars per barrel) (Note 10) |
2017 |
2016 |
2017 |
2016 | ||||||||||||||||
|
Dated Brent Crude |
$ |
49.69 |
$ |
45.65 |
$ |
51.61 |
$ |
40.08 |
||||||||||||
|
West Texas Intermediate (WTI) crude oil |
$ |
48.11 |
$ |
45.53 |
$ |
49.89 |
$ |
39.64 |
||||||||||||
|
Light Louisiana Sweet (LLS) crude oil |
$ |
50.17 |
$ |
47.39 |
$ |
51.77 |
$ |
41.51 |
||||||||||||
|
Alaska North Slope (ANS) crude oil |
$ |
50.61 |
$ |
45.74 |
$ |
52.20 |
$ |
40.00 |
||||||||||||
|
Crack Spreads: |
||||||||||||||||||||
|
Dated Brent (NYH) 2-1-1 |
$ |
14.81 |
$ |
15.32 |
$ |
13.21 |
$ |
13.30 |
||||||||||||
|
WTI (Chicago) 4-3-1 |
$ |
14.09 |
$ |
16.51 |
$ |
12.65 |
$ |
12.77 |
||||||||||||
|
LLS (Gulf Coast) 2-1-1 |
$ |
12.56 |
$ |
10.76 |
$ |
12.30 |
$ |
9.76 |
||||||||||||
|
ANS (West Coast) 4-3-1 |
$ |
19.16 |
$ |
18.58 |
$ |
17.85 |
$ |
18.04 |
||||||||||||
|
Crude Oil Differentials: |
||||||||||||||||||||
|
Dated Brent (foreign) less WTI |
$ |
1.58 |
$ |
0.11 |
$ |
1.73 |
$ |
0.44 |
||||||||||||
|
Dated Brent less Maya (heavy, sour) |
$ |
8.00 |
$ |
7.83 |
$ |
7.34 |
$ |
7.94 |
||||||||||||
|
Dated Brent less WTS (sour) |
$ |
2.65 |
$ |
0.96 |
$ |
2.98 |
$ |
0.95 |
||||||||||||
|
Dated Brent less ASCI (sour) |
$ |
2.85 |
$ |
3.67 |
$ |
3.46 |
$ |
3.96 |
||||||||||||
|
WTI less WCS (heavy, sour) |
$ |
9.56 |
$ |
11.75 |
$ |
11.23 |
$ |
11.55 |
||||||||||||
|
WTI less Bakken (light, sweet) |
$ |
0.30 |
$ |
0.43 |
$ |
0.61 |
$ |
0.98 |
||||||||||||
|
WTI less Syncrude (light, sweet) |
$ |
(1.35) |
$ |
(2.72) |
$ |
(1.81) |
$ |
(3.56) |
||||||||||||
|
WTI less LLS (light, sweet) |
$ |
(2.06) |
$ |
(1.85) |
$ |
(1.88) |
$ |
(1.87) |
||||||||||||
|
WTI less ANS (light, sweet) |
$ |
(2.50) |
$ |
(0.21) |
$ |
(2.31) |
$ |
(0.37) |
||||||||||||
|
Natural gas (dollars per MMBTU) |
$ |
3.14 |
$ |
2.25 |
$ |
3.10 |
$ |
2.11 |
||||||||||||
|
Key Operating Information |
||||||||||||||||||||
|
Production (barrels per day ("bpd") in thousands) |
764.2 |
702.7 |
748.8 |
678.0 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
769.2 |
698.1 |
753.7 |
674.0 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
70.0 |
63.5 |
136.4 |
122.7 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
(0.62) |
$ |
4.56 |
$ |
0.17 |
$ |
2.68 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
7.17 |
$ |
6.50 |
$ |
7.45 |
$ |
5.77 |
||||||||||||
|
Refinery operating expenses, excluding depreciation, per barrel of throughput (Note 12) |
$ |
5.69 |
$ |
4.27 |
$ |
6.12 |
$ |
4.63 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13) |
||||||||||||||||||||
|
Heavy crude |
30 |
% |
18 |
% |
35 |
% |
16 |
% | ||||||||||||
|
Medium crude |
31 |
% |
44 |
% |
30 |
% |
47 |
% | ||||||||||||
|
Light crude |
23 |
% |
27 |
% |
20 |
% |
25 |
% | ||||||||||||
|
Other feedstocks and blends |
16 |
% |
11 |
% |
15 |
% |
12 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
50 |
% |
47 |
% |
51 |
% |
48 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
30 |
% |
32 |
% |
30 |
% |
31 |
% | ||||||||||||
|
Lubes |
1 |
% |
1 |
% |
1 |
% |
1 |
% | ||||||||||||
|
Chemicals |
2 |
% |
4 |
% |
2 |
% |
4 |
% | ||||||||||||
|
Other |
16 |
% |
16 |
% |
16 |
% |
16 |
% | ||||||||||||
|
Total yield |
99 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||
|
June 30, |
June 30, | |||||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||||||
|
Supplemental Operating Information - East Coast (Delaware City and Paulsboro) |
||||||||||||||||||||
|
Production (bpd in thousands) |
321.4 |
347.3 |
318.6 |
328.5 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
326.1 |
351.7 |
323.2 |
333.9 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
29.7 |
32.0 |
58.5 |
60.8 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
(2.60) |
$ |
3.95 |
$ |
(1.36) |
$ |
1.14 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
4.98 |
$ |
6.68 |
$ |
5.46 |
$ |
5.54 |
||||||||||||
|
Refinery operating expense, excluding depreciation, per barrel of throughput (Note 12) |
$ |
4.54 |
$ |
3.90 |
$ |
4.85 |
$ |
4.50 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Heavy crude |
31 |
% |
17 |
% |
34 |
% |
13 |
% | ||||||||||||
|
Medium crude |
40 |
% |
56 |
% |
38 |
% |
61 |
% | ||||||||||||
|
Light crude |
12 |
% |
12 |
% |
11 |
% |
11 |
% | ||||||||||||
|
Other feedstocks and blends |
17 |
% |
15 |
% |
17 |
% |
15 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
43 |
% |
45 |
% |
45 |
% |
46 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
33 |
% |
31 |
% |
31 |
% |
29 |
% | ||||||||||||
|
Lubes |
2 |
% |
2 |
% |
2 |
% |
2 |
% | ||||||||||||
|
Chemicals |
1 |
% |
2 |
% |
1 |
% |
2 |
% | ||||||||||||
|
Other |
20 |
% |
18 |
% |
20 |
% |
19 |
% | ||||||||||||
|
Total yield |
99 |
% |
98 |
% |
99 |
% |
98 |
% | ||||||||||||
|
Supplemental Operating Information - Mid-Continent (Toledo) |
||||||||||||||||||||
|
Production (bpd in thousands) |
158.2 |
176.0 |
142.2 |
168.0 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
154.6 |
174.2 |
139.3 |
165.9 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
14.1 |
15.8 |
25.2 |
30.2 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
(0.19) |
$ |
4.31 |
$ |
(0.85) |
$ |
2.41 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
7.90 |
$ |
6.65 |
$ |
7.79 |
$ |
5.45 |
||||||||||||
|
Refinery operating expense, excluding depreciation, per barrel of throughput (Note 12) |
$ |
4.82 |
$ |
4.02 |
$ |
5.58 |
$ |
4.45 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Medium crude |
35 |
% |
32 |
% |
39 |
% |
36 |
% | ||||||||||||
|
Light crude |
64 |
% |
66 |
% |
60 |
% |
62 |
% | ||||||||||||
|
Other feedstocks and blends |
1 |
% |
2 |
% |
1 |
% |
2 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
55 |
% |
52 |
% |
55 |
% |
52 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
31 |
% |
33 |
% |
33 |
% |
35 |
% | ||||||||||||
|
Chemicals |
6 |
% |
5 |
% |
6 |
% |
5 |
% | ||||||||||||
|
Other |
10 |
% |
11 |
% |
8 |
% |
9 |
% | ||||||||||||
|
Total yield |
102 |
% |
101 |
% |
102 |
% |
101 |
% | ||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||
|
June 30, |
June 30, | |||||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | |||||||||||||||||
|
Supplemental Operating Information - Gulf Coast (Chalmette) |
||||||||||||||||||||
|
Production (bpd in thousands) |
191.8 |
179.4 |
173.6 |
181.5 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
191.3 |
172.2 |
173.6 |
174.2 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
17.4 |
15.7 |
31.4 |
31.7 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
0.85 |
$ |
3.65 |
$ |
1.24 |
$ |
3.63 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
7.76 |
$ |
6.00 |
$ |
8.40 |
$ |
6.54 |
||||||||||||
|
Refinery operating expense, excluding depreciation, per barrel of throughput (Note 12) |
$ |
4.65 |
$ |
5.30 |
$ |
5.35 |
$ |
5.05 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Heavy crude |
42 |
% |
39 |
% |
42 |
% |
38 |
% | ||||||||||||
|
Medium crude |
25 |
% |
31 |
% |
25 |
% |
30 |
% | ||||||||||||
|
Light crude |
20 |
% |
17 |
% |
16 |
% |
17 |
% | ||||||||||||
|
Other feedstocks and blends |
13 |
% |
13 |
% |
17 |
% |
15 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
45 |
% |
47 |
% |
47 |
% |
47 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
33 |
% |
32 |
% |
31 |
% |
32 |
% | ||||||||||||
|
Chemicals |
2 |
% |
6 |
% |
2 |
% |
6 |
% | ||||||||||||
|
Other |
20 |
% |
15 |
% |
20 |
% |
15 |
% | ||||||||||||
|
Total yield |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Supplemental Operating Information - West Coast (Torrance) (Note 14) |
||||||||||||||||||||
|
Production (bpd in thousands) |
92.8 |
N/A |
114.4 |
N/A | ||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
97.2 |
N/A |
117.6 |
N/A | ||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
8.8 |
N/A |
21.3 |
N/A | ||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
(4.55) |
N/A |
$ |
(1.66) |
N/A | ||||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
12.18 |
N/A |
$ |
11.10 |
N/A | ||||||||||||||
|
Refinery operating expense, excluding depreciation, per barrel of throughput (Note 12) |
$ |
13.01 |
N/A |
$ |
11.39 |
N/A | ||||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Heavy crude |
57 |
% |
N/A |
73 |
% |
N/A | ||||||||||||||
|
Medium crude |
3 |
% |
N/A |
2 |
% |
N/A | ||||||||||||||
|
Other feedstocks and blends |
40 |
% |
N/A |
25 |
% |
N/A | ||||||||||||||
|
Total throughput |
100 |
% |
N/A |
100 |
% |
N/A | ||||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
69 |
% |
N/A |
66 |
% |
N/A | ||||||||||||||
|
Distillates and distillate blendstocks |
12 |
% |
N/A |
17 |
% |
N/A | ||||||||||||||
|
Other |
14 |
% |
N/A |
14 |
% |
N/A | ||||||||||||||
|
Total yield |
95 |
% |
N/A |
97 |
% |
N/A | ||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||
|
GROSS REFINING MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note 11) | |||||||||||||||||||||
|
(Unaudited, in thousands, except per barrel amounts) | |||||||||||||||||||||
|
Three Months Ended |
Three Months Ended | ||||||||||||||||||||
|
June 30, 2017 |
June 30, 2016 | ||||||||||||||||||||
|
$ |
per barrel of |
$ |
per barrel of | ||||||||||||||||||
|
Calculation of gross margin: |
|||||||||||||||||||||
|
Revenues |
$ |
5,017,225 |
$ |
71.68 |
$ |
3,858,467 |
$ |
60.74 |
|||||||||||||
|
Less: Cost of products and other |
4,605,693 |
65.80 |
3,249,444 |
51.16 |
|||||||||||||||||
|
Less: Refinery operating expenses |
398,570 |
5.69 |
271,539 |
4.27 |
|||||||||||||||||
|
Less: Refinery depreciation expenses |
56,973 |
0.81 |
47,540 |
0.75 |
|||||||||||||||||
|
Gross margin |
$ |
(44,011) |
$ |
(0.62) |
$ |
289,944 |
$ |
4.56 |
|||||||||||||
|
Reconciliation of gross margin to gross refining margin: |
|||||||||||||||||||||
|
Gross margin |
$ |
(44,011) |
$ |
(0.62) |
$ |
289,944 |
$ |
4.56 |
|||||||||||||
|
Less: Revenues of PBFX |
(62,329) |
(0.89) |
(40,659) |
(0.64) |
|||||||||||||||||
|
Add: Affiliate cost of sales of PBFX |
1,215 |
0.02 |
2,661 |
0.04 |
|||||||||||||||||
|
Add: Refinery operating expenses |
398,570 |
5.69 |
271,539 |
4.27 |
|||||||||||||||||
|
Add: Refinery depreciation expense |
56,973 |
0.81 |
47,540 |
0.75 |
|||||||||||||||||
|
Gross refining margin |
$ |
350,418 |
$ |
5.01 |
$ |
571,025 |
$ |
8.98 |
|||||||||||||
|
Special Items (Note 4): |
|||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
151,095 |
2.16 |
(157,780) |
(2.48) |
|||||||||||||||||
|
Gross refining margin excluding special items (Note 4) |
$ |
501,513 |
$ |
7.17 |
$ |
413,245 |
$ |
6.50 |
|||||||||||||
|
Six Months Ended |
Six Months Ended | ||||||||||||||||||||
|
June 30, 2017 |
June 30, 2016 | ||||||||||||||||||||
|
$ |
per barrel of |
$ |
per barrel of | ||||||||||||||||||
|
Calculation of gross margin: |
|||||||||||||||||||||
|
Revenues |
$ |
9,771,698 |
$ |
71.63 |
$ |
6,658,652 |
$ |
54.28 |
|||||||||||||
|
Less: Cost of products and other |
8,802,460 |
64.53 |
5,661,539 |
46.15 |
|||||||||||||||||
|
Less: Refinery operating expenses |
835,423 |
6.12 |
568,178 |
4.63 |
|||||||||||||||||
|
Less: Refinery depreciation expenses |
110,900 |
0.81 |
100,136 |
0.82 |
|||||||||||||||||
|
Gross margin |
$ |
22,915 |
$ |
0.17 |
$ |
328,799 |
$ |
2.68 |
|||||||||||||
|
Reconciliation of gross margin to gross refining margin: |
|||||||||||||||||||||
|
Gross margin |
$ |
22,915 |
$ |
0.17 |
$ |
328,799 |
$ |
2.68 |
|||||||||||||
|
Less: Revenues of PBFX |
(122,806) |
(0.90) |
(77,208) |
(0.63) |
|||||||||||||||||
|
Add: Affiliate cost of sales of PBFX |
2,430 |
0.02 |
5,322 |
0.04 |
|||||||||||||||||
|
Add: Refinery operating expenses |
835,423 |
6.12 |
568,178 |
4.63 |
|||||||||||||||||
|
Add: Refinery depreciation expense |
110,900 |
0.81 |
100,136 |
0.82 |
|||||||||||||||||
|
Gross refining margin |
$ |
848,862 |
$ |
6.22 |
$ |
925,227 |
$ |
7.54 |
|||||||||||||
|
Special Items (Note 4): |
|||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
167,134 |
1.23 |
(216,843) |
(1.77) |
|||||||||||||||||
|
Gross refining margin excluding special items (Note 4) |
$ |
1,015,996 |
$ |
7.45 |
$ |
708,384 |
$ |
5.77 |
|||||||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||||||||
|
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||||||||||||||||
|
(1) Adjusted fully-converted information is presented in this table as management believes that these Non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful to investors to compare the company's results across the periods presented and facilitates an understanding of the company's operating results. The company also uses these measures to evaluate its operating performance. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The differences between adjusted fully-converted and GAAP results are explained in footnotes 2 through 7. | |||||||||||||||||||||||||
|
(2) Represents the elimination of the noncontrolling interest associated with the ownership by the members of PBF Energy Company LLC other than PBF Energy Inc., as if such members had fully exchanged their Series A Units for shares of PBF Energy's Class A common stock. | |||||||||||||||||||||||||
|
(3) Represents an adjustment to reflect the company's expected full-year statutory corporate tax rate of approximately 39.4% and 39.6% for the 2017 and 2016 periods, respectively, applied to the net income (loss) attributable to the noncontrolling interest for all periods presented. The adjustment assumes the full exchange of existing PBF Energy Company LLC Series A Units as described in footnote 2. | |||||||||||||||||||||||||
|
(4) The Non-GAAP measures presented include adjusted fully-converted net income excluding special items, income from continuing operations excluding special items, EBITDA excluding special items, and gross refining margin excluding special items. The special items for the periods presented relate to a lower of cost or market ("LCM") adjustment and debt extinguishment costs. LCM is a GAAP guideline related to inventory valuation that requires inventory to be stated at the lower of cost or market. Our inventories are stated at the lower of cost or market. Cost is determined using last-in, first-out (LIFO) inventory valuation methodology, in which the most recently incurred costs are charged to cost of sales and inventories are valued at base layer acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and net realizable selling price of the inventory. In periods where the market price of our inventory declines substantially, cost values of inventory may exceed market values. In such instances, we record an adjustment to write down the value of inventory to market value in accordance with GAAP. In subsequent periods, the value of inventory is reassessed and an LCM inventory adjustment is recorded to reflect the net change in the LCM inventory reserve between the prior period and the current period. Debt extinguishment costs reflect the difference between the carrying value of our 2020 Senior Secured Notes on the date that they were reacquired and the amount for which they were reacquired. Although we believe that Non-GAAP financial measures excluding the impact of special items provide useful supplemental information to investors regarding the results and performance of our business and allow for useful period-over-period comparisons, such Non-GAAP measures should only be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP. | |||||||||||||||||||||||||
|
(5) The following table includes the lower of cost or market inventory reserve as of each date presented: | |||||||||||||||||||||||||
|
2017 |
2016 | ||||||||||||||||||||||||
|
January 1, |
$ |
595,988 |
$ |
1,117,336 |
|||||||||||||||||||||
|
March 31, |
612,027 |
1,058,273 |
|||||||||||||||||||||||
|
June 30, |
763,122 |
900,493 |
|||||||||||||||||||||||
|
The following table includes the corresponding impact of changes in the lower of cost or market inventory reserve on operating income and net income for the periods presented: | |||||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | ||||||||||||||||||||||||
|
2017 |
2016 |
2017 |
2016 | ||||||||||||||||||||||
|
Net LCM inventory |
$ |
(151,095) |
$ |
157,780 |
$ |
(167,134) |
$ |
216,843 |
|||||||||||||||||
|
Net LCM inventory adjustment benefit (charge) in net income |
(91,624) |
95,264 |
(101,350) |
130,973 |
|||||||||||||||||||||
|
Additionally, during the three and six months ended June, 30, 2017, we recorded pre-tax debt extinguishment costs of $25.5 million related to the redemption of the 2020 Senior Secured Notes. These nonrecurring charges decreased net income by $15.4 million for the three and six months ended June 30, 2017. There were no such costs in the same periods of 2016. | |||||||||||||||||||||||||
|
(6) Represents an adjustment to weighted-average diluted shares outstanding to assume the full exchange of existing PBF LLC Series A Units as described in footnote 2 above. | |||||||||||||||||||||||||
|
(7) Represents weighted-average diluted shares outstanding assuming the conversion of all common stock equivalents, including options and warrants for PBF LLC Series A Units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method for the three and six months ended June 30, 2017 and June 30, 2016, respectively. Common stock equivalents exclude the effects of options and warrants to purchase 7,278,142 and 7,278,142 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three and six months ended June 30, 2017, respectively. Common stock equivalents exclude the effects of options and warrants to purchase 3,467,125 and 2,919,125 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three and six months ended June 30, 2016, respectively. | |||||||||||||||||||||||||
|
(8) EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Adjusted EBITDA are supplemental measures of performance that are not required by, or presented in accordance with GAAP. We use these Non-GAAP financial measures as a supplement to our GAAP results in order to provide additional metrics on factors and trends affecting our business. EBITDA and Adjusted EBITDA are measures of operating performance that are not defined by GAAP and should not be considered substitutes for net income as determined in accordance with GAAP. In addition, because EBITDA and Adjusted EBITDA are not calculated in the same manner by all companies, they are not necessarily comparable to other similarly titled measures used by other companies. EBITDA and Adjusted EBITDA have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. | |||||||||||||||||||||||||
|
(9) We operate in two reportable segments; Refining and Logistics. Our operations that are not included in the Refining and Logistics segments are included in Corporate. As of June 30, 2017, the Refining segment includes the operations of our oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio, New Orleans, Louisiana and Torrance, California. The Logistics segment includes the operations of PBF Logistics LP ("PBFX"), a growth-oriented master limited partnership which owns or leases, operates, develops and acquires crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. PBFX's assets consist of rail and truck terminals and unloading racks, tank farms and pipelines, a substantial portion of which were acquired from or contributed by PBF LLC and are located at, or nearby, the company's refineries. PBFX provides various rail, truck and marine terminaling services, pipeline transportation services and storage services to PBF Holding and/or its subsidiaries and third party customers through fee-based commercial agreements. In connection with the contribution by PBF LLC of the limited liability interests in PNGPC to PBFX, the accompanying segment information has been retrospectively adjusted to include the historical results of PNGPC in the Logistics segment for all periods presented prior to such contribution.
PBFX currently does not generate significant third party revenue and intersegment related-party revenues are eliminated in consolidation. Prior to the PBFX initial public offering, PBFX was not considered to be a separate reportable segment. From a PBF Energy perspective, the company's chief operating decision maker evaluates the Logistics segment as a whole without regard to any of PBFX's individual segments. | |||||||||||||||||||||||||
|
(10) As reported by Platts. | |||||||||||||||||||||||||
|
(11) Gross refining margin and gross refining margin per barrel of throughput are Non-GAAP measures because they exclude refinery operating expenses, refinery depreciation and amortization and gross margin of PBFX. Gross refining margin per barrel is gross refining margin, divided by total crude and feedstocks throughput. We believe they are important measures of operating performance and they provide useful information to investors because gross refining margin per barrel is a helpful metric comparison to the industry refining margin benchmarks shown in the Market Indicators Tables, as the industry benchmarks do not include a charge for refinery operating expenses and depreciation. Other companies in our industry may not calculate gross refining margin and gross refining margin per barrel in the same manner. Gross refining margin and gross refining margin per barrel of throughput have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. | |||||||||||||||||||||||||
|
(12) Represents refinery operating expenses, excluding depreciation and amortization, divided by total crude oil and feedstocks throughput. | |||||||||||||||||||||||||
|
(13) We define heavy crude oil as crude oil with American Petroleum Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with API gravity between 24 and 35 degrees. We define light crude oil as crude oil with API gravity higher than 35 degrees. | |||||||||||||||||||||||||
|
(14) The Logistics segment includes capital expenditures of $10.1 million for the acquisition of the Toledo Terminal by PBFX on April 17, 2017. | |||||||||||||||||||||||||
|
(15) The Refining segment includes capital expenditures of $2.7 million for the working capital settlement related to the acquisition of the Chalmette refinery that was finalized in the first quarter of 2016. | |||||||||||||||||||||||||
|
(16) The total debt to capitalization ratio is calculated by dividing total debt by the sum of total debt and total equity. This ratio is a measurement which is presented in our annual and interim filings and management believes this ratio is useful to investors in analyzing our leverage. Net debt and the net debt to capitalization ratio are Non-GAAP measures. Net debt is calculated by subtracting cash and cash equivalents and marketable securities from total debt. We believe these measurements are also useful to investors since we have the ability to and may decide to use a portion of our cash and cash equivalents to retire or pay down our debt. Marketable securities included in net debt fully collateralized PBFX's Term Loan prior to its repayment. Additionally, as described in footnote 4 above, we have also presented the total debt to capitalization and net debt to capitalization ratios excluding the cumulative effects of special items on equity. | |||||||||||||||||||||||||
|
June 30, |
December 31, | |||||||||
|
2017 |
2016 | |||||||||
|
Total debt |
$ |
2,159,547 |
$ |
2,148,234 |
||||||
|
Total equity |
2,368,993 |
2,570,684 |
||||||||
|
Total capitalization |
$ |
4,528,540 |
$ |
4,718,918 |
||||||
|
Total debt |
$ |
2,159,547 |
$ |
2,148,234 |
||||||
|
Total equity excluding special items |
2,827,468 |
2,912,375 |
||||||||
|
Total capitalization excluding special items |
$ |
4,987,015 |
$ |
5,060,609 |
||||||
|
Total equity |
$ |
2,368,993 |
$ |
2,570,684 |
||||||
|
Special Items (Note 4) |
||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
763,122 |
595,988 |
||||||||
|
Add: Change in tax receivable agreement liability |
(25,508) |
(25,508) |
||||||||
|
Add: Debt extinguishment costs (Note 5) |
25,451 |
— |
||||||||
|
Less: Recomputed income taxes on special items (Note 5) |
(304,590) |
(228,789) |
||||||||
|
Net impact of special items to equity |
458,475 |
341,691 |
||||||||
|
Total equity excluding special items (Note 4) |
$ |
2,827,468 |
$ |
2,912,375 |
||||||
|
Total debt |
$ |
2,159,547 |
$ |
2,148,234 |
||||||
|
Less: Cash, cash equivalents and marketable securities |
173,031 |
786,298 |
||||||||
|
Net Debt |
$ |
1,986,516 |
$ |
1,361,936 |
||||||
|
Total debt to capitalization ratio |
48 |
% |
46 |
% | ||||||
|
Total debt to capitalization ratio, excluding special items |
43 |
% |
42 |
% | ||||||
|
Net debt to capitalization ratio |
46 |
% |
35 |
% | ||||||
|
Net debt to capitalization ratio, excluding special items |
41 |
% |
32 |
% | ||||||
|
(17) The Logistics segment includes 100% of the income from operations of the Torrance Valley Pipeline Company LLC ("TVPC"), as TVPC is consolidated by PBFX. PBFX records net income attributable to noncontrolling interest for the 50% equity interest in TVPC held by PBF Holding. PBF Holding (included in the Refining segment) records equity income in investee related to its 50% noncontrolling ownership interest in TVPC. For the purposes of the consolidated PBF Energy financial statements, PBF Holding's equity income in investee and PBFX's net income attributable to noncontrolling interest eliminate in consolidation. As the acquisition of PBFX's 50% interest in TVPC was completed in the third quarter of 2016, there was no impact on comparative June 30, 2016 disclosures. |
|
(18) The Logistics segment includes 100% of the assets of TVPC as TVPC is consolidated by PBFX. PBFX records a noncontrolling interest for the 50% equity interest in TVPC held by PBF Holding. PBF Holding (included in the Refining segment) records an equity investment in TVPC reflecting its noncontrolling ownership interest. For the purposes of the consolidated PBF Energy financial statements, PBFX's noncontrolling interest in TVPC and PBF Holding's equity investment in TVPC eliminate in consolidation. |
View original content with multimedia:http://www.prnewswire.com/news-releases/pbf-energy-reports-second-quarter-2017-results-declares-dividend-of-030-per-share-300498940.html
SOURCE PBF Energy Inc.
Article Date
8/3/2017PBF Energy to Attend J.P. Morgan Energy Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., June 23, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be presenting and participating in meetings with investors at the J.P. Morgan Energy Equity Conference on June 28, 2017.
The company's presentation will be available on the Investor Relations section of the PBF Energy website at http://investors.pbfenergy.com/.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
6/23/2017PBF Energy to Release Second Quarter 2017 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., June 23, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that it will release its earnings results for the second quarter 2017 on Thursday, August 3, 2017. The company will host a conference call and webcast regarding second quarter results and other business matters on Thursday, August 3, 2017, at 8:30 a.m. ET.
The call is being webcast and can be accessed at PBF Energy's website, http://www.pbfenergy.com. The call can also be heard by dialing (888) 632-3384 or (785) 424-1675, conference ID: PBFQ217. The audio replay will be available two hours after the end of the call through August 17, 2017, by dialing (800) 839-2475 or (402) 220-7220.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
6/23/2017PBF Logistics to Release Second Quarter 2017 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., June 23, 2017 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that it will release its earnings results for the second quarter 2017 on Thursday, August 3, 2017. The company will host a conference call and webcast regarding second quarter results and other business matters on Thursday, August 3, 2017, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be heard by dialing (888) 632-3384 or (785) 424-1675, conference ID: PBFXQ217. The audio replay will be available two hours after the end of the call through August 17, 2017, by dialing (800) 839-3413 or (402) 220-7236.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
SOURCE PBF Logistics LP
Article Date
6/23/2017PBF Energy to Attend Wells Fargo Energy Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., June 16, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be participating in meetings with investors at the Wells Fargo West Coast Energy Conference from June 20 to June 21, 2017.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
6/16/2017PBF Energy Announces Expiration and Results of Cash Tender Offer by PBF Holding for Any and All of its Outstanding 8.25% Senior Secured Notes due 2020
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., May 26, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today announced that the previously announced cash tender offer (the "offer") by its indirect subsidiary, PBF Holding Company LLC ("PBF Holding"), to purchase any and all of the outstanding 8.25% Senior Secured Notes due 2020 (CUSIP: 69318FAB4) (the "Notes") issued by PBF Holding and PBF Finance Corporation expired at 5:00 p.m., New York City time, on May 26, 2017 (the "Expiration Time").
According to information provided by Global Bondholder Services Corporation, the depositary and information agent for the tender offer, $247,835,000 aggregate principal amount of the Notes were validly tendered on or before the Expiration Time and not validly withdrawn, which amount excludes $5,102,000 aggregate principal amount of the Notes that remain subject to guaranteed delivery procedures.
PBF Holding expects to accept for payment all such Notes validly tendered and not validly withdrawn in the tender offer and expects to make payment for the Notes on May 30, 2017, subject to PBF Holding's successful completion of its previously announced debt financing transaction. PBF Holding expects the payment for the Notes delivered in accordance with the guaranteed delivery procedures to be made on June 1, 2017.
The total consideration payable for each $1,000 principal amount of Notes validly tendered on or before the Expiration Time and accepted for payment is equal to $1,023.75. In addition to the total consideration, holders of Notes accepted for payment will receive accrued and unpaid interest from the last interest payment date for the Notes to, but not including, the settlement date.
PBF Holding has called for redemption all the remaining Notes that are not purchased in the tender offer, in accordance with the redemption provisions of the indenture governing the Notes. The redemption date for the remaining outstanding Notes will be June 21, 2017.
PBF Holding has retained Citigroup Global Markets Inc. to serve as dealer manager for the tender offer. PBF Holding has retained Global Bondholder Services Corporation to serve as the depositary and the information agent for the tender offer. Requests for documents and questions about the tender offer may be directed to Global Bondholder Service Corporation by phone at (212) 430-3774 (for banks and brokers) or (866) 470-3900 or in writing at 65 Broadway – Suite 404, Attn: Corporate Actions, New York, New York 10006. Copies may also be obtained at http://www.gbsc-usa.com/PBF/.
The tender offer is subject to the satisfaction of certain conditions, including a financing condition. If any of the conditions are not satisfied, PBF Holding is not obligated to accept for payment, purchase or pay for, and may delay the acceptance for payment of, any tendered Notes, in each event subject to applicable laws, and may terminate the tender offer.
This press release is neither an offer to purchase nor a solicitation of an offer to sell the Notes or any other securities. The tender offer was made only by and pursuant to the terms of the Offer to Purchase and the related Letter of Transmittal and Notice of Guaranteed Delivery, and the information in this press release is qualified by reference to the Offer to Purchase and the related Letter of Transmittal and Notice of Guaranteed Delivery. This press release does not constitute a notice of redemption under the optional redemption provisions of the indenture relating to the Notes.
Forward-Looking Statements
This press release includes certain statements that may constitute forward-looking statements. Such forward-looking statements are subject to the general risks inherent in our business and are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management's control. Our expectations may or may not be realized or may be based upon assumptions or judgments that prove to be incorrect. Additional information relating to the uncertainties and other factors that can affect our business and future results are discussed in the "Risk Factors" section or other sections in our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by us from time to time with the Securities and Exchange Commission. The forward-looking statements are only as of the date made, and we undertake no obligation to (and expressly disclaims any obligation to) update or revise any forward-looking statement to reflect new information or events, other than as required by 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).
SOURCE PBF Energy Inc.
Article Date
5/26/2017PBF Logistics to attend MLPA 2017 Investor Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., May 25, 2017 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that the partnership's management will be meeting with investors and industry analysts on May 31 to June 2, 2017, at the 2017 MLPA (Master Limited Partnership Association) conference in Orlando, Florida.
The partnership's meeting materials will be available on the Investor Relations section of the PBF Logistics LP website at www.pbflogistics.com.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
SOURCE PBF Logistics LP
Article Date
5/25/20175/5/2017 - PBF Energy to Attend Industry Conferences
PBF Energy to Attend Industry Conferences
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., May 5, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be participating in meetings with investors at the Citi Global Energy and Utilities Conference on May 10, 2017, and the Morgan Stanley Refining Conference on May 11, 2017.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
5/5/2017PBF Logistics Announces Acquisition of Toledo Terminal from Sunoco Logistics
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., April 17, 2017 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) (the "Partnership") announced today that its wholly-owned subsidiary has acquired the Toledo, Ohio, refined products terminal assets of Sunoco Logistics LP ("Sunoco Logistics") for $10.0 million in cash. The Toledo Terminal is directly connected to and currently supplied by PBF Energy Inc.'s (NYSE: PBF) Toledo refinery.
PBF Logistics GP LLC Chief Executive Officer Tom Nimbley said, "We are pleased with our acquisition of the Toledo Terminal which is PBFX's second third-party acquisition and third transaction completed this year. The combined transactions represent a $15 million increase to the Partnership's forecasted annualized EBITDA. We welcome the employees of the terminal to the PBFX family and look forward to maximizing the potential of our newest asset."
Located adjacent to PBF Energy's Toledo refinery, the Toledo Terminal is comprised of a 10-bay truck rack and over 110,000 barrels of chemicals, clean product and additive storage capacity.
Non-GAAP Measures
PBF Logistics LP Reconciliation of amounts under US GAAP to Forecasted EBITDA (unaudited, in millions)
Reconciliation of combined Toledo Terminal and previously announced organic projects estimated annualized net income to forecasted EBITDA:
|
Estimated net income |
$9.3 |
|
Add: Depreciation and amortization expense |
4.7 |
|
Add: Interest expense, net and other financing costs |
1.0 |
|
Forecasted EBITDA |
$15.0 |
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA should not be considered an alternative to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. Due to the forward-looking nature of forecasted EBITDA, information to reconcile forecasted EBITDA to forecasted cash flow from operating activities is not available as management is unable to project working capital changes for future periods at this time.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Forward-Looking Statements
Disclosures in this press release contain "forward-looking statements." All statements, other than statements of historical facts, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the accretion expected to be realized by the Partnership as a result of the acquisition and the expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of the Partnership and its subsidiaries. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports filed by the Partnership with the Securities and Exchange Commission. Any forward-looking statement applies only as of the date on which such statement is made and the Partnership does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE PBF Logistics LP
Article Date
4/17/2017PBF Logistics to Release First Quarter 2017 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., March 24, 2017 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that it will release its earnings results for the first quarter 2017 on Thursday, May 4, 2017. The company will host a conference call and webcast regarding first quarter results and other business matters on Thursday, May 4, 2017, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be heard by dialing (888) 632-3384 or (785) 424-1675, conference ID: PBFXQ117. The audio replay will be available two hours after the end of the call through May 22, 2017, by dialing (800) 757-4761 or (402) 220-7215.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
SOURCE PBF Logistics LP
Article Date
3/24/2017PBF Energy to Release First Quarter 2017 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., March 24, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) announced today that it will release its earnings results for the first quarter 2017 on Thursday, May 4, 2017. The company will host a conference call and webcast regarding first quarter results and other business matters on Thursday, May 4, 2017, at 8:30 a.m. ET.
The call is being webcast and can be accessed at PBF Energy's website, http://www.pbfenergy.com. The call can also be heard by dialing (888) 632-3385 or (785) 424-1674, conference ID: PBFQ117. The audio replay will be available two hours after the end of the call through May 22, 2017, by dialing (800) 839-0866 or (402) 220-0662.
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% of the limited partnership interest of PBF Logistics LP (NYSE:PBFX).
SOURCE PBF Energy Inc.
Article Date
3/24/2017PBF Energy Will Participate in the Scotia Howard Weil 2017 Energy Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., March 22, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) announced today that Tom Nimbley, Chairman and Chief Executive Officer, will present at the Scotia Howard Weil Energy Conference on Monday, March 27, 2017. The company's management will also participate in meetings with investors on March 27, 2017, and March 28, 2017.
The company's presentation will be available on the Investor Relations section of the PBF Energy website at http://investors.pbfenergy.com/.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
3/22/20172/24/2017 - PBF Logistics Filed 2016 Form 10-K
PBF Logistics Filed 2016 Form 10-K
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Feb. 24, 2017 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K for the fiscal year ended December 31, 2016. The filing can be viewed on the Partnership's website at www.pbflogistics.com.
Upon written request, limited partners may receive, free of charge, a hard copy of the Partnership's Annual Report on Form 10-K (including complete audited financial statements). Requests should be communicated in writing to PBF Logistics LP, Attention: Investor Relations, at 1 Sylvan Way, 2nd Floor, Parsippany, New Jersey 07054.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
SOURCE PBF Logistics LP
Article Date
2/24/2017PBF Energy Will Participate in the Bank of America Merrill Lynch Refining Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Feb. 22, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be participating in meetings with investors at the Bank of America Merrill Lynch Refining Conference on Thursday, March 2, 2017.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
2/22/2017PBF Energy Reports Fourth Quarter 2016 Results, Declares Dividend of $0.30 Per Share
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Feb. 16, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) today reported fourth quarter 2016 income from operations of $139.8 million as compared to a loss from operations of $178.4 million for fourth quarter of 2015. Excluding special items, fourth quarter 2016 loss from operations was $60.7 million as compared to income from operations of $167.7 million for the fourth quarter of 2015. Special items in the fourth quarter 2016 results include a net, non-cash, after-tax gain of $122.2 million, or $1.17 per share, lower-of-cost-or-market ("LCM") inventory adjustment and an after-tax benefit of $9.8 million, or $0.09 per share, related to a change in the tax receivable liability agreement. Additionally, included in our results was a net after-tax charge totaling approximately $7.2 million, or $0.07 per share, related to an inventory layer decrement.
The company reported fourth quarter 2016 net income of $71.8 million, and net income attributable to PBF Energy Inc. of $54.6 million or $0.54 per share. This compares to net loss of $121.5 million, and net loss attributable to PBF Energy Inc. of $119.5 million or $1.24 per share for the fourth quarter 2015. Adjusted fully-converted net loss for the fourth quarter 2016, excluding special items, was $74.9 million, or $0.71 per share on a fully-exchanged, fully-diluted basis, as described below, compared to adjusted fully-converted net income of $71.0 million, or $0.70 per share, for the fourth quarter 2015.
Net income attributable to PBF Energy Inc. for the year-ended December 31, 2016 was $170.8 million, or $1.74 per share as compared to net income of $146.4 million, or $1.65 per share, for the year-ended December 31, 2015. Income from operations for the years ended December 31, 2016 and 2015 were $498.9 million and $360.1 million, respectively. Excluding special items, loss from operations was $22.5 million for the year-ended December 31, 2016 as compared to income from operations of $787.3 million for the year-ended December 31, 2015. Adjusted fully-converted net loss for the year 2016, excluding special items, was $145.7 million, or $1.41 per share on a fully-exchanged, fully-diluted basis, as compared to adjusted fully-converted net income of $402.1 million, or $4.27 per share, for the fourth quarter 2015. PBF Energy's financial results reflect the consolidation of PBF Logistics LP (NYSE: PBFX), a master limited partnership of which PBF indirectly owns the general partner and approximately 44.2% of the limited partner interests as of December 31, 2016.
"Our fourth quarter and full-year 2016 results reflect the numerous market and regulatory headwinds faced by the independent refiners and we, as a company, did not operate our assets to the fullest of their potential," said Tom Nimbley, PBF Energy's Chairman and CEO, "Looking ahead, with the proceeds from our recent equity raise, we are pleased to be starting the year with a strong and flexible balance sheet. We are committed to the continued integration of both Torrance and Chalmette, and further optimizing our entire system in 2017."
PBF Logistics will proceed with two organic growth projects comprised of the construction of a 625,000 barrel tank at PBF Energy's Chalmette refinery and development of a natural gas pipeline to supply PBF Energy's Paulsboro refinery. PBF Logistics expects to spend approximately $82.1 million dollars to complete both projects at an attractive return. Both projects will be funded by PBF Logistics and supported by long-term agreements with minimum volume commitments from PBF Energy.
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 13, 2017, to holders of record as of February 27, 2017.
Outlook
For the first quarter 2017, we expect East Coast total throughput to average 310,000 to 330,000 barrels per day; Mid-Continent total throughput is expected to average 135,000 to 145,000 barrels per day; Gulf Coast total throughput is expected to average 150,000 to 160,000 barrels per day and West Coast total throughput is expected to average 145,000 to 155,000 barrels per day. These figures include the impact of the previously announced planned turnarounds at the 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 per fully-exchanged, fully-diluted share, gross refining margin, gross refining margin per barrel of throughput, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization), Adjusted EBITDA and projected EBITDA related to the refinery acquisitions. PBF believes that non-GAAP financial measures provide useful information about its operating performance and financial results. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBF's non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the non-GAAP measures used in this release and reconciliations to the most directly comparable GAAP measures.
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 16, 2017, at 8:30 a.m. ET. The call is being webcast and can be accessed at PBF Energy's website, http://www.pbfenergy.com. The call can also be heard by dialing (888) 632-3382 or (785) 424-1677, conference ID: PBFQ416. The audio replay will be available two hours after the end of the call through March 6, 2017, by dialing (800) 283-5758 or (402) 220-0863.
Forward-Looking Statements
Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the company's control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the company's filings with the SEC, as well as the risk disclosed in PBF Logistics LP's SEC filings and any impact PBF Logistics LP may have on the company's credit rating, cost of funds, employees, customer and vendors; risk relating to the securities markets generally; and the impact of adverse market conditions affecting the company, unanticipated developments, regulatory approvals, changes in laws and other events that negatively impact the company. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.
PBF Energy Inc. also currently indirectly owns the general partner and approximately 44.2% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
|
(Unaudited, in thousands, except share and per share data) | ||||||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||||||
|
December 31, |
December 31, | |||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
|
Revenues |
$ |
4,748,568 |
$ |
3,360,489 |
$ |
15,920,424 |
$ |
13,123,929 |
||||||||||||
|
Costs and expenses: |
||||||||||||||||||||
|
Cost of sales, excluding depreciation |
4,074,222 |
3,162,210 |
13,598,341 |
11,481,614 |
||||||||||||||||
|
Operating expenses, excluding depreciation |
433,902 |
268,577 |
1,423,198 |
904,525 |
||||||||||||||||
|
General and administrative expenses |
41,477 |
54,919 |
166,452 |
181,266 |
||||||||||||||||
|
(Gain) loss on sale of assets |
(7) |
129 |
11,374 |
(1,004) |
||||||||||||||||
|
Depreciation and amortization expense |
59,147 |
53,016 |
222,176 |
197,417 |
||||||||||||||||
|
4,608,741 |
3,538,851 |
15,421,541 |
12,763,818 |
|||||||||||||||||
|
Income (loss) from operations |
139,827 |
(178,362) |
498,883 |
360,111 |
||||||||||||||||
|
Other income (expense) |
||||||||||||||||||||
|
Change in tax receivable agreement liability |
16,051 |
20,365 |
12,908 |
18,150 |
||||||||||||||||
|
Change in fair value of catalyst lease |
5,978 |
1,202 |
1,422 |
10,184 |
||||||||||||||||
|
Interest expense, net |
(38,051) |
(29,093) |
(150,045) |
(106,187) |
||||||||||||||||
|
Income (loss) before income taxes |
123,805 |
(185,888) |
363,168 |
282,258 |
||||||||||||||||
|
Income tax expense (benefit) |
52,043 |
(64,347) |
137,650 |
86,725 |
||||||||||||||||
|
Net income (loss) |
71,762 |
(121,541) |
225,518 |
195,533 |
||||||||||||||||
|
Less: net income (loss) attributable to noncontrolling |
17,204 |
(2,012) |
54,707 |
49,132 |
||||||||||||||||
|
Net income (loss) attributable to PBF Energy Inc. |
$ |
54,558 |
$ |
(119,529) |
$ |
170,811 |
$ |
146,401 |
||||||||||||
|
Net income (loss) available to Class A common stock per |
||||||||||||||||||||
|
Basic |
$ |
0.55 |
$ |
(1.24) |
$ |
1.74 |
$ |
1.66 |
||||||||||||
|
Diluted |
$ |
0.54 |
$ |
(1.24) |
$ |
1.74 |
$ |
1.65 |
||||||||||||
|
Weighted-average shares outstanding-basic |
99,854,984 |
96,135,314 |
98,334,302 |
88,106,999 |
||||||||||||||||
|
Weighted-average shares outstanding-diluted |
104,815,217 |
96,135,314 |
103,606,709 |
94,138,850 |
||||||||||||||||
|
Dividends per common share |
$ |
0.30 |
$ |
0.30 |
$ |
1.20 |
$ |
1.20 |
||||||||||||
|
Adjusted fully-converted net income (loss) and adjusted |
||||||||||||||||||||
|
Adjusted fully-converted net income (loss) |
$ |
57,086 |
$ |
(125,738) |
$ |
179,893 |
$ |
155,012 |
||||||||||||
|
Adjusted fully-converted net income (loss) per fully exchanged, fully diluted share |
$ |
0.54 |
$ |
(1.23) |
$ |
1.74 |
$ |
1.65 |
||||||||||||
|
Adjusted fully-converted shares outstanding - diluted |
104,815,217 |
102,010,309 |
103,606,709 |
94,138,850 |
||||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||
|
(Unaudited, in thousands, except share and per share data) | |||||||||||||||||||||
|
Three Months Ended |
Year Ended | ||||||||||||||||||||
|
RECONCILIATION OF NET INCOME (LOSS) TO |
December 31, |
December 31, | |||||||||||||||||||
|
ADJUSTED FULLY-CONVERTED NET (LOSS) INCOME (Note 1) |
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
|
Net income (loss) attributable to PBF Energy Inc. stockholders |
$ |
54,558 |
$ |
(119,529) |
$ |
170,811 |
$ |
146,401 |
|||||||||||||
|
Add: Net income (loss) attributable to the noncontrolling interest |
4,149 |
(10,279) |
14,903 |
14,257 |
|||||||||||||||||
|
Less: Income tax (expense) benefit (Note 3) |
(1,621) |
4,070 |
(5,821) |
(5,646) |
|||||||||||||||||
|
Adjusted fully-converted net income (loss) |
$ |
57,086 |
$ |
(125,738) |
$ |
179,893 |
$ |
155,012 |
|||||||||||||
|
Special items (Note 4): |
|||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
(200,515) |
346,079 |
(521,348) |
427,226 |
|||||||||||||||||
|
Add: Change in tax receivable agreement liability (Note 15) |
(16,051) |
(20,365) |
(12,908) |
(18,150) |
|||||||||||||||||
|
Less: Recomputed income taxes on special items (Note 5, Note 15) |
84,593 |
(128,983) |
208,686 |
(161,994) |
|||||||||||||||||
|
Adjusted fully-converted net (loss) income excluding special items (Note |
$ |
(74,887) |
$ |
70,993 |
$ |
(145,677) |
$ |
402,094 |
|||||||||||||
|
Weighted-average shares outstanding of PBF Energy Inc. |
99,854,984 |
96,135,314 |
98,334,302 |
88,106,999 |
|||||||||||||||||
|
Conversion of PBF LLC Series A Units (Note 6) |
4,591,968 |
5,046,988 |
4,865,133 |
5,530,568 |
|||||||||||||||||
|
Common stock equivalents (Note 7) |
368,265 |
828,007 |
407,274 |
501,283 |
|||||||||||||||||
|
Fully-converted shares outstanding - diluted |
104,815,217 |
102,010,309 |
103,606,709 |
94,138,850 |
|||||||||||||||||
|
Adjusted fully-converted net income (loss) (per fully exchanged, fully |
$ |
0.54 |
$ |
(1.23) |
$ |
1.74 |
$ |
1.65 |
|||||||||||||
|
Adjusted fully-converted net (loss) income excluding special items (per |
$ |
(0.71) |
$ |
0.70 |
$ |
(1.41) |
$ |
4.27 |
|||||||||||||
|
Three Months Ended |
Year Ended | ||||||||||||||||||||
|
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO |
December 31, |
December 31, | |||||||||||||||||||
|
(LOSS) INCOME FROM OPERATIONS EXCLUDING SPECIAL ITEMS |
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
|
Income (loss) from operations |
$ |
139,827 |
$ |
(178,362) |
$ |
498,883 |
$ |
360,111 |
|||||||||||||
|
Special items (Note 4): |
|||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
(200,515) |
346,079 |
(521,348) |
427,226 |
|||||||||||||||||
|
(Loss) income from operations excluding special items (Note 4) |
$ |
(60,688) |
$ |
167,717 |
$ |
(22,465) |
$ |
787,337 |
|||||||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||
|
EBITDA RECONCILIATIONS (Note 8) | |||||||||||||||||||||
|
(Unaudited, in thousands, except share and per share data) | |||||||||||||||||||||
|
Three Months Ended |
Year Ended | ||||||||||||||||||||
|
December 31, |
December 31, | ||||||||||||||||||||
|
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA |
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
|
Net income (loss) |
$ |
71,762 |
$ |
(121,541) |
$ |
225,518 |
$ |
195,533 |
|||||||||||||
|
Add: Depreciation and amortization expense |
59,147 |
53,016 |
222,176 |
197,417 |
|||||||||||||||||
|
Add: Interest expense, net |
38,051 |
29,093 |
150,045 |
106,187 |
|||||||||||||||||
|
Add: Income tax expense (benefit) |
52,043 |
(64,347) |
137,650 |
86,725 |
|||||||||||||||||
|
EBITDA |
$ |
221,003 |
$ |
(103,779) |
$ |
735,389 |
$ |
585,862 |
|||||||||||||
|
Special Items (Note 4): |
|||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
(200,515) |
346,079 |
(521,348) |
427,226 |
|||||||||||||||||
|
Add: Change in tax receivable agreement liability (Note 15) |
(16,051) |
(20,365) |
(12,908) |
(18,150) |
|||||||||||||||||
|
EBITDA excluding special items (Note 4) |
$ |
4,437 |
$ |
221,935 |
$ |
201,133 |
$ |
994,938 |
|||||||||||||
|
Three Months Ended |
Year Ended | ||||||||||||||||||||
|
December 31, |
December 31, | ||||||||||||||||||||
|
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA |
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
|
EBITDA |
$ |
221,003 |
$ |
(103,779) |
$ |
735,389 |
$ |
585,862 |
|||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
(200,515) |
346,079 |
(521,348) |
427,226 |
|||||||||||||||||
|
Add: Stock based compensation |
6,325 |
4,741 |
22,656 |
13,497 |
|||||||||||||||||
|
Add: Change in tax receivable agreement liability (Note 15) |
(16,051) |
(20,365) |
(12,908) |
(18,150) |
|||||||||||||||||
|
Add: Non-cash change in fair value of catalyst leases |
(5,978) |
(1,202) |
(1,422) |
(10,184) |
|||||||||||||||||
|
Adjusted EBITDA |
$ |
4,784 |
$ |
225,474 |
$ |
222,367 |
$ |
998,251 |
|||||||||||||
|
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, | ||||||||||
|
2016 |
2015 | ||||||||||
|
Balance Sheet Data: |
|||||||||||
|
Cash, cash equivalents and marketable securities |
$ |
786,298 |
$ |
1,178,578 |
|||||||
|
Inventories |
1,863,560 |
1,174,272 |
|||||||||
|
Total assets |
7,621,927 |
6,105,124 |
|||||||||
|
Total debt |
2,148,234 |
1,840,355 |
|||||||||
|
Total equity |
$ |
2,570,684 |
$ |
2,095,857 |
|||||||
|
Total equity excluding special items (Note 17) |
$ |
2,912,375 |
$ |
2,763,118 |
|||||||
|
Total debt to capitalization ratio (Note 17) |
46 |
% |
47 |
% | |||||||
|
Total debt to capitalization ratio, excluding special items (Note 17) |
42 |
% |
40 |
% | |||||||
|
Net debt to capitalization ratio (Note 17) |
35 |
% |
24 |
% | |||||||
|
Net debt to capitalization ratio, excluding special items (Note 17) |
32 |
% |
19 |
% | |||||||
|
SUMMARIZED STATEMENT OF CASH FLOW DATA | |||||||||||
|
(Unaudited, in thousands) | |||||||||||
|
Year Ended December 31, | |||||||||||
|
2016 |
2015 | ||||||||||
|
Cash flows provided by operations |
$ |
651,934 |
$ |
560,424 |
|||||||
|
Cash flows used in investing activities |
(1,393,935) |
(812,113) |
|||||||||
|
Cash flows provided by financing activities |
543,955 |
798,136 |
|||||||||
|
Net (decrease) increase in cash and cash equivalents |
(198,046) |
546,447 |
|||||||||
|
Cash and cash equivalents, beginning of period |
944,320 |
397,873 |
|||||||||
|
Cash and cash equivalents, end of period |
$ |
746,274 |
$ |
944,320 |
|||||||
|
Marketable securities |
40,024 |
234,258 |
|||||||||
|
Net cash, cash equivalents and marketable securities |
$ |
786,298 |
$ |
1,178,578 |
|||||||
|
See Footnotes to Earnings Release Tables | |||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||
|
SEGMENT FINANCIAL INFORMATION (Note 9) | |||||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||||
|
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 |
52,495 |
5,234 |
1,418 |
— |
59,147 |
||||||||||||||
|
Income (loss) from operations |
147,901 |
35,784 |
(39,800) |
(4,058) |
139,827 |
||||||||||||||
|
Interest expense, net |
111 |
7,874 |
30,066 |
— |
38,051 |
||||||||||||||
|
Capital expenditures (Note 16) |
$ |
163,325 |
$ |
11,653 |
$ |
3,633 |
$ |
— |
$ |
178,611 |
|||||||||
|
Three Months Ended December 31, 2015 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
3,360,489 |
$ |
37,306 |
$ |
— |
$ |
(37,306) |
$ |
3,360,489 |
|||||||||
|
Depreciation and amortization |
49,330 |
1,663 |
2,023 |
— |
53,016 |
||||||||||||||
|
Income (loss) from operations |
(152,187) |
24,462 |
(50,637) |
— |
(178,362) |
||||||||||||||
|
Interest expense, net |
3,674 |
7,189 |
18,230 |
— |
29,093 |
||||||||||||||
|
Capital expenditures |
$ |
637,351 |
$ |
864 |
$ |
6,956 |
$ |
— |
$ |
645,171 |
|||||||||
|
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 |
202,185 |
14,156 |
5,835 |
— |
222,176 |
||||||||||||||
|
Income (loss) from operations |
550,577 |
112,055 |
(158,070) |
(5,679) |
498,883 |
||||||||||||||
|
Interest expense, net |
2,938 |
30,433 |
116,674 |
— |
150,045 |
||||||||||||||
|
Capital expenditures (Note 16) |
$ |
1,477,962 |
$ |
114,680 |
$ |
20,229 |
$ |
— |
$ |
1,612,871 |
|||||||||
|
Year Ended December 31, 2015 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
13,123,929 |
$ |
142,102 |
$ |
— |
$ |
(142,102) |
$ |
13,123,929 |
|||||||||
|
Depreciation and amortization |
181,147 |
6,582 |
9,688 |
— |
197,417 |
||||||||||||||
|
Income (loss) from operations |
441,033 |
96,376 |
(177,298) |
— |
360,111 |
||||||||||||||
|
Interest expense, net |
17,061 |
21,254 |
67,872 |
— |
106,187 |
||||||||||||||
|
Capital expenditures |
$ |
969,895 |
$ |
2,046 |
$ |
9,139 |
$ |
— |
$ |
981,080 |
|||||||||
|
Balance at December 31, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Total Assets (Note 19) |
$ |
6,428,681 |
$ |
748,130 |
$ |
482,979 |
$ |
(37,863) |
$ |
7,621,927 |
|||||||||
|
Balance at December 31, 2015 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Total Assets |
$ |
5,087,554 |
$ |
422,902 |
$ |
618,617 |
$ |
(23,949) |
$ |
6,105,124 |
|||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
MARKET INDICATORS AND KEY OPERATING INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||||||
|
December 31, |
December 31, | |||||||||||||||||||
|
Market Indicators (dollars per barrel) (Note 10) |
2016 |
2015 |
2016 |
2015 | ||||||||||||||||
|
Dated Brent Crude |
$ |
49.56 |
$ |
43.68 |
$ |
43.91 |
$ |
52.56 |
||||||||||||
|
West Texas Intermediate (WTI) crude oil |
$ |
49.23 |
$ |
42.07 |
$ |
43.34 |
$ |
48.71 |
||||||||||||
|
Light Louisiana Sweet (LLS) crude oil |
$ |
50.60 |
$ |
43.53 |
$ |
45.03 |
$ |
52.36 |
||||||||||||
|
Alaska North Slope (ANS) crude oil |
$ |
50.06 |
$ |
43.62 |
$ |
43.67 |
$ |
52.44 |
||||||||||||
|
Crack Spreads |
||||||||||||||||||||
|
Dated Brent (NYH) 2-1-1 |
$ |
14.43 |
$ |
12.16 |
$ |
13.49 |
$ |
16.35 |
||||||||||||
|
WTI (Chicago) 4-3-1 |
$ |
10.30 |
$ |
13.06 |
$ |
12.38 |
$ |
17.91 |
||||||||||||
|
LLS (Gulf Coast) 2-1-1 |
$ |
11.98 |
$ |
9.62 |
$ |
10.75 |
$ |
14.39 |
||||||||||||
|
ANS (West Coast) 4-3-1 |
$ |
14.16 |
$ |
21.73 |
$ |
16.46 |
$ |
26.46 |
||||||||||||
|
Crude Oil Differentials |
||||||||||||||||||||
|
Dated Brent (foreign) less WTI |
$ |
0.33 |
$ |
1.61 |
$ |
0.56 |
$ |
3.85 |
||||||||||||
|
Dated Brent less Maya (heavy, sour) |
$ |
6.70 |
$ |
9.35 |
$ |
7.36 |
$ |
8.45 |
||||||||||||
|
Dated Brent less WTS (sour) |
$ |
1.24 |
$ |
1.95 |
$ |
1.42 |
$ |
3.59 |
||||||||||||
|
Dated Brent less ASCI (sour) |
$ |
3.59 |
$ |
4.97 |
$ |
3.92 |
$ |
4.57 |
||||||||||||
|
WTI less WCS (heavy, sour) |
$ |
13.79 |
$ |
12.96 |
$ |
12.57 |
$ |
11.87 |
||||||||||||
|
WTI less Bakken (light, sweet) |
$ |
1.98 |
$ |
1.03 |
$ |
1.32 |
$ |
2.89 |
||||||||||||
|
WTI less Syncrude (light, sweet) |
$ |
(0.04) |
$ |
(2.07) |
$ |
(2.01) |
$ |
(1.45) |
||||||||||||
|
WTI less ANS (light, sweet) |
$ |
(0.83) |
$ |
(1.55) |
$ |
(0.33) |
$ |
(3.73) |
||||||||||||
|
Natural gas (dollars per MMBTU) |
$ |
3.18 |
$ |
2.23 |
$ |
2.55 |
$ |
2.63 |
||||||||||||
|
Key Operating Information |
||||||||||||||||||||
|
Production (barrels per day ("bpd") in thousands) |
786.1 |
636.6 |
734.3 |
511.9 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
775.5 |
629.9 |
727.7 |
516.4 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of |
71.3 |
57.9 |
266.4 |
188.4 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
2.85 |
$ |
(1.98) |
$ |
2.73 |
$ |
3.03 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of |
$ |
5.80 |
$ |
8.79 |
$ |
6.09 |
$ |
10.29 |
||||||||||||
|
Refinery operating expense per barrel of throughput (Note |
$ |
5.86 |
$ |
4.55 |
$ |
5.22 |
$ |
4.72 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13) |
||||||||||||||||||||
|
Heavy |
36 |
% |
17 |
% |
26 |
% |
14 |
% | ||||||||||||
|
Medium |
32 |
% |
47 |
% |
37 |
% |
49 |
% | ||||||||||||
|
Light |
18 |
% |
22 |
% |
25 |
% |
26 |
% | ||||||||||||
|
Other feedstocks and blends |
14 |
% |
14 |
% |
12 |
% |
11 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
52 |
% |
50 |
% |
50 |
% |
49 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
32 |
% |
35 |
% |
31 |
% |
35 |
% | ||||||||||||
|
Lubes |
1 |
% |
1 |
% |
1 |
% |
1 |
% | ||||||||||||
|
Chemicals |
3 |
% |
3 |
% |
3 |
% |
3 |
% | ||||||||||||
|
Other |
13 |
% |
11 |
% |
15 |
% |
12 |
% | ||||||||||||
|
Total yield |
101 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||||||
|
December 31, |
December 31, | |||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
|
Supplemental Operating Information - East Coast |
||||||||||||||||||||
|
Production (bpd in thousands) |
323.6 |
345.6 |
322.9 |
322.9 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
324.5 |
346.6 |
327.0 |
330.7 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of |
29.9 |
31.9 |
119.7 |
120.7 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
2.01 |
$ |
(1.06) |
$ |
1.28 |
$ |
1.34 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of |
$ |
4.66 |
$ |
9.16 |
$ |
5.07 |
$ |
9.28 |
||||||||||||
|
Refinery operating expense per barrel of throughput (Note |
$ |
4.40 |
$ |
4.39 |
$ |
4.42 |
$ |
4.67 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Heavy |
35 |
% |
18 |
% |
22 |
% |
18 |
% | ||||||||||||
|
Medium |
38 |
% |
60 |
% |
52 |
% |
58 |
% | ||||||||||||
|
Light |
10 |
% |
5 |
% |
11 |
% |
9 |
% | ||||||||||||
|
Other feedstocks and blends |
17 |
% |
17 |
% |
15 |
% |
15 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
47 |
% |
49 |
% |
47 |
% |
47 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
35 |
% |
34 |
% |
31 |
% |
34 |
% | ||||||||||||
|
Lubes |
2 |
% |
2 |
% |
2 |
% |
2 |
% | ||||||||||||
|
Chemicals |
2 |
% |
2 |
% |
2 |
% |
2 |
% | ||||||||||||
|
Other |
14 |
% |
13 |
% |
17 |
% |
14 |
% | ||||||||||||
|
Total yield |
100 |
% |
100 |
% |
99 |
% |
99 |
% | ||||||||||||
|
Supplemental Operating Information - Mid-Continent |
||||||||||||||||||||
|
Production (bpd in thousands) |
143.1 |
159.1 |
161.8 |
155.8 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
139.3 |
156.9 |
159.1 |
153.8 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
12.8 |
14.4 |
58.3 |
56.1 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
1.59 |
$ |
(7.37) |
$ |
2.57 |
$ |
5.16 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of |
$ |
3.22 |
$ |
7.67 |
$ |
5.28 |
$ |
12.69 |
||||||||||||
|
Refinery operating expense per barrel of throughput (Note |
$ |
5.29 |
$ |
4.97 |
$ |
4.59 |
$ |
4.88 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Medium |
43 |
% |
32 |
% |
36 |
% |
35 |
% | ||||||||||||
|
Light |
56 |
% |
65 |
% |
62 |
% |
63 |
% | ||||||||||||
|
Other feedstocks and blends |
1 |
% |
3 |
% |
2 |
% |
2 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
55 |
% |
55 |
% |
53 |
% |
52 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
36 |
% |
36 |
% |
35 |
% |
36 |
% | ||||||||||||
|
Chemicals |
6 |
% |
5 |
% |
5 |
% |
5 |
% | ||||||||||||
|
Other |
6 |
% |
5 |
% |
9 |
% |
8 |
% | ||||||||||||
|
Total yield |
103 |
% |
101 |
% |
102 |
% |
101 |
% | ||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||||||
|
December 31, |
December 31, | |||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
|
Supplemental Operating Information - Gulf Coast |
||||||||||||||||||||
|
Production (bpd in thousands) |
168.8 |
199.0 |
175.6 |
199.0 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
163.5 |
190.8 |
169.3 |
190.8 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
15.0 |
11.6 |
61.9 |
11.6 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
2.18 |
$ |
(0.83) |
$ |
2.69 |
$ |
(0.83) |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of |
$ |
6.10 |
$ |
9.17 |
$ |
6.67 |
$ |
9.17 |
||||||||||||
|
Refinery operating expense per barrel of throughput (Note |
$ |
6.37 |
$ |
4.48 |
$ |
5.55 |
$ |
4.48 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Heavy |
35 |
% |
35 |
% |
38 |
% |
35 |
% | ||||||||||||
|
Medium |
29 |
% |
32 |
% |
20 |
% |
32 |
% | ||||||||||||
|
Light |
17 |
% |
18 |
% |
26 |
% |
18 |
% | ||||||||||||
|
Other feedstocks and blends |
19 |
% |
15 |
% |
16 |
% |
15 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
48 |
% |
49 |
% |
47 |
% |
49 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
31 |
% |
35 |
% |
31 |
% |
35 |
% | ||||||||||||
|
Chemicals |
6 |
% |
5 |
% |
6 |
% |
5 |
% | ||||||||||||
|
Other |
15 |
% |
12 |
% |
16 |
% |
12 |
% | ||||||||||||
|
Total yield |
100 |
% |
101 |
% |
100 |
% |
101 |
% | ||||||||||||
|
Supplemental Operating Information - West Coast |
||||||||||||||||||||
|
Production (bpd in thousands) |
150.6 |
N/A |
147.1 |
N/A |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
148.2 |
N/A |
143.9 |
N/A |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of |
13.6 |
N/A |
26.5 |
N/A |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
2.18 |
N/A |
$ |
3.00 |
N/A |
||||||||||||||
|
Gross refining margin, excluding special items, per barrel of |
$ |
10.36 |
N/A |
$ |
11.14 |
N/A |
||||||||||||||
|
Refinery operating expense per barrel of throughput (Note |
$ |
9.04 |
N/A |
$ |
9.46 |
N/A |
||||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Heavy |
74 |
% |
N/A |
77 |
% |
N/A |
||||||||||||||
|
Medium |
11 |
% |
N/A |
9 |
% |
N/A |
||||||||||||||
|
Other feedstocks and blends |
15 |
% |
N/A |
14 |
% |
N/A |
||||||||||||||
|
Total throughput |
100 |
% |
N/A |
100 |
% |
N/A |
||||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
63 |
% |
N/A |
62 |
% |
N/A |
||||||||||||||
|
Distillates and distillate blendstocks |
25 |
% |
N/A |
25 |
% |
N/A |
||||||||||||||
|
Other |
14 |
% |
N/A |
16 |
% |
N/A |
||||||||||||||
|
Total yield |
102 |
% |
N/A |
103 |
% |
N/A |
||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||
|
GROSS REFINING MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note 11) | |||||||||||||||||||||
|
(Unaudited, in thousands, except per barrel amounts) | |||||||||||||||||||||
|
Three Months Ended |
Three Months Ended | ||||||||||||||||||||
|
December 31, 2016 |
December 31, 2015 | ||||||||||||||||||||
|
per barrel of |
per barrel of | ||||||||||||||||||||
|
RECONCILIATION OF GROSS MARGIN TO GROSS |
$ |
throughput |
$ |
throughput | |||||||||||||||||
|
Gross margin |
$ |
203,455 |
$ |
2.85 |
$ |
(114,877) |
$ |
(1.98) |
|||||||||||||
|
Less: Revenues of PBFX |
(61,694) |
(0.86) |
(37,306) |
(0.64) |
|||||||||||||||||
|
Add: Affiliate Cost of sales of PBFX |
1,215 |
0.02 |
2,340 |
0.04 |
|||||||||||||||||
|
Add: Refinery operating expense |
418,359 |
5.86 |
263,826 |
4.55 |
|||||||||||||||||
|
Add: Refinery depreciation |
52,532 |
0.74 |
49,330 |
0.85 |
|||||||||||||||||
|
Gross refining margin |
$ |
613,867 |
$ |
8.61 |
$ |
163,313 |
$ |
2.82 |
|||||||||||||
|
Special Items (Note 4): |
|||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
(200,515) |
(2.81) |
346,079 |
5.97 |
|||||||||||||||||
|
Gross refining margin excluding special items (Note 4) |
$ |
413,352 |
$ |
5.80 |
$ |
509,392 |
$ |
8.79 |
|||||||||||||
|
Year Ended |
Year Ended | ||||||||||||||||||||
|
December 31, 2016 |
December 31, 2015 | ||||||||||||||||||||
|
per barrel of |
per barrel of | ||||||||||||||||||||
|
RECONCILIATION OF GROSS MARGIN TO GROSS |
$ |
throughput |
$ |
throughput | |||||||||||||||||
|
Gross margin |
$ |
727,496 |
$ |
2.73 |
$ |
571,524 |
$ |
3.03 |
|||||||||||||
|
Less: Revenues of PBFX |
(187,335) |
(0.70) |
(138,719) |
(0.74) |
|||||||||||||||||
|
Add: Affiliate Cost of sales of PBFX |
8,701 |
0.03 |
8,734 |
0.05 |
|||||||||||||||||
|
Add: Refinery operating expense |
1,390,582 |
5.22 |
889,368 |
4.72 |
|||||||||||||||||
|
Add: Refinery depreciation |
204,005 |
0.77 |
181,423 |
0.96 |
|||||||||||||||||
|
Gross refining margin |
$ |
2,143,449 |
$ |
8.05 |
$ |
1,512,330 |
$ |
8.02 |
|||||||||||||
|
Special Items (Note 4): |
|||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
(521,348) |
(1.96) |
427,226 |
2.27 |
|||||||||||||||||
|
Gross refining margin excluding special items (Note 4) |
$ |
1,622,101 |
$ |
6.09 |
$ |
1,939,556 |
$ |
10.29 |
|||||||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||
|
FOOTNOTES TO EARNINGS RELEASE TABLES | ||||||||||||||||||
|
(1) Adjusted fully-converted information is presented in this table as management believes that these Non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful to investors to compare the company's results across the periods presented and facilitates an understanding of the company's operating results. The company also uses these measures to evaluate its operating performance. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The differences between adjusted fully-converted and GAAP results are explained in footnotes 2 through 7 and footnote 15. | ||||||||||||||||||
|
(2) Represents the elimination of the noncontrolling interest associated with the ownership by the members of PBF Energy Company LLC other than PBF Energy Inc., as if such members had fully exchanged their Series A Units for shares of PBF Energy's Class A common stock. | ||||||||||||||||||
|
(3) Represents an adjustment to reflect the company's statutory corporate tax rate of approximately 39.1% and 39.6% for the 2016 and 2015 periods, respectively, applied to the net income (loss) attributable to the noncontrolling interest for all periods presented. The adjustment assumes the full exchange of existing PBF Energy Company LLC Series A Units as described in footnote 2. | ||||||||||||||||||
|
(4) The Non-GAAP measures presented include adjusted fully-converted net income excluding special items, income from continuing operations excluding special items, EBITDA excluding special items, and gross refining margin excluding special items. The special items for the periods presented relate to lower of cost or market (LCM) adjustments and changes in the tax receivable agreement liability (TRA). LCM is a GAAP guideline related to inventory valuation that requires inventory to be stated at the lower of cost or market. Our inventories are stated at the lower of cost or market. Cost is determined using last-in, first-out (LIFO) inventory valuation methodology, in which the most recently incurred costs are charged to cost of sales and inventories are valued at base layer acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and net realizable selling price of the inventory. In periods where the market price of our inventory declines substantially, cost values of inventory may exceed market values. In such instances, we record an adjustment to write down the value of inventory to market value in accordance with GAAP. In subsequent periods, the value of inventory is reassessed and an LCM adjustment is recorded to reflect the net change in the LCM inventory reserve between the prior period and the current period. Changes in the TRA reflect charges or benefits attributable to changes in our obligation under the tax receivable agreement due to factors out of our control such as changes in tax rates. Although we believe that Non-GAAP financial measures excluding the impact of special items provide useful supplemental information to investors regarding the results and performance of our business and allow for useful period-over-period comparisons, such Non-GAAP measures should only be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP. | ||||||||||||||||||
|
(5) During the year ended December 31, 2016, the company recorded an adjustment to value its inventories to the lower of cost or market which resulted in a net pre-tax benefit of $521.3 million reflecting the change in the lower of cost or market inventory reserve from $1,117.3 million at December 31, 2015 to $596.0 million at December 31, 2016. During the three months ended December 31, 2016, the company recorded an adjustment to the lower of cost or market which resulted in a net pre-tax benefit of $200.5 million reflecting the change in the lower of cost or market inventory reserve from $796.5 million at September 30, 2016 to $596.0 million at December 31, 2016.
During the year ended December 31, 2015, the company recorded an adjustment to value its inventories to the lower of cost or market which resulted in a net pre-tax charge of $427.2 million reflecting the change in the lower of cost or market inventory reserve from $690.1 million at December 31, 2014 to $1,117.3 million at December 31, 2015. During the three months ended December 31, 2015, the company recorded an adjustment to the lower of cost or market which resulted in a net pre-tax charge of $346.1 million reflecting the change in the lower of cost or market inventory reserve from $771.3 million at September 30, 2015 to $1,117.3 million at December 31, 2015.
The net impact of these LCM inventory adjustments are included in the Refining segment's operating income, but are excluded from the operating results presented in the table in order to make such information comparable between periods. Income taxes related to the net LCM adjustment were recalculated using the company's statutory corporate tax rate of approximately 39.1% and 39.6% for the 2016 and 2015 periods, respectively. | ||||||||||||||||||
|
(6) Represents an adjustment to weighted-average diluted shares outstanding to assume the full exchange of existing PBF LLC Series A Units as described in footnote 2 above. | ||||||||||||||||||
|
(7) Represents weighted-average diluted shares outstanding assuming the full exchange of common stock equivalents, including options and warrants for PBF LLC Series A Units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method (to the extent the impact of such exchange would not be anti-dilutive). Common stock equivalents excludes the effects of warrants and options to purchase 5,701,750 and 2,943,750 shares of PBF Energy Class A common stock because they are anti-dilutive for the years ended December 31, 2016 and 2015, respectively. Common stock equivalents excludes the effects of warrants and options to purchase 5,923,625 and 1,335,000 shares of PBF Energy Class A common stock because they are anti-dilutive for the three months ended December 31, 2016 and 2015, respectively. | ||||||||||||||||||
|
(8) EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Adjusted EBITDA are supplemental measures of performance that are not required by, or presented in accordance with, GAAP. We use these Non-GAAP financial measures as a supplement to our GAAP results in order to provide additional metrics on factors and trends affecting our business. EBITDA and Adjusted EBITDA are measures of operating performance that are not defined by GAAP and should not be considered substitutes for net income as determined in accordance with GAAP. In addition, because EBITDA and Adjusted EBITDA are not calculated in the same manner by all companies, they are not necessarily comparable to other similarly titled measures used by other companies. EBITDA and Adjusted EBITDA have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. | ||||||||||||||||||
|
(9) We operate in two reportable segments; Refining and Logistics. Our operations that are not included in the Refining and Logistics segments are included in Corporate. As of December 31, 2016, the Refining segment includes the operations of our oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio, New Orleans, Louisiana and Torrance, California. The Logistics segment includes the operations of PBF Logistics LP ("PBFX"), a growth-oriented master limited partnership which owns 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 that were acquired from or contributed by PBF LLC and are located at, or nearby, the Company's refineries. Additionally, PBFX acquired the East Coast Terminals in 2016 which was its first third party acquisition. Further in 2016, PBFX acquired from PBF LLC 50% of the issued and outstanding limited liability company interests of TVPC, whose assets consist of the Torrance Valley Pipeline. 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. Apart from the East Coast Terminals, PBFX currently does not generate significant third party revenue and, as such, intersegment related-party revenues are eliminated in consolidation. Prior to the PBFX Offering, PBFX was not considered to be a separate reportable segment. From a PBF Energy perspective, the Company's chief operating decision maker evaluates the Logistics segment as a whole without regard to any of PBFX's individual segments. | ||||||||||||||||||
|
(10) As reported by Platts. | ||||||||||||||||||
|
(11) Gross refining margin and gross refining margin per barrel of throughput are Non-GAAP measures because they exclude refinery operating expenses, refinery depreciation and amortization and gross margin of PBFX. Gross refining margin per barrel is gross refining margin, divided by total crude and feedstocks throughput. We believe they are important measures of operating performance and they provide useful information to investors because gross refining margin per barrel is a helpful metric comparison to the industry refining margin benchmarks shown in the Market Indicators Tables, as the industry benchmarks do not include a charge for refinery operating expenses and depreciation. Other companies in our industry may not calculate gross refining margin and gross refining margin per barrel in the same manner. Gross refining margin and gross refining margin per barrel of throughput have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. | ||||||||||||||||||
|
(12) Represents refinery operating expenses, excluding depreciation and amortization, divided by total crude oil and feedstocks throughput. | ||||||||||||||||||
|
(13) We define heavy crude oil as crude oil with an American Petroleum Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with an API gravity between 24 and 35 degrees. We define light crude oil as crude oil with an API gravity higher than 35 degrees. | ||||||||||||||||||
|
(14) Includes activity for the Torrance refinery subsequent to its acquisition on July 1, 2016 and activity for the Chalmette refinery subsequent to its acquisition on November 1, 2015. | ||||||||||||||||||
|
(15) The company recorded pre-tax adjustments related to the change in the tax receivable agreement liability of $12.9 million and $18.2 million for the years ended December 31, 2016 and 2015, respectively, and $16.1 million and $20.4 million for the three months ended December 31, 2016 and 2015, respectively. Income taxes related to the change in the tax receivable agreement liability were recalculated using the company's statutory corporate tax rate of approximately 39.1% and 39.6% for the 2016 and 2015 periods presented, respectively. | ||||||||||||||||||
|
(16) The Refining segment includes capital expenditures of $2.7 million for the working capital settlement related to the acquisition of the Chalmette refinery that was finalized in the first quarter of 2016 and $971.9 million for the acquisition of the Torrance refinery in the third quarter of 2016. The Logistics segment includes capital expenditures of $98.4 million for the PBFX Plains Asset Purchase in the second quarter of 2016. | ||||||||||||||||||
|
(17) The total debt to capitalization ratio is calculated by dividing total debt by the sum of total debt and total equity. This ratio is a measurement which is presented in our annual and interim filings and management believes this ratio is useful to investors in analyzing our leverage. Net debt and the net debt to capitalization ratio are Non-GAAP measures. Net debt is calculated by subtracting cash and cash equivalents and marketable securities from total debt. We believe these measurements are also useful to investors since we have the ability to and may decide to use a portion of our cash and cash equivalents to retire or pay down our debt. Marketable securities included in net debt fully collateralize PBFX's Term Loan. Additionally, as described in footnote 4 above, we have also presented the total debt to capitalization and net debt to capitalization ratios excluding the cumulative effects of special items on equity. | ||||||||||||||||||
|
December 31, |
December 31, | |||||||||||||||||
|
2016 |
2015 | |||||||||||||||||
|
Total debt |
$ |
2,148,234 |
$ |
1,840,355 |
||||||||||||||
|
Total equity |
2,570,684 |
2,095,857 |
||||||||||||||||
|
Total Capitalization |
$ |
4,718,918 |
$ |
3,936,212 |
||||||||||||||
|
Total debt |
2,148,234 |
1,840,355 |
||||||||||||||||
|
Total equity excluding special items |
2,912,375 |
2,763,118 |
||||||||||||||||
|
Total capitalization excluding special items |
5,060,609 |
4,603,473 |
||||||||||||||||
|
Total equity |
2,570,684 |
2,095,857 |
||||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
595,988 |
1,117,336 |
||||||||||||||||
|
Add: Change in tax receivable agreement liability (Note 4) |
(25,508) |
(12,600) |
||||||||||||||||
|
Less: Recomputed income taxes on special items (Note 5, Note 15) |
(228,789) |
(437,475) |
||||||||||||||||
|
Net impact of special items to equity |
$ |
341,691 |
$ |
667,261 |
||||||||||||||
|
Total equity excluding special items (Note 4) |
$ |
2,912,375 |
$ |
2,763,118 |
||||||||||||||
|
Total debt |
2,148,234 |
1,840,355 |
||||||||||||||||
|
Less: Cash, cash equivalents and marketable securities |
786,298 |
1,178,578 |
||||||||||||||||
|
Net debt |
1,361,936 |
661,777 |
||||||||||||||||
|
Total debt to capitalization ratio |
46 |
% |
47 |
% | ||||||||||||||
|
Total debt to capitalization ratio, excluding special items |
42 |
% |
40 |
% | ||||||||||||||
|
Net debt to capitalization ratio |
35 |
% |
24 |
% | ||||||||||||||
|
Net debt to capitalization ratio, excluding special items |
32 |
% |
19 |
% | ||||||||||||||
|
(18) The Logistics segment includes 100% of the income from operations of the Torrance Valley Pipeline Company LLC ("TVPC"), as TVPC is consolidated by PBFX. PBFX records net income attributable to noncontrolling interest for the 50% equity interest in TVPC held by PBF Holding. PBF Holding (included in the Refining segment) records equity income in investee related to its 50% noncontrolling ownership interest in TVPC. For the purposes of the consolidated PBF Energy financial statements, PBF Holding's equity income in investee and PBFX's net income attributable to noncontrolling interest eliminate in consolidation. As TVPC was acquired by PBF Holding in connection with the Torrance Acquisition on July 1, 2016, there was no impact on comparative 2015 disclosures. | ||||||||||||||||||
|
(19) The Logistics segment includes 100% of the assets of TVPC as TVPC is consolidated by PBFX. PBFX records a noncontrolling interest for the 50% equity interest in TVPC held by PBF Holding. PBF Holding (included in the Refining segment) records an equity investment in TVPC reflecting its noncontrolling ownership interest. For the purposes of the consolidated PBF Energy financial statements, PBFX's noncontrolling interest in TVPC and PBF Holding's equity investment in TVPC eliminate in consolidation. As the acquisition of PBFX's 50% interest in TVPC was completed in the third quarter of 2016, there was no impact on comparative 2015 disclosures. | ||||||||||||||||||
SOURCE PBF Energy Inc.
Article Date
2/16/2017PBF Logistics Increases Quarterly Cash Distribution to $0.45 per Unit and Announces Fourth Quarter Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Feb. 16, 2017 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") announced today fourth quarter 2016 net income attributable to the partnership of $24.7 million, or $0.57 per limited partner unit. During the fourth quarter, the Partnership generated earnings before interest, income taxes, depreciation, and amortization (EBITDA) of $36.4 million and distributable cash flow of $27.9 million. For the year-ended December 31, 2016, the Partnership reported net income of $81.0 million, or $2.01 per limited partner unit, and $121.9 million of EBITDA.
As of December 31, 2016, the Partnership had liquidity of $231.4 million, including $64.2 million in cash and cash equivalents and $167.2 million of capacity under its existing revolving credit facility.
"The fourth quarter was another solid operational and financial quarter for PBFX that set the tone for a strong 2017. To that end, we are pleased to announce two organic growth projects which are expected to be complete by the fourth quarter of 2017. In light of our delivered growth and positive outlook, we are pleased that the board approved our ninth consecutive distribution increase to $0.45 per common unit, a 50% increase since our initial public offering," said PBF Logistics GP LLC Chief Executive Officer, Tom Nimbley.
The two organic growth projects include the construction of a 625,000 barrel tank at PBF Energy's Chalmette refinery and the development of a natural gas pipeline to supply PBF Energy's Paulsboro, New Jersey, refinery. PBF Logistics expects to invest approximately $82.1 million dollars to complete both projects, which represents a combined pro forma transaction multiple of 6.7x EBITDA. Importantly, both projects will be funded using existing liquidity and will be supported by long-term contracts with minimum volume commitments from PBF Energy.
PBF Logistics Announces Quarterly Distribution
The Board of Directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.45 per unit. The distribution is payable on March 13, 2017, to unitholders of record at the close of business on February 27, 2017.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
PBF Logistics LP Reconciliation of Amounts under U.S. GAAP to Forecasted EBITDA (unaudited, in millions)
Reconciliation of two organic growth projects forecasted annual net income to forecasted EBITDA:
|
Forecasted net income |
$ |
7.2 |
||||||
|
Add: Depreciation and amortization expense |
4.1 |
|||||||
|
Add: Interest expense, net and other financing costs |
0.9 |
|||||||
|
Forecasted EBITDA |
$ |
12.2 |
||||||
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA should not be considered an alternative to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. Due to the forward-looking nature of forecasted EBITDA, information to reconcile forecasted EBITDA to forecasted cash flow from operating activities is not available as management is unable to project working capital changes for future periods at this time.
Furthermore, this earnings release, and the discussion during the management conference call, may include references to non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures including, but not limited to, EBITDA, EBITDA attributable to PBFX and Distributable Cash Flow. PBFX's management believes that non-GAAP financial measures provide useful information about the Partnership's operating performance, financial results and the amount of cash generated by the Partnership's operations and the amount available for distribution to its unitholders. 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. PBFX'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 financial measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
The Partnership's senior management will host a conference call and webcast regarding earnings results and other business matters on Thursday, February 16, 2017, at 11:00 a.m. ET. The call can also be heard by dialing (888) 632-3382 or (785) 424-1677, conference ID: PBFXQ416. The audio replay will be available two hours after the end of the call through March 6, 2017, by dialing (800) 283-4799 or (402) 220-0860. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets and other risks inherent in PBFX's business including but not limited to ability to consummate pending acquisitions, the timing for the closing of any such acquisition and our plans for financing any acquisition; unforeseen liabilities associated with any pending acquisition; inability to successfully integrate acquired assets or other acquired businesses or operations; effects of existing and future laws and governmental regulations, including environmental, health and safety regulations; and various other factors. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. PBFX assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present our results of operations, related operational information, and reconciliations of net income and net cash provided by operating activity to EBITDA and distributable cash flows (both as defined below) of PBFX for the three months and years ended December 31, 2016 and 2015. The financial information presented contains the financial results of PBFX, Delaware City Products Pipeline and Truck Rack (as defined below) prior to our acquisition on May 14, 2015 and Torrance Valley Pipeline (as defined below) prior to our acquisition on August 31, 2016.
On May 14, 2015, we acquired from PBF Energy Company LLC ("PBF LLC") a 23.4 mile, 16-inch interstate petroleum products pipeline with capacity in excess of 125,000 barrels per day ("bpd") (the "Delaware City Products Pipeline") and a 15-lane, 76,000 bpd capacity truck loading rack (the "Delaware City Truck Rack") located at PBF Holding's Delaware City, Delaware refinery. The Delaware City Products Pipeline and the Delaware City Truck Rack are collectively referred to as the "Delaware City Products Pipeline and Truck Rack." The Delaware City Products Pipeline is the only asset that recorded revenue for transactions with PBF Energy prior to our acquisition.
On August 31, 2016, our wholly-owned subsidiary, PBFX Operating Company LP ("PBFX Op Co"), acquired from PBF LLC a 50% equity interest in Torrance Valley Pipeline Company LLC ("TVPC"), with the other 50% equity interest continuing to be held by a subsidiary of PBF LLC, TVP Holding Company LLC ("TVP Holding") (the "TVPC Acquisition"). TVPC owns the 189-mile San Joaquin Valley Pipeline system with capacity of approximately 110,000 bpd (the "Torrance Valley Pipeline"), which supports PBF Holding's Torrance refinery. The Torrance Valley Pipeline consists of the M55, M1 and M70 pipeline systems, including 11 pipeline stations with storage capacity and truck unloading capability at two of the stations. We consolidate the financial results of TVPC, and record a noncontrolling interest for the 50% economic interest in TVPC held by TVP Holding.
The Delaware City Products Pipeline and Truck Rack and Torrance Valley Pipeline acquisitions were transfers between entities under common control. These transactions, along with other transactions with PBF LLC completed prior to 2015, are collectively referred to as "Acquisitions from PBF." The Torrance Valley Pipeline was acquired by PBF Energy on July 1, 2016 in connection with the acquisition of the Torrance refinery and related logistical assets and was not operated by PBF Energy prior to its acquisition. Accordingly, the financial information contained herein has been adjusted in the current year to include the historical results of the Torrance Valley Pipeline prior to the acquisition by PBFX from July 1, 2016 through August 31, 2016. We present the historical results of the Torrance Valley Pipeline prior to our acquisition in the following tables as "Torrance Valley Pipeline Company LLC."
On April 29, 2016, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), purchased four refined product terminals (the "East Coast Terminals"), including a storage facility to service the East Coast Terminals, from an affiliate of Plains All American Pipeline, L.P. (the "Plains Asset Purchase") which has subsequently generated third party revenues. Prior to the Plains Asset Purchase, we did not record third-party revenue, except for third party revenue generated by the Delaware City Products Pipeline prior to August 2013. Additionally, our results may not be comparable to prior periods due to incremental revenue, operating and maintenance expense and general and administrative expense associated with the East Coast Terminals.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before interest expense, income tax expense, depreciation and amortization expense. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense, income tax expense, depreciation and amortization expense attributable to PBFX, which excludes the results of Acquisitions from PBF prior to the effective dates of such transactions. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less net cash paid for interest, maintenance capital expenditures and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is distributable cash flow divided by total distribution declared. EBITDA, EBITDA attributable to PBFX and distributable cash flow are not financial measures prescribed by U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX and distributable cash flow are not financial measures prescribed by U.S. GAAP ("non-GAAP"), they are supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA and EBITDA attributable to PBFX provides useful information to investors in assessing our financial condition and results of operations. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, as it provides investors with an enhanced perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
|
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||
|
Revenue: (a) |
||||||||||||||||
|
Affiliate |
$ |
57,092 |
$ |
37,306 |
$ |
175,448 |
$ |
142,102 |
||||||||
|
Third-Party |
4,602 |
— |
11,887 |
— |
||||||||||||
|
Total revenue |
61,694 |
37,306 |
187,335 |
142,102 |
||||||||||||
|
Costs and expenses: |
||||||||||||||||
|
Operating and maintenance expenses (a) |
17,607 |
7,090 |
44,162 |
25,255 |
||||||||||||
|
General and administrative expenses (b) |
3,069 |
4,091 |
16,962 |
13,889 |
||||||||||||
|
Depreciation and amortization expense |
5,234 |
1,663 |
14,156 |
6,582 |
||||||||||||
|
Total costs and expenses |
25,910 |
12,844 |
75,280 |
45,726 |
||||||||||||
|
Income from operations |
35,784 |
24,462 |
112,055 |
96,376 |
||||||||||||
|
Other expense: |
||||||||||||||||
|
Interest expense, net |
(7,457) |
(6,765) |
(28,755) |
(19,939) |
||||||||||||
|
Amortization of loan fees |
(417) |
(424) |
(1,678) |
(1,315) |
||||||||||||
|
Net income |
27,910 |
17,273 |
81,622 |
75,122 |
||||||||||||
|
Less: Net (loss) income attributable to Predecessor |
(886) |
— |
(5,017) |
1,274 |
||||||||||||
|
Less: Net income attributable to noncontrolling interest |
4,058 |
— |
5,679 |
— |
||||||||||||
|
Net income attributable to the Partnership |
$ |
24,738 |
$ |
17,273 |
$ |
80,960 |
$ |
73,848 |
||||||||
|
Net income per limited partner unit: |
||||||||||||||||
|
Common units - basic |
$ |
0.57 |
$ |
0.50 |
$ |
2.01 |
$ |
2.18 |
||||||||
|
Common units - diluted |
0.57 |
0.50 |
2.01 |
2.18 |
||||||||||||
|
Subordinated units - basic and diluted |
0.57 |
0.50 |
2.01 |
2.18 |
||||||||||||
|
Weighted-average limited partner units outstanding: |
||||||||||||||||
|
Common units - basic |
25,843,839 |
18,466,598 |
22,288,118 |
17,956,152 |
||||||||||||
|
Common units - diluted |
25,993,145 |
18,466,855 |
22,338,784 |
17,956,152 |
||||||||||||
|
Subordinated units - basic and diluted |
15,886,553 |
15,886,553 |
15,886,553 |
15,886,553 |
||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
|
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||
|
Year Ended December 31, 2016 | ||||||||||||
|
PBF Logistics LP |
Torrance Valley Pipeline Company LLC* |
Consolidated Results | ||||||||||
|
Revenue: |
||||||||||||
|
Affiliate |
$ |
175,448 |
$ |
— |
$ |
175,448 |
||||||
|
Third-party |
11,887 |
— |
11,887 |
|||||||||
|
Total revenue |
187,335 |
— |
187,335 |
|||||||||
|
Costs and expenses: |
||||||||||||
|
Operating and maintenance expenses |
41,317 |
2,845 |
44,162 |
|||||||||
|
General and administrative expenses |
16,609 |
353 |
16,962 |
|||||||||
|
Depreciation and amortization |
12,337 |
1,819 |
14,156 |
|||||||||
|
Total costs and expenses |
70,263 |
5,017 |
75,280 |
|||||||||
|
Income (loss) from operations |
117,072 |
(5,017) |
112,055 |
|||||||||
|
Other expense: |
||||||||||||
|
Interest expense, net |
(28,755) |
— |
(28,755) |
|||||||||
|
Amortization of loan fees |
(1,678) |
— |
(1,678) |
|||||||||
|
Net income (loss) |
86,639 |
(5,017) |
81,622 |
|||||||||
|
Less: Net loss attributable to Predecessor |
— |
(5,017) |
(5,017) |
|||||||||
|
Less: Net income attributable to noncontrolling interest |
5,679 |
— |
5,679 |
|||||||||
|
Net income attributable to the Partnership |
$ |
80,960 |
$ |
— |
$ |
80,960 |
||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
* |
Reflects the results of Torrance Valley Pipeline Company LLC prior to our acquisition for the period from July 1, 2016 (i.e., the date on which PBF Energy acquired the Torrance Valley Pipeline) through August 31, 2016. |
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
|
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||
|
Year Ended December 31, 2015 | ||||||||||||
|
PBF Logistics LP |
Delaware City |
Consolidated Results | ||||||||||
|
Revenue: |
||||||||||||
|
Affiliate |
$ |
138,719 |
$ |
3,383 |
$ |
142,102 |
||||||
|
Third-party |
— |
— |
— |
|||||||||
|
Total revenue |
138,719 |
3,383 |
142,102 |
|||||||||
|
Costs and expenses: |
||||||||||||
|
Operating and maintenance expenses |
23,890 |
1,365 |
25,255 |
|||||||||
|
General and administrative expenses |
13,408 |
481 |
13,889 |
|||||||||
|
Depreciation and amortization |
6,306 |
276 |
6,582 |
|||||||||
|
Total costs and expenses |
43,604 |
2,122 |
45,726 |
|||||||||
|
Income (loss) from operations |
95,115 |
1,261 |
96,376 |
|||||||||
|
Other income (expense): |
||||||||||||
|
Interest expense, net |
(19,952) |
13 |
(19,939) |
|||||||||
|
Amortization of loan fees |
(1,315) |
— |
(1,315) |
|||||||||
|
Net income (loss) |
73,848 |
1,274 |
75,122 |
|||||||||
|
Less: Net income attributable to Predecessor |
— |
1,274 |
1,274 |
|||||||||
|
Net income attributable to the Partnership |
$ |
73,848 |
$ |
— |
$ |
73,848 |
||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
* |
Reflects the results of Delaware City Products Pipeline and Truck Rack prior to our acquisition on May 14, 2015. |
|
PBF LOGISTICS LP | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
|
Transportation and Terminaling Segment |
||||||||||||||||||||
|
Terminals |
||||||||||||||||||||
|
Total throughput (bpd) (i)(d) |
167,028 |
95,561 |
164,210 |
106,091 |
||||||||||||||||
|
Lease tank capacity (average lease capacity barrels per month) |
1,979,133 |
N/A |
2,023,304 |
N/A |
||||||||||||||||
|
Pipelines |
||||||||||||||||||||
|
Total throughput (bpd) (i)(d) |
153,033 |
48,079 |
149,831 |
46,065 |
||||||||||||||||
|
Lease tank capacity (average lease capacity barrels per month) |
1,427,922 |
N/A |
1,439,846 |
N/A |
||||||||||||||||
|
Storage Segment |
||||||||||||||||||||
|
Storage capacity reserved (average shell capacity barrels per month) |
3,656,833 |
3,522,193 |
3,635,236 |
3,558,745 |
||||||||||||||||
|
Cash Flow Information: |
||||||||||||||||||||
|
Net cash provided by (used in): |
||||||||||||||||||||
|
Operating activities |
$ |
30,999 |
$ |
15,157 |
$ |
99,618 |
$ |
78,546 |
||||||||||||
|
Investing activities |
8,314 |
(864) |
79,564 |
(1,349) |
||||||||||||||||
|
Financing activities |
(19,363) |
(13,851) |
(133,639) |
(72,684) |
||||||||||||||||
|
Net change in cash |
$ |
19,950 |
$ |
442 |
$ |
45,543 |
$ |
4,513 |
||||||||||||
|
Other Financial Information: |
||||||||||||||||||||
|
EBITDA attributable to PBFX (c) |
$ |
36,436 |
$ |
26,125 |
$ |
121,911 |
$ |
101,421 |
||||||||||||
|
Distributable cash flow (c) |
$ |
27,949 |
$ |
20,347 |
$ |
94,507 |
$ |
83,922 |
||||||||||||
|
Quarterly distribution declared per unit (e) |
$ |
0.45 |
$ |
0.41 |
$ |
1.74 |
$ |
1.52 |
||||||||||||
|
Distribution: (e) |
||||||||||||||||||||
|
Common units - public |
$ |
10,726 |
$ |
6,694 |
$ |
37,755 |
$ |
24,843 |
||||||||||||
|
Common units - PBF LLC |
1,158 |
1,055 |
4,477 |
3,911 |
||||||||||||||||
|
Subordinated units - PBF LLC |
7,149 |
6,514 |
27,642 |
24,148 |
||||||||||||||||
|
IDR holder - PBF LLC |
1,266 |
583 |
4,031 |
1,118 |
||||||||||||||||
|
Total distribution |
$ |
20,299 |
$ |
14,846 |
$ |
73,905 |
$ |
54,020 |
||||||||||||
|
Coverage ratio (c) |
1.38x |
1.37x |
1.28x |
1.55x |
||||||||||||||||
|
Capital expenditures (f) |
$ |
11,653 |
$ |
864 |
$ |
114,680 |
$ |
2,046 |
||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||
|
(Unaudited, amounts in thousands) | ||||||||||||
|
December 31, |
December 31, | |||||||||||
|
Balance Sheet Information: |
2016 |
2015 | ||||||||||
|
Cash, cash equivalents and marketable securities (g) |
$ |
104,245 |
$ |
252,936 |
||||||||
|
Property, plant and equipment, net |
600,071 |
145,548 |
||||||||||
|
Total assets |
748,130 |
422,902 |
||||||||||
|
Total debt (g) |
571,675 |
599,635 |
||||||||||
|
Total liabilities |
601,790 |
608,577 |
||||||||||
|
Partners' equity |
(33,542) |
(185,675) |
||||||||||
|
Noncontrolling interest (h) |
179,882 |
— |
||||||||||
|
Total liabilities and equity |
748,130 |
422,902 |
||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
PBF LOGISTICS LP | |||||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||
|
TO EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||||||
|
Three months ended |
Year ended | ||||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||
|
Reconciliation of net income to EBITDA |
|||||||||||||||||||||
|
Net income |
$ |
27,910 |
$ |
17,273 |
$ |
81,622 |
$ |
75,122 |
|||||||||||||
|
Interest expense, net |
7,457 |
6,765 |
28,755 |
19,939 |
|||||||||||||||||
|
Amortization of loan fees |
417 |
424 |
1,678 |
1,315 |
|||||||||||||||||
|
Depreciation and amortization |
5,234 |
1,663 |
14,156 |
6,582 |
|||||||||||||||||
|
EBITDA |
41,018 |
26,125 |
126,211 |
102,958 |
|||||||||||||||||
|
Less: Predecessor EBITDA |
(849) |
— |
(3,198) |
1,537 |
|||||||||||||||||
|
Less: Noncontrolling interest EBITDA (h) |
5,431 |
— |
7,498 |
— |
|||||||||||||||||
|
EBITDA attributable to PBFX |
36,436 |
26,125 |
121,911 |
101,421 |
|||||||||||||||||
|
Non-cash unit-based compensation expense |
687 |
1,851 |
4,360 |
4,279 |
|||||||||||||||||
|
Cash interest |
(7,546) |
(6,765) |
(28,844) |
(19,952) |
|||||||||||||||||
|
Maintenance capital expenditures |
(1,628) |
(864) |
(2,920) |
(1,826) |
|||||||||||||||||
|
Distributable cash flow |
$ |
27,949 |
$ |
20,347 |
$ |
94,507 |
$ |
83,922 |
|||||||||||||
|
Reconciliation of net cash provided by operating activities to EBITDA and distributable cash flow (c): |
|||||||||||||||||||||
|
Net cash provided by operating activities |
$ |
30,999 |
$ |
15,157 |
$ |
99,618 |
$ |
78,546 |
|||||||||||||
|
Change in current assets and liabilities |
3,249 |
6,054 |
2,198 |
8,752 |
|||||||||||||||||
|
Interest expense, net |
7,457 |
6,765 |
28,755 |
19,939 |
|||||||||||||||||
|
Non-cash unit-based compensation expense |
(687) |
(1,851) |
(4,360) |
(4,279) |
|||||||||||||||||
|
EBITDA |
41,018 |
26,125 |
126,211 |
102,958 |
|||||||||||||||||
|
Less: Predecessor EBITDA |
(849) |
— |
(3,198) |
1,537 |
|||||||||||||||||
|
Less: Noncontrolling interest EBITDA (h) |
5,431 |
— |
7,498 |
— |
|||||||||||||||||
|
EBITDA attributable to PBFX |
36,436 |
26,125 |
121,911 |
101,421 |
|||||||||||||||||
|
Non-cash unit-based compensation expense |
687 |
1,851 |
4,360 |
4,279 |
|||||||||||||||||
|
Cash interest |
(7,546) |
(6,765) |
(28,844) |
(19,952) |
|||||||||||||||||
|
Maintenance capital expenditures |
(1,628) |
(864) |
(2,920) |
(1,826) |
|||||||||||||||||
|
Distributable cash flow |
$ |
27,949 |
$ |
20,347 |
$ |
94,507 |
$ |
83,922 |
|||||||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||
|
Three months ended December 31, 2016 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Revenues (a) |
$ |
56,209 |
$ |
5,485 |
$ |
— |
$ |
61,694 |
||||||||
|
Depreciation and amortization expense |
4,636 |
598 |
— |
5,234 |
||||||||||||
|
Income (loss) from operations |
35,908 |
2,945 |
(3,069) |
35,784 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
7,874 |
7,874 |
||||||||||||
|
Capital expenditures |
10,186 |
1,467 |
— |
11,653 |
||||||||||||
|
Three months ended December 31, 2015 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Revenues (a) |
$ |
32,023 |
$ |
5,283 |
$ |
— |
$ |
37,306 |
||||||||
|
Depreciation and amortization expense |
979 |
684 |
— |
1,663 |
||||||||||||
|
Income (loss) from operations |
26,592 |
1,961 |
(4,091) |
24,462 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
7,189 |
7,189 |
||||||||||||
|
Capital expenditures |
21 |
843 |
— |
864 |
||||||||||||
|
Year ended December 31, 2016 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Revenues (a) |
$ |
165,524 |
$ |
21,811 |
$ |
— |
$ |
187,335 |
||||||||
|
Depreciation and amortization expense |
11,728 |
2,428 |
— |
14,156 |
||||||||||||
|
Income (loss) from operations |
118,322 |
10,695 |
(16,962) |
112,055 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
30,433 |
30,433 |
||||||||||||
|
Capital expenditures (f) |
111,921 |
2,759 |
— |
114,680 |
||||||||||||
|
Year ended December 31, 2015 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Revenues (a) |
$ |
120,750 |
$ |
21,352 |
$ |
— |
$ |
142,102 |
||||||||
|
Depreciation and amortization expense |
3,943 |
2,639 |
— |
6,582 |
||||||||||||
|
Income (loss) from operations |
99,730 |
10,535 |
(13,889) |
96,376 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
21,254 |
21,254 |
||||||||||||
|
Capital expenditures |
246 |
1,800 |
— |
2,046 |
||||||||||||
|
Balance at December 31, 2016 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Total assets |
$ |
598,167 |
$ |
57,375 |
$ |
92,588 |
$ |
748,130 |
||||||||
|
Balance at December 31, 2015 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Total assets |
$ |
112,826 |
$ |
56,846 |
$ |
253,230 |
$ |
422,902 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF LOGISTICS LP | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
|
(Unaudited) | |||||||||||
|
(a) |
See discussion of the factors affecting comparability noted on page 4. Our results of operations may not be comparable to the historical results of operations for the reasons described below: . | ||||||||||
|
(b) |
General and administrative expenses include transaction costs related to the Acquisitions from PBF of $0.1 million and $0.3 million in the three months ended December 31, 2016 and 2015, respectively, and $4.0 million and $0.8 million in the years ended December 31, 2016 and 2015, respectively. | ||||||||||
|
(c) |
See "Non-GAAP Financial Measures" on page 5 for a definition of EBITDA, EBITDA attributable to PBFX, distributable cash flow and coverage ratio. | ||||||||||
|
(d) |
Operating information pertains to assets which are included in the Transportation and Terminaling segment. Throughput information reflects activity subsequent to execution of the commercial agreements in connection with the acquisition of the Torrance Valley Pipeline and the Delaware City Products Pipeline and Truck Rack from PBF and activity subsequent to the Plains Asset Purchase. | ||||||||||
|
(e) |
On February 16, 2017, we declared a quarterly cash distribution of $0.45 per limited partner unit for the fourth quarter of 2016. | ||||||||||
|
(f) |
Capital expenditures include the Plains Asset Purchase of $98.4 million for the year ended December 31, 2016. | ||||||||||
|
(g) |
Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents and marketable securities from total debt. We believe this measurement is also useful to investors since our marketable securities fully collateralize our Term Loan and 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. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of December 31, 2016 and December 31, 2015 was $467.4 million and $346.7 million, respectively. | ||||||||||
|
(h) |
Our subsidiary, PBFX Op Co, holds a 50% controlling interest in TVPC, with the other 50% interest in TVPC owned by TVP Holding, an indirect subsidiary of PBF Holding. PBFX Op Co is also the sole managing member of TVPC. We, through our ownership of PBFX Op Co, consolidate the financial results of TVPC, and record a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the consolidated statements of operations includes the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated balance sheets includes the portion of net assets of TVPC attributable to TVP Holding. | ||||||||||
|
(i) |
Calculated as the sum of the average throughput per day for each Terminal and Pipeline asset for the periods presented. | ||||||||||
SOURCE PBF Logistics LP
Article Date
2/16/2017PBF Logistics to Release Fourth Quarter 2016 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Jan. 12, 2017 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that it will release its earnings results for the fourth quarter 2016 on Thursday, February 16, 2017. The company will host a conference call and webcast regarding fourth quarter results and other business matters on Thursday, February 16, 2017, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be heard by dialing (888) 632-3382 or (785) 424-1677, conference ID: PBFXQ416. The audio replay will be available two hours after the end of the call through March 6, 2017, by dialing (800) 283-4799 or (402) 220-0860.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
SOURCE PBF Logistics LP
Article Date
1/12/2017PBF Energy to Release Fourth Quarter 2016 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Jan. 12, 2017 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that it will release its earnings results for the fourth quarter 2016 on Thursday, February 16, 2017. The company will host a conference call and webcast regarding fourth quarter results and other business matters on Thursday, February 16, 2017, at 8:30 a.m. ET.
The call is being webcast and can be accessed at PBF Energy's website, http://www.pbfenergy.com. The call can also be heard by dialing (888) 632-3382 or (785) 424-1677, conference ID: PBFQ416. The audio replay will be available two hours after the end of the call through March 6, 2017, by dialing (800) 283-5758 or (402) 220-0863.
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 45% of the limited partnership interest of PBF Logistics LP (NYSE:PBFX).
SOURCE PBF Energy Inc.
Article Date
1/12/2017PBF Logistics to Attend UBS MLP One-on-One Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Jan. 6, 2017 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that the partnership's management will be participating in meetings with institutional investors at the UBS MLP One-on-One to be held in Park City, Utah, from January 9 through January 11, 2017.
The company's meeting materials will be available on the Investor Relations section of the PBF Logistics LP website at www.pbflogistics.com.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
SOURCE PBF Logistics LP
Article Date
1/6/2017PBF Holding Company LLC Announces Extension of Exchange Offer for 7.00% Senior Secured Notes Due 2023
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J, Jan. 6, 2017 /PRNewswire/ -- PBF Holding Company LLC announced today that it has extended the deadline with respect to its offer to exchange $500,000,000 of its 7.00% Senior Secured Notes due 2023 (new notes), which have been registered under the Securities Act of 1933 (Securities Act), for $500,000,000 of its issued and outstanding 7.00% Senior Secured Notes due 2023, which are not registered under the Securities Act (old notes). As a result of the extension, the exchange offer is now scheduled to expire at 12:00 a.m. midnight, New York City time, on January 12, 2017, unless further extended.
The exchange offer was scheduled to expire today at 12:00 a.m. midnight, New York City time. As of 11:45 a.m., New York City time, on January 6, 2017, approximately $303,400,000 in aggregate principal amount, or 60.7%, of the old notes had been validly tendered and not withdrawn. Except for the extension of the expiration date, all of the other terms of the exchange offer remain as set forth in the exchange offer prospectus, dated December 1, 2016, filed with the U.S. Securities and Exchange Commission, and the related letter of transmittal.
This press release is not an offer to exchange the new notes for the old notes or the solicitation of an offer to exchange, which we are making only through the exchange offer prospectus.
For copies of the exchange offer documents or additional information, please contact the Exchange Agent, Deutsche Bank Trust Company Americas, at:
c/o DB Services Americas, Inc.
Attn: Reorg Dept
5022 Gate Parkway, Suite 200
Jacksonville, Florida 32256
Tel: (877) 843-9767
About PBF Holding Company LLC
PBF Holding Company LLC is an indirect subsidiary of PBF Energy Inc. (NYSE: PBF), 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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Holding Company LLC
Article Date
1/6/201712/23/2016 - PBF Energy to Attend Industry Conferences
PBF Energy to Attend Industry Conferences
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Dec. 23, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) announced today that the company's management will be participating in meetings with investors at the Wolfe Research Refining Conference on January 4, 2016 taking place in Boston, Massachusetts and the Goldman Sachs Global Energy Conference on January 5, 2016 taking place in Orlando, Florida.
The company's presentation will be available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
12/23/2016PBF Energy Prices Public Offering of 10,000,000 Shares of Class A Common Stock
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Dec. 13, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) ("PBF Energy") announced today that it has priced its previously announced underwritten public offering (the "Offering") of 10,000,000 shares of its Class A common stock for total gross proceeds of approximately $277.5 million. The underwriter has offered the shares at prevailing market prices or otherwise from time to time through the New York Stock Exchange, in the over-the-counter market or through negotiated transactions. The underwriter has a 30-day option to purchase up to 1,500,000 additional shares. The Offering is expected to close on December 19, 2016, subject to customary closing conditions.
The Company intends to use the net proceeds from this offering for general corporate purposes, including for repayment of indebtedness, working capital, capital expenditures and potential acquisitions.
Wells Fargo Securities is the underwriter of the Offering. The offering of these securities is being made by means of a prospectus supplement and the accompanying prospectus only, copies of which may be obtained from Wells Fargo Securities, Attn: Equity Syndicate Department, 375 Park Avenue, New York, NY 10152 (tel: 800-326-5897) or via email at cmclientsupport@wellsfargo.com.
These documents may also be obtained free of charge when they are available from the Securities and Exchange Commission's website ("SEC") at www.sec.gov.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities described herein, nor shall there be any sale of these securities, in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offering will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended. The offering is made pursuant to an effective shelf registration statement and prospectus filed by PBF Energy with the SEC.
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 expectations with respect to the offering and the anticipated use of proceeds therefrom. 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 described above, the risks relating to the offering not closing and the securities market generally, and 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 44.2% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
12/14/2016PBF Energy Announces Public Offering of its Class A Common Stock
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Dec. 13, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) ("PBF Energy") announced today that it has commenced an underwritten public offering (the "Offering") of 10,000,000 shares of its Class A common stock. The underwriter has an option to purchase up to 1,500,000 additional shares.
The Company intends to use the net proceeds from this offering for general corporate purposes, including for repayment of indebtedness, working capital, capital expenditures and potential acquisitions.
Wells Fargo Securities is the underwriter of the Offering. The offering of these securities is being made by means of a prospectus supplement and the accompanying prospectus only, copies of which may be obtained from Wells Fargo Securities, Attn: Equity Syndicate Department, 375 Park Avenue, New York, NY 10152 (tel: 800-326-5897) or via email at cmclientsupport@wellsfargo.com.
These documents may also be obtained free of charge when they are available from the Securities and Exchange Commission's website ("SEC") at www.sec.gov.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities described herein, nor shall there be any sale of these securities, in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offering will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended. The offering is made pursuant to an effective shelf registration statement and prospectus filed by PBF Energy with the SEC.
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 expectations with respect to the offering and the anticipated use of proceeds therefrom. 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 described above, the risks relating to the offering not closing and the securities market generally, and 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 44.2% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
12/13/2016PBF Logistics to attend Wells Fargo Pipeline, MLP and Utility Symposium
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Dec. 5, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that the partnership's management will be meeting with investors and industry analysts on December 7, 2016, at the Wells Fargo Pipeline, MLP and Utility Symposium in New York City.
The partnership's management intends to reference previously published materials which are available on the Investor Relations section of the PBF Logistics LP website at www.pbflogistics.com.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Logo - http://photos.prnewswire.com/prnh/20160527/373093LOGO
SOURCE PBF Logistics LP
Article Date
12/5/2016PBF Energy Reports Third Quarter 2016 Results, Declares Dividend of $0.30 Per Share
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Oct. 28, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today reported a third quarter 2016 income from operations of $129.7 million as compared to income from operations of $92.3 million for third quarter of 2015. Excluding special items, third quarter 2016 income from operations was $25.7 million as compared to income from operations of $300.6 million for the third quarter of 2015. Special items in the third quarter 2016 results include a net, non-cash, after-tax gain of $62.8 million, or $0.61 per share, lower-of-cost-or-market ("LCM") inventory adjustment which increased operating income, and an after-tax charge of $1.9 million, or 0.02 per share, related to a change in the tax receivable liability agreement. Additionally, included in our results were net after-tax charges totaling approximately $4.2 million, or $0.04 per share, related to acquisition and other expenses.
The company reported third quarter 2016 net income of $56.4 million, and net income attributable to PBF Energy Inc. of $42.1 million or $0.43 per share. This compares to net income of $55.5 million, and net income attributable to PBF Energy Inc. of $42.8 million or $0.49 per share for the third quarter 2015. Adjusted fully-converted net loss for the third quarter 2016, excluding special items, was $16.5 million, or $0.16 per share on a fully-exchanged, fully -diluted basis, as described below, compared to adjusted fully-converted net income of $170.7 million, or $1.87 per share, for the third quarter 2015. PBF Energy's financial results reflect the consolidation of PBF Logistics LP (NYSE: PBFX), a master limited partnership of which PBF indirectly owns the general partner and approximately 44.2% of the limited partner interests as of quarter-end.
Tom Nimbley, PBF Energy's Chairman and CEO, said, "It was a challenging refining environment in the third quarter, with the exception of the Gulf Coast, average benchmark margins were down in every region and we experienced the added headwind of a 15 percent increase in the cost of compliance with the renewable fuels mandate." Mr. Nimbley continued, "We continue to focus on our strategy to improve profitability and reliability and are committed to reducing operating expenses across our system. We believe that we are near a cyclical low in the refining environment and the ongoing and planned enhancements will strengthen the company's operating results and increase margin capture when the market improves."
Torrance Refinery acquisition and sale of Torrance Valley Pipeline Company LLC interest
On July 1, 2016, PBF announced that its subsidiary had closed its previously announced acquisition of the 155,000 barrel per day Torrance refinery, and related logistics assets, from ExxonMobil.
Subsequent to the purchase of the Torrance refinery, subsidiaries of PBF Energy sold, through a drop-down transaction with a subsidiary of PBF Logistics LP, a 50 percent equity stake in the Torrance Valley Pipeline Company LLC ("TVPC"). Proceeds from the transaction were $175.0 million.
TVPC owns the 189-mile San Joaquin Valley Pipeline system with a throughput capacity of approximately 110,000 barrels per day. The system, segregated into two parts, Northern and Southern portions, is comprised of the M55, M1 and M70 pipelines which are the primary crude gathering and transportation lines that supply PBF Energy's Torrance refinery. The assets also include 11 pipeline stations with approximately one million barrels of combined tankage and truck unloading capability at two of the stations. PBF Logistics LP has entered into a ten-year term transportation services agreement with a subsidiary of PBF Energy containing minimum volume throughput commitments ("MVCs") of approximately 50,000 barrels per day for the Northern logistics system and MVCs of approximately 70,000 barrels per day for the Southern logistics system and the usage of certain tanks.
PBF Energy Inc. Declares Dividend
The company announced today that it will pay a quarterly dividend of $0.30 per share of Class A common stock on November 22, 2016, to holders of record as of November 8, 2016.
Outlook
For the fourth quarter 2016, we expect East Coast total throughput to average 310,000 to 330,000 barrels per day; Mid-Continent total throughput is expected to average 130,000 to 140,000 barrels per day; Gulf Coast total throughput is expected to average 155,000 to 165,000 barrels per day and West Coast total throughput is expected to average 135,000 to 145,000 barrels per day.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income, Adjusted Fully-Converted Net Income per fully-exchanged, fully-diluted share, gross refining margin, gross refining margin per barrel of throughput, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization), Adjusted EBITDA and projected EBITDA related to the refinery acquisitions. PBF believes that non-GAAP financial measures provide useful information about its operating performance and financial results. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBF's non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the non-GAAP measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
PBF Energy's senior management will host a conference call and webcast regarding quarterly results and other business matters on Friday, October 28, 2016, at 8:30 a.m. ET. The call is being webcast and can be accessed at PBF Energy's website, http://www.pbfenergy.com. The call can also be heard by dialing (888) 632-3384 or (785) 424-1675, conference ID: PBFQ316. The audio replay will be available two hours after the end of the call through November 13, 2016, by dialing (800) 283-8183 or (402) 220-0867.
Forward-Looking Statements
Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the company's control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the company's filings with the SEC, as well as the risk disclosed in PBF Logistics LP's SEC filings and any impact PBF Logistics LP may have on the company's credit rating, cost of funds, employees, customer and vendors; risk relating to the securities markets generally; and the impact of adverse market conditions affecting the company, unanticipated developments, regulatory approvals, changes in laws and other events that negatively impact the company. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE: PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.
PBF Energy Inc. also currently indirectly owns the general partner and approximately 44.2% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
|
(Unaudited, in thousands, except share and per share data) | ||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended | |||||||||||||||||||
|
September 30, |
September 30, | |||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
|
Revenues |
$ |
4,513,204 |
$ |
3,217,640 |
$ |
11,171,856 |
$ |
9,763,440 |
||||||||||||
|
Costs and expenses: |
||||||||||||||||||||
|
Cost of sales, excluding depreciation |
3,862,580 |
2,822,444 |
9,524,119 |
8,319,404 |
||||||||||||||||
|
Operating expenses, excluding depreciation |
412,699 |
203,860 |
989,296 |
635,948 |
||||||||||||||||
|
General and administrative expenses |
44,020 |
51,078 |
124,975 |
126,347 |
||||||||||||||||
|
Loss (gain) on sale of assets |
8,159 |
(142) |
11,381 |
(1,133) |
||||||||||||||||
|
Depreciation and amortization expense |
56,036 |
48,133 |
163,029 |
144,401 |
||||||||||||||||
|
4,383,494 |
3,125,373 |
10,812,800 |
9,224,967 |
|||||||||||||||||
|
Income from operations |
129,710 |
92,267 |
359,056 |
538,473 |
||||||||||||||||
|
Other (expenses) income: |
||||||||||||||||||||
|
Change in tax receivable agreement liability |
(3,143) |
(2,215) |
(3,143) |
(2,215) |
||||||||||||||||
|
Change in fair value of catalyst leases |
77 |
4,994 |
(4,556) |
8,982 |
||||||||||||||||
|
Interest expense, net |
(38,527) |
(28,026) |
(111,994) |
(77,094) |
||||||||||||||||
|
Income before income taxes |
88,117 |
67,020 |
239,363 |
468,146 |
||||||||||||||||
|
Income tax expense |
31,673 |
11,525 |
85,607 |
151,072 |
||||||||||||||||
|
Net income |
56,444 |
55,495 |
153,756 |
317,074 |
||||||||||||||||
|
Less: net income attributable to noncontrolling interests |
14,333 |
12,696 |
37,503 |
51,144 |
||||||||||||||||
|
Net income attributable to PBF Energy Inc. |
$ |
42,111 |
$ |
42,799 |
$ |
116,253 |
$ |
265,930 |
||||||||||||
|
Net income available to Class A common stock per share: |
||||||||||||||||||||
|
Basic |
$ |
0.43 |
$ |
0.50 |
$ |
1.19 |
$ |
3.11 |
||||||||||||
|
Diluted |
$ |
0.43 |
$ |
0.49 |
$ |
1.19 |
$ |
3.06 |
||||||||||||
|
Weighted-average shares outstanding-basic |
97,825,357 |
85,845,583 |
97,823,708 |
85,401,028 |
||||||||||||||||
|
Weighted-average shares outstanding-diluted |
103,135,799 |
91,496,283 |
103,210,917 |
91,557,371 |
||||||||||||||||
|
Dividends per common share |
$ |
0.30 |
$ |
0.30 |
$ |
0.90 |
$ |
0.90 |
||||||||||||
|
Adjusted fully-converted net income and adjusted |
||||||||||||||||||||
|
Adjusted fully-converted net income |
$ |
44,404 |
$ |
44,781 |
$ |
122,749 |
$ |
280,603 |
||||||||||||
|
Adjusted fully-converted net income per fully exchanged, fully diluted share |
$ |
0.43 |
$ |
0.49 |
$ |
1.19 |
$ |
3.06 |
||||||||||||
|
Adjusted fully-converted shares outstanding - diluted |
103,135,799 |
91,496,283 |
103,210,917 |
91,557,371 |
||||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||||||||
|
(Unaudited, in thousands, except share and per share data) | ||||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended | |||||||||||||||||||||
|
RECONCILIATION OF NET INCOME TO |
September 30, |
September 30, | ||||||||||||||||||||
|
ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) |
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||
|
Net income attributable to PBF Energy Inc. |
$ |
42,111 |
$ |
42,799 |
$ |
116,253 |
$ |
265,930 |
||||||||||||||
|
Add: |
Net income attributable to noncontrolling interest (Note 2) |
3,797 |
3,315 |
10,755 |
24,536 |
|||||||||||||||||
|
Less: |
Income tax (expense) benefit (Note 3) |
(1,504) |
(1,333) |
(4,259) |
(9,863) |
|||||||||||||||||
|
Adjusted fully-converted net income |
$ |
44,404 |
$ |
44,781 |
$ |
122,749 |
$ |
280,603 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: |
Net non-cash LCM inventory adjustment (Note 5) |
(103,990) |
208,313 |
(320,833) |
81,147 |
|||||||||||||||||
|
Add: |
Change in tax receivable agreement liability (Note 18) |
3,143 |
2,215 |
3,143 |
2,215 |
|||||||||||||||||
|
Add: |
Recomputed income taxes on special items (Note 5) |
39,935 |
(84,632) |
125,805 |
(33,512) |
|||||||||||||||||
|
Adjusted fully-converted net (loss) income excluding special items (Note 4) |
$ |
(16,508) |
$ |
170,677 |
$ |
(69,136) |
$ |
330,453 |
||||||||||||||
|
Diluted weighted-average shares outstanding of PBF Energy Inc. (Note 6) |
103,135,799 |
91,496,283 |
103,210,917 |
91,557,371 |
||||||||||||||||||
|
Conversion of PBF LLC Series A Units (Note 7) |
— |
— |
— |
— |
||||||||||||||||||
|
Fully-converted shares outstanding - diluted |
103,135,799 |
91,496,283 |
103,210,917 |
91,557,371 |
||||||||||||||||||
|
Adjusted fully-converted net income (per fully exchanged, fully diluted shares outstanding) |
$ |
0.43 |
$ |
0.49 |
$ |
1.19 |
$ |
3.06 |
||||||||||||||
|
Adjusted fully-converted net (loss) income excluding special items (per fully exchanged, fully diluted shares outstanding) (Note 4) |
$ |
(0.16) |
$ |
1.87 |
$ |
(0.67) |
$ |
3.61 |
||||||||||||||
|
Three Months Ended |
Nine Months Ended | |||||||||||||||||||||
|
RECONCILIATION OF INCOME FROM OPERATIONS |
September 30, |
September 30, | ||||||||||||||||||||
|
TO INCOME FROM OPERATIONS EXCLUDING SPECIAL ITEMS |
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||
|
Income from operations |
$ |
129,710 |
$ |
92,267 |
$ |
359,056 |
$ |
538,473 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: |
Net non-cash LCM inventory adjustment (Note 5) |
(103,990) |
208,313 |
(320,833) |
81,147 |
|||||||||||||||||
|
Income from operations excluding special items (Note 4) |
$ |
25,720 |
$ |
300,580 |
$ |
38,223 |
$ |
619,620 |
||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||||||||
|
EBITDA RECONCILIATIONS (Note 8) | ||||||||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended | |||||||||||||||||||||
|
September 30, |
September 30, | |||||||||||||||||||||
|
RECONCILIATION OF NET INCOME TO EBITDA |
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||
|
Net income |
$ |
56,444 |
$ |
55,495 |
$ |
153,756 |
$ |
317,074 |
||||||||||||||
|
Add: |
Depreciation and amortization expense |
56,036 |
48,133 |
163,029 |
144,401 |
|||||||||||||||||
|
Add: |
Interest expense, net |
38,527 |
28,026 |
111,994 |
77,094 |
|||||||||||||||||
|
Add: |
Income tax expense |
31,673 |
11,525 |
85,607 |
151,072 |
|||||||||||||||||
|
EBITDA |
$ |
182,680 |
$ |
143,179 |
$ |
514,386 |
$ |
689,641 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: |
Net non-cash LCM inventory adjustment (Note 5) |
(103,990) |
208,313 |
(320,833) |
81,147 |
|||||||||||||||||
|
Add: |
Change in tax receivable agreement liability (Note 18) |
3,143 |
2,215 |
3,143 |
2,215 |
|||||||||||||||||
|
EBITDA excluding special items (Note 4) |
$ |
81,833 |
$ |
353,707 |
$ |
196,696 |
$ |
773,003 |
||||||||||||||
|
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA |
||||||||||||||||||||||
|
EBITDA |
$ |
182,680 |
$ |
143,179 |
$ |
514,386 |
$ |
689,641 |
||||||||||||||
|
Add: |
Stock based compensation |
3,622 |
3,363 |
16,331 |
8,757 |
|||||||||||||||||
|
Add: |
Change in tax receivable agreement liability (Note 18) |
3,143 |
2,215 |
3,143 |
2,215 |
|||||||||||||||||
|
Add: |
Net non-cash change in fair value of catalyst leases |
(77) |
(4,994) |
4,556 |
(8,982) |
|||||||||||||||||
|
Add: |
Non-cash LCM inventory adjustment (Note 5) |
(103,990) |
208,313 |
(320,833) |
81,147 |
|||||||||||||||||
|
Adjusted EBITDA |
$ |
85,378 |
$ |
352,076 |
$ |
217,583 |
$ |
772,778 |
||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||||||||
|
(Unaudited, in thousands) | |||||||||||
|
September 30, |
December 31, | ||||||||||
|
2016 |
2015 | ||||||||||
|
Cash, cash equivalents and marketable securities |
$ |
685,393 |
$ |
1,178,578 |
|||||||
|
Inventories |
1,845,595 |
1,174,272 |
|||||||||
|
Total assets |
7,465,714 |
6,105,124 |
|||||||||
|
Total debt |
2,369,625 |
1,840,355 |
|||||||||
|
Total equity |
$ |
2,279,360 |
$ |
2,095,857 |
|||||||
|
Total equity excluding special items (Note 15) |
$ |
2,754,736 |
$ |
2,763,118 |
|||||||
|
Total debt to capitalization ratio (Note 15) |
51 |
% |
47 |
% | |||||||
|
Total debt to capitalization ratio, excluding special items (Note 15) |
46 |
% |
40 |
% | |||||||
|
Net debt to capitalization ratio (Note 15) |
42 |
% |
24 |
% | |||||||
|
Net debt to capitalization ratio, excluding special items (Note 15) |
38 |
% |
19 |
% | |||||||
|
SUMMARIZED STATEMENT OF CASH FLOW DATA | |||||||||||
|
(Unaudited, in thousands) | |||||||||||
|
Nine Months Ended September 30, | |||||||||||
|
2016 |
2015 | ||||||||||
|
Cash flows provided by operations |
$ |
388,212 |
$ |
240,399 |
|||||||
|
Cash flows used in investing activities |
(1,246,953) |
(166,942) |
|||||||||
|
Cash flows provided by financing activities |
539,823 |
1,499 |
|||||||||
|
Net (decrease) increase in cash and cash equivalents |
(318,918) |
74,956 |
|||||||||
|
Cash and cash equivalents, beginning of period |
944,320 |
397,873 |
|||||||||
|
Cash and cash equivalents, end of period |
$ |
625,402 |
$ |
472,829 |
|||||||
|
Marketable securities |
59,991 |
234,249 |
|||||||||
|
Net cash, cash equivalents and marketable securities |
$ |
685,393 |
$ |
707,078 |
|||||||
|
See Footnotes to Earnings Release Tables | |||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||
|
CONSOLIDATING FINANCIAL INFORMATION (Note 9) | |||||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||||
|
Three Months Ended September 30, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
4,508,613 |
$ |
48,433 |
$ |
— |
$ |
(43,842) |
$ |
4,513,204 |
|||||||||
|
Depreciation and amortization |
49,554 |
5,140 |
1,342 |
56,036 |
|||||||||||||||
|
Income (loss) from operations (16) |
148,985 |
26,060 |
(43,714) |
(1,621) |
129,710 |
||||||||||||||
|
Interest expense, net |
713 |
7,696 |
30,118 |
— |
38,527 |
||||||||||||||
|
Capital expenditures (Note 14) |
$ |
1,086,557 |
$ |
2,625 |
$ |
4,337 |
$ |
— |
$ |
1,093,519 |
|||||||||
|
Three Months Ended September 30, 2015 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
3,217,640 |
$ |
37,082 |
$ |
— |
$ |
(37,082) |
$ |
3,217,640 |
|||||||||
|
Depreciation and amortization |
44,366 |
1,649 |
2,118 |
— |
48,133 |
||||||||||||||
|
Income (loss) from operations |
114,925 |
27,463 |
(50,121) |
— |
92,267 |
||||||||||||||
|
Interest expense, net |
4,110 |
7,180 |
16,736 |
— |
28,026 |
||||||||||||||
|
Capital expenditures |
81,969 |
962 |
573 |
— |
83,504 |
||||||||||||||
|
Nine Months Ended September 30, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
11,164,571 |
$ |
125,641 |
$ |
— |
$ |
(118,356) |
$ |
11,171,856 |
|||||||||
|
Depreciation and amortization |
149,690 |
8,922 |
4,417 |
— |
163,029 |
||||||||||||||
|
Income (loss) from operations (16) |
402,676 |
76,271 |
(118,270) |
(1,621) |
359,056 |
||||||||||||||
|
Interest expense, net |
2,827 |
22,559 |
86,608 |
— |
111,994 |
||||||||||||||
|
Capital expenditures (Note 14) |
1,314,637 |
103,027 |
16,596 |
— |
1,434,260 |
||||||||||||||
|
Nine Months Ended September 30, 2015 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
9,763,440 |
$ |
104,796 |
$ |
— |
$ |
(104,796) |
$ |
9,763,440 |
|||||||||
|
Depreciation and amortization |
131,817 |
4,919 |
7,665 |
— |
144,401 |
||||||||||||||
|
Income (loss) from operations |
591,005 |
71,914 |
(124,446) |
— |
538,473 |
||||||||||||||
|
Interest expense, net |
13,387 |
14,065 |
49,642 |
— |
77,094 |
||||||||||||||
|
Capital expenditures |
332,544 |
1,182 |
2,183 |
— |
335,909 |
||||||||||||||
|
Balance at September 30, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Total assets (Note 17) |
$ |
6,251,323 |
$ |
735,414 |
$ |
510,723 |
$ |
(31,746) |
$ |
7,465,714 |
|||||||||
|
Balance at December 31, 2015 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Total assets |
$ |
5,087,554 |
$ |
422,902 |
$ |
618,617 |
$ |
(23,949) |
$ |
6,105,124 |
|||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
MARKET INDICATORS AND KEY OPERATING INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended | |||||||||||||||||||
|
September 30, |
September 30, | |||||||||||||||||||
|
Market Indicators (dollars per barrel) (Note 10) |
2016 |
2015 |
2016 |
2015 | ||||||||||||||||
|
Dated Brent Crude |
$ |
45.90 |
$ |
50.36 |
$ |
42.05 |
$ |
55.54 |
||||||||||||
|
West Texas Intermediate (WTI) crude oil |
$ |
44.88 |
$ |
46.45 |
$ |
41.41 |
$ |
50.93 |
||||||||||||
|
Light Louisiana Sweet (LLS) crude oil |
$ |
46.52 |
$ |
50.20 |
$ |
43.20 |
$ |
55.32 |
||||||||||||
|
Alaska North Slope (ANS) crude oil |
$ |
44.65 |
$ |
51.52 |
$ |
41.58 |
$ |
55.39 |
||||||||||||
|
Crack Spreads: |
||||||||||||||||||||
|
Dated Brent (NYH) 2-1-1 |
$ |
12.94 |
$ |
17.60 |
$ |
13.18 |
$ |
17.75 |
||||||||||||
|
WTI (Chicago) 4-3-1 |
$ |
13.64 |
$ |
24.03 |
$ |
13.07 |
$ |
20.09 |
||||||||||||
|
LLS (Gulf Coast) 2-1-1 |
$ |
11.51 |
$ |
16.55 |
$ |
10.35 |
$ |
15.99 |
||||||||||||
|
ANS (West Coast) 4-3-1 |
$ |
15.61 |
$ |
32.59 |
$ |
17.22 |
$ |
28.06 |
||||||||||||
|
Crude Oil Differentials: |
||||||||||||||||||||
|
Dated Brent (foreign) less WTI |
$ |
1.02 |
$ |
3.91 |
$ |
0.64 |
$ |
4.61 |
||||||||||||
|
Dated Brent less Maya (heavy, sour) |
$ |
6.87 |
$ |
7.60 |
$ |
7.57 |
$ |
8.12 |
||||||||||||
|
Dated Brent less WTS (sour) |
$ |
2.50 |
$ |
2.29 |
$ |
1.48 |
$ |
4.14 |
||||||||||||
|
Dated Brent less ASCI (sour) |
$ |
4.14 |
$ |
5.08 |
$ |
4.02 |
$ |
4.43 |
||||||||||||
|
WTI less WCS (heavy, sour) |
$ |
13.28 |
$ |
14.52 |
$ |
12.15 |
$ |
11.58 |
||||||||||||
|
WTI less Bakken (light, sweet) |
$ |
1.41 |
$ |
3.26 |
$ |
1.13 |
$ |
3.49 |
||||||||||||
|
WTI less Syncrude (light, sweet) |
$ |
(0.95) |
$ |
1.02 |
$ |
(2.67) |
$ |
(1.19) |
||||||||||||
|
WTI less ANS (light, sweet) |
$ |
0.23 |
$ |
(5.07) |
$ |
(0.17) |
$ |
(4.46) |
||||||||||||
|
Natural gas (dollars per MMBTU) |
$ |
2.79 |
$ |
2.73 |
$ |
2.35 |
$ |
2.76 |
||||||||||||
|
Key Operating Information |
||||||||||||||||||||
|
Production (barrels per day (bpd) in thousands) |
799.1 |
473.2 |
717.6 |
473.4 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
786.3 |
475.4 |
711.8 |
478.1 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
72.3 |
43.7 |
195.1 |
130.5 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
2.70 |
$ |
3.45 |
$ |
2.69 |
$ |
5.26 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
6.92 |
$ |
12.97 |
$ |
6.20 |
$ |
10.95 |
||||||||||||
|
Refinery operating expense per barrel of throughput (Note 12) |
$ |
5.59 |
$ |
4.57 |
$ |
4.97 |
$ |
4.79 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13) |
||||||||||||||||||||
|
Heavy |
34 |
% |
9 |
% |
23 |
% |
12 |
% | ||||||||||||
|
Medium |
32 |
% |
54 |
% |
38 |
% |
50 |
% | ||||||||||||
|
Light |
23 |
% |
26 |
% |
28 |
% |
27 |
% | ||||||||||||
|
Other feedstocks and blends |
11 |
% |
11 |
% |
11 |
% |
11 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
51 |
% |
48 |
% |
49 |
% |
47 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
31 |
% |
34 |
% |
31 |
% |
35 |
% | ||||||||||||
|
Lubes |
1 |
% |
1 |
% |
1 |
% |
2 |
% | ||||||||||||
|
Chemicals |
3 |
% |
3 |
% |
4 |
% |
3 |
% | ||||||||||||
|
Other |
14 |
% |
14 |
% |
15 |
% |
13 |
% | ||||||||||||
|
Total yield |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended | |||||||||||||||||||
|
September 30, |
September 30, | |||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
|
Supplemental Operating Information - East Coast |
||||||||||||||||||||
|
Production (bpd in thousands) |
313.1 |
297.5 |
322.9 |
318.5 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
315.9 |
301.8 |
327.9 |
325.4 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
29.1 |
27.8 |
89.8 |
88.8 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
0.84 |
$ |
0.06 |
$ |
0.98 |
$ |
2.20 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
4.52 |
$ |
10.98 |
$ |
5.21 |
$ |
9.33 |
||||||||||||
|
Refinery operating expense per barrel of throughput (Note 12) |
$ |
4.26 |
$ |
4.79 |
$ |
4.42 |
$ |
4.77 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Heavy |
27 |
% |
14 |
% |
17 |
% |
18 |
% | ||||||||||||
|
Medium |
48 |
% |
64 |
% |
57 |
% |
56 |
% | ||||||||||||
|
Light |
12 |
% |
6 |
% |
12 |
% |
11 |
% | ||||||||||||
|
Other feedstocks and blends |
13 |
% |
16 |
% |
14 |
% |
15 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
46 |
% |
45 |
% |
47 |
% |
46 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
33 |
% |
33 |
% |
30 |
% |
34 |
% | ||||||||||||
|
Lubes |
2 |
% |
2 |
% |
2 |
% |
2 |
% | ||||||||||||
|
Chemicals |
2 |
% |
2 |
% |
2 |
% |
2 |
% | ||||||||||||
|
Other |
16 |
% |
17 |
% |
18 |
% |
15 |
% | ||||||||||||
|
Total yield |
99 |
% |
99 |
% |
99 |
% |
99 |
% | ||||||||||||
|
Supplemental Operating Information - Mid-Continent |
||||||||||||||||||||
|
Production (bpd in thousands) |
168.2 |
175.7 |
168.0 |
154.9 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
165.3 |
173.6 |
165.7 |
152.7 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
15.2 |
15.9 |
45.5 |
41.7 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
3.69 |
$ |
7.09 |
$ |
2.84 |
$ |
9.50 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
6.67 |
$ |
16.44 |
$ |
5.85 |
$ |
14.43 |
||||||||||||
|
Refinery operating expense per barrel of throughput (Note 12) |
$ |
4.29 |
$ |
4.19 |
$ |
4.39 |
$ |
4.85 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Medium |
30 |
% |
35 |
% |
33 |
% |
36 |
% | ||||||||||||
|
Light |
67 |
% |
63 |
% |
64 |
% |
62 |
% | ||||||||||||
|
Other feedstocks and blends |
3 |
% |
2 |
% |
3 |
% |
2 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
54 |
% |
52 |
% |
52 |
% |
51 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
34 |
% |
36 |
% |
35 |
% |
36 |
% | ||||||||||||
|
Chemicals |
5 |
% |
5 |
% |
5 |
% |
5 |
% | ||||||||||||
|
Other |
9 |
% |
8 |
% |
9 |
% |
10 |
% | ||||||||||||
|
Total yield |
102 |
% |
101 |
% |
101 |
% |
102 |
% | ||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||
|
Three Months Ended |
Nine Months Ended | |||||||||||||||
|
September 30, |
September 30, | |||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||
|
Supplemental Operating Information - Gulf Coast |
||||||||||||||||
|
Production (bpd in thousands) |
172.9 |
N/A |
178.0 |
N/A | ||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
165.6 |
N/A |
171.3 |
N/A | ||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
15.2 |
N/A |
46.9 |
N/A | ||||||||||||
|
Gross margin per barrel of throughput |
$ |
1.24 |
N/A |
$ |
2.97 |
N/A | ||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
7.48 |
N/A |
$ |
6.85 |
N/A | ||||||||||
|
Refinery operating expense per barrel of throughput (Note 12) |
$ |
5.78 |
N/A |
$ |
5.28 |
N/A | ||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||
|
Heavy |
40 |
% |
N/A |
39 |
% |
N/A | ||||||||||
|
Medium |
28 |
% |
N/A |
17 |
% |
N/A | ||||||||||
|
Light |
16 |
% |
N/A |
29 |
% |
N/A | ||||||||||
|
Other feedstocks and blends |
16 |
% |
N/A |
15 |
% |
N/A | ||||||||||
|
Total throughput |
100 |
% |
N/A |
100 |
% |
N/A | ||||||||||
|
Yield (% of total throughput): |
||||||||||||||||
|
Gasoline and gasoline blendstocks |
47 |
% |
N/A |
47 |
% |
N/A | ||||||||||
|
Distillates and distillate blendstocks |
29 |
% |
N/A |
31 |
% |
N/A | ||||||||||
|
Chemicals |
6 |
% |
N/A |
6 |
% |
N/A | ||||||||||
|
Other |
18 |
% |
N/A |
16 |
% |
N/A | ||||||||||
|
Total yield |
100 |
% |
N/A |
100 |
% |
N/A | ||||||||||
|
Supplemental Operating Information - West Coast |
||||||||||||||||
|
Production (bpd in thousands) |
144.9 |
N/A |
144.9 |
N/A | ||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
139.5 |
N/A |
139.6 |
N/A | ||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
12.8 |
N/A |
12.8 |
N/A | ||||||||||||
|
Gross margin per barrel of throughput |
$ |
3.86 |
N/A |
$ |
3.86 |
N/A | ||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
11.96 |
N/A |
$ |
11.96 |
N/A | ||||||||||
|
Refinery operating expense per barrel of throughput (Note 12) |
$ |
8.68 |
N/A |
$ |
8.68 |
N/A | ||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||
|
Heavy |
85 |
% |
N/A |
85 |
% |
N/A | ||||||||||
|
Medium |
2 |
% |
N/A |
2 |
% |
N/A | ||||||||||
|
Other feedstocks and blends |
13 |
% |
N/A |
13 |
% |
N/A | ||||||||||
|
Total throughput |
100 |
% |
N/A |
100 |
% |
N/A | ||||||||||
|
Yield (% of total throughput): |
||||||||||||||||
|
Gasoline and gasoline blendstocks |
61 |
% |
N/A |
61 |
% |
N/A | ||||||||||
|
Distillates and distillate blendstocks |
25 |
% |
N/A |
25 |
% |
N/A | ||||||||||
|
Other |
18 |
% |
N/A |
18 |
% |
N/A | ||||||||||
|
Total yield |
104 |
% |
N/A |
104 |
% |
N/A | ||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||||||||
|
GROSS REFINING MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note 11) | ||||||||||||||||||||||
|
(Unaudited, in thousands, except per barrel amounts) | ||||||||||||||||||||||
|
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||
|
September 30, 2016 |
September 30, 2015 |
|||||||||||||||||||||
|
RECONCILIATION OF GROSS MARGIN TO GROSS REFINING MARGIN |
$ |
per barrel of throughput |
$ |
per barrel of |
||||||||||||||||||
|
Gross margin |
$ |
195,242 |
$ |
2.70 |
$ |
150,815 |
$ |
3.45 |
||||||||||||||
|
Less: Revenues of PBFX |
(48,433) |
(0.67) |
(37,082) |
(0.85) |
||||||||||||||||||
|
Add: Affiliate cost of sales of PBFX |
2,164 |
0.03 |
1,118 |
0.03 |
||||||||||||||||||
|
Add: Refinery operating expenses |
404,045 |
5.59 |
200,014 |
4.57 |
||||||||||||||||||
|
Add: Refinery depreciation |
51,337 |
0.71 |
44,366 |
1.01 |
||||||||||||||||||
|
Gross refining margin |
$ |
604,355 |
$ |
8.36 |
$ |
359,231 |
$ |
8.21 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
(103,990) |
(1.44) |
208,313 |
4.76 |
||||||||||||||||||
|
Gross refining margin excluding special items (Note 4) |
$ |
500,365 |
$ |
6.92 |
$ |
567,544 |
$ |
12.97 |
||||||||||||||
|
Nine Months Ended |
Nine Months Ended |
|||||||||||||||||||||
|
September 30, 2016 |
September 30, 2015 |
|||||||||||||||||||||
|
RECONCILIATION OF GROSS MARGIN TO GROSS REFINING MARGIN |
$ |
per barrel of |
$ |
per barrel of |
||||||||||||||||||
|
Gross margin |
$ |
524,041 |
$ |
2.69 |
$ |
686,401 |
$ |
5.26 |
||||||||||||||
|
Less: Revenues of PBFX |
(125,641) |
(0.64) |
(101,413) |
(0.78) |
||||||||||||||||||
|
Add: Affiliate cost of sales of PBFX |
7,486 |
0.04 |
6,394 |
0.05 |
||||||||||||||||||
|
Add: Refinery operating expenses |
972,223 |
4.98 |
625,542 |
4.79 |
||||||||||||||||||
|
Add: Refinery depreciation |
151,473 |
0.78 |
132,093 |
1.01 |
||||||||||||||||||
|
Gross refining margin |
$ |
1,529,582 |
$ |
7.85 |
$ |
1,349,017 |
$ |
10.33 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
(320,833) |
(1.65) |
81,147 |
0.62 |
||||||||||||||||||
|
Gross refining margin excluding special items (Note 4) |
$ |
1,208,749 |
$ |
6.20 |
$ |
1,430,164 |
$ |
10.95 |
||||||||||||||
|
See Footnotes to Earnings Release Tables |
||||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES
| ||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||
|
FOOTNOTES TO EARNINGS RELEASE TABLES | ||||||||||||||
|
(1) Adjusted fully-converted information is presented in this table as management believes that these Non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful to investors to compare the company's results across the periods presented and facilitates an understanding of the company's operating results. The company also uses these measures to evaluate its operating performance. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The differences between adjusted fully-converted and GAAP results are explained in footnotes 2 through 7 and 18. | ||||||||||||||
|
(2) Represents the elimination of the noncontrolling interest associated with the ownership by the members of PBF Energy Company LLC other than PBF Energy Inc., as if such members had fully exchanged their Series A Units for shares of PBF Energy's Class A common stock. | ||||||||||||||
|
(3) Represents an adjustment to reflect the company's statutory corporate tax rate of approximately 39.6% for the 2016 period and 40.2% for the 2015 period, respectively, applied to the net income attributable to the noncontrolling interest for all periods presented. The adjustment assumes the full exchange of existing PBF Energy Company LLC Series A Units as described in footnote 2. | ||||||||||||||
|
(4) The Non-GAAP measures presented include adjusted fully-converted net income excluding special items, income from continuing operations excluding special items, EBITDA excluding special items, and gross refining margin excluding special items. The special items for the periods presented relate to a lower of cost or market adjustment (LCM) and changes in the tax receivable agreement liability (TRA). LCM is a GAAP guideline related to inventory valuation that requires inventory to be stated at the lower of cost or market. Our inventories are stated at the lower of cost or market. Cost is determined using last-in, first-out (LIFO) inventory valuation methodology, in which the most recently incurred costs are charged to cost of sales and inventories are valued at base layer acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and net realizable selling price of the inventory. In periods where the market price of our inventory declines substantially, cost values of inventory may exceed market values. In such instances, we record an adjustment to write down the value of inventory to market value in accordance with GAAP. In subsequent periods, the value of inventory is reassessed and an LCM adjustment is recorded to reflect the net change in the LCM inventory reserve between the prior period and the current period. Changes in the TRA reflect charges or benefits attributable to changes in our obligation under the tax receivable agreement due to factors out of our control such as changes in tax rates. Although we believe that Non-GAAP financial measures excluding the impact of special items provide useful supplemental information to investors regarding the results and performance of our business and allow for more useful period-over-period comparisons, such Non-GAAP measures should only be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP. | ||||||||||||||
|
(5) During the three months ended September 30, 2016, the Company recorded an adjustment to value its inventories to the lower of cost or market which resulted in a net pre-tax benefit of approximately $104.0 million reflecting the change in the lower of cost or market inventory reserve from $900.5 million at June 30, 2016 to $796.5 million at September 30, 2016. During the nine months ended September 30, 2016, the Company recorded an adjustment to value its inventories to the lower of cost or market which resulted in a net pre-tax benefit of approximately $320.8 million reflecting the change in the lower of cost or market inventory reserve from $1,117.3 million at December 31, 2015 to $796.5 million at September 30, 2016.
During the three months ended September 30, 2015, the Company recorded an adjustment to value its inventories to the lower of cost or market which resulted in a net pre-tax charge of approximately $208.3 million reflecting the change in the lower of cost or market inventory reserve from $562.9 million at June 30, 2015 to $771.3 million at September 30, 2015. During the nine months ended September 30, 2015, the Company recorded an adjustment to value its inventories to the lower of cost or market which resulted in a net pre-tax charge of approximately $81.1 million reflecting the change in the lower of cost or market inventory reserve from $690.1 million at December 31, 2014 to $771.3 million at September 30, 2015.
The impact of these LCM inventory adjustments are included in the Refining segment's operating income, but are excluded from the operating results presented in the table in order to make such information comparable between periods. Income taxes related to the net LCM adjustment were recalculated using the Company's statutory corporate tax rate of approximately 39.6% for both the three and nine months ended September 30, 2016 and 40.2% for both the three and nine months ended September 30, 2015. | ||||||||||||||
|
(6) Represents weighted-average diluted shares outstanding assuming the full exchange of common stock equivalents, including options and warrants for PBF LLC Series A Units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method (to the extent the impact of such exchange would not be anti-dilutive). Common stock equivalents excludes the effects of warrants and options to purchase 5,161,125 and 4,364,250 shares of PBF Energy Class A common stock because they are anti-dilutive for the three and nine months ended September 30, 2016, respectively. Common stock equivalents excludes the effects of warrants and options to purchase 1,789,500 and 2,867,000 shares of PBF Energy Class A common stock because they are anti-dilutive for the three and nine months ended September 30, 2015, respectively. | ||||||||||||||
|
(7) Represents an adjustment to weighted-average diluted shares to assume the full exchange of existing PBF LLC Series A Units as described in footnote 2 above if not included in the diluted weighted-average shares outstanding as described in footnote 6 above. | ||||||||||||||
|
(8) EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Adjusted EBITDA are supplemental measures of performance that are not required by, or presented in accordance with, GAAP. We use these Non-GAAP financial measures as a supplement to our GAAP results in order to provide a more complete understanding of the factors and trends affecting our business. EBITDA and Adjusted EBITDA are measures of operating performance that are not defined by GAAP and should not be considered substitutes for net income as determined in accordance with GAAP. In addition, because EBITDA and Adjusted EBITDA are not calculated in the same manner by all companies, they are not necessarily comparable to other similarly titled measures used by other companies. EBITDA and Adjusted EBITDA have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. | ||||||||||||||
|
(9) We operate in two reportable segments; Refining and Logistics. Our operations that are not included in the Refining and Logistics segments are included in Corporate. As of September 30, 2016, the Refining segment includes the operations of our oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio, New Orleans, Louisiana and Torrance, California. The Logistics segment includes the operations of PBF Logistics LP ("PBFX"), a growth-oriented master limited partnership which owns and operates logistics assets, currently consisting of the Delaware City Rail Terminal, the Toledo Truck Terminal, the DCR West Rack, the Toledo Storage Facility, the Delaware City Products Pipeline and Truck Rack, the East Coast Terminals, which were acquired in connection with PBFX's purchase of 4 refined product terminals located in the greater Philadelphia region from an affiliate of Plains All American Pipeline, L.P. for total cash consideration of $100.0 million (the "PBFX Plains Asset Purchase") completed in the second quarter of 2016, and the Torrance Valley Pipeline, in which PBFX acquired a 50% equity interest on August 31, 2016. Prior to PBFX's initial public offering and subsequent acquisitions, PBFX's assets were operated within the refining operations of PBF Energy's Delaware City, Toledo, and Torrance refineries. Apart from the East Coast Terminals, the assets did not generate third party or intra-entity revenue, other than certain intra-entity revenue recognized by the Delaware City Products Pipeline and Truck Rack, and were not considered to be a separate reportable segment. All intercompany transactions are eliminated in our consolidated financial statements and are included in Eliminations, as applicable. | ||||||||||||||
|
(10) As reported by Platts. | ||||||||||||||
|
(11) Gross refining margin and gross refining margin per barrel of throughput are Non-GAAP measures because they exclude refinery operating expenses, refinery depreciation and amortization and gross margin of PBFX. Gross refining margin per barrel is gross refining margin, divided by total crude and feedstocks throughput. We believe they are important measures of operating performance and they provide useful information to investors because gross refining margin per barrel is a better metric comparison to the industry refining margin benchmarks shown in the Market Indicators Tables, as the industry benchmarks do not include a charge for refinery operating expenses and depreciation. Other companies in our industry may not calculate gross refining margin and gross refining margin per barrel in the same manner. Gross refining margin and gross refining margin per barrel of throughput have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. | ||||||||||||||
|
(12) Represents refinery operating expenses, excluding depreciation and amortization, divided by total crude oil and feedstocks throughput. | ||||||||||||||
|
(13) We define heavy crude oil as crude oil with American Petroleum Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with API gravity between 24 and 35 degrees. We define light crude oil as crude oil with API gravity higher than 35 degrees. | ||||||||||||||
|
(14) The Refining segment includes capital expenditures of $2.7 million for the working capital settlement related to the acquisition of the Chalmette refinery that was finalized in the first quarter of 2016 and $971.9 million for the acquisition of the Torrance refinery in the third quarter of 2016. The Logistics segment includes capital expenditures of $98.3 million for the PBFX Plains Asset Purchase in the second quarter of 2016. | ||||||||||||||
|
(15) The total debt to capitalization ratio is calculated by dividing total debt by the sum of total debt and total equity. This ratio is a measurement which is presented in our annual and interim filings and management believes this ratio is useful to investors in determining our leverage. Net debt and the net debt to capitalization ratio are Non-GAAP measures. Net debt is calculated by subtracting cash and cash equivalents and marketable securities from total debt. We believe these measurements are also useful to investors since we have the ability to and may decide to use a portion of our cash and cash equivalents to retire or pay down our debt. Marketable securities included in net debt fully collateralize PBFX's Term Loan. Additionally, as described in footnote 4 above, we have also presented the total debt to capitalization and net debt to capitalization ratios excluding the cumulative effects of special items on equity. | ||||||||||||||
|
September 30, |
December 31, | |||||||||
|
2016 |
2015 | |||||||||
|
Total debt |
$ |
2,369,625 |
$ |
1,840,355 |
||||||
|
Total equity |
2,279,360 |
2,095,857 |
||||||||
|
Total capitalization |
$ |
4,648,985 |
$ |
3,936,212 |
||||||
|
Total debt |
$ |
2,369,625 |
$ |
1,840,355 |
||||||
|
Total equity excluding special items |
2,754,736 |
2,763,118 |
||||||||
|
Total capitalization excluding special items |
$ |
5,124,361 |
$ |
4,603,473 |
||||||
|
Total equity |
$ |
2,279,360 |
$ |
2,095,857 |
||||||
|
Special Items (Note 4) |
||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
796,503 |
1,117,336 |
||||||||
|
Add: Change in tax receivable agreement liability (Note 4) |
(9,457) |
(12,600) |
||||||||
|
Less: Recomputed income taxes on special items (Note 5) |
(311,670) |
(437,475) |
||||||||
|
Net impact of special items to equity |
475,376 |
667,261 |
||||||||
|
Total equity excluding special items (Note 4) |
$ |
2,754,736 |
$ |
2,763,118 |
||||||
|
Total debt |
$ |
2,369,625 |
$ |
1,840,355 |
||||||
|
Less: Cash, cash equivalents and marketable securities |
685,393 |
1,178,578 |
||||||||
|
Net Debt |
$ |
1,684,232 |
$ |
661,777 |
||||||
|
Total debt to capitalization ratio |
51 |
% |
47 |
% | ||||||
|
Total debt to capitalization ratio, excluding special items |
46 |
% |
40 |
% | ||||||
|
Net debt to capitalization ratio |
42 |
% |
24 |
% | ||||||
|
Net debt to capitalization ratio, excluding special items |
38 |
% |
19 |
% | ||||||
|
(16) The Logistics segment includes 100% of the income from operations of the Torrance Valley Pipeline Company LLC ("TVPC"), as TVPC is consolidated by PBFX. PBFX records net income attributable to noncontrolling interest for the 50% equity interest in TVPC held by PBF Holding. PBF Holding (included in the Refining segment) records equity income in investee related to its 50% noncontrolling ownership interest in TVPC. For the purposes of the consolidated PBF Energy financial statements, PBF Holding's equity income in investee and PBFX's net income attributable to noncontrolling interest eliminate in consolidation. As TVPC was acquired by PBF Holding in connection with the Torrance Acquisition on July 1, 2016, there was no impact on comparative 2015 disclosures. |
|
(17) The Logistics segment includes 100% of the assets of TVPC as TVPC is consolidated by PBFX. PBFX records a noncontrolling interest for the 50% equity interest in TVPC held by PBF Holding. PBF Holding (included in the Refining segment) records an equity investment in TVPC reflecting its noncontrolling ownership interest. For the purposes of the consolidated PBF Energy financial statements, PBFX's noncontrolling interest in TVPC and PBF Holding's equity investment in TVPC eliminate in consolidation. As the acquisition of PBFX's 50% interest in TVPC was completed in the third quarter of 2016, there was no impact on comparative 2015 disclosures. |
|
(18) The Company recorded pre-tax adjustments related to the change in the tax receivable agreement liability of $3.1 million for the three and nine months ended September 30, 2016, respectively. The Company recorded pre-tax adjustments related to the change in the tax receivable agreement liability of $2.2 million for the three and nine months ended September 30, 2015, respectively. Income taxes related to the change in the tax receivable agreement liability were recalculated using the Company's statutory corporate tax rate of approximately 39.6% and 40.2%, respectively, for the 2016 and 2015 periods presented. |
Logo - http://photos.prnewswire.com/prnh/20160527/373092LOGO
SOURCE PBF Energy Inc.
Article Date
10/28/2016PBF Logistics Increases Quarterly Distribution to $0.44 per Common Unit and Announces Third Quarter 2016 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Oct. 28, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") announced today third quarter 2016 net income of $18.4 million, or $0.50 per common unit. During the quarter, the Partnership generated cash from operations of approximately $25.8 million, earnings before interest, income taxes, depreciation, and amortization ("EBITDA") of $31.5 million and distributable cash flow of $25.1 million. Included in our general and administrative expenses for the third quarter are $1.3 million, or $0.03 per common unit, of transaction expenses related to asset acquisitions.
"The Partnership continued to execute its growth strategy with the acquisition of the Torrance Valley pipeline interests in September. The Torrance Valley pipeline is the primary crude oil supply delivery method for PBF Energy's Torrance refinery and further diversifies and expands the Partnership's revenue base," said PBF Logistics GP LLC Chief Executive Officer, Tom Nimbley. "In light of our continued growth, we are pleased that the board of directors approved another increase in our quarterly distribution to $0.44 per common unit."
Mr. Nimbley continued, "As announced today, our Chief Financial Officer, Erik Young, has been appointed to our general partner's board of directors. Erik has contributed significantly to the Partnership's growth and success and will be a valuable asset to the PBF Logistics GP board."
As of September 30, 2016, the Partnership had approximately $231 million of liquidity, including $44 million in cash and cash equivalents and access to approximately $187 million under its existing revolving credit facility. The Partnership intends to use its financial resources to fund organic growth projects at the Partnership and future drop-down and third-party acquisitions.
Equity Offering and Torrance Valley Pipeline Company Acquisition
On August 11, 2016, the Partnership launched an underwritten public equity offering which resulted in the successful sale of 4,375,000 common units, including a partial exercise of the underwriter's option to purchase additional common units. Total net proceeds (after underwriter's discounts and commissions) of the offering were approximately $87 million. The offering closed on August 17, 2016. The Partnership used the net proceeds from this offering to fund a portion of the $175.0 million purchase price for the 50 percent interest in Torrance Valley Pipeline Company LLC ("TVPC").
TVPC owns the 189-mile San Joaquin Valley Pipeline system with a throughput capacity of approximately 110,000 barrels per day. The system, segregated into two parts, Northern and Southern portions, is comprised of the M55, M1 and M70 pipelines which are the primary crude gathering and transportation lines that supply PBF Energy's Torrance refinery. The assets also include 11 pipeline stations with approximately one million barrels of combined tankage and truck unloading capability at two of the stations. The Partnership has entered into a ten-year term transportation services agreement with a subsidiary of PBF Energy containing minimum volume throughput commitments ("MVCs") of approximately 50,000 barrels per day for the Northern logistics system and MVCs of approximately 70,000 barrels per day for the Southern logistics system and the usage of certain tanks.
PBF Logistics Announces Increased Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.44 per common unit. The distribution is payable on November 22, 2016, to unitholders of record at the close of business on November 8, 2016.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
This earnings release, and the discussion during the management conference call, may include references to non-GAAP financial measures including, but not limited to, EBITDA, EBITDA attributable to PBFX and distributable cash flow. PBFX's management believes that non-GAAP financial measures provide useful information about the Partnership's operating performance, financial results and the amount of cash generated by the Partnership's operations and the amount available for distribution to its unitholders. 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. PBFX'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 financial measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
The Partnership's senior management will host a conference call and webcast regarding quarterly results and other business matters on Friday, October 28, 2016, at 11:00 a.m. ET. The call can also be heard by dialing (888) 632-3384 or (785) 424-1675, conference ID: PBFXQ316. The audio replay will be available two hours after the end of the call through November 13, 2016, by dialing (800) 283-4595 or (402) 220-0873. The call is being webcast and can be accessed on the Partnership's website, http://www.pbflogistics.com.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including the Annual Report on Form 10-K. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present our results of operations, related operational information, and reconciliations of net income and net cash provided by operating activity to EBITDA and distributable cash flows (both as defined below) of PBFX for the three and nine months ended September 30, 2016 and 2015. The financial information presented contains the financial results of PBFX, Delaware City Products Pipeline and Truck Rack (as defined below) prior to our acquisition on May 14, 2015 and Torrance Valley Pipeline (as defined below) prior to our acquisition on August 31, 2016.
On May 14, 2015, we acquired from PBF Energy Company LLC ("PBF LLC") a 23.4 mile, 16-inch interstate petroleum products pipeline with capacity in excess of 125,000 barrels per day ("bpd") (the "Delaware City Products Pipeline") and a 15-lane, 76,000 bpd capacity truck loading rack (the "Delaware City Truck Rack") located at PBF Holding's Delaware City, Delaware refinery. The Delaware City Products Pipeline and the Delaware City Truck Rack are collectively referred to as the "Delaware City Products Pipeline and Truck Rack." The Delaware City Products Pipeline is the only asset that recorded revenue for transactions with PBF Energy prior to our acquisition.
On August 31, 2016, our wholly-owned subsidiary, PBFX Operating Company LP ("PBFX Op Co"), acquired from PBF LLC a 50% equity interest in Torrance Valley Pipeline Company LLC ("TVPC"), with the other 50% equity interest owned by a subsidiary of PBF LLC, TVP Holding Company LLC ("TVP Holding") (the "TVPC Acquisition"). TVPC owns the 189 mile San Joaquin Valley Pipeline system with capacity of approximately 110,000 bpd (the "Torrance Valley Pipeline"), which supports PBF Holding's Torrance refinery. The Torrance Valley Pipeline consists of the M55, M1 and M70 pipeline systems, including 11 pipeline stations with storage capacity and truck unloading capability at two of the stations. We consolidate the financial results of TVPC, and record a noncontrolling interest for the 50% economic interest in TVPC held by TVP Holding.
The Delaware City Products Pipeline and Truck Rack and Torrance Valley Pipeline acquisitions were transfers between entities under common control. These transactions are collectively referred to as "Acquisitions from PBF." The Torrance Valley Pipeline was acquired by PBF Energy on July 1, 2016 in connection with the acquisition of the Torrance refinery and related logistical assets and was not operated by PBF Energy prior to its acquisition. Accordingly, the financial information contained herein has been adjusted in the current quarter to include the historical results of the Torrance Valley Pipeline prior to the acquisition by PBFX from July 1, 2016 through August 31, 2016. We present the historical results of the Torrance Valley Pipeline prior to our acquisition in the following tables as "Torrance Valley Pipeline Company LLC."
On April 29, 2016, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), purchased four refined product terminals (the "East Coast Terminals"), including a storage facility to service the East Coast Terminals, from an affiliate of Plains All American Pipeline, L.P. (the "Plains Asset Purchase") which has subsequently generated third party revenues. Prior to the Plains Asset Purchase, we did not record third-party revenue, except for third party revenue generated by the Delaware City Products Pipeline prior to August 2013. Additionally, our results may not be comparable to prior periods due to additional revenue, operating and maintenance expense and general and administrative expense associated with the East Coast Terminals.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before interest expense, income tax expense, depreciation and amortization expense. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense, income tax expense, depreciation and amortization expense attributable to PBFX, which excludes the results of Acquisitions from PBF prior to the effective dates of such transactions. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less net cash paid for interest, maintenance capital expenditures and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is distributable cash flow divided by total distribution declared. EBITDA, EBITDA attributable to PBFX and distributable cash flow are not financial measures prescribed by U.S. generally accepted accounting principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX and distributable cash flow are not financial measures prescribed by U.S. GAAP ("non-GAAP"), they are supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA and EBITDA attributable to PBFX provides useful information to investors in assessing our financial condition and results of operations. EBITDA, EBITDA attributable to PBFX and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA, EBITDA attributable to PBFX and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities.
We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, as it provides investors with an enhanced perspective of the operating performance of our assets and the cash our business is generating. EBITDA, EBITDA attributable to PBFX and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
|
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||||||
|
Three Months Ended |
Nine Months Ended | |||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||
|
Revenue: (a) |
||||||||||||||||
|
Affiliate |
$ |
43,842 |
$ |
37,082 |
$ |
118,356 |
$ |
104,796 |
||||||||
|
Third-Party |
4,591 |
— |
7,285 |
— |
||||||||||||
|
Total revenue |
48,433 |
37,082 |
125,641 |
104,796 |
||||||||||||
|
Costs and expenses: |
||||||||||||||||
|
Operating and maintenance expenses (a) |
12,814 |
4,963 |
26,555 |
18,165 |
||||||||||||
|
General and administrative expenses |
4,419 |
3,007 |
13,893 |
9,798 |
||||||||||||
|
Depreciation and amortization expense |
5,140 |
1,649 |
8,922 |
4,919 |
||||||||||||
|
Total costs and expenses |
22,373 |
9,619 |
49,370 |
32,882 |
||||||||||||
|
Income from operations |
26,060 |
27,463 |
76,271 |
71,914 |
||||||||||||
|
Other expense: |
||||||||||||||||
|
Interest expense, net |
(7,280) |
(6,757) |
(21,298) |
(13,174) |
||||||||||||
|
Amortization of loan fees |
(416) |
(423) |
(1,261) |
(891) |
||||||||||||
|
Net income |
18,364 |
20,283 |
53,712 |
57,849 |
||||||||||||
|
Less: Net (loss) income attributable to Predecessor |
(4,131) |
— |
(4,131) |
1,274 |
||||||||||||
|
Less: Net income attributable to noncontrolling interest |
1,621 |
— |
1,621 |
— |
||||||||||||
|
Net income attributable to the Partnership |
$ |
20,874 |
$ |
20,283 |
$ |
56,222 |
$ |
56,575 |
||||||||
|
Net income per limited partner unit: |
||||||||||||||||
|
Common units - basic |
$ |
0.50 |
$ |
0.59 |
$ |
1.44 |
$ |
1.68 |
||||||||
|
Common units - diluted |
0.50 |
0.59 |
1.44 |
1.68 |
||||||||||||
|
Subordinated units - basic and diluted |
0.50 |
0.59 |
1.45 |
1.68 |
||||||||||||
|
Weighted-average limited partner units outstanding: |
||||||||||||||||
|
Common units - basic |
23,492,796 |
18,455,575 |
21,094,154 |
17,784,133 |
||||||||||||
|
Common units - diluted |
23,571,691 |
18,455,575 |
21,103,919 |
17,784,133 |
||||||||||||
|
Subordinated units - basic and diluted |
15,886,553 |
15,886,553 |
15,886,553 |
15,886,553 |
||||||||||||
|
Cash distributions declared per unit |
$ |
0.44 |
$ |
0.39 |
$ |
1.29 |
$ |
1.11 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
|
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||
|
Three Months Ended September 30, 2016 | ||||||||||||
|
PBF Logistics LP |
Torrance Valley Pipeline Company LLC |
Consolidated Results | ||||||||||
|
Revenue: |
||||||||||||
|
Affiliate |
$ |
43,842 |
$ |
— |
$ |
43,842 |
||||||
|
Third-party |
4,591 |
— |
4,591 |
|||||||||
|
Total revenue |
48,433 |
— |
48,433 |
|||||||||
|
Costs and expenses: |
||||||||||||
|
Operating and maintenance expenses |
10,818 |
1,996 |
12,814 |
|||||||||
|
General and administrative expenses |
4,066 |
353 |
4,419 |
|||||||||
|
Depreciation and amortization |
3,358 |
1,782 |
5,140 |
|||||||||
|
Total costs and expenses |
18,242 |
4,131 |
22,373 |
|||||||||
|
Income (loss) from operations |
30,191 |
(4,131) |
26,060 |
|||||||||
|
Other expense: |
||||||||||||
|
Interest expense, net |
(7,280) |
— |
(7,280) |
|||||||||
|
Amortization of loan fees |
(416) |
— |
(416) |
|||||||||
|
Net income (loss) |
22,495 |
(4,131) |
18,364 |
|||||||||
|
Less: Net loss attributable to Predecessor |
— |
(4,131) |
(4,131) |
|||||||||
|
Less: Net income attributable to noncontrolling interest |
1,621 |
— |
1,621 |
|||||||||
|
Net income attributable to the Partnership |
$ |
20,874 |
$ |
— |
$ |
20,874 |
||||||
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
|
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||
|
Nine Months Ended September 30, 2016 | ||||||||||||
|
PBF Logistics LP |
Torrance Valley Pipeline Company LLC |
Consolidated Results | ||||||||||
|
Revenue: |
||||||||||||
|
Affiliate |
$ |
118,356 |
$ |
— |
$ |
118,356 |
||||||
|
Third-party |
7,285 |
— |
7,285 |
|||||||||
|
Total revenue |
125,641 |
— |
125,641 |
|||||||||
|
Costs and expenses: |
||||||||||||
|
Operating and maintenance expenses |
24,559 |
1,996 |
26,555 |
|||||||||
|
General and administrative expenses |
13,540 |
353 |
13,893 |
|||||||||
|
Depreciation and amortization |
7,140 |
1,782 |
8,922 |
|||||||||
|
Total costs and expenses |
45,239 |
4,131 |
49,370 |
|||||||||
|
Income (loss) from operations |
80,402 |
(4,131) |
76,271 |
|||||||||
|
Other expense: |
||||||||||||
|
Interest expense, net |
(21,298) |
— |
(21,298) |
|||||||||
|
Amortization of loan fees |
(1,261) |
— |
(1,261) |
|||||||||
|
Net income (loss) |
57,843 |
(4,131) |
53,712 |
|||||||||
|
Less: Net loss attributable to Predecessor |
— |
(4,131) |
(4,131) |
|||||||||
|
Less: Net income attributable to noncontrolling interest |
1,621 |
— |
1,621 |
|||||||||
|
Net income attributable to the Partnership |
$ |
56,222 |
$ |
— |
$ |
56,222 |
||||||
|
PBF LOGISTICS LP | |||||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | |||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | |||||||||||||||||||||
|
Three Months Ended |
Nine Months Ended | ||||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||
|
Transportation and Terminaling Segment |
|||||||||||||||||||||
|
Terminals |
|||||||||||||||||||||
|
Total throughput (bpd) (b)(d) |
154,466 |
88,044 |
158,789 |
110,192 |
|||||||||||||||||
|
Lease tank capacity (average lease capacity barrels per month) |
2,036,599 |
N/A |
2,045,556 |
N/A |
|||||||||||||||||
|
Pipelines |
|||||||||||||||||||||
|
Total throughput (bpd) (b)(d) |
130,063 |
38,844 |
128,434 |
45,401 |
|||||||||||||||||
|
Lease tank capacity (average lease capacity barrels per month) |
1,475,619 |
N/A |
1,475,619 |
N/A |
|||||||||||||||||
|
Storage Segment |
|||||||||||||||||||||
|
Storage capacity reserved (average shell capacity barrels per month) |
3,654,916 |
3,545,620 |
3,628,037 |
3,570,929 |
|||||||||||||||||
|
Cash Flow Information: |
|||||||||||||||||||||
|
Net cash provided by (used in): |
|||||||||||||||||||||
|
Operating activities |
$ |
25,776 |
$ |
25,401 |
$ |
68,619 |
$ |
63,389 |
|||||||||||||
|
Investing activities |
73,528 |
(964) |
71,250 |
(485) |
|||||||||||||||||
|
Financing activities |
(104,916) |
(12,861) |
(114,276) |
(58,833) |
|||||||||||||||||
|
Net change in cash |
$ |
(5,612) |
$ |
11,576 |
$ |
25,593 |
$ |
4,071 |
|||||||||||||
|
Other Financial Information: |
|||||||||||||||||||||
|
EBITDA attributable to PBFX (c) |
$ |
31,482 |
$ |
29,112 |
$ |
85,475 |
$ |
75,296 |
|||||||||||||
|
Distributable cash flow (c) |
$ |
25,073 |
$ |
22,208 |
$ |
66,558 |
$ |
63,575 |
|||||||||||||
|
Quarterly distribution declared per unit (e) |
$ |
0.44 |
$ |
0.39 |
$ |
1.29 |
$ |
1.11 |
|||||||||||||
|
Distribution: (e) |
|||||||||||||||||||||
|
Common units - public |
$ |
10,489 |
$ |
6,376 |
$ |
27,029 |
$ |
18,149 |
|||||||||||||
|
Common units - PBF LLC |
1,132 |
1,003 |
3,319 |
2,856 |
|||||||||||||||||
|
Subordinated units - PBF LLC |
6,990 |
6,196 |
20,493 |
17,634 |
|||||||||||||||||
|
IDR holder - PBF LLC |
1,125 |
354 |
2,765 |
535 |
|||||||||||||||||
|
Total distribution |
$ |
19,736 |
$ |
13,929 |
$ |
53,606 |
$ |
39,174 |
|||||||||||||
|
Coverage ratio (c) |
1.27x |
1.59x |
1.24x |
1.62x |
|||||||||||||||||
|
Capital expenditures (f) |
$ |
2,625 |
$ |
962 |
$ |
103,027 |
$ |
1,182 |
|||||||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||||
|
PBF LOGISTICS LP | |||||||||
|
EARNINGS RELEASE TABLES | |||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | |||||||||
|
(Unaudited, amounts in thousands except as indicated) | |||||||||
|
September 30, |
December 31, | ||||||||
|
Balance Sheet Information: |
2016 |
2015 | |||||||
|
Cash, cash equivalents and marketable securities (g) |
$ |
104,262 |
$ |
252,936 |
|||||
|
Property, plant and equipment, net |
592,851 |
145,548 |
|||||||
|
Total assets |
735,414 |
422,902 |
|||||||
|
Total debt (g) |
571,258 |
599,635 |
|||||||
|
Total liabilities |
597,665 |
608,577 |
|||||||
|
Partners' equity |
(38,518) |
(185,675) |
|||||||
|
Noncontrolling interest (h) |
176,267 |
— |
|||||||
|
Total liabilities and equity |
735,414 |
422,902 |
|||||||
|
See Footnotes to Earnings Release Tables | |||||||||
|
PBF LOGISTICS LP | ||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||||
|
TO EBITDA AND DISTRIBUTABLE CASH FLOW | ||||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||||
|
Three Months Ended |
Nine Months Ended | |||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||
|
Reconciliation of net income to EBITDA and |
||||||||||||||||||
|
Net income |
$ |
18,364 |
$ |
20,283 |
$ |
53,712 |
$ |
57,849 |
||||||||||
|
Interest expense, net |
7,280 |
6,757 |
21,298 |
13,174 |
||||||||||||||
|
Amortization of loan fees |
416 |
423 |
1,261 |
891 |
||||||||||||||
|
Depreciation and amortization |
5,140 |
1,649 |
8,922 |
4,919 |
||||||||||||||
|
EBITDA |
31,200 |
29,112 |
85,193 |
76,833 |
||||||||||||||
|
Less: Predecessor EBITDA |
(2,349) |
— |
(2,349) |
1,537 |
||||||||||||||
|
Less: Noncontrolling interest EBITDA (h) |
2,067 |
— |
2,067 |
— |
||||||||||||||
|
EBITDA attributable to PBFX |
31,482 |
29,112 |
85,475 |
75,296 |
||||||||||||||
|
Non-cash unit-based compensation expense |
963 |
815 |
3,673 |
2,428 |
||||||||||||||
|
Interest expense, net |
(7,280) |
(6,757) |
(21,298) |
(13,187) |
||||||||||||||
|
Maintenance capital expenditures |
(92) |
(962) |
(1,292) |
(962) |
||||||||||||||
|
Distributable cash flow |
$ |
25,073 |
$ |
22,208 |
$ |
66,558 |
$ |
63,575 |
||||||||||
|
Reconciliation of net cash provided by operating |
||||||||||||||||||
|
Net cash provided by operating activities |
$ |
25,776 |
$ |
25,401 |
$ |
68,619 |
$ |
63,389 |
||||||||||
|
Change in current assets and liabilities |
(893) |
(2,231) |
(1,051) |
2,698 |
||||||||||||||
|
Interest expense, net |
7,280 |
6,757 |
21,298 |
13,174 |
||||||||||||||
|
Non-cash unit-based compensation expense |
(963) |
(815) |
(3,673) |
(2,428) |
||||||||||||||
|
EBITDA |
31,200 |
29,112 |
85,193 |
76,833 |
||||||||||||||
|
Less: Predecessor EBITDA |
(2,349) |
— |
(2,349) |
1,537 |
||||||||||||||
|
Less: Noncontrolling interest EBITDA (h) |
2,067 |
— |
2,067 |
— |
||||||||||||||
|
EBITDA attributable to PBFX |
31,482 |
29,112 |
85,475 |
75,296 |
||||||||||||||
|
Non-cash unit-based compensation expense |
963 |
815 |
3,673 |
2,428 |
||||||||||||||
|
Interest expense, net |
(7,280) |
(6,757) |
(21,298) |
(13,187) |
||||||||||||||
|
Maintenance capital expenditures |
(92) |
(962) |
(1,292) |
(962) |
||||||||||||||
|
Distributable cash flow |
$ |
25,073 |
$ |
22,208 |
$ |
66,558 |
$ |
63,575 |
||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||
|
Three Months Ended September 30, 2016 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Revenues (a) |
$ |
42,951 |
$ |
5,482 |
$ |
— |
$ |
48,433 |
||||||||
|
Depreciation and amortization expense |
4,545 |
595 |
— |
5,140 |
||||||||||||
|
Income (loss) from operations |
28,144 |
2,335 |
(4,419) |
26,060 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
7,696 |
7,696 |
||||||||||||
|
Capital expenditures |
2,533 |
92 |
— |
2,625 |
||||||||||||
|
Three Months Ended September 30, 2015 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Revenues (a) |
$ |
31,764 |
$ |
5,318 |
$ |
— |
$ |
37,082 |
||||||||
|
Depreciation and amortization expense |
980 |
669 |
— |
1,649 |
||||||||||||
|
Income (loss) from operations |
27,715 |
2,755 |
(3,007) |
27,463 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
7,180 |
7,180 |
||||||||||||
|
Capital expenditures |
5 |
957 |
— |
962 |
||||||||||||
|
Nine Months Ended September 30, 2016 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Revenues (a) |
$ |
109,315 |
$ |
16,326 |
$ |
— |
$ |
125,641 |
||||||||
|
Depreciation and amortization expense |
7,092 |
1,830 |
— |
8,922 |
||||||||||||
|
Income (loss) from operations |
82,414 |
7,750 |
(13,893) |
76,271 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
22,559 |
22,559 |
||||||||||||
|
Capital expenditures (f) |
101,735 |
1,292 |
— |
103,027 |
||||||||||||
|
Nine Months Ended September 30, 2015 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Revenues (a) |
$ |
88,727 |
$ |
16,069 |
$ |
— |
$ |
104,796 |
||||||||
|
Depreciation and amortization expense |
2,964 |
1,955 |
— |
4,919 |
||||||||||||
|
Income (loss) from operations |
73,138 |
8,574 |
(9,798) |
71,914 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
14,065 |
14,065 |
||||||||||||
|
Capital expenditures |
225 |
957 |
— |
1,182 |
||||||||||||
|
Balance at September 30, 2016 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Total assets |
$ |
575,443 |
$ |
56,564 |
$ |
103,407 |
$ |
735,414 |
||||||||
|
Balance at December 31, 2015 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Total assets |
$ |
112,826 |
$ |
56,846 |
$ |
253,230 |
$ |
422,902 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF LOGISTICS LP | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
|
(Unaudited, in thousands, except per unit data) | |||||||||||
|
(a) |
See discussion of the factors affecting comparability noted on page 4. Our results of operations may not be comparable to the historical results of operations for the reasons described below: | ||||||||||
|
(b) |
Calculated as the sum of the average throughput per day for each Terminal and Pipeline asset for the periods presented. | ||||||||||
|
(c) |
See "Non-GAAP Financial Measures" on page 5 for definitions of EBITDA, EBITDA attributable to PBFX, distributable cash flow and coverage ratio. | ||||||||||
|
(d) |
Operating information pertains to assets which are included in the Transportation and Terminaling segment. Throughput information reflects activity subsequent to execution of the commercial agreements in connection with the acquisition of the Torrance Valley Pipeline and the Delaware City Products Pipeline and Truck Rack from PBF and activity subsequent to the Plains Asset Purchase, with the exception of the Delaware City Products Pipeline which recognized revenue prior to our acquisition. | ||||||||||
|
(e) |
On October 28, 2016, we announced a quarterly cash distribution of $0.44 per common unit for the third quarter of 2016. | ||||||||||
|
(f) |
Capital expenditures include the Plains Asset Purchase of $98,373 for the nine months ended September 30, 2016. | ||||||||||
|
(g) |
Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents and marketable securities from total debt. We believe this measurement is also useful to investors since our marketable securities fully collateralize our Term Loan and 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. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of September 30, 2016 and December 31, 2015 was $466,996 and $346,699, respectively. | ||||||||||
|
(h) |
Our subsidiary, PBFX Op Co, holds a 50% controlling interest in TVPC, with the other 50% interest in TVPC owned by TVP Holding, an indirect subsidiary of PBF Holding. PBFX Op Co is also the sole managing member of TVPC. We, through our ownership of PBFX Op Co, consolidate the financial results of TVPC, and record a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the consolidated statements of operations includes the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated balance sheets includes the portion of net assets of TVPC attributable to TVP Holding. | ||||||||||
Logo - http://photos.prnewswire.com/prnh/20160527/373093LOGO
SOURCE PBF Logistics LP
Article Date
10/28/2016PBF Logistics Announces Appointment of CFO Erik Young to General Partner's Board
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Oct. 28, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") announced today the appointment of Charles Erik Young to the Board of Directors of its general partner, PBF Logistics GP LLC ("PBFX GP"), effective October 27, 2016. Mr. Young has served as the Senior Vice President and Chief Financial Officer of PBF Energy Inc. ("PBF Energy") and PBFX GP since April 2014.
"Erik's appointment to the PBFX GP Board reflects his significant contributions to the growth and success of the Partnership since its initial public offering in 2014, which has included four successful dropdowns, the most recent of which was the 50% interest in Torrance Valley Pipeline Company LLC," said PBF Energy and PBF Logistics Chairman and CEO Thomas Nimbley. "He has demonstrated financial and business leadership for the Partnership and will be a valuable asset to the PBFX GP Board, bringing significant corporate finance experience, from strategic planning to mergers and acquisitions across a variety of industries and end markets."
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including the Annual Report on Form 10-K. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Logo - http://photos.prnewswire.com/prnh/20160527/373093LOGO
SOURCE PBF Logistics LP
Article Date
10/28/2016PBF Logistics to Release Third Quarter 2016 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Sept. 21, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that it will release its earnings results for the third quarter 2016 on Friday, October 28, 2016. The company will host a conference call and webcast regarding third quarter results and other business matters on Friday, October 28, 2016, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be heard by dialing (888) 632-3384 or (785) 424-1675, conference ID: PBFXQ316. The audio replay will be available two hours after the end of the call through November 13, 2016, by dialing (800) 283-4595 or (402) 220-0873.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Logo - http://photos.prnewswire.com/prnh/20160527/373093LOGO
SOURCE PBF Logistics LP
Article Date
9/21/2016PBF Energy to Release Third Quarter 2016 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Sept. 21, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that it will release its earnings results for the third quarter 2016 on Friday, October 28, 2016. The company will host a conference call and webcast regarding third quarter results and other business matters on Friday, October 28, 2016, at 8:30 a.m. ET.
The call is being webcast and can be accessed at PBF Energy's website, http://www.pbfenergy.com. The call can also be heard by dialing (888) 632-3384 or (785) 424-1675, conference ID: PBFQ316. The audio replay will be available two hours after the end of the call through November 13, 2016, by dialing (800) 283-8183 or (402) 220-0867.
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 45% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
Logo - http://photos.prnewswire.com/prnh/20160527/373092LOGO
SOURCE PBF Energy Inc.
Article Date
9/21/2016PBF Logistics LP Announces Exercise of Option to purchase Additional Units
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Sept. 12, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX, the "Partnership") announced today that the underwriter of its previously announced registered underwritten public offering of 4,000,000 common units representing limited partner interests has exercised its option to purchase an additional 375,000 common units. Total gross proceeds (before underwriter's discounts and commissions) for the full 4,375,000 common units will be approximately $88 million.
The Partnership used a portion of the proceeds from the offering to fund part of the purchase price for its recently completed acquisition, from an affiliate of PBF Energy Inc., of a 50 percent interest in the Torrance Valley Pipeline Company LLC. The remaining proceeds will be used for general partnership purposes.
Deutsche Bank Securities is the underwriter of the offering. The offering of these securities is being made by means of a prospectus supplement and the accompanying prospectus only, copies of which may be obtained, when available, from Deutsche Bank Securities Inc., Attention: Prospectus Group, 60 Wall Street, New York, New York 10005-2836, by e-mail to prospectus.cpdg@db.com, or by telephone at (800) 503-4611.
These documents may also be obtained free of charge when they are available from the SEC's website at www.sec.gov.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities described herein, nor shall there be any sale of these securities, in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offering will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the offering not closing, the securities markets generally, the impact of adverse market conditions impacting the Partnership's logistics and other assets, the possibility that the Partnership may not enter into or consummate the proposed acquisition, the Partnership's plans for financing the proposed acquisition, and other risks inherent in the Partnership's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see the Partnership's filings with the SEC including its most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016 and June 30, 2016. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy (NYSE:PBF) to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Logo - http://photos.prnewswire.com/prnh/20160527/373093LOGO
SOURCE PBF Logistics LP
Article Date
9/12/2016PBF Logistics Completes Acquisition of Torrance Valley Pipeline Interest
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Sept. 1, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") announced today that it acquired a 50 percent interest in Torrance Valley Pipeline Company LLC (the "TVPC") from an affiliate of PBF Energy Inc. (NYSE: PBF) for a total consideration of approximately $175.0 million in cash. The acquisition was financed with cash on hand, borrowings under its revolving credit facility and proceeds from a successful public offering of common units completed in August.
Based on anticipated ownership percentage, current cost structure, increased fees payable by PBF under the transportation services agreement and the expected minimum throughput rates, the acquired interests of TVPC would be expected to generate estimated annual net income to the Partnership of approximately $9.4 million from revenues of approximately $38.5 million and operating income of $11.0 million and estimated earnings before interest, taxes, depreciation and amortization of approximately $20.0 million. Annual maintenance capital expenditures for the Partnership's acquired interest would be expected to average approximately $1.5 million.
PBFX and PBF Energy Chief Executive Officer Thomas Nimbley said, "The acquisition of the Torrance Valley Pipeline interests demonstrates PBFX's ongoing commitment to deliver sustained growth and diversify our earnings base with high-quality assets." Mr. Nimbley continued, "PBF Energy shareholders also benefit from this transaction as PBF Energy has received additional cash, representing approximately one third of PBF Energy's acquisition price for the Torrance refinery and its logistics assets, to strengthen its balance sheet in anticipation of future opportunities."
TVPC owns the 189-mile San Joaquin Valley Pipeline system with a throughput capacity of approximately 110,000 barrels per day. The system, segregated into two parts, Northern and Southern portions, is comprised of the M55, M1 and M70 pipelines which are the primary crude gathering and transportation lines that supply PBF Energy's Torrance refinery. The assets also include 11 pipeline stations with approximately one million barrels of combined tankage and truck unloading capability at two of the stations. The Partnership has entered into a ten-year term transportation services agreement with a subsidiary of PBF Energy containing minimum volume throughput commitments ("MVCs") of approximately 50,000 barrels per day for the Northern logistics system and MVCs of approximately 70,000 barrels per day for the Southern logistics system and the usage of certain tanks.
The terms of the transaction were approved by the Conflicts Committee of the Board of Directors of the general partner of PBF Logistics. The Conflicts Committee is composed of independent directors and was advised by Piper, Jaffray & Co., its financial advisor, and Vinson & Elkins LLP, its legal counsel.
Non-GAAP Measures
PBF Logistics LP Reconciliation of amounts under US GAAP to Forecasted EBITDA (unaudited, in millions)
|
Reconciliation of fifty percent TVPC acquired interest estimated | |
|
Estimated net income |
$9.4 |
|
Add: Depreciation and amortization expense |
9.0 |
|
Add: Interest expense, net and other financing costs |
__1.6 |
|
Estimated EBITDA |
$20.0 |
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA should not be considered an alternative to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. Due to the forward-looking nature of forecasted EBITDA, information to reconcile forecasted EBITDA to forecasted cash flow from operating activities is not available as management is unable to project working capital changes for future periods at this time.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Forward-Looking Statements
Disclosures in this press release contain "forward-looking statements." All statements, other than statements of historical facts, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the risk that the anticipated benefits to the Partnership from the transaction cannot be fully realized, including the accretion expected to be realized by the Partnership as a result of the acquisition and the expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of the Partnership and its subsidiaries. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports filed by the Partnership with the Securities and Exchange Commission. Any forward-looking statement applies only as of the date on which such statement is made and the Partnership does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Logo - http://photos.prnewswire.com/prnh/20160527/373093LOGO
SOURCE PBF Logistics LP
Article Date
9/1/2016PBF Energy to Participate in the Barclays CEO Energy-Power Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Aug. 30, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will participate in the Barclays CEO Energy-Power Conference on September 7, 2016. The company's presentation will be available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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 45% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
Logo - http://photos.prnewswire.com/prnh/20160527/373092LOGO
SOURCE PBF Energy Inc.
Article Date
8/30/2016PBF Logistics to attend Citi MLP/Midstream Infrastructure Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Aug. 15, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that the partnership's management will be meeting with investors and industry analysts on August 17, 2016, at the Citi MLP/Midstream Infrastructure Conference in Las Vegas, NV.
The partnership's meeting materials will be available on the Investor Relations section of the PBF Logistics LP website at www.pbflogistics.com.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Logo - http://photos.prnewswire.com/prnh/20160527/373093LOGO
SOURCE PBF Logistics LP
Article Date
8/15/20168/12/2016 - PBF Logistics LP Prices Public Offering of 4,000,000 Common Units Representing Limited Partner Interests
PBF Logistics LP Prices Public Offering of 4,000,000 Common Units Representing Limited Partner Interests
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Aug. 12, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") announced today that its previously announced registered underwritten public offering of 4,000,000 common units representing limited partner interests has been priced for total gross proceeds of approximately $80,600,000. The underwriter has offered the common units at prevailing market prices or otherwise from time to time through the New York Stock Exchange, in the over-the-counter-market or through negotiated transactions. The underwriter has a 30-day option to purchase up to 600,000 additional common units. The offering is expected to close on August 17, 2016, subject to customary closing conditions.
The Partnership expects to use the net proceeds from this offering to fund a portion of the purchase price for its proposed acquisition from an affiliate of PBF Energy Inc. of a 50 percent interest in the Torrance Valley Pipeline Company LLC, and, pending such use, to reduce indebtedness outstanding under its revolving credit facility and for general partnership purposes. If the Partnership does not enter into and consummate such transaction, the Partnership intends to use the net proceeds from this offering for general partnership purposes, including to reduce indebtedness outstanding under its revolving credit facility. The offering is not conditioned on the entry into or the closing of the acquisition.
Deutsche Bank Securities is the underwriter of the Offering. The offering of these securities is being made by means of a prospectus supplement and the accompanying prospectus only, copies of which may be obtained, when available, from Deutsche Bank Securities Inc., Attention: Prospectus Group, 60 Wall Street, New York, New York 10005-2836, by e-mail to prospectus.cpdg@db.com, or by telephone at (800) 503-4611.
These documents may also be obtained free of charge when they are available from the SEC's website at www.sec.gov.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities described herein, nor shall there be any sale of these securities, in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offering will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the offering not closing, the securities markets generally, the impact of adverse market conditions impacting the Partnership's logistics and other assets, the possibility that the Partnership may not enter into or consummate the proposed acquisition, the Partnership's plans for financing the proposed acquisition, and other risks inherent in the Partnership's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see the Partnership's filings with the SEC including its most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016 and June 30, 2016. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy (NYSE: PBF) to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Logo - http://photos.prnewswire.com/prnh/20160527/373093LOGO
SOURCE PBF Logistics LP
Article Date
8/12/2016PBF Logistics Announces Intent to Acquire Torrance Valley Pipeline Interest
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Aug. 11, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX, the "Partnership") announced today that it has entered into a letter of intent to acquire a 50 percent interest in Torrance Valley Pipeline Company LLC (the "TVPC") from an affiliate of PBF Energy Inc. (NYSE:PBF) for a total consideration of approximately $175.0 million in cash. The letter of intent sets forth the terms and conditions under which PBF Energy intends to and would be willing to enter into mutually acceptable definitive agreements containing material terms consistent with those described in this release. The Partnership and PBF Energy currently anticipate executing definitive agreements within the next 30 days and closing the acquisition in the third quarter of 2016, subject to customary closing conditions. The acquisition is conditioned on the parties' ability to negotiate and execute definitive transaction documents as well as to satisfy any required closing conditions. The acquisition is expected to be financed through a combination of cash on hand, borrowings from the Partnership's senior secured revolving credit facility and the proceeds of PBFX's equity offering which was announced today.
PBFX and PBF Energy Chief Executive Officer Thomas Nimbley said, "The potential acquisition of a 50 percent interest in the Torrance Valley Pipeline Company reflects PBFX's ongoing commitment to deliver sustained growth to our unit holders and diversify our earnings base with high-quality assets." Mr. Nimbley continued, "PBF shareholders would also be expected to benefit from this transaction as PBF Energy would receive additional cash, representing approximately one third of the PBF Energy's acquisition price for the Torrance refinery and its logistics assets, to strengthen its balance sheet in anticipation of future opportunities."
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.
Pursuant to the letter of intent, upon closing, the Partnership would enter into ten-year term transportation services agreements with subsidiaries of PBF Energy containing minimum volume throughput commitments ("MVCs") of approximately 50,000 barrels per day for the M1 and M55 pipelines; MVCs of approximately 70,000 barrels per day for the M70 pipeline and for storage capacity at certain tanks representing approximately 50 percent of the total available shell capacity of the storage facilities. Based on anticipated ownership percentage, current cost structure, increased fees payable by PBF under the services agreement and the expected minimum throughput rates, the acquired interests of TVPC would be expected to generate, over the twelve month period subsequent to closing the proposed acquisition, estimated annual net income of approximately $9.4 million based on revenues of approximately $38.5 million and operating income of $11.0 million and estimated earnings before interest, taxes, depreciation and amortization of approximately $20.0 million. Annual maintenance capital expenditures for the Partnership's acquired interest would be expected to average approximately $1.5 million.
The terms of the potential transaction are being reviewed by the Conflicts Committee of the Board of Directors of the general partner of PBF Logistics. The Conflicts Committee is composed of independent directors and was advised by Piper, Jaffray & Co., its financial advisor, and Vinson & Elkins LLP, its legal counsel.
|
Non-GAAP Measures | |
|
PBF Logistics LP Reconciliation of amounts under US GAAP to Forecasted EBITDA (unaudited, in millions) | |
|
Reconciliation of fifty percent TVPC acquired interest estimated | |
|
Net Income to estimated EBITDA: | |
|
Estimated net income |
$9.4 |
|
Add: Depreciation and amortization expense |
9.0 |
|
Add: Interest expense, net and other financing costs |
1.6 |
|
Estimated EBITDA |
$20.0 |
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA should not be considered an alternative to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. Due to the forward-looking nature of forecasted EBITDA, information to reconcile forecasted EBITDA to forecasted cash flow from operating activities is not available as management is unable to project working capital changes for future periods at this time.
About PBF Logistics LP
PBF Logistics LP (NYSE:PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Forward-Looking Statements
Disclosures in this press release contain "forward-looking statements." All statements, other than statements of historical facts, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the risk that the Partnership may not enter into or consummate the potential acquisition of the Torrance Valley Pipeline interest held by an affiliate of PBF Energy, the risk that the potential acquisition is consummated but that the anticipated benefits to the Partnership from the transaction cannot be fully realized, including the accretion expected to be realized by the Partnership as a result of the potential acquisition and the expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of the Partnership and its subsidiaries. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports filed by the Partnership with the Securities and Exchange Commission. Any forward-looking statement applies only as of the date on which such statement is made and the Partnership does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
Logo - http://photos.prnewswire.com/prnh/20160527/373093LOGO
Logo - http://photos.prnewswire.com/prnh/20160527/373092LOGO
SOURCE PBF Logistics LP
Article Date
8/11/20168/11/2016 - PBF Logistics LP Announces Public Offering of Common Units Representing Limited Partner Interests
PBF Logistics LP Announces Public Offering of Common Units Representing Limited Partner Interests
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Aug. 11, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX, the "Partnership") announced the commencement of a registered underwritten public offering of 4,000,000 common units representing limited partner interests in the Partnership pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission (the "SEC"). The underwriter will be granted a 30-day option to purchase up to 600,000 additional common units.
The Partnership plans to use the net proceeds from this offering to fund a portion of the purchase price for its proposed acquisition from an affiliate of PBF Energy Inc. of a 50 percent interest in the Torrance Valley Pipeline Company LLC, and, pending such use, to reduce indebtedness outstanding under its revolving credit facility and for general partnership purposes. If the Partnership does not enter into and consummate such transaction, the Partnership intends to use the net proceeds from this offering for general partnership purposes, including to reduce indebtedness outstanding under its revolving credit facility. The offering is not conditioned on the entry into or the closing of the acquisition.
Deutsche Bank Securities is the underwriter of the Offering. The offering of these securities is being made by means of a prospectus supplement and the accompanying prospectus only, copies of which may be obtained from Deutsche Bank Securities Inc., Attention: Prospectus Group, 60 Wall Street, New York, New York 10005-2836, by e-mail to prospectus.cpdg@db.com, or by telephone at (800) 503-4611.
These documents may also be obtained free of charge when they are available from the SEC's website at www.sec.gov.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities described herein, nor shall there be any sale of these securities, in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offering will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting the Partnership's logistics and other assets, the possibility that the Partnership may not enter into or consummate the potential acquisition, the Partnership's plans for financing the potential acquisition, , and other risks inherent in the Partnership's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see the Partnership's filings with the SEC including its most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2016 and June 30, 2016. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Logo - http://photos.prnewswire.com/prnh/20160527/373093LOGO
SOURCE PBF Logistics LP
Article Date
8/11/2016PBF Logistics Increases Quarterly Distribution to $0.43 per Common Unit and Announces Second Quarter 2016 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., July 29, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX, the "Partnership") announced today second quarter 2016 net income of $16.3 million, or $0.41 per common unit. During the second quarter, the Partnership generated cash from operations of approximately $17.0 million, earnings before interest, income taxes, depreciation, and amortization ("EBITDA") of $26.0 million and distributable cash flow of $20.0 million. Included in our general and administrative expenses for the second quarter are $3.5 million, or $0.10 per common unit, of transaction expenses related to the acquisition of four refined products terminals (the "East Coast Terminals") from an affiliate of Plains All American Pipeline L.P. and expenses related to unit-based compensation in conjunction with a senior executive retirement.
"During the second quarter our assets performed well and, with the completion of the East Coast Terminals acquisition in April, we increased our asset base and introduced third-party revenue to our growing business. The integration of the East Coast Terminals into our legacy East Coast assets went well and we have commenced the necessary infrastructure investments to expand the East Coast Terminals and generate additional revenue," said PBF Logistics GP LLC Chief Executive Officer, Tom Nimbley. "We are pleased that the board of directors has approved an increase in our quarterly distribution to $0.43 per common unit. We look forward to continuing to execute our growth strategy for the Partnership and create additional value for our unitholders."
As of June 30, 2016, the Partnership had approximately $315 million of liquidity, including $49.9 million in cash and cash equivalents and access to approximately $265 million under its existing revolving credit facility. The Partnership intends to use its financial resources to fund organic growth projects at the Partnership and future drop-down and third-party acquisitions.
PBF Logistics Announces Increased Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.43 per common unit. The distribution is payable on August 23, 2016, to unitholders of record at the close of business on August 9, 2016.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
This earnings release, and the discussion during the management conference call, may include references to non-GAAP financial measures including, but not limited to, EBITDA and distributable cash flow. PBFX's management believes that non-GAAP financial measures provide useful information about the Partnership's operating performance, financial results and the amount of cash generated by the Partnership's operations and the amount available for distribution to its unitholders. 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. PBFX'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 financial measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
The Partnership's senior management will host a conference call and webcast regarding quarterly results and other business matters on Friday, July 29, 2016, at 11:00 a.m. ET. The call can also be heard by dialing (888) 632-3381 or (785) 424-1678, conference ID: PBFXQ216. The audio replay will be available two hours after the end of the call through August 14, 2016, by dialing (800) 753-5575 or (402) 220-0683. The call is being webcast and can be accessed on the Partnership's website, http://www.pbflogistics.com.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including the Annual Report on Form 10-K. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present our results of operations, related operational information, and a reconciliations of net income and net cash provided by operating activity to EBITDA and distributable cash flows (both as defined below) of PBFX for the three and six months ended June 30, 2016 and 2015. The financial information presented contains the financial results of PBFX and the Delaware City Products Pipeline and Truck Rack prior to its acquisition by PBFX on May 14, 2015. The Delaware City Products Pipeline and Truck Rack include a products pipeline (the "Delaware City Products Pipeline"), truck rack and related facilities located at PBF Energy's Delaware city refinery. The Delaware City Products Pipeline and Truck Rack were acquired from subsidiaries of our indirect parent company, PBF Energy Inc. ("PBF Energy"). The results of the Delaware City Products Pipeline and Truck Rack are included in the Transportation and Terminaling segment.
The Delaware City Products Pipeline was the only asset that recorded revenue for transactions with PBF Energy prior to our acquisition of the Delaware City Products Pipeline and Truck Rack from PBF Energy Company LLC ("PBF LLC"). Affiliate revenues have been recorded for the Delaware City Products Pipeline and Truck Rack subsequent to the commencement of the commercial agreements with PBF Energy.
On April 29, 2016, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC ("PLPT"), purchased four refined product terminals (the "East Coast Terminals"), including a storage facility to service the East Coast Terminals, from an affiliate of Plains All American Pipeline, L.P. (the "Plains Asset Purchase") which has subsequently generated third party revenues. Prior to the Plains Asset Purchase, we did not record third-party revenue, except for third party revenue generated by the Delaware Pipeline Company ("DPC") from charging fees for transporting refined products pursuant to an agreement with Morgan Stanley Capital Group Inc. prior to August 2013. Additionally, our results may not be comparable due to additional revenue, operating and maintenance expense and general and administrative expense associated with the East Coast Terminals.
As a result of the factors above, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before interest expense, income tax expense, depreciation and amortization expense. We define distributable cash flow as EBITDA plus non-cash unit-based compensation expense, less net cash paid for interest, maintenance capital expenditures and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is distributable cash flow divided by total distribution declared. Distributable cash flow and EBITDA are not financial measures prescribed by U.S. generally accepted accounting principles ("GAAP").
While EBITDA and distributable cash flow are not financial measures prescribed by U.S. GAAP ("non-GAAP"), they are supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities.
We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, as it provides investors with an enhanced perspective of the operating performance of our assets and the cash our business is generating. EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
|
PBF LOGISTICS LP | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
|
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
|
Revenue: |
||||||||||||||||||||
|
Affiliates |
$ |
37,965 |
$ |
34,868 |
$ |
74,514 |
$ |
67,713 |
||||||||||||
|
Third-Party |
2,694 |
— |
2,694 |
— |
||||||||||||||||
|
Total revenue |
40,659 |
34,868 |
77,208 |
67,713 |
||||||||||||||||
|
Costs and expenses: |
||||||||||||||||||||
|
Operating and maintenance expenses |
7,720 |
4,768 |
13,741 |
13,202 |
||||||||||||||||
|
General and administrative expenses |
6,909 |
3,729 |
9,474 |
6,791 |
||||||||||||||||
|
Depreciation and amortization expense |
2,142 |
1,637 |
3,782 |
3,270 |
||||||||||||||||
|
Total costs and expenses |
16,771 |
10,134 |
26,997 |
23,263 |
||||||||||||||||
|
Income from operations |
23,888 |
24,734 |
50,211 |
44,450 |
||||||||||||||||
|
Other expense: |
||||||||||||||||||||
|
Interest expense, net |
(7,212) |
(4,624) |
(14,018) |
(6,418) |
||||||||||||||||
|
Amortization of loan fees |
(422) |
(306) |
(845) |
(467) |
||||||||||||||||
|
Net income |
16,254 |
19,804 |
35,348 |
37,565 |
||||||||||||||||
|
Less: Net income attributable to Predecessor |
— |
221 |
— |
1,274 |
||||||||||||||||
|
Net income attributable to the Partnership |
$ |
16,254 |
$ |
19,583 |
$ |
35,348 |
$ |
36,291 |
||||||||||||
|
Net income per limited partner unit: |
||||||||||||||||||||
|
Common units - basic |
$ |
0.41 |
$ |
0.58 |
$ |
0.94 |
$ |
1.09 |
||||||||||||
|
Common units - diluted |
0.41 |
0.58 |
0.94 |
1.09 |
||||||||||||||||
|
Subordinated units - basic and diluted |
0.41 |
0.58 |
0.95 |
1.09 |
||||||||||||||||
|
Weighted-average limited partner units outstanding: |
||||||||||||||||||||
|
Common units - basic |
21,248,969 |
17,776,831 |
19,873,294 |
17,442,561 |
||||||||||||||||
|
Common units - diluted |
21,264,690 |
17,801,429 |
19,881,339 |
17,455,155 |
||||||||||||||||
|
Subordinated units - basic and diluted |
15,886,553 |
15,886,553 |
15,886,553 |
15,886,553 |
||||||||||||||||
|
Cash distributions declared per unit |
$ |
0.43 |
$ |
0.37 |
$ |
0.85 |
$ |
0.72 |
||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
|
Key Operating Information: |
||||||||||||||||||||
|
Throughput (barrels per day ("bpd")) (c) |
||||||||||||||||||||
|
DCR Rail Terminal |
41.7 |
47.5 |
36.0 |
48.1 | ||||||||||||||||
|
DCR West Rack |
9.9 |
11.4 |
10.4 |
24.2 | ||||||||||||||||
|
Toledo Truck Terminal |
18.8 |
13.7 |
17.6 |
10.0 | ||||||||||||||||
|
Toledo Storage Facility (Propane Loading) |
5.4 |
4.2 |
5.0 |
4.2 | ||||||||||||||||
|
Delaware City Products Pipeline |
60.4 |
49.3 |
48.2 |
48.7 | ||||||||||||||||
|
Delaware City Truck Rack |
34.4 |
36.4 |
32.3 |
36.4 | ||||||||||||||||
|
East Coast Terminals |
61.6 |
N/A |
61.6 |
N/A | ||||||||||||||||
|
Total throughput (barrels) |
||||||||||||||||||||
|
DCR Rail Terminal |
3,797.6 |
4,324.6 |
6,547.2 |
8,714.7 | ||||||||||||||||
|
DCR West Rack |
896.6 |
1,033.9 |
1,887.7 |
4,379.8 | ||||||||||||||||
|
Toledo Truck Terminal |
1,706.3 |
1,245.0 |
3,201.8 |
1,812.6 | ||||||||||||||||
|
Toledo Storage Facility (Propane Loading) |
489.6 |
385.4 |
910.6 |
757.2 | ||||||||||||||||
|
Delaware City Products Pipeline |
5,495.9 |
4,489.3 |
8,776.1 |
8,820.9 | ||||||||||||||||
|
Delaware City Truck Rack |
3,128.8 |
1,712.1 |
5,883.3 |
1,712.1 | ||||||||||||||||
|
East Coast Terminals |
3,821.4 |
N/A |
3,821.4 |
N/A | ||||||||||||||||
|
Total |
19,336.2 |
13,190.3 |
31,028.1 |
26,197.3 | ||||||||||||||||
|
Storage capacity reserved (average shell capacity barrels |
||||||||||||||||||||
|
Toledo Storage Facility |
3,574.6 |
3,484.7 |
3,614.6 |
3,583.6 | ||||||||||||||||
|
Cash Flow Information: |
||||||||||||||||||||
|
Net cash provided by (used in): |
||||||||||||||||||||
|
Operating activities |
$ |
16,998 |
$ |
20,089 |
$ |
42,843 |
$ |
37,988 | ||||||||||||
|
Investing activities |
(1,699) |
551 |
(2,278) |
479 | ||||||||||||||||
|
Financing activities |
5,320 |
(34,159) |
(9,360) |
(45,972) | ||||||||||||||||
|
Net change in cash |
$ |
20,619 |
$ |
(13,519) |
$ |
31,205 |
$ |
(7,505) | ||||||||||||
|
Other Financial Information: |
||||||||||||||||||||
|
EBITDA attributable to PBFX (b) |
$ |
26,030 |
$ |
26,063 |
$ |
53,993 |
$ |
46,183 | ||||||||||||
|
Distributable cash flow (b) |
$ |
20,038 |
$ |
22,119 |
$ |
41,485 |
$ |
41,365 | ||||||||||||
|
Quarterly distribution declared per unit (e) |
$ |
0.43 |
$ |
0.37 |
$ |
0.85 |
$ |
0.72 | ||||||||||||
|
Distribution: (e) |
||||||||||||||||||||
|
Common units - public |
$ |
8,366 |
$ |
6,049 |
$ |
16,536 |
$ |
11,773 | ||||||||||||
|
Common units - PBF LLC |
1,106 |
952 |
2,187 |
1,853 | ||||||||||||||||
|
Subordinated units - PBF LLC |
6,831 |
5,878 |
13,503 |
11,438 | ||||||||||||||||
|
IDR holder - PBF LLC |
882 |
151 |
1,639 |
181 | ||||||||||||||||
|
Total distribution |
$ |
17,185 |
$ |
13,030 |
$ |
33,865 |
$ |
25,245 | ||||||||||||
|
Coverage ratio (b) |
1.17x |
1.70x |
1.23x |
1.64x | ||||||||||||||||
|
Capital expenditures (f) |
$ |
99,963 |
$ |
144 |
$ |
100,402 |
$ |
220 | ||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||
|
June 30, |
December 31, | |||||||||||
|
Balance Sheet Information: |
2016 |
2015 | ||||||||||
|
Cash, cash equivalents and marketable securities (g) |
$ |
186,027 |
$ |
252,936 |
||||||||
|
Property, plant and equipment, net |
243,188 |
145,548 |
||||||||||
|
Total assets |
458,582 |
422,902 |
||||||||||
|
Total debt (g) |
570,842 |
599,635 |
||||||||||
|
Total liabilities |
586,595 |
608,577 |
||||||||||
|
Partners' equity |
(128,013) |
(185,675) |
||||||||||
|
Total liabilities and equity |
458,582 |
422,902 |
||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
PBF LOGISTICS LP | |||||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||
|
TO EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, | ||||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||
|
Reconciliation of net income to EBITDA and distributable cash |
|||||||||||||||||||||
|
Net income |
$ |
16,254 |
$ |
19,804 |
$ |
35,348 |
$ |
37,565 |
|||||||||||||
|
Interest expense, net |
7,212 |
4,624 |
14,018 |
6,418 |
|||||||||||||||||
|
Amortization of loan fees |
422 |
306 |
845 |
467 |
|||||||||||||||||
|
Depreciation and amortization |
2,142 |
1,637 |
3,782 |
3,270 |
|||||||||||||||||
|
EBITDA |
26,030 |
26,371 |
53,993 |
47,720 |
|||||||||||||||||
|
Less: Predecessor EBITDA |
— |
308 |
— |
1,537 |
|||||||||||||||||
|
EBITDA attributable to PBFX |
26,030 |
26,063 |
53,993 |
46,183 |
|||||||||||||||||
|
Non-cash unit-based compensation expense |
1,981 |
683 |
2,710 |
1,613 |
|||||||||||||||||
|
Interest expense, net |
(7,212) |
(4,627) |
(14,018) |
(6,431) |
|||||||||||||||||
|
Maintenance capital expenditures |
(761) |
— |
(1,200) |
— |
|||||||||||||||||
|
Distributable cash flow |
$ |
20,038 |
$ |
22,119 |
$ |
41,485 |
$ |
41,365 |
|||||||||||||
|
Reconciliation of net cash provided by operating activities to |
|||||||||||||||||||||
|
Net cash provided by operating activities |
$ |
16,998 |
$ |
20,089 |
$ |
42,843 |
$ |
37,988 |
|||||||||||||
|
Change in current assets and liabilities |
3,801 |
2,341 |
(158) |
4,927 |
|||||||||||||||||
|
Interest expense, net |
7,212 |
4,624 |
14,018 |
6,418 |
|||||||||||||||||
|
Non-cash unit-based compensation expense |
(1,981) |
(683) |
(2,710) |
(1,613) |
|||||||||||||||||
|
EBITDA |
26,030 |
26,371 |
53,993 |
47,720 |
|||||||||||||||||
|
Less: Predecessor EBITDA |
— |
308 |
— |
1,537 |
|||||||||||||||||
|
EBITDA attributable to PBFX |
26,030 |
26,063 |
53,993 |
46,183 |
|||||||||||||||||
|
Non-cash unit-based compensation expense |
1,981 |
683 |
2,710 |
1,613 |
|||||||||||||||||
|
Interest expense, net |
(7,212) |
(4,627) |
(14,018) |
(6,431) |
|||||||||||||||||
|
Maintenance capital expenditures |
(761) |
— |
(1,200) |
— |
|||||||||||||||||
|
Distributable cash flow |
$ |
20,038 |
$ |
22,119 |
$ |
41,485 |
$ |
41,365 |
|||||||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||
|
Three Months Ended June 30, 2016 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Revenues (a) |
$ |
35,297 |
$ |
5,362 |
$ |
— |
$ |
40,659 |
||||||||
|
Depreciation and amortization expense |
1,556 |
586 |
— |
2,142 |
||||||||||||
|
Income (loss) from operations |
28,323 |
2,474 |
(6,909) |
23,888 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
7,634 |
7,634 |
||||||||||||
|
Capital expenditures (f) |
99,202 |
761 |
— |
99,963 |
||||||||||||
|
Three Months Ended June 30, 2015 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Revenues (a) |
$ |
29,642 |
$ |
5,226 |
$ |
— |
$ |
34,868 |
||||||||
|
Depreciation and amortization expense |
993 |
644 |
— |
1,637 |
||||||||||||
|
Income (loss) from operations |
25,620 |
2,843 |
(3,729) |
24,734 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
4,930 |
4,930 |
||||||||||||
|
Capital expenditures |
144 |
— |
— |
144 |
||||||||||||
|
Six Months Ended June 30, 2016 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Revenues (a) |
$ |
66,364 |
$ |
10,844 |
$ |
— |
$ |
77,208 |
||||||||
|
Depreciation and amortization expense |
2,547 |
1,235 |
— |
3,782 |
||||||||||||
|
Income (loss) from operations |
54,270 |
5,415 |
(9,474) |
50,211 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
14,863 |
14,863 |
||||||||||||
|
Capital expenditures (f) |
99,202 |
1,200 |
— |
100,402 |
||||||||||||
|
Six Months Ended June 30, 2015 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Revenues (a) |
$ |
56,962 |
$ |
10,751 |
$ |
— |
$ |
67,713 |
||||||||
|
Depreciation and amortization expense |
1,984 |
1,286 |
— |
3,270 |
||||||||||||
|
Income (loss) from operations |
45,422 |
5,819 |
(6,791) |
44,450 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
6,885 |
6,885 |
||||||||||||
|
Capital expenditures |
220 |
— |
— |
220 |
||||||||||||
|
Balance at June 30, 2016 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Total assets |
$ |
214,721 |
$ |
57,209 |
$ |
186,652 |
$ |
458,582 |
||||||||
|
Balance at December 31, 2015 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Total assets |
$ |
112,826 |
$ |
56,846 |
$ |
253,230 |
$ |
422,902 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF LOGISTICS LP | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
|
(Unaudited, in thousands, except per unit data) | |||||||||||
|
(a) |
See discussion of the factors affecting comparability noted on page 3. The Partnership's results of operations may not be comparable to the historical results of operations for the reasons described below: | ||||||||||
|
(b) |
See "Non-GAAP Financial Measures" on page 3 for definitions of EBITDA, distributable cash flow and coverage ratio | ||||||||||
|
(c) |
Operating information pertains to assets which are included in the Transportation and Terminaling segment. Throughput information reflects activity subsequent to execution of the commercial agreements in connection with the acquisition of the Delaware City Products Pipeline and Truck Rack from PBF, with the exception of the Delaware City Products Pipeline which recognized revenue prior to its acquisition by PBFX and activity subsequent to the Plains Asset Purchase | ||||||||||
|
(d) |
Operating information pertains to assets which are included in the Storage segment | ||||||||||
|
(e) |
On July 29, 2016, we announced a quarterly cash distribution of $0.43 per common unit for the second quarter of 2016 | ||||||||||
|
(f) |
Capital expenditures include the Plains Asset Purchase of $98,336 | ||||||||||
|
(g) |
Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents and marketable securities from total debt. We believe this measurement is also useful to investors since our marketable securities fully collateralize our Term Loan and 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. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. The Partnership's net debt as of June 30, 2016 and December 31, 2015 was $384,815 and $346,699, respectively | ||||||||||
SOURCE PBF Logistics LP
Article Date
7/29/2016PBF Energy Reports Second Quarter 2016 Results, Declares Dividend of $0.30 Per Share
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., July 29, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) today reported a second quarter 2016 income from operations of $234.8 million as compared to income from operations of $273.8 million for the second quarter of 2015. Excluding special items, second quarter 2016 income from operations was $77.0 million as compared to income from operations of $167.8 million for the second quarter of 2015. Special items in the second quarter 2016 results include a net, non-cash, after-tax gain of $95.3 million, or $0.92 per share, lower-of-cost-or-market ("LCM") inventory adjustment which increased operating income. Additionally, included in our results were net after-tax charges totaling approximately $5.9 million, or $0.06 per share, related to acquisition expenses and accelerated equity-based compensation expense.
The company reported second quarter 2016 net income of $120.6 million, and net income attributable to PBF Energy Inc. of $103.5 million or $1.06 per share. This compares to net income of $158.5 million, and net income attributable to PBF Energy Inc. of $135.8 million or $1.57 per share for the second quarter 2015. Adjusted fully-converted net income for the second quarter 2016, excluding special items, was $13.9 million, or $0.14 per share on a fully exchanged, fully diluted basis, as described below, compared to adjusted fully-converted net income of $80.5 million, or $0.88 per share, for the second quarter 2015. PBF Energy's financial results reflect the consolidation of PBF Logistics LP (NYSE: PBFX), a master limited partnership of which PBF indirectly owns the general partner and approximately 49.4% of the limited partner interests as of quarter-end.
Tom Nimbley, PBF Energy's CEO, said, "Our refineries ran better than last quarter, generating positive results as the East Coast returned to profitability. Our margins were negatively impacted by several factors, including narrower light/heavy crude differentials and a 35% increase in the flat price of crude versus the first quarter. These factors contributed to lower realized margins due to increased input costs and higher relative losses on our low-value products across our system. In addition, rising RIN expenses and persistent above-average inventory levels weighed on product margins."
Mr. Nimbley continued, "Looking forward, seasonal demand remains strong but inventory levels could continue to pressure refining margins in the third quarter. The crude market continues to be well-supplied and feedstock differentials are showing signs of improvement." Mr. Nimbley concluded, "Despite the recent market volatility, we are excited about the increased diversification of our system with the addition of Torrance. We have grown our business significantly over the past twelve months and increased the earnings potential of our company."
Previously announced Torrance Refinery acquisition
On July 1, 2016, PBF announced that its subsidiary had closed its previously announced acquisition of the 155,000 barrel per day Torrance refinery, and related logistics assets, from ExxonMobil. The purchase price for the assets was $537.5 million, plus initial working capital of approximately $460.9 million which is subject to final valuation within ninety days of closing. The estimated working capital expenditures include existing feedstock, intermediate and finished product inventories as well as certain environmental credits. The Company expects the net working capital related to the Torrance Acquisition to ultimately be less than the working capital acquisition price as the pre-paid inventory and credits are cycled through its normal operations in the coming months.
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 23, 2016, to holders of record as of August 9, 2016.
Outlook
For the third quarter 2016, we expect East Coast total throughput to average 300,000 to 320,000 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 155,000 to 165,000 barrels per day and West Coast total throughput is expected to average 145,000 to 155,000 barrels per day.
For the full-year 2016, we expect East Coast total throughput to average 310,000 to 330,000 barrels per day; Mid-Continent total throughput is expected to average 150,000 to 160,000 barrels per day; Gulf Coast total throughput is expected to average 160,000 to 170,000 barrels per day and West Coast total throughput is expected to average 145,000 to 155,000 barrels per day.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income, Adjusted Fully-Converted Net Income per fully-exchanged, fully-diluted share, gross refining margin, gross refining margin per barrel of throughput, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization), Adjusted EBITDA and projected EBITDA related to the refinery acquisitions. PBF believes that non-GAAP financial measures provide useful information about its operating performance and financial results. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBF's non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the non-GAAP measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
PBF Energy's senior management will host a conference call and webcast regarding quarterly results and other business matters on Friday, July 29, 2016, at 8:30 a.m. ET. The call is being webcast and can be accessed at PBF Energy's website, http://www.pbfenergy.com. The call can also be heard by dialing (888) 632-3384 or (785) 424-1675, conference ID: PBFQ216. The audio replay will be available two hours after the end of the call through August 14, 2016, by dialing (800) 723-0389 or (402) 220-2647.
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 49.4% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
|
(Unaudited, in thousands, except share and per share data) | ||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||
|
June 30, |
June 30, | |||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
|
Revenues |
$ |
3,858,467 |
$ |
3,550,664 |
$ |
6,658,652 |
$ |
6,545,800 |
||||||||||||
|
Costs and expenses: |
||||||||||||||||||||
|
Cost of sales, excluding depreciation |
3,249,444 |
2,994,745 |
5,661,539 |
5,496,960 |
||||||||||||||||
|
Operating expenses, excluding depreciation |
276,598 |
194,970 |
576,597 |
432,088 |
||||||||||||||||
|
General and administrative expenses |
43,373 |
39,223 |
80,955 |
75,269 |
||||||||||||||||
|
Loss (gain) on sale of assets |
3,222 |
(632) |
3,222 |
(991) |
||||||||||||||||
|
Depreciation and amortization expense |
51,060 |
48,562 |
106,993 |
96,268 |
||||||||||||||||
|
3,623,697 |
3,276,868 |
6,429,306 |
6,099,594 |
|||||||||||||||||
|
Income from operations |
234,770 |
273,796 |
229,346 |
446,206 |
||||||||||||||||
|
Other (expenses) income: |
||||||||||||||||||||
|
Change in fair value of catalyst leases |
(1,748) |
1,949 |
(4,633) |
3,988 |
||||||||||||||||
|
Interest expense, net |
(35,940) |
(26,876) |
(73,467) |
(49,068) |
||||||||||||||||
|
Income before income taxes |
197,082 |
248,869 |
151,246 |
401,126 |
||||||||||||||||
|
Income tax expense |
76,434 |
90,409 |
53,934 |
139,547 |
||||||||||||||||
|
Net income |
120,648 |
158,460 |
97,312 |
261,579 |
||||||||||||||||
|
Less: net income attributable to noncontrolling interests |
17,118 |
22,650 |
23,170 |
38,447 |
||||||||||||||||
|
Net income attributable to PBF Energy Inc. |
$ |
103,530 |
$ |
135,810 |
$ |
74,142 |
$ |
223,132 |
||||||||||||
|
Net income available to Class A common stock per share: |
||||||||||||||||||||
|
Basic |
$ |
1.06 |
$ |
1.58 |
$ |
0.76 |
$ |
2.62 |
||||||||||||
|
Diluted |
$ |
1.06 |
$ |
1.57 |
$ |
0.76 |
$ |
2.57 |
||||||||||||
|
Weighted-average shares outstanding-basic |
97,836,366 |
86,036,809 |
97,822,875 |
85,175,066 |
||||||||||||||||
|
Weighted-average shares outstanding-diluted |
103,278,622 |
91,659,906 |
103,364,478 |
91,665,081 |
||||||||||||||||
|
Dividends per common share |
$ |
0.30 |
$ |
0.30 |
$ |
0.60 |
$ |
0.60 |
||||||||||||
|
Adjusted fully-converted net income and adjusted |
||||||||||||||||||||
|
Adjusted fully-converted net income |
$ |
109,207 |
$ |
143,842 |
$ |
78,345 |
$ |
235,822 |
||||||||||||
|
Adjusted fully-converted net income per fully exchanged, fully diluted share |
$ |
1.06 |
$ |
1.57 |
$ |
0.76 |
$ |
2.57 |
||||||||||||
|
Adjusted fully-converted shares outstanding - diluted |
103,278,622 |
91,659,906 |
103,364,478 |
91,655,081 |
||||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||||||||
|
(Unaudited, in thousands, except share and per share data) | ||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||||
|
RECONCILIATION OF NET INCOME TO |
June 30, |
June 30, | ||||||||||||||||||||
|
ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) |
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||
|
Net income attributable to PBF Energy Inc. |
$ |
103,530 |
$ |
135,810 |
$ |
74,142 |
$ |
223,132 |
||||||||||||||
|
Add: |
Net income attributable to the noncontrolling interest |
9,399 |
13,432 |
6,958 |
21,220 |
|||||||||||||||||
|
Less: |
Income tax (expense) benefit (Note 3) |
(3,722) |
(5,400) |
(2,755) |
(8,530) |
|||||||||||||||||
|
Adjusted fully-converted net income |
$ |
109,207 |
$ |
143,842 |
$ |
78,345 |
$ |
235,822 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Less: |
Net non-cash LCM inventory adjustment (Note 5) |
(157,780) |
(105,958) |
(216,843) |
(127,166) |
|||||||||||||||||
|
Add: |
Recomputed income taxes on special items (Note 5) |
62,516 |
42,595 |
85,870 |
51,121 |
|||||||||||||||||
|
Adjusted fully-converted net income (loss) excluding |
$ |
13,943 |
$ |
80,479 |
$ |
(52,628) |
$ |
159,777 |
||||||||||||||
|
Diluted weighted-average shares outstanding of PBF |
97,836,366 |
86,036,809 |
97,822,875 |
85,175,066 |
||||||||||||||||||
|
Conversion of PBF LLC Series A Units (Note 7) |
4,947,813 |
5,129,114 |
4,952,115 |
5,980,462 |
||||||||||||||||||
|
Common stock equivalents (Note 6) |
494,443 |
493,983 |
589,488 |
499,553 |
||||||||||||||||||
|
Fully-converted shares outstanding - diluted |
103,278,622 |
91,659,906 |
103,364,478 |
91,655,081 |
||||||||||||||||||
|
Adjusted fully-converted net income (per fully exchanged, |
$ |
1.06 |
$ |
1.57 |
$ |
0.76 |
$ |
2.57 |
||||||||||||||
|
Adjusted fully-converted net income (loss) excluding |
$ |
0.14 |
$ |
0.88 |
$ |
(0.51) |
$ |
1.74 |
||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||||
|
RECONCILIATION OF INCOME FROM OPERATIONS |
June 30, |
June 30, | ||||||||||||||||||||
|
TO INCOME FROM OPERATIONS EXCLUDING |
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||
|
Income from operations |
$ |
234,770 |
$ |
273,796 |
$ |
229,346 |
$ |
446,206 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: |
Net non-cash LCM inventory adjustment (Note 5) |
(157,780) |
(105,958) |
(216,843) |
(127,166) |
|||||||||||||||||
|
Income from operations excluding special items (Note 4) |
$ |
76,990 |
$ |
167,838 |
$ |
12,503 |
$ |
319,040 |
||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||||||||
|
EBITDA RECONCILIATIONS (Note 8) | ||||||||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||||
|
June 30, |
June 30, | |||||||||||||||||||||
|
RECONCILIATION OF NET INCOME TO EBITDA |
2016 |
2015 |
2016 |
2015 | ||||||||||||||||||
|
Net income |
$ |
120,648 |
$ |
158,460 |
$ |
97,312 |
$ |
261,579 |
||||||||||||||
|
Add: |
Depreciation and amortization expense |
51,060 |
48,562 |
106,993 |
96,268 |
|||||||||||||||||
|
Add: |
Interest expense, net |
35,940 |
26,876 |
73,467 |
49,068 |
|||||||||||||||||
|
Add: |
Income tax expense |
76,434 |
90,409 |
53,934 |
139,547 |
|||||||||||||||||
|
EBITDA |
$ |
284,082 |
$ |
324,307 |
$ |
331,706 |
$ |
546,462 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Less: |
Net non-cash LCM inventory adjustment (Note 5) |
(157,780) |
(105,958) |
(216,843) |
(127,166) |
|||||||||||||||||
|
EBITDA excluding special items (Note 4) |
$ |
126,302 |
$ |
218,349 |
$ |
114,863 |
$ |
419,296 |
||||||||||||||
|
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA |
||||||||||||||||||||||
|
EBITDA |
$ |
284,082 |
$ |
324,307 |
$ |
331,706 |
$ |
546,462 |
||||||||||||||
|
Add: |
Stock based compensation |
9,359 |
2,439 |
12,709 |
5,394 |
|||||||||||||||||
|
Add: |
Net non-cash change in fair value of catalyst leases |
1,748 |
(1,949) |
4,633 |
(3,988) |
|||||||||||||||||
|
Less: |
Non-cash LCM inventory adjustment (Note 5) |
(157,780) |
(105,958) |
(216,843) |
(127,166) |
|||||||||||||||||
|
Adjusted EBITDA |
$ |
137,409 |
$ |
218,839 |
$ |
132,205 |
$ |
420,702 |
||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||||||||
|
(Unaudited, in thousands) | |||||||||||
|
June 30, |
December 31, | ||||||||||
|
2016 |
2015 | ||||||||||
|
Cash, cash equivalents and marketable securities |
$ |
1,549,079 |
$ |
1,178,578 |
|||||||
|
Inventories |
1,308,536 |
1,174,272 |
|||||||||
|
Total assets |
6,988,050 |
6,105,124 |
|||||||||
|
Total debt |
2,363,712 |
1,840,355 |
|||||||||
|
Total equity |
$ |
2,175,856 |
$ |
2,095,857 |
|||||||
|
Total equity excluding special items (Note 4) |
$ |
2,712,143 |
$ |
2,763,118 |
|||||||
|
Total debt to capitalization ratio (Note 15) |
52 |
% |
47 |
% | |||||||
|
Total debt to capitalization ratio, excluding special items (Note 15) |
47 |
% |
40 |
% | |||||||
|
Net debt to capitalization ratio (Note 15) |
27 |
% |
24 |
% | |||||||
|
Net debt to capitalization ratio, excluding special items (Note 15) |
23 |
% |
19 |
% | |||||||
|
SUMMARIZED STATEMENT OF CASH FLOW DATA | |||||||||||
|
(Unaudited, in thousands) | |||||||||||
|
Six Months Ended June 30, | |||||||||||
|
2016 |
2015 | ||||||||||
|
Cash flows provided by operations |
$ |
216,134 |
$ |
317,675 |
|||||||
|
Cash flows used in investing activities |
(235,757) |
(113,575) |
|||||||||
|
Cash flows provided by financing activities |
488,238 |
21,849 |
|||||||||
|
Net increase in cash and cash equivalents |
468,615 |
225,949 |
|||||||||
|
Cash and cash equivalents, beginning of period |
944,320 |
397,873 |
|||||||||
|
Cash and cash equivalents, end of period |
$ |
1,412,935 |
$ |
623,822 |
|||||||
|
Marketable securities |
136,144 |
234,249 |
|||||||||
|
Net cash, cash equivalents and marketable securities |
$ |
1,549,079 |
$ |
858,071 |
|||||||
|
See Footnotes to Earnings Release Tables | |||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||
|
CONSOLIDATING FINANCIAL INFORMATION (Note 9) | |||||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||||
|
Three Months Ended June 30, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
3,855,773 |
$ |
40,659 |
$ |
— |
$ |
(37,965) |
$ |
3,858,467 |
|||||||||
|
Depreciation and amortization |
47,540 |
2,142 |
1,378 |
51,060 |
|||||||||||||||
|
Income (loss) from operations |
248,724 |
23,888 |
(37,842) |
— |
234,770 |
||||||||||||||
|
Interest expense, net |
1,142 |
7,634 |
27,164 |
— |
35,940 |
||||||||||||||
|
Capital expenditures (Note 14) |
$ |
88,480 |
$ |
99,963 |
$ |
6,559 |
$ |
— |
$ |
195,002 |
|||||||||
|
Three Months Ended June 30, 2015 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
3,550,664 |
$ |
34,868 |
$ |
— |
$ |
(34,868) |
$ |
3,550,664 |
|||||||||
|
Depreciation and amortization |
44,421 |
1,637 |
2,504 |
— |
48,562 |
||||||||||||||
|
Income (loss) from operations |
287,442 |
24,734 |
(38,380) |
— |
273,796 |
||||||||||||||
|
Interest expense, net |
4,575 |
4,930 |
17,371 |
— |
26,876 |
||||||||||||||
|
Capital expenditures |
$ |
126,107 |
$ |
144 |
$ |
425 |
$ |
— |
$ |
126,676 |
|||||||||
|
Six Months Ended June 30, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
6,655,958 |
$ |
77,208 |
$ |
— |
$ |
(74,514) |
$ |
6,658,652 |
|||||||||
|
Depreciation and amortization |
100,136 |
3,782 |
3,075 |
— |
106,993 |
||||||||||||||
|
Income (loss) from operations |
253,691 |
50,211 |
(74,556) |
— |
229,346 |
||||||||||||||
|
Interest expense, net |
2,114 |
14,863 |
56,490 |
— |
73,467 |
||||||||||||||
|
Capital expenditures (Note 14) |
228,080 |
100,402 |
12,259 |
— |
340,741 |
||||||||||||||
|
Six Months Ended June 30, 2015 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
6,545,800 |
$ |
67,713 |
$ |
— |
$ |
(67,713) |
$ |
6,545,800 |
|||||||||
|
Depreciation and amortization |
87,451 |
3,270 |
5,547 |
— |
96,268 |
||||||||||||||
|
Income (loss) from operations |
476,081 |
44,450 |
(74,325) |
— |
446,206 |
||||||||||||||
|
Interest expense, net |
9,290 |
6,885 |
32,893 |
— |
49,068 |
||||||||||||||
|
Capital expenditures |
250,575 |
220 |
1,610 |
— |
252,405 |
||||||||||||||
|
Balance at June 30, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Total assets (Note 16) |
$ |
5,956,975 |
$ |
458,582 |
$ |
594,397 |
$ |
(21,904) |
$ |
6,988,050 |
|||||||||
|
Balance at December 31, 2015 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Total assets |
$ |
5,087,554 |
$ |
422,902 |
$ |
618,617 |
$ |
(23,949) |
$ |
6,105,124 |
|||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
MARKET INDICATORS AND KEY OPERATING INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||
|
June 30, |
June 30, | |||||||||||||||||||
|
Market Indicators (dollars per barrel) (Note 10) |
2016 |
2015 |
2016 |
2015 | ||||||||||||||||
|
Dated Brent Crude |
$ |
45.65 |
$ |
62.01 |
$ |
40.08 |
$ |
58.21 |
||||||||||||
|
West Texas Intermediate (WTI) crude oil |
$ |
45.53 |
$ |
57.85 |
$ |
39.64 |
$ |
53.25 |
||||||||||||
|
Light Louisiana Sweet (LLS) crude oil |
$ |
47.39 |
$ |
62.93 |
$ |
41.51 |
$ |
57.97 |
||||||||||||
|
Crack Spreads: |
||||||||||||||||||||
|
Dated Brent (NYH) 2-1-1 |
$ |
15.32 |
$ |
19.83 |
$ |
13.30 |
$ |
17.83 |
||||||||||||
|
WTI (Chicago) 4-3-1 |
$ |
16.51 |
$ |
20.57 |
$ |
12.77 |
$ |
18.05 |
||||||||||||
|
LLS (Gulf Coast) 2-1-1 |
$ |
10.76 |
$ |
15.01 |
$ |
9.76 |
$ |
14.32 |
||||||||||||
|
Crude Oil Differentials: |
||||||||||||||||||||
|
Dated Brent (foreign) less WTI |
$ |
0.11 |
$ |
4.16 |
$ |
0.44 |
$ |
4.97 |
||||||||||||
|
Dated Brent less Maya (heavy, sour) |
$ |
7.83 |
$ |
6.70 |
$ |
7.94 |
$ |
8.39 |
||||||||||||
|
Dated Brent less WTS (sour) |
$ |
0.96 |
$ |
3.44 |
$ |
0.95 |
$ |
5.09 |
||||||||||||
|
Dated Brent less ASCI (sour) |
$ |
3.67 |
$ |
2.66 |
$ |
3.96 |
$ |
4.10 |
||||||||||||
|
WTI less WCS (heavy, sour) |
$ |
11.75 |
$ |
8.29 |
$ |
11.55 |
$ |
10.12 |
||||||||||||
|
WTI less Bakken (light, sweet) |
$ |
0.43 |
$ |
2.14 |
$ |
0.98 |
$ |
3.61 |
||||||||||||
|
WTI less Syncrude (light, sweet) |
$ |
(2.72) |
$ |
(4.02) |
$ |
(3.56) |
$ |
(2.27) |
||||||||||||
|
Natural gas (dollars per MMBTU) |
$ |
2.25 |
$ |
2.74 |
$ |
2.11 |
$ |
2.77 |
||||||||||||
|
Key Operating Information |
||||||||||||||||||||
|
Production (barrels per day (bpd) in thousands) |
702.7 |
492.6 |
678.0 |
472.5 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
698.1 |
491.1 |
674.0 |
479.5 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
63.5 |
44.7 |
122.7 |
86.8 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
4.56 |
$ |
7.15 |
$ |
2.68 |
$ |
6.17 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of |
$ |
6.50 |
$ |
9.35 |
$ |
5.77 |
$ |
9.93 |
||||||||||||
|
Refinery operating expense per barrel of throughput (Note 12) |
$ |
4.27 |
$ |
4.30 |
$ |
4.63 |
$ |
4.90 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13) |
||||||||||||||||||||
|
Heavy |
18 |
% |
13 |
% |
16 |
% |
14 |
% | ||||||||||||
|
Medium |
44 |
% |
48 |
% |
47 |
% |
47 |
% | ||||||||||||
|
Light |
27 |
% |
28 |
% |
25 |
% |
28 |
% | ||||||||||||
|
Other feedstocks and blends |
11 |
% |
11 |
% |
12 |
% |
11 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
47 |
% |
45 |
% |
48 |
% |
47 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
32 |
% |
36 |
% |
31 |
% |
36 |
% | ||||||||||||
|
Lubes |
1 |
% |
1 |
% |
1 |
% |
1 |
% | ||||||||||||
|
Chemicals |
4 |
% |
3 |
% |
4 |
% |
3 |
% | ||||||||||||
|
Other |
16 |
% |
15 |
% |
16 |
% |
13 |
% | ||||||||||||
|
Total yield |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||||||
|
June 30, |
June 30, | |||||||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||||||
|
Supplemental Operating Information - East Coast (Delaware City and Paulsboro) |
||||||||||||||||||||
|
Production (barrels per day (bpd) in thousands) |
347.3 |
348.6 |
328.5 |
328.1 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
351.7 |
349.0 |
333.9 |
337.4 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
32.0 |
31.8 |
60.8 |
61.1 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
3.95 |
$ |
5.14 |
$ |
1.14 |
$ |
3.17 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
6.68 |
$ |
8.26 |
$ |
5.54 |
$ |
8.58 |
||||||||||||
|
Refinery operating expense per barrel of throughput (Note 12) |
$ |
3.90 |
$ |
4.03 |
$ |
4.50 |
$ |
4.75 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Heavy |
17 |
% |
19 |
% |
13 |
% |
21 |
% | ||||||||||||
|
Medium |
56 |
% |
56 |
% |
61 |
% |
52 |
% | ||||||||||||
|
Light |
12 |
% |
10 |
% |
11 |
% |
13 |
% | ||||||||||||
|
Other feedstocks and blends |
15 |
% |
15 |
% |
15 |
% |
14 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
45 |
% |
44 |
% |
46 |
% |
46 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
31 |
% |
36 |
% |
29 |
% |
35 |
% | ||||||||||||
|
Lubes |
2 |
% |
2 |
% |
2 |
% |
2 |
% | ||||||||||||
|
Chemicals |
2 |
% |
2 |
% |
2 |
% |
2 |
% | ||||||||||||
|
Other |
18 |
% |
16 |
% |
19 |
% |
14 |
% | ||||||||||||
|
Total yield |
98 |
% |
100 |
% |
98 |
% |
99 |
% | ||||||||||||
|
Supplemental Operating Information - Mid-Continent (Toledo) |
||||||||||||||||||||
|
Production (bpd in thousands) |
176.0 |
144.0 |
168.0 |
144.4 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
174.2 |
142.1 |
165.9 |
142.1 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
15.8 |
12.9 |
30.2 |
25.7 |
||||||||||||||||
|
Gross margin per barrel of throughput |
$ |
4.31 |
$ |
9.57 |
$ |
2.41 |
$ |
11.00 |
||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
6.65 |
$ |
12.02 |
$ |
5.45 |
$ |
13.18 |
||||||||||||
|
Refinery operating expense per barrel of throughput (Note 12) |
$ |
4.02 |
$ |
4.97 |
$ |
4.45 |
$ |
5.26 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Medium |
32 |
% |
28 |
% |
36 |
% |
37 |
% | ||||||||||||
|
Light |
66 |
% |
70 |
% |
62 |
% |
61 |
% | ||||||||||||
|
Other feedstocks and blends |
2 |
% |
2 |
% |
2 |
% |
2 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
52 |
% |
49 |
% |
52 |
% |
50 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
33 |
% |
35 |
% |
35 |
% |
36 |
% | ||||||||||||
|
Chemicals |
5 |
% |
5 |
% |
5 |
% |
5 |
% | ||||||||||||
|
Other |
11 |
% |
12 |
% |
9 |
% |
10 |
% | ||||||||||||
|
Total yield |
101 |
% |
101 |
% |
101 |
% |
101 |
% | ||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||
|
Three Months Ended |
Six Months Ended | |||||||||||||||
|
June 30, |
June 30, | |||||||||||||||
|
2016 |
2015 |
2016 |
2015 | |||||||||||||
|
Supplemental Operating Information - Gulf Coast (Chalmette) |
||||||||||||||||
|
Production (bpd in thousands) |
179.4 |
N/A |
181.5 |
N/A | ||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
172.2 |
N/A |
174.2 |
N/A | ||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
15.7 |
N/A |
31.7 |
N/A | ||||||||||||
|
Gross margin per barrel of throughput |
$ |
3.65 |
N/A |
$ |
3.63 |
N/A | ||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
6.00 |
N/A |
$ |
6.54 |
N/A | ||||||||||
|
Refinery operating expense per barrel of throughput (Note 12) |
$ |
5.30 |
N/A |
$ |
5.05 |
N/A | ||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||
|
Heavy |
39 |
% |
N/A |
38 |
% |
N/A | ||||||||||
|
Medium |
31 |
% |
N/A |
30 |
% |
N/A | ||||||||||
|
Light |
17 |
% |
N/A |
17 |
% |
N/A | ||||||||||
|
Other feedstocks and blends |
13 |
% |
N/A |
15 |
% |
N/A | ||||||||||
|
Total throughput |
100 |
% |
N/A |
100 |
% |
N/A | ||||||||||
|
Yield (% of total throughput): |
||||||||||||||||
|
Gasoline and gasoline blendstocks |
47 |
% |
N/A |
47 |
% |
N/A | ||||||||||
|
Distillates and distillate blendstocks |
32 |
% |
N/A |
32 |
% |
N/A | ||||||||||
|
Chemicals |
6 |
% |
N/A |
6 |
% |
N/A | ||||||||||
|
Other |
15 |
% |
N/A |
15 |
% |
N/A | ||||||||||
|
Total yield |
100 |
% |
N/A |
100 |
% |
N/A | ||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||||||||
|
GROSS REFINING MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note 11) | ||||||||||||||||||||||
|
(Unaudited, in thousands, except per barrel amounts) | ||||||||||||||||||||||
|
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||
|
June 30, 2016 |
June 30, 2015 |
|||||||||||||||||||||
|
RECONCILIATION OF GROSS MARGIN TO GROSS |
$ |
per barrel of throughput |
$ |
per barrel of |
||||||||||||||||||
|
Gross margin |
$ |
289,944 |
$ |
4.56 |
$ |
319,258 |
$ |
7.15 |
||||||||||||||
|
Less: Revenues of PBFX |
(40,659) |
(0.64) |
(33,766) |
(0.76) |
||||||||||||||||||
|
Add: Affiliate cost of sales of PBFX |
2,661 |
0.04 |
1,536 |
0.03 |
||||||||||||||||||
|
Add: Refinery operating expenses |
271,539 |
4.27 |
192,150 |
4.30 |
||||||||||||||||||
|
Add: Refinery depreciation |
47,540 |
0.75 |
44,511 |
1.00 |
||||||||||||||||||
|
Gross refining margin |
$ |
571,025 |
$ |
8.98 |
$ |
523,689 |
$ |
11.72 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
(157,780) |
(2.48) |
(105,958) |
(2.37) |
||||||||||||||||||
|
Gross refining margin excluding special items (Note 4) |
$ |
413,245 |
$ |
6.50 |
$ |
417,731 |
$ |
9.35 |
||||||||||||||
|
Six Months Ended |
Six Months Ended |
|||||||||||||||||||||
|
June 30, 2016 |
June 30, 2015 |
|||||||||||||||||||||
|
RECONCILIATION OF GROSS MARGIN TO GROSS |
$ |
per barrel of |
$ |
per barrel of |
||||||||||||||||||
|
Gross margin |
$ |
328,799 |
$ |
2.68 |
$ |
535,585 |
$ |
6.17 |
||||||||||||||
|
Less: Revenues of PBFX |
(77,208) |
(0.63) |
(64,330) |
(0.74) |
||||||||||||||||||
|
Add: Affiliate cost of sales of PBFX |
5,322 |
0.04 |
5,276 |
0.06 |
||||||||||||||||||
|
Add: Refinery operating expenses |
568,178 |
4.63 |
425,527 |
4.90 |
||||||||||||||||||
|
Add: Refinery depreciation |
100,136 |
0.82 |
87,727 |
1.01 |
||||||||||||||||||
|
Gross refining margin |
$ |
925,227 |
$ |
7.54 |
$ |
989,785 |
$ |
11.40 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
(216,843) |
(1.77) |
(127,166) |
(1.47) |
||||||||||||||||||
|
Gross refining margin excluding special items (Note 4) |
$ |
708,384 |
$ |
5.77 |
$ |
862,619 |
$ |
9.93 |
||||||||||||||
|
See Footnotes to Earnings Release Tables |
||||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES
| ||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||
|
FOOTNOTES TO EARNINGS RELEASE TABLES | ||||||||||||||
|
(1) Adjusted fully-converted information is presented in this table as management believes that these Non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful to investors to compare the company's results across the periods presented and facilitates an understanding of the company's operating results. The company also uses these measures to evaluate its operating performance. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The differences between adjusted fully-converted and GAAP results are explained in footnotes 2 through 7. | ||||||||||||||
|
(2) Represents the elimination of the noncontrolling interest associated with the ownership by the members of PBF Energy Company LLC other than PBF Energy Inc., as if such members had fully exchanged their Series A Units for shares of PBF Energy's Class A common stock. | ||||||||||||||
|
(3) Represents an adjustment to reflect the Company's statutory corporate tax rate of approximately 39.6% for the 2016 periods and 40.2% for the 2015 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 2. | ||||||||||||||
|
(4) The non-GAAP measures presented include adjusted fully-converted net income excluding special items, income from continuing operations excluding special items, EBITDA excluding special items, and gross refining margin excluding special items. The special items for the periods presented relate to a lower of cost or market adjustment (LCM). 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. In addition, the special items shown in the 2015 balance sheet include changes in the tax receivable agreement liability reflecting a benefit attributable to changes in our obligation under the tax receivable agreement due to factors outside of our control such as changes in tax rates. Although we believe that non-GAAP financial measures excluding the impact of special items provide useful supplemental information to investors regarding the results and performance of our business and allow for more useful period-over-period comparisons, such non-GAAP measures should only be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP. | ||||||||||||||
|
(5) During the three months ended June 30, 2016, the Company recorded an adjustment to value its inventories to the lower of cost or market which resulted in a net pre-tax benefit of approximately $157.8 million reflecting the change in the lower of cost or market inventory reserve from $1,058.3 at March 31, 2016 to $900.5 at June 30, 2016. During the six months ended June 30, 2016, the Company recorded an adjustment to value its inventories to the lower of cost or market which resulted in a net pre-tax benefit of approximately $216.8 million reflecting the change in the lower of cost or market inventory reserve from $1,117.3 million at December 31, 2015 to $900.5 million at June 30, 2016.
During the three months ended June 30, 2015, the Company recorded an adjustment to value its inventories to the lower of cost or market which resulted in a net pre-tax benefit of approximately $106.0 million reflecting the change in the lower of cost or market inventory reserve from $668.9 at March 31, 2015 to $562.9 at June 30, 2015. During the six months ended June 30, 2015, the Company recorded an adjustment to value its inventories to the lower of cost or market which resulted in a net pre-tax benefit of approximately $127.2 million reflecting the change in the lower of cost or market inventory reserve from $690.1 million at December 31, 2014 to $562.9 million at June 30, 2015.
The impact of these LCM inventory adjustments are included in the Refining segment's operating income, but are excluded from the operating results presented in the table in order to make such information comparable between periods. Income taxes related to the net LCM adjustment were recalculated using the Company's statutory corporate tax rate of approximately 39.6% for both the three and six months ended June 30, 2016 and 40.2% for both the three and six months ended June 30, 2015. | ||||||||||||||
|
(6) Represents weighted-average diluted shares outstanding assuming the full exchange of common stock equivalents, including options and warrants for PBF LLC Series A Units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method (to the extent the impact of such exchange would not be anti-dilutive). Common stock equivalents excludes the effects of warrants and options to purchase 3,467,125 and 2,919,125 shares of PBF Energy Class A common stock because they are anti-dilutive for the three and six months ended June 30, 2016, respectively. Common stock equivalents excludes the effects of warrants and options to purchase 2,874,500 and 2,874,500 shares of PBF Energy Class A common stock because they are anti-dilutive for the three and six months ended June 30, 2015, respectively. | ||||||||||||||
|
(7) Represents an adjustment to weighted-average diluted shares to assume the full exchange of existing PBF LLC Series A Units as described in footnote 2 above if not included in the diluted weighted-average shares outstanding as described in footnote 6 above. | ||||||||||||||
|
(8) EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Adjusted EBITDA are supplemental measures of performance that are not required by, or presented in accordance with, GAAP. We use these non-GAAP financial measures as a supplement to our GAAP results in order to provide a more complete understanding of the factors and trends affecting our business. EBITDA and Adjusted EBITDA are measures of operating performance that are not defined by GAAP and should not be considered substitutes for net income as determined in accordance with GAAP. In addition, because EBITDA and Adjusted EBITDA are not calculated in the same manner by all companies, they are not necessarily comparable to other similarly titled measures used by other companies. EBITDA and Adjusted EBITDA have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. | ||||||||||||||
|
(9) We operate in two reportable segments; Refining and Logistics. Our operations that are not included in the Refining and Logistics segments are included in Corporate. As of June 30, 2016, the Refining segment includes the operations of our oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio and New Orleans, Louisiana. The Logistics segment includes the operations of PBF Logistics LP ("PBFX"), a growth-oriented master limited partnership which owns and operates logistics assets, currently consisting of the Delaware City Rail Terminal, the Toledo Truck Terminal, the DCR West Rack, the Toledo Storage Facility, the Delaware City Products Pipeline and Truck Rack and the East Coast Terminals, which were acquired in connection with the PBFX Plains Asset Purchase completed in the second quarter 2016. Prior to the PBFX's initial public offering and subsequent acquisitions, PBFX's assets were operated within the refining operations of PBF Energy's Delaware City and Toledo refineries. Apart from the East Coast Terminals, the assets did not generate third party or intra-entity revenue, other than certain intra-entity revenue recognized by the Delaware City Products Pipeline and Truck Rack, and were not considered to be a separate reportable segment. All intercompany transactions are eliminated in our consolidated financial statements and are included in Eliminations, as applicable. | ||||||||||||||
|
(10) As reported by Platts. | ||||||||||||||
|
(11) Gross refining margin and gross refining margin per barrel of throughput are non-GAAP measures because they exclude refinery operating expenses, refinery depreciation and amortization and gross margin of PBFX. Gross refining margin per barrel is gross refining margin, divided by total crude and feedstocks throughput. We believe they are important measures of operating performance and they provide useful information to investors because gross refining margin per barrel is a better metric comparison to the industry refining margin benchmarks shown in the Market Indicators Tables, as the industry benchmarks do not include a charge for refinery operating expenses and depreciation. Other companies in our industry may not calculate gross refining margin and gross refining margin per barrel in the same manner. | ||||||||||||||
|
(12) Represents refinery operating expenses, excluding depreciation and amortization, divided by total crude oil and feedstocks throughput. | ||||||||||||||
|
(13) We define heavy crude oil as crude oil with American Petroleum Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with API gravity between 24 and 35 degrees. We define light crude oil as crude oil with API gravity higher than 35 degrees. | ||||||||||||||
|
(14) The 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 $98.3 million for PBFX Plains Asset Purchase in the second quarter of 2016. | ||||||||||||||
|
(15) The total debt to capitalization ratio is calculated by dividing total debt by the sum of total debt and total equity. This ratio is a measurement which is presented in our annual and interim filings and management believes this ratio is useful to investors in determining our leverage. Net debt and the net debt to capitalization ratio are non-GAAP measures. Net debt is calculated by subtracting cash and cash equivalents and marketable securities from total debt. We believe these measurements are also useful to investors since we have the ability to and may decide to use a portion of our cash and cash equivalents to retire or pay down our debt. Marketable securities included in net debt fully collateralize PBFX's Term Loan and our cash balance includes the amount held in escrow at June 30, 2016 to fund the Torrance Acquisition, which closed on July 1, 2016. Additionally, as described in footnote 4 above, we have also presented the total debt to capitalization and net debt to capitalization ratios excluding the cumulative effects of special items on equity. | ||||||||||||||
|
June 30, |
December 31, | |||||||||
|
2016 |
2015 | |||||||||
|
Total debt |
$ |
2,363,712 |
$ |
1,840,355 |
||||||
|
Total equity |
2,175,856 |
2,095,857 |
||||||||
|
Total capitalization |
$ |
4,539,568 |
$ |
3,936,212 |
||||||
|
Total debt |
$ |
2,363,712 |
$ |
1,840,355 |
||||||
|
Total equity excluding special items |
2,712,143 |
2,763,118 |
||||||||
|
Total capitalization excluding special items |
$ |
5,075,855 |
$ |
4,603,473 |
||||||
|
Total equity |
$ |
2,175,856 |
$ |
2,095,857 |
||||||
|
Special Items (Note 4) |
||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
900,493 |
1,117,336 |
||||||||
|
Add: Change in tax receivable agreement liability (Note 4) |
(12,600) |
(12,600) |
||||||||
|
Less: Recomputed income taxes on special items (Note 5) |
(351,606) |
(437,475) |
||||||||
|
Net impact of special items to equity |
536,287 |
667,261 |
||||||||
|
Total equity excluding special items (Note 4) |
$ |
2,712,143 |
$ |
2,763,118 |
||||||
|
Total debt |
$ |
2,363,712 |
$ |
1,840,355 |
||||||
|
Less: Cash, cash equivalents and marketable securities |
1,549,079 |
1,178,578 |
||||||||
|
Net Debt |
$ |
814,633 |
$ |
661,777 |
||||||
|
Total debt to capitalization ratio |
52 |
% |
47 |
% | ||||||
|
Total debt to capitalization ratio, excluding special items |
47 |
% |
40 |
% | ||||||
|
Net debt to capitalization ratio |
27 |
% |
24 |
% | ||||||
|
Net debt to capitalization ratio, excluding special items |
23 |
% |
19 |
% | ||||||
|
(16) The Refining segment assets include $998.5 million of cash utilized to fund the Torrance Acquisition that closed on July 1, 2016. |
SOURCE PBF Energy Inc.
Article Date
7/29/2016PBF Energy Completes Acquisition of the Torrance Refinery and Related Logistics Assets
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., July 1, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that its subsidiary completed its acquisition of the 155,000 barrel-per-day Torrance refinery, and related logistics assets, from ExxonMobil. With the acquisition, PBF increased its total throughput capacity to approximately 900,000 barrels per day and becomes the fourth largest independent refiner in North America. The purchase price for the assets was $537.5 million, plus working capital. PBF financed the transaction with a combination of cash, including proceeds from its $350 million public equity offering in October of 2015, and borrowings under its existing revolving credit facility.
"We welcome Torrance's professional workforce to the PBF family," said PBF's Executive Chairman and Chief Executive Officer Tom Nimbley. "Together, we are committed to the orderly transition of ownership and the safe, reliable, and environmentally responsible operation of the Torrance refinery and logistics assets."
Nimbley continued, "We are excited to increase our geographic diversity with a complex refinery like Torrance in the dynamic West Coast fuels market. With this acquisition, PBF has increased our throughput capacity by more than 60 percent within the past year, adding significant earnings potential to PBF Energy and future growth opportunities for PBF Logistics."
The Torrance refinery, located on 750 acres in Torrance, California, is a high-conversion 155,000 barrel per day, delayed-coking refinery with a Nelson Complexity Index of 14.9. The facility is strategically positioned in Southern California with advantaged logistics connectivity that offers flexible raw material sourcing and product distribution opportunities primarily to the California, Las Vegas and Phoenix area markets.
In addition to the refinery, the transaction includes a number of high-quality logistics assets including a sophisticated network of crude and products pipelines, product distribution terminals and refinery crude and product storage facilities. The most significant of the logistics assets is a 171-mile crude gathering and transportation system which delivers San Joaquin Valley crude oil directly from the field to the refinery. Additionally, included in the transaction are several pipelines that provide access to sources of crude oil including the Ports of Long Beach and Los Angeles, as well as clean product outlets with a direct pipeline supplying jet fuel to the Los Angeles airport. The refinery also has crude and product storage facilities with approximately 8.6 million barrels of shell capacity.
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 expectations with respect to the acquisition; the company's post-acquisition 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 described above, and 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 49.5% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
Logo - http://photos.prnewswire.com/prnh/20160527/373092LOGO
SOURCE PBF Energy Inc.
Article Date
7/1/2016PBF Logistics to Release Second Quarter 2016 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., June 23, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that it will release its earnings for the second quarter 2016 on Friday, July 29, 2016. The company will host a conference call and webcast regarding second quarter results and other business matters on Friday, July 29, 2016, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be heard by dialing (888) 632-3381 or (785) 424-1678, conference ID: PBFXQ216. The audio replay will be available two hours after the end of the call through August 14, 2016, by dialing (800) 753-5575 or (402) 220-0683.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Logo - http://photos.prnewswire.com/prnh/20160527/373093LOGO
SOURCE PBF Logistics LP
Article Date
6/23/20166/17/2016 - PBF Energy to Attend Industry Conferences
PBF Energy to Attend Industry Conferences
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., June 17, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will attend the Wells Fargo West Coast Energy Conference on June 21 – 22, 2016, and the J.P. Morgan Inaugural Energy Equity Conference on June 28, 2016.
The company's meeting materials and presentation will be available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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 Delaware, New Jersey, Ohio and Louisiana. 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 49.5% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
Logo - http://photos.prnewswire.com/prnh/20160527/373092LOGO
SOURCE PBF Energy Inc.
Article Date
6/17/2016PBF Logistics to attend MLPA 2016 Investor Conference
Source: PR Newswire
PARSIPPANY, N.J., May 31, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that the partnership's management will be meeting with and presenting to investors and industry analysts on June 1 to June 3, 2016, at the MLPA (Master Limited Partnership Association) 2016 Investor Conference in Orlando, Florida.
The partnership's meeting materials will be available on the Investor Relations section of the PBF Logistics LP website at www.pbflogistics.com.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Logo - http://photos.prnewswire.com/prnh/20160527/373093LOGO
SOURCE PBF Logistics LP
Article Date
5/31/2016PBF Energy and PBF Logistics Announce Retirement of Thomas D. O'Malley
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., May 27, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) and PBF Logistics LP (NYSE:PBFX) announced today that Thomas D. O'Malley, will retire from his positions at the Companies at the end of June 2016. Thomas Nimbley, Chief Executive Officer of PBF and PBFX, will also assume the title of Chairman of the Board upon Mr. O'Malley's retirement. Mr. O'Malley will continue to act as a consultant to PBF through December 2018.
Mr. O'Malley, who will celebrate his 75th birthday in July, commented, "With the pending closing of the purchase of the Torrance Refinery, PBF has grown into an important member of the U.S. refining industry. The leadership team at PBF is, in my view, fully capable to continue the tradition of safe and profitable growth."
Mr. Nimbley remarked, "Tom O'Malley has been an iconic figure in our industry for over forty years and he will be missed. That being said, I believe that, under Tom's leadership, we have built talented, knowledgeable, and focused Executive Teams at PBF and PBFX who will carry on his legacy of creating shareholder value by operating our facilities in a safe, reliable and environmentally responsible manner, by maintaining a strong financial position and balance sheet and growing the companies organically and through accretive acquisitions.
On a personal note, I have worked with and been mentored by Tom for over fifteen years and am enormously grateful for that opportunity. On behalf of all of us at PBF and PBFX, we wish Tom and his wife, Mary Alice, all the best in their future endeavors."
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; satisfaction of the conditions to the closing of the Torrance acquisition and the possibility that the Torrance acquisition will not close; timing of the completion of the Torrance acquisition; the company's plans for financing the Torrance 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 Delaware, New Jersey, Ohio and Louisiana. 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 49.5% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Logo - http://photos.prnewswire.com/prnh/20160527/373092LOGO
Logo - http://photos.prnewswire.com/prnh/20160527/373093LOGO
SOURCE PBF Energy Inc.
Article Date
5/27/2016PBF Energy to Attend Morgan Stanley Refining Corporate Access Day
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., May 9, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be meeting with institutional investors at the Morgan Stanley Refining Corporate Access Day on May 12, 2016.
The company's meeting materials will be available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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 Delaware, New Jersey, Ohio and Louisiana. 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 49.5% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
5/9/2016PBF Logistics Closes Acquisition of East Coast Terminals
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., April 29, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") announced today that its wholly-owned subsidiary has completed its acquisition of four refined product terminals located in the greater Philadelphia region (the "East Coast Terminals") from an affiliate of Plains All American Pipeline, L.P. for cash consideration of approximately $100 million. This acquisition expands the Partnership's storage and terminalling footprint and introduces third-party customers to the Partnership's revenue base.
PBFX Chief Executive Officer Thomas Nimbley said, "Completing the East Coast Terminals transaction is PBFX's first third-party acquisition, adds meaningful third-party, fee-based revenue and represents an attractive acquisition multiple. We have increased the Partnership's total storage capacity by over 100% to approximately 8 million shell-barrels and diversified our customer and asset base." Mr. Nimbley continued, "Earlier this month, we increased our liquidity by approximately $50 million through our first follow-on equity offering. We funded the acquisition through a combination of cash on hand plus a draw under our existing credit facility. We look forward to welcoming the East Coast Terminals employees and customers to the PBF Logistics family."
Located in the Philadelphia market, the East Coast Terminals are ideally situated in the sixth largest metropolitan area in the United States with significant local demand for refined products. The terminals provide a critical link for the approximately 1.3 million barrels per day of refining capacity located within 100 miles of the terminals and associated downstream demand. With extensive pipeline, truck and deep-water marine connectivity, the East Coast terminals have the flexibility to accommodate a wide variety of potential customer requirements.
The East Coast Terminals will allow PBF Logistics to begin working with third-party customers and leverage opportunities with PBF Energy due to the close proximity of PBF Energy's East Coast refining system. In conjunction with the transaction, the Partnership expects to invest approximately $5 million, from cash on hand, to improve infrastructure in order to increase throughput capability at the East Coast Terminals. Based on a total transaction cost of $105 million, including the $5 million investment and synergy opportunities, the Partnership expects the East Coast Terminals to generate approximately $15 million of pro forma EBITDA in 2017. Following the acquisition, until the initial capital investments are complete, we expect annual run-rate EBITDA of approximately $10 million.
The assets to be acquired include a total of 57 product tanks with a total shell capacity of approximately 4.2 million shell barrels, pipeline connections to the Colonial, Buckeye, Sunoco Logistics and other proprietary pipeline systems, 26 truck loading lanes and marine facilities capable of handling barges and ships.
|
Non-GAAP Measures |
|||
|
PBF Logistics LP Reconciliation of Amounts under US GAAP to Forecasted EBITDA (unaudited, in millions) |
|||
|
Reconciliation of East Coast Terminals Forecasted |
|||
|
Net Income to pro forma EBITDA: |
|||
|
Pro forma |
Pro forma | ||
|
2017 |
2016 | ||
|
Forecasted net income |
$8.7 |
$5.8 | |
|
Add: Depreciation and amortization expense |
5.3 |
3.5 | |
|
Add: Interest expense, net and other financing costs |
1.0 |
0.7 | |
|
Pro forma EBITDA |
$15.0 |
$10.0 | |
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA should not be considered an alternative to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. Due to the forward-looking nature of forecasted EBITDA, information to reconcile forecasted EBITDA to forecasted cash flow from operating activities is not available as management is unable to project working capital changes for future periods at this time.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Forward-Looking Statements
Disclosures in this press release contain "forward-looking statements." All statements, other than statements of historical facts, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the accretion expected to be realized by the Partnership as a result of the acquisition and the expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of the Partnership and its subsidiaries. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports filed by the Partnership with the Securities and Exchange Commission. Any forward-looking statement applies only as of the date on which such statement is made and the Partnership does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE PBF Logistics LP
Article Date
4/29/2016PBF Logistics Increases Quarterly Distribution to $0.42 per Common Unit and Announces First Quarter 2016 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., April 28, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") announced today first quarter 2016 net income of $19.1 million, or $0.53 per common unit. During the first quarter, the Partnership generated earnings before interest, income taxes, depreciation, and amortization ("EBITDA") of $28.0 million and distributable cash flow of $21.4 million.
"At the end of the quarter we successfully raised over $50 million through an equity offering to the public. This was our first follow-on offering and we are pleased with the outcome given the significant market volatility. We believe that investors saw the merits of the upcoming East Coast Terminals acquisition that is expected to close this week," said PBF Logistics GP LLC Chief Executive Officer, Tom Nimbley. "During the first quarter our assets performed well and we are pleased that the board of directors has approved an increase in our quarterly distribution to $0.42 per common unit. We look forward to continuing to execute our growth strategy for the Partnership and create additional value for our unitholders."
As of March 31, 2016, the Partnership had approximately $330 million of liquidity, including $29.3 million in cash and cash equivalents and access to a approximately $300 million under its existing revolving credit facility. The Partnership intends to use its financial resources to fund organic growth projects at the Partnership and future drop-down and third-party acquisitions.
Equity Offering and East Coast Terminals Acquisition
On March 30, 2016, the Partnership launched an underwritten public equity offering which resulted in the successful sale of 2,875,000 common units, including the full exercise of the underwriter's option to purchase additional common units. Total gross proceeds (before underwriter's discounts and commissions) of the offering were approximately $53 million. The offering closed subsequent to the quarter on April 5, 2016. The Partnership may use the net proceeds from this offering to fund a portion of the purchase price for the previously announced acquisition of four refined product terminals (the "East Coast Terminals") from an affiliate of Plains All American Pipeline, L.P. and for general partnership purposes.
On February 2, 2016, the Partnership announced that a wholly-owned subsidiary has entered into an agreement to acquire the East Coast Terminals for total consideration of $100 million. The acquisition is expected to close this week.
The East Coast Terminals are expected to allow PBF Logistics to leverage its expanded footprint and capitalize on commercial opportunities with new customers and leverage opportunities with PBF Energy due to the close proximity of PBF Energy's East Coast refining system. In conjunction with the transaction, the Partnership expects to invest approximately $5 million, from cash on hand, to improve infrastructure in order to increase throughput capability at the East Coast Terminals. Based on a total transaction cost of $105 million, including the $5 million investment and synergy opportunities, the Partnership expects the East Coast Terminals to generate approximately $15 million of pro forma EBITDA, of which approximately two-thirds is expected to be from third-party customers.
PBF Logistics Announces Increased Quarterly Distribution
The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.42 per common unit. The distribution is payable on May 31, 2016, to unitholders of record at the close of business on May 13, 2016.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
PBF Logistics LP Reconciliation of Amounts under U.S. generally accepted accounting principles ("GAAP") to Forecasted EBITDA (unaudited, in millions)
Reconciliation of East Coast Terminals Forecasted
Net Income to pro forma EBITDA:
|
Forecasted net income |
$ |
8.7 |
|
|
Add: Depreciation and amortization expense |
5.3 |
||
|
Add: Interest expense, net and other financing costs |
1.0 |
||
|
Pro forma EBITDA |
$ |
15.0 |
|
This earnings release, and the discussion during the management conference call, may include references to non-GAAP financial measures including, but not limited to, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Distributable Cash Flow. PBFX's management believes that non-GAAP financial measures provide useful information about the Partnership's operating performance, financial results and the amount of cash generated by the Partnership's operations and the amount available for distribution to its unitholders. 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. PBFX'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 financial measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
The Partnership's senior management will host a conference call and webcast regarding earnings results and other business matters on Thursday, April 28, 2016, at 11:00 a.m. ET. The call can also be heard by dialing (877) 876-9176 or (785) 424-1667, conference ID: PBFXQ116. The audio replay will be available two hours after the end of the call through May 14, 2016, by dialing (800) 695-0671 or (402) 220-1397. The call is being webcast and can be accessed on the Partnership's website, http://www.pbflogistics.com.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including the Form 10-K. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present EBITDA (as defined below) and related operational information of PBFX for the three months ended March 31, 2016 and 2015. The financial information presented contains the financial results of PBFX and a products pipeline (the "Delaware City Products Pipeline"), truck rack and related facilities located at PBF Energy's Delaware city refinery (which we collectively refer to as the "Delaware City Products Pipeline and Truck Rack") prior to its acquisition by PBFX on May 14, 2015. The Delaware City Products Pipeline and Truck Rack were acquired from subsidiaries of our indirect parent company, PBF Energy Inc. ("PBF Energy"). The results of the Delaware City Products Pipeline and Truck Rack are included in the Transportation and Terminaling segment.
The Delaware City Products Pipeline was the only asset that recorded revenue for transactions with PBF Energy prior to our acquisition of the Delaware City Products Pipeline and Truck Rack from PBF Energy Company LLC ("PBF LLC"). Affiliate revenues have been recorded for the Delaware City Products Pipeline and Truck Rack subsequent to the commencement of the commercial agreements with PBF Energy. As a result, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before interest expense, income tax expense, depreciation and amortization expense. We define distributable cash flow as EBITDA plus non-cash unit-based compensation expense, less net cash paid for interest, maintenance capital expenditures and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is distributable cash flow divided by total distribution declared. Distributable cash flow and EBITDA are not financial measures prescribed by U.S. GAAP.
While EBITDA and distributable cash flow are not financial measures prescribed by U.S. GAAP ("non-GAAP"), they are supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities.
We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, as it provides investors with an enhanced perspective of the operating performance of our assets and the cash our business is generating. EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP.
These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
|
PBF LOGISTICS LP EARNINGS RELEASE TABLES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except unit and per unit data) | ||||||||||||
|
Three Months Ended March 31, | ||||||||||||
|
2016 |
2015 | |||||||||||
|
Revenue from affiliates (a) |
$ |
36,549 |
$ |
32,846 |
||||||||
|
Costs and expenses: |
||||||||||||
|
Operating and maintenance expenses |
6,021 |
8,434 |
||||||||||
|
General and administrative expenses |
2,565 |
3,062 |
||||||||||
|
Depreciation and amortization expense |
1,640 |
1,633 |
||||||||||
|
Total costs and expenses |
10,226 |
13,129 |
||||||||||
|
Income from operations |
26,323 |
19,717 |
||||||||||
|
Other expense: |
||||||||||||
|
Interest expense, net |
(6,806) |
(1,793) |
||||||||||
|
Amortization of loan fees |
(423) |
(162) |
||||||||||
|
Net income |
19,094 |
17,762 |
||||||||||
|
Less: Net income attributable to Predecessor |
— |
1,053 |
||||||||||
|
Net income attributable to the Partnership |
$ |
19,094 |
$ |
16,709 |
||||||||
|
Net income per limited partner unit: |
||||||||||||
|
Common units - basic |
$ |
0.53 |
$ |
0.51 |
||||||||
|
Common units - diluted |
0.53 |
0.51 |
||||||||||
|
Subordinated units - basic and diluted |
0.53 |
0.51 |
||||||||||
|
Weighted-average limited partner units outstanding: |
||||||||||||
|
Common units - basic |
18,497,620 |
17,097,024 |
||||||||||
|
Common units - diluted |
18,497,997 |
17,117,261 |
||||||||||
|
Subordinated units - basic and diluted |
15,886,553 |
15,886,553 |
||||||||||
|
Cash distributions declared per unit |
$ |
0.42 |
$ |
0.33 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
PBF LOGISTICS LP EARNINGS RELEASE TABLES KEY OPERATING AND FINANCIAL INFORMATION (Unaudited, amounts in thousands except as indicated) | ||||||||||
|
Three Months Ended March 31, | ||||||||||
|
2016 |
2015 | |||||||||
|
Key Operating Information: |
||||||||||
|
Throughput (barrels per day ("bpd")) (c) |
||||||||||
|
DCR Rail Terminal |
30.2 |
48.8 | ||||||||
|
DCR West Rack |
10.9 |
37.2 | ||||||||
|
Toledo Truck Terminal |
16.4 |
6.3 | ||||||||
|
Toledo Storage Facility (Propane Loading) |
4.6 |
4.1 | ||||||||
|
Delaware City Products Pipeline |
36.0 |
48.1 | ||||||||
|
Delaware City Truck Rack |
30.3 |
N/A | ||||||||
|
Total throughput (barrels) |
||||||||||
|
DCR Rail Terminal |
2,749.6 |
4,390.1 | ||||||||
|
DCR West Rack |
991.1 |
3,345.9 | ||||||||
|
Toledo Truck Terminal |
1,495.6 |
567.7 | ||||||||
|
Toledo Storage Facility (Propane Loading) |
420.9 |
371.8 | ||||||||
|
Delaware City Products Pipeline |
3,280.2 |
4,331.6 | ||||||||
|
Delaware City Truck Rack |
2,754.5 |
N/A | ||||||||
|
Total |
11,691.9 |
13,007.1 | ||||||||
|
Storage capacity reserved (average shell capacity barrels per month) (d) |
3,654.6 |
3,682.4 | ||||||||
|
Cash Flow Information: |
||||||||||
|
Net cash provided by (used in): |
||||||||||
|
Operating activities |
$ |
25,845 |
$ |
17,899 | ||||||
|
Investing activities |
(579) |
(72) | ||||||||
|
Financing activities |
(14,680) |
(11,813) | ||||||||
|
Net increase in cash |
$ |
10,586 |
$ |
6,014 | ||||||
|
Other Financial Information: |
||||||||||
|
EBITDA attributable to PBFX (b) |
$ |
27,963 |
$ |
20,121 | ||||||
|
Distributable cash flow (b) |
$ |
21,447 |
$ |
19,248 | ||||||
|
Quarterly distribution declared per unit (e) |
$ |
0.42 |
$ |
0.33 | ||||||
|
Distribution declared: (e) |
||||||||||
|
Common units - public |
$ |
8,065 |
$ |
5,631 | ||||||
|
Common units - PBF LLC |
1,081 |
450 | ||||||||
|
Subordinated units - PBF LLC |
6,672 |
5,560 | ||||||||
|
IDR holder - PBF LLC |
757 |
29 | ||||||||
|
Total distribution declared |
$ |
16,575 |
$ |
11,670 | ||||||
|
Coverage ratio (b) |
1.29x |
1.65x | ||||||||
|
Capital expenditures |
$ |
439 |
$ |
76 | ||||||
|
See Footnotes to Earnings Release Tables | ||||||||||
|
PBF LOGISTICS LP EARNINGS RELEASE TABLES KEY OPERATING AND FINANCIAL INFORMATION (Unaudited, amounts in thousands except as indicated) | ||||||||||||
|
March 31, |
December 31, | |||||||||||
|
Balance Sheet Information: |
2016 |
2015 | ||||||||||
|
Cash, cash equivalents and marketable securities |
$ |
263,672 |
$ |
252,936 |
||||||||
|
Property, plant and equipment, net |
144,363 |
145,548 |
||||||||||
|
Total assets |
433,579 |
422,902 |
||||||||||
|
Total debt |
600,058 |
599,635 |
||||||||||
|
Total liabilities |
614,236 |
608,577 |
||||||||||
|
Partners' equity |
(180,657) |
(185,675) |
||||||||||
|
Total liabilities and equity |
433,579 |
422,902 |
||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
PBF LOGISTICS LP EARNINGS RELEASE TABLES RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP TO EBITDA AND DISTRIBUTABLE CASH FLOW (Unaudited, in thousands) | |||||||||||
|
Three Months Ended March 31, | |||||||||||
|
2016 |
2015 | ||||||||||
|
Reconciliation of net income to EBITDA and distributable cash flow (b): |
|||||||||||
|
Net income |
$ |
19,094 |
$ |
17,762 | |||||||
|
Interest expense, net |
6,806 |
1,793 | |||||||||
|
Amortization of loan fees |
423 |
162 | |||||||||
|
Depreciation and amortization |
1,640 |
1,633 | |||||||||
|
EBITDA |
27,963 |
21,350 | |||||||||
|
Less: Predecessor EBITDA |
— |
1,229 | |||||||||
|
EBITDA attributable to PBFX |
27,963 |
20,121 | |||||||||
|
Non-cash unit-based compensation expense |
729 |
930 | |||||||||
|
Interest expense, net |
(6,806) |
(1,803) | |||||||||
|
Maintenance capital expenditures |
(439) |
— | |||||||||
|
Distributable cash flow |
$ |
21,447 |
$ |
19,248 | |||||||
|
Reconciliation of net cash provided by operating activities to EBITDA and distributable cash flow (b): |
|||||||||||
|
Net cash provided by operating activities |
$ |
25,845 |
$ |
17,899 | |||||||
|
Change in current assets and liabilities |
(3,959) |
2,588 | |||||||||
|
Interest expense, net |
6,806 |
1,793 | |||||||||
|
Non-cash unit-based compensation expense |
(729) |
(930) | |||||||||
|
EBITDA |
27,963 |
21,350 | |||||||||
|
Less: Predecessor EBITDA |
— |
1,229 | |||||||||
|
EBITDA attributable to PBFX |
27,963 |
20,121 | |||||||||
|
Non-cash unit-based compensation expense |
729 |
930 | |||||||||
|
Interest expense, net |
(6,806) |
(1,803) | |||||||||
|
Maintenance capital expenditures |
(439) |
— | |||||||||
|
Distributable cash flow |
$ |
21,447 |
$ |
19,248 | |||||||
|
See Footnotes to Earnings Release Tables | |||||||||||
|
PBF LOGISTICS LP EARNINGS RELEASE TABLES SEGMENT FINANCIAL INFORMATION (Unaudited, in thousands) | ||||||||||||||||
|
Three Months Ended March 31, 2016 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Revenues (a) |
$ |
31,067 |
$ |
5,482 |
$ |
— |
$ |
36,549 |
||||||||
|
Depreciation and amortization expense |
991 |
649 |
— |
1,640 |
||||||||||||
|
Income (loss) from operations |
25,947 |
2,941 |
(2,565) |
26,323 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
7,229 |
7,229 |
||||||||||||
|
Capital expenditures |
— |
439 |
— |
439 |
||||||||||||
|
Three Months Ended March 31, 2015 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Revenues (a) |
$ |
27,320 |
$ |
5,526 |
$ |
— |
$ |
32,846 |
||||||||
|
Depreciation and amortization expense |
991 |
642 |
— |
1,633 |
||||||||||||
|
Income (loss) from operations |
19,802 |
2,977 |
(3,062) |
19,717 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
(10) |
— |
1,965 |
1,955 |
||||||||||||
|
Capital expenditures |
76 |
— |
— |
76 |
||||||||||||
|
Balance at March 31, 2016 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total assets |
$ |
112,408 |
$ |
57,143 |
$ |
264,028 |
$ |
433,579 |
||||||||
|
Balance at December 31, 2015 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated | |||||||||||||
|
Total assets |
$ |
112,826 |
$ |
56,846 |
$ |
253,230 |
$ |
422,902 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF LOGISTICS LP EARNINGS RELEASE TABLES FOOTNOTES TO EARNINGS RELEASE TABLES (Unaudited, in thousands, except per unit data) | ||
|
(a) |
See discussion of the factors affecting comparability noted on page 4. The Partnership's results of operations may not be comparable to the historical results of operations for the reasons described below: | |
|
Revenues- Delaware City Products Pipeline was the only asset that recorded revenue for transactions with PBF Energy prior to our acquisitions of the Delaware City Products Pipeline and Truck Rack from PBF LLC, as discussed under "Factors Affecting Comparability." Commercial agreements with PBF Energy for the Delaware Products Pipeline and Truck Rack commenced subsequent to its acquisition by PBFX on May 14, 2015. | ||
|
(b) |
See "Non-GAAP Financial Measures" on page 4 for a definition of EBITDA, distributable cash flow and coverage ratio. | |
|
(c) |
Operating information pertains to assets which are included in the Transportation and Terminaling segment. Throughput information reflects activity subsequent to execution of the commercial agreements in connection with the acquisition of the Delaware City Products Pipeline and Truck Rack from PBF, with the exception of the Delaware City Products Pipeline which recognized revenue prior to its acquisition by PBFX. | |
|
(d) |
Operating information pertains to assets which are included in the Storage segment. | |
|
(e) |
On April 28, 2016, we announced a quarterly cash distribution of $0.42 per common unit for the first quarter of 2016. | |
SOURCE PBF Logistics LP
Article Date
4/28/2016PBF Energy Reports First Quarter 2016 Results, Declares Dividend of $0.30 Per Share
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., April 28, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today reported a first quarter 2016 operating loss, excluding special items, of $64.5 million as compared to operating income of $151.2 million for the first quarter of 2015. Special items in the first quarter 2016 results include a net, non-cash, after-tax gain of $35.7 million, or $0.35 per share, lower-of-cost-or-market ("LCM") inventory adjustment which reduced the operating loss.
Adjusted fully-converted net loss for the first quarter 2016, excluding special items, was $66.5 million, or $0.65 per share on a fully exchanged, fully diluted basis, as described below, compared to adjusted fully-converted net income of $79.3 million, or $0.87 per share, for the first quarter 2015. On a GAAP basis, the company reported a first quarter 2016 net loss of $23.3 million, and net loss attributable to PBF Energy Inc. of $29.4 million or $0.30 per share. This compares to GAAP net income of $103.1 million, and net income attributable to PBF Energy Inc. of $87.3 million or $1.04 per share for the first quarter 2015. PBF Energy's financial results reflect the consolidation of the financial results of PBF Logistics LP (NYSE: PBFX), a master limited partnership of which PBF indirectly owns the general partner and approximately 53.7% of the limited partner interests as of quarter-end.
Tom Nimbley, PBF Energy's CEO, said, "There were many obstacles for the refining sector during the first quarter. The high refining capacity utilization in 2015 lead to elevated product inventories going into 2016 which resulted in reduced margins for most regions in the United States in the first quarter. Additionally, there was significant crude price volatility during the quarter and crude differentials tightened. With that backdrop, the Toledo and Chalmette refineries operated well in a seasonally low market environment. The East Coast experienced approximately two weeks of unplanned downtime at Delaware City as a result of a storm-related loss of power in late January and given the prevailing market conditions, we elected to move forward the Delaware City coker and hydrocracker turnarounds. As a result of the downtime and turnaround, our ability to convert our typically advantaged slate of heavy and medium crudes into saleable clean products was diminished and resulted in a higher yield of low-value products."
Mr. Nimbley continued, "Looking forward, margins have rebounded from the first quarter lows and crude oil differentials have improved. Fundamentals are supportive of a strong summer driving season with positive indicators in terms of high consumer demand and year-over-year increases in vehicle miles traveled. Delaware City emerged from its turnaround at the beginning of the month and we are focused on the safe, reliable and environmentally responsible operation of all our assets. We look forward to delivering strong results from our four existing assets and to adding a fifth asset as we expect the previously announced Torrance refinery acquisition to close in the second quarter."
Previously announced Torrance Refinery acquisition
On September 30, 2015, PBF announced that its subsidiary signed a definitive agreement to purchase the 155,000 barrel per day Torrance refinery, and related logistics assets, from ExxonMobil. The purchase price for the assets is $537.5 million, plus working capital to be valued at closing. The Torrance transaction is expected to close in the second quarter of 2016, subject to customary closing conditions and regulatory approvals. The refinery will be restored to full working order prior to close.
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 May 31, 2016, to holders of record as of May 13, 2016.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income, Adjusted Fully-Converted Net Income per fully-exchanged, fully-diluted share, gross refining margin, gross refining margin per barrel of throughput, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization), Adjusted EBITDA and projected EBITDA related to the refinery acquisitions. PBF believes that non-GAAP financial measures provide useful information about its operating performance and financial results. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBF's non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the non-GAAP measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
PBF Energy's senior management will host a conference call and webcast regarding quarterly results and other business matters on Thursday, April 28, 2016, at 8:30 a.m. ET. The call is being webcast and can be accessed at PBF Energy's website, http://www.pbfenergy.com. The call can also be heard by dialing (877) 876-9177 or (785) 424-1666, conference ID: PBFQ116. The audio replay will be available two hours after the end of the call through May 14, 2016, by dialing (800) 688-7036 or (402) 220-1346.
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; satisfaction of the conditions to the closing of the Torrance acquisition and the possibility that the Torrance acquisition will not close; timing of the completion of the Torrance acquisition; the company's plans for financing the Torrance 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 Delaware, New Jersey, Ohio and Louisiana. 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 49.5% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
|
(Unaudited, in thousands, except share and per share data) | ||||||||||||
|
Three Months Ended | ||||||||||||
|
March 31, | ||||||||||||
|
2016 |
2015 | |||||||||||
|
Revenues |
$ |
2,800,185 |
$ |
2,995,136 |
||||||||
|
Costs and expenses: |
||||||||||||
|
Cost of sales, excluding depreciation |
2,412,095 |
2,502,215 |
||||||||||
|
Operating expenses, excluding depreciation |
299,999 |
237,118 |
||||||||||
|
General and administrative expenses |
37,582 |
36,046 |
||||||||||
|
Gain on sale of assets |
— |
(359) |
||||||||||
|
Depreciation and amortization expense |
55,933 |
47,706 |
||||||||||
|
2,805,609 |
2,822,726 |
|||||||||||
|
(Loss) income from operations |
(5,424) |
172,410 |
||||||||||
|
Other income (expenses): |
||||||||||||
|
Change in fair value of catalyst leases |
(2,885) |
2,039 |
||||||||||
|
Interest expense, net |
(37,527) |
(22,192) |
||||||||||
|
(Loss) income before income taxes |
(45,836) |
152,257 |
||||||||||
|
Income tax (benefit) expense |
(22,500) |
49,138 |
||||||||||
|
Net (loss) income |
(23,336) |
103,119 |
||||||||||
|
Less: net income attributable to noncontrolling interests |
6,052 |
15,798 |
||||||||||
|
Net (loss) income attributable to PBF Energy Inc. |
$ |
(29,388) |
$ |
87,321 |
||||||||
|
Net (loss) income available to Class A common stock per share: |
||||||||||||
|
Basic |
$ |
(0.30) |
$ |
1.04 |
||||||||
|
Diluted |
$ |
(0.30) |
$ |
1.00 |
||||||||
|
Weighted-average shares outstanding-basic |
97,809,384 |
84,278,071 |
||||||||||
|
Weighted-average shares outstanding-diluted |
97,809,384 |
91,669,101 |
||||||||||
|
Dividends per common share |
$ |
0.30 |
$ |
0.30 |
||||||||
|
Adjusted fully-converted net (loss) income and adjusted |
||||||||||||
|
Adjusted fully-converted net (loss) income |
$ |
(30,862) |
$ |
91,978 |
||||||||
|
Adjusted fully-converted net (loss) income per fully exchanged, fully diluted share |
$ |
(0.30) |
$ |
1.00 |
||||||||
|
Adjusted fully-converted shares outstanding - diluted |
102,765,801 |
91,669,101 |
||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||
|
(Unaudited, in thousands, except share and per share data) | ||||||||||||||
|
Three Months Ended | ||||||||||||||
|
RECONCILIATION OF NET (LOSS) INCOME TO |
March 31, | |||||||||||||
|
ADJUSTED FULLY-CONVERTED NET (LOSS) INCOME (Note 1) |
2016 |
2015 | ||||||||||||
|
Net (loss) income attributable to PBF Energy Inc. |
$ |
(29,388) |
$ |
87,321 |
||||||||||
|
Add: |
Net (loss) income attributable to the noncontrolling interest (Note 2) |
(2,441) |
7,788 |
|||||||||||
|
Less: |
Income tax benefit (expense) (Note 3) |
967 |
(3,131) |
|||||||||||
|
Adjusted fully-converted net (loss) income |
$ |
(30,862) |
$ |
91,978 |
||||||||||
|
Special Items (Note 4): |
||||||||||||||
|
Add: |
Net non-cash LCM inventory adjustment (Note 5) |
(59,063) |
(21,208) |
|||||||||||
|
Less: |
Recomputed income taxes on special items (Note 5) |
23,389 |
8,526 |
|||||||||||
|
Adjusted fully-converted net (loss) income excluding special items (Note 4) |
$ |
(66,536) |
$ |
79,296 |
||||||||||
|
Diluted weighted-average shares outstanding of PBF Energy Inc. (Note 6) |
97,809,384 |
91,669,101 |
||||||||||||
|
Conversion of PBF LLC Series A Units (Note 7) |
4,956,417 |
— |
||||||||||||
|
Fully-converted shares outstanding - diluted |
102,765,801 |
91,669,101 |
||||||||||||
|
Adjusted fully-converted net (loss) income (per fully exchanged, fully diluted shares outstanding) |
$ |
(0.30) |
$ |
1.00 |
||||||||||
|
Adjusted fully-converted net (loss) income excluding special items (per fully exchanged, fully diluted shares outstanding) (Note 4) |
$ |
(0.65) |
$ |
0.87 |
||||||||||
|
Three Months Ended | ||||||||||||||
|
RECONCILIATION OF (LOSS) INCOME FROM OPERATIONS TO |
March 31, | |||||||||||||
|
(LOSS) INCOME FROM OPERATIONS EXCLUDING SPECIAL ITEMS |
2016 |
2015 | ||||||||||||
|
(Loss) income from operations |
$ |
(5,424) |
$ |
172,410 |
||||||||||
|
Special Items (Note 4): |
||||||||||||||
|
Add: |
Net non-cash LCM inventory adjustment (Note 5) |
(59,063) |
(21,208) |
|||||||||||
|
(Loss) income from operations excluding special items (Note 4) |
$ |
(64,487) |
$ |
151,202 |
||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||
|
EBITDA RECONCILIATIONS (Note 8) | ||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||
|
Three Months Ended | ||||||||||||||
|
March 31, | ||||||||||||||
|
RECONCILIATION OF NET (LOSS) INCOME TO EBITDA |
2016 |
2015 | ||||||||||||
|
Net (loss) income |
$ |
(23,336) |
$ |
103,119 |
||||||||||
|
Add: |
Depreciation and amortization expense |
55,933 |
47,706 |
|||||||||||
|
Add: |
Interest expense, net |
37,527 |
22,192 |
|||||||||||
|
Add: |
Income tax (benefit) expense |
(22,500) |
49,138 |
|||||||||||
|
EBITDA |
$ |
47,624 |
$ |
222,155 |
||||||||||
|
Special Items (Note 4): |
||||||||||||||
|
Add: |
Net non-cash LCM inventory adjustment (Note 5) |
(59,063) |
(21,208) |
|||||||||||
|
EBITDA excluding special items (Note 4) |
$ |
(11,439) |
$ |
200,947 |
||||||||||
|
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA |
||||||||||||||
|
EBITDA |
$ |
47,624 |
$ |
222,155 |
||||||||||
|
Add: |
Stock based compensation |
3,350 |
2,955 |
|||||||||||
|
Add: |
Net non-cash change in fair value of catalyst leases |
2,885 |
(2,039) |
|||||||||||
|
Add: |
Non-cash LCM inventory adjustment (Note 5) |
(59,063) |
(21,208) |
|||||||||||
|
Adjusted EBITDA |
$ |
(5,204) |
$ |
201,863 |
||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEET DATA | ||||||||||||
|
(Unaudited, in thousands) | ||||||||||||
|
March 31, |
December 31, |
|||||||||||
|
2016 |
2015 |
|||||||||||
|
Cash, cash equivalents and marketable securities |
$ |
974,729 |
$ |
1,178,578 |
||||||||
|
Inventories |
1,229,299 |
1,174,272 |
||||||||||
|
Total assets |
6,188,803 |
6,105,124 |
||||||||||
|
Total long-term debt |
1,845,902 |
1,840,355 |
||||||||||
|
Total equity |
$ |
2,038,890 |
$ |
2,095,857 |
||||||||
|
Special Items (Note 4) |
||||||||||||
|
Add: Net non-cash LCM inventory adjustment (Note 5) |
(59,063) |
427,226 |
||||||||||
|
Add: Change in tax receivable agreement liability (Note 4) |
— |
(18,150) |
||||||||||
|
Less: Recomputed income taxes on special items (Note 5) |
23,389 |
(161,994) |
||||||||||
|
Net impact of special items to equity |
$ |
(35,674) |
$ |
247,082 |
||||||||
|
Total equity excluding special items (Note 4) |
$ |
2,003,216 |
$ |
2,342,939 |
||||||||
|
Net debt to capitalization ratio |
30 |
% |
24 |
% |
||||||||
|
Net debt to capitalization ratio, excluding special items |
30 |
% |
22 |
% |
||||||||
|
Total debt to capitalization ratio |
48 |
% |
47 |
% |
||||||||
|
Total debt to capitalization ratio, excluding special items |
48 |
% |
44 |
% |
||||||||
|
SUMMARIZED STATEMENT OF CASH FLOW DATA | ||||||||||||
|
(Unaudited, in thousands) | ||||||||||||
|
Three Months Ended March 31, |
||||||||||||
|
2016 |
2015 |
|||||||||||
|
Cash flows (used in) provided by operations |
$ |
(20,597) |
$ |
132,505 |
||||||||
|
Cash flows used in investing activities |
(145,879) |
(48,107) |
||||||||||
|
Cash flows used in financing activities |
(37,523) |
(32,791) |
||||||||||
|
Net (decrease) increase in cash and cash equivalents |
(203,999) |
51,607 |
||||||||||
|
Cash and cash equivalents, beginning of period |
944,320 |
397,873 |
||||||||||
|
Cash and cash equivalents, end of period |
$ |
740,321 |
$ |
449,480 |
||||||||
|
Marketable securities |
234,408 |
234,939 |
||||||||||
|
Net cash, cash equivalents and marketable securities |
$ |
974,729 |
$ |
684,419 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||
|
CONSOLIDATING FINANCIAL INFORMATION (Note 9) | |||||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||||
|
Three Months Ended March 31, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated | |||||||||||||||
|
Revenues |
$ |
2,800,185 |
$ |
36,549 |
$ |
— |
$ |
(36,549) |
$ |
2,800,185 |
|||||||||
|
Depreciation and amortization |
52,596 |
1,640 |
1,697 |
— |
55,933 |
||||||||||||||
|
(Loss) income from operations |
4,967 |
26,323 |
(36,714) |
— |
(5,424) |
||||||||||||||
|
Interest expense, net |
972 |
7,229 |
29,326 |
— |
37,527 |
||||||||||||||
|
Capital expenditures (Note 14) |
139,600 |
439 |
5,700 |
— |
145,739 |
||||||||||||||
|
Three Months Ended March 31, 2015 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated | |||||||||||||||
|
Revenues |
$ |
2,995,136 |
$ |
32,846 |
$ |
— |
$ |
(32,846) |
$ |
2,995,136 |
|||||||||
|
Depreciation and amortization |
43,030 |
1,633 |
3,043 |
— |
47,706 |
||||||||||||||
|
Income (loss) from operations |
188,085 |
19,717 |
(35,392) |
— |
172,410 |
||||||||||||||
|
Interest expense, net |
3,956 |
1,955 |
16,281 |
— |
22,192 |
||||||||||||||
|
Capital expenditures |
124,468 |
76 |
1,185 |
— |
125,729 |
||||||||||||||
|
Balance at March 31, 2016 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated | |||||||||||||||
|
Total assets |
$ |
5,165,674 |
$ |
433,579 |
$ |
614,004 |
$ |
(24,454) |
$ |
6,188,803 |
|||||||||
|
Balance at December 31, 2015 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated | |||||||||||||||
|
Total assets |
$ |
5,087,554 |
$ |
422,902 |
$ |
618,617 |
$ |
(23,949) |
$ |
6,105,124 |
|||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
MARKET INDICATORS AND KEY OPERATING INFORMATION | ||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||
|
Three Months Ended | ||||||||||||
|
March 31, | ||||||||||||
|
Market Indicators (dollars per barrel) (Note 10) |
2016 |
2015 | ||||||||||
|
Dated Brent Crude |
$ |
34.24 |
$ |
54.29 |
||||||||
|
West Texas Intermediate (WTI) crude oil |
$ |
33.45 |
$ |
48.49 |
||||||||
|
Light Louisiana Sweet (LLS) crude oil |
$ |
35.34 |
$ |
52.84 |
||||||||
|
Crack Spreads: |
||||||||||||
|
Dated Brent (NYH) 2-1-1 |
$ |
11.18 |
$ |
15.76 |
||||||||
|
WTI (Chicago) 4-3-1 |
$ |
8.83 |
$ |
15.45 |
||||||||
|
LLS (Gulf Coast) 2-1-1 |
$ |
8.71 |
$ |
13.61 |
||||||||
|
Crude Oil Differentials: |
||||||||||||
|
Dated Brent (foreign) less WTI |
$ |
0.79 |
$ |
5.80 |
||||||||
|
Dated Brent less Maya (heavy, sour) |
$ |
8.04 |
$ |
10.14 |
||||||||
|
Dated Brent less WTS (sour) |
$ |
0.94 |
$ |
6.79 |
||||||||
|
Dated Brent less ASCI (sour) |
$ |
4.27 |
$ |
5.58 |
||||||||
|
WTI less WCS (heavy, sour) |
$ |
11.34 |
$ |
11.80 |
||||||||
|
WTI less Bakken (light, sweet) |
$ |
1.56 |
$ |
5.13 |
||||||||
|
WTI less Syncrude (light, sweet) |
$ |
(4.44) |
$ |
(0.68) |
||||||||
|
Natural gas (dollars per MMBTU) |
$ |
1.98 |
$ |
2.81 |
||||||||
|
Key Operating Information |
||||||||||||
|
Production (barrels per day (bpd) in thousands) |
655.9 |
465.4 |
||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
650.1 |
467.8 |
||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
59.2 |
42.1 |
||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
4.99 |
$ |
10.57 |
||||||||
|
Refinery operating expense per barrel of throughput (Note 12) |
$ |
5.01 |
$ |
5.54 |
||||||||
|
Crude and feedstocks (% of total throughput) (Note 13) |
||||||||||||
|
Heavy |
14 |
% |
15 |
% | ||||||||
|
Medium |
50 |
% |
46 |
% | ||||||||
|
Light |
23 |
% |
27 |
% | ||||||||
|
Other feedstocks and blends |
13 |
% |
12 |
% | ||||||||
|
Total throughput |
100 |
% |
100 |
% | ||||||||
|
Yield (% of total throughput): |
||||||||||||
|
Gasoline and gasoline blendstocks |
48 |
% |
49 |
% | ||||||||
|
Distillates and distillate blendstocks |
31 |
% |
34 |
% | ||||||||
|
Lubes |
1 |
% |
1 |
% | ||||||||
|
Chemicals |
4 |
% |
3 |
% | ||||||||
|
Other |
16 |
% |
13 |
% | ||||||||
|
Total yield |
100 |
% |
100 |
% | ||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||
|
Three Months Ended | ||||||||||||
|
March 31, | ||||||||||||
|
2016 |
2015 | |||||||||||
|
Supplemental Operating Information - East Coast (Delaware City and Paulsboro) |
||||||||||||
|
Production (barrels per day (bpd) in thousands) |
312.2 |
320.5 |
||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
316.2 |
325.7 |
||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
28.8 |
29.3 |
||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
4.26 |
$ |
8.92 |
||||||||
|
Refinery operating expense per barrel of throughput (Note 12) |
$ |
5.18 |
$ |
5.54 |
||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||
|
Heavy |
9 |
% |
22 |
% | ||||||||
|
Medium |
66 |
% |
46 |
% | ||||||||
|
Light |
10 |
% |
16 |
% | ||||||||
|
Other feedstocks and blends |
15 |
% |
16 |
% | ||||||||
|
Total throughput |
100 |
% |
100 |
% | ||||||||
|
Yield (% of total throughput): |
||||||||||||
|
Gasoline and gasoline blendstocks |
47 |
% |
48 |
% | ||||||||
|
Distillates and distillate blendstocks |
26 |
% |
33 |
% | ||||||||
|
Lubes |
3 |
% |
2 |
% | ||||||||
|
Chemicals |
2 |
% |
2 |
% | ||||||||
|
Other |
21 |
% |
13 |
% | ||||||||
|
Total yield |
99 |
% |
98 |
% | ||||||||
|
Supplemental Operating Information - Mid-Continent (Toledo) |
||||||||||||
|
Production (bpd in thousands) |
160.1 |
144.9 |
||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
157.7 |
142.1 |
||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
14.4 |
12.8 |
||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
4.12 |
$ |
14.36 |
||||||||
|
Refinery operating expense per barrel of throughput (Note 12) |
$ |
4.93 |
$ |
5.56 |
||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||
|
Medium |
40 |
% |
45 |
% | ||||||||
|
Light |
57 |
% |
53 |
% | ||||||||
|
Other feedstocks and blends |
3 |
% |
2 |
% | ||||||||
|
Total throughput |
100 |
% |
100 |
% | ||||||||
|
Yield (% of total throughput): |
||||||||||||
|
Gasoline and gasoline blendstocks |
52 |
% |
51 |
% | ||||||||
|
Distillates and distillate blendstocks |
37 |
% |
37 |
% | ||||||||
|
Chemicals |
6 |
% |
5 |
% | ||||||||
|
Other |
7 |
% |
9 |
% | ||||||||
|
Total yield |
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 | ||||||||||
|
March 31, | ||||||||||
|
2016 |
2015 | |||||||||
|
Supplemental Operating Information - Gulf Coast (Chalmette) |
||||||||||
|
Production (bpd in thousands) |
183.6 |
N/A | ||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
176.2 |
N/A | ||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
16.0 |
N/A | ||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
7.07 |
N/A | |||||||
|
Refinery operating expense per barrel of throughput (Note 12) |
$ |
4.80 |
N/A | |||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||
|
Heavy |
37 |
% |
N/A | |||||||
|
Medium |
29 |
% |
N/A | |||||||
|
Light |
17 |
% |
N/A | |||||||
|
Other feedstocks and blends |
17 |
% |
N/A | |||||||
|
Total throughput |
100 |
% |
N/A | |||||||
|
Yield (% of total throughput): |
||||||||||
|
Gasoline and gasoline blendstocks |
48 |
% |
N/A | |||||||
|
Distillates and distillate blendstocks |
32 |
% |
N/A | |||||||
|
Chemicals |
6 |
% |
N/A | |||||||
|
Other |
15 |
% |
N/A | |||||||
|
Total yield |
101 |
% |
N/A | |||||||
|
See Footnotes to Earnings Release Tables | ||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||||||||
|
GROSS REFINING MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note 11) | ||||||||||||||||||||||
|
(Unaudited, in thousands, except per barrel amounts) | ||||||||||||||||||||||
|
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||
|
March 31, 2016 |
March 31, 2015 |
|||||||||||||||||||||
|
RECONCILIATION OF GROSS MARGIN TO GROSS REFINING MARGIN |
$ |
per barrel of |
$ |
per barrel of |
||||||||||||||||||
|
Gross margin |
$ |
38,855 |
$ |
0.66 |
$ |
216,328 |
$ |
5.14 |
||||||||||||||
|
Less: Affiliate revenues of PBFX |
(36,549) |
(0.62) |
(30,565) |
(0.73) |
||||||||||||||||||
|
Add: Affiliate cost of sales of PBFX |
2,661 |
0.05 |
3,740 |
0.09 |
||||||||||||||||||
|
Add: Refinery operating expenses |
296,639 |
5.01 |
233,377 |
5.54 |
||||||||||||||||||
|
Add: Refinery depreciation |
52,596 |
0.89 |
43,216 |
1.03 |
||||||||||||||||||
|
Gross refining margin |
$ |
354,202 |
$ |
5.99 |
$ |
466,096 |
$ |
11.07 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
(59,063) |
(1.00) |
(21,208) |
(0.50) |
||||||||||||||||||
|
Gross refining margin excluding special items (Note 4) |
$ |
295,139 |
$ |
4.99 |
$ |
444,888 |
$ |
10.57 |
||||||||||||||
|
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 U.S. GAAP measures, are useful to investors to compare the company's results across the periods presented and facilitates an understanding of the company's operating results. The company also uses these measures to evaluate its operating performance. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. The differences between adjusted fully-converted and U.S. GAAP results are explained in footnotes 2 through 7. | ||||||||||||||
|
(2) Represents the elimination of the noncontrolling interest associated with the ownership by the members of PBF Energy Company LLC other than PBF Energy Inc., as if such members had fully exchanged their Series A Units for shares of PBF Energy's Class A common stock. | ||||||||||||||
|
(3) Represents an adjustment to reflect the Company's statutory corporate tax rate of approximately 39.6% and 40.2% for the 2016 and 2015 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 2. | ||||||||||||||
|
(4) The non-GAAP measures presented include adjusted fully-converted net income excluding special items, income from continuing operations excluding special items, EBITDA excluding special items, and gross refining margin excluding special items. The special items for the periods presented relate to a lower of cost or market adjustment (LCM). 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. In addition, the special items shown in the 2015 balance sheet include changes in the tax receivable agreement liability reflecting a benefit attributable to changes in our obligation under the tax receivable agreement due to factors outside of our control such as changes in tax rates. Although we believe that non-GAAP financial measures excluding the impact of special items provide useful supplemental information to investors regarding the results and performance of our business and allow for more useful period-over-period comparisons, such non-GAAP measures should only be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP. | ||||||||||||||
|
(5) During the first quarter of 2016, the Company recorded an adjustment to value its inventories to the lower of cost or market which resulted in a net pre-tax benefit of approximately $59.1 million reflecting the change in the lower of cost or market inventory reserve from $1,117.3 million at December 31, 2015 to $1,058.3 million at March 31, 2016. During the three months ended March 31, 2015, the Company recorded an adjustment to value its inventories to the lower of cost or market which resulted in a net pre-tax charge of $21.2 million reflecting the change in the lower of cost or market inventory reserve from $690.1 million at December 31, 2014 to $668.9 million at March 31, 2015.The net impact of these LCM inventory adjustments are included in the Refining segment's operating income, but are excluded from the operating results presented in the table in order to make such information comparable between periods. Income taxes related to the net LCM adjustment were recalculated using the Company's statutory corporate tax rate of approximately 39.6% and 40.2%, respectively, for the three months ended March 31, 2016 and 2015. | ||||||||||||||
|
(6) Represents weighted-average diluted shares outstanding assuming the full exchange of common stock equivalents, including options and warrants for PBF LLC Series A Units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method (to the extent the impact of such exchange would not be anti-dilutive). Common stock equivalents excludes the effects of options to purchase 4,945,360 and 2,869,500 shares of PBF Energy Class A common stock because they are anti-dilutive for the three months ended March 31, 2016 and March 31, 2015, respectively. | ||||||||||||||
|
(7) Represents an adjustment to weighted-average diluted shares to assume the full exchange of existing PBF LLC Series A Units as described in footnote 2 above if not included in the diluted weighted-average shares outstanding as described in footnote 6 above. | ||||||||||||||
|
(8) EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Adjusted EBITDA are supplemental measures of performance that are not required by, or presented in accordance with, GAAP. We use these non-GAAP financial measures as a supplement to our GAAP results in order to provide a more complete understanding of the factors and trends affecting our business. EBITDA and Adjusted EBITDA are measures of operating performance that are not defined by GAAP and should not be considered substitutes for net income as determined in accordance with GAAP. In addition, because EBITDA and Adjusted EBITDA are not calculated in the same manner by all companies, they are not necessarily comparable to other similarly titled measures used by other companies. EBITDA and Adjusted EBITDA have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. | ||||||||||||||
|
(9) We operate in two reportable segments; Refining and Logistics. Our operations that are not included in the Refining and Logistics segments are included in Corporate. As of March 31, 2016, the Refining segment includes the operations of our oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio and New Orleans, Louisiana. The Logistics segment includes the operations of PBF Logistics LP ("PBFX"), a growth-oriented master limited partnership which owns and operates logistics assets, currently consisting of the Delaware City Rail Terminal, the Toledo Truck Terminal, the DCR West Rack, the Toledo Storage Facility and the Delaware City Products Pipeline and Truck Rack. Prior to the PBFX's initial public offering and subsequent acquisitions, PBFX's assets were operated within the refining operations of PBF Energy's Delaware City and Toledo refineries. The assets did not generate third party or intra-entity revenue, other than certain intra-entity revenue recognized by the Delaware City Products Pipeline and Truck Rack, and were not considered to be a separate reportable segment. All intercompany transactions are eliminated in our consolidated financial statements and are included in Eliminations, as applicable. | ||||||||||||||
|
(10) As reported by Platts. | ||||||||||||||
|
(11) Gross refining margin and gross refining margin per barrel of throughput are non-GAAP measures because they exclude refinery operating expenses, refinery depreciation and amortization and gross margin of PBFX. Gross refining margin per barrel is gross refining margin, divided by total crude and feedstocks throughput. We believe they are important measures of operating performance and they provide useful information to investors because gross refining margin per barrel is a better metric comparison to the industry refining margin benchmarks shown in the Market Indicators Tables, as the industry benchmarks do not include a charge for refinery operating expenses and depreciation. Other companies in our industry may not calculate gross refining margin and gross refining margin per barrel in the same manner. | ||||||||||||||
|
(12) Represents refinery operating expenses, excluding depreciation and amortization, divided by total crude oil and feedstocks throughput. | ||||||||||||||
|
(13) We define heavy crude oil as crude oil with American Petroleum Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with API gravity between 24 and 35 degrees. We define light crude oil as crude oil with API gravity higher than 35 degrees. | ||||||||||||||
|
(14) The 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. | ||||||||||||||
SOURCE PBF Energy Inc.
Article Date
4/28/2016PBF Logistics LP Announces Exercise of Option to Purchase Additional Units
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., March 31, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) (the "Partnership") announced today that the underwriter of its previously announced registered underwritten public offering of 2,500,000 common units representing limited partner interests has exercised in full its option to purchase an additional 375,000 common units. Total gross proceeds (before underwriter's discounts and commissions) for the full 2,875,000 common units will be approximately $53 million. The offering is expected to close on April 5, 2016, subject to customary closing conditions.
The Partnership expects to use the net proceeds from this offering, including from the exercise in full of its option to purchase additional units, to fund a portion of the purchase price for the previously announced acquisition of four refined product terminals located in the greater Philadelphia region from an affiliate of Plains All American Pipeline, L.P. for total cash consideration of $100.0 million, and, pending such use, to reduce indebtedness outstanding under its revolving credit facility and for general partnership purposes. The closing of the acquisition is not conditioned on the closing of the offering, and the offering is not conditioned on the closing of the acquisition.
UBS Securities LLC is the underwriter of the offering. The offering of these securities is being made by means of a prospectus supplement and the accompanying prospectus only, copies of which may be obtained, when available, from UBS Investment Bank, Attn: Prospectus Dept., 1285 Avenue of the Americas, New York, NY 10019, Phone: (888) 827-7275.
These documents may also be obtained free of charge when they are available from the SEC's website at www.sec.gov.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities described herein, nor shall there be any sale of these securities, in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offering will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the offering not closing, the securities markets generally, the impact of adverse market conditions impacting the Partnership's logistics and other assets, the Partnership's plans for financing the proposed acquisition, the conditions to the closing of the proposed acquisition and the possibility that the proposed acquisition will not close, and other risks inherent in the Partnership's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see the Partnership's filings with the SEC including its most recent Annual Report on Form 10-K. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy (NYSE: PBF) to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
SOURCE PBF Logistics LP
Article Date
3/31/20163/31/2016 - PBF Logistics LP Prices Public Offering of 2,500,000 Common Units Representing Limited Partner Interests
PBF Logistics LP Prices Public Offering of 2,500,000 Common Units Representing Limited Partner Interests
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., March 31, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") announced today that its previously announced registered underwritten public offering of 2,500,000 common units representing limited partner interests has been priced for total gross proceeds (before underwriter's discounts and commissions) of approximately $46 million. The underwriter has offered the common units at prevailing market prices or otherwise from time to time through the New York Stock Exchange, in the over-the-counter-market or through negotiated transactions. The underwriter has a 30-day option to purchase up to 375,000 additional common units. The offering is expected to close on April 5, 2016, subject to customary closing conditions.
The Partnership expects to use the net proceeds from this offering to fund a portion of the purchase price for the previously announced acquisition of four refined product terminals located in the greater Philadelphia region from an affiliate of Plains All American Pipeline, L.P. for total cash consideration of $100.0 million, and, pending such use, to reduce indebtedness outstanding under its revolving credit facility and for general partnership purposes. The closing of the acquisition is not conditioned on the closing of the offering, and the offering is not conditioned on the closing of the acquisition.
UBS Securities LLC is the underwriter of the offering. The offering of these securities is being made by means of a prospectus supplement and the accompanying prospectus only, copies of which may be obtained, when available, from UBS Investment Bank, Attn: Prospectus Dept., 1285 Avenue of the Americas, New York, NY 10019, Phone: (888) 827-7275.
These documents may also be obtained free of charge when they are available from the SEC's website at www.sec.gov.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities described herein, nor shall there be any sale of these securities, in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offering will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the offering not closing, the securities markets generally, the impact of adverse market conditions impacting the Partnership's logistics and other assets, the Partnership's plans for financing the proposed acquisition, the conditions to the closing of the proposed acquisition and the possibility that the proposed acquisition will not close, and other risks inherent in the Partnership's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see the Partnership's filings with the SEC including its most recent Annual Report on Form 10-K. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy (NYSE: PBF) to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
SOURCE PBF Logistics LP
Article Date
3/31/20163/30/2016 - PBF Logistics LP Announces Public Offering of Common Units Representing Limited Partner Interests
PBF Logistics LP Announces Public Offering of Common Units Representing Limited Partner Interests
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., March 30, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") announced the commencement of a registered underwritten public offering of 2,500,000 common units representing limited partner interests in the Partnership pursuant to an effective shelf registration statement on Form S-3 previously filed with the Securities and Exchange Commission (the "SEC"). The underwriter will be granted a 30-day option to purchase up to 375,000 additional common units.
The Partnership plans to use the net proceeds from this offering to fund a portion of the purchase price for the previously announced acquisition of four refined product terminals located in the greater Philadelphia region from an affiliate of Plains All American Pipeline, L.P. for total cash consideration of $100.0 million, and, pending such use, to reduce indebtedness outstanding under its revolving credit facility and for general partnership purposes. The closing of the acquisition is not conditioned on the closing of the offering, and the offering is not conditioned on the closing of the acquisition.
UBS Securities LLC is the underwriter of the offering. The offering of these securities is being made by means of a prospectus supplement and the accompanying prospectus only, copies of which may be obtained from UBS Investment Bank, Attn: Prospectus Dept., 1285 Avenue of the Americas, New York, NY 10019, Phone: (888) 827-7275.
These documents may also be obtained free of charge when they are available from the SEC's website at www.sec.gov.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any of the securities described herein, nor shall there be any sale of these securities, in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. The offering will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting the Partnership's logistics and other assets, the Partnership's plans for financing the proposed acquisition, the conditions to the closing of the proposed acquisition and the possibility that the proposed acquisition will not close, and other risks inherent in the Partnership's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see the Partnership's filings with the SEC including its most recent Annual Report on Form 10-K. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
SOURCE PBF Logistics LP
Article Date
3/30/2016PBF Logistics to Release First Quarter 2016 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., March 23, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX) announced today that it will release its earnings for the first quarter 2016 on Thursday, April 28, 2016. The company will host a conference call and webcast regarding first quarter results and other business matters on Thursday, April 28, 2016, at 11:00 a.m. ET.
The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be heard by dialing (877) 876-9176 or (785) 424-1667, conference ID: PBFXQ116. The audio replay will be available two hours after the end of the call through May 14, 2016, by dialing (800) 695-0671 or (402) 220-1397.
About PBF Logistics LP
PBF Logistics LP (NYSE:PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
SOURCE PBF Logistics LP
Article Date
3/23/2016PBF Energy to Release First Quarter 2016 Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., March 23, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) announced today that it will release its earnings for the first quarter 2016 on Thursday, April 28, 2016. The company will host a conference call and webcast regarding first quarter results and other business matters on Thursday, April 28, 2016, at 8:30 a.m. ET.
The call is being webcast and can be accessed at PBF Energy's website, http://www.pbfenergy.com. The call can also be heard by dialing (877) 876-9177 or (785) 424-1666, conference ID: PBFQ116. The audio replay will be available two hours after the end of the call through May 14, 2016, by dialing (800) 688-7036 or (402) 220-1346.
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 Delaware, New Jersey, Ohio and Louisiana. 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 53.7% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
3/23/2016PBF Energy to Attend Scotia Howard Weil Energy Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., March 16, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be presenting to and meeting with investors at the Scotia Howard Weil Energy Conference on March 21 and 22, 2016.
The company's meeting materials will be available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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 Delaware, New Jersey, Ohio and Louisiana. 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 53.7% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
3/16/20163/4/2016 - PBF Logistics Filed 2015 Form 10-K
PBF Logistics Filed 2015 Form 10-K
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., March 4, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K for the fiscal year ended December 31, 2015. The filing can be viewed on the Company's website at www.pbflogistics.com.
Upon written request, limited partners may receive, free of charge, a hard copy of the Partnership's Annual Report on Form 10-K (including complete audited financial statements). Requests should be communicated in writing to PBF Logistics LP, Attention: Investor Relations, at 1 Sylvan Way, 2nd Floor, Parsippany, New Jersey 07054.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
SOURCE PBF Logistics LP
Article Date
3/4/2016PBF Logistics to Attend Barclays MLP Corporate Access Day
Source: PR Newswire
PARSIPPANY, N.J., Feb. 26, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that the partnership's management will be participating in meetings with investors at the Barclays MLP Corporate Access Day to be held in New York City on March 2, 2016.
The company's meeting materials will be available on the Investor Relations section of the PBF Logistics LP website at www.pbflogistics.com.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
SOURCE PBF Logistics LP
Article Date
2/26/2016PBF Energy to Attend Bank of America Merrill Lynch Refining Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Feb. 26, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that the company's management will be presenting to and participating in meetings with investors at the Bank of America Merrill Lynch Refining Conference to be held in New York City on March 3, 2016.
The company's meeting materials will be available on the Investor Relations section of the PBF Energy website at www.pbfenergy.com.
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 Delaware, New Jersey, Ohio and Louisiana. 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 53.7% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
2/26/20162/11/2016 - PBF Energy Announces Retirement of Director Jefferson F. Allen; Elects Two New Board Members
PBF Energy Announces Retirement of Director Jefferson F. Allen; Elects Two New Board Members
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Feb. 11, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that Jefferson F. Allen will not seek re-election as a director at the end of his current term which ends at the 2016 Annual Meeting of Stockholders. Mr. Allen's decision not to seek re-election was not the result of any disagreement with the Company or the Board of Directors.
Thomas D. O'Malley, Executive Chairman of PBF Energy commented, "Jay and I have been friends and business partners for more than 30 years across multiple successful ventures including both Premcor and Tosco. His business acumen, professionalism and foresight have been invaluable to PBF as he has been a key factor in the development of the company. His leadership of the PBF Board has been exemplary and we are grateful for his many contributions."
CEO Tom Nimbley said, "As a founding member of PBF Energy's Board of Directors, Lead Director and the Chairman of the Audit Committee, Jay has played a critical role in building PBF Energy from the ground up. I have had the privilege of working with Jay since our time at Tosco in the early nineties and he has been, through his mentoring and leadership, a trusted partner to me and the executive management team at PBF."
On February 8, 2016, the Board of Directors elected Robert J. Lavinia and William Hantke as independent members of its Board of Directors. The company's Board of Directors now consists of eleven members, including nine independent directors.
Mr. O'Malley continued, "We are very pleased to have Bill and Bob join PBF's Board of Directors. Bill brings a wealth of energy sector and financial expertise to PBF and Bob brings with him extensive experience in the independent refining sector. I expect that they will both make meaningful contributions and be valued additions to the PBF Energy Board."
Mr. Hantke brings to PBF significant experience as a financial expert and board member of public entities, including those in the refining sector. From 2002 to 2005, Mr. Hantke served as the Executive Vice President and Chief Financial Officer of Premcor, Inc. Prior to his tenure at Premcor, Mr. Hantke served as the Corporate Vice President of Development of Tosco Corporation from 1999 to 2001. From 1993 to 1999, Mr. Hantke served as the Corporate Controller of Tosco, and from 1990 to 1993, he served as the Chief Financial Officer of Seminole Fertilizer Corporation, a wholly-owned subsidiary of Tosco. Mr. Hantke has served as a director of NRG Energy since 2006 and is currently the chair of its audit committee and a member of its compensation committee. He has previously served as a director of Texas Genco, LLC, Process Energy Solutions (where he was non-executive chairman) and a director and vice-chairman of NTR Acquisition Co., a petroleum refining acquisition vehicle.
Mr. Lavinia brings to PBF industry-specific experience as an executive and board member of a public refining company. He began his career at the Gulf Oil Corporation and Phibro Energy Corporation. In 1985, he took over as President and Chief Executive Officer of Hill Petroleum Company, Phibro's refining division. In 1992, he joined Tosco Corporation, where he served as a Senior Vice President and the President of Tosco Marketing with over 6,000 gas and convenience stores in 32 states with more than 20,000 employees. From 2002 to 2006, he served on the board of Transcor SA, a Belgium-based company with trading operations around the world, and from 2005-2006, he served as Chairman of Pasadena Refining, a Transcor subsidiary. In 2007, he joined Petroplus Holdings AG, the largest European independent refining and wholesale marketing company and he became the CEO in March 2008. In September 2009, he retired from Petroplus and remained a board member until 2012. Mr. Lavinia was formerly a director at Big West Oil.
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, customers and vendors; risks 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 Delaware, New Jersey, Ohio and Louisiana. 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 53.7% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
2/11/2016PBF Logistics Increases Quarterly Cash Distribution to $0.41 per Unit and Announces Fourth Quarter Earnings Results
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Feb. 11, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") announced today fourth quarter 2015 net income attributable to the partnership of $17.3 million, or $0.50 per limited partner unit. During the fourth quarter, the Partnership generated earnings before interest, income taxes, depreciation, and amortization (EBITDA) of $26.1 million, which includes a one-time charge of $1.0 million related to employee expenses, and distributable cash flow of $20.3 million. For the year-ended December 31, 2015, the Partnership reported net income of $73.8 million, or $2.18 per limited partner unit.
"The fourth quarter was a solid operational quarter for PBFX and we are pleased to announce our fifth consecutive distribution increase since our initial public offering which we believe demonstrates our commitment to the longer-term growth of the Partnership. Despite the overall market turbulence in 2015, PBF Logistics performed well and we executed on our goals. In particular, we successfully put in place a long-term capital structure by issuing $350 million in senior notes and diversified the revenue base of the Partnership through the Delaware City Products Pipeline and Truck Rack acquisition," said PBF Logistics GP LLC Chief Executive Officer, Tom Nimbley.
As of December 31, 2015, the Partnership had liquidity of $317.2 million, including $18.7 million in cash and cash equivalents and $298.5 million of capacity under its existing revolving credit facility. The Partnership intends to use its financial resources to fund organic growth projects at the Partnership and future acquisitions.
East Coast Terminals Acquisition
On February 2, 2016, the Partnership announced that a wholly-owned subsidiary has entered into an agreement to acquire four refined product terminals located in the greater Philadelphia region (the "East Coast Terminals") from an affiliate of Plains All American Pipeline, L.P. for a total consideration of $100.0 million. The acquisition is expected to close in the second quarter of 2016, subject to customary closing conditions.
"The acquisition of the East Coast Terminals is PBFX's first third-party acquisition, will add meaningful third-party, fee-based revenue and represents an attractive acquisition multiple. The addition of the East Coast Terminals will increase the Partnership's total capacity by over 100% to approximately 8.1 million shell barrels and diversify its customer and asset base. We expect the acquisition to be accretive to distributable cash flow upon closing," commented Mr. Nimbley. "PBF Logistics has been able to execute its strategy and deliver growth to our unitholders."
The East Coast Terminals are expected to allow PBF Logistics to leverage its expanded footprint and capitalize on commercial opportunities with new customers and leverage opportunities with PBF Energy due to the close proximity of PBF Energy's East Coast refining system. In conjunction with the transaction, the Partnership expects to invest approximately $5 million, from cash on hand, to improve infrastructure in order to increase throughput capability at the East Coast Terminals. Based on a total transaction cost of $105 million, including the $5 million investment and synergy opportunities, the Partnership expects the East Coast Terminals to generate approximately $15 million of pro forma EBITDA, of which approximately two-thirds is expected to be from third-party customers.
PBF Logistics Announces Quarterly Distribution
The Board of Directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.41 per unit. The distribution is payable on March 8, 2016, to unitholders of record at the close of business on February 22, 2016.
This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.
Non-GAAP Financial Measures
PBF Logistics LP Reconciliation of Amounts under US GAAP to Forecasted EBITDA (unaudited, in millions)
Reconciliation of East Coast Terminals Forecasted
Net Income to pro forma EBITDA:
|
Forecasted net income |
$ |
8.7 |
|
Add: Depreciation and amortization expense |
5.3 | |
|
Add: Interest expense, net and other financing costs |
1.0 | |
|
Pro forma EBITDA |
$ |
15.0 |
This earnings release, and the discussion during the management conference call, may include references to non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures including, but not limited to, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Distributable Cash Flow. PBFX's management believes that non-GAAP financial measures provide useful information about the Partnership's operating performance, financial results and the amount of cash generated by the Partnership's operations and the amount available for distribution to its unitholders. 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. PBFX'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 financial measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
The Partnership's senior management will host a conference call and webcast regarding earnings results and other business matters on Thursday, February 11, 2016, at 11:00 a.m. ET. The call can also be heard by dialing (877) 876-9177 or (785) 424-1666, conference ID: PBFXQ415. The audio replay will be available two hours after the end of the call through February 27, 2016, by dialing (800) 388-5895 or (402) 220-1110. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com.
Forward-Looking Statements
This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, including risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets and other risks inherent in PBFX's business including but not limited to ability to consummate pending acquisitions, the timing for the closing of any such acquisition and our plans for financing any acquisition; unforeseen liabilities associated with any pending acquisition; inability to successfully integrate acquired assets or other acquired businesses or operations; effects of existing and future laws and governmental regulations, including environmental, health and safety regulations; and various other factors. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. PBFX assumes no responsibility or obligation to update forward-looking statements except as may be required by law.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Results of Operations (Unaudited)
Factors Affecting Comparability
The following tables present EBITDA (as defined below) and related operational information of PBF Logistics LP ("PBFX" or the "Partnership") for the three months and years ended December 31, 2015 and 2014. The financial information presented contains the financial results of PBF MLP Predecessor (the "Predecessor"), our predecessor for accounting purposes, for periods presented through May 13, 2014. The Predecessor includes the financial results of a light crude oil rail unloading terminal at PBF Energy Inc.'s Delaware City refinery (which we refer to as the "DCR Rail Terminal"), and a crude oil truck unloading terminal at the PBF Energy Inc.'s Toledo refinery (which we refer to as the "Toledo Truck Terminal") which were acquired from subsidiaries of PBF Energy Inc. ("PBF Energy") during our initial public offering, completed on May 14, 2014 (the "Offering").
The financial information contained herein of the Predecessor and PBFX has been retrospectively adjusted to include the historical results of a heavy crude oil rail unloading terminal at PBF Energy's Delaware City refinery (which we refer to as the "DCR West Rack") prior to its acquisition by PBFX on September 30, 2014, a tank farm and related facilities located at PBF Energy's Toledo refinery, including a propane storage and loading facility (which we collectively refer to as the "Toledo Storage Facility") prior to its acquisition by PBFX on December 11, 2014, and a products pipeline (the "Delaware City Products Pipeline"), truck rack and related facilities located at PBF Energy's Delaware city refinery (which we collectively refer to as the "Delaware City Products Pipeline and Truck Rack") prior to its acquisition by PBFX on May 14, 2015. The DCR West Rack, Toledo Storage Facility, and Delaware City Products Pipeline and Truck Rack were acquired from subsidiaries of our indirect parent company, PBF Energy (the acquisitions are collectively referred to as the "Acquisitions from PBF"). The results of the DCR Rail Terminal, Toledo Truck Rack, DCR West Rack, the propane loading facility at the Toledo Storage Facility and the Delaware City Products Pipeline and Truck Rack are included in the Transportation and Terminaling segment. The tank farm and related facilities at the Toledo Storage Facility are included in the Storage segment.
Our Predecessor generally recognized only the costs and did not record revenue for transactions with PBF Energy prior to completion of the Offering and Acquisitions from PBF, with the exception of the Delaware City Products Pipeline. Affiliate revenues have been recorded for all of our assets subsequent to the commencement of the commercial agreements with PBF Energy upon completion of the Offering and Acquisitions from PBF. As a result, the information included in the following tables is not necessarily comparable on a year-over-year basis.
Non-GAAP Financial Measures
We define EBITDA as net income (loss) before interest expense, income tax expense, depreciation and amortization expense. We define distributable cash flow as EBITDA plus non-cash unit-based compensation expense, less net cash paid for interest, maintenance capital expenditures and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is distributable cash flow divided by total distribution declared. Distributable cash flow and EBITDA are not measures prescribed by U.S. generally accepted accounting principles ("GAAP").
While EBITDA and distributable cash flow are not measures prescribed by U.S. GAAP ("non-GAAP"), they are supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
We believe that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA and distributable cash flow should not be considered alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some but not all items that affect net income and net cash provided by operating activities.
We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance, as it provides investors with an enhanced perspective of the operating performance of our assets and the cash our business is generating. EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP.
These non-GAAP financial metrics should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial metrics may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.
|
PBF LOGISTICS LP | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
|
(Unaudited, in thousands, except unit and per unit data) | ||||||||||||||||||||
|
Three months ended December 31, |
Year ended December 31, | |||||||||||||||||||
|
2015 |
2014* |
2015 |
2014 | |||||||||||||||||
|
Revenue from affiliates (a) |
$ |
37,306 |
$ |
29,994 |
$ |
142,102 |
$ |
59,403 |
||||||||||||
|
Costs and expenses: |
||||||||||||||||||||
|
Operating and maintenance expenses |
7,090 |
9,331 |
25,255 |
26,215 |
||||||||||||||||
|
General and administrative expenses (a) (b) |
4,091 |
3,073 |
13,889 |
8,201 |
||||||||||||||||
|
Depreciation and amortization expense |
1,663 |
1,567 |
6,582 |
4,473 |
||||||||||||||||
|
12,844 |
13,971 |
45,726 |
38,889 |
|||||||||||||||||
|
Income from operations |
24,462 |
16,023 |
96,376 |
20,514 |
||||||||||||||||
|
Other income (expense): |
||||||||||||||||||||
|
Interest expense, net |
(6,765) |
(1,339) |
(19,939) |
(2,307) |
||||||||||||||||
|
Amortization of loan fees |
(424) |
(150) |
(1,315) |
(365) |
||||||||||||||||
|
Net income |
17,273 |
14,534 |
75,122 |
17,842 |
||||||||||||||||
|
Less: Net (loss) income attributable to Predecessor |
— |
(705) |
1,274 |
(12,122) |
||||||||||||||||
|
Limited partners' interest in net income attributable to the Partnership |
$ |
17,273 |
$ |
15,239 |
$ |
73,848 |
$ |
29,964 |
||||||||||||
|
Net income per limited partner unit: |
||||||||||||||||||||
|
Common units - basic |
$ |
0.50 |
$ |
0.47 |
$ |
2.18 |
$ |
0.94 |
||||||||||||
|
Common units - diluted |
$ |
0.50 |
$ |
0.47 |
$ |
2.18 |
$ |
0.94 |
||||||||||||
|
Subordinated units - basic and diluted |
$ |
0.50 |
$ |
0.47 |
$ |
2.18 |
$ |
0.93 |
||||||||||||
|
Weighted-average limited partner units outstanding: |
||||||||||||||||||||
|
Common units - basic |
18,466,598 |
16,611,075 |
17,956,152 |
16,167,802 |
||||||||||||||||
|
Common units - diluted |
18,466,855 |
16,611,952 |
17,956,152 |
16,169,827 |
||||||||||||||||
|
Subordinated units - basic and diluted |
15,886,553 |
15,886,553 |
15,886,553 |
15,886,553 |
||||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
* Prior-period financial information has been retrospectively adjusted for the acquisition of the Delaware City Products Pipeline and Truck Rack. | ||||||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||
|
Year Ended December 31, 2015 | ||||||||||||||||
|
PBF Logistics LP |
Delaware City |
Consolidated Results | ||||||||||||||
|
Revenue from affiliates (a) |
$ |
138,719 |
$ |
3,383 |
$ |
142,102 |
||||||||||
|
Costs and expenses: |
||||||||||||||||
|
Operating and maintenance expenses |
23,890 |
1,365 |
25,255 |
|||||||||||||
|
General and administrative expenses (a) (b) |
13,408 |
481 |
13,889 |
|||||||||||||
|
Depreciation and amortization expense |
6,306 |
276 |
6,582 |
|||||||||||||
|
43,604 |
2,122 |
45,726 |
||||||||||||||
|
Income from operations |
95,115 |
1,261 |
96,376 |
|||||||||||||
|
Other income (expense): |
||||||||||||||||
|
Interest expense, net |
(19,952) |
13 |
(19,939) |
|||||||||||||
|
Amortization of loan fees |
(1,315) |
— |
(1,315) |
|||||||||||||
|
Net income |
73,848 |
1,274 |
75,122 |
|||||||||||||
|
Less: Net income attributable to Predecessor |
— |
1,274 |
1,274 |
|||||||||||||
|
Limited partners' interest in net income attributable to the Partnership |
$ |
73,848 |
$ |
— |
$ |
73,848 |
||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||||||
|
CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||||||||||
|
Three months ended December 31, 2014 | ||||||||||||||||||||||||
|
PBF Logistics |
DCR West Rack |
Toledo Storage Facility |
Delaware City |
Consolidated Results | ||||||||||||||||||||
|
Revenue from affiliates (a) |
$ |
27,304 |
$ |
— |
$ |
— |
$ |
2,690 |
$ |
29,994 |
||||||||||||||
|
Costs and expenses: |
||||||||||||||||||||||||
|
Operating and maintenance expenses |
6,712 |
— |
1,563 |
1,056 |
9,331 |
|||||||||||||||||||
|
General and administrative expenses (a) (b) |
2,943 |
— |
25 |
105 |
3,073 |
|||||||||||||||||||
|
Depreciation and amortization expense |
917 |
— |
465 |
185 |
1,567 |
|||||||||||||||||||
|
10,572 |
— |
2,053 |
1,346 |
13,971 |
||||||||||||||||||||
|
Income (loss) from operations |
16,732 |
— |
(2,053) |
1,344 |
16,023 |
|||||||||||||||||||
|
Other income (expense): |
||||||||||||||||||||||||
|
Interest expense, net |
(1,343) |
— |
— |
4 |
(1,339) |
|||||||||||||||||||
|
Amortization of loan fees |
(150) |
— |
— |
— |
(150) |
|||||||||||||||||||
|
Net income (loss) |
15,239 |
— |
(2,053) |
1,348 |
14,534 |
|||||||||||||||||||
|
Less: Net (loss) income attributable to Predecessor |
— |
— |
(2,053) |
1,348 |
(705) |
|||||||||||||||||||
|
Limited partners' interest in net income attributable to the Partnership |
$ |
15,239 |
$ |
— |
$ |
— |
$ |
— |
$ |
15,239 |
||||||||||||||
|
Year Ended December 31, 2014 | ||||||||||||||||||||||||
|
PBF Logistics LP** |
DCR West Rack |
Toledo Storage Facility |
Delaware City Products Pipeline and Truck Rack |
Consolidated Results | ||||||||||||||||||||
|
Revenue from affiliates (a) |
$ |
49,830 |
$ |
— |
$ |
— |
$ |
9,573 |
$ |
59,403 |
||||||||||||||
|
Costs and expenses: |
||||||||||||||||||||||||
|
Operating and maintenance expenses |
11,710 |
2,305 |
8,349 |
3,851 |
26,215 |
|||||||||||||||||||
|
General and administrative expenses (a) (b) |
7,527 |
111 |
128 |
435 |
8,201 |
|||||||||||||||||||
|
Depreciation and amortization expense |
1,815 |
263 |
1,653 |
742 |
4,473 |
|||||||||||||||||||
|
21,052 |
2,679 |
10,130 |
5,028 |
38,889 |
||||||||||||||||||||
|
Income (loss) from operations |
28,778 |
(2,679) |
(10,130) |
4,545 |
20,514 |
|||||||||||||||||||
|
Other income (expense): |
||||||||||||||||||||||||
|
Interest expense, net |
(2,312) |
— |
— |
5 |
(2,307) |
|||||||||||||||||||
|
Amortization of loan fees |
(365) |
— |
— |
— |
(365) |
|||||||||||||||||||
|
Net income (loss) |
26,101 |
(2,679) |
(10,130) |
4,550 |
17,842 |
|||||||||||||||||||
|
Less: Net (loss) income attributable to Predecessor |
(3,863) |
(2,679) |
(10,130) |
4,550 |
(12,122) |
|||||||||||||||||||
|
Limited partners' interest in net income attributable to the Partnership |
$ |
29,964 |
$ |
— |
$ |
— |
$ |
— |
$ |
29,964 |
||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||||||
|
** The information presented includes the results of operations of the Predecessor for periods presented through May 13, 2014 and of PBFX for the period beginning May 14, 2014, the date PBFX commenced operations. | ||||||||||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three months ended December 31, |
Year ended December 31, | |||||||||||||||||||
|
2015 |
2014* |
2015 |
2014 | |||||||||||||||||
|
Key Operating Information: |
||||||||||||||||||||
|
Throughput (barrels per day ("bpd")) (d) |
||||||||||||||||||||
|
Delaware City Rail Terminal |
13.1 |
75.6 |
33.3 |
74.4 |
||||||||||||||||
|
DCR West Rack |
25.1 |
51.2 |
20.1 |
51.2 |
||||||||||||||||
|
Toledo Truck Terminal |
21.1 |
6.6 |
15.0 |
9.2 |
||||||||||||||||
|
Toledo Storage Facility (Propane Loading) |
4.7 |
3.9 |
4.4 |
3.9 |
||||||||||||||||
|
Delaware Products Pipeline |
48.1 |
56.1 |
46.1 |
51.3 |
||||||||||||||||
|
Delaware Truck Rack |
31.5 |
N/A |
33.2 |
N/A |
||||||||||||||||
|
Total Throughput (barrels) (d) |
||||||||||||||||||||
|
Delaware City Rail Terminal |
1,204.1 |
6,952.9 |
12,150.5 |
17,265.8 |
||||||||||||||||
|
DCR West Rack |
2,310.0 |
4,708.9 |
7,342.8 |
4,708.9 |
||||||||||||||||
|
Toledo Truck Terminal |
1,939.2 |
604.9 |
5,490.1 |
2,131.0 |
||||||||||||||||
|
Toledo Storage Facility (Propane Loading) |
436.1 |
78.4 |
1,604.8 |
78.4 |
||||||||||||||||
|
Delaware Products Pipeline |
4,420.8 |
5,163.1 |
16,815.4 |
18,741.6 |
||||||||||||||||
|
Delaware Truck Rack |
2,902.1 |
N/A |
7,679.9 |
N/A |
||||||||||||||||
|
Total |
13,212.3 |
17,508.2 |
51,083.5 |
42,925.7 |
||||||||||||||||
|
Storage capacity reserved (average shell capacity barrels per month) (e) |
3,522.2 |
3,713.1 |
3,558.7 |
3,713.1 |
||||||||||||||||
|
Cash Flow Information: |
||||||||||||||||||||
|
Net cash provided by (used in): |
||||||||||||||||||||
|
Operating activities |
$ |
15,157 |
$ |
12,187 |
$ |
78,546 |
$ |
12,887 |
||||||||||||
|
Investing activities |
(864) |
23,169 |
(1,349) |
(282,734) |
||||||||||||||||
|
Financing activities |
(13,851) |
(33,276) |
(72,684) |
283,937 |
||||||||||||||||
|
Net increase (decrease) in cash |
$ |
442 |
$ |
2,080 |
$ |
4,513 |
$ |
14,090 |
||||||||||||
|
Other Financial Information: |
||||||||||||||||||||
|
EBITDA attributable to PBFX (c) |
$ |
26,125 |
$ |
17,649 |
$ |
101,421 |
$ |
34,027 |
||||||||||||
|
Distributable cash flow (c) |
$ |
20,347 |
$ |
16,739 |
$ |
83,922 |
$ |
32,801 |
||||||||||||
|
Quarterly distribution declared per unit (f) |
$ |
0.41 |
$ |
0.33 |
$ |
1.52 |
$ |
0.79 |
||||||||||||
|
Distribution declared (f): |
||||||||||||||||||||
|
Common units - public |
$ |
6,694 |
$ |
5,309 |
$ |
24,843 |
$ |
12,706 |
||||||||||||
|
Common units - PBF |
1,055 |
424 |
3,911 |
635 |
||||||||||||||||
|
Subordinated units - PBF |
6,514 |
5,243 |
24,148 |
12,551 |
||||||||||||||||
|
IDR Holders - PBF LLC |
583 |
— |
1,118 |
— |
||||||||||||||||
|
Total distribution declared |
$ |
14,846 |
$ |
10,976 |
$ |
54,020 |
$ |
25,892 |
||||||||||||
|
Coverage ratio (c) |
1.37x |
1.53x |
1.55x |
1.27x |
||||||||||||||||
|
Capital expenditures |
$ |
864 |
$ |
6,812 |
$ |
2,046 |
$ |
47,805 |
||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
* Prior-period financial information has been retrospectively adjusted for the acquisition of the Delaware City Products Pipeline and Truck Rack. | ||||||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||
|
KEY OPERATING AND FINANCIAL INFORMATION | ||||||||||||
|
(Unaudited, amounts in thousands) | ||||||||||||
|
December 31, |
December 31, | |||||||||||
|
Balance Sheet Information: |
2015 |
2014 | ||||||||||
|
Cash, cash equivalents and marketable securities |
$ |
252,936 |
$ |
249,095 |
||||||||
|
Property, plant and equipment, net |
145,548 |
146,867 |
||||||||||
|
Total assets |
422,902 |
407,989 |
||||||||||
|
Total debt |
599,635 |
507,848 |
||||||||||
|
Total liabilities |
608,577 |
512,569 |
||||||||||
|
Net investment - Predecessor |
— |
15,713 |
||||||||||
|
Partners' equity |
(185,675) |
(104,580) |
||||||||||
|
Total liabilities and equity |
422,902 |
407,989 |
||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
PBF LOGISTICS LP | |||||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | |||||||||||||||||||||
|
TO EBITDA AND DISTRIBUTABLE CASH FLOW | |||||||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||||||
|
Three months ended December 31, |
Year ended December 31, | ||||||||||||||||||||
|
2015 |
2014* |
2015 |
2014 | ||||||||||||||||||
|
Reconciliation of net income to EBITDA and distributable cash flow (c): |
|||||||||||||||||||||
|
Net income |
$ |
17,273 |
$ |
14,534 |
$ |
75,122 |
$ |
17,842 |
|||||||||||||
|
Add: Interest expense, net |
6,765 |
1,339 |
19,939 |
2,307 |
|||||||||||||||||
|
Add: Amortization of loan fees |
424 |
150 |
1,315 |
365 |
|||||||||||||||||
|
Add: Depreciation and amortization |
1,663 |
1,567 |
6,582 |
4,473 |
|||||||||||||||||
|
EBITDA |
26,125 |
17,590 |
102,958 |
24,987 |
|||||||||||||||||
|
Less: Predecessor EBITDA |
— |
(59) |
1,537 |
(9,040) |
|||||||||||||||||
|
EBITDA attributable to PBFX |
26,125 |
17,649 |
101,421 |
34,027 |
|||||||||||||||||
|
Add: Non-cash unit-based compensation expense |
1,851 |
433 |
4,279 |
1,086 |
|||||||||||||||||
|
Less: Interest expense, net |
(6,765) |
(1,343) |
(19,952) |
(2,312) |
|||||||||||||||||
|
Less: Maintenance capital expenditures |
(864) |
— |
(1,826) |
— |
|||||||||||||||||
|
Distributable cash flow |
$ |
20,347 |
$ |
16,739 |
$ |
83,922 |
$ |
32,801 |
|||||||||||||
|
Reconciliation of net cash provided by operating activities to EBITDA and distributable cash flow (c): |
|||||||||||||||||||||
|
Net cash provided by operating activities |
$ |
15,157 |
$ |
12,187 |
$ |
78,546 |
$ |
12,887 |
|||||||||||||
|
Add: Change in current assets and liabilities |
6,054 |
4,497 |
8,752 |
10,879 |
|||||||||||||||||
|
Add: Interest expense, net |
6,765 |
1,339 |
19,939 |
2,307 |
|||||||||||||||||
|
Less: Non-cash unit-based compensation expense |
(1,851) |
(433) |
(4,279) |
(1,086) |
|||||||||||||||||
|
EBITDA |
26,125 |
17,590 |
102,958 |
24,987 |
|||||||||||||||||
|
Less: Predecessor EBITDA |
— |
(59) |
1,537 |
(9,040) |
|||||||||||||||||
|
EBITDA attributable to PBFX |
26,125 |
17,649 |
101,421 |
34,027 |
|||||||||||||||||
|
Add: Non-cash unit-based compensation expense |
1,851 |
433 |
4,279 |
1,086 |
|||||||||||||||||
|
Less: Interest expense, net |
(6,765) |
(1,343) |
(19,952) |
(2,312) |
|||||||||||||||||
|
Less: Maintenance capital expenditures |
(864) |
— |
(1,826) |
— |
|||||||||||||||||
|
Distributable cash flow |
$ |
20,347 |
$ |
16,739 |
$ |
83,922 |
$ |
32,801 |
|||||||||||||
|
See Footnotes to Earnings Release Tables | |||||||||||||||||||||
|
* Prior-period financial information has been retrospectively adjusted for the acquisition of the Delaware City Products Pipeline and Truck Rack. | |||||||||||||||||||||
|
PBF LOGISTICS LP | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
SEGMENT FINANCIAL INFORMATION | ||||||||||||||||
|
(Unaudited, in thousands) | ||||||||||||||||
|
Three months ended December 31, 2015 | ||||||||||||||||
|
Transportation |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Revenues (a) |
$ |
32,023 |
$ |
5,283 |
$ |
— |
$ |
37,306 |
||||||||
|
Depreciation and amortization expense |
979 |
684 |
— |
1,663 |
||||||||||||
|
Income (loss) from operations |
26,592 |
1,961 |
(4,091) |
24,462 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
7,189 |
7,189 |
||||||||||||
|
Capital expenditures |
21 |
843 |
— |
864 |
||||||||||||
|
Three months ended December 31, 2014* | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Revenues (a) |
$ |
28,796 |
$ |
1,198 |
$ |
— |
$ |
29,994 |
||||||||
|
Depreciation and amortization expense |
974 |
593 |
— |
1,567 |
||||||||||||
|
Income (loss) from operations |
20,149 |
(1,053) |
(3,073) |
16,023 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
1,489 |
1,489 |
||||||||||||
|
Capital expenditures |
2,719 |
4,093 |
— |
6,812 |
||||||||||||
|
Year ended December 31, 2015 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Revenues (a) |
$ |
120,750 |
$ |
21,352 |
$ |
— |
$ |
142,102 |
||||||||
|
Depreciation and amortization expense |
3,943 |
2,639 |
— |
6,582 |
||||||||||||
|
Income (loss) from operations |
99,730 |
10,535 |
(13,889) |
96,376 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
21,254 |
21,254 |
||||||||||||
|
Capital expenditures |
246 |
1,800 |
— |
2,046 |
||||||||||||
|
Year ended December 31, 2014 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Revenues (a) |
$ |
58,205 |
$ |
1,198 |
$ |
— |
$ |
59,403 |
||||||||
|
Depreciation and amortization expense |
2,694 |
1,779 |
— |
4,473 |
||||||||||||
|
Income (loss) from operations |
36,655 |
(7,940) |
(8,201) |
20,514 |
||||||||||||
|
Interest expense, net and amortization of loan fees |
— |
— |
2,672 |
2,672 |
||||||||||||
|
Capital expenditures |
32,279 |
15,526 |
— |
47,805 |
||||||||||||
|
Balance at December 31, 2015 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Total assets |
$ |
112,826 |
$ |
56,846 |
$ |
253,230 |
$ |
422,902 |
||||||||
|
Balance at December 31, 2014 | ||||||||||||||||
|
Transportation and Terminaling |
Storage |
Corporate |
Consolidated Total | |||||||||||||
|
Total assets |
$ |
105,631 |
$ |
53,038 |
$ |
249,320 |
$ |
407,989 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
* Prior-period financial information has been retrospectively adjusted for the acquisition of the Delaware City Products Pipeline and Truck Rack. | ||||||||||||||||
|
PBF LOGISTICS LP | |||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||
|
FOOTNOTES TO EARNINGS RELEASE TABLES | |||||||||||
|
(Unaudited) | |||||||||||
|
(a) |
See discussion of the factors affecting comparability noted on page 4. The Partnership's results of operations may not be comparable to the Predecessor's historical results of operations for the reasons described below: | ||||||||||
|
(b) |
General and administrative expenses include transaction costs related to the Acquisitions from PBF of $0.3 million and $0.5 million in the three months ended December 31, 2015 and 2014, respectively, and $0.8 million and $1.1 million in the years ended December 31, 2015 and 2014, respectively. | ||||||||||
|
(c) |
See "Non-GAAP Financial Measures" on page 4 for a definition of EBITDA, distributable cash flow and coverage ratio. | ||||||||||
|
(d) |
Operating information pertains to assets which are included in the Transportation and Terminaling segment. Throughput information reflects activity subsequent to execution of the commercial agreements in connection with the Offering and Acquisitions from PBF, with the exception of the Delaware City Products Pipeline which recognized revenue prior to its acquisition by PBFX. | ||||||||||
|
(e) |
Operating information pertains to assets which are included in the Storage segment. Shell capacity information reflects activity subsequent to execution of the commercial agreements in connection with the Toledo Storage Facility acquisition. | ||||||||||
|
(f) |
On February 11, 2016, we declared a quarterly cash distribution of $0.41 per limited partner unit for the fourth quarter of 2015. | ||||||||||
SOURCE PBF Logistics LP
Article Date
2/11/20162/11/2016 - PBF Energy Reports Fourth Quarter and Full Year 2015 Results, Declares Dividend of $0.30 Per Share
PBF Energy Reports Fourth Quarter and Full Year 2015 Results, Declares Dividend of $0.30 Per Share
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Feb. 11, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) today reported fourth quarter 2015 operating income, excluding special items, of $167.7 million versus operating income of $208.6 million for the fourth quarter of 2014. Special items in the fourth quarter 2015 results include two notable non-cash, after-tax items, a $209.0 million lower-of-cost-or-market ("LCM") inventory charge and a $12.3 million benefit related to a change in a tax receivable agreement liability.
Adjusted fully-converted net income for the fourth quarter 2015, excluding special items, was $71.0 million, or $0.70 per share on a fully-exchanged, fully-diluted basis, as described below, compared to adjusted fully-converted net income of $104.8 million, or $1.13 per share, for the fourth quarter 2014. On a GAAP basis, the company reported a fourth quarter 2015 net loss of $121.5 million, and net loss attributable to PBF Energy Inc. of $119.5 million or $1.24 per share. This compares to a GAAP net loss of $320.8 million, and net loss attributable to PBF Energy Inc. of $277.6 million or $3.34 per share for the fourth quarter 2014. PBF Energy's financial results reflect the consolidation of the financial results of PBF Logistics LP (NYSE: PBFX), a master limited partnership of which PBF indirectly owns the general partner and approximately 53.7% of the limited partner interests as of quarter-end.
For the year-ended December 31, 2015, operating income, excluding special items, was $787.3 million, compared to $837.8 million for the corresponding period in 2014. Adjusted fully-converted net income for the year, excluding special items, was $402.1 million, or $4.27 per share on a fully-exchanged, fully-diluted basis, as compared to $433.5 million, or $4.50 per share, on a fully-exchanged, fully-diluted basis, for the corresponding period in 2014. Net income attributable to PBF Energy Inc. for the year was $146.4 million, or $1.66 per share as compared to a net loss of $38.2 million, or $0.51 per share, for the year-ended December 31, 2014.
Tom Nimbley, PBF Energy's CEO, said, "2015 was a transformational year for PBF. Our strong operating results, particularly those from our East Coast assets, and our recently integrated Chalmette refinery, reflect the benefits of the optionality that we have built into our refining system. This optionality provides us with the flexibility to pursue the most economic barrels for our system and maximize the profitability of our assets by operating them as an integrated system." Mr. Nimbley continued, "We have added meaningful scale to the company by closing on the Chalmette acquisition and announcing the Torrance refinery transaction. With these two acquisitions, upon closing of Torrance, we will have solidified PBF's position as the fourth largest independent refiner in North America and added meaningful diversification to our refining system with the addition of Gulf Coast and West Coast assets. Looking ahead, our focus remains on delivering safe and strong operational performance and on fully integrating and optimizing our newest assets."
Total throughput for the fourth quarter averaged approximately 629,900 barrels per day, which was at the top end of our guidance and includes two months of operations from the Chalmette refinery. Throughput in the Mid-Continent averaged approximately 156,900 barrels per day, throughput on the East Coast averaged approximately 346,600 barrels per day and throughput on the Gulf Coast averaged approximately 190,800 barrels per day for the two months of operations under PBF's ownership.
Successfully raised $850.0 million of equity and debt financing through two capital markets transactions
October 13, 2015, PBF announced that it had closed its underwritten public offering of shares of its Class A common stock. Gross proceeds of the offering were approximately $350.0 million.
On November 24, 2015, PBF's indirect subsidiary, PBF Holding Company LLC ("PBF Holding"), closed its senior secured notes offering of $500.0 million in aggregate principal amount of 7.0% senior secured notes due 2023.
Previously announced Chalmette Refining LLC and pending Torrance refinery acquisitions
On November 1, 2015, PBF's subsidiary, PBF Holding, successfully closed its previously announced transaction to purchase Chalmette Refining, LLC, through which it acquired the 189,000 barrel per day Chalmette refinery and related logistics assets, from ExxonMobil and PDV Chalmette, LLC.
On September 30, 2015, PBF announced that its indirect subsidiary, PBF Holding, signed a definitive agreement to purchase the 155,000 barrel per day Torrance refinery, and related logistics assets, from ExxonMobil. The purchase price for the assets is $537.5 million, plus working capital to be valued at closing. The Torrance transaction is expected to close in the second quarter of 2016, subject to customary closing conditions and regulatory approvals. The refinery will be restored to full working order prior to close.
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 8, 2016 to holders of record as of February 22, 2016.
PBF Energy Inc. Share Repurchase Program
On August 19, 2014, PBF announced that its board of directors authorized the repurchase of up to $200 million of PBF Class A common stock. On October 29, 2014, the board of directors approved a $100 million increase to the existing authorization, for a total repurchase authorization of $300 million. The repurchase authorization expires on September 30, 2016.
These repurchases may be made from time to time through various methods, including open market transactions, block trades, accelerated share repurchases, privately negotiated transactions or otherwise, certain of which may be effected through Rule 10b5-1 and Rule 10b-18 plans. The timing and number of shares repurchased will depend on a variety of factors, including price, capital availability, legal requirements and economic and market conditions. PBF is not obligated to purchase any shares under the repurchase program, and repurchases may be suspended or discontinued at any time without prior notice.
There were no repurchases made during the fourth quarter of 2015. As of the end the fourth quarter, 6,050,717 shares of Class A common stock have been repurchased at an average price of approximately $24.90 per share, excluding broker fees. After giving effect to shares already purchased under the program, the company has approximately $149 million of available repurchasing authorization under the program going forward. At the end of the quarter, there were an aggregate of 102,767,291 shares of Class A common stock and PBF Energy Company LLC Series A Units outstanding.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income, Adjusted Fully-Converted Net Income per fully-exchanged, fully-diluted share, gross refining margin, gross refining margin per barrel of throughput, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Adjusted EBITDA, as well as such measures excluding the impact of non-cash special items. PBF Energy Inc. 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 Energy Inc.'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 regarding earnings results and other business matters on Thursday, February 11, 2016, at 8:30 a.m. ET. The call can be heard by dialing (877) 876-9177 or (785) 424-1666, conference ID: PBFQ415. The audio replay will be available approximately two hours after the end of the call through February 27, 2016, by dialing (800) 388-6509 or (402) 220-1111. The call will also be webcast and can be accessed at PBF Energy's website, http://www.pbfenergy.com.
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, customers and vendors; risks relating to the securities markets generally; satisfaction of the conditions to the closing of the Torrance acquisition and the possibility that the Torrance acquisition will not close; timing of the completion of the Torrance acquisition; the company's plans for financing the Torrance 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 Delaware, New Jersey, Ohio and Louisiana. 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 53.7% 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, | |||||||||||||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||||||||||||
|
Revenues |
$ |
3,360,489 |
$ |
4,520,000 |
$ |
13,123,929 |
$ |
19,828,155 |
||||||||||||
|
Costs and expenses: |
||||||||||||||||||||
|
Cost of sales, excluding depreciation |
3,162,210 |
4,717,155 |
11,481,614 |
18,471,203 |
||||||||||||||||
|
Operating expenses, excluding depreciation |
268,577 |
200,894 |
904,525 |
883,140 |
||||||||||||||||
|
General and administrative expenses |
54,919 |
39,695 |
181,266 |
146,661 |
||||||||||||||||
|
Loss (gain) loss on sale of assets |
129 |
(733) |
(1,004) |
(895) |
||||||||||||||||
|
Depreciation and amortization expense |
53,016 |
44,495 |
197,417 |
180,382 |
||||||||||||||||
|
3,538,851 |
5,001,506 |
12,763,818 |
19,680,491 |
|||||||||||||||||
|
(Loss) income from operations |
(178,362) |
(481,506) |
360,111 |
147,664 |
||||||||||||||||
|
Other income (expense) |
||||||||||||||||||||
|
Change in tax receivable agreement liability |
20,365 |
— |
18,150 |
2,990 |
||||||||||||||||
|
Change in fair value of catalyst lease |
1,202 |
2,765 |
10,184 |
3,969 |
||||||||||||||||
|
Interest expense, net |
(29,093) |
(22,933) |
(106,187) |
(98,764) |
||||||||||||||||
|
(Loss) income before income taxes |
(185,888) |
(501,674) |
282,258 |
55,859 |
||||||||||||||||
|
Income tax (benefit) expense |
(64,347) |
(180,825) |
86,725 |
(22,412) |
||||||||||||||||
|
Net (loss) income |
(121,541) |
(320,849) |
195,533 |
78,271 |
||||||||||||||||
|
Less: net (loss) income attributable to noncontrolling interest |
(2,012) |
(43,238) |
49,132 |
116,508 |
||||||||||||||||
|
Net (loss) income attributable to PBF Energy Inc. |
$ |
(119,529) |
$ |
(277,611) |
$ |
146,401 |
$ |
(38,237) |
||||||||||||
|
Net (loss) income available to Class A common stock per share: |
||||||||||||||||||||
|
Basic |
$ |
(1.24) |
$ |
(3.34) |
$ |
1.66 |
$ |
(0.51) |
||||||||||||
|
Diluted |
$ |
(1.24) |
$ |
(3.34) |
$ |
1.65 |
$ |
(0.51) |
||||||||||||
|
Weighted-average shares outstanding-basic |
96,135,314 |
83,130,507 |
88,106,999 |
74,464,494 |
||||||||||||||||
|
Weighted-average shares outstanding-diluted |
96,135,314 |
83,130,507 |
94,138,850 |
74,464,494 |
||||||||||||||||
|
Dividends per common share |
$ |
0.30 |
$ |
0.30 |
$ |
1.20 |
$ |
1.20 |
||||||||||||
|
Adjusted fully-converted net (loss) income and adjusted fully-converted net (loss) income per fully exchanged, fully diluted shares outstanding (Note 1): |
||||||||||||||||||||
|
Adjusted fully-converted net (loss) income |
$ |
(125,738) |
$ |
(307,899) |
$ |
155,012 |
$ |
22,620 |
||||||||||||
|
Adjusted fully-converted net (loss) income per fully exchanged, fully diluted share |
$ |
(1.23) |
$ |
(3.32) |
$ |
1.65 |
$ |
0.24 |
||||||||||||
|
Adjusted fully-converted shares outstanding - diluted |
102,010,309 |
92,806,491 |
94,138,850 |
96,231,446 |
||||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||||||||
|
(Unaudited, in thousands, except share and per share data) | ||||||||||||||||||||||
|
Three Months Ended |
Year Ended |
|||||||||||||||||||||
|
RECONCILIATION OF NET INCOME TO |
December 31, |
December 31, |
||||||||||||||||||||
|
ADJUSTED FULLY-CONVERTED NET INCOME (Note 1) |
2015 |
2014 |
2015 |
2014 |
||||||||||||||||||
|
Net (loss) income attributable to PBF Energy Inc. |
$ |
(119,529) |
$ |
(277,611) |
$ |
146,401 |
$ |
(38,237) |
||||||||||||||
|
Add: |
Net (loss) income attributable to the noncontrolling interest (Note 2) |
(10,279) |
(50,648) |
14,257 |
101,768 |
|||||||||||||||||
|
Less: |
Income tax expense (benefit) (Note 3) |
4,070 |
20,360 |
(5,646) |
(40,911) |
|||||||||||||||||
|
Adjusted fully-converted net (loss) income |
$ |
(125,738) |
$ |
(307,899) |
$ |
155,012 |
$ |
22,620 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: |
Non-cash LCM inventory adjustment (Note 5) |
346,079 |
690,110 |
427,226 |
690,110 |
|||||||||||||||||
|
Add: |
Change in tax receivable agreement liability (Note 15) |
(20,365) |
— |
(18,150) |
(2,990) |
|||||||||||||||||
|
Less: |
Recomputed income taxes on special items (Note 5, Note 15) |
(128,983) |
(277,424) |
(161,994) |
(276,222) |
|||||||||||||||||
|
Adjusted fully-converted net income (loss) excluding special items (Note 4) |
$ |
70,993 |
$ |
104,787 |
$ |
402,094 |
$ |
433,518 |
||||||||||||||
|
Diluted weighted-average shares outstanding of PBF Energy Inc. (Note 6) |
96,135,314 |
83,130,507 |
88,106,999 |
74,464,494 |
||||||||||||||||||
|
Conversion of PBF LLC Series A Units (Note 7) |
5,046,988 |
9,170,696 |
5,530,568 |
21,249,314 |
||||||||||||||||||
|
Common stock equivalents (Note 6) |
828,007 |
505,288 |
501,283 |
517,638 |
||||||||||||||||||
|
Fully-converted shares outstanding - diluted |
102,010,309 |
92,806,491 |
94,138,850 |
96,231,446 |
||||||||||||||||||
|
Adjusted fully-converted net (loss) income (per fully exchanged, fully diluted shares outstanding) |
$ |
(1.23) |
$ |
(3.32) |
$ |
1.65 |
$ |
0.24 |
||||||||||||||
|
Adjusted fully-converted net income excluding special items (per fully exchanged, fully diluted shares outstanding) (Note 4) |
$ |
0.70 |
$ |
1.13 |
$ |
4.27 |
$ |
4.50 |
||||||||||||||
|
Three Months Ended |
Year Ended |
|||||||||||||||||||||
|
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO |
December 31, |
December 31, |
||||||||||||||||||||
|
INCOME FROM OPERATIONS EXCLUDING SPECIAL ITEMS |
2015 |
2014 |
2015 |
2014 |
||||||||||||||||||
|
Income (Loss) from operations |
$ |
(178,362) |
$ |
(481,506) |
$ |
360,111 |
$ |
147,664 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: |
Non-cash LCM inventory adjustment (Note 5) |
346,079 |
690,110 |
427,226 |
690,110 |
|||||||||||||||||
|
Income from operations excluding special items (Note 4) |
$ |
167,717 |
$ |
208,604 |
$ |
787,337 |
$ |
837,774 |
||||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||||||||
|
EBITDA RECONCILIATIONS (Note 8) | ||||||||||||||||||||||
|
(Unaudited, in thousands, except share and per share data) | ||||||||||||||||||||||
|
Three Months Ended |
Year Ended |
|||||||||||||||||||||
|
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA |
December 31, |
December 31, |
||||||||||||||||||||
|
2015 |
2014 |
2015 |
2014 |
|||||||||||||||||||
|
Net (loss) income |
$ |
(121,541) |
$ |
(320,849) |
$ |
195,533 |
$ |
78,271 |
||||||||||||||
|
Add: |
Depreciation and amortization expense |
53,016 |
44,495 |
197,417 |
180,382 |
|||||||||||||||||
|
Add: |
Interest expense, net |
29,093 |
22,933 |
106,187 |
98,764 |
|||||||||||||||||
|
Add: |
Income tax (benefit) expense |
(64,347) |
(180,825) |
86,725 |
(22,412) |
|||||||||||||||||
|
EBITDA |
$ |
(103,779) |
$ |
(434,246) |
$ |
585,862 |
$ |
335,005 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: |
Non-cash LCM inventory adjustment (Note 5) |
346,079 |
690,110 |
427,226 |
690,110 |
|||||||||||||||||
|
Add: |
Change in tax receivable agreement liability (Note 15) |
(20,365) |
— |
(18,150) |
(2,990) |
|||||||||||||||||
|
EBITDA excluding special items (Note 4) |
$ |
221,935 |
$ |
255,864 |
$ |
994,938 |
$ |
1,022,125 |
||||||||||||||
|
Three Months Ended |
Year Ended |
|||||||||||||||||||||
|
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA |
December 31, |
December 31, |
||||||||||||||||||||
|
2015 |
2014 |
2015 |
2014 |
|||||||||||||||||||
|
EBITDA |
$ |
(103,779) |
$ |
(434,246) |
$ |
585,862 |
$ |
335,005 |
||||||||||||||
|
Add: |
Non-cash LCM inventory adjustment (Note 5) |
346,079 |
690,110 |
427,226 |
690,110 |
|||||||||||||||||
|
Add: |
Stock based compensation |
4,741 |
1,804 |
13,497 |
7,181 |
|||||||||||||||||
|
Add: |
Change in tax receivable agreement liability (Note 15) |
(20,365) |
— |
(18,150) |
(2,990) |
|||||||||||||||||
|
Add: |
Non-cash change in fair value of catalyst lease obligations |
(1,202) |
(2,765) |
(10,184) |
(3,969) |
|||||||||||||||||
|
Adjusted EBITDA |
$ |
225,474 |
$ |
254,903 |
$ |
998,251 |
$ |
1,025,337 |
||||||||||||||
|
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, |
|||||||||||
|
2015 |
2014 |
|||||||||||
|
Balance Sheet Data: |
||||||||||||
|
Cash, cash equivalents and marketable securities |
$ |
1,178,578 |
$ |
632,803 |
||||||||
|
Inventories |
1,174,272 |
1,102,261 |
||||||||||
|
Total assets |
6,105,124 |
5,164,008 |
||||||||||
|
Total long-term debt |
1,840,355 |
1,228,069 |
||||||||||
|
Total equity |
$ |
2,095,857 |
$ |
1,693,316 |
||||||||
|
Special Items (Note 4): |
||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
427,226 |
690,110 |
||||||||||
|
Add: Change in tax receivable agreement liability (Note 4)
|
(18,150) |
(2,990) |
||||||||||
|
Less: Recomputed income taxes on special items (Note 5, Note 15) |
(161,994) |
(276,222) |
||||||||||
|
Net impact of special items to equity |
$ |
247,082 |
$ |
410,898 |
||||||||
|
Total equity excluding special items (Note 4) |
$ |
2,342,939 |
$ |
2,104,214 |
||||||||
|
Net debt to capitalization ratio |
24 |
% |
26 |
% |
||||||||
|
Net debt to capitalization ratio, excluding special items |
22 |
% |
22 |
% |
||||||||
|
Total debt to capitalization ratio |
47 |
% |
42 |
% |
||||||||
|
Total debt to capitalization ratio, excluding special items |
44 |
% |
37 |
% |
||||||||
|
SUMMARIZED STATEMENT OF CASH FLOW DATA | ||||||||||||
|
(Unaudited, in thousands) | ||||||||||||
|
Year Ended December 31, |
||||||||||||
|
2015 |
2014 |
|||||||||||
|
Cash flows provided by operations |
$ |
560,424 |
$ |
456,325 |
||||||||
|
Cash flows used in investing activities |
(812,113) |
(663,607) |
||||||||||
|
Cash flows provided by in financing activities |
798,136 |
528,185 |
||||||||||
|
Net increase in cash and cash equivalents |
546,447 |
320,903 |
||||||||||
|
Cash and cash equivalents, beginning of period |
397,873 |
76,970 |
||||||||||
|
Cash and cash equivalents, end of period |
$ |
944,320 |
$ |
397,873 |
||||||||
|
Marketable securities |
234,258 |
234,930 |
||||||||||
|
Net cash, cash equivalent and marketable securities |
$ |
1,178,578 |
$ |
632,803 |
||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||||
|
EARNINGS RELEASE TABLES | |||||||||||||||||||
|
SEGMENT FINANCIAL INFORMATION (Note 9) | |||||||||||||||||||
|
(Unaudited, in thousands) | |||||||||||||||||||
|
Three Months Ended December 31, 2015 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
3,360,489 |
$ |
37,306 |
$ |
— |
$ |
(37,306) |
$ |
3,360,489 |
|||||||||
|
Depreciation and amortization |
49,330 |
1,663 |
2,023 |
— |
53,016 |
||||||||||||||
|
Income (loss) from operations |
(152,187) |
24,462 |
(50,637) |
— |
(178,362) |
||||||||||||||
|
Interest expense, net |
3,674 |
7,189 |
18,230 |
— |
29,093 |
||||||||||||||
|
Capital expenditures (Note 16) |
$ |
637,351 |
$ |
864 |
$ |
6,956 |
$ |
— |
$ |
645,171 |
|||||||||
|
Three Months Ended December 31, 2014 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
4,520,000 |
$ |
29,994 |
$ |
— |
$ |
(29,994) |
$ |
4,520,000 |
|||||||||
|
Depreciation and amortization |
39,468 |
1,567 |
3,460 |
— |
44,495 |
||||||||||||||
|
Income (loss) from operations |
(457,837) |
16,023 |
(39,692) |
— |
(481,506) |
||||||||||||||
|
Interest expense, net |
3,214 |
1,489 |
18,230 |
— |
22,933 |
||||||||||||||
|
Capital expenditures |
$ |
292,234 |
$ |
6,812 |
$ |
1,542 |
$ |
— |
$ |
300,588 |
|||||||||
|
Year Ended December 31, 2015 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
13,123,929 |
$ |
142,102 |
$ |
— |
$ |
(142,102) |
$ |
13,123,929 |
|||||||||
|
Depreciation and amortization |
181,147 |
6,582 |
9,688 |
— |
197,417 |
||||||||||||||
|
Income (loss) from operations |
441,033 |
96,376 |
(177,298) |
— |
360,111 |
||||||||||||||
|
Interest expense, net |
17,061 |
21,254 |
67,872 |
— |
106,187 |
||||||||||||||
|
Capital expenditures (Note 16) |
$ |
969,895 |
$ |
2,046 |
$ |
9,139 |
$ |
— |
$ |
981,080 |
|||||||||
|
Year Ended December 31, 2014 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Revenues |
$ |
19,828,155 |
$ |
59,403 |
$ |
— |
$ |
(59,403) |
$ |
19,828,155 |
|||||||||
|
Depreciation and amortization |
162,326 |
4,473 |
13,583 |
— |
180,382 |
||||||||||||||
|
Income (loss) from operations |
283,646 |
20,514 |
(156,496) |
— |
147,664 |
||||||||||||||
|
Interest expense, net |
23,618 |
2,672 |
72,474 |
— |
98,764 |
||||||||||||||
|
Capital expenditures |
$ |
577,896 |
$ |
47,805 |
$ |
5,631 |
$ |
— |
$ |
631,332 |
|||||||||
|
Balance at December 31, 2015 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Total Assets |
$ |
5,087,554 |
$ |
422,902 |
$ |
618,617 |
$ |
(23,949) |
$ |
6,105,124 |
|||||||||
|
Balance at December 31, 2014 | |||||||||||||||||||
|
Refining |
Logistics |
Corporate |
Eliminations |
Consolidated Total | |||||||||||||||
|
Total Assets |
$ |
4,312,618 |
$ |
407,989 |
$ |
455,031 |
$ |
(11,630) |
$ |
5,164,008 |
|||||||||
|
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) (Note 10) |
2015 |
2014 |
2015 |
2014 | ||||||||||||||||
|
Dated Brent Crude |
$ |
43.68 |
$ |
76.58 |
$ |
52.56 |
$ |
98.95 |
||||||||||||
|
West Texas Intermediate (WTI) crude oil |
$ |
42.07 |
$ |
73.62 |
$ |
48.71 |
$ |
93.28 |
||||||||||||
|
Light Louisiana Sweet (LLS) crude oil |
$ |
43.53 |
$ |
76.58 |
$ |
52.36 |
$ |
96.92 |
||||||||||||
|
Crack Spreads |
||||||||||||||||||||
|
Dated Brent (NYH) 2-1-1 |
$ |
12.16 |
$ |
11.87 |
$ |
16.35 |
$ |
12.92 |
||||||||||||
|
WTI (Chicago) 4-3-1 |
$ |
13.06 |
$ |
11.44 |
$ |
17.91 |
$ |
15.92 |
||||||||||||
|
LLS (Gulf Coast) 2-1-1 |
$ |
9.62 |
$ |
11.46 |
$ |
14.39 |
$ |
16.95 |
||||||||||||
|
Crude Oil Differentials |
||||||||||||||||||||
|
Dated Brent (foreign) less WTI |
$ |
1.61 |
$ |
2.96 |
$ |
3.85 |
$ |
5.66 |
||||||||||||
|
Dated Brent less Maya (heavy, sour) |
$ |
9.35 |
$ |
9.24 |
$ |
8.45 |
$ |
13.08 |
||||||||||||
|
Dated Brent less WTS (sour) |
$ |
1.95 |
$ |
5.14 |
$ |
3.59 |
$ |
11.62 |
||||||||||||
|
Dated Brent less ASCI (sour) |
$ |
4.97 |
$ |
4.37 |
$ |
4.57 |
$ |
6.49 |
||||||||||||
|
WTI less WCS (heavy, sour) |
$ |
12.96 |
$ |
15.84 |
$ |
11.87 |
$ |
19.45 |
||||||||||||
|
WTI less Bakken (light, sweet) |
$ |
1.03 |
$ |
6.28 |
$ |
2.89 |
$ |
5.47 |
||||||||||||
|
WTI less Syncrude (light, sweet) |
$ |
(2.07) |
$ |
3.35 |
$ |
(1.45) |
$ |
2.25 |
||||||||||||
|
Natural gas (dollars per MMBTU) |
$ |
2.23 |
$ |
3.85 |
$ |
2.63 |
$ |
4.26 |
||||||||||||
|
Key Operating Information |
||||||||||||||||||||
|
Production (barrels per day ("bpd") in thousands) |
636.6 |
415.4 |
511.9 |
452.1 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
629.9 |
415.3 |
516.4 |
453.1 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
57.9 |
38.2 |
188.4 |
165.4 |
||||||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
8.79 |
$ |
12.37 |
$ |
10.29 |
$ |
12.11 |
||||||||||||
|
Operating expense per barrel of throughput (Note 12) |
$ |
4.55 |
$ |
5.26 |
$ |
4.72 |
$ |
5.34 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13) |
||||||||||||||||||||
|
Heavy |
17 |
% |
15 |
% |
14 |
% |
14 |
% | ||||||||||||
|
Medium |
47 |
% |
46 |
% |
49 |
% |
44 |
% | ||||||||||||
|
Light |
22 |
% |
28 |
% |
26 |
% |
33 |
% | ||||||||||||
|
Other feedstocks and blends |
14 |
% |
11 |
% |
11 |
% |
9 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
50 |
% |
48 |
% |
49 |
% |
47 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
35 |
% |
35 |
% |
35 |
% |
36 |
% | ||||||||||||
|
Lubes |
1 |
% |
2 |
% |
1 |
% |
2 |
% | ||||||||||||
|
Chemicals |
3 |
% |
3 |
% |
3 |
% |
3 |
% | ||||||||||||
|
Other |
11 |
% |
12 |
% |
12 |
% |
12 |
% | ||||||||||||
|
Total yield |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||||||
|
December 31, |
December 31, | |||||||||||||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||||||||||||
|
Supplemental Operating Information - East Coast |
||||||||||||||||||||
|
Production (barrels per day ("bpd") in thousands) |
345.6 |
338.3 |
322.9 |
322.9 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
346.6 |
339.7 |
330.7 |
325.3 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
31.9 |
31.2 |
120.7 |
118.7 |
||||||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
9.16 |
$ |
13.19 |
$ |
9.28 |
$ |
10.97 |
||||||||||||
|
Operating expense per barrel of throughput (Note 12) |
$ |
4.39 |
$ |
4.66 |
$ |
4.67 |
$ |
5.07 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Heavy |
18 |
% |
19 |
% |
18 |
% |
19 |
% | ||||||||||||
|
Medium |
60 |
% |
46 |
% |
58 |
% |
48 |
% | ||||||||||||
|
Light |
5 |
% |
21 |
% |
9 |
% |
21 |
% | ||||||||||||
|
Other feedstocks and blends |
17 |
% |
14 |
% |
15 |
% |
12 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
49 |
% |
48 |
% |
47 |
% |
46 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
34 |
% |
35 |
% |
34 |
% |
36 |
% | ||||||||||||
|
Lubes |
2 |
% |
2 |
% |
2 |
% |
2 |
% | ||||||||||||
|
Chemicals |
2 |
% |
2 |
% |
2 |
% |
2 |
% | ||||||||||||
|
Other |
13 |
% |
12 |
% |
14 |
% |
13 |
% | ||||||||||||
|
Total yield |
100 |
% |
99 |
% |
99 |
% |
99 |
% | ||||||||||||
|
Supplemental Operating Information - Mid-Continent |
||||||||||||||||||||
|
Production (bpd in thousands) |
159.1 |
77.1 |
155.8 |
129.2 |
||||||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
156.9 |
75.6 |
153.8 |
127.8 |
||||||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
14.4 |
7.0 |
56.1 |
46.7 |
||||||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
7.67 |
$ |
8.70 |
$ |
12.69 |
$ |
15.04 |
||||||||||||
|
Operating expense per barrel of throughput (Note 12) |
$ |
4.97 |
$ |
7.99 |
$ |
4.88 |
$ |
5.97 |
||||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||||||
|
Medium |
32 |
% |
45 |
% |
35 |
% |
37 |
% | ||||||||||||
|
Light |
65 |
% |
53 |
% |
63 |
% |
61 |
% | ||||||||||||
|
Other feedstocks and blends |
3 |
% |
2 |
% |
2 |
% |
2 |
% | ||||||||||||
|
Total throughput |
100 |
% |
100 |
% |
100 |
% |
100 |
% | ||||||||||||
|
Yield (% of total throughput): |
||||||||||||||||||||
|
Gasoline and gasoline blendstocks |
55 |
% |
51 |
% |
52 |
% |
50 |
% | ||||||||||||
|
Distillates and distillate blendstocks |
36 |
% |
38 |
% |
36 |
% |
37 |
% | ||||||||||||
|
Chemicals |
5 |
% |
4 |
% |
5 |
% |
5 |
% | ||||||||||||
|
Other |
5 |
% |
9 |
% |
8 |
% |
9 |
% | ||||||||||||
|
Total yield |
101 |
% |
102 |
% |
101 |
% |
101 |
% | ||||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||
|
EARNINGS RELEASE TABLES | ||||||||||||||||
|
SUPPLEMENTAL OPERATING INFORMATION | ||||||||||||||||
|
(Unaudited, amounts in thousands except as indicated) | ||||||||||||||||
|
Three Months Ended |
Year Ended | |||||||||||||||
|
December 31, |
December 31, | |||||||||||||||
|
2015 |
2014 |
2015 |
2014 | |||||||||||||
|
Supplemental Operating Information - Gulf Coast (Chalmette) (Note 14) |
||||||||||||||||
|
Production (barrels per day ("bpd") in thousands) |
199.0 |
N/A |
199.0 |
N/A | ||||||||||||
|
Crude oil and feedstocks throughput (bpd in thousands) |
190.8 |
N/A |
190.8 |
N/A | ||||||||||||
|
Total crude oil and feedstocks throughput (millions of barrels) |
11.6 |
N/A |
11.6 |
N/A | ||||||||||||
|
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 11) |
$ |
9.17 |
N/A |
$ |
9.17 |
N/A | ||||||||||
|
Operating expense per barrel of throughput (Note 12) |
$ |
4.48 |
N/A |
$ |
4.48 |
N/A | ||||||||||
|
Crude and feedstocks (% of total throughput) (Note 13): |
||||||||||||||||
|
Heavy |
35 |
% |
N/A |
35 |
% |
N/A | ||||||||||
|
Medium |
32 |
% |
N/A |
32 |
% |
N/A | ||||||||||
|
Light |
18 |
% |
N/A |
18 |
% |
N/A | ||||||||||
|
Other feedstocks and blends |
15 |
% |
N/A |
15 |
% |
N/A | ||||||||||
|
Total throughput |
100 |
% |
N/A |
100 |
% |
N/A | ||||||||||
|
Yield (% of total throughput): |
||||||||||||||||
|
Gasoline and gasoline blendstocks |
49 |
% |
N/A |
49 |
% |
N/A | ||||||||||
|
Distillates and distillate blendstocks |
35 |
% |
N/A |
35 |
% |
N/A | ||||||||||
|
Chemicals |
5 |
% |
N/A |
5 |
% |
N/A | ||||||||||
|
Other |
12 |
% |
N/A |
12 |
% |
N/A | ||||||||||
|
Total yield |
101 |
% |
N/A |
101 |
% |
N/A | ||||||||||
|
See Footnotes to Earnings Release Tables | ||||||||||||||||
|
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||||||
|
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||||||||
|
GROSS REFINING MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note 11) | ||||||||||||||||||||||
|
(Unaudited, in thousands, except per barrel amounts) | ||||||||||||||||||||||
|
Three Months Ended |
Three Months Ended |
|||||||||||||||||||||
|
December 31, 2015 |
December 31, 2014 |
|||||||||||||||||||||
|
per barrel of |
per barrel of |
|||||||||||||||||||||
|
$ |
throughput |
$ |
throughput |
|||||||||||||||||||
|
Reconciliation of gross margin to gross refining margin: |
||||||||||||||||||||||
|
Gross margin |
$ |
(114,877) |
$ |
(1.98) |
$ |
(438,168) |
$ |
(11.47) |
||||||||||||||
|
Less: Affiliate Revenues of PBFX |
(37,306) |
(0.64) |
(27,304) |
(0.71) |
||||||||||||||||||
|
Add: Affiliate Cost of sales of PBFX |
2,340 |
0.04 |
6,979 |
0.18 |
||||||||||||||||||
|
Add: Refinery operating expense |
263,826 |
4.55 |
200,894 |
5.26 |
||||||||||||||||||
|
Add: Refinery depreciation |
49,330 |
0.85 |
40,119 |
1.05 |
||||||||||||||||||
|
Gross refining margin |
$ |
163,313 |
$ |
2.82 |
$ |
(217,480) |
$ |
(5.69) |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
346,079 |
5.97 |
690,110 |
18.06 |
||||||||||||||||||
|
Gross refining margin excluding special items (Note 4) |
$ |
509,392 |
$ |
8.79 |
$ |
472,630 |
$ |
12.37 |
||||||||||||||
|
Year Ended |
Year Ended |
|||||||||||||||||||||
|
December 31, 2015 |
December 31, 2014 |
|||||||||||||||||||||
|
per barrel of |
per barrel of |
|||||||||||||||||||||
|
$ |
throughput |
$ |
throughput |
|||||||||||||||||||
|
Reconciliation of gross margin to gross refining margin: |
||||||||||||||||||||||
|
Gross margin |
$ |
571,524 |
$ |
3.03 |
$ |
308,399 |
$ |
1.86 |
||||||||||||||
|
Less: Affiliate Revenues of PBFX |
(138,719) |
(0.74) |
(49,830) |
(0.30) |
||||||||||||||||||
|
Add: Affiliate Cost of sales of PBFX |
8,734 |
0.05 |
6,979 |
0.04 |
||||||||||||||||||
|
Add: Refinery operating expense |
889,368 |
4.72 |
883,140 |
5.34 |
||||||||||||||||||
|
Add: Refinery depreciation |
181,423 |
0.96 |
165,413 |
1.00 |
||||||||||||||||||
|
Gross refining margin |
$ |
1,512,330 |
$ |
8.02 |
$ |
1,314,101 |
$ |
7.94 |
||||||||||||||
|
Special Items (Note 4): |
||||||||||||||||||||||
|
Add: Non-cash LCM inventory adjustment (Note 5) |
427,226 |
2.27 |
690,110 |
4.17 |
||||||||||||||||||
|
Gross refining margin excluding special items (Note 4) |
$ |
1,939,556 |
$ |
10.29 |
$ |
2,004,211 |
$ |
12.11 |
||||||||||||||
|
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 U.S. GAAP measures, are useful to investors to compare the company's results across the periods presented and facilitates an understanding of the company's operating results. The company also uses this measure to evaluate its operating performance. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. The differences between adjusted fully-converted and U.S. GAAP results are explained in footnotes 2 through 7 and footnote 15. | ||||||||||||||
|
(2) Represents the elimination of the noncontrolling interest associated with the ownership by the members of PBF Energy Company LLC other than PBF Energy Inc., as if such members had fully exchanged their Series A Units for shares of the PBF Energy's Class A common stock. | ||||||||||||||
|
(3) Represents an adjustment to reflect the company's statutory corporate tax rate of approximately 39.6% and 40.2% for the 2015 and 2014 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 2. | ||||||||||||||
|
(4) The non-GAAP measures presented include adjusted fully-converted net income excluding special items, income from continuing operations excluding special items, EBITDA excluding special items, and gross refining margin excluding special items. The special items for the periods presented relate to a lower of cost or market adjustment (LCM) and changes in the tax receivable agreement liability. LCM is a GAAP guideline related to inventory valuation that requires inventory to be stated at the lower of cost or market. Our inventories are stated at the lower of cost or market. Cost is determined using last-in, first-out (LIFO) inventory valuation methodology, in which the most recently incurred costs are charged to cost of sales and inventories are valued at base layer acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and net realizable selling price of the inventory. In periods where the market price of our inventory declines substantially, cost values of inventory may exceed market values. In such instances, we record an adjustment to write down the value of inventory to market value in accordance with GAAP. In subsequent periods, the value of inventory is reassessed and an LCM adjustment is recorded to reflect the net change in the LCM inventory reserve between the prior period and the current period. Changes in the tax receivable agreement liability reflect charges or benefits attributable to changes in our obligation under the tax receivable agreement due to factors out of our control such as changes in tax rates. Although we believe that non-GAAP financial measures excluding the impact of special items provide useful supplemental information to investors regarding the results and performance of our business and allow for more useful period-over-period comparisons, such non-GAAP measures should only be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP. | ||||||||||||||
|
(5) During the year ended December 31, 2015, the Company recorded an adjustment to value its inventories to the lower of cost or market which resulted in a net pre-tax impact of $427.2 million reflecting the change in the lower of cost or market inventory reserve from $690.1 million at December 31, 2014 to $1,117.3 million at December 31, 2015. During the three months ended December 31, 2015, the Company recorded an adjustment to the lower of cost or market which resulted in a net pre-tax impact of $346.1 million reflecting the change in the lower of cost or market inventory reserve from $771.3 million at September 30, 2015 to $1,117.3 million at December 31, 2015. During the year and three months December 31, 2014, the Company recorded an adjustment to value its inventory to the lower of cost or market which resulted in a net pre-tax impact of $690.1 million. The net impact of these LCM inventory adjustments are included in the Refining segment's operating income, but are excluded from the operating results presented in the table in order to make such information comparable between periods. Income taxes related to the net LCM adjustment were recalculated using the Company's statutory corporate tax rate of approximately 39.6% and 40.2%, respectively, for the 2015 and 2014 periods presented. | ||||||||||||||
|
(6) Represents weighted-average diluted shares outstanding assuming the full exchange of common stock equivalents, including options and warrants for PBF LLC Series A Units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method. Common stock equivalents excludes the effects of options to purchase 2,943,750 and 2,401,875 shares of PBF Energy Class A common stock because they are anti-dilutive for the years ended December 31, 2015 and 2014, respectively. Common stock equivalents excludes the effects of options to purchase 1,335,000 and 2,385,000 shares of PBF Energy Class A common stock because they are anti-dilutive for the three months ended December 31, 2015 and 2014, respectively. | ||||||||||||||
|
(7) Represents an adjustment to weighted-average diluted shares to assume the full exchange of existing PBF LLC Series A Units as described in footnote 2 above if not included in the diluted weighted-average shares outstanding as described in footnote 6 above. | ||||||||||||||
|
(8) EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Adjusted EBITDA are supplemental measures of performance that are not required by, or presented in accordance with, GAAP. We use these non-GAAP financial measures as a supplement to our GAAP results in order to provide a more complete understanding of the factors and trends affecting our business. EBITDA and Adjusted EBITDA are measures of operating performance that are not defined by GAAP and should not be considered substitutes for net income as determined in accordance with GAAP. In addition, because EBITDA and Adjusted EBITDA are not calculated in the same manner by all companies, they are not necessarily comparable to other similarly titled measures used by other companies. EBITDA and Adjusted EBITDA have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. | ||||||||||||||
|
(9) We operate in two reportable segments; Refining and Logistics. Our operations that are not included in the Refining and Logistics segments are included in Corporate. As of December 31, 2015, the Refining segment includes the operations of our oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio and New Orleans, Louisiana. The Logistics segment includes the operations of PBF Logistics LP ("PBFX"), a growth-oriented master limited partnership which owns and operates logistics assets, currently consisting of the Delaware City Rail Terminal, the Toledo Truck Terminal, the DCR West Rack, the Toledo Storage Facility and the Delaware City Products Pipeline and Truck Rack. The Logistics segment's results include financial information of the predecessor of PBFX for periods presented prior to May 13, 2014, and the financial information of PBFX for periods beginning on or after May 14, 2014, the completion date of the PBFX initial public offering ("PBFX Offering"). Prior to the PBFX Offering, the DCR West Rack acquisition, the Toledo Storage Facility acquisition and the Delaware City Products Pipeline and Truck Rack acquisition, PBFX's assets were operated within the refining operations of PBF Energy's Delaware City and Toledo refineries. The assets did not generate third party or intra-entity revenue, other than certain intra-entity revenue recognized by the Delaware City Products Pipeline and Truck Rack, and were not considered to be a separate reportable segment. All intercompany transactions are eliminated in our consolidated financial statements and are included in Eliminations, as applicable. | ||||||||||||||
|
(10) As reported by Platts. | ||||||||||||||
|
(11) Gross refining margin and gross refining margin per barrel of throughput are non-GAAP measures because they exclude operating expenses, refinery depreciation and amortization and gross margin of PBFX. Gross refining margin per barrel is gross refining margin, divided by total crude and feedstocks throughput. We believe they are important measures of operating performance and they provide useful information to investors because gross refining margin per barrel is a better metric comparison to the industry refining margin benchmarks shown in the Market Indicators Tables, as the industry benchmarks do not include a charge for refinery operating expenses and depreciation. Other companies in our industry may not calculate gross refining margin and gross refining margin per barrel in the same manner. | ||||||||||||||
|
(12) Represents refinery operating expenses, excluding depreciation and amortization, divided by total crude oil and feedstocks throughput. | ||||||||||||||
|
(13) We define heavy crude oil as crude oil with an American Petroleum Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with an API gravity between 24 and 35 degrees. We define light crude oil as crude oil with an API gravity higher than 35 degrees. | ||||||||||||||
|
(14) Includes activity for the Chalmette refinery subsequent to its acquisition on November 1, 2015. | ||||||||||||||
|
(15) The Company recorded pre-tax adjustments related to the change in the tax receivable agreement liability of $18.2 million and $3.0 million for the years ended December 31, 2015 and 2014, respectively, and $20.4 million and $0.0 million for the three months ended December 31, 2015 and 2014, respectively. Income taxes related to the change in the tax receivable agreement liability were recalculated using the Company's statutory corporate tax rate of approximately 39.6% and 40.2%, respectively, for the 2015 and 2014 periods presented.
| ||||||||||||||
|
(16) The Refining segment includes $565.3 million for the acquisition of the Chalmette refinery on November 1, 2015. | ||||||||||||||
SOURCE PBF Energy Inc.
Article Date
2/11/2016PBF Logistics Announces Acquisition of Four East Coast Refined Product Terminals from Plains All American
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Feb. 2, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") announced today that a wholly-owned subsidiary has entered into an agreement to acquire four refined product terminals located in the greater Philadelphia region (the "East Coast Terminals") from an affiliate of Plains All American Pipeline, L.P. for a total consideration of $100.0 million. This acquisition expands the Partnership's storage and terminalling footprint and introduces third-party customers to the Partnership's revenue base. The acquisition is expected to be financed through a combination of cash on hand, borrowings from the Partnership's senior secured revolving credit facility and equity, which may include common units sold to our sponsor, PBF Energy. The acquisition is expected to close in the second quarter of 2016, subject to customary closing conditions.
PBFX Chief Executive Officer Thomas Nimbley said, "The acquisition of the East Coast Terminals is PBFX's first third-party acquisition, adds meaningful third-party, fee-based revenue and represents an attractive acquisition multiple. The addition of the East Coast Terminals increases the Partnership's total capacity by over 100% to approximately 8.1 million shell barrels and diversifies its customer and asset base. We expect the acquisition to be accretive to distributable cash flow upon closing." Mr. Nimbley continued, "PBF Logistics has been able to execute its strategy and deliver growth to our unitholders. PBF Energy, as a sponsor, is committed to the continued growth and strategic development of PBF Logistics. We are excited about the transaction and look forward to welcoming the East Coast Terminals employees and customers to the PBF Logistics family.
Located in the Philadelphia market, the East Coast Terminals are ideally situated in the sixth largest metropolitan area in the United States with significant local demand for refined products. The terminals provide a critical link for the approximately 1.3 million barrels per day of refining capacity located within 100 miles of the terminals and associated downstream demand. With extensive pipeline, truck and deep-water marine connectivity, the East Coast terminals have the flexibility to accommodate a wide variety of potential customer requirements.
The East Coast Terminals are expected to allow PBF Logistics to leverage its expanded footprint and capitalize on commercial opportunities with new customers and leverage opportunities with PBF Energy due to the close proximity of PBF Energy's East Coast refining system. In conjunction with the transaction, the Partnership expects to invest approximately $5 million, from cash on hand, to improve infrastructure in order to increase throughput capability at the East Coast Terminals. Based on a total transaction cost of $105 million, including the $5 million investment and synergy opportunities, the Partnership expects the East Coast Terminals to generate approximately $15 million of pro forma EBITDA, of which approximately two-thirds is expected to be from third-party customers.
The assets to be acquired include a total of 57 product tanks with a total shell capacity of approximately 4.2 million shell barrels, pipeline connections to the Colonial, Buckeye, Sunoco Logistics and other proprietary pipeline systems, 26 truck loading lanes and marine facilities capable of handling barges and ships.
Non-GAAP Measures
PBF Logistics LP Reconciliation of Amounts under US GAAP to Forecasted EBITDA (unaudited, in millions)
|
Reconciliation of East Coast Terminals Forecasted |
|
|
Net Income to pro forma EBITDA: |
|
|
Forecasted net income |
$8.7 |
|
Add: Depreciation and amortization expense |
5.3 |
|
Add: Interest expense, net and other financing costs |
1.0 |
|
Pro forma EBITDA |
$15.0 |
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. EBITDA is a non-GAAP supplemental financial measure that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
The Partnership's management believes that the presentation of EBITDA provides useful information to investors in assessing our financial condition and results of operations. EBITDA should not be considered an alternative to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect net income. Additionally, because EBITDA may be defined differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies, thereby diminishing its utility. Due to the forward-looking nature of forecasted EBITDA, information to reconcile forecasted EBITDA to forecasted cash flow from operating activities is not available as management is unable to project working capital changes for future periods at this time.
About PBF Logistics LP
PBF Logistics LP (NYSE: PBFX), headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Forward-Looking Statements
Disclosures in this press release contain "forward-looking statements." All statements, other than statements of historical facts, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the accretion expected to be realized by the Partnership as a result of the acquisition and the expectations of plans, strategies, objectives and growth and anticipated financial and operational performance of the Partnership and its subsidiaries. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports filed by the Partnership with the Securities and Exchange Commission. Any forward-looking statement applies only as of the date on which such statement is made and the Partnership does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE PBF Logistics LP
Article Date
2/2/2016PBF Energy Provides Update on Delaware City Refinery Operations
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Feb. 1, 2016 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) announced today that its Delaware City Refinery experienced a plant-wide, unplanned shutdown on January 24, 2016, due to a loss of power during a severe winter storm. The refinery was safely shutdown and there were no injuries. Given prevailing market conditions and current operational capability, the company has decided to move forward its scheduled turnaround of the Delaware City coker and other related units. Personnel are working to return non-affected units to reduced operations. We expect the refinery to complete its turnaround work by the end of the quarter.
As a result of the change to the originally planned maintenance schedule, the company expects East Coast throughput to be approximately 280,000 to 300,000 barrels per day for the first quarter and 320,000 to 340,000 for the year. Throughput guidance for the company's other regions remains unchanged.
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, customers and vendors; risks 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 Delaware, New Jersey, Ohio and Louisiana. 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 53.7% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
SOURCE PBF Energy Inc.
Article Date
2/1/2016PBF Logistics to Attend UBS MLP One-on-One Conference
Source: PR Newswire
Orignial Article: http://www.prnewswire.com...
PARSIPPANY, N.J., Jan. 8, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX) announced today that the partnership's management will be participating in meetings with institutional investors at the UBS MLP One-on-One to be held in Park City, Utah, from January 12 through January 13, 2016.
The company's meeting materials will be available on the Investor Relations section of the PBF Logistics LP website at www.pbflogistics.com.
PBF Logistics LP
PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
SOURCE PBF Logistics LP
Article Date
1/8/2016Projects & Assets
Direct Assets
Related Assets
FERC Highlights
FERC Filings
Production & Forecasts
Subscribe now for access to Criterion Research's historical production and forecast production by company.
Production Hedges
Subscribe now for access to Criterion Research's hedge and analysis.