- Second quarter income from operations of $1,389.2 million (excluding special items, second
quarter income from operations of $403.7
million)
- Closed partnership with Eni Sustainable Mobility, received
$845.6 million, including
$431 million at closing in the second
quarter and $414.6 million in the
third quarter
- St. Bernard Renewables facility is operational with first
products sold in July
- Repurchased over 11.3 million shares for approximately
$440 million, from inception to
date
PARSIPPANY, N.J., Aug. 3, 2023
/PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) today reported second
quarter 2023 income from operations of $1,389.2 million as compared to income from
operations of $1,706.6 million for
the second quarter of 2022. Excluding special items, second quarter
2023 income from operations was $403.7
million as compared to income from operations of
$1,784.2 million for the second
quarter of 2022.
The company reported second quarter 2023 net income of
$1,030.4 million and net income
attributable to PBF Energy Inc. of $1,020.4
million or $7.88 per share.
This compares to net income of $1,235.8
million, and net income attributable to PBF Energy Inc. of
$1,203.7 million or $9.65 per share for the second quarter 2022.
Non-cash special items included in the second quarter 2023 results,
which increased net income by a net, after-tax benefit of
$729.4 million, or $5.59 per share, primarily consisted of a gain
resulting from the difference between the fair value of the
consideration received, including the fair value of the Company's
50% interest in St. Bernard Renewables LLC ("SBR") and the carrying
value of the related assets contributed. Adjusted fully-converted
net income for the second quarter 2023, excluding special items,
was $298.3 million, or $2.29 per share on a fully-exchanged,
fully-diluted basis, as described below, compared to adjusted
fully-converted net income of $1,329.2
million or $10.58 per share,
for the second quarter 2022.
Matt Lucey, PBF Energy's
President and CEO, said, "After the second quarter of 2023, PBF is
now more than halfway through the second best financial year for
the company. We are on pace to invest approximately $750 million dollars in our refining assets this
year to ensure we can continue to safely and responsibly provide
our essential products. PBF's financial condition has undergone a
radical transformation and our efforts in that area are being
recognized. The earnings of our refining business continue to
support the strengthening of our balance sheet and the opportunity
to generate long-term value for our shareholders." Mr. Lucey
continued, "In June, we completed the formation of the SBR equity
investment and began our partnership with Eni."
Mr. Lucey concluded, "Looking ahead, the balance between global
refining capacity and refined product demand remains tight. We
remain focused on ensuring that our refineries are safe, reliable
and available to respond to market demands. PBF's path forward is
bright and we are committed to generating long-term value for our
investors through prudent capital allocation."
PBF Energy Inc. Declares Dividend
The company
announced today that it will pay a quarterly dividend of
$0.20 per share of Class A common
stock on August 31, 2023, to holders
of record at the close of business on August
17, 2023.
St. Bernard Renewables
On June 28, 2023, Eni Sustainable Mobility Spa and
PBF announced the closing of the previously announced 50-50
partnership in SBR, an operating biorefinery co-located with PBF's
Chalmette Refinery in Louisiana.
PBF's affiliate contributed the biorefinery and other assets
comprising the business to SBR and Eni Sustainable Mobility's
affiliate has committed to make capital reimbursements and
contributions totaling $835 million
to PBF, excluding contingent consideration, of which $431 million was paid at closing. In July 2023, SBR successfully completed and
commenced operations of the pre-treatment unit ("PTU"). As a
result, $414.6 million was paid to
PBF on August 2, 2023, including
$10.6 million of the $50 million in contingent consideration related
to the startup of the PTU. Remaining elements of the contingent
consideration will be paid by Eni Sustainable Mobility subject to
the achievement of certain project milestones and performance
criteria.
Strategic Update and Outlook
PBF remains committed to
the safety and reliability of our operations. Through successful
operational execution, the durable improvements and strength of our
balance sheet are the next priorities. At quarter-end, we had
approximately $1.5 billion of cash.
Our net debt to capitalization remained, effectively, zero at the
end of the second quarter. We reduced our outstanding environmental
credit payables by approximately $250
million in the second quarter, approximately $570 million year-to-date, and expect to continue
to reduce our environmental credit payables to more normalized
levels over the next several quarters.
We remain active on our $1 billion
share repurchase program. To date, we have repurchased
approximately $440 million of equity,
including approximately $100 million
in the second quarter.
Our operational execution and balance sheet improvements have
generated significant value for our investors in the near-term and,
more importantly, demonstrate our commitment to fiscal discipline,
long-term value and shareholder returns.
As always, the safety and reliability of our core operations are
paramount. We continue investing in all our assets and expect
full-year 2023 refining capital expenditures, excluding capital
expenditures related to SBR, to be in the $750 million range.
The Renewable Diesel production unit ("RDU") and PTU of SBR
project are currently operating. The PTU began supplying feedstocks
to the RDU in July and our first renewable fuels were sold in the
third quarter. Total direct capital costs for the SBR facility and
related project infrastructure, excluding working capital, were
approximately $700 million.
In 2023 to date, PBF has conducted extensive maintenance and
multiple turnarounds across our refining system. Our goal is to
sustain safe, reliable and environmentally responsible operations
to supply the markets with our vital products. For the remainder of
2023, we will continue to execute our routine maintenance program
and our remaining turnaround schedule is as follows, subject to
change:
- West Coast - Torrance Hydrocracker (Spring), Torrance FCC/Alky
(Fall)
Timing and throughput ranges provided reflect current
expectations and are subject to change based on market conditions
and other factors. Third quarter throughput expectations are
included in the table below.
|
Expected throughput
ranges (barrels per day)
|
|
Third Quarter
2023
|
|
Low
|
High
|
|
East Coast
|
310,000
|
330,000
|
|
Mid-continent
|
150,000
|
160,000
|
|
Gulf Coast
|
170,000
|
180,000
|
|
West Coast
|
295,000
|
315,000
|
|
Total
|
925,000
|
985,000
|
Refining system full-year throughput is currently expected to be
in the 915,000 to 975,000 barrel per day range. Guidance provided
constitutes forward-looking information and is based on current PBF
Energy operating plans, company assumptions, and company
configuration. Year-to-date actual throughput and quarterly
guidance should be used to adjust full-year expectations. All
figures and timelines are subject to change based on a variety of
factors, including market and macroeconomic factors, as well as
company strategic decision-making and overall company
performance.
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 (Loss) 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,
Adjusted EBITDA, net debt, net debt to capitalization ratio and net
debt to capitalization ratio excluding special items. 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, 2023, 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) 869-3847 or (201) 689-8261. The audio
replay will be available approximately two hours after the end of
the call and will be available through the company's website.
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 SBR, including SBR 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, our ability to operate safely, reliably, sustainably
and in an environmentally responsible manner; our ability to
successfully diversify our operations; our ability to make
acquisitions or investments, including in renewable diesel
production, and to realize the benefits from such acquisitions or
investments; our ability to successfully manage the operations of
our 50-50 equity method investment in SBR; our expectations with
respect to our capital spending and turnaround projects; risks
associated with our obligation to buy Renewable Identification
Numbers and related market risks related to the price volatility
thereof; the possibility that we might reduce or not pay further
dividends in the future; certain developments in the global oil
markets and their impact on the global macroeconomic conditions;
risks relating to the securities markets generally; the impact of
changes in inflation, interest rates and capital costs; and the
impact of market conditions, 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.
|
|
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,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenues
|
$
9,157.6
|
|
$ 14,077.7
|
|
$ 18,452.6
|
|
$ 23,219.4
|
|
Cost and expenses:
|
|
|
|
|
|
|
|
|
Cost of products and
other
|
7,908.0
|
|
11,380.5
|
|
15,703.3
|
|
19,586.7
|
|
Operating expenses
(excluding depreciation and amortization expense as reflected
below)
|
597.0
|
|
637.6
|
|
1,378.4
|
|
1,258.0
|
|
Depreciation and
amortization expense
|
142.2
|
|
120.1
|
|
284.1
|
|
238.4
|
|
Cost of
sales
|
8,647.2
|
|
12,138.2
|
|
17,365.8
|
|
21,083.1
|
|
General and
administrative expenses (excluding depreciation and amortization
expense as reflected below)
|
104.2
|
|
153.2
|
|
164.2
|
|
206.7
|
|
Depreciation and
amortization expense
|
2.3
|
|
1.9
|
|
4.2
|
|
3.8
|
|
Change in fair value of
contingent consideration, net
|
(16.6)
|
|
77.6
|
|
(32.9)
|
|
127.9
|
|
Gain on formation of
SBR equity method investment
|
(968.9)
|
|
—
|
|
(968.9)
|
|
—
|
|
Loss (gain) on sale of
assets
|
0.2
|
|
0.2
|
|
(1.4)
|
|
0.3
|
|
Total cost and expenses
|
7,768.4
|
|
12,371.1
|
|
16,531.0
|
|
21,421.8
|
|
Income from operations
|
1,389.2
|
|
1,706.6
|
|
1,921.6
|
|
1,797.6
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(13.8)
|
|
(85.5)
|
|
(32.5)
|
|
(163.9)
|
|
Change in Tax
Receivable Agreement liability
|
—
|
|
(267.2)
|
|
—
|
|
(286.5)
|
|
Change in fair value of
catalyst obligations
|
0.5
|
|
7.2
|
|
1.2
|
|
2.3
|
|
Gain on extinguishment
of debt
|
—
|
|
3.8
|
|
—
|
|
3.8
|
|
Other non-service
components of net periodic benefit cost
|
0.1
|
|
2.2
|
|
0.4
|
|
4.4
|
|
Other income
|
2.3
|
|
—
|
|
—
|
|
—
|
|
Income before income taxes
|
1,378.3
|
|
1,367.1
|
|
1,890.7
|
|
1,357.7
|
|
Income tax expense
|
347.9
|
|
131.3
|
|
474.4
|
|
125.2
|
|
Net income
|
1,030.4
|
|
1,235.8
|
|
1,416.3
|
|
1,232.5
|
|
Less: net income
attributable to noncontrolling interests
|
10.0
|
|
32.1
|
|
13.8
|
|
49.9
|
|
Net income attributable to PBF Energy Inc.
stockholders
|
$
1,020.4
|
|
$
1,203.7
|
|
$
1,402.5
|
|
$
1,182.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to Class A common stock per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
8.14
|
|
$
9.93
|
|
$
11.04
|
|
$
9.78
|
|
|
Diluted
|
$
7.88
|
|
$
9.65
|
|
$
10.67
|
|
$
9.58
|
|
|
Weighted-average shares
outstanding-basic
|
125,288,452
|
|
121,268,354
|
|
127,028,449
|
|
120,886,059
|
|
|
Weighted-average shares
outstanding-diluted
|
130,446,002
|
|
125,658,046
|
|
132,428,607
|
|
124,411,545
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common share
|
$
0.20
|
|
$
—
|
|
$
0.40
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
1,027.7
|
|
$
1,212.7
|
|
$
1,412.4
|
|
$
1,191.6
|
|
|
Adjusted
fully-converted net income per fully exchanged, fully diluted
share
|
$
7.88
|
|
$
9.65
|
|
$
10.67
|
|
$
9.58
|
|
|
Adjusted
fully-converted shares outstanding - diluted (Note 6)
|
130,446,002
|
|
125,658,046
|
|
132,428,607
|
|
124,411,545
|
|
|
|
|
|
|
|
|
|
|
|
|
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 ADJUSTED
FULLY-CONVERTED NET INCOME AND ADJUSTED FULLY-CONVERTED NET INCOME
EXCLUDING SPECIAL ITEMS (Note 1)
|
|
Three Months Ended
|
|
Six Months Ended
|
|
June 30,
|
|
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net income attributable to PBF Energy Inc.
stockholders
|
|
$
1,020.4
|
|
$
1,203.7
|
|
$
1,402.5
|
|
$
1,182.6
|
|
Less: Income allocated
to participating securities
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Income available to PBF Energy Inc. stockholders -
basic
|
|
1,020.4
|
|
1,203.7
|
|
1,402.5
|
|
1,182.6
|
|
Add: Net income
attributable to noncontrolling interests (Note 2)
|
|
9.9
|
|
12.2
|
|
13.4
|
|
12.2
|
|
Less: Income tax
expense (Note 3)
|
|
(2.6)
|
|
(3.2)
|
|
(3.5)
|
|
(3.2)
|
|
Adjusted fully-converted net
income
|
|
$
1,027.7
|
|
$
1,212.7
|
|
$
1,412.4
|
|
$
1,191.6
|
|
Special items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add: Change in fair
value of contingent consideration, net
|
|
(16.6)
|
|
77.6
|
|
(32.9)
|
|
127.9
|
|
Add: Gain on
extinguishment of debt
|
|
—
|
|
(3.8)
|
|
—
|
|
(3.8)
|
|
Add: Change in Tax
Receivable Agreement liability
|
|
—
|
|
267.2
|
|
—
|
|
286.5
|
|
Add: Gain on land
sales
|
|
—
|
|
—
|
|
(1.7)
|
|
—
|
|
Add: Gain on formation
of SBR equity method investment
|
|
(968.9)
|
|
—
|
|
(968.9)
|
|
—
|
|
Add: Net tax benefit on
remeasurement of deferred tax assets
|
|
—
|
|
(136.2)
|
|
—
|
|
(123.4)
|
|
Less: Recomputed income
tax on special items (Note 3)
|
|
256.1
|
|
(88.3)
|
|
260.9
|
|
(106.3)
|
|
Adjusted fully-converted net income excluding special
items
|
|
$
298.3
|
|
$
1,329.2
|
|
$
669.8
|
|
$
1,372.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding of PBF Energy
Inc.
|
|
125,288,452
|
|
121,268,354
|
|
127,028,449
|
|
120,886,059
|
|
Conversion of PBF LLC
Series A Units (Note 5)
|
|
910,457
|
|
923,334
|
|
910,457
|
|
925,649
|
|
Common stock
equivalents (Note 6)
|
|
4,247,093
|
|
3,466,358
|
|
4,489,701
|
|
2,599,837
|
|
Fully-converted shares outstanding -
diluted
|
|
130,446,002
|
|
125,658,046
|
|
132,428,607
|
|
124,411,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted fully-converted net income per fully
exchanged, fully diluted shares outstanding (Note
6)
|
|
$
7.88
|
|
$
9.65
|
|
$
10.67
|
|
$
9.58
|
|
|
Adjusted fully-converted net income excluding special
items per fully exchanged, fully diluted shares outstanding (Note
4, 6)
|
|
$
2.29
|
|
$
10.58
|
|
$
5.06
|
|
$
11.03
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
RECONCILIATION OF INCOME FROM OPERATIONS TO INCOME
FROM OPERATIONS EXCLUDING SPECIAL ITEMS
|
|
June 30,
|
|
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Income from operations
|
|
$
1,389.2
|
|
$
1,706.6
|
|
$
1,921.6
|
|
$
1,797.6
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add: Change in fair
value of contingent consideration, net
|
|
(16.6)
|
|
77.6
|
|
(32.9)
|
|
127.9
|
|
Add: Gain on formation
of SBR equity method investment
|
|
(968.9)
|
|
—
|
|
(968.9)
|
|
—
|
|
Income from operations excluding special
items
|
|
$
403.7
|
|
$
1,784.2
|
|
$
919.8
|
|
$
1,925.5
|
|
|
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 TO EBITDA AND EBITDA
EXCLUDING SPECIAL ITEMS
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 1,030.4
|
|
$ 1,235.8
|
|
$ 1,416.3
|
|
$ 1,232.5
|
|
Add: Depreciation and
amortization expense
|
|
144.5
|
|
122.0
|
|
288.3
|
|
242.2
|
|
Add: Interest expense,
net
|
|
13.8
|
|
85.5
|
|
32.5
|
|
163.9
|
|
Add: Income tax
expense
|
|
347.9
|
|
131.3
|
|
474.4
|
|
125.2
|
|
EBITDA
|
|
|
$ 1,536.6
|
|
$ 1,574.6
|
|
$ 2,211.5
|
|
$ 1,763.8
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add: Change in fair
value of contingent consideration, net
|
|
(16.6)
|
|
77.6
|
|
(32.9)
|
|
127.9
|
|
Add: Gain on
extinguishment of debt
|
|
—
|
|
(3.8)
|
|
—
|
|
(3.8)
|
|
Add: Change in Tax
Receivable Agreement liability
|
|
—
|
|
267.2
|
|
—
|
|
286.5
|
|
Add: Gain on land
sales
|
|
—
|
|
—
|
|
(1.7)
|
|
—
|
|
Add: Gain on formation
of SBR equity method investment
|
|
(968.9)
|
|
—
|
|
(968.9)
|
|
—
|
|
EBITDA excluding special items
|
|
$
551.1
|
|
$ 1,915.6
|
|
$ 1,208.0
|
|
$ 2,174.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
June 30,
|
|
June 30,
|
|
RECONCILIATION OF EBITDA TO ADJUSTED
EBITDA
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$ 1,536.6
|
|
$ 1,574.6
|
|
$ 2,211.5
|
|
$ 1,763.8
|
|
Add: Stock-based
compensation
|
|
9.7
|
|
10.3
|
|
18.9
|
|
18.0
|
|
Add: Change in fair
value of catalyst obligations
|
|
(0.5)
|
|
(7.2)
|
|
(1.2)
|
|
(2.3)
|
|
Add: Change in fair
value of contingent consideration, net (Note 4)
|
|
(16.6)
|
|
77.6
|
|
(32.9)
|
|
127.9
|
|
Add: Gain on
extinguishment of debt (Note 4)
|
|
—
|
|
(3.8)
|
|
—
|
|
(3.8)
|
|
Add: Change in Tax
Receivable Agreement liability (Note 4)
|
|
—
|
|
267.2
|
|
—
|
|
286.5
|
|
Add: Gain on land
sales (Note 4)
|
|
—
|
|
—
|
|
(1.7)
|
|
—
|
|
Add: Gain on formation
of SBR equity method investment (Note 4)
|
|
(968.9)
|
|
—
|
|
(968.9)
|
|
—
|
|
Adjusted EBITDA
|
|
|
$
560.3
|
|
$ 1,918.7
|
|
$ 1,225.7
|
|
$ 2,190.1
|
|
|
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,
|
|
|
|
|
|
2023
|
|
2022
|
|
Balance Sheet Data:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
1,516.9
|
|
$
2,203.6
|
|
Inventories
|
2,832.3
|
|
2,763.6
|
|
Total
assets
|
14,034.2
|
|
13,549.1
|
|
Total debt
|
1,441.5
|
|
1,959.1
|
|
Total
equity
|
6,183.3
|
|
5,056.0
|
|
Total equity excluding
special items (Note 4, 13)
|
$
5,045.2
|
|
$
4,660.5
|
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio (Note 13)
|
19 %
|
|
28 %
|
|
Total debt to
capitalization ratio, excluding special items (Note 13)
|
22 %
|
|
30 %
|
|
Net debt to
capitalization ratio* (Note 13)
|
(1) %
|
|
(5) %
|
|
Net debt to
capitalization ratio, excluding special items* (Note 13)
|
(2) %
|
|
(6) %
|
|
|
|
|
|
|
|
|
|
*Negative ratio exists
at 6/30/2023 and 12/31/2022 as cash is in excess of
debt.
|
|
|
|
|
|
|
|
|
|
SUMMARIZED STATEMENT OF CASH FLOW
DATA
|
|
(Unaudited, in millions)
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
|
2023
|
|
2022
|
|
Cash flows provided by
operating activities
|
$
505.7
|
|
$
2,269.0
|
|
Cash flows used in
investing activities
|
(314.7)
|
|
(436.9)
|
|
Cash flows used in
financing activities
|
(877.7)
|
|
(999.3)
|
|
Net change in cash and
cash equivalents
|
(686.7)
|
|
832.8
|
|
Cash and cash
equivalents, beginning of period
|
2,203.6
|
|
1,341.5
|
|
Cash and cash
equivalents, end of period
|
$
1,516.9
|
|
$
2,174.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
2023
|
|
Refining
|
Logistics
|
Corporate
|
Eliminations
|
Consolidated
Total
|
|
Revenues
|
$
9,148.4
|
$ 94.0
|
$
—
|
$
(84.8)
|
$
9,157.6
|
|
Depreciation and amortization
expense
|
133.0
|
9.2
|
2.3
|
—
|
144.5
|
|
Income from operations
(1)
|
455.6
|
51.9
|
881.7
|
—
|
1,389.2
|
|
Interest expense, net
|
(6.9)
|
0.1
|
20.6
|
—
|
13.8
|
|
Capital expenditures
(2)
|
362.1
|
2.4
|
2.5
|
—
|
367.0
|
|
|
|
|
|
|
|
Three Months Ended June 30,
2022
|
|
Refining
|
Logistics
|
Corporate
|
Eliminations
|
Consolidated
Total
|
|
Revenues
|
$14,064.0
|
$ 93.4
|
$
—
|
$
(79.7)
|
$ 14,077.7
|
|
Depreciation and amortization
expense
|
111.0
|
9.1
|
1.9
|
—
|
122.0
|
|
Income (loss) from operations
|
1,883.4
|
49.3
|
(226.1)
|
—
|
1,706.6
|
|
Interest expense, net
|
5.5
|
10.2
|
69.8
|
—
|
85.5
|
|
Capital expenditures
(2)
|
207.4
|
1.7
|
2.3
|
—
|
211.4
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2023
|
|
Refining
|
Logistics
|
Corporate
|
Eliminations
|
Consolidated
Total
|
|
Revenues
|
$18,433.9
|
$
192.5
|
$
—
|
$
(173.8)
|
$ 18,452.6
|
|
Depreciation and amortization
expense
|
265.9
|
18.2
|
4.2
|
—
|
288.3
|
|
Income from operations
(1)
|
981.3
|
101.6
|
838.7
|
—
|
1,921.6
|
|
Interest (income) expense, net
|
(11.0)
|
3.8
|
39.7
|
—
|
32.5
|
|
Capital expenditures
(2)
|
741.3
|
5.1
|
3.7
|
—
|
750.1
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2022
|
|
Refining
|
Logistics
|
Corporate
|
Eliminations
|
Consolidated
Total
|
|
Revenues
|
$23,192.2
|
$
182.8
|
$
—
|
$
(155.6)
|
$ 23,219.4
|
|
Depreciation and amortization
expense
|
219.8
|
18.6
|
3.8
|
—
|
242.2
|
|
Income (loss) from operations
|
2,029.5
|
95.7
|
(327.6)
|
—
|
1,797.6
|
|
Interest expense, net
|
8.6
|
20.3
|
135.0
|
—
|
163.9
|
|
Capital expenditures
(2)
|
430.5
|
3.1
|
3.3
|
—
|
436.9
|
|
|
|
|
|
|
|
Balance at June 30, 2023
|
|
Refining
|
Logistics
|
Corporate
|
Eliminations
|
Consolidated
Total
|
|
Total Assets (3)
|
$12,270.6
|
$
817.1
|
$ 983.2
|
$
(36.7)
|
$ 14,034.2
|
|
|
|
|
|
|
|
Balance at December 31, 2022
|
|
Refining
|
Logistics
|
Corporate
|
Eliminations
|
Consolidated
Total
|
|
Total Assets
|
$12,587.9
|
$
863.1
|
$ 136.3
|
$
(38.2)
|
$ 13,549.1
|
|
|
(1) Income from
operations within Corporate for the three and six months ended June
30, 2023 include $968.9 million related to the gain on formation of
the SBR equity method investment.
|
|
(2) For the three and
six months ended June 30, 2023, the Company's refining segment
includes $107.4 million and $265.3 million, respectively, of
capital expenditures related to the biorefinery co-located with the
Chalmette refinery in Louisiana (the "Renewable Diesel Facility").
For the three and six months ended June 30, 2022, the Company's
refining segment included $52.0 million and $92.0 million,
respectively, of capital expenditures related to the Renewable
Diesel Facility.
|
|
(3) Corporate assets
include our Equity method investment in SBR of $927.5
million.
|
|
|
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)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Dated Brent crude
oil
|
$ 78.21
|
|
$
113.93
|
|
$ 79.65
|
|
$
107.84
|
|
West Texas Intermediate
(WTI) crude oil
|
$ 73.56
|
|
$
108.77
|
|
$ 74.76
|
|
$
101.99
|
|
Light Louisiana Sweet
(LLS) crude oil
|
$ 75.62
|
|
$
110.33
|
|
$ 77.26
|
|
$
103.91
|
|
Alaska North Slope
(ANS) crude oil
|
$ 78.26
|
|
$
112.17
|
|
$ 78.64
|
|
$
104.15
|
|
Crack
Spreads:
|
|
|
|
|
|
|
|
|
Dated Brent (NYH)
2-1-1
|
$ 28.66
|
|
$ 55.26
|
|
$ 30.09
|
|
$ 38.47
|
|
WTI (Chicago)
4-3-1
|
$ 27.82
|
|
$ 44.53
|
|
$ 28.44
|
|
$ 31.24
|
|
LLS (Gulf Coast)
2-1-1
|
$ 26.41
|
|
$ 50.39
|
|
$ 30.26
|
|
$ 37.27
|
|
ANS (West Coast-LA)
4-3-1
|
$ 33.73
|
|
$ 53.56
|
|
$ 36.08
|
|
$ 43.20
|
|
ANS (West Coast-SF)
3-2-1
|
$ 33.56
|
|
$ 56.14
|
|
$ 36.36
|
|
$ 42.76
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
|
Dated Brent (foreign)
less WTI
|
$ 4.65
|
|
$ 5.16
|
|
$ 4.89
|
|
$ 5.85
|
|
Dated Brent less Maya
(heavy, sour)
|
$ 14.70
|
|
$ 9.99
|
|
$ 16.58
|
|
$ 11.11
|
|
Dated Brent less WTS
(sour)
|
$ 4.76
|
|
$ 5.64
|
|
$ 5.18
|
|
$ 6.19
|
|
Dated Brent less ASCI
(sour)
|
$ 5.17
|
|
$ 8.75
|
|
$ 6.28
|
|
$ 8.69
|
|
WTI less WCS (heavy,
sour)
|
$ 13.49
|
|
$ 18.52
|
|
$ 16.42
|
|
$ 16.96
|
|
WTI less Bakken (light,
sweet)
|
$ (1.74)
|
|
$ (3.97)
|
|
$ (2.32)
|
|
$ (3.73)
|
|
WTI less Syncrude
(light, sweet)
|
$ (2.88)
|
|
$ (4.38)
|
|
$ (2.99)
|
|
$ (2.03)
|
|
WTI less LLS (light,
sweet)
|
$ (2.05)
|
|
$ (1.56)
|
|
$ (2.50)
|
|
$ (1.92)
|
|
WTI less ANS (light,
sweet)
|
$ (4.70)
|
|
$ (3.40)
|
|
$ (3.87)
|
|
$ (2.16)
|
|
Effective RIN basket
price
|
$ 7.68
|
|
$ 7.68
|
|
$ 7.93
|
|
$ 6.98
|
|
Natural gas (dollars
per MMBTU)
|
$ 2.33
|
|
$ 7.50
|
|
$ 2.54
|
|
$ 6.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Operating Information
|
|
|
|
|
|
|
|
|
Production (barrels per
day ("bpd") in thousands)
|
945.7
|
|
958.8
|
|
902.3
|
|
901.6
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
935.8
|
|
942.2
|
|
893.7
|
|
887.7
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
85.2
|
|
85.8
|
|
161.8
|
|
160.7
|
|
Consolidated gross
margin per barrel of throughput
|
$ 6.00
|
|
$ 22.61
|
|
$ 6.72
|
|
$ 13.30
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 13.62
|
|
$ 30.41
|
|
$ 15.86
|
|
$ 21.54
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 6.71
|
|
$ 7.16
|
|
$ 8.16
|
|
$ 7.53
|
|
Crude and feedstocks (% of total throughput) (Note
12)
|
|
|
|
|
|
|
|
|
Heavy
|
27 %
|
|
31 %
|
|
27 %
|
|
33 %
|
|
Medium
|
35 %
|
|
34 %
|
|
34 %
|
|
33 %
|
|
Light
|
21 %
|
|
20 %
|
|
21 %
|
|
19 %
|
|
Other feedstocks and
blends
|
17 %
|
|
15 %
|
|
18 %
|
|
15 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total throughput)
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
48 %
|
|
47 %
|
|
48 %
|
|
48 %
|
|
Distillates and
distillate blendstocks
|
33 %
|
|
36 %
|
|
33 %
|
|
35 %
|
|
Lubes
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
Chemicals
|
1 %
|
|
1 %
|
|
1 %
|
|
2 %
|
|
Other
|
18 %
|
|
17 %
|
|
18 %
|
|
16 %
|
|
|
Total yield
|
101 %
|
|
102 %
|
|
101 %
|
|
102 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Supplemental Operating Information - East Coast
Refining System (Delaware City and Paulsboro)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
300.2
|
|
291.0
|
|
312.3
|
|
277.9
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
304.1
|
|
292.1
|
|
315.2
|
|
277.7
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
27.7
|
|
26.6
|
|
57.1
|
|
50.3
|
|
Gross margin per barrel
of throughput
|
$ 1.56
|
|
$ 23.08
|
|
$ 5.59
|
|
$ 13.11
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 8.09
|
|
$ 30.55
|
|
$ 13.28
|
|
$ 21.36
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 4.96
|
|
$ 6.13
|
|
$ 6.27
|
|
$ 6.70
|
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
6 %
|
|
26 %
|
|
12 %
|
|
28 %
|
|
Medium
|
46 %
|
|
46 %
|
|
45 %
|
|
39 %
|
|
Light
|
21 %
|
|
10 %
|
|
19 %
|
|
11 %
|
|
Other feedstocks and
blends
|
27 %
|
|
18 %
|
|
24 %
|
|
22 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
37 %
|
|
38 %
|
|
38 %
|
|
40 %
|
|
Distillates and
distillate blendstocks
|
33 %
|
|
40 %
|
|
35 %
|
|
38 %
|
|
Lubes
|
2 %
|
|
3 %
|
|
2 %
|
|
2 %
|
|
Chemicals
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
Other
|
26 %
|
|
18 %
|
|
23 %
|
|
19 %
|
|
|
Total yield
|
99 %
|
|
100 %
|
|
99 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Operating Information - Mid-Continent
(Toledo)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
162.0
|
|
164.9
|
|
127.9
|
|
152.0
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
158.5
|
|
161.7
|
|
126.0
|
|
149.3
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
14.4
|
|
14.7
|
|
22.8
|
|
27.0
|
|
Gross margin per barrel
of throughput
|
$ 6.80
|
|
$ 23.14
|
|
$ 2.68
|
|
$ 12.64
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 14.30
|
|
$ 30.24
|
|
$ 12.53
|
|
$ 20.35
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 6.13
|
|
$ 5.63
|
|
$ 8.00
|
|
$ 6.10
|
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Medium
|
37 %
|
|
34 %
|
|
39 %
|
|
37 %
|
|
Light
|
62 %
|
|
65 %
|
|
60 %
|
|
60 %
|
|
Other feedstocks and
blends
|
1 %
|
|
1 %
|
|
1 %
|
|
3 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
52 %
|
|
49 %
|
|
48 %
|
|
51 %
|
|
Distillates and
distillate blendstocks
|
35 %
|
|
36 %
|
|
35 %
|
|
36 %
|
|
Chemicals
|
4 %
|
|
5 %
|
|
4 %
|
|
5 %
|
|
Other
|
11 %
|
|
12 %
|
|
15 %
|
|
10 %
|
|
|
Total yield
|
102 %
|
|
102 %
|
|
102 %
|
|
102 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Supplemental Operating Information - Gulf Coast
(Chalmette)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
170.7
|
|
203.5
|
|
170.3
|
|
184.9
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
169.3
|
|
199.5
|
|
169.2
|
|
181.4
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
15.4
|
|
18.2
|
|
30.6
|
|
32.8
|
|
Gross margin per barrel
of throughput
|
$ 5.96
|
|
$ 18.33
|
|
$ 9.17
|
|
$ 12.20
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 12.54
|
|
$ 24.48
|
|
$ 16.23
|
|
$ 18.88
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 5.68
|
|
$ 5.21
|
|
$ 6.05
|
|
$ 5.84
|
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
17 %
|
|
18 %
|
|
17 %
|
|
17 %
|
|
Medium
|
41 %
|
|
39 %
|
|
36 %
|
|
41 %
|
|
Light
|
21 %
|
|
28 %
|
|
29 %
|
|
29 %
|
|
Other feedstocks and
blends
|
21 %
|
|
15 %
|
|
18 %
|
|
13 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
47 %
|
|
43 %
|
|
45 %
|
|
42 %
|
|
Distillates and
distillate blendstocks
|
33 %
|
|
36 %
|
|
35 %
|
|
38 %
|
|
Chemicals
|
1 %
|
|
2 %
|
|
1 %
|
|
1 %
|
|
Other
|
20 %
|
|
21 %
|
|
20 %
|
|
21 %
|
|
|
Total yield
|
101 %
|
|
102 %
|
|
101 %
|
|
102 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Operating Information - West Coast
(Torrance and Martinez)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
312.8
|
|
299.4
|
|
291.8
|
|
286.8
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
303.9
|
|
288.9
|
|
283.3
|
|
279.3
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
27.7
|
|
26.3
|
|
51.3
|
|
50.6
|
|
Gross margin per barrel
of throughput
|
$ 8.05
|
|
$ 22.71
|
|
$ 6.22
|
|
$ 12.43
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 19.41
|
|
$ 34.49
|
|
$ 20.01
|
|
$ 24.05
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 9.34
|
|
$ 10.39
|
|
$ 11.60
|
|
$ 10.21
|
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
66 %
|
|
64 %
|
|
63 %
|
|
65 %
|
|
Medium
|
20 %
|
|
19 %
|
|
19 %
|
|
20 %
|
|
Light
|
1 %
|
|
N/A
|
|
1 %
|
|
N/A
|
|
Other feedstocks and
blends
|
13 %
|
|
17 %
|
|
17 %
|
|
15 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
58 %
|
|
56 %
|
|
59 %
|
|
57 %
|
|
Distillates and
distillate blendstocks
|
31 %
|
|
32 %
|
|
30 %
|
|
30 %
|
|
Other
|
14 %
|
|
16 %
|
|
14 %
|
|
16 %
|
|
|
Total yield
|
103 %
|
|
104 %
|
|
103 %
|
|
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 10)
|
|
(Unaudited, in millions, except per barrel
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
|
|
|
|
|
|
June 30, 2023
|
|
June 30, 2022
|
|
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
|
$ 9,157.6
|
|
$
107.54
|
|
$
14,077.7
|
|
$
164.15
|
|
Less: Cost of
sales
|
8,647.2
|
|
101.54
|
|
12,138.2
|
|
141.54
|
|
Consolidated gross margin
|
$
510.4
|
|
$
6.00
|
|
$ 1,939.5
|
|
$
22.61
|
|
Reconciliation of consolidated gross margin to gross
refining margin:
|
|
|
|
|
|
|
|
|
Consolidated gross margin
|
$
510.4
|
|
$
6.00
|
|
$ 1,939.5
|
|
$
22.61
|
|
Add: PBFX operating
expense
|
30.2
|
|
0.34
|
|
28.3
|
|
0.33
|
|
Add: PBFX depreciation
expense
|
9.2
|
|
0.11
|
|
9.1
|
|
0.11
|
|
Less: Revenues of
PBFX
|
(94.0)
|
|
(1.10)
|
|
(93.4)
|
|
(1.09)
|
|
Add: Refinery operating
expense
|
571.4
|
|
6.71
|
|
613.8
|
|
7.16
|
|
Add: Refinery
depreciation expense
|
133.0
|
|
1.56
|
|
110.9
|
|
1.29
|
|
Gross refining margin
|
$ 1,160.2
|
|
$
13.62
|
|
$ 2,608.2
|
|
$
30.41
|
|
Gross refining margin excluding special
items
|
$ 1,160.2
|
|
$
13.62
|
|
$ 2,608.2
|
|
$
30.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
|
June 30, 2023
|
|
June 30, 2022
|
|
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
|
$
18,452.6
|
|
$
114.07
|
|
$
23,219.4
|
|
$
144.52
|
|
Less: Cost of
sales
|
17,365.8
|
|
107.35
|
|
21,083.1
|
|
131.22
|
|
Consolidated gross margin
|
$ 1,086.8
|
|
$
6.72
|
|
$ 2,136.3
|
|
$
13.30
|
|
Reconciliation of consolidated gross margin to gross
refining margin:
|
|
|
|
|
|
|
|
|
Consolidated gross margin
|
$ 1,086.8
|
|
$
6.72
|
|
$ 2,136.3
|
|
$
13.30
|
|
Add: PBFX operating
expense
|
67.2
|
|
0.42
|
|
57.6
|
|
0.36
|
|
Add: PBFX depreciation
expense
|
18.2
|
|
0.11
|
|
18.6
|
|
0.12
|
|
Less: Revenues of
PBFX
|
(192.5)
|
|
(1.19)
|
|
(182.8)
|
|
(1.14)
|
|
Add: Refinery operating
expense
|
1,320.4
|
|
8.16
|
|
1,209.4
|
|
7.53
|
|
Add: Refinery
depreciation expense
|
265.9
|
|
1.64
|
|
219.8
|
|
1.37
|
|
Gross refining margin
|
$ 2,566.0
|
|
$
15.86
|
|
$ 3,458.9
|
|
$
21.54
|
|
Gross refining margin excluding special
items
|
$ 2,566.0
|
|
$
15.86
|
|
$ 3,458.9
|
|
$
21.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Class A
common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Represents an
adjustment to reflect PBF Energy's estimated annualized statutory
corporate tax rate of approximately 26.0% and 25.9% for the 2023
and 2022 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
excluding special items, income from operations excluding special
items, EBITDA excluding special items and gross refining margin
excluding special items. Special items for the three and six months
ended June 30, 2023 and 2022 relate to net changes in fair
value of contingent consideration, gain on the extinguishment of
debt, changes in the Tax Receivable Agreement liability, gain on
land sales, gain on formation of SBR equity method investment, net
tax benefit on remeasurement of deferred tax assets, and recomputed
income tax on special items, 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:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair value of contingent consideration,
net - During the three months ended June 30, 2023,
we recorded a net change in fair value of the Martinez Contingent
Consideration which increased income from operations and net income
by $16.6 million and $12.3 million, respectively. During the six
months ended June 30, 2023, we recorded a net change in fair
value of the Martinez Contingent Consideration which increased
income from operations and net income by $32.9 million and $24.3
million, respectively. During the three months ended June 30,
2022, we recorded a change in fair value of the Martinez Contingent
Consideration which decreased income from operations and net income
by $77.6 million and $57.5 million, respectively. During the six
months ended June 30, 2022, we recorded a change in fair value
of the Martinez Contingent Consideration which decreased income
from operations and net income by $127.9 million and
$94.8 million, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on extinguishment of debt - During
the three and six months ended June 30, 2022, we recorded a
pre-tax gain on extinguishment of debt related to the repurchase of
a portion of the 6.00% senior unsecured notes due 2028 and the
7.25% senior unsecured notes due 2025, which increased income
before taxes and net income by $3.8 million and $2.8 million,
respectively. There were no such gains during the three and six
months ended June 30, 2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on land sales - During the six months
ended June 30, 2023, we recorded a gain on the sale of a
separate parcel of real property acquired as part of the Torrance
refinery, but not part of the refinery itself, which increased
income from operations and net income by $1.7 million and $1.3
million, respectively. There was no such gain in any other periods
presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Gain on formation of SBR equity method investment
- During the three and six months ended June 30,
2023, we recorded a gain resulting from the difference between the
carrying value and the fair value of the assets associated with the
contributed SBR business, which increased income from operations
and net income by $968.9 million and $717.0 million, respectively.
There was no such gain in any other periods presented.
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Change in Tax Receivable Agreement
liability - During the three and six months ended
June 30, 2023, there was no change in the Tax Receivable
Agreement liability. During the three months ended June 30,
2022, we recorded a change in the Tax Receivable Agreement
liability that decreased income before income taxes and net income
by $267.2 million and $198.0 million, respectively. During the six
months ended June 30, 2022, we recorded a change in the Tax
Receivable Agreement liability that decreased income before income
taxes and net income by $286.5 million and $212.3 million,
respectively. The changes in the Tax Receivable Agreement liability
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, as well as periodic
adjustments to our liability based, in part, on an updated estimate
of the amounts that we expect to pay, using assumptions consistent
with those used in our concurrent estimate of the deferred tax
asset valuation allowance.
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Net tax benefit on remeasurement of deferred tax
assets - The deferred tax valuation allowance was
reduced to zero as of December 31, 2022, therefore, there was no
impact to our financial statements related to the remeasurement of
deferred tax assets as of June 30, 2023. During the three and
six months ended June 30, 2022, we recorded a decrease to our
deferred tax valuation allowance of $205.4 million and
$197.6 million, respectively, in accordance with ASC 740, of
which $136.2 million and $123.4 million, respectively,
related to a tax benefit with respect to the remeasurement of
deferred tax assets and the balance related to our net changes in
the Tax Receivable Agreement Liability.
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(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.
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(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, 2023 and 2022, respectively. Common stock equivalents
exclude the effects of performance share units and options and
warrants to purchase 1,057,673 and 1,130,197 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,
2023, respectively. Common stock equivalents exclude the effects of
performance share units and options and warrants to purchase
3,539,238 and 7,934,448 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, 2022, respectively. For
periods showing a net loss, all common stock equivalents and
unvested restricted stock are considered anti-dilutive.
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(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, change in the fair value of
catalyst obligations, changes in the Tax Receivable Agreement
liability due to factors out of PBF Energy's control such as
changes in tax rates, net change in the fair value of contingent
consideration 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.
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(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, 2023, 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"), an indirect wholly-owned subsidiary
of PBF Energy and PBF LLC, 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.
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(9) Our market
indicators table summarizes certain market indicators relating to
our operating results as reported by Platts, a division of The
McGraw-Hill Companies. Effective RIN basket price is recalculated
based on information as reported by Argus.
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(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.
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(11) Represents
refinery operating expenses, including corporate-owned logistics
assets, excluding depreciation and amortization, divided by total
crude oil and feedstocks throughput.
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(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.
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(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.
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June 30,
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December 31,
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2023
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2022
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(in
millions)
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Total debt
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$
1,441.5
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$
1,959.1
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Total equity
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6,183.3
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5,056.0
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Total
capitalization
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$
7,624.8
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$
7,015.1
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Total debt
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$
1,441.5
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$
1,959.1
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Total equity excluding
special items
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5,045.2
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4,660.5
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Total capitalization
excluding special items
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$
6,486.7
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$
6,619.6
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Total equity
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$
6,183.3
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$
5,056.0
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Special Items
(Note 4)
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Add: Change in fair
value of contingent consideration, net
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(45.9)
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(13.0)
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Add: Gain on land
sales
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(89.5)
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(87.8)
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Add: Gain on formation
of SBR equity method investment
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(968.9)
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—
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Add: Cumulative
historical equity adjustments (a)
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(421.6)
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(421.6)
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Less: Recomputed
income tax on special items
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387.8
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126.9
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Net impact of
special items
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(1,138.1)
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(395.5)
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Total equity excluding
special items
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$
5,045.2
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$
4,660.5
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Total debt
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$
1,441.5
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$
1,959.1
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Less: Cash and cash equivalents
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1,516.9
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2,203.6
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Net Debt
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$
(75.4)
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$
(244.5)
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Total debt to
capitalization ratio
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19 %
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28 %
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Total debt to
capitalization ratio, excluding special items
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22 %
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30 %
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Net debt to
capitalization ratio*
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(1) %
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(5) %
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Net debt to
capitalization ratio, excluding special items*
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(2) %
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(6) %
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*Negative ratio exists
at 6/30/2023 and 12/31/2022 as cash is in excess of
debt.
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(a) Refer to the
Company's 2022 Annual Report on Form 10-K ("Notes to Non-GAAP
Financial Measures" within Management's Discussion and Analysis of
Financial Condition and Results of Operations) for a listing of
special items included in cumulative historical equity adjustments
prior to 2023.
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SOURCE PBF Energy Inc.