- Third quarter income from operations of $1,077.1 million (excluding special items, third
quarter income from operations of $1,145.6
million)
- Increased quarterly dividend by 25% to $0.25 per share
- Reduced debt by approximately $170
million
- St. Bernard Renewables reports profitability in first full
quarter of operations
- Repurchased approximately 14.3 million shares for approximately
$590 million, from inception to
date
PARSIPPANY, N.J., Nov. 2, 2023
/PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) today reported third
quarter 2023 income from operations of $1,077.1 million as compared to income from
operations of $1,400.0 million for
the third quarter of 2022. Excluding special items, third quarter
2023 income from operations was $1,145.6
million as compared to income from operations of
$1,403.0 million for the third
quarter of 2022.
The company reported third quarter 2023 net income of
$794.1 million and net income
attributable to PBF Energy Inc. of $786.4
million or $6.11 per share.
This compares to net income of $1,084.2
million, and net income attributable to PBF Energy Inc. of
$1,056.4 million or $8.40 per share for the third quarter 2022.
Non-cash special items included in the third quarter 2023 results,
which decreased net income by a net, after-tax charge of
$65.0 million, or $0.50 per share, primarily consisted of a change
in fair value of the contingent consideration associated with the
acquisition of the Martinez refinery and related logistics assets,
loss on extinguishment of debt and exit costs associated with the
early termination of the Inventory Intermediation Agreement.
Adjusted fully-converted net income for the third quarter 2023,
excluding special items, was $857.0
million, or $6.61 per share on
a fully-exchanged, fully-diluted basis, as described below,
compared to adjusted fully-converted net income of $1,008.1 million or $7.96 per share, for the third quarter 2022.
Matt Lucey, PBF Energy's
President and CEO, said, "With the financial results of the third
quarter, PBF has further strengthened its financial condition,
while continuing to invest in our assets. We reduced and extended
maturities of our debt and increased liquidity." Mr. Lucey
continued, "For its first quarter of operations, SBR has generated
positive earnings which provides validation for our partnership and
investment in the renewable fuels sector."
Mr. Lucey concluded, "Looking ahead, our balance sheet and the
safe, reliable operations of all our assets remain our primary
focus. We saw increased volatility in the refined product markets
as we entered the fourth quarter and we expect that volatility to
continue. We have actively positioned PBF, financially and
operationally, to be resilient in all market conditions. 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
$0.25 per share of Class A common
stock on November 30, 2023, to
holders of record at the close of business on November 15, 2023.
St. Bernard Renewables
As previously announced, on
June 28, 2023, Eni Sustainable
Mobility SpA and PBF announced the closing of the 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
made capital reimbursements and contributions totaling $845.5 million to PBF following successful
closing of the transaction and commencement of operations of the
pre-treatment unit ("PTU").
SBR averaged over 17,000 barrels per day of renewable diesel
production in the third quarter. Post start-up, operations are
being optimized and production in the fourth quarter of 2023 will
be impacted by an ongoing catalyst change at the renewable diesel
unit during October and November.
PBF Strategic Update and Outlook
PBF remains committed
to the safety and reliability of our operations. Through successful
operational execution, we seek to maintain the quality of our
balance sheet and preserve the ability of our assets to continue
supporting our long-term strategic goal of increasing the value of
our company. At quarter-end, we had approximately $1.9 billion of cash and approximately
$1.2 billion of total debt. Our
outstanding environmental credit payables were reduced by
approximately $340 million in the
third quarter, over $900 million
year-to-date, and we expect to further 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 $590 million of equity,
including approximately $115 million
in the third 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 $800 to $850
million range. We are currently conducting extensive
turnaround work on the West Coast, at both our Torrance and
Martinez refineries.
Timing and throughput ranges provided reflect current
expectations and are subject to change based on market conditions
and other factors. Fourth quarter throughput expectations are
included in the table below.
|
Expected throughput
ranges (barrels per day)
|
|
Fourth Quarter
2023
|
|
Low
|
High
|
|
East Coast
|
315,000
|
335,000
|
|
Mid-continent
|
135,000
|
145,000
|
|
Gulf Coast
|
170,000
|
180,000
|
|
West Coast
|
250,000
|
270,000
|
|
Total
|
870,000
|
930,000
|
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,
November 2, 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
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenues
|
$ 10,733.5
|
|
$ 12,764.6
|
|
$ 29,186.1
|
|
$ 35,984.0
|
|
Cost and
expenses:
|
|
|
|
|
|
|
|
|
Cost of products and
other
|
8,720.3
|
|
10,417.3
|
|
24,423.6
|
|
30,004.0
|
|
Operating expenses
(excluding depreciation and amortization expense as reflected
below)
|
645.3
|
|
646.0
|
|
2,023.7
|
|
1,904.0
|
|
Depreciation and
amortization expense
|
140.1
|
|
128.1
|
|
424.2
|
|
366.5
|
|
Cost of
sales
|
9,505.7
|
|
11,191.4
|
|
26,871.5
|
|
32,274.5
|
|
General and
administrative expenses (excluding depreciation and amortization
expense as reflected below)
|
92.9
|
|
168.2
|
|
257.1
|
|
374.9
|
|
Depreciation and
amortization expense
|
3.8
|
|
2.0
|
|
8.0
|
|
5.8
|
|
Change in fair value of
contingent consideration, net
|
65.3
|
|
3.0
|
|
32.4
|
|
130.9
|
|
Equity income in
investee
|
(14.6)
|
|
—
|
|
(14.6)
|
|
—
|
|
Loss (gain) on
formation of SBR equity method investment
|
3.2
|
|
—
|
|
(965.7)
|
|
—
|
|
Loss (gain) on sale of
assets
|
0.1
|
|
—
|
|
(1.3)
|
|
0.3
|
|
Total cost and
expenses
|
9,656.4
|
|
11,364.6
|
|
26,187.4
|
|
32,786.4
|
|
Income from
operations
|
1,077.1
|
|
1,400.0
|
|
2,998.7
|
|
3,197.6
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(22.7)
|
|
(52.7)
|
|
(55.2)
|
|
(216.6)
|
|
Change in Tax
Receivable Agreement liability
|
—
|
|
(1.7)
|
|
—
|
|
(288.2)
|
|
Change in fair value of
catalyst obligations
|
(0.1)
|
|
(2.6)
|
|
1.1
|
|
(0.3)
|
|
Loss on extinguishment
of debt
|
(5.7)
|
|
(69.9)
|
|
(5.7)
|
|
(66.1)
|
|
Other non-service
components of net periodic benefit cost
|
0.1
|
|
2.2
|
|
0.5
|
|
6.6
|
|
Income before income
taxes
|
1,048.7
|
|
1,275.3
|
|
2,939.4
|
|
2,633.0
|
|
Income tax
expense
|
254.6
|
|
191.1
|
|
729.0
|
|
316.3
|
|
Net
income
|
794.1
|
|
1,084.2
|
|
2,210.4
|
|
2,316.7
|
|
Less: net income
attributable to noncontrolling interests
|
7.7
|
|
27.8
|
|
21.5
|
|
77.7
|
|
Net income
attributable to PBF Energy Inc. stockholders
|
$
786.4
|
|
$
1,056.4
|
|
$
2,188.9
|
|
$
2,239.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to Class A common stock per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
6.35
|
|
$
8.65
|
|
$
17.38
|
|
$
18.46
|
|
|
Diluted
|
$
6.11
|
|
$
8.40
|
|
$
16.76
|
|
$
18.03
|
|
|
Weighted-average shares
outstanding-basic
|
123,793,179
|
|
122,113,570
|
|
125,938,259
|
|
121,299,726
|
|
|
Weighted-average shares
outstanding-diluted
|
129,690,375
|
|
126,585,809
|
|
131,547,028
|
|
125,092,933
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
$
0.20
|
|
$
—
|
|
$
0.60
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
792.0
|
|
$
1,063.3
|
|
$
2,204.4
|
|
$
2,254.9
|
|
|
Adjusted
fully-converted net income per fully exchanged, fully diluted
share
|
$
6.11
|
|
$
8.40
|
|
$
16.76
|
|
$
18.03
|
|
|
Adjusted
fully-converted shares outstanding - diluted (Note 6)
|
129,690,375
|
|
126,585,809
|
|
131,547,028
|
|
125,092,933
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net income
attributable to PBF Energy Inc. stockholders
|
|
$
786.4
|
|
$
1,056.4
|
|
$
2,188.9
|
|
$
2,239.0
|
|
Less: Income allocated
to participating securities
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Income available to
PBF Energy Inc. stockholders - basic
|
|
786.4
|
|
1,056.4
|
|
2,188.9
|
|
2,239.0
|
|
Add: Net income
attributable to noncontrolling interests (Note 2)
|
|
7.6
|
|
9.2
|
|
21.0
|
|
21.4
|
|
Less: Income tax
expense (Note 3)
|
|
(2.0)
|
|
(2.3)
|
|
(5.5)
|
|
(5.5)
|
|
Adjusted
fully-converted net income
|
|
$
792.0
|
|
$
1,063.3
|
|
$
2,204.4
|
|
$
2,254.9
|
|
Special items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add: Change in fair
value of contingent consideration, net
|
|
65.3
|
|
3.0
|
|
32.4
|
|
130.9
|
|
Add: Loss on
extinguishment of debt and termination of Inventory Intermediation
Agreement
|
|
19.2
|
|
69.9
|
|
19.2
|
|
66.1
|
|
Add: Change in Tax
Receivable Agreement liability
|
|
—
|
|
1.7
|
|
—
|
|
288.2
|
|
Add: Gain on land
sales
|
|
—
|
|
—
|
|
(1.7)
|
|
—
|
|
Add: Loss (gain) on
formation of SBR equity method investment
|
|
3.2
|
|
—
|
|
(965.7)
|
|
—
|
|
Add: Net tax benefit on
remeasurement of deferred tax assets
|
|
—
|
|
(110.4)
|
|
—
|
|
(233.8)
|
|
Less: Recomputed income
tax on special items (Note 3)
|
|
(22.7)
|
|
(19.4)
|
|
238.2
|
|
(125.7)
|
|
Adjusted
fully-converted net income excluding special items
|
|
$
857.0
|
|
$
1,008.1
|
|
$
1,526.8
|
|
$
2,380.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding of PBF Energy Inc.
|
|
123,793,179
|
|
122,113,570
|
|
125,938,259
|
|
121,299,726
|
|
Conversion of PBF LLC
Series A Units (Note 5)
|
|
910,494
|
|
910,457
|
|
910,469
|
|
920,529
|
|
Common stock
equivalents (Note 6)
|
|
4,986,702
|
|
3,561,782
|
|
4,698,300
|
|
2,872,678
|
|
Fully-converted
shares outstanding - diluted
|
|
129,690,375
|
|
126,585,809
|
|
131,547,028
|
|
125,092,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income per fully exchanged, fully diluted
shares outstanding (Note 6)
|
|
$
6.11
|
|
$
8.40
|
|
$
16.76
|
|
$
18.03
|
|
|
Adjusted
fully-converted net income excluding special items per fully
exchanged, fully diluted shares outstanding (Note 4,
6)
|
|
$
6.61
|
|
$
7.96
|
|
$
11.61
|
|
$
19.03
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
RECONCILIATION OF
INCOME FROM OPERATIONS TO INCOME FROM OPERATIONS EXCLUDING SPECIAL
ITEMS
|
|
September
30,
|
|
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Income from
operations
|
|
$
1,077.1
|
|
$
1,400.0
|
|
$
2,998.7
|
|
$
3,197.6
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add: Change in fair
value of contingent consideration, net
|
|
65.3
|
|
3.0
|
|
32.4
|
|
130.9
|
|
Add: Gain on land
sales
|
|
—
|
|
—
|
|
(1.7)
|
|
—
|
|
Add: Loss (gain) on
formation of SBR equity method investment
|
|
3.2
|
|
—
|
|
(965.7)
|
|
—
|
|
Income from
operations excluding special items
|
|
$
1,145.6
|
|
$
1,403.0
|
|
$
2,063.7
|
|
$
3,328.5
|
|
|
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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
RECONCILIATION OF
NET INCOME TO EBITDA AND EBITDA EXCLUDING SPECIAL
ITEMS
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
794.1
|
|
$ 1,084.2
|
|
$ 2,210.4
|
|
$ 2,316.7
|
|
Add: Depreciation and
amortization expense
|
|
143.9
|
|
130.1
|
|
432.2
|
|
372.3
|
|
Add: Interest expense,
net
|
|
22.7
|
|
52.7
|
|
55.2
|
|
216.6
|
|
Add: Income tax
expense
|
|
254.6
|
|
191.1
|
|
729.0
|
|
316.3
|
|
EBITDA
|
|
|
$ 1,215.3
|
|
$ 1,458.1
|
|
$ 3,426.8
|
|
$ 3,221.9
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add: Change in fair
value of contingent consideration, net
|
|
65.3
|
|
3.0
|
|
32.4
|
|
130.9
|
|
Add: Loss on
extinguishment of debt
|
|
5.7
|
|
69.9
|
|
5.7
|
|
66.1
|
|
Add: Change in Tax
Receivable Agreement liability
|
|
—
|
|
1.7
|
|
—
|
|
288.2
|
|
Add: Gain on land
sales
|
|
—
|
|
—
|
|
(1.7)
|
|
—
|
|
Add: Loss (gain) on
formation of SBR equity method investment
|
|
3.2
|
|
—
|
|
(965.7)
|
|
—
|
|
EBITDA excluding
special items
|
|
$ 1,289.5
|
|
$ 1,532.7
|
|
$ 2,497.5
|
|
$ 3,707.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
RECONCILIATION OF
EBITDA TO ADJUSTED EBITDA
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$ 1,215.3
|
|
$ 1,458.1
|
|
$ 3,426.8
|
|
$ 3,221.9
|
|
Add: Stock-based
compensation
|
|
8.8
|
|
6.9
|
|
27.7
|
|
24.9
|
|
Add: Change in fair
value of catalyst obligations
|
|
0.1
|
|
2.6
|
|
(1.1)
|
|
0.3
|
|
Add: Change in fair
value of contingent consideration, net (Note 4)
|
|
65.3
|
|
3.0
|
|
32.4
|
|
130.9
|
|
Add: Loss on
extinguishment of debt (Note 4)
|
|
5.7
|
|
69.9
|
|
5.7
|
|
66.1
|
|
Add: Change in Tax
Receivable Agreement liability (Note 4)
|
|
—
|
|
1.7
|
|
—
|
|
288.2
|
|
Add: Gain on land
sales (Note 4)
|
|
—
|
|
—
|
|
(1.7)
|
|
—
|
|
Add: Loss (gain) on
formation of SBR equity method investment (Note 4)
|
|
3.2
|
|
—
|
|
(965.7)
|
|
—
|
|
Adjusted
EBITDA
|
|
|
$ 1,298.4
|
|
$ 1,542.2
|
|
$ 2,524.1
|
|
$ 3,732.3
|
|
|
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,
|
|
|
|
|
|
2023
|
|
2022
|
|
Balance Sheet
Data:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
1,892.5
|
|
$
2,203.6
|
|
Inventories
|
3,180.9
|
|
2,763.6
|
|
Total
assets
|
14,692.8
|
|
13,549.1
|
|
Total debt
|
1,243.0
|
|
1,959.1
|
|
Total
equity
|
6,861.8
|
|
5,056.0
|
|
Total equity excluding
special items (Note 4, 13)
|
$
5,788.7
|
|
$
4,660.5
|
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio (Note 13)
|
15 %
|
|
28 %
|
|
Total debt to
capitalization ratio, excluding special items (Note 13)
|
18 %
|
|
30 %
|
|
Net debt to
capitalization ratio* (Note 13)
|
(10) %
|
|
(5) %
|
|
Net debt to
capitalization ratio, excluding special items* (Note 13)
|
(13) %
|
|
(6) %
|
|
|
|
|
|
|
|
|
|
* Negative ratio
exists as of September 30, 2023 and December 31, 2022 as cash is in
excess of debt.
|
|
|
|
|
|
|
SUMMARIZED STATEMENT
OF CASH FLOW DATA
|
|
(Unaudited, in
millions)
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
|
2023
|
|
2022
|
|
Cash flows provided by
operating activities
|
$
1,032.6
|
|
$
3,648.9
|
|
Cash flows used in
investing activities
|
(105.8)
|
|
(683.7)
|
|
Cash flows used in
financing activities
|
(1,237.9)
|
|
(2,398.1)
|
|
Net change in cash and
cash equivalents
|
(311.1)
|
|
567.1
|
|
Cash and cash
equivalents, beginning of period
|
2,203.6
|
|
1,341.5
|
|
Cash and cash
equivalents, end of period
|
$
1,892.5
|
|
$
1,908.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2023
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$ 10,725.3
|
|
$
94.8
|
|
$
—
|
|
$
(86.6)
|
|
$
10,733.5
|
|
Depreciation and
amortization expense
|
131.2
|
|
8.9
|
|
3.8
|
|
—
|
|
143.9
|
|
Income (loss) from
operations (1)
|
1,175.7
|
|
49.6
|
|
(148.2)
|
|
—
|
|
1,077.1
|
|
Interest expense
(income), net
|
10.1
|
|
(0.9)
|
|
13.5
|
|
—
|
|
22.7
|
|
Capital expenditures
(2)
|
183.7
|
|
3.4
|
|
3.1
|
|
—
|
|
190.2
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2022
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$ 12,752.3
|
|
$
89.6
|
|
$
—
|
|
$
(77.3)
|
|
$
12,764.6
|
|
Depreciation and
amortization expense
|
119.1
|
|
9.0
|
|
2.0
|
|
—
|
|
130.1
|
|
Income (loss) from
operations
|
1,522.9
|
|
44.7
|
|
(167.6)
|
|
—
|
|
1,400.0
|
|
Interest expense,
net
|
3.2
|
|
9.7
|
|
39.8
|
|
—
|
|
52.7
|
|
Capital expenditures
(2)
|
242.4
|
|
1.5
|
|
2.9
|
|
—
|
|
246.8
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2023
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$ 29,159.2
|
|
$
287.3
|
|
$
—
|
|
$
(260.4)
|
|
$
29,186.1
|
|
Depreciation and
amortization expense
|
397.1
|
|
27.1
|
|
8.0
|
|
—
|
|
432.2
|
|
Income from
operations (1)
|
2,157.0
|
|
151.2
|
|
690.5
|
|
—
|
|
2,998.7
|
|
Interest (income)
expense, net
|
(0.9)
|
|
2.9
|
|
53.2
|
|
—
|
|
55.2
|
|
Capital expenditures
(2)
|
925.0
|
|
8.5
|
|
6.8
|
|
—
|
|
940.3
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2022
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$ 35,944.5
|
|
$
272.4
|
|
$
—
|
|
$
(232.9)
|
|
$
35,984.0
|
|
Depreciation and
amortization expense
|
338.9
|
|
27.6
|
|
5.8
|
|
—
|
|
372.3
|
|
Income (loss) from
operations
|
3,552.4
|
|
140.4
|
|
(495.2)
|
|
—
|
|
3,197.6
|
|
Interest expense,
net
|
11.8
|
|
30.0
|
|
174.8
|
|
—
|
|
216.6
|
|
Capital expenditures
(2)
|
672.9
|
|
4.6
|
|
6.2
|
|
—
|
|
683.7
|
|
|
|
|
|
|
|
|
|
|
|
Balance at September
30, 2023
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Total Assets
(3)
|
$ 12,890.3
|
|
$
812.2
|
|
$
1,028.6
|
|
$
(38.3)
|
|
$
14,692.8
|
|
|
|
|
|
|
|
|
|
|
|
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 nine months ended
September 30, 2023 includes a loss of $3.2 million and a gain
of $965.7 million, respectively, associated with the formation
of the SBR equity method investment.
|
|
(2) For the three and
nine months ended September 30, 2023, the Company's refining
segment includes $35.0 million and $300.3 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 nine months ended
September 30, 2022, the Company's refining segment included
$103.0 million and $195.0 million, respectively, of
capital expenditures related to the Renewable Diesel
Facility.
|
|
(3) Corporate assets
include our Equity method investment in SBR of $940.0
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
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
Market Indicators
(dollars per barrel) (Note 9)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Dated Brent crude
oil
|
$ 87.02
|
|
$
100.49
|
|
$ 82.11
|
|
$
105.34
|
|
West Texas Intermediate
(WTI) crude oil
|
$ 82.54
|
|
$ 91.63
|
|
$ 77.36
|
|
$ 98.46
|
|
Light Louisiana Sweet
(LLS) crude oil
|
$ 84.93
|
|
$ 94.03
|
|
$ 79.82
|
|
$
100.55
|
|
Alaska North Slope
(ANS) crude oil
|
$ 87.95
|
|
$ 98.84
|
|
$ 81.74
|
|
$
102.34
|
|
Crack
Spreads:
|
|
|
|
|
|
|
|
|
Dated Brent (NYH)
2-1-1
|
$ 35.49
|
|
$ 37.51
|
|
$ 31.89
|
|
$ 38.14
|
|
WTI (Chicago)
4-3-1
|
$ 26.12
|
|
$ 35.35
|
|
$ 27.67
|
|
$ 32.63
|
|
LLS (Gulf Coast)
2-1-1
|
$ 36.19
|
|
$ 38.75
|
|
$ 32.24
|
|
$ 37.77
|
|
ANS (West Coast-LA)
4-3-1
|
$ 50.22
|
|
$ 46.87
|
|
$ 40.80
|
|
$ 44.45
|
|
ANS (West Coast-SF)
3-2-1
|
$ 48.88
|
|
$ 47.97
|
|
$ 40.53
|
|
$ 44.54
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
|
Dated Brent (foreign)
less WTI
|
$ 4.48
|
|
$ 8.86
|
|
$ 4.75
|
|
$ 6.87
|
|
Dated Brent less Maya
(heavy, sour)
|
$ 14.59
|
|
$ 16.10
|
|
$ 14.24
|
|
$ 12.81
|
|
Dated Brent less WTS
(sour)
|
$ 3.80
|
|
$ 8.26
|
|
$ 4.72
|
|
$ 6.89
|
|
Dated Brent less ASCI
(sour)
|
$ 4.23
|
|
$ 11.22
|
|
$ 5.60
|
|
$ 9.55
|
|
WTI less WCS (heavy,
sour)
|
$ 17.13
|
|
$ 22.61
|
|
$ 16.66
|
|
$ 18.74
|
|
WTI less Bakken (light,
sweet)
|
$ (1.97)
|
|
$ (4.77)
|
|
$ (2.20)
|
|
$ (4.08)
|
|
WTI less Syncrude
(light, sweet)
|
$ (2.31)
|
|
$ (6.30)
|
|
$ (2.76)
|
|
$ (3.54)
|
|
WTI less LLS (light,
sweet)
|
$ (2.38)
|
|
$ (2.40)
|
|
$ (2.46)
|
|
$ (2.08)
|
|
WTI less ANS (light,
sweet)
|
$ (5.41)
|
|
$ (7.21)
|
|
$ (4.38)
|
|
$ (3.88)
|
|
Effective RIN basket
price
|
$ 7.42
|
|
$ 8.12
|
|
$ 7.76
|
|
$ 7.36
|
|
Natural gas (dollars
per MMBTU)
|
$ 2.66
|
|
$ 7.95
|
|
$ 2.58
|
|
$ 6.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Operating
Information
|
|
|
|
|
|
|
|
|
Production (barrels per
day ("bpd") in thousands)
|
952.7
|
|
996.7
|
|
919.6
|
|
933.7
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
939.7
|
|
984.7
|
|
909.2
|
|
920.4
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
86.4
|
|
90.6
|
|
248.2
|
|
251.3
|
|
Consolidated gross
margin per barrel of throughput
|
$ 14.20
|
|
$ 17.36
|
|
$ 9.33
|
|
$ 14.76
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 22.24
|
|
$ 24.96
|
|
$ 18.09
|
|
$ 22.77
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 7.12
|
|
$ 6.84
|
|
$ 7.80
|
|
$ 7.28
|
|
Crude and feedstocks
(% of total throughput) (Note 12)
|
|
|
|
|
|
|
|
|
Heavy
|
27 %
|
|
31 %
|
|
27 %
|
|
32 %
|
|
Medium
|
33 %
|
|
39 %
|
|
34 %
|
|
35 %
|
|
Light
|
21 %
|
|
17 %
|
|
21 %
|
|
19 %
|
|
Other feedstocks and
blends
|
19 %
|
|
13 %
|
|
18 %
|
|
14 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total
throughput)
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
48 %
|
|
47 %
|
|
48 %
|
|
47 %
|
|
Distillates and
distillate blendstocks
|
34 %
|
|
35 %
|
|
34 %
|
|
35 %
|
|
Lubes
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
Chemicals
|
1 %
|
|
1 %
|
|
1 %
|
|
2 %
|
|
Other
|
17 %
|
|
17 %
|
|
17 %
|
|
16 %
|
|
|
Total yield
|
101 %
|
|
101 %
|
|
101 %
|
|
101 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Supplemental
Operating Information - East Coast Refining System (Delaware City
and Paulsboro)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
314.3
|
|
314.6
|
|
313.2
|
|
290.3
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
318.6
|
|
318.9
|
|
316.3
|
|
291.6
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
29.3
|
|
29.3
|
|
86.4
|
|
79.6
|
|
Gross margin per barrel
of throughput
|
$ 11.13
|
|
$ 14.25
|
|
$ 7.47
|
|
$ 13.53
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 17.51
|
|
$ 20.78
|
|
$ 14.71
|
|
$ 21.14
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 4.92
|
|
$ 5.31
|
|
$ 5.81
|
|
$ 6.19
|
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
19 %
|
|
18 %
|
|
14 %
|
|
24 %
|
|
Medium
|
37 %
|
|
61 %
|
|
42 %
|
|
47 %
|
|
Light
|
17 %
|
|
4 %
|
|
19 %
|
|
9 %
|
|
Other feedstocks and
blends
|
27 %
|
|
17 %
|
|
25 %
|
|
20 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
38 %
|
|
38 %
|
|
38 %
|
|
40 %
|
|
Distillates and
distillate blendstocks
|
37 %
|
|
38 %
|
|
36 %
|
|
38 %
|
|
Lubes
|
2 %
|
|
2 %
|
|
2 %
|
|
2 %
|
|
Chemicals
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
Other
|
21 %
|
|
20 %
|
|
22 %
|
|
19 %
|
|
|
Total yield
|
99 %
|
|
99 %
|
|
99 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - Mid-Continent (Toledo)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
156.0
|
|
162.5
|
|
137.4
|
|
155.5
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
152.6
|
|
159.3
|
|
135.0
|
|
152.6
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
14.0
|
|
14.7
|
|
36.8
|
|
41.7
|
|
Gross margin per barrel
of throughput
|
$ 10.17
|
|
$ 15.26
|
|
$ 5.53
|
|
$ 13.56
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 17.46
|
|
$ 23.21
|
|
$ 14.41
|
|
$ 21.35
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 5.88
|
|
$ 6.46
|
|
$ 7.20
|
|
$ 6.23
|
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Medium
|
36 %
|
|
32 %
|
|
38 %
|
|
35 %
|
|
Light
|
63 %
|
|
66 %
|
|
61 %
|
|
62 %
|
|
Other feedstocks and
blends
|
1 %
|
|
2 %
|
|
1 %
|
|
3 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
51 %
|
|
52 %
|
|
49 %
|
|
52 %
|
|
Distillates and
distillate blendstocks
|
37 %
|
|
36 %
|
|
35 %
|
|
36 %
|
|
Chemicals
|
4 %
|
|
5 %
|
|
4 %
|
|
5 %
|
|
Other
|
10 %
|
|
9 %
|
|
14 %
|
|
9 %
|
|
|
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
|
|
Nine Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Supplemental
Operating Information - Gulf Coast (Chalmette)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
187.1
|
|
194.6
|
|
176.0
|
|
188.2
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
184.3
|
|
192.5
|
|
174.3
|
|
185.2
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
17.0
|
|
17.7
|
|
47.6
|
|
50.5
|
|
Gross margin per barrel
of throughput
|
$ 12.52
|
|
$ 13.87
|
|
$ 10.37
|
|
$ 12.79
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 18.03
|
|
$ 20.25
|
|
$ 16.87
|
|
$ 19.36
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 4.77
|
|
$ 5.41
|
|
$ 5.59
|
|
$ 5.69
|
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
17 %
|
|
11 %
|
|
17 %
|
|
15 %
|
|
Medium
|
40 %
|
|
46 %
|
|
37 %
|
|
42 %
|
|
Light
|
23 %
|
|
22 %
|
|
27 %
|
|
27 %
|
|
Other feedstocks and
blends
|
20 %
|
|
21 %
|
|
19 %
|
|
16 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
47 %
|
|
44 %
|
|
45 %
|
|
43 %
|
|
Distillates and
distillate blendstocks
|
34 %
|
|
36 %
|
|
35 %
|
|
37 %
|
|
Chemicals
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
Other
|
20 %
|
|
20 %
|
|
20 %
|
|
21 %
|
|
|
Total yield
|
102 %
|
|
101 %
|
|
101 %
|
|
102 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - West Coast (Torrance and
Martinez)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
295.3
|
|
325.0
|
|
293.0
|
|
299.7
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
284.2
|
|
314.0
|
|
283.6
|
|
291.0
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
26.1
|
|
28.9
|
|
77.4
|
|
79.5
|
|
Gross margin per barrel
of throughput
|
$ 18.92
|
|
$ 22.00
|
|
$ 10.51
|
|
$ 15.91
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 32.85
|
|
$ 33.02
|
|
$ 24.34
|
|
$ 27.31
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 11.79
|
|
$ 9.48
|
|
$ 11.67
|
|
$ 9.94
|
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
59 %
|
|
73 %
|
|
62 %
|
|
68 %
|
|
Medium
|
23 %
|
|
17 %
|
|
20 %
|
|
19 %
|
|
Light
|
2 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
Other feedstocks and
blends
|
16 %
|
|
9 %
|
|
17 %
|
|
12 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
58 %
|
|
55 %
|
|
59 %
|
|
56 %
|
|
Distillates and
distillate blendstocks
|
30 %
|
|
33 %
|
|
30 %
|
|
31 %
|
|
Other
|
16 %
|
|
16 %
|
|
14 %
|
|
16 %
|
|
|
Total yield
|
104 %
|
|
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
|
|
|
|
|
|
|
|
September 30,
2023
|
|
September 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
|
$
10,733.5
|
|
$
124.16
|
|
$
12,764.6
|
|
$
140.90
|
|
Less: Cost of
sales
|
9,505.7
|
|
109.96
|
|
11,191.4
|
|
123.54
|
|
Consolidated gross
margin
|
$ 1,227.8
|
|
$
14.20
|
|
$ 1,573.2
|
|
$
17.36
|
|
Reconciliation of
consolidated gross margin to gross refining margin:
|
|
|
|
|
|
|
|
|
Consolidated gross
margin
|
$ 1,227.8
|
|
$
14.20
|
|
$ 1,573.2
|
|
$
17.36
|
|
Add: PBFX operating
expense
|
34.2
|
|
0.40
|
|
30.3
|
|
0.34
|
|
Add: PBFX depreciation
expense
|
8.9
|
|
0.10
|
|
9.0
|
|
0.10
|
|
Less: Revenues of
PBFX
|
(94.8)
|
|
(1.10)
|
|
(89.6)
|
|
(0.99)
|
|
Add: Refinery operating
expense
|
615.8
|
|
7.12
|
|
620.1
|
|
6.84
|
|
Add: Refinery
depreciation expense
|
131.2
|
|
1.52
|
|
119.1
|
|
1.31
|
|
Gross refining
margin
|
$ 1,923.1
|
|
$
22.24
|
|
$ 2,262.1
|
|
$
24.96
|
|
Gross refining
margin excluding special items
|
$ 1,923.1
|
|
$
22.24
|
|
$ 2,262.1
|
|
$
24.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
September 30,
2023
|
|
September 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
|
$
29,186.1
|
|
$
117.59
|
|
$
35,984.0
|
|
$
143.21
|
|
Less: Cost of
sales
|
26,871.5
|
|
108.26
|
|
32,274.5
|
|
128.45
|
|
Consolidated gross
margin
|
$ 2,314.6
|
|
$
9.33
|
|
$ 3,709.5
|
|
$
14.76
|
|
Reconciliation of
consolidated gross margin to gross refining margin:
|
|
|
|
|
|
|
|
|
Consolidated gross
margin
|
$ 2,314.6
|
|
$
9.33
|
|
$ 3,709.5
|
|
$
14.76
|
|
Add: PBFX operating
expense
|
101.4
|
|
0.41
|
|
87.9
|
|
0.35
|
|
Add: PBFX depreciation
expense
|
27.1
|
|
0.11
|
|
27.6
|
|
0.11
|
|
Less: Revenues of
PBFX
|
(287.3)
|
|
(1.16)
|
|
(272.4)
|
|
(1.08)
|
|
Add: Refinery operating
expense
|
1,936.2
|
|
7.80
|
|
1,829.5
|
|
7.28
|
|
Add: Refinery
depreciation expense
|
397.1
|
|
1.60
|
|
338.9
|
|
1.35
|
|
Gross refining
margin
|
$ 4,489.1
|
|
$
18.09
|
|
$ 5,721.0
|
|
$
22.77
|
|
Gross refining
margin excluding special items
|
$ 4,489.1
|
|
$
18.09
|
|
$ 5,721.0
|
|
$
22.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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 nine
months ended September 30, 2023 and 2022 relate to net changes
in fair value of contingent consideration, loss on extinguishment
of debt and costs associated with the early termination of the
Inventory Intermediation Agreement, changes in the Tax Receivable
Agreement liability, gain on land sales, loss (gain) on the
formation of the 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 September 30, 2023, we recorded a net change in fair
value of the Martinez Contingent Consideration which decreased
income from operations and net income by $65.3 million and $48.3
million, respectively. During the nine months ended
September 30, 2023, we recorded a net change in fair value of
the Martinez Contingent Consideration which decreased income from
operations and net income by $32.4 million and $24.0 million,
respectively. During the three months ended September 30,
2022, we recorded a change in fair value of the Martinez Contingent
Consideration which decreased income from operations and net income
by $3.0 million and $2.2 million, respectively. During the nine
months ended September 30, 2022, we recorded a change in fair
value of the Martinez Contingent Consideration which decreased
income from operations and net income by $130.9 million and
$97.0 million, respectively.
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Loss on
extinguishment of debt and termination of Inventory Intermediation
Agreement - During the three and nine months ended
September 30, 2023, we recorded a pre-tax loss on
extinguishment of debt related to the redemption of our 7.25%
senior unsecured notes due 2025 and the amendment and restatement
of the Revolving Credit Facility, which decreased income before
income taxes and net income by $5.7 million and $4.2 million,
respectively. During the three months ended September 30,
2022, we recorded a pre-tax loss on extinguishment of debt related
to the redemption of our 9.25% senior secured notes due 2025 (the
"2025 Senior Secured Notes"), which decreased income before income
taxes and net income by $69.9 million and $51.8 million,
respectively. During the nine months ended September 30, 2022,
we recorded a pre-tax net loss on extinguishment of debt which
decreased income before income taxes and net income by $66.1
million and $49.0 million, respectively, primarily related to the
redemption of the 2025 Senior Secured Notes, partially offset by
the repurchase of a portion of the 6.00% senior unsecured notes due
2028 and the 7.25% senior unsecured notes due 2025.
During the three and
nine months ended September 30, 2023, in conjunction with the
early termination of the Third Inventory Intermediation Agreement,
we incurred certain one-time exit costs, which decreased income
before income taxes and net income by $13.5 million and $10.0
million, respectively. These costs are included within Interest
expense, net, in our Condensed Consolidated Statement of
operations.
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Gain on land
sales - During the nine months ended September 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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Loss (gain) on
formation of SBR equity method investment - During the three
months ended September 30, 2023, we recorded a loss associated
with the formation of the SBR equity method investment which
decreased income from operations and net income by $3.2 million and
$2.4 million, respectively. During the nine months ended
September 30, 2023, we recorded a net 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 $965.7 million
and $714.6 million, respectively. There was no such gain or loss in
any other periods presented.
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Change in Tax
Receivable Agreement liability - During the three and nine
months ended September 30, 2023, there was no change in the
Tax Receivable Agreement liability. During the three months ended
September 30, 2022, we recorded a change in the Tax Receivable
Agreement liability that decreased income before income taxes and
net income by $1.7 million and $1.3 million, respectively. During
the nine months ended September 30, 2022, we recorded a change
in the Tax Receivable Agreement liability that decreased income
before income taxes and net income by $288.2 million and $213.6
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
September 30, 2023. During the three and nine months ended
September 30, 2022, we recorded a decrease to our deferred tax
valuation allowance of $110.9 million and $308.5 million,
respectively, in accordance with ASC 740, of which
$110.4 million and $233.8 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 nine months ended
September 30, 2023 and 2022, respectively. Common stock
equivalents exclude the effects of performance share units and
options and warrants to purchase 2,000 and 28,809 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, 2023, respectively. Common stock equivalents
exclude the effects of performance share units and options and
warrants to purchase 3,102,413 and 7,361,773 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, 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, gain on land sales, loss on extinguishment of debt,
loss (gain) on the formation of the SBR equity method investment,
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 September 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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September
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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$
1,243.0
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$
1,959.1
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Total equity
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6,861.8
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5,056.0
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Total
capitalization
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$
8,104.8
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$
7,015.1
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Total debt
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$
1,243.0
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$
1,959.1
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Total equity excluding
special items
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5,788.7
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4,660.5
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Total capitalization
excluding special items
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$
7,031.7
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$
6,619.6
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Total equity
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$
6,861.8
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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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19.4
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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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(965.7)
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—
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Add: Loss on
extinguishment of debt and termination of Inventory Intermediation
Agreement
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53.1
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33.9
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Add: Cumulative
historical equity adjustments (a)
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(455.5)
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(455.5)
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Less: Recomputed
income tax on special items
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365.1
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126.9
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Net impact of
special items
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(1,073.1)
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(395.5)
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Total equity excluding
special items
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$
5,788.7
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$
4,660.5
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Total debt
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$
1,243.0
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$
1,959.1
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Less: Cash and cash equivalents
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1,892.5
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2,203.6
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Net Debt
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$
(649.5)
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$
(244.5)
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Total debt to
capitalization ratio
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15 %
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28 %
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Total debt to
capitalization ratio, excluding special items
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18 %
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30 %
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Net debt to
capitalization ratio*
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(10) %
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(5) %
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Net debt to
capitalization ratio, excluding special items*
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(13) %
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(6) %
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*Negative ratio exists
as of September 30, 2023 and December 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.
