- Fourth quarter loss from operations of $47.2 million (excluding special items, fourth
quarter loss from operations of $46.1
million)
- Full year income from operations of $2,951.5 million (excluding special items, full
year income from operations of $2,017.6
million)
- Year-ending consolidated cash balance of approximately
$1.8 billion
- Returned more than $180 million
to stockholders through dividends and share buybacks in the fourth
quarter and approximately $640
million in the year
- Increased total outstanding share repurchase authorization to
over $1 billion with new $750 million approval
PARSIPPANY, N.J., Feb. 15, 2024 /PRNewswire/ -- PBF
Energy Inc. (NYSE: PBF) today reported fourth quarter 2023 loss
from operations of $47.2 million as
compared to income from operations of $955.6
million for the fourth quarter of 2022. Excluding special
items, fourth quarter 2023 loss from operations was $46.1 million as compared to income from
operations of $873.0 million for the
fourth quarter of 2022.
The company reported fourth quarter 2023 net loss of
$48.4 million and net loss
attributable to PBF Energy Inc. of $48.4
million or $(0.40) per share.
This compares to net income of $656.1
million, and net income attributable to PBF Energy Inc. of
$637.8 million or $4.86 per share for the fourth quarter of 2022.
Special items in the fourth quarter 2023 results, which increased
our results by a net, after-tax benefit of $0.7 million, or $0.01 per share, primarily consisted of net
changes in the fair value of contingent consideration associated
with the acquisition of the Martinez refinery and related logistics
assets, and a benefit related to a change in the Tax Receivable
Agreement liability, offset by a decrease to our gain on formation
of Saint Bernard Renewables ("SBR") equity method investment and
our share of the SBR lower-of-cost-or-market ("LCM") inventory
adjustment. Adjusted fully-converted net loss for the fourth
quarter 2023, excluding special items, was $49.4 million, or $(0.41) per share on a fully-exchanged,
fully-diluted basis, as described below, compared to adjusted
fully-converted net income of $582.9
million or $4.41 per share,
for the fourth quarter 2022.
PBF's President and Chief Executive Officer Matthew Lucey said, "In 2023, we completed the
transformation of PBF Energy's balance sheet. Our financial
discipline has put PBF on the strongest financial footing in our
history as a public company. Our operations delivered our
second-best financial year." Mr. Lucey continued, "In addition to
enhancing equity value by further reducing debt by approximately
$700 million, we demonstrated our
commitment to shareholder returns by returning approximately
$640 million through dividends and
share buybacks in 2023. We are pleased to announce a $750 million increase to our buyback
authorization, resulting in more than $1
billion in current capacity. We remain focused on delivering
value to our shareholders."
Mr. Lucey concluded, "Looking ahead, we continue to invest in
and optimize our assets. We are committed to safe, responsible and
reliable operations, and we are focused on effectively capturing
markets to deliver strong financial results. Global refining
markets remain structurally tight, and new refinery additions will
be needed to offset growing global demand as well as shutdowns and
conversions of existing refineries. In this environment, PBF's
complex, predominantly coastal refining system, is well-positioned
to thrive."
Income from operations was $2,951.5
million for the year ended December 31, 2023 as
compared to income from operations of $4,153.2 million for the year ended
December 31, 2022. Excluding special items, income from
operations was $2,017.6 million for
the year ended December 31, 2023 as compared to income from
operations of $4,201.5 million for
the year ended December 31, 2022. Adjusted fully-converted net
income for the year ended December 31, 2023, excluding special
items, was $1,477.3 million, or
$11.32 per share on a
fully-exchanged, fully-diluted basis, as compared to an adjusted
fully-converted net income, excluding special items, of
$2,963.5 million, or $23.36 per share, for the year ended
December 31, 2022.
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 March 14, 2024, to
shareholders of record at the close of business on February 29, 2024.
Renewable Diesel
SBR averaged approximately 12,000 barrels per day of renewable
diesel production in the fourth quarter. Production in the fourth
quarter was impacted primarily by a renewable diesel unit catalyst
change performed during the quarter.
Strategic Update and Outlook
PBF's operational and financial performance in 2023 allowed the
company to cement the work to establish a firm foundation upon
which we can build a sustainable and diversified future. At
year-end, we had approximately $1.8
billion of cash. Our unsecured debt is now below
pre-pandemic levels and PBF was in a net cash position at year-end
2023. We paid over $105 million in
dividends in 2023 including the 25% dividend increase announced in
November 2023. We continued to
execute on our share repurchase program, finishing the year with
over $530 million in share
repurchases, including approximately $150
million repurchased during the fourth quarter. PBF's Board
of Directors authorized a $750
million increase to the existing share repurchase
authorization which allows for more than $1
billion of additional repurchases from today. We believe
these measures have generated significant value for our investors
in the near-term and, more importantly, demonstrate our commitment
to fiscal discipline, long-term value creation and shareholder
returns.
In 2024, PBF is committed to conducting 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. Our current
turnaround schedule for the first half of 2024 is as follows,
subject to change:
- East Coast - Delaware City FCC (Q1)
- Mid-Continent - Hydrocracker, Crude and UDEX (Q1)
- West Coast - Martinez Hydrocracker (Q2)
Timing and throughput ranges provided reflect current
expectations and are subject to change based on market conditions
and other factors. PBF's total refining system throughput for
full-year 2024 is expected to be approximately 895,000 to 955,000
barrels per day. First quarter throughput expectations are included
in the table below.
|
Expected throughput
ranges (barrels per day)
|
|
First Quarter
2024
|
|
Low
|
High
|
|
East
Coast
|
270,000
|
290,000
|
|
Mid-continent
|
100,000
|
110,000
|
|
Gulf
Coast
|
170,000
|
180,000
|
|
West
Coast
|
290,000
|
310,000
|
|
Total
|
830,000
|
890,000
|
|
Guidance provided constitutes forward-looking information and is
based on current PBF Energy operating plans, company assumptions
and company configuration. 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, February 15, 2024, 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 its strategic update and
outlook, including its planned maintenance schedule and throughput
ranges, and its 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 integrate and 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; geopolitical developments, including as a result of
Russia's military action in
Ukraine, the outbreak of armed
hostilities in the middle east and disruptions in international
shipping; 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.
|
PBF ENERGY INC. AND
SUBSIDIARIES
|
|
EARNINGS RELEASE
TABLES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(Unaudited, in
millions, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenues
|
|
$ 9,138.7
|
|
$
10,846.3
|
|
$
38,324.8
|
|
$
46,830.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost and
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of products and
other
|
|
8,247.7
|
|
9,045.1
|
|
32,671.3
|
|
39,049.1
|
|
Operating expenses
(excluding depreciation and amortization expense as reflected
below)
|
|
671.2
|
|
695.0
|
|
2,694.9
|
|
2,599.0
|
|
Depreciation and
amortization expense
|
|
135.8
|
|
137.1
|
|
560.0
|
|
503.6
|
|
Cost of
sales
|
|
9,054.7
|
|
9,877.2
|
|
35,926.2
|
|
42,151.7
|
|
General and
administrative expenses (excluding depreciation and amortization
expense as reflected below)
|
|
105.4
|
|
93.8
|
|
362.5
|
|
468.7
|
|
Depreciation and
amortization expense
|
|
3.5
|
|
1.7
|
|
11.5
|
|
7.5
|
|
Change in fair value of
contingent consideration, net
|
|
(78.2)
|
|
(82.6)
|
|
(45.8)
|
|
48.3
|
|
Equity loss in
investee
|
|
59.9
|
|
—
|
|
45.3
|
|
—
|
|
Loss (gain) on
formation of SBR equity method investment
|
|
40.6
|
|
—
|
|
(925.1)
|
|
—
|
|
Loss (gain) on sale of
assets
|
|
—
|
|
0.6
|
|
(1.3)
|
|
0.9
|
|
Total cost and
expenses
|
|
9,185.9
|
|
9,890.7
|
|
35,373.3
|
|
42,677.1
|
|
Income (loss) from
operations
|
|
(47.2)
|
|
955.6
|
|
2,951.5
|
|
4,153.2
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(8.6)
|
|
(29.4)
|
|
(63.8)
|
|
(246.0)
|
|
Change in Tax
Receivable Agreement liability
|
|
2.0
|
|
(2.1)
|
|
2.0
|
|
(290.3)
|
|
Change in fair value of
catalyst obligations
|
|
—
|
|
(1.7)
|
|
1.1
|
|
(2.0)
|
|
Loss on extinguishment
of debt
|
|
—
|
|
—
|
|
(5.7)
|
|
(66.1)
|
|
Other non-service
components of net periodic benefit cost
|
|
|
0.2
|
|
2.2
|
|
0.7
|
|
8.8
|
|
Income (loss) before
income taxes
|
|
(53.6)
|
|
924.6
|
|
2,885.8
|
|
3,557.6
|
|
Income tax (benefit)
expense
|
|
(5.2)
|
|
268.5
|
|
723.8
|
|
584.8
|
|
Net income
(loss)
|
|
(48.4)
|
|
656.1
|
|
2,162.0
|
|
2,972.8
|
|
Less: net income
attributable to noncontrolling interests
|
|
—
|
|
18.3
|
|
21.5
|
|
96.0
|
|
Net income (loss)
attributable to PBF Energy Inc. stockholders
|
|
$
(48.4)
|
|
$
637.8
|
|
$ 2,140.5
|
|
$ 2,876.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to Class A common stock per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.40)
|
|
$
5.04
|
|
$
17.13
|
|
$
23.47
|
|
|
Diluted
|
|
$
(0.40)
|
|
$
4.86
|
|
$
16.52
|
|
$
22.84
|
|
|
Weighted-average shares
outstanding-basic
|
|
120,999,329
|
|
126,450,787
|
|
124,953,858
|
|
122,598,076
|
|
|
Weighted-average shares
outstanding-diluted
|
|
121,866,353
|
|
132,099,338
|
|
130,509,448
|
|
126,860,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common
share
|
|
$
0.25
|
|
$
0.20
|
|
$
0.85
|
|
$
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income (loss) and adjusted fully-converted net
income (loss) per fully exchanged, fully diluted shares outstanding
(Note 1):
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income (loss)
|
|
$
(48.7)
|
|
$
642.6
|
|
$ 2,155.7
|
|
$ 2,897.5
|
|
|
Adjusted
fully-converted net income (loss) per fully exchanged, fully
diluted share
|
|
$
(0.40)
|
|
$
4.86
|
|
$
16.52
|
|
$
22.84
|
|
|
Adjusted
fully-converted shares outstanding - diluted (Note 6)
|
|
121,866,353
|
|
132,099,338
|
|
130,509,448
|
|
126,860,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
PBF ENERGY INC. AND
SUBSIDIARIES
|
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP (Note 7)
|
|
(Unaudited, in
millions, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
NET INCOME (LOSS) TO ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) AND
ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) EXCLUDING SPECIAL ITEMS
(Note 1)
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net income (loss)
attributable to PBF Energy Inc. stockholders
|
|
$
(48.4)
|
|
$
637.8
|
|
$
2,140.5
|
|
$
2,876.8
|
|
|
Less: Income allocated
to participating securities
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Income (loss)
available to PBF Energy Inc. stockholders - basic
|
|
(48.4)
|
|
637.8
|
|
2,140.5
|
|
2,876.8
|
|
|
Add: Net income (loss)
attributable to noncontrolling interest (Note 2)
|
|
(0.5)
|
|
6.5
|
|
20.5
|
|
27.9
|
|
|
Less: Income tax
benefit (expense) (Note 3)
|
|
0.2
|
|
(1.7)
|
|
(5.3)
|
|
(7.2)
|
|
Adjusted
fully-converted net income (loss)
|
|
$
(48.7)
|
|
$
642.6
|
|
$
2,155.7
|
|
$
2,897.5
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
|
Add: LCM inventory
adjustment - SBR
|
|
38.7
|
|
—
|
|
38.7
|
|
—
|
|
|
Add: Change in fair
value of contingent consideration, net
|
|
(78.2)
|
|
(82.6)
|
|
(45.8)
|
|
48.3
|
|
|
Add: Gain on land
sales
|
|
—
|
|
—
|
|
(1.7)
|
|
—
|
|
|
Add: Loss on
extinguishment of debt and termination of Inventory Intermediation
Agreement
|
|
—
|
|
—
|
|
19.2
|
|
66.1
|
|
|
Add: Change in Tax
Receivable Agreement liability
|
|
(2.0)
|
|
2.1
|
|
(2.0)
|
|
290.3
|
|
|
Add: Loss (gain) on
formation of SBR equity method investment
|
|
40.6
|
|
—
|
|
(925.1)
|
|
—
|
|
|
Add: Net tax benefit on
remeasurement of deferred tax assets
|
|
—
|
|
—
|
|
—
|
|
(233.8)
|
|
|
Less: Recomputed income
tax on special items (Note 3)
|
|
0.2
|
|
20.8
|
|
238.3
|
|
(104.9)
|
|
Adjusted
fully-converted net income (loss) excluding special
items
|
|
$
(49.4)
|
|
$
582.9
|
|
$
1,477.3
|
|
$
2,963.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding of PBF Energy Inc.
|
|
120,999,329
|
|
126,450,787
|
|
124,953,858
|
|
122,598,076
|
|
Conversion of PBF LLC
Series A Units (Note 5)
|
|
867,024
|
|
910,457
|
|
899,519
|
|
917,991
|
|
Common stock
equivalents (Note 6)
|
|
—
|
|
4,738,094
|
|
4,656,071
|
|
3,344,039
|
|
Fully-converted
shares outstanding - diluted
|
|
121,866,353
|
|
132,099,338
|
|
130,509,448
|
|
126,860,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income (loss) per fully exchanged, fully
diluted shares outstanding (Note 6)
|
|
$
(0.40)
|
|
$
4.86
|
|
$
16.52
|
|
$
22.84
|
|
|
Adjusted
fully-converted net income (loss) excluding special items per fully
exchanged, fully diluted shares outstanding (Note 4,
6)
|
|
$
(0.41)
|
|
$
4.41
|
|
$
11.32
|
|
$
23.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
RECONCILIATION OF
INCOME (LOSS) FROM OPERATIONS TO INCOME (LOSS) FROM OPERATIONS
EXCLUDING SPECIAL ITEMS
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Income (loss) from
operations
|
|
$
(47.2)
|
|
$
955.6
|
|
$
2,951.5
|
|
$
4,153.2
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
|
Add: LCM inventory
adjustment - SBR
|
|
38.7
|
|
—
|
|
38.7
|
|
—
|
|
|
Add: Change in fair
value of contingent consideration, net
|
|
(78.2)
|
|
(82.6)
|
|
(45.8)
|
|
48.3
|
|
|
Add: Gain on land
sales
|
|
—
|
|
—
|
|
(1.7)
|
|
—
|
|
|
Add: Loss (gain) on
formation of SBR equity method investment
|
|
40.6
|
|
—
|
|
(925.1)
|
|
—
|
|
Income (loss) from
operations excluding special items
|
|
$
(46.1)
|
|
$
873.0
|
|
$
2,017.6
|
|
$
4,201.5
|
|
|
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
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
RECONCILIATION OF
NET INCOME (LOSS) TO EBITDA AND EBITDA EXCLUDING SPECIAL
ITEMS
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net income
(loss)
|
|
$
(48.4)
|
|
$
656.1
|
|
$
2,162.0
|
|
$
2,972.8
|
|
Add: Depreciation and
amortization expense
|
|
139.3
|
|
138.8
|
|
571.5
|
|
511.1
|
|
Add: Interest expense,
net
|
|
8.6
|
|
29.4
|
|
63.8
|
|
246.0
|
|
Add: Income tax
(benefit) expense
|
|
(5.2)
|
|
268.5
|
|
723.8
|
|
584.8
|
|
EBITDA
|
|
|
$
94.3
|
|
$
1,092.8
|
|
$
3,521.1
|
|
$
4,314.7
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add: LCM inventory
adjustment - SBR
|
|
38.7
|
|
—
|
|
38.7
|
|
—
|
|
Add: Change in fair
value of contingent consideration, net
|
|
(78.2)
|
|
(82.6)
|
|
(45.8)
|
|
48.3
|
|
Add: Gain on land
sales
|
|
—
|
|
—
|
|
(1.7)
|
|
—
|
|
Add: Loss on
extinguishment of debt
|
|
—
|
|
—
|
|
5.7
|
|
66.1
|
|
Add: Change in Tax
Receivable Agreement liability
|
|
(2.0)
|
|
2.1
|
|
(2.0)
|
|
290.3
|
|
Add: Loss (gain) on
formation of SBR equity method investment
|
|
40.6
|
|
—
|
|
(925.1)
|
|
—
|
|
EBITDA excluding
special items
|
|
$
93.4
|
|
$
1,012.3
|
|
$
2,590.9
|
|
$
4,719.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
RECONCILIATION OF
EBITDA TO ADJUSTED EBITDA
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
EBITDA
|
|
$
94.3
|
|
$
1,092.8
|
|
$
3,521.1
|
|
$
4,314.7
|
|
Add: Stock-based
compensation
|
|
23.8
|
|
29.4
|
|
51.5
|
|
54.3
|
|
Add: Change in fair
value of catalyst obligations
|
|
—
|
|
1.7
|
|
(1.1)
|
|
2.0
|
|
Add: LCM inventory
adjustment - SBR (Note 4)
|
|
38.7
|
|
—
|
|
38.7
|
|
—
|
|
Add: Change in fair
value of contingent consideration, net (Note 4)
|
|
(78.2)
|
|
(82.6)
|
|
(45.8)
|
|
48.3
|
|
Add: Gain on land sales
(Note 4)
|
|
—
|
|
—
|
|
(1.7)
|
|
—
|
|
Add: Loss on
extinguishment of debt (Note 4)
|
|
—
|
|
—
|
|
5.7
|
|
66.1
|
|
Add: Change in Tax
Receivable Agreement liability (Note 4)
|
|
(2.0)
|
|
2.1
|
|
(2.0)
|
|
290.3
|
|
Add: Loss (gain) on
formation of SBR equity method investment (Note 4)
|
|
40.6
|
|
—
|
|
(925.1)
|
|
—
|
|
Adjusted
EBITDA
|
|
|
$
117.2
|
|
$
1,043.4
|
|
$
2,641.3
|
|
$
4,775.7
|
|
|
See Footnotes to
Earnings Release Tables
|
|
PBF ENERGY INC. AND
SUBSIDIARIES
|
|
EARNINGS RELEASE
TABLES
|
|
CONSOLIDATED BALANCE
SHEET DATA
|
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2023
|
|
2022
|
|
Balance Sheet
Data:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
1,783.5
|
|
$
2,203.6
|
|
Inventories
|
3,183.1
|
|
2,763.6
|
|
Total assets
|
14,387.8
|
|
13,549.1
|
|
Total debt
|
1,245.9
|
|
1,959.1
|
|
Total equity
|
6,631.3
|
|
5,056.0
|
|
Total equity excluding
special items (Note 4, 13)
|
$
5,557.4
|
|
$
4,660.5
|
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio (Note 13)
|
16 %
|
|
28 %
|
|
Total debt to
capitalization ratio, excluding special items (Note 13)
|
18 %
|
|
30 %
|
|
Net debt to
capitalization ratio* (Note 13)
|
(9) %
|
|
(5) %
|
|
Net debt to
capitalization ratio, excluding special items* (Note 13)
|
(11) %
|
|
(6) %
|
|
* Negative ratio exists
at December 31, 2023 and December 31, 2022 as cash is in excess of
debt.
|
|
|
|
|
|
|
|
|
|
SUMMARIZED STATEMENT
OF CASH FLOW DATA
|
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31,
|
|
|
|
|
|
2023
|
|
2022
|
|
Cash flows provided by
operations
|
$
1,338.5
|
|
$
4,772.0
|
|
Cash flows used in
investing activities
|
(338.6)
|
|
(1,010.9)
|
|
Cash flows used in
financing activities
|
(1,420.0)
|
|
(2,899.0)
|
|
Net change in cash and
cash equivalents
|
(420.1)
|
|
862.1
|
|
Cash and cash
equivalents, beginning of period
|
2,203.6
|
|
1,341.5
|
|
Cash and cash
equivalents, end of period
|
$
1,783.5
|
|
$
2,203.6
|
|
|
|
|
|
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
December 31, 2023
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$
9,129.3
|
|
$
96.8
|
|
$
—
|
|
$
(87.4)
|
|
$
9,138.7
|
|
Depreciation and
amortization expense
|
126.8
|
|
9.0
|
|
3.5
|
|
—
|
|
139.3
|
|
Income (loss) from
operations (1)
|
26.6
|
|
54.9
|
|
(128.7)
|
|
—
|
|
(47.2)
|
|
Interest expense,
net
|
(3.9)
|
|
(0.6)
|
|
13.1
|
|
—
|
|
8.6
|
|
Capital expenditures
(2)
|
227.9
|
|
3.4
|
|
2.0
|
|
—
|
|
233.3
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2022
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$ 10,836.1
|
|
$
96.9
|
|
$
—
|
|
$
(86.7)
|
|
$ 10,846.3
|
|
Depreciation and
amortization expense
|
128.0
|
|
9.1
|
|
1.7
|
|
—
|
|
138.8
|
|
Income (loss) from
operations
|
914.0
|
|
43.3
|
|
(1.7)
|
|
—
|
|
955.6
|
|
Interest expense,
net
|
(0.9)
|
|
9.5
|
|
20.8
|
|
—
|
|
29.4
|
|
Capital
expenditures
|
322.0
|
|
3.3
|
|
1.9
|
|
—
|
|
327.2
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2023
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$ 38,288.5
|
|
$
384.1
|
|
$
—
|
|
$
(347.8)
|
|
$ 38,324.8
|
|
Depreciation and
amortization expense
|
523.9
|
|
36.1
|
|
11.5
|
|
—
|
|
571.5
|
|
Income (loss) from
operations (1)
|
2,183.6
|
|
206.1
|
|
561.8
|
|
—
|
|
2,951.5
|
|
Interest expense,
net
|
(4.8)
|
|
2.3
|
|
66.3
|
|
—
|
|
63.8
|
|
Capital expenditures
(2)
|
1,152.9
|
|
11.9
|
|
8.8
|
|
—
|
|
1,173.6
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2022
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Revenues
|
$ 46,780.6
|
|
$
369.3
|
|
$
—
|
|
$
(319.6)
|
|
$ 46,830.3
|
|
Depreciation and
amortization expense
|
466.9
|
|
36.7
|
|
7.5
|
|
—
|
|
511.1
|
|
Income (loss) from
operations
|
4,466.4
|
|
183.7
|
|
(496.9)
|
|
—
|
|
4,153.2
|
|
Interest expense,
net
|
10.9
|
|
39.5
|
|
195.6
|
|
—
|
|
246.0
|
|
Capital
expenditures
|
994.9
|
|
7.9
|
|
8.1
|
|
—
|
|
1,010.9
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December
31, 2023
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
|
Total Assets
(3)
|
$ 12,590.6
|
|
$
816.8
|
|
$
1,024.1
|
|
$
(43.7)
|
|
$ 14,387.8
|
|
|
|
|
|
|
|
|
|
|
|
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 months and year ended
December 31, 2023 includes a loss of $40.6 million and a
gain of $925.1 million, respectively, associated with the
formation of the SBR equity method investment.
|
|
(2) For the three
months ended and year ended December 31, 2023, the Company's
refining segment includes $12.4 million and $312.7 million,
respectively, of capital expenditures related to the construction
of the biorefinery co-located with the Chalmette refinery in
Louisiana (the "Renewable Diesel Facility"). For the three months
and year ended December 31, 2022, the Company's refining segment
included $141.2 million and $336.2 million, respectively, of
capital expenditures related to the construction of the Renewable
Diesel Facility.
|
|
(3) Corporate assets
include our Equity method investment in SBR of
$881.0 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
|
|
Year
Ended
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
Market Indicators
(dollars per barrel) (Note 9)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Dated Brent crude
oil
|
$ 84.24
|
|
$ 88.93
|
|
$ 82.64
|
|
$
101.27
|
|
West Texas Intermediate
(WTI) crude oil
|
$ 78.60
|
|
$ 82.82
|
|
$ 77.67
|
|
$ 94.58
|
|
Light Louisiana Sweet
(LLS) crude oil
|
$ 81.13
|
|
$ 85.47
|
|
$ 80.14
|
|
$ 96.81
|
|
Alaska North Slope
(ANS) crude oil
|
$ 84.23
|
|
$ 87.89
|
|
$ 82.36
|
|
$ 98.76
|
|
Crack
Spreads:
|
|
|
|
|
|
|
|
|
Dated Brent (NYH)
2-1-1
|
$ 22.98
|
|
$ 46.68
|
|
$ 29.67
|
|
$ 40.26
|
|
WTI (Chicago)
4-3-1
|
$ 11.83
|
|
$ 28.32
|
|
$ 23.71
|
|
$ 31.56
|
|
LLS (Gulf Coast)
2-1-1
|
$ 19.82
|
|
$ 36.90
|
|
$ 29.13
|
|
$ 37.56
|
|
ANS (West Coast-LA)
4-3-1
|
$ 25.13
|
|
$ 33.11
|
|
$ 36.88
|
|
$ 41.64
|
|
ANS (West Coast-SF)
3-2-1
|
$ 25.96
|
|
$ 33.85
|
|
$ 36.89
|
|
$ 41.89
|
|
Crude Oil
Differentials:
|
|
|
|
|
|
|
|
|
Dated Brent (foreign)
less WTI
|
$ 5.64
|
|
$
6.11
|
|
$
4.97
|
|
$
6.68
|
|
Dated Brent less Maya
(heavy, sour)
|
$ 12.11
|
|
$ 17.42
|
|
$ 13.71
|
|
$ 13.95
|
|
Dated Brent less WTS
(sour)
|
$ 5.79
|
|
$
7.26
|
|
$
4.99
|
|
$
6.98
|
|
Dated Brent less ASCI
(sour)
|
$ 6.11
|
|
$ 10.06
|
|
$
5.73
|
|
$
9.68
|
|
WTI less WCS (heavy,
sour)
|
$ 23.54
|
|
$ 29.30
|
|
$ 18.32
|
|
$ 21.30
|
|
WTI less Bakken (light,
sweet)
|
$ 1.48
|
|
$
(3.94)
|
|
$
(1.28)
|
|
$
(4.05)
|
|
WTI less Syncrude
(light, sweet)
|
$ 4.78
|
|
$
(1.38)
|
|
$
(0.91)
|
|
$
(3.04)
|
|
WTI less LLS (light,
sweet)
|
$
(2.53)
|
|
$
(2.65)
|
|
$
(2.48)
|
|
$
(2.22)
|
|
WTI less ANS (light,
sweet)
|
$
(5.63)
|
|
$
(5.07)
|
|
$
(4.70)
|
|
$
(4.17)
|
|
Effective RIN basket
price
|
$ 4.78
|
|
$
8.54
|
|
$
7.02
|
|
$
7.66
|
|
Natural gas (dollars
per MMBTU)
|
$ 2.92
|
|
$
6.09
|
|
$
2.66
|
|
$
6.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Operating
Information
|
|
|
|
|
|
|
|
|
Production (barrels per
day ("bpd") in thousands)
|
884.9
|
|
947.5
|
|
918.3
|
|
937.1
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
878.2
|
|
939.0
|
|
909.4
|
|
925.1
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
80.8
|
|
86.4
|
|
329.0
|
|
337.7
|
|
Consolidated gross
margin per barrel of throughput
|
$ 1.04
|
|
$ 11.22
|
|
$
7.29
|
|
$ 13.85
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 9.88
|
|
$ 19.78
|
|
$ 16.07
|
|
$ 22.00
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 7.98
|
|
$
7.71
|
|
$
7.85
|
|
$
7.39
|
|
Crude and feedstocks (%
of total throughput) (Note 12)
|
|
|
|
|
|
|
|
|
Heavy
|
25 %
|
|
30 %
|
|
27 %
|
|
32 %
|
|
Medium
|
39 %
|
|
38 %
|
|
35 %
|
|
36 %
|
|
Light
|
18 %
|
|
18 %
|
|
20 %
|
|
18 %
|
|
Other feedstocks and
blends
|
18 %
|
|
14 %
|
|
18 %
|
|
14 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total
throughput)
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
46 %
|
|
47 %
|
|
47 %
|
|
47 %
|
|
Distillate and
distillate blendstocks
|
34 %
|
|
35 %
|
|
34 %
|
|
35 %
|
|
Lubes
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
Chemicals
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
Other
|
19 %
|
|
17 %
|
|
18 %
|
|
17 %
|
|
|
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
|
|
Year
Ended
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Supplemental
Operating Information - East Coast Refining System (Delaware City
and Paulsboro)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
325.7
|
|
323.6
|
|
324.0
|
|
298.7
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
329.2
|
|
326.1
|
|
327.6
|
|
300.3
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
30.3
|
|
30.0
|
|
116.7
|
|
109.6
|
|
Gross margin per barrel
of throughput
|
$ 4.63
|
|
$
17.58
|
|
$ 6.73
|
|
$
14.69
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$
11.29
|
|
$
25.02
|
|
$
13.82
|
|
$
22.20
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 5.35
|
|
$ 6.21
|
|
$ 5.69
|
|
$ 6.19
|
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
22 %
|
|
16 %
|
|
16 %
|
|
22 %
|
|
Medium
|
42 %
|
|
57 %
|
|
42 %
|
|
50 %
|
|
Light
|
12 %
|
|
8 %
|
|
17 %
|
|
8 %
|
|
Other feedstocks and
blends
|
24 %
|
|
19 %
|
|
25 %
|
|
20 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
40 %
|
|
39 %
|
|
39 %
|
|
39 %
|
|
Distillates and
distillate blendstocks
|
35 %
|
|
36 %
|
|
35 %
|
|
37 %
|
|
Lubes
|
2 %
|
|
2 %
|
|
2 %
|
|
2 %
|
|
Chemicals
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
Other
|
21 %
|
|
21 %
|
|
22 %
|
|
20 %
|
|
|
Total yield
|
99 %
|
|
99 %
|
|
99 %
|
|
99 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - Mid-Continent (Toledo)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
143.0
|
|
137.9
|
|
138.6
|
|
151.0
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
140.4
|
|
136.0
|
|
136.4
|
|
148.5
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
13.0
|
|
12.5
|
|
49.8
|
|
54.2
|
|
Gross margin per barrel
of throughput
|
$
(1.08)
|
|
$
10.82
|
|
$ 3.82
|
|
$
12.93
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 6.94
|
|
$
19.53
|
|
$
12.47
|
|
$
20.93
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 6.48
|
|
$ 6.97
|
|
$ 7.01
|
|
$ 6.40
|
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Medium
|
42 %
|
|
38 %
|
|
39 %
|
|
36 %
|
|
Light
|
54 %
|
|
58 %
|
|
59 %
|
|
61 %
|
|
Other feedstocks and
blends
|
4 %
|
|
4 %
|
|
2 %
|
|
3 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
52 %
|
|
50 %
|
|
50 %
|
|
51 %
|
|
Distillate and
distillate blendstocks
|
40 %
|
|
36 %
|
|
37 %
|
|
36 %
|
|
Chemicals
|
4 %
|
|
3 %
|
|
4 %
|
|
5 %
|
|
Other
|
6 %
|
|
12 %
|
|
11 %
|
|
10 %
|
|
|
Total yield
|
102 %
|
|
101 %
|
|
102 %
|
|
102 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
PBF ENERGY INC. AND
SUBSIDIARIES
|
|
EARNINGS RELEASE
TABLES
|
|
SUPPLEMENTAL
OPERATING INFORMATION
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Supplemental
Operating Information - Gulf Coast (Chalmette)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
175.8
|
|
168.5
|
|
175.9
|
|
183.2
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
174.0
|
|
167.6
|
|
174.2
|
|
180.7
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
15.9
|
|
15.4
|
|
63.5
|
|
65.9
|
|
Gross margin per barrel
of throughput
|
$
4.72
|
|
$
7.17
|
|
$
8.95
|
|
$ 11.39
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$ 10.89
|
|
$ 14.22
|
|
$ 15.36
|
|
$ 18.16
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
5.31
|
|
$
5.78
|
|
$
5.52
|
|
$
5.71
|
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
9 %
|
|
14 %
|
|
15 %
|
|
14 %
|
|
Medium
|
46 %
|
|
31 %
|
|
39 %
|
|
40 %
|
|
Light
|
21 %
|
|
35 %
|
|
26 %
|
|
29 %
|
|
Other feedstocks and
blends
|
24 %
|
|
20 %
|
|
20 %
|
|
17 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
50 %
|
|
47 %
|
|
47 %
|
|
44 %
|
|
Distillate and
distillate blendstocks
|
32 %
|
|
34 %
|
|
34 %
|
|
36 %
|
|
Chemicals
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
|
Other
|
18 %
|
|
19 %
|
|
19 %
|
|
20 %
|
|
|
Total yield
|
101 %
|
|
101 %
|
|
101 %
|
|
101 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - West Coast (Torrance and
Martinez)
|
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
240.4
|
|
317.5
|
|
279.8
|
|
304.2
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
234.6
|
|
309.3
|
|
271.2
|
|
295.6
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
21.6
|
|
28.5
|
|
99.0
|
|
108.0
|
|
Gross margin per barrel
of throughput
|
$
(8.12)
|
|
$
4.96
|
|
$
6.45
|
|
$ 13.02
|
|
Gross refining margin,
excluding special items, per barrel of throughput (Note 4, Note
10)
|
$
8.93
|
|
$ 17.38
|
|
$ 20.99
|
|
$ 24.67
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$ 14.56
|
|
$ 10.67
|
|
$ 12.30
|
|
$ 10.14
|
|
Crude and feedstocks (%
of total throughput) (Note 12):
|
|
|
|
|
|
|
|
|
Heavy
|
55 %
|
|
67 %
|
|
60 %
|
|
68 %
|
|
Medium
|
29 %
|
|
21 %
|
|
22 %
|
|
19 %
|
|
Light
|
1 %
|
|
— %
|
|
1 %
|
|
— %
|
|
Other feedstocks and
blends
|
15 %
|
|
12 %
|
|
17 %
|
|
13 %
|
|
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
47 %
|
|
54 %
|
|
56 %
|
|
56 %
|
|
Distillate and
distillate blendstocks
|
31 %
|
|
35 %
|
|
30 %
|
|
32 %
|
|
Other
|
24 %
|
|
14 %
|
|
17 %
|
|
15 %
|
|
|
Total yield
|
102 %
|
|
103 %
|
|
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
|
|
|
|
|
|
|
|
December 31,
2023
|
|
December 31,
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
|
$
9,138.7
|
|
$
113.14
|
|
$ 10,846.3
|
|
$
125.55
|
|
Less: Cost of
sales
|
9,054.7
|
|
112.10
|
|
9,877.2
|
|
114.33
|
|
Consolidated gross
margin
|
$
84.0
|
|
$
1.04
|
|
$
969.1
|
|
$
11.22
|
|
Reconciliation of
consolidated gross margin to gross refining margin:
|
|
|
|
|
|
|
|
|
Consolidated gross
margin
|
$
84.0
|
|
$
1.04
|
|
$
969.1
|
|
$
11.22
|
|
Add: PBFX operating
expense
|
30.5
|
|
0.38
|
|
33.5
|
|
0.38
|
|
Add: PBFX depreciation
expense
|
9.0
|
|
0.11
|
|
9.1
|
|
0.11
|
|
Less: Revenues of
PBFX
|
(96.8)
|
|
(1.20)
|
|
(96.9)
|
|
(1.12)
|
|
Add: Refinery operating
expense
|
645.1
|
|
7.98
|
|
666.1
|
|
7.71
|
|
Add: Refinery
depreciation expense
|
126.8
|
|
1.57
|
|
128.0
|
|
1.48
|
|
Gross refining
margin
|
$
798.6
|
|
$
9.88
|
|
$
1,708.9
|
|
$
19.78
|
|
Gross refining
margin excluding special items
|
$
798.6
|
|
$
9.88
|
|
$
1,708.9
|
|
$
19.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
|
|
|
|
|
|
December 31,
2023
|
|
December 31,
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
|
$ 38,324.8
|
|
$
116.48
|
|
$ 46,830.3
|
|
$
138.69
|
|
Less: Cost of
sales
|
35,926.2
|
|
109.19
|
|
42,151.7
|
|
124.84
|
|
Consolidated gross
margin
|
$
2,398.6
|
|
$
7.29
|
|
$
4,678.6
|
|
$
13.85
|
|
Reconciliation of
consolidated gross margin to gross refining margin:
|
|
|
|
|
|
|
|
|
Consolidated gross
margin
|
$
2,398.6
|
|
$
7.29
|
|
$
4,678.6
|
|
$
13.85
|
|
Add: PBFX operating
expense
|
131.9
|
|
0.40
|
|
121.4
|
|
0.36
|
|
Add: PBFX depreciation
expense
|
36.1
|
|
0.11
|
|
36.7
|
|
0.11
|
|
Less: Revenues of
PBFX
|
(384.1)
|
|
(1.17)
|
|
(369.3)
|
|
(1.09)
|
|
Add: Refinery operating
expense
|
2,581.3
|
|
7.85
|
|
2,495.6
|
|
7.39
|
|
Add: Refinery
depreciation expense
|
523.9
|
|
1.59
|
|
466.9
|
|
1.38
|
|
Gross refining
margin
|
$
5,287.7
|
|
$
16.07
|
|
$
7,429.9
|
|
$
22.00
|
|
Gross refining
margin excluding special items
|
$
5,287.7
|
|
$
16.07
|
|
$
7,429.9
|
|
$
22.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
PBF ENERGY INC. AND
SUBSIDIARIES
|
|
EARNINGS RELEASE
TABLES
|
|
FOOTNOTES TO
EARNINGS RELEASE TABLES
|
|
|
(1) Adjusted
fully-converted information is presented in this table as
management believes that these Non-GAAP measures, when presented in
conjunction with comparable GAAP measures, are useful to investors
to compare our results across the periods presented and facilitates
an understanding of our operating results. We also use these
measures to evaluate our operating performance. These measures
should not be considered a substitute for, or superior to, measures
of financial performance prepared in accordance with GAAP. The
differences between adjusted fully-converted and GAAP results are
explained in footnotes 2 through 6.
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(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.
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(3) Represents an
adjustment to reflect PBF Energy's 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 interest for all periods presented. The adjustment
assumes the full exchange of existing PBF LLC Series A Units as
described in footnote 2.
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(4) The Non-GAAP
measures presented include adjusted fully-converted net income
(loss) excluding special items, income (loss) from operations
excluding special items, EBITDA excluding special items and gross
refining margin excluding special items. Special items for the
periods presented relate to our share of the SBR LCM inventory
reserve, 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 sale, changes
in our gain on the formation of the SBR equity method investment,
and a net tax benefit on remeasurement of deferred tax assets, 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.
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Special
Items:
Lower of cost or market
("LCM") Adjustment is a GAAP requirement related to inventory
valuation that mandates inventory to be stated at the lower of cost
or market.
SBR LCM inventory
adjustment - For 2023, an LCM write down of $77.4 million is
included in SBR's results of operations. Our Equity loss in
investee includes our 50% share of this adjustment. This LCM
write-down decreased PBF Energy's income from operations and net
income by $38.7 million and $28.6 million, respectively.
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Change in fair value
of contingent consideration, net - During the three months and
year ended December 31, 2023, we recorded net changes in fair
value of contingent consideration related to the earn-out liability
associated with the acquisition of the Martinez refinery (the
"Martinez Contingent Consideration"). These changes in estimate
increased income from operations by $78.2 million and $45.8 million
($57.9 million and $33.9 million, net of tax) for the three months
and year ended December 31, 2023, respectively. During the three
months and year ended December 31, 2022, we recorded net
changes in fair value of the Martinez Contingent Consideration,
offset by the recognition of contingent assets associated with this
acquisition. These changes in estimate increased income from
operations by $82.6 million ($61.2 million, net of tax) for the
three months ended December 31, 2022 and decreased income from
operations by $48.3 million ($35.8 million, net of tax) for the
year ended December 31, 2022.
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Loss on
extinguishment of debt and termination of Inventory Intermediation
Agreement - During the year ended December 31, 2023, we
recorded a pre-tax loss on extinguishment of debt related to the
redemption of our 7.25% senior unsecured notes due 2025 (the "2025
Senior Notes") 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
year ended December 31, 2022, we recorded a net pre-tax loss
on the extinguishment of debt related to the redemption of our
9.25% senior secured notes due 2025 (the "2025 Senior Secured
Notes"), partially offset by the gain recognized on the repurchase
of a portion of each of the 6.00% senior unsecured notes due 2028
(the "2028 Senior Notes") and the 2025 Senior Notes. These
nonrecurring charges decreased income before income taxes and net
income by $66.1 million and $49.0 million,
respectively.
During the year ended
December 31, 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
Consolidated Statement of Operations.
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Gain on land
sales - During the year ended December 31, 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 were
no such gains in all other periods presented.
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Loss (gain) on
formation of SBR equity method investment - During the three
months ended December 31, 2023, we recorded a decrease to the
gain associated with the formation of the SBR equity method
investment, which decreased income from operations and net income
by $40.6 million and $30.0 million, respectively. During the year
ended December 31, 2023, we recorded a net gain resulting from
the difference between the carrying value and the fair value of the
assets associated with the business contributed to SBR, which
increased income from operations and net income by $925.1 million
and $684.6 million, respectively. There was no such gains in any
other periods presented.
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Change in Tax
Receivable Agreement liability - During the three months and
year ended December 31, 2023, we recorded a change in the Tax
Receivable Agreement liability that increased income before income
taxes and net income by $2.0 million and $1.5 million,
respectively. During the three months and year ended
December 31, 2022, we recorded a change in the Tax Receivable
Agreement liability that decreased income before income taxes by
$2.1 million and $290.3 million ($1.6 million and $215.1 million,
net of tax), 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, inclusive of 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 December 31,
2023. During the year ended December 31, 2022, we recorded a
decrease to our deferred tax valuation allowance of
$308.5 million (reducing our deferred tax valuation allowance
to zero), of which $233.8 million 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. The deferred tax valuation allowance is recorded in
accordance with ASC 740, Income Taxes. There were no such benefits
or expenses in all other periods presented.
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Recomputed Income
Tax on Special Items - The income tax impact on special items,
other than the net tax benefit special item discussed above, was
calculated using the tax rates shown in footnote 3
above.
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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 above.
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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 months and years ended
December 31, 2023 and 2022, respectively. Common stock
equivalents exclude the effects of performance share Units and
options and warrants to purchase 5,526,057 and 18,431 shares of PBF
Energy Class A common stock and PBF LLC Series A Units because
they are anti-dilutive for the three months and year ended
December 31, 2023, respectively. Common stock equivalents
exclude the effects of performance share Units and options and
warrants to purchase 22,000 and 3,877,035 shares of PBF Energy
Class A common stock and PBF LLC Series A Units because they
are anti-dilutive for the three months and year ended
December 31, 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) Earnings before
Interest, Income Taxes, Depreciation and Amortization ("EBITDA")
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 our control such as changes in tax
rates, net change in the fair value of contingent consideration,
gain on land sale, loss on extinguishment of debt, changes in the
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 December 31, 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) 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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December
31,
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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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$
1,245.9
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$
1,959.1
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Total equity
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6,631.3
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5,056.0
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Total
capitalization
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$
7,877.2
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$
7,015.1
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Total debt
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$
1,245.9
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$
1,959.1
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Total equity excluding
special items
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5,557.4
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4,660.5
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Total capitalization
excluding special items
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$
6,803.3
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$
6,619.6
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Total equity
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$
6,631.3
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$
5,056.0
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Special Items
(Note 4)
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Add: LCM inventory
adjustment - SBR
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38.7
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Add: Net changes in
fair value of contingent consideration
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(58.8)
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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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(925.1)
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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: Change in Tax
Receivable Agreement liability
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(327.3)
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(325.3)
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Add: Cumulative
historical equity adjustments (a)
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(130.2)
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(130.2)
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Less: Recomputed
income tax on special items
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365.2
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126.9
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Net impact of
special items to equity
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(1,073.9)
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(395.5)
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Total equity excluding
special items
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$
5,557.4
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$
4,660.5
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Total debt
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$
1,245.9
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$
1,959.1
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Less: Cash and cash equivalents
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1,783.5
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2,203.6
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Net debt
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$
(537.6)
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$
(244.5)
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Total debt to
capitalization ratio
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16 %
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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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(9) %
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(5) %
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Net debt to
capitalization ratio, excluding special items*
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(11) %
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(6) %
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* Negative ratio exists
at December 31, 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.