PARSIPPANY, N.J., July 31,
2020 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) today reported
second quarter 2020 income from operations of $620.8 million as compared to income from
operations of $9.5 million for the
second quarter of 2019. Excluding special items, second quarter
2020 loss from operations was $433.7
million as compared to income from operations of
$191.5 million for the second quarter
of 2019. PBF Energy's financial results reflect the consolidation
of PBF Logistics LP (NYSE: PBFX), a master limited partnership of
which PBF indirectly owns the general partner and approximately 48%
of the limited partner interests as of quarter-end.
The company reported second quarter 2020 net income of
$413.0 million and net income
attributable to PBF Energy Inc. of $389.1
million or $3.23 per share.
This compares to net loss of $21.6
million, and net loss attributable to PBF Energy Inc. of
$32.2 million or $(0.27) per share for the second quarter 2019.
Special items included in the second quarter 2020 results, which
increased net income by a net, after-tax benefit of $777.2 million, or $6.42 per share, consisted of a
lower-of-cost-or-market ("LCM") inventory adjustment, change in the
fair value of the earn-out provisions, primarily in connection with
the Martinez acquisition (the "Contingent Consideration"), and gain
on sale of hydrogen plants, slightly offset by severance costs
related to a reduction in the workforce. Adjusted fully-converted
net loss for the second quarter 2020, excluding special items, was
$384.8 million, or $(3.19) per share on a fully-exchanged,
fully-diluted basis, as described below, compared to adjusted
fully-converted net income of $101.1
million or $0.83 per share,
for the second quarter 2019.
Tom Nimbley, PBF Energy's
Chairman and CEO, said, "Our second quarter financial performance
reflects the staggering impact the pandemic had on our business and
the underlying impact to demand for our essential products. Through
these trying times our people have responded with vigor to protect
each other and our customers, and remained focused on the
reliability of our ongoing operations. We made significant
adjustments to our operations and took several actions to reduce
our overall cash burn rate. In the current environment, liquidity
and protecting the balance sheet are our primary objectives. With
our strong cash balance and increased availability on our existing
credit facilities, we are confident that we have the financial
flexibility to navigate the current market." Mr. Nimbley continued,
"We appear to have passed the low point of demand, particularly for
gasoline and diesel, and have seen demand rebound broadly to
approximately 80% of pre-COVID levels with the exception of jet
fuel which will likely take much longer to recover." Mr. Nimbley
concluded, "Across the country and globe, regions are responding
differently to the challenges presented by the pandemic and we will
likely experience demand recovery at an uneven pace as the pandemic
runs its course. We remain at a fragile intersection on the
recovery path and we will continue to run our operations in a safe,
reliable and environmentally responsible manner and be responsive
to market conditions."
Liquidity and Financial Position
In response to the
pandemic, we have taken several steps to protect our balance sheet
and increase the financial liquidity of the company. As of
July 2020, our liquidity was
approximately $1.9 billion based on
our estimated $1.2 billion of cash,
excluding cash held at PBF Logistics LP, and more than $700 million of availability under our
asset-backed revolving credit facility.
On May 7, 2020, PBF announced that
its indirect subsidiary, PBF Holding Company LLC successfully
priced $1.0 billion of 9.25% senior
secured notes due 2025 in a private offering. The offering closed
on May 13, 2020.
Strategic Update and Outlook
Employee and operational
safety continue to be an ongoing priority in our pandemic response.
We have implemented a number of safety protocols, social distancing
requirements, issued personal protective equipment to all employees
and enhanced facility cleanings all focused on protecting our
dedicated front line employees who have remained on the job
throughout the current crisis and returning employees as they come
back to the office. As a result of our efforts, operations at all
of our facilities have remained unaffected by worker unavailability
and we have continued uninterrupted supply of our critical products
to our customers.
We are actively responding to the impacts of the pandemic and
ongoing rebalancing in the global oil markets. In late March and
through the second quarter of 2020, we reduced the amount of crude
oil processed at our refineries in response to the decreased demand
for our products and temporarily idled units at certain of our
refineries to optimize our production in light of prevailing market
conditions. We made progress on our initial expense reduction
measures announced in March 2020. Our
goal remains to achieve an operating expense reduction of
approximately $250 million in 2020 as
compared to our originally budgeted expectations. A certain portion
of the reductions are related to running at lower rates during the
second quarter of 2020 but the majority are purposeful operating
expense reductions that we expect to translate into durable,
long-term savings.
Our refining capital spending program is on track to meet our
revised guidance of approximately $360
million for 2020, with the bulk of the spending having
occurred in the first and second quarters. For the remainder of
2020, we expect to incur approximately $90 to $100 million
in refining capital expenditures.
We operated our refineries at reduced rates during the second
quarter and, based on current market conditions, we plan on
continuing to operate our refineries at lower utilization until
such time that sustained product demand justifies higher
production. We expect near-term throughput to be in the 700,000 to
800,000 barrel per day range for our refining system.
Sale of Hydrogen Plants
On April 17, 2020, we closed on the sale of five
hydrogen plants to Air Products and Chemicals, Inc. for gross cash
proceeds of $530.0 million. We
entered into off-take arrangements for hydrogen on terms in line
with similar arrangements in place throughout our refining
system.
Adjusted Fully-Converted Results
Adjusted
fully-converted results assume the exchange of all PBF Energy
Company LLC Series A Units and dilutive securities into shares of
PBF Energy Inc. Class A common stock on a one-for-one basis,
resulting in the elimination of the noncontrolling interest and a
corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the
discussion during the management conference call, may include
references to Non-GAAP (Generally Accepted Accounting Principles)
measures including Adjusted Fully-Converted Net Income, Adjusted
Fully-Converted Net Income excluding special items, Adjusted
Fully-Converted Net Income per fully-exchanged, fully-diluted
share, Income from operations excluding special items, gross
refining margin, gross refining margin excluding special items,
gross refining margin per barrel of throughput, EBITDA (Earnings
before Interest, Income Taxes, Depreciation and Amortization),
EBITDA excluding special items and Adjusted EBITDA. PBF believes
that Non-GAAP financial measures provide useful information about
its operating performance and financial results. However, these
measures have important limitations as analytical tools and should
not be viewed in isolation or considered as alternatives for, or
superior to, comparable GAAP financial measures. PBF's Non-GAAP
financial measures may also differ from similarly named measures
used by other companies. See the accompanying tables and footnotes
in this release for additional information on the Non-GAAP measures
used in this release and reconciliations to the most directly
comparable GAAP measures.
Conference Call Information
PBF Energy's senior
management will host a conference call and webcast regarding
quarterly results and other business matters on Friday,
July 31, 2020, at 8:30 a.m. ET.
The call is being webcast and can be accessed at PBF Energy's
website, http://www.pbfenergy.com. The call can also be
accessed by dialing (877) 876-9173 or (785) 424-1667, conference
ID: PBFQ220. The audio replay will be available two hours after the
end of the call through August 14,
2020, by dialing (800) 839-0866 or (402) 220-0662.
Forward-Looking Statements
Statements in this press
release relating to future plans, results, performance,
expectations, achievements and the like are considered
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors, many of which may be beyond the company's control, that
may cause actual results to differ materially from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Factors and uncertainties that may
cause actual results to differ include but are not limited to the
risks disclosed in the company's filings with the SEC, as well as
the risks disclosed in PBF Logistics LP's SEC filings and any
impact PBF Logistics LP may have on the company's credit rating,
cost of funds, employees, customer and vendors; risk relating to
the securities markets generally; risks associated with the recent
acquisition of the Martinez refinery, and related logistics assets;
the duration and severity of the COVID-19 pandemic and certain
developments in the global oil markets and their impact on the
global macroeconomic conditions; and the impact of adverse market
conditions affecting the company, unanticipated developments,
regulatory approvals, changes in laws and other events that
negatively impact the company. All forward-looking statements speak
only as of the date hereof. The company undertakes no obligation to
revise or update any forward-looking statements except as may be
required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is
one of the largest independent refiners in North America, operating, through its
subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New
Jersey and Ohio. Our
mission is to operate our facilities in a safe, reliable and
environmentally responsible manner, provide employees with a safe
and rewarding workplace, become a positive influence in the
communities where we do business, and provide superior returns to
our investors.
PBF Energy Inc. also currently indirectly owns the general
partner and approximately 48% of the limited partnership interest
of PBF Logistics LP (NYSE: PBFX).
|
EARNINGS RELEASE
TABLES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited, in
millions, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues
|
|
$
|
2,515.8
|
|
|
$
|
6,560.0
|
|
|
$
|
7,793.3
|
|
|
$
|
11,776.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost and
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of products and
other
|
|
1,753.1
|
|
|
5,955.8
|
|
|
7,716.4
|
|
|
10,165.0
|
|
|
Operating expenses
(excluding depreciation and amortization expense as reflected
below)
|
|
442.1
|
|
|
433.2
|
|
|
973.8
|
|
|
912.2
|
|
|
Depreciation and
amortization expense
|
|
122.3
|
|
|
104.2
|
|
|
239.0
|
|
|
207.2
|
|
Cost of
sales
|
|
2,317.5
|
|
|
6,493.2
|
|
|
8,929.2
|
|
|
11,284.4
|
|
|
General and
administrative expenses (excluding depreciation and amortization
expense as reflected below)
|
|
57.9
|
|
|
53.6
|
|
|
140.4
|
|
|
111.2
|
|
|
Depreciation and
amortization expense
|
|
2.8
|
|
|
2.9
|
|
|
5.7
|
|
|
5.7
|
|
|
Change in fair value
of contingent consideration
|
|
(12.1)
|
|
|
—
|
|
|
(64.9)
|
|
|
—
|
|
|
(Gain) loss on sale
of assets
|
|
(471.1)
|
|
|
0.8
|
|
|
(471.1)
|
|
|
0.8
|
|
Total cost and
expenses
|
|
1,895.0
|
|
|
6,550.5
|
|
|
8,539.3
|
|
|
11,402.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
620.8
|
|
|
9.5
|
|
|
(746.0)
|
|
|
374.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(65.5)
|
|
|
(42.1)
|
|
|
(114.7)
|
|
|
(81.6)
|
|
|
Change in Tax
Receivable Agreement liability
|
|
—
|
|
|
—
|
|
|
(11.6)
|
|
|
—
|
|
|
Change in fair value
of catalyst obligations
|
|
(5.1)
|
|
|
0.5
|
|
|
6.6
|
|
|
(2.6)
|
|
|
Debt extinguishment
costs
|
|
—
|
|
|
—
|
|
|
(22.2)
|
|
|
—
|
|
|
Other non-service
components of net periodic benefit cost
|
|
|
1.1
|
|
|
—
|
|
|
2.1
|
|
|
(0.1)
|
|
Income (loss)
before income taxes
|
|
551.3
|
|
|
(32.1)
|
|
|
(885.8)
|
|
|
289.8
|
|
Income tax expense
(benefit)
|
|
138.3
|
|
|
(10.5)
|
|
|
(236.3)
|
|
|
70.0
|
|
Net income
(loss)
|
|
413.0
|
|
|
(21.6)
|
|
|
(649.5)
|
|
|
219.8
|
|
|
Less: net income
attributable to noncontrolling interests
|
|
23.9
|
|
|
10.6
|
|
|
27.3
|
|
|
22.8
|
|
Net income (loss)
attributable to PBF Energy Inc. stockholders
|
|
$
|
389.1
|
|
|
$
|
(32.2)
|
|
|
$
|
(676.8)
|
|
|
$
|
197.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
available to Class A common stock per share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
3.24
|
|
|
$
|
(0.27)
|
|
|
$
|
(5.66)
|
|
|
$
|
1.64
|
|
|
|
Diluted
|
|
$
|
3.23
|
|
|
$
|
(0.27)
|
|
|
$
|
(5.67)
|
|
|
$
|
1.63
|
|
|
|
Weighted-average
shares outstanding-basic
|
|
120,010,882
|
|
|
119,181,845
|
|
|
119,499,392
|
|
|
119,885,386
|
|
|
|
Weighted-average
shares outstanding-diluted
|
|
121,428,900
|
|
|
119,181,845
|
|
|
120,612,601
|
|
|
122,020,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per
common share
|
|
$
|
—
|
|
|
$
|
0.30
|
|
|
$
|
—
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income (loss) and adjusted fully-converted net
income (loss) per fully exchanged, fully diluted shares outstanding
(Note 1):
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income (loss)
|
|
$
|
392.4
|
|
|
$
|
(32.7)
|
|
|
$
|
(684.3)
|
|
|
$
|
198.8
|
|
|
|
Adjusted
fully-converted net income (loss) per fully exchanged, fully
diluted share
|
|
$
|
3.23
|
|
|
$
|
(0.27)
|
|
|
$
|
(5.67)
|
|
|
$
|
1.63
|
|
|
|
Adjusted
fully-converted shares outstanding - diluted (Note 6)
|
|
121,428,900
|
|
|
120,388,170
|
|
|
120,612,601
|
|
|
122,020,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
(Unaudited, in
millions, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
NET INCOME (LOSS) TO ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) AND
ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) EXCLUDING SPECIAL
ITEMS (Note 1)
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income (loss)
attributable to PBF Energy Inc. stockholders
|
|
$
|
389.1
|
|
|
$
|
(32.2)
|
|
|
$
|
(676.8)
|
|
|
$
|
197.0
|
|
Less:
Income allocated to participating
securities
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
0.2
|
|
Income (loss)
available to PBF Energy Inc. stockholders - basic
|
|
389.1
|
|
|
(32.3)
|
|
|
(676.9)
|
|
|
196.8
|
|
Add:
Net income (loss) attributable to
noncontrolling interest (Note 2)
|
|
4.5
|
|
|
(0.5)
|
|
|
(10.1)
|
|
|
2.7
|
|
Less:
Income tax (expense) benefit (Note
3)
|
|
(1.2)
|
|
|
0.1
|
|
|
2.7
|
|
|
(0.7)
|
|
Adjusted
fully-converted net income (loss)
|
|
$
|
392.4
|
|
|
$
|
(32.7)
|
|
|
$
|
(684.3)
|
|
|
$
|
198.8
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
|
Add:
Non-cash LCM inventory
adjustment
|
|
(584.2)
|
|
|
182.0
|
|
|
701.4
|
|
|
(324.0)
|
|
Add:
Change in Tax Receivable Agreement
liability
|
|
—
|
|
|
—
|
|
|
11.6
|
|
|
—
|
|
Add:
Debt extinguishment costs
|
|
—
|
|
|
—
|
|
|
22.2
|
|
|
—
|
|
Add:
Change in fair value of contingent
consideration
|
|
(12.1)
|
|
|
—
|
|
|
(64.9)
|
|
|
—
|
|
Add: Gain
on sale of hydrogen plants
|
|
(471.1)
|
|
|
—
|
|
|
(471.1)
|
|
|
—
|
|
Add:
Severance costs
|
|
12.9
|
|
|
—
|
|
|
12.9
|
|
|
—
|
|
Less:
Recomputed income taxes on special items
(Note 3)
|
|
277.3
|
|
|
(48.2)
|
|
|
(55.8)
|
|
|
85.7
|
|
Adjusted
fully-converted net income (loss) excluding special
items
|
|
$
|
(384.8)
|
|
|
$
|
101.1
|
|
|
$
|
(528.0)
|
|
|
$
|
(39.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding of PBF Energy Inc.
|
|
120,010,882
|
|
|
119,181,845
|
|
|
119,499,392
|
|
|
119,885,386
|
|
Conversion of PBF LLC
Series A Units (Note 5)
|
|
1,017,620
|
|
|
1,206,325
|
|
|
1,113,209
|
|
|
1,206,325
|
|
Common stock
equivalents (Note 6)
|
|
400,398
|
|
|
1,501,569
|
|
|
—
|
|
|
928,733
|
|
Fully-converted
shares outstanding - diluted
|
|
121,428,900
|
|
|
121,889,739
|
|
|
120,612,601
|
|
|
122,020,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
fully-converted net income (loss) per fully exchanged, fully
diluted shares outstanding (Note 6)
|
|
$
|
3.23
|
|
|
$
|
(0.27)
|
|
|
$
|
(5.67)
|
|
|
$
|
1.63
|
|
|
Adjusted
fully-converted net income (loss) excluding special items per fully
exchanged, fully diluted shares outstanding (Note 4,
6)
|
|
$
|
(3.19)
|
|
|
$
|
0.83
|
|
|
$
|
(4.38)
|
|
|
$
|
(0.33)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
RECONCILIATION OF
INCOME (LOSS) FROM OPERATIONS TO INCOME (LOSS) FROM OPERATIONS
EXCLUDING SPECIAL ITEMS
|
|
June
30,
|
|
June
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Income (loss) from
operations
|
|
$
|
620.8
|
|
|
$
|
9.5
|
|
|
$
|
(746.0)
|
|
|
$
|
374.1
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
Add:
Non-cash LCM inventory
adjustment
|
|
(584.2)
|
|
|
182.0
|
|
|
701.4
|
|
|
(324.0)
|
|
Add:
Change in fair value of contingent
consideration
|
|
(12.1)
|
|
|
—
|
|
|
(64.9)
|
|
|
—
|
|
Add:
Gain on sale of hydrogen
plants
|
|
(471.1)
|
|
|
—
|
|
|
(471.1)
|
|
|
—
|
|
Add:
Severance costs
|
|
12.9
|
|
|
—
|
|
|
12.9
|
|
|
—
|
|
Income (loss) from
operations excluding special items
|
|
$
|
(433.7)
|
|
|
$
|
191.5
|
|
|
$
|
(567.7)
|
|
|
$
|
50.1
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
EBITDA
RECONCILIATIONS (Note 7)
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
RECONCILIATION OF
NET INCOME (LOSS) TO EBITDA AND EBITDA EXCLUDING SPECIAL
ITEMS
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
413.0
|
|
|
$
|
(21.6)
|
|
|
$
|
(649.5)
|
|
|
$
|
219.8
|
|
Add: Depreciation and
amortization expense
|
|
125.1
|
|
|
107.1
|
|
|
244.7
|
|
|
212.9
|
|
Add: Interest expense,
net
|
|
65.5
|
|
|
42.1
|
|
|
114.7
|
|
|
81.6
|
|
Add: Income tax
expense (benefit)
|
|
138.3
|
|
|
(10.5)
|
|
|
(236.3)
|
|
|
70.0
|
|
EBITDA
|
|
|
$
|
741.9
|
|
|
$
|
117.1
|
|
|
$
|
(526.4)
|
|
|
$
|
584.3
|
|
Special Items (Note
4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment
|
|
(584.2)
|
|
|
182.0
|
|
|
701.4
|
|
|
(324.0)
|
|
Add: Change in Tax
Receivable Agreement liability
|
|
—
|
|
|
—
|
|
|
11.6
|
|
|
—
|
|
Add: Debt
extinguishment costs
|
|
—
|
|
|
—
|
|
|
22.2
|
|
|
—
|
|
Add: Change in fair
value of contingent consideration
|
|
(12.1)
|
|
|
—
|
|
|
(64.9)
|
|
|
—
|
|
Add: Gain on sale of
hydrogen plants
|
|
(471.1)
|
|
|
—
|
|
|
(471.1)
|
|
|
—
|
|
Add: Severance
costs
|
|
12.9
|
|
|
—
|
|
|
12.9
|
|
|
—
|
|
EBITDA excluding
special items
|
|
$
|
(312.6)
|
|
|
$
|
299.1
|
|
|
$
|
(314.3)
|
|
|
$
|
260.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
RECONCILIATION OF
EBITDA TO ADJUSTED EBITDA
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
|
741.9
|
|
|
$
|
117.1
|
|
|
$
|
(526.4)
|
|
|
$
|
584.3
|
|
Add: Stock-based
compensation
|
|
9.1
|
|
|
12.0
|
|
|
18.7
|
|
|
20.0
|
|
Add: Change in fair
value of catalyst obligations
|
|
5.1
|
|
|
(0.5)
|
|
|
(6.6)
|
|
|
2.6
|
|
Add: Change in fair
value of contingent consideration (Note 4)
|
|
(12.1)
|
|
|
—
|
|
|
(64.9)
|
|
|
—
|
|
Add: Non-cash LCM
inventory adjustment (Note 4)
|
|
(584.2)
|
|
|
182.0
|
|
|
701.4
|
|
|
(324.0)
|
|
Add: Gain on sale of
hydrogen plants (Note 4)
|
|
(471.1)
|
|
|
—
|
|
|
(471.1)
|
|
|
—
|
|
Add: Change in Tax
Receivable Agreement liability (Note 4)
|
|
—
|
|
|
—
|
|
|
11.6
|
|
|
—
|
|
Add: Debt
extinguishment costs (Note 4)
|
|
—
|
|
|
—
|
|
|
22.2
|
|
|
—
|
|
Add: Severance costs
(Note 4)
|
|
12.9
|
|
|
—
|
|
|
12.9
|
|
|
—
|
|
Adjusted
EBITDA
|
|
|
$
|
(298.4)
|
|
|
$
|
310.6
|
|
|
$
|
(302.2)
|
|
|
$
|
282.9
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
CONDENSED
CONSOLIDATED BALANCE SHEET DATA
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
|
|
2020
|
|
2019
|
Balance Sheet
Data:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,225.2
|
|
|
$
|
814.9
|
|
|
Inventories
|
1,620.2
|
|
|
2,122.2
|
|
|
Total
assets
|
10,073.3
|
|
|
9,132.4
|
|
|
Total debt
|
4,092.8
|
|
|
2,064.9
|
|
|
|
|
|
|
|
Total
equity
|
2,889.7
|
|
|
3,585.5
|
|
|
Total equity excluding
special items (Note 4, 13)
|
$
|
3,136.3
|
|
|
$
|
3,675.8
|
|
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio (Note 13)
|
59
|
%
|
|
37
|
%
|
|
Total debt to
capitalization ratio, excluding special items (Note 13)
|
57
|
%
|
|
36
|
%
|
|
Net debt to
capitalization ratio (Note 13)
|
50
|
%
|
|
26
|
%
|
|
Net debt to
capitalization ratio, excluding special items (Note 13)
|
48
|
%
|
|
25
|
%
|
|
|
|
|
|
SUMMARIZED
STATEMENT OF CASH FLOW DATA
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
2020
|
|
2019
|
Cash flows used in
operating activities
|
$
|
(628.8)
|
|
|
$
|
(27.4)
|
|
Cash flows used in
investing activities
|
(933.6)
|
|
|
(501.9)
|
|
Cash flows provided
by financing activities
|
1,972.7
|
|
|
136.1
|
|
Net increase
(decrease) in cash and cash equivalents
|
410.3
|
|
|
(393.2)
|
|
Cash and cash
equivalents, beginning of period
|
814.9
|
|
|
597.3
|
|
Cash and cash
equivalents, end of period
|
$
|
1,225.2
|
|
|
$
|
204.1
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
CONSOLIDATING
FINANCIAL INFORMATION (Note 8)
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2020
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
2,499.1
|
|
|
$
|
89.2
|
|
|
$
|
—
|
|
|
$
|
(72.5)
|
|
|
$
|
2,515.8
|
|
Depreciation and
amortization expense
|
111.1
|
|
|
11.2
|
|
|
2.8
|
|
|
—
|
|
|
125.1
|
|
Income (loss) from
operations
|
614.6
|
|
|
50.1
|
|
|
(43.9)
|
|
|
—
|
|
|
620.8
|
|
Interest expense,
net
|
0.7
|
|
|
12.7
|
|
|
52.1
|
|
|
—
|
|
|
65.5
|
|
Capital
expenditures
|
143.8
|
|
|
1.8
|
|
|
2.2
|
|
|
—
|
|
|
147.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2019
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
6,551.9
|
|
|
$
|
82.8
|
|
|
$
|
—
|
|
|
$
|
(74.7)
|
|
|
$
|
6,560.0
|
|
Depreciation and
amortization expense
|
95.3
|
|
|
8.9
|
|
|
2.9
|
|
|
—
|
|
|
107.1
|
|
Income (loss) from
operations (Note 15, 16)
|
23.7
|
|
|
37.8
|
|
|
(48.8)
|
|
|
(3.2)
|
|
|
9.5
|
|
Interest expense,
net
|
0.9
|
|
|
12.5
|
|
|
28.7
|
|
|
—
|
|
|
42.1
|
|
Capital
expenditures
|
235.9
|
|
|
4.0
|
|
|
1.4
|
|
|
—
|
|
|
241.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2020
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
7,759.1
|
|
|
$
|
182.2
|
|
|
$
|
—
|
|
|
$
|
(148.0)
|
|
|
$
|
7,793.3
|
|
Depreciation and
amortization expense
|
216.5
|
|
|
22.5
|
|
|
5.7
|
|
|
—
|
|
|
244.7
|
|
Income (loss) from
operations
|
(771.8)
|
|
|
97.8
|
|
|
(72.0)
|
|
|
—
|
|
|
(746.0)
|
|
Interest expense,
net
|
1.5
|
|
|
25.5
|
|
|
87.7
|
|
|
—
|
|
|
114.7
|
|
Capital
expenditures (Note 14)
|
1,447.9
|
|
|
7.9
|
|
|
7.2
|
|
|
—
|
|
|
1,463.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2019
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
11,760.6
|
|
|
$
|
161.6
|
|
|
$
|
—
|
|
|
$
|
(146.0)
|
|
|
$
|
11,776.2
|
|
Depreciation and
amortization expense
|
189.6
|
|
|
17.6
|
|
|
5.7
|
|
|
—
|
|
|
212.9
|
|
Income (loss) from
operations (Note 15, 16)
|
413.2
|
|
|
72.0
|
|
|
(103.2)
|
|
|
(7.9)
|
|
|
374.1
|
|
Interest expense,
net
|
1.4
|
|
|
24.6
|
|
|
55.6
|
|
|
—
|
|
|
81.6
|
|
Capital
expenditures
|
483.0
|
|
|
15.2
|
|
|
3.7
|
|
|
—
|
|
|
501.9
|
|
|
Balance at June
30, 2020
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Total
Assets
|
$
|
8,947.7
|
|
|
$
|
950.5
|
|
|
$
|
230.2
|
|
|
$
|
(55.1)
|
|
|
$
|
10,073.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31, 2019
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Total
Assets
|
$
|
8,154.8
|
|
|
$
|
973.0
|
|
|
$
|
52.7
|
|
|
$
|
(48.1)
|
|
|
$
|
9,132.4
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
MARKET INDICATORS
AND KEY OPERATING INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
June
30,
|
Market Indicators
(dollars per barrel) (Note 9)
|
2020
|
2019
|
2020
|
2019
|
Dated Brent crude
oil
|
$
29.57
|
$
68.96
|
$
39.55
|
$
66.16
|
West Texas
Intermediate (WTI) crude oil
|
$
27.96
|
$
59.90
|
$
36.69
|
$
57.42
|
Light Louisiana Sweet
(LLS) crude oil
|
$
30.19
|
$
67.04
|
$
38.93
|
$
64.75
|
Alaska North Slope
(ANS) crude oil
|
$
30.28
|
$
68.29
|
$
40.59
|
$
66.37
|
Crack
Spreads:
|
|
|
|
|
Dated Brent (NYH)
2-1-1
|
$
9.66
|
$
13.54
|
$
9.81
|
$
11.72
|
WTI (Chicago)
4-3-1
|
$
5.25
|
$
21.10
|
$
6.30
|
$
16.79
|
LLS (Gulf Coast)
2-1-1
|
$
6.49
|
$
12.65
|
$
8.44
|
$
11.29
|
ANS (West Coast-LA)
4-3-1
|
$
9.18
|
$
22.96
|
$
11.26
|
$
18.33
|
ANS
(West Coast-SF) 3-2-1
|
$
8.76
|
$
21.72
|
$
9.20
|
$
16.61
|
Crude Oil
Differentials:
|
|
|
|
|
Dated Brent (foreign)
less WTI
|
$
1.61
|
$
9.06
|
$
2.86
|
$
8.74
|
Dated Brent less Maya
(heavy, sour)
|
$
5.34
|
$
7.27
|
$
7.01
|
$
5.69
|
Dated Brent less WTS
(sour)
|
$
1.42
|
$
10.73
|
$
3.04
|
$
10.15
|
Dated Brent less ASCI
(sour)
|
$
0.35
|
$
3.96
|
$
2.30
|
$
3.17
|
WTI less WCS (heavy,
sour)
|
$
5.77
|
$
12.53
|
$
11.21
|
$
11.28
|
WTI less Bakken (light,
sweet)
|
$
3.03
|
$
1.06
|
$
3.25
|
$
0.41
|
WTI less Syncrude
(light, sweet)
|
$
1.22
|
$
(0.05)
|
$
1.37
|
$
(0.01)
|
WTI less LLS (light,
sweet)
|
$
(2.23)
|
$
(7.14)
|
$
(2.24)
|
$
(7.33)
|
WTI less ANS (light,
sweet)
|
$
(2.32)
|
$
(8.39)
|
$
(3.90)
|
$
(8.95)
|
Natural gas (dollars
per MMBTU)
|
$
1.75
|
$
2.51
|
$
1.81
|
$
2.69
|
|
|
|
|
|
|
|
|
|
|
Key Operating
Information
|
|
|
|
|
Production (barrels
per day ("bpd") in thousands)
|
676.0
|
854.2
|
770.1
|
796.7
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
675.1
|
854.1
|
764.0
|
798.9
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
61.4
|
77.7
|
139.0
|
144.6
|
Consolidated gross
margin per barrel of throughput
|
$
3.23
|
$
0.85
|
$
(8.17)
|
$
3.40
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
1.54
|
$
9.10
|
$
4.36
|
$
7.85
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
6.90
|
$
5.27
|
$
6.70
|
$
5.97
|
Crude and
feedstocks (% of total throughput) (Note 12)
|
|
|
|
|
Heavy
|
44%
|
30%
|
44%
|
31%
|
Medium
|
31%
|
28%
|
26%
|
30%
|
Light
|
13%
|
26%
|
17%
|
25%
|
Other feedstocks and
blends
|
12%
|
16%
|
13%
|
14%
|
|
Total
throughput
|
100 %
|
100 %
|
100 %
|
100 %
|
Yield (% of total
throughput)
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
46%
|
49%
|
48%
|
48%
|
Distillates and
distillate blendstocks
|
32%
|
31%
|
32%
|
32%
|
Lubes
|
1%
|
1%
|
1%
|
1%
|
Chemicals
|
1%
|
2%
|
1%
|
2%
|
Other
|
20%
|
17%
|
19%
|
17%
|
|
Total
yield
|
100 %
|
100 %
|
101 %
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
SUPPLEMENTAL
OPERATING INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Supplemental
Operating Information - East Coast (Delaware City and
Paulsboro)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
241.5
|
|
|
321.1
|
|
|
284.7
|
|
|
309.5
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
242.3
|
|
|
325.8
|
|
|
285.8
|
|
|
315.5
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
22.0
|
|
|
29.6
|
|
|
52.0
|
|
|
57.1
|
|
Gross margin per
barrel of throughput
|
$
|
3.08
|
|
|
$
|
(3.56)
|
|
|
$
|
(6.53)
|
|
|
$
|
(1.29)
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
|
3.51
|
|
|
$
|
4.18
|
|
|
$
|
5.48
|
|
|
$
|
3.78
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
5.02
|
|
|
$
|
4.91
|
|
|
$
|
5.42
|
|
|
$
|
5.61
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
|
|
|
|
Heavy
|
23
|
%
|
|
18
|
%
|
|
25
|
%
|
|
22
|
%
|
Medium
|
41
|
%
|
|
42
|
%
|
|
33
|
%
|
|
46
|
%
|
Light
|
15
|
%
|
|
17
|
%
|
|
22
|
%
|
|
11
|
%
|
Other feedstocks and
blends
|
21
|
%
|
|
23
|
%
|
|
20
|
%
|
|
21
|
%
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
40
|
%
|
|
44
|
%
|
|
43
|
%
|
|
44
|
%
|
Distillates and
distillate blendstocks
|
36
|
%
|
|
29
|
%
|
|
36
|
%
|
|
30
|
%
|
Lubes
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
Chemicals
|
2
|
%
|
|
1
|
%
|
|
2
|
%
|
|
1
|
%
|
Other
|
20
|
%
|
|
23
|
%
|
|
17
|
%
|
|
21
|
%
|
|
Total
yield
|
100
|
%
|
|
99
|
%
|
|
100
|
%
|
|
98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - Mid-Continent (Toledo)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
77.6
|
|
|
166.0
|
|
|
84.2
|
|
|
158.1
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
76.9
|
|
|
163.2
|
|
|
83.5
|
|
|
155.6
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
7.0
|
|
|
14.9
|
|
|
15.2
|
|
|
28.2
|
|
Gross margin per
barrel of throughput
|
$
|
7.95
|
|
|
$
|
5.82
|
|
|
$
|
(20.22)
|
|
|
$
|
10.26
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
|
(4.63)
|
|
|
$
|
14.87
|
|
|
$
|
(1.51)
|
|
|
$
|
13.65
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
7.14
|
|
|
$
|
4.80
|
|
|
$
|
7.81
|
|
|
$
|
5.16
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
|
|
|
|
Medium
|
42
|
%
|
|
30
|
%
|
|
40
|
%
|
|
29
|
%
|
Light
|
56
|
%
|
|
69
|
%
|
|
58
|
%
|
|
70
|
%
|
Other feedstocks and
blends
|
2
|
%
|
|
1
|
%
|
|
2
|
%
|
|
1
|
%
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
49
|
%
|
|
50
|
%
|
|
47
|
%
|
|
51
|
%
|
Distillates and
distillate blendstocks
|
26
|
%
|
|
36
|
%
|
|
28
|
%
|
|
36
|
%
|
Chemicals
|
4
|
%
|
|
5
|
%
|
|
3
|
%
|
|
6
|
%
|
Other
|
22
|
%
|
|
11
|
%
|
|
23
|
%
|
|
9
|
%
|
|
Total
yield
|
101
|
%
|
|
102
|
%
|
|
101
|
%
|
|
102
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
SUPPLEMENTAL
OPERATING INFORMATION
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Supplemental
Operating Information - Gulf Coast (Chalmette)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
134.4
|
|
|
197.5
|
|
|
156.6
|
|
|
181.2
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
132.3
|
|
|
201.4
|
|
|
153.4
|
|
|
183.1
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
12.0
|
|
|
18.3
|
|
|
27.9
|
|
|
33.1
|
|
Gross margin per
barrel of throughput
|
$
|
2.54
|
|
|
$
|
(1.60)
|
|
|
$
|
(4.55)
|
|
|
$
|
1.12
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
|
3.99
|
|
|
$
|
5.61
|
|
|
$
|
6.31
|
|
|
$
|
4.59
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
5.33
|
|
|
$
|
4.15
|
|
|
$
|
4.96
|
|
|
$
|
4.93
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
|
|
|
|
Heavy
|
41
|
%
|
|
32
|
%
|
|
41
|
%
|
|
33
|
%
|
Medium
|
42
|
%
|
|
23
|
%
|
|
36
|
%
|
|
20
|
%
|
Light
|
10
|
%
|
|
26
|
%
|
|
11
|
%
|
|
31
|
%
|
Other feedstocks and
blends
|
7
|
%
|
|
19
|
%
|
|
12
|
%
|
|
16
|
%
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
41
|
%
|
|
46
|
%
|
|
43
|
%
|
|
43
|
%
|
Distillates and
distillate blendstocks
|
34
|
%
|
|
32
|
%
|
|
33
|
%
|
|
33
|
%
|
Chemicals
|
1
|
%
|
|
2
|
%
|
|
2
|
%
|
|
2
|
%
|
Other
|
26
|
%
|
|
18
|
%
|
|
24
|
%
|
|
21
|
%
|
|
Total
yield
|
102
|
%
|
|
98
|
%
|
|
102
|
%
|
|
99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Operating Information - West Coast (Torrance and
Martinez)
|
|
|
|
|
|
|
|
Production (bpd in
thousands)
|
222.5
|
|
|
169.6
|
|
|
244.6
|
|
|
147.9
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
223.6
|
|
|
163.7
|
|
|
241.3
|
|
|
144.7
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
20.4
|
|
|
14.9
|
|
|
43.9
|
|
|
26.2
|
|
Gross margin per
barrel of throughput
|
$
|
(0.52)
|
|
|
$
|
4.69
|
|
|
$
|
(10.67)
|
|
|
$
|
5.87
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
|
0.05
|
|
|
$
|
17.51
|
|
|
$
|
3.83
|
|
|
$
|
14.60
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
9.77
|
|
|
$
|
7.84
|
|
|
$
|
8.93
|
|
|
$
|
8.94
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
|
|
|
|
Heavy
|
82
|
%
|
|
79
|
%
|
|
82
|
%
|
|
81
|
%
|
Medium
|
9
|
%
|
|
8
|
%
|
|
8
|
%
|
|
8
|
%
|
Other feedstocks and
blends
|
9
|
%
|
|
13
|
%
|
|
10
|
%
|
|
11
|
%
|
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
|
|
|
|
Gasoline and gasoline
blendstocks
|
54
|
%
|
|
60
|
%
|
|
58
|
%
|
|
57
|
%
|
Distillates and
distillate blendstocks
|
28
|
%
|
|
27
|
%
|
|
27
|
%
|
|
26
|
%
|
Other
|
18
|
%
|
|
17
|
%
|
|
16
|
%
|
|
19
|
%
|
|
Total
yield
|
100
|
%
|
|
104
|
%
|
|
101
|
%
|
|
102
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
GROSS REFINING
MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note
10)
|
(Unaudited, in
millions, except per barrel amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
June 30,
2020
|
|
June 30,
2019
|
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
|
$
|
2,515.8
|
|
|
$
|
40.95
|
|
|
$
|
6,560.0
|
|
|
$
|
84.40
|
|
Less: Cost of
sales
|
2,317.5
|
|
|
37.72
|
|
|
6,493.2
|
|
|
83.55
|
|
Consolidated gross
margin
|
$
|
198.3
|
|
|
$
|
3.23
|
|
|
$
|
66.8
|
|
|
$
|
0.85
|
|
Reconciliation of
consolidated gross margin to gross refining margin:
|
|
|
|
|
|
|
|
Consolidated gross
margin
|
$
|
198.3
|
|
|
$
|
3.23
|
|
|
$
|
66.8
|
|
|
$
|
0.85
|
|
Add: PBFX operating
expense
|
23.2
|
|
|
0.38
|
|
|
28.6
|
|
|
0.37
|
|
Add: PBFX depreciation
expense
|
11.2
|
|
|
0.18
|
|
|
8.9
|
|
|
0.11
|
|
Less: Revenues of
PBFX
|
(89.2)
|
|
|
(1.45)
|
|
|
(82.8)
|
|
|
(1.07)
|
|
Add: Refinery operating
expense
|
423.7
|
|
|
6.90
|
|
|
409.7
|
|
|
5.27
|
|
Add: Refinery
depreciation expense
|
111.1
|
|
|
1.81
|
|
|
95.3
|
|
|
1.23
|
|
Gross refining
margin
|
$
|
678.3
|
|
|
$
|
11.05
|
|
|
$
|
526.5
|
|
|
$
|
6.76
|
|
Special
Items (Note 4):
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment
|
(584.2)
|
|
|
(9.51)
|
|
|
182.0
|
|
|
2.34
|
|
Gross refining
margin excluding special items
|
$
|
94.1
|
|
|
$
|
1.54
|
|
|
$
|
708.5
|
|
|
$
|
9.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
Six Months
Ended
|
|
|
|
|
|
|
|
June 30,
2020
|
|
June 30,
2019
|
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
|
$
|
7,793.3
|
|
|
$
|
56.05
|
|
|
$
|
11,776.2
|
|
|
$
|
81.44
|
|
Less: Cost of
sales
|
8,929.2
|
|
|
64.22
|
|
|
11,284.4
|
|
|
78.04
|
|
Consolidated gross
margin
|
$
|
(1,135.9)
|
|
|
$
|
(8.17)
|
|
|
$
|
491.8
|
|
|
$
|
3.40
|
|
Reconciliation of
consolidated gross margin to gross refining margin:
|
|
|
|
|
|
|
|
Consolidated gross
margin
|
$
|
(1,135.9)
|
|
|
$
|
(8.17)
|
|
|
$
|
491.8
|
|
|
$
|
3.40
|
|
Add: PBFX operating
expense
|
52.8
|
|
|
0.38
|
|
|
58.5
|
|
|
0.40
|
|
Add: PBFX depreciation
expense
|
22.5
|
|
|
0.16
|
|
|
17.6
|
|
|
0.12
|
|
Less: Revenues of
PBFX
|
(182.2)
|
|
|
(1.31)
|
|
|
(161.6)
|
|
|
(1.12)
|
|
Add: Refinery operating
expense
|
931.2
|
|
|
6.70
|
|
|
863.1
|
|
|
5.97
|
|
Add: Refinery
depreciation expense
|
216.5
|
|
|
1.56
|
|
|
189.6
|
|
|
1.31
|
|
Gross refining
margin
|
$
|
(95.1)
|
|
|
$
|
(0.68)
|
|
|
$
|
1,459.0
|
|
|
$
|
10.08
|
|
Special
Items (Note 4):
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment
|
701.4
|
|
|
5.04
|
|
|
(324.0)
|
|
|
(2.23)
|
|
Gross refining
margin excluding special items
|
$
|
606.3
|
|
|
$
|
4.36
|
|
|
$
|
1,135.0
|
|
|
$
|
7.85
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
FOOTNOTES TO
EARNINGS RELEASE TABLES
|
|
(1) Adjusted
fully-converted information is presented in this table as
management believes that these Non-GAAP measures, when presented in
conjunction with comparable GAAP measures, are useful to investors
to compare our results across the periods presented and facilitates
an understanding of our operating results. We also use these
measures to evaluate our operating performance. These measures
should not be considered a substitute for, or superior to, measures
of financial performance prepared in accordance with GAAP. The
differences between adjusted fully-converted and GAAP results are
explained in footnotes 2 through 6.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Represents the
elimination of the noncontrolling interest associated with the
ownership by the members of PBF Energy Company LLC ("PBF LLC")
other than PBF Energy Inc., as if such members had fully exchanged
their PBF LLC Series A Units for shares of PBF Energy's Class A
common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Represents an
adjustment to reflect PBF Energy's estimated annualized statutory
corporate tax rate of approximately 26.3% and 26.5% for the 2020
and 2019 periods, respectively, applied to net income (loss)
attributable to noncontrolling interest for all periods presented.
The adjustment assumes the full exchange of existing PBF LLC Series
A Units as described in footnote 2.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) The Non-GAAP
measures presented include adjusted fully-converted net income
(loss) excluding special items, income (loss) from operations
excluding special items, EBITDA excluding special items and gross
refining margin excluding special items. Special items for the
three and six months ended June 30, 2020 and 2019 relate to LCM
inventory adjustments, changes in the Tax Receivable Agreement
liability, debt extinguishment costs, change in the fair value of
contingent consideration, gain on sale of hydrogen plants and
severance costs related to a reduction in workforce, all as
discussed further below. Additionally, the cumulative effects of
all current and prior period special items on equity are shown in
footnote 13.
Although we believe
that Non-GAAP financial measures excluding the impact of special
items provide useful supplemental information to investors
regarding the results and performance of our business and allow for
useful period-over-period comparisons, such Non-GAAP measures
should only be considered as a supplement to, and not as a
substitute for, or superior to, the financial measures prepared in
accordance with GAAP.
Special
Items:
LCM inventory
adjustment - LCM is a GAAP requirement related to
inventory valuation that mandates inventory to be stated at the
lower of cost or market. Our inventories are stated at the lower of
cost or market. Cost is determined using last-in, first-out
("LIFO") inventory valuation methodology, in which the most
recently incurred costs are charged to cost of sales and
inventories are valued at base layer acquisition costs. Market is
determined based on an assessment of the current estimated
replacement cost and net realizable selling price of the inventory.
In periods where the market price of our inventory declines
substantially, cost values of inventory may exceed market values.
In such instances, we record an adjustment to write down the value
of inventory to market value in accordance with GAAP. In subsequent
periods, the value of inventory is reassessed and an LCM inventory
adjustment is recorded to reflect the net change in the LCM
inventory reserve between the prior period and the current
period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
includes the LCM inventory reserve as of each date presented (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
January 1,
|
|
|
|
$
|
401.6
|
|
|
$
|
651.8
|
|
March 31,
|
|
|
|
1,687.2
|
|
|
145.8
|
|
June 30,
|
|
|
|
1,103.0
|
|
|
327.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
includes the corresponding impact of changes in the LCM inventory
reserve on income (loss) from operations and net income (loss) for
the periods presented (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net LCM inventory
adjustment benefit (charge) in income (loss) from
operations
|
$
|
584.2
|
|
|
$
|
(182.0)
|
|
|
$
|
(701.4)
|
|
|
$
|
324.0
|
|
Net LCM inventory
adjustment benefit (charge) in net income (loss)
|
430.6
|
|
|
(133.8)
|
|
|
(516.9)
|
|
|
238.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
Extinguishment Costs - During the six months ended
June 30, 2020, we recorded pre-tax debt extinguishment costs
of $22.2 million related to the redemption of the 2023 Senior
Notes. These nonrecurring charges decreased net income by $16.4
million for the six months ended June 30, 2020. There were no
such costs in any of the other periods presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Tax
Receivable Agreement liability - During the six months ended
June 30, 2020, we recorded a change in the Tax Receivable
Agreement liability that decreased income before income taxes and
net income by $11.6 million and $8.5 million, respectively. The
changes in the Tax Receivable Agreement liability reflect charges
or benefits attributable to changes in our obligation under the Tax
Receivable Agreement due to factors out of our control such as
changes in tax rates. There was no change in the Tax Receivable
Agreement liability during any of the other periods
presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Fair
Value of Contingent Consideration - During the three months
ended June 30, 2020, we recorded a change in the fair value of
the contingent consideration primarily related to the Martinez
Contingent Consideration which increased income from operations and
net income by $12.1 million and $8.9 million, respectively. During
the six months ended June 30, 2020, we recorded a change in
the fair value of the contingent consideration primarily related to
the Martinez Contingent Consideration which increased income from
operations and net income by $64.9 million and $47.8 million,
respectively. There were no such changes in fair value of
contingent consideration during the three and six months ended
June 30, 2019.
|
|
Gain on Sale of
Hydrogen Plants - During the three and six months ended
June 30, 2020, we recorded a gain on the sale of five hydrogen
plants. The gain increased income from operations and net income by
$471.1 million and $347.2 million, respectively. There
was no such gain during the three and six months ended June 30,
2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance Costs
- During the three and six months ended June 30, 2020, we
recorded a severance charge related to a reduction in our workforce
that decreased income from operations and net income by $12.9
million and $9.5 million, respectively. There were no such costs
during the three and six months ended June 30, 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Represents an
adjustment to weighted-average diluted shares outstanding to assume
the full exchange of existing PBF LLC Series A Units as described
in footnote 2 above.
|
|
(6) Represents
weighted-average diluted shares outstanding assuming the conversion
of all common stock equivalents, including options and warrants for
PBF LLC Series A Units and performance share units and options for
shares of PBF Energy Class A common stock as calculated under the
treasury stock method (to the extent the impact of such exchange
would not be anti-dilutive) for the three and six months ended June
30, 2020 and 2019, respectively. Common stock equivalents exclude
the effects of performance share units and options and warrants to
purchase 11,483,336 and 11,729,631 shares of PBF Energy
Class A common stock and PBF LLC Series A Units because they
are anti-dilutive for the three and six months ended June 30, 2020,
respectively. Common stock equivalents exclude the effects of
performance share units and options and warrants to purchase
6,833,973 and 6,012,867 shares of PBF Energy Class A common stock
and PBF LLC Series A Units because they are anti-dilutive for the
three and six months ended June 30, 2019, respectively. For periods
showing a net loss, all common stock equivalents and unvested
restricted stock are considered anti-dilutive.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7) EBITDA (Earnings
before Interest, Income Taxes, Depreciation and Amortization) and
Adjusted EBITDA are supplemental measures of performance that are
not required by, or presented in accordance with GAAP. Adjusted
EBITDA is defined as EBITDA before adjustments for items such as
stock-based compensation expense, the non-cash change in the fair
value of catalyst obligations, gain on sale of hydrogen plants, the
write down of inventory to the LCM, changes in the liability for
Tax Receivable Agreement due to factors out of our control, such as
changes in tax rates, debt extinguishment costs related to
refinancing activities, and certain other non-cash items. We use
these Non-GAAP financial measures as a supplement to our GAAP
results in order to provide additional metrics on factors and
trends affecting our business. EBITDA and Adjusted EBITDA are
measures of operating performance that are not defined by GAAP and
should not be considered substitutes for net income as determined
in accordance with GAAP. In addition, because EBITDA and Adjusted
EBITDA are not calculated in the same manner by all companies, they
are not necessarily comparable to other similarly titled measures
used by other companies. EBITDA and Adjusted EBITDA have their
limitations as an analytical tool, and you should not consider them
in isolation or as substitutes for analysis of our results as
reported under GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8) We operate in two
reportable segments: Refining and Logistics. Our operations that
are not included in the Refining and Logistics segments are
included in Corporate. As of June 30, 2020, the Refining segment
includes the operations of our oil refineries and related
facilities in Delaware City, Delaware, Paulsboro, New Jersey,
Toledo, Ohio, Chalmette, Louisiana, Torrance, California and
Martinez, California. The Logistics segment includes the operations
of PBF Logistics LP ("PBFX"), a growth-oriented master limited
partnership which owns or leases, operates, develops and acquires
crude oil and refined petroleum products terminals, pipelines,
storage facilities and similar logistics assets. PBFX's assets
primarily consist of rail and truck terminals and unloading racks,
storage facilities and pipelines, a substantial portion of which
were acquired from or contributed by PBF LLC and are located at, or
nearby, our refineries. PBFX provides various rail, truck and
marine terminaling services, pipeline transportation services and
storage services to PBF Holding and/or its subsidiaries and third
party customers through fee-based commercial agreements.
PBFX currently does not generate significant third party revenue
and intersegment related-party revenues are eliminated in
consolidation. From a PBF Energy perspective, our chief operating
decision maker evaluates the Logistics segment as a whole without
regard to any of PBFX's individual operating segments.
|
|
(9) As reported by
Platts.
|
|
(10)
Gross refining margin and gross refining margin per barrel of
throughput are Non-GAAP measures because they exclude refinery
operating expenses, depreciation and amortization and gross margin
of PBFX. Gross refining margin per barrel is gross refining margin,
divided by total crude and feedstocks throughput. We believe they
are important measures of operating performance and provide useful
information to investors because gross refining margin per barrel
is a helpful metric comparison to the industry refining margin
benchmarks shown in the Market Indicators Tables, as the industry
benchmarks do not include a charge for refinery operating expenses
and depreciation. Other companies in our industry may not calculate
gross refining margin and gross refining margin per barrel in the
same manner. Gross refining margin and gross refining margin per
barrel of throughput have their limitations as an analytical tool,
and you should not consider them in isolation or as substitutes for
analysis of our results as reported under GAAP.
|
|
(11) Represents
refinery operating expenses, including corporate-owned logistics
assets, excluding depreciation and amortization, divided by total
crude oil and feedstocks throughput.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12) We define heavy
crude oil as crude oil with American Petroleum Institute (API)
gravity less than 24 degrees. We define medium crude oil as crude
oil with API gravity between 24 and 35 degrees. We define light
crude oil as crude oil with API gravity higher than 35
degrees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(13) The total debt
to capitalization ratio is calculated by dividing total debt by the
sum of total debt and total equity. This ratio is a measurement
that management believes is useful to investors in analyzing our
leverage. Net debt and the net debt to capitalization ratio are
Non-GAAP measures. Net debt is calculated by subtracting cash and
cash equivalents from total debt. We believe these measurements are
also useful to investors since we have the ability to and may
decide to use a portion of our cash and cash equivalents to retire
or pay down our debt. Additionally, we have also presented the
total debt to capitalization and net debt to capitalization ratios
excluding the cumulative effects of special items on
equity.
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
|
|
|
2020
|
|
2019
|
|
|
(in
millions)
|
Total debt
|
$
|
4,092.8
|
|
|
$
|
2,064.9
|
|
Total
equity
|
2,889.7
|
|
|
3,585.5
|
|
Total
capitalization
|
$
|
6,982.5
|
|
|
$
|
5,650.4
|
|
|
|
|
|
Total debt
|
$
|
4,092.8
|
|
|
$
|
2,064.9
|
|
Total equity
excluding special items
|
3,136.3
|
|
|
3,675.8
|
|
Total capitalization
excluding special items
|
$
|
7,229.1
|
|
|
$
|
5,740.7
|
|
|
|
|
|
Total
equity
|
$
|
2,889.7
|
|
|
$
|
3,585.5
|
|
Special Items
(Note 4)
|
|
|
|
Add: Non-cash LCM inventory adjustment
|
1,103.0
|
|
|
401.6
|
|
Add: Gain on Torrance land sale
|
(76.9)
|
|
|
(76.9)
|
|
Add: Change in Tax Receivable Agreement liability
|
(278.8)
|
|
|
(290.4)
|
|
Add: Debt extinguishment costs
|
47.7
|
|
|
25.5
|
|
Add: Early railcar return expense
|
52.3
|
|
|
52.3
|
|
Add: Change in fair value of contingent consideration
|
(64.9)
|
|
|
—
|
|
Add: Gain on sale of hydrogen plants
|
(471.1)
|
|
|
—
|
|
Add: Severance costs
|
12.9
|
|
|
—
|
|
Less: Recomputed income taxes on special items
|
(97.8)
|
|
|
(42.0)
|
|
Add: Net tax expense on TCJA related special items
|
20.2
|
|
|
20.2
|
|
Net impact of
special items to equity
|
246.6
|
|
|
90.3
|
|
Total equity
excluding special items
|
$
|
3,136.3
|
|
|
$
|
3,675.8
|
|
|
|
|
|
|
|
|
Total debt
|
$
|
4,092.8
|
|
|
$
|
2,064.9
|
|
Less: Cash and cash equivalents
|
1,225.2
|
|
|
814.9
|
|
Net Debt
|
|
|
|
$
|
2,867.6
|
|
|
$
|
1,250.0
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio
|
59
|
%
|
|
37
|
%
|
Total debt to
capitalization ratio, excluding special items
|
57
|
%
|
|
36
|
%
|
Net debt to
capitalization ratio
|
50
|
%
|
|
26
|
%
|
Net debt to
capitalization ratio, excluding special items
|
48
|
%
|
|
25
|
%
|
(14) The Refining
segment includes capital expenditures of $1,176.2 million for the
acquisition of the Martinez refinery in the first quarter of
2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(15) On April 24,
2019, PBFX entered into a contribution agreement with PBF LLC (the
"TVPC Contribution Agreement"), pursuant to which PBF LLC
contributed to PBFX all of the issued and outstanding limited
liability company interests of TVP Holding Company LLC ("TVP
Holding") for total consideration of $200.0 million (the "TVPC
Acquisition"). Prior to the TVPC Acquisition, TVP Holding owned a
50% equity interest in Torrance Valley Pipeline Company LLC
("TVPC"). Subsequent to the closing of the TVPC Acquisition on May
31, 2019, PBFX owns 100% of the equity interest in TVPC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(16) Prior to the
TVPC Contribution Agreement, the Logistics segment included 100% of
the income from operations of TVPC, as TVPC was consolidated by
PBFX. PBFX recorded net income attributable to noncontrolling
interest for the 50% equity interest in TVPC held by PBF Holding.
PBF Holding (included in the Refining segment) recorded equity
income in investee related to its 50% noncontrolling ownership
interest in TVPC. For purposes of our Condensed Consolidated
Financial Statements, PBF Holding's equity income in investee and
PBFX's net income attributable to noncontrolling interests
eliminated in consolidation.
|
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SOURCE PBF Energy Inc.