PARSIPPANY, N.J., May 15,
2020 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today
reported first quarter 2020 loss from operations of $1,366.8 million as compared to income from
operations of $364.6 million for the
first quarter of 2019. Excluding special items, first quarter 2020
loss from operations was $134.0
million as compared to loss from operations of $141.4 million for the first quarter of 2019. PBF
Energy's financial results reflect the consolidation of PBF
Logistics LP (NYSE: PBFX), a master limited partnership of which
PBF indirectly owns the general partner and approximately 48% of
the limited partner interests as of quarter-end.
The company reported first quarter 2020 net loss of $1,062.5 million and net loss attributable to PBF
Energy Inc. of $1,065.9 million or
$(8.93) per share. This compares to
net income of $241.4 million, and net
income attributable to PBF Energy Inc. of $229.2 million or $1.89 per share for the first quarter 2019.
Special items included in the first quarter 2020 results, which
increased the net loss by a net, after-tax loss of $933.5 million, or $7.74 per share, consisted of a
lower-of-cost-or-market ("LCM") inventory adjustment, change in Tax
Receivable Agreement liability, debt extinguishment costs related
to the redemption of the 7.00% senior notes due 2023 (the "2023
Senior Notes") and change in the fair value of the earn-out
provision included in connection with the Martinez acquisition (the
"Contingent Consideration"). Adjusted fully-converted net loss for
the first quarter 2020, excluding special items, was $143.2 million, or $(1.19) per share on a fully-exchanged,
fully-diluted basis, as described below, compared to adjusted
fully-converted net loss of $143.0
million or $(1.18) per share,
for the first quarter 2019.
Tom Nimbley, PBF Energy's
Chairman and CEO, said, "2020 has presented unexpected and
unprecedented challenges and PBF has responded by taking several
significant actions to ensure we navigate the current market
successfully. Our employees have readily adjusted to new working
conditions and continue to provide essential services." Mr. Nimbley
continued, "We implemented aggressive cost reduction measures and
scaled back operations in response to the near-term, generational
decline in demand. We took additional steps to increase our capital
resources through the sale of hydrogen plants and a successful debt
offering, thereby ensuring we have the resources to manage our
business through the current and potential future downturns." Mr.
Nimbley concluded, "As more regions across the country are
beginning the process of returning to work, we are already seeing
an increase in product demand. We are at a delicate intersection on
this path and PBF will continue to run our operations in a safe,
reliable and environmentally responsible manner and we look forward
to a sustainable return to work."
Liquidity and Financial Position
As of May 1, 2020, after giving effect to the
successful $1 billion notes offering
in May, our liquidity was approximately $2
billion based on our estimated $805.0
million of cash, excluding cash held at PBF Logistics LP,
and $151.0 million of additional,
available borrowing capacity under our asset-backed revolving
credit facility. Assuming current commodity prices remain
relatively constant, we expect our liquidity to improve as working
capital continues to normalize in May and our Revolving Credit
Facility borrowing base increases.
On May 7, 2020, PBF announced that
its indirect subsidiary, PBF Holding Company LLC successfully
priced $1.0 billion of 9.25% senior
secured notes due 2025 in a private offering. The offering closed
on May 13, 2020.
Strategic Update and Outlook
The recent outbreak of
the COVID-19 pandemic and certain developments in the global oil
markets are negatively impacting worldwide economic and commercial
activity and financial markets, as well as global demand for
petroleum and petrochemical products. The COVID-19 pandemic and
related governmental responses have also resulted in significant
business and operational disruptions, including business closures,
supply chain disruptions, travel restrictions, stay-at-home orders
and limitations on the availability of workforces and has resulted
in significantly lower demand for refined petroleum products.
We are actively responding to the impacts from these matters on
our business. In late March and through early April 2020, we started reducing the amount of
crude oil processed at our refineries in response to the decreased
demand for our products and we temporarily idled various units at
certain of our refineries to optimize our production in light of
prevailing market conditions.
In March 2020, we announced
initial expense reduction efforts that should result in a reduction
in our 2020 operating expenses of approximately $125 million. We have subsequently identified
additional reductions and currently estimate an aggregate reduction
of approximately $140 million in our
2020 operating expenses budget. In addition, we are currently
operating our refineries at minimum rates, a throughput reduction
of approximately 30% versus our previous expectations. As the
market conditions develop and the demand outlook becomes clearer,
we will continue to adjust our operations, regionally and in
total, in response. We expect near-term throughput to
be in the 650,000 to 750,000 barrel per range for our refining
system.
In addition to the steps above with respect to our operations,
we are taking the following measures, some of which were previously
announced in March 2020:
- Increased precautions to keep our employees healthy and safe,
including social distancing, additional personal protective
equipment and enhanced facility cleanings. We have not had to
temporarily close any of our refineries due to a COVID-19
outbreak;
- Reduced 2020 planned capital expenditures by a total of more
than $350 million, an increase from
our originally announced $240 million
reduction. This is an estimated aggregate reduction of
approximately 50% to our previous 2020 budget. Early in the second
quarter, PBF completed its only major turnaround activity for 2020
at its Toledo refinery. We intend to satisfy all required safety,
environmental and regulatory capital commitments, while continuing
to explore further opportunities to minimize our near-term capital
expenditure requirements;
- Reduced corporate overhead expenses by over $20 million on an annual basis primarily through
salary reductions;
- Suspended PBF Energy's quarterly dividend of $0.30 per share, anticipated to preserve
approximately $35 million of cash
each quarter; and
- Evaluating various other liquidity and cash flow optimization
options.
Sale of Hydrogen Plants
On April 17, 2020, we closed on the sale of five
hydrogen plants to Air Products and Chemicals, Inc. for gross cash
proceeds of $530.0 million. We will
enter into off-take arrangements for hydrogen on terms in line with
similar arrangements in place throughout our refining system.
Martinez Refinery Acquisition
On February 1, 2020, PBF completed its previously
announced acquisition of the 157,000 barrel-per-day Martinez
refinery, and related logistics assets, from Equilon Enterprises
LLC d/b/a Shell Oil Products US. With the addition of
Martinez, PBF's total throughput capacity is now over 1 million
barrels per day and our combined Nelson Complexity increased to
12.8.
Adjusted Fully-Converted Results
Adjusted
fully-converted results assume the exchange of all PBF Energy
Company LLC Series A Units and dilutive securities into shares of
PBF Energy Inc. Class A common stock on a one-for-one basis,
resulting in the elimination of the noncontrolling interest and a
corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the
discussion during the management conference call, may include
references to Non-GAAP (Generally Accepted Accounting Principles)
measures including Adjusted Fully-Converted Net Income, Adjusted
Fully-Converted Net Income excluding special items, Adjusted
Fully-Converted Net Income per fully-exchanged, fully-diluted
share, Income from operations excluding special items, gross
refining margin, gross refining margin excluding special items,
gross refining margin per barrel of throughput, EBITDA (Earnings
before Interest, Income Taxes, Depreciation and Amortization),
EBITDA excluding special items and Adjusted EBITDA. PBF believes
that Non-GAAP financial measures provide useful information about
its operating performance and financial results. However, these
measures have important limitations as analytical tools and should
not be viewed in isolation or considered as alternatives for, or
superior to, comparable GAAP financial measures. PBF's Non-GAAP
financial measures may also differ from similarly named measures
used by other companies. See the accompanying tables and footnotes
in this release for additional information on the Non-GAAP measures
used in this release and reconciliations to the most directly
comparable GAAP measures.
Conference Call Information
PBF Energy's senior
management will host a conference call and webcast regarding
quarterly results and other business matters on Friday,
May 15, 2020, at 8:30 a.m. ET.
The call is being webcast and can be accessed at PBF Energy's
website, http://www.pbfenergy.com. The call can also be
accessed by dialing (866) 342-8591 or (203) 518-9713, conference
ID: PBFQ120. The audio replay will be available two hours
after the end of the call through May 29,
2020, by dialing (800) 839-3607 or (402) 220-2970.
Forward-Looking Statements
Statements in this press
release relating to future plans, results, performance,
expectations, achievements and the like are considered
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements involve known and unknown risks, uncertainties and other
factors, many of which may be beyond the company's control, that
may cause actual results to differ materially from any future
results, performance or achievements expressed or implied by the
forward-looking statements. Factors and uncertainties that may
cause actual results to differ include but are not limited to the
risks disclosed in the company's filings with the SEC, as well as
the risks disclosed in PBF Logistics LP's SEC filings and any
impact PBF Logistics LP may have on the company's credit rating,
cost of funds, employees, customer and vendors; risk relating to
the securities markets generally; risks associated with the recent
acquisition of the Martinez refinery, and related logistics assets;
the duration and severity of the COVID-19 pandemic and certain
developments in the global oil markets and their impact on the
global macroeconomic conditions; and the impact of adverse market
conditions affecting the company, unanticipated developments,
regulatory approvals, changes in laws and other events that
negatively impact the company. All forward-looking statements speak
only as of the date hereof. The company undertakes no obligation to
revise or update any forward-looking statements except as may be
required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is
one of the largest independent refiners in North America, operating, through its
subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New
Jersey and Ohio. Our
mission is to operate our facilities in a safe, reliable and
environmentally responsible manner, provide employees with a safe
and rewarding workplace, become a positive influence in the
communities where we do business, and provide superior returns to
our investors.
PBF Energy Inc. also currently indirectly owns the general
partner and approximately 48% of the limited partnership interest
of PBF Logistics LP (NYSE: PBFX).
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited, in
millions, except share and per share data)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2020
|
|
2019
|
Revenues
|
$
5,277.5
|
|
$
5,216.2
|
|
|
|
|
Cost and
expenses:
|
|
|
|
Cost of products and
other
|
5,963.3
|
|
4,209.2
|
Operating expenses
(excluding depreciation and amortization expense as
reflected
below)
|
531.7
|
|
479.0
|
Depreciation and
amortization expense
|
116.7
|
|
103.0
|
Cost of
sales
|
6,611.7
|
|
4,791.2
|
General and
administrative expenses (excluding depreciation and
amortization
expense as reflected
below)
|
82.5
|
|
57.6
|
Depreciation and
amortization expense
|
2.9
|
|
2.8
|
Change in fair value of
contingent consideration
|
(52.8)
|
|
-
|
Total cost and
expenses
|
6,644.3
|
|
4,851.6
|
|
|
|
|
Income (loss) from
operations
|
(1,366.8)
|
|
364.6
|
|
|
|
|
Other income
(expense):
|
|
|
|
Interest expense,
net
|
(49.2)
|
|
(39.5)
|
Change in Tax
Receivable Agreement liability
|
(11.6)
|
|
-
|
Change in fair value of
catalyst obligations
|
11.7
|
|
(3.1)
|
Debt extinguishment
costs
|
(22.2)
|
|
-
|
Other non-service
components of net periodic benefit cost
|
1.0
|
|
(0.1)
|
Income (loss)
before income taxes
|
(1,437.1)
|
|
321.9
|
Income tax
(benefit) expense
|
(374.6)
|
|
80.5
|
Net income
(loss)
|
(1,062.5)
|
|
241.4
|
Less: net income
attributable to noncontrolling interests
|
3.4
|
|
12.2
|
Net income (loss)
attributable to PBF Energy Inc. stockholders
|
$
(1,065.9)
|
|
$
229.2
|
|
|
|
|
Net income (loss)
available to Class A common stock per share:
|
|
|
|
Basic
|
$
(8.93)
|
|
$
1.91
|
Diluted
|
$
(8.93)
|
|
$
1.89
|
Weighted-average
shares outstanding-basic
|
119,380,210
|
|
119,880,915
|
Weighted-average
shares outstanding-diluted
|
119,380,210
|
|
122,175,744
|
|
|
|
|
Dividends per
common share
|
$
-
|
|
$
0.30
|
|
|
|
|
Adjusted
fully-converted net income (loss) and adjusted fully-converted
net
income (loss) per fully exchanged, fully diluted shares outstanding
(Note 1):
|
|
|
|
Adjusted
fully-converted net income (loss)
|
$
(1,076.7)
|
|
$
231.4
|
Adjusted
fully-converted net income (loss) per fully exchanged, fully
diluted share
|
$
(8.93)
|
|
$
1.89
|
Adjusted
fully-converted shares outstanding - diluted (Note 6)
|
120,589,008
|
|
122,175,744
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
(Unaudited, in
millions, except share and per share data)
|
|
|
|
|
|
RECONCILIATION OF
NET INCOME (LOSS) TO ADJUSTED FULLY-
CONVERTED NET INCOME (LOSS) AND ADJUSTED FULLY-CONVERTED NET
INCOME (LOSS) EXCLUDING SPECIAL ITEMS (Note 1)
|
|
Three Months
Ended
|
|
March
31,
|
|
2020
|
|
2019
|
Net income (loss)
attributable to PBF Energy Inc. stockholders
|
|
$
|
(1,065.9)
|
|
|
$
|
229.2
|
|
|
Less:
|
Income allocated to
participating securities
|
|
0.1
|
|
|
0.1
|
|
Income (loss)
available to PBF Energy Inc. stockholders - basic
|
|
(1,066.0)
|
|
|
229.1
|
|
|
Add:
|
Net income
(loss) attributable to noncontrolling interest (Note
2)
|
|
(14.6)
|
|
|
3.1
|
|
|
Less:
|
Income tax benefit
(expense) (Note 3)
|
|
3.9
|
|
|
(0.8)
|
|
Adjusted
fully-converted net income (loss)
|
|
$
|
(1,076.7)
|
|
|
$
|
231.4
|
|
|
Special Items (Note
4):
|
|
|
|
|
|
Add:
|
Non-cash LCM
inventory adjustment
|
|
1,285.6
|
|
|
(506.0)
|
|
|
Add:
|
Change in Tax
Receivable Agreement liability
|
|
11.6
|
|
|
—
|
|
|
Add:
|
Debt extinguishment
costs
|
|
22.2
|
|
|
—
|
|
|
Add:
|
Change in fair value
of contingent consideration
|
|
(52.8)
|
|
|
—
|
|
|
Less:
|
Recomputed income
taxes on special items (Note 3)
|
|
(333.1)
|
|
|
131.6
|
|
Adjusted
fully-converted net income (loss) excluding special
items
|
|
$
|
(143.2)
|
|
|
$
|
(143.0)
|
|
|
|
|
|
|
Weighted-average
shares outstanding of PBF Energy Inc.
|
|
119,380,210
|
|
|
119,880,915
|
|
Conversion of PBF LLC
Series A Units (Note 5)
|
|
1,208,798
|
|
|
1,206,325
|
|
Common stock
equivalents (Note 6)
|
|
—
|
|
|
1,088,504
|
|
Fully-converted
shares outstanding - diluted
|
|
120,589,008
|
|
|
122,175,744
|
|
|
|
|
|
|
Adjusted
fully-converted net income (loss) per fully exchanged, fully
diluted shares
outstanding (Note 6)
|
|
$
|
(8.93)
|
|
|
$
|
1.89
|
|
|
Adjusted
fully-converted net income (loss) excluding special items per
fully
exchanged, fully diluted shares outstanding (Note 4,
6)
|
|
$
|
(1.19)
|
|
|
$
|
(1.18)
|
|
|
|
|
|
|
|
Three Months
Ended
|
RECONCILIATION OF
INCOME (LOSS) FROM OPERATIONS TO INCOME
(LOSS) FROM OPERATIONS EXCLUDING SPECIAL ITEMS
|
|
March
31,
|
|
2020
|
|
2019
|
Income (loss) from
operations
|
|
$
|
(1,366.8)
|
|
|
$
|
364.6
|
|
|
Special Items (Note
4):
|
|
|
|
|
|
Add:
|
Non-cash LCM
inventory adjustment
|
|
1,285.6
|
|
|
(506.0)
|
|
|
Add:
|
Change in the fair
value of contingent consideration
|
|
(52.8)
|
|
|
—
|
|
Income (loss) from
operations excluding special items
|
|
$
|
(134.0)
|
|
|
$
|
(141.4)
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
EBITDA
RECONCILIATIONS (Note 7)
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
RECONCILIATION OF
NET INCOME (LOSS) TO EBITDA AND EBITDA
EXCLUDING SPECIAL ITEMS
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(1,062.5)
|
|
|
$
|
241.4
|
|
Add: Depreciation and
amortization expense
|
|
119.6
|
|
|
105.8
|
|
Add: Interest expense,
net
|
|
49.2
|
|
|
39.5
|
|
Add: Income tax
(benefit) expense
|
|
(374.6)
|
|
|
80.5
|
|
EBITDA
|
|
|
$
|
(1,268.3)
|
|
|
$
|
467.2
|
|
Special Items (Note
4):
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment
|
|
1,285.6
|
|
|
(506.0)
|
|
Add: Change in Tax
Receivable Agreement liability
|
|
11.6
|
|
|
—
|
|
Add: Debt
extinguishment costs
|
|
22.2
|
|
|
—
|
|
Add: Change in the
fair value of contingent consideration
|
|
(52.8)
|
|
|
—
|
|
EBITDA excluding
special items
|
|
$
|
(1.7)
|
|
|
$
|
(38.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
March
31,
|
RECONCILIATION OF
EBITDA TO ADJUSTED EBITDA
|
|
2020
|
|
2019
|
|
|
|
|
|
|
EBITDA
|
|
$
|
(1,268.3)
|
|
|
$
|
467.2
|
|
Add: Stock-based
compensation
|
|
9.6
|
|
|
8.0
|
|
Add: Net non-cash
change in fair value of catalyst obligations
|
|
(11.7)
|
|
|
3.1
|
|
Add: Net non-cash
change in fair value of contingent consideration (Note
4)
|
|
(52.8)
|
|
|
—
|
|
Add: Non-cash LCM
inventory adjustment (Note 4)
|
|
1,285.6
|
|
|
(506.0)
|
|
Add: Change in Tax
Receivable Agreement liability (Note 4)
|
|
11.6
|
|
|
—
|
|
Add: Debt
extinguishment costs (Note 4)
|
|
22.2
|
|
|
—
|
|
Adjusted
EBITDA
|
|
|
$
|
(3.8)
|
|
|
$
|
(27.7)
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
CONDENSED
CONSOLIDATED BALANCE SHEET DATA
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
|
2020
|
|
2019
|
Balance Sheet
Data:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
722.1
|
|
|
$
|
814.9
|
|
|
Inventories
|
986.5
|
|
|
2,122.2
|
|
|
Total
assets
|
9,134.1
|
|
|
9,132.4
|
|
|
Total debt
|
3,546.1
|
|
|
2,064.9
|
|
|
|
|
|
|
|
Total
equity
|
2,479.5
|
|
|
3,585.5
|
|
|
Total equity excluding
special items (Note 4, 13)
|
$
|
3,503.3
|
|
|
$
|
3,675.8
|
|
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio (Note 13)
|
59
|
%
|
|
37
|
%
|
|
Total debt to
capitalization ratio, excluding special items (Note 13)
|
50
|
%
|
|
36
|
%
|
|
Net debt to
capitalization ratio (Note 13)
|
53
|
%
|
|
26
|
%
|
|
Net debt to
capitalization ratio, excluding special items (Note 13)
|
45
|
%
|
|
25
|
%
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED
STATEMENT OF CASH FLOW DATA
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
2020
|
|
2019
|
Cash flows used in
operating activities
|
$
|
(235.8)
|
|
|
$
|
(149.9)
|
|
Cash flows used in
investing activities
|
(1,315.2)
|
|
|
(260.6)
|
|
Cash flows provided
by financing activities
|
1,458.2
|
|
|
231.5
|
|
Net decrease in cash
and cash equivalents
|
(92.8)
|
|
|
(179.0)
|
|
Cash and cash
equivalents, beginning of period
|
814.9
|
|
|
597.3
|
|
Cash and cash
equivalents, end of period
|
$
|
722.1
|
|
|
$
|
418.3
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
CONSOLIDATING
FINANCIAL INFORMATION (Note 8)
|
(Unaudited, in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2020
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
5,260.0
|
|
|
$
|
93.0
|
|
|
$
|
—
|
|
|
$
|
(75.5)
|
|
|
$
|
5,277.5
|
|
Depreciation and
amortization expense
|
105.4
|
|
|
11.3
|
|
|
2.9
|
|
|
—
|
|
|
119.6
|
|
Income (loss) from
operations
|
(1,386.4)
|
|
|
47.7
|
|
|
(28.1)
|
|
|
—
|
|
|
(1,366.8)
|
|
Interest expense,
net
|
0.8
|
|
|
12.8
|
|
|
35.6
|
|
|
—
|
|
|
49.2
|
|
Capital
expenditures (Note 14)
|
1,304.1
|
|
|
6.1
|
|
|
5.0
|
|
|
—
|
|
|
1,315.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2019
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$
|
5,208.7
|
|
|
$
|
78.8
|
|
|
$
|
—
|
|
|
$
|
(71.3)
|
|
|
$
|
5,216.2
|
|
Depreciation and
amortization expense
|
94.3
|
|
|
8.7
|
|
|
2.8
|
|
|
—
|
|
|
105.8
|
|
Income (loss) from
operations (Note 15,
16)
|
389.5
|
|
|
34.2
|
|
|
(54.4)
|
|
|
(4.7)
|
|
|
364.6
|
|
Interest expense,
net
|
0.5
|
|
|
12.1
|
|
|
26.9
|
|
|
—
|
|
|
39.5
|
|
Capital
expenditures
|
247.1
|
|
|
11.2
|
|
|
2.3
|
|
|
—
|
|
|
260.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at March
31, 2020
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Total
Assets
|
$
|
7,746.3
|
|
|
$
|
1,088.7
|
|
|
$
|
386.2
|
|
|
$
|
(87.1)
|
|
|
$
|
9,134.1
|
|
|
|
|
Balance at
December 31, 2019
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Total
Assets
|
$
|
8,154.8
|
|
|
$
|
973.0
|
|
|
$
|
52.7
|
|
|
$
|
(48.1)
|
|
|
$
|
9,132.4
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
MARKET INDICATORS
AND KEY OPERATING INFORMATION
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
Market Indicators
(dollars per barrel) (Note 9)
|
2020
|
|
2019
|
Dated Brent crude
oil
|
$
|
49.70
|
|
|
$
|
63.26
|
|
West Texas
Intermediate (WTI) crude oil
|
$
|
45.56
|
|
|
$
|
54.87
|
|
Light Louisiana Sweet
(LLS) crude oil
|
$
|
47.81
|
|
|
$
|
62.38
|
|
Alaska North Slope
(ANS) crude oil
|
$
|
51.07
|
|
|
$
|
64.39
|
|
Crack
Spreads:
|
|
|
|
Dated Brent (NYH)
2-1-1
|
$
|
9.96
|
|
|
$
|
9.85
|
|
WTI (Chicago)
4-3-1
|
$
|
7.37
|
|
|
$
|
12.33
|
|
LLS (Gulf Coast)
2-1-1
|
$
|
10.42
|
|
|
$
|
9.89
|
|
ANS (West Coast-LA)
4-3-1
|
$
|
13.36
|
|
|
$
|
13.54
|
|
ANS (West Coast-SF)
3-2-1
|
$
|
9.65
|
|
|
$
|
11.14
|
|
Crude Oil
Differentials:
|
|
|
|
Dated Brent (foreign)
less WTI
|
$
|
4.14
|
|
|
$
|
8.39
|
|
Dated Brent less Maya
(heavy, sour)
|
$
|
8.87
|
|
|
$
|
4.50
|
|
Dated Brent less WTS
(sour)
|
$
|
4.70
|
|
|
$
|
9.55
|
|
Dated Brent less ASCI
(sour)
|
$
|
4.29
|
|
|
$
|
2.35
|
|
WTI less WCS (heavy,
sour)
|
$
|
16.85
|
|
|
$
|
9.96
|
|
WTI less Bakken (light,
sweet)
|
$
|
3.46
|
|
|
$
|
(0.25)
|
|
WTI less Syncrude
(light, sweet)
|
$
|
1.80
|
|
|
$
|
(0.04)
|
|
WTI less LLS (light,
sweet)
|
$
|
(2.25)
|
|
|
$
|
(7.51)
|
|
WTI less ANS (light,
sweet)
|
$
|
(5.51)
|
|
|
$
|
(9.52)
|
|
Natural gas (dollars
per MMBTU)
|
$
|
1.87
|
|
|
$
|
2.87
|
|
|
Key Operating
Information
|
|
|
|
Production (barrels
per day ("bpd") in thousands)
|
867.0
|
|
|
737.7
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
852.9
|
|
|
743.1
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
77.6
|
|
|
66.9
|
|
Consolidated gross
margin per barrel of throughput
|
$
|
(17.19)
|
|
|
$
|
6.35
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
|
6.60
|
|
|
$
|
6.38
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
6.54
|
|
|
$
|
6.78
|
|
Crude and
feedstocks (% of total throughput) (Note 12)
|
|
|
|
Heavy
|
44
|
%
|
|
32
|
%
|
Medium
|
23
|
%
|
|
32
|
%
|
Light
|
19
|
%
|
|
24
|
%
|
Other feedstocks and
blends
|
14
|
%
|
|
12
|
%
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput)
|
|
|
|
Gasoline and gasoline
blendstocks
|
51
|
%
|
|
46
|
%
|
Distillates and
distillate blendstocks
|
32
|
%
|
|
32
|
%
|
Lubes
|
1
|
%
|
|
1
|
%
|
Chemicals
|
1
|
%
|
|
2
|
%
|
Other
|
17
|
%
|
|
18
|
%
|
Total
yield
|
102
|
%
|
|
99
|
%
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
SUPPLEMENTAL
OPERATING INFORMATION
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2020
|
|
2019
|
Supplemental
Operating Information - East Coast (Delaware City and
Paulsboro)
|
|
|
|
Production (bpd in
thousands)
|
327.8
|
|
|
299.7
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
329.3
|
|
|
305.0
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
30.0
|
|
|
27.5
|
|
Gross margin per
barrel of throughput
|
$
|
(13.61)
|
|
|
$
|
1.16
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
|
6.92
|
|
|
$
|
3.35
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
5.71
|
|
|
$
|
6.37
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
Heavy
|
27
|
%
|
|
25
|
%
|
Medium
|
27
|
%
|
|
52
|
%
|
Light
|
28
|
%
|
|
4
|
%
|
Other feedstocks and
blends
|
18
|
%
|
|
19
|
%
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
Gasoline and gasoline
blendstocks
|
46
|
%
|
|
43
|
%
|
Distillates and
distillate blendstocks
|
36
|
%
|
|
31
|
%
|
Lubes
|
2
|
%
|
|
3
|
%
|
Chemicals
|
1
|
%
|
|
1
|
%
|
Other
|
15
|
%
|
|
20
|
%
|
Total
yield
|
100
|
%
|
|
98
|
%
|
|
|
|
|
Supplemental
Operating Information - Mid-Continent (Toledo)
|
|
|
|
Production (bpd in
thousands)
|
91.0
|
|
|
150.2
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
90.1
|
|
|
148.0
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
8.2
|
|
|
13.3
|
|
Gross margin per
barrel of throughput
|
$
|
(44.23)
|
|
|
$
|
15.22
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
|
1.16
|
|
|
$
|
12.28
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
8.38
|
|
|
$
|
5.55
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
Medium
|
39
|
%
|
|
29
|
%
|
Light
|
59
|
%
|
|
70
|
%
|
Other feedstocks and
blends
|
2
|
%
|
|
1
|
%
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
Gasoline and gasoline
blendstocks
|
45
|
%
|
|
53
|
%
|
Distillates and
distillate blendstocks
|
30
|
%
|
|
36
|
%
|
Chemicals
|
2
|
%
|
|
6
|
%
|
Other
|
24
|
%
|
|
6
|
%
|
Total
yield
|
101
|
%
|
|
101
|
%
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
SUPPLEMENTAL
OPERATING INFORMATION
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2020
|
|
2019
|
Supplemental
Operating Information - Gulf Coast (Chalmette)
|
|
|
|
Production (bpd in
thousands)
|
179.4
|
|
|
165.0
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
174.5
|
|
|
164.6
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
15.9
|
|
|
14.8
|
|
Gross margin per
barrel of throughput
|
$
|
(9.93)
|
|
|
$
|
4.48
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
|
8.07
|
|
|
$
|
3.33
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
4.67
|
|
|
$
|
5.89
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
Heavy
|
41
|
%
|
|
34
|
%
|
Medium
|
30
|
%
|
|
16
|
%
|
Light
|
13
|
%
|
|
37
|
%
|
Other feedstocks and
blends
|
16
|
%
|
|
13
|
%
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
Gasoline and gasoline
blendstocks
|
45
|
%
|
|
40
|
%
|
Distillates and
distillate blendstocks
|
33
|
%
|
|
35
|
%
|
Chemicals
|
2
|
%
|
|
2
|
%
|
Other
|
23
|
%
|
|
23
|
%
|
Total
yield
|
103
|
%
|
|
100
|
%
|
|
|
|
|
Supplemental
Operating Information - West Coast (Torrance and
Martinez)
|
|
|
|
Production (bpd in
thousands)
|
268.8
|
|
|
122.8
|
|
Crude oil and
feedstocks throughput (bpd in thousands)
|
259.0
|
|
|
125.5
|
|
Total crude oil and
feedstocks throughput (millions of barrels)
|
23.5
|
|
|
11.3
|
|
Gross margin per
barrel of throughput
|
$
|
(19.43)
|
|
|
$
|
7.42
|
|
Gross refining
margin, excluding special items, per barrel of throughput (Note 4,
Note 10)
|
$
|
7.09
|
|
|
$
|
10.76
|
|
Refinery operating
expense, per barrel of throughput (Note 11)
|
$
|
8.21
|
|
|
$
|
10.40
|
|
Crude and feedstocks
(% of total throughput) (Note 12):
|
|
|
|
Heavy
|
81
|
%
|
|
82
|
%
|
Medium
|
7
|
%
|
|
8
|
%
|
Other feedstocks and
blends
|
12
|
%
|
|
10
|
%
|
Total
throughput
|
100
|
%
|
|
100
|
%
|
Yield (% of total
throughput):
|
|
|
|
Gasoline and gasoline
blendstocks
|
62
|
%
|
|
51
|
%
|
Distillates and
distillate blendstocks
|
27
|
%
|
|
24
|
%
|
Other
|
15
|
%
|
|
23
|
%
|
Total
yield
|
104
|
%
|
|
98
|
%
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
GROSS REFINING
MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note
10)
|
(Unaudited, in
millions, except per barrel amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
March 31,
2020
|
|
March 31,
2019
|
RECONCILIATION OF
CONSOLIDATED GROSS
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
|
$
|
5,277.5
|
|
|
$
|
68.00
|
|
|
$
|
5,216.2
|
|
|
$
|
77.99
|
|
Less: Cost of
sales
|
6,611.7
|
|
|
85.19
|
|
|
4,791.2
|
|
|
71.64
|
|
Consolidated gross
margin
|
$
|
(1,334.2)
|
|
|
$
|
(17.19)
|
|
|
$
|
425.0
|
|
|
$
|
6.35
|
|
Reconciliation of
consolidated gross margin to gross
refining margin:
|
|
|
|
|
|
|
|
Consolidated gross
margin
|
$
|
(1,334.2)
|
|
|
$
|
(17.19)
|
|
|
$
|
425.0
|
|
|
$
|
6.35
|
|
|
Add: PBFX operating
expense
|
29.6
|
|
|
0.38
|
|
|
29.9
|
|
|
0.45
|
|
|
Add: PBFX
depreciation expense
|
11.3
|
|
|
0.15
|
|
|
8.7
|
|
|
0.13
|
|
|
Less: Revenues of
PBFX
|
(93.0)
|
|
|
(1.20)
|
|
|
(78.8)
|
|
|
(1.18)
|
|
|
Add: Refinery
operating expense
|
507.5
|
|
|
6.54
|
|
|
453.4
|
|
|
6.78
|
|
|
Add: Refinery
depreciation expense
|
105.4
|
|
|
1.36
|
|
|
94.3
|
|
|
1.41
|
|
Gross refining
margin
|
$
|
(773.4)
|
|
|
$
|
(9.96)
|
|
|
$
|
932.5
|
|
|
$
|
13.94
|
|
Special
Items (Note 4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM
inventory adjustment
|
1,285.6
|
|
|
16.56
|
|
|
(506.0)
|
|
|
(7.56)
|
|
Gross refining
margin excluding special items
|
$
|
512.2
|
|
|
$
|
6.60
|
|
|
$
|
426.5
|
|
|
$
|
6.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF ENERGY INC.
AND SUBSIDIARIES
|
EARNINGS RELEASE
TABLES
|
FOOTNOTES TO
EARNINGS RELEASE TABLES
|
|
(1) Adjusted
fully-converted information is presented in this table as
management believes that these Non-GAAP measures, when presented in
conjunction with comparable GAAP measures, are useful to investors
to compare our results across the periods presented and facilitates
an understanding of our operating results. We also use these
measures to evaluate our operating performance. These measures
should not be considered a substitute for, or superior to, measures
of financial performance prepared in accordance with GAAP. The
differences between adjusted fully-converted and GAAP results are
explained in footnotes 2 through 6.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Represents the
elimination of the noncontrolling interest associated with the
ownership by the members of PBF Energy Company LLC ("PBF LLC")
other than PBF Energy Inc., as if such members had fully exchanged
their PBF LLC Series A Units for shares of PBF Energy's Class A
common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) Represents an
adjustment to reflect PBF Energy's estimated annualized statutory
corporate tax rate of approximately 26.3% and 26.0% for the 2020
and 2019 periods, respectively, applied to net income (loss)
attributable to noncontrolling interest for all periods presented.
The adjustment assumes the full exchange of existing PBF LLC Series
A Units as described in footnote 2.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) The Non-GAAP
measures presented include adjusted fully-converted net income
(loss) excluding special items, income (loss) from operations
excluding special items, EBITDA excluding special items and gross
refining margin excluding special items. Special items for the
periods presented relate to LCM inventory adjustments, changes in
the Tax Receivable Agreement liability, debt extinguishment costs
and change in the fair value of contingent consideration, all as
discussed further below. Additionally, the cumulative effects of
all current and prior period special items on equity are shown in
footnote 13.
Although we believe
that Non-GAAP financial measures excluding the impact of special
items provide useful supplemental information to investors
regarding the results and performance of our business and allow for
useful period-over-period comparisons, such Non-GAAP measures
should only be considered as a supplement to, and not as a
substitute for, or superior to, the financial measures prepared in
accordance with GAAP.
Special
Items:
LCM inventory
adjustment - LCM is a GAAP requirement related to
inventory valuation that mandates inventory to be stated at the
lower of cost or market. Our inventories are stated at the lower of
cost or market. Cost is determined using last-in, first-out
("LIFO") inventory valuation methodology, in which the most
recently incurred costs are charged to cost of sales and
inventories are valued at base layer acquisition costs. Market is
determined based on an assessment of the current estimated
replacement cost and net realizable selling price of the inventory.
In periods where the market price of our inventory declines
substantially, cost values of inventory may exceed market values.
In such instances, we record an adjustment to write down the value
of inventory to market value in accordance with GAAP. In subsequent
periods, the value of inventory is reassessed and an LCM inventory
adjustment is recorded to reflect the net change in the LCM
inventory reserve between the prior period and the current
period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
includes the LCM inventory reserve as of each date presented (in
millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
January 1,
|
|
|
|
$
|
401.6
|
|
|
$
|
651.8
|
|
March 31,
|
|
|
|
1,687.2
|
|
|
145.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
includes the corresponding impact of changes in the LCM inventory
reserve on income (loss) from operations and net income (loss) for
the periods presented (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
2019
|
Net LCM inventory
adjustment (charge) benefit in income (loss) from
operations
|
|
$
|
(1,285.6)
|
|
|
$
|
506.0
|
|
Net LCM inventory
adjustment (charge) benefit in net income (loss)
|
|
(947.5)
|
|
|
374.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
Extinguishment Costs - During the three months ended
March 31, 2020, we recorded pre-tax debt extinguishment costs
of $22.2 million related to the redemption of the 2023 Senior
Notes. These nonrecurring charges increased net loss by $16.4
million for the three months ended March 31, 2020. There were
no such costs in the three months ended March 31,
2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Tax
Receivable Agreement liability - During the three months ended
March 31, 2020 we recorded a change in the Tax Receivable Agreement
liability that increased loss before income taxes and net loss by
$11.6 million and $8.5 million, respectively. The changes in the
Tax Receivable Agreement liability reflect charges or benefits
attributable to changes in our obligation under the Tax Receivable
Agreement due to factors out of our control, such as changes in tax
rates. There was no change in the Tax Receivable Agreement
liability during the three months ended March 31, 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair
value of Contingent Consideration - During the three months
ended March 31, 2020 we recorded a change in the fair value of
the contingent consideration primarily related to the change in our
estimated earn-out liability associated with the Martinez
Acquisition, which offset loss before income taxes and net loss by
$52.8 million and $38.9 million, respectively.
|
|
(5) Represents an
adjustment to weighted-average diluted shares outstanding to assume
the full exchange of existing PBF LLC Series A Units as described
in footnote 2 above.
|
|
(6) Represents
weighted-average diluted shares outstanding assuming the conversion
of all common stock equivalents, including options and warrants for
PBF LLC Series A Units and performance share units and options for
shares of PBF Energy Class A common stock as calculated under the
treasury stock method (to the extent the impact of such exchange
would not be anti-dilutive) for the three months ended March 31,
2020 and 2019, respectively. Common stock equivalents exclude the
effects of performance share units and options and warrants to
purchase 11,388,905 and 5,111,617 shares of PBF Energy Class A
common stock and PBF LLC Series A Units because they are
anti-dilutive for the three months ended March 31, 2020 and 2019,
respectively. For periods showing a net loss, all common stock
equivalents and unvested restricted stock are considered
anti-dilutive.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7) EBITDA (Earnings
before Interest, Income Taxes, Depreciation and Amortization) and
Adjusted EBITDA are supplemental measures of performance that are
not required by, or presented in accordance with GAAP. Adjusted
EBITDA is defined as EBITDA before adjustments for items such as
stock-based compensation expense, the non-cash change in the fair
value of catalyst obligations, the write down of inventory to the
LCM, changes in the liability for Tax Receivable Agreement due to
factors out of our control, such as changes in tax rates, debt
extinguishment costs related to refinancing activities, and certain
other non-cash items. We use these Non-GAAP financial measures as a
supplement to our GAAP results in order to provide additional
metrics on factors and trends affecting our business. EBITDA and
Adjusted EBITDA are measures of operating performance that are not
defined by GAAP and should not be considered substitutes for net
income as determined in accordance with GAAP. In addition, because
EBITDA and Adjusted EBITDA are not calculated in the same manner by
all companies, they are not necessarily comparable to other
similarly titled measures used by other companies. EBITDA and
Adjusted EBITDA have their limitations as an analytical tool, and
you should not consider them in isolation or as substitutes for
analysis of our results as reported under GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8) We operate in two
reportable segments: Refining and Logistics. Our operations that
are not included in the Refining and Logistics segments are
included in Corporate. As of March 31, 2020, the Refining segment
includes the operations of our oil refineries and related
facilities in Delaware City, Delaware, Paulsboro, New Jersey,
Toledo, Ohio, Chalmette, Louisiana, Torrance, California and
Martinez, California. The Logistics segment includes the operations
of PBF Logistics LP ("PBFX"), a growth-oriented master limited
partnership which owns or leases, operates, develops and acquires
crude oil and refined petroleum products terminals, pipelines,
storage facilities and similar logistics assets. PBFX's assets
primarily consist of rail and truck terminals and unloading racks,
storage facilities and pipelines, a substantial portion of which
were acquired from or contributed by PBF LLC and are located at, or
nearby, our refineries. PBFX provides various rail, truck and
marine terminaling services, pipeline transportation services and
storage services to PBF Holding and/or its subsidiaries and third
party customers through fee-based commercial agreements.
PBFX currently does not generate significant third party revenue
and intersegment related-party revenues are eliminated in
consolidation. From a PBF Energy perspective, our chief operating
decision maker evaluates the Logistics segment as a whole without
regard to any of PBFX's individual operating segments.
|
|
(9) As reported by
Platts.
|
|
(10)
Gross refining margin and gross refining margin per barrel of
throughput are Non-GAAP measures because they exclude refinery
operating expenses, depreciation and amortization and gross margin
of PBFX. Gross refining margin per barrel is gross refining margin,
divided by total crude and feedstocks throughput. We believe they
are important measures of operating performance and provide useful
information to investors because gross refining margin per barrel
is a helpful metric comparison to the industry refining margin
benchmarks shown in the Market Indicators Tables, as the industry
benchmarks do not include a charge for refinery operating expenses
and depreciation. Other companies in our industry may not calculate
gross refining margin and gross refining margin per barrel in the
same manner. Gross refining margin and gross refining margin per
barrel of throughput have their limitations as an analytical tool,
and you should not consider them in isolation or as substitutes for
analysis of our results as reported under GAAP.
|
|
(11) Represents
refinery operating expenses, including corporate-owned logistics
assets, excluding depreciation and amortization, divided by total
crude oil and feedstocks throughput.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12) We define heavy
crude oil as crude oil with American Petroleum Institute (API)
gravity less than 24 degrees. We define medium crude oil as crude
oil with API gravity between 24 and 35 degrees. We define light
crude oil as crude oil with API gravity higher than 35
degrees.
|
(13) The total debt
to capitalization ratio is calculated by dividing total debt by the
sum of total debt and total equity. This ratio is a measurement
that management believes is useful to investors in analyzing our
leverage. Net debt and the net debt to capitalization ratio are
Non-GAAP measures. Net debt is calculated by subtracting cash and
cash equivalents from total debt. We believe these measurements are
also useful to investors since we have the ability to and may
decide to use a portion of our cash and cash equivalents to retire
or pay down our debt. Additionally, we have also presented the
total debt to capitalization and net debt to capitalization ratios
excluding the cumulative effects of special items on
equity.
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
|
|
|
2020
|
|
2019
|
|
|
(in
millions)
|
Total debt
|
$
|
3,546.1
|
|
|
$
|
2,064.9
|
|
Total
equity
|
2,479.5
|
|
|
3,585.5
|
|
Total
capitalization
|
$
|
6,025.6
|
|
|
$
|
5,650.4
|
|
|
|
|
|
Total debt
|
$
|
3,546.1
|
|
|
$
|
2,064.9
|
|
Total equity
excluding special items
|
3,503.3
|
|
|
3,675.8
|
|
Total capitalization
excluding special items
|
$
|
7,049.4
|
|
|
$
|
5,740.7
|
|
|
|
|
|
Total
equity
|
$
|
2,479.5
|
|
|
$
|
3,585.5
|
|
Special Items
(Note 4)
|
|
|
|
Add: Non-cash LCM inventory adjustment
|
1,687.2
|
|
|
401.6
|
|
Add: Gain on Torrance land sale
|
(76.9)
|
|
|
(76.9)
|
|
Add: Change in Tax Receivable Agreement liability
|
(278.8)
|
|
|
(290.4)
|
|
Add: Debt extinguishment costs
|
47.7
|
|
|
25.5
|
|
Add: Early railcar return expense
|
52.3
|
|
|
52.3
|
|
Add: Change in fair value of contingent consideration
|
(52.8)
|
|
|
—
|
|
Less: Recomputed income taxes on special items
|
(375.1)
|
|
|
(42.0)
|
|
Add: Net tax expense on TCJA related special items
|
20.2
|
|
|
20.2
|
|
Net impact of
special items to equity
|
1,023.8
|
|
|
90.3
|
|
Total equity
excluding special items
|
$
|
3,503.3
|
|
|
$
|
3,675.8
|
|
|
|
|
|
|
|
|
Total debt
|
$
|
3,546.1
|
|
|
$
|
2,064.9
|
|
Less: Cash and cash equivalents
|
722.1
|
|
|
814.9
|
|
Net Debt
|
|
|
|
$
|
2,824.0
|
|
|
$
|
1,250.0
|
|
|
|
|
|
|
|
|
Total debt to
capitalization ratio
|
59
|
%
|
|
37
|
%
|
Total debt to
capitalization ratio, excluding special items
|
50
|
%
|
|
36
|
%
|
Net debt to
capitalization ratio
|
53
|
%
|
|
26
|
%
|
Net debt to
capitalization ratio, excluding special items
|
45
|
%
|
|
25
|
%
|
|
(14) The Refining
segment includes capital expenditures of $1,176.2 million for the
acquisition of the Martinez refinery in the first quarter of
2020.
|
|
(15) On April 24,
2019, PBFX entered into a contribution agreement with PBF LLC (the
"TVPC Contribution Agreement"), pursuant to which PBF LLC
contributed to PBFX all of the issued and outstanding limited
liability company interests of TVP Holding Company LLC ("TVP
Holding") for total consideration of $200.0 million (the "TVPC
Acquisition"). Prior to the TVPC Acquisition, TVP Holding owned a
50% equity interest in Torrance Valley Pipeline Company LLC
("TVPC"). Subsequent to the closing of the TVPC Acquisition on May
31, 2019, PBFX owns 100% of the equity interest in TVPC.
|
|
(16) Prior to the
TVPC Contribution Agreement, the Logistics segment included 100% of
the income from operations of TVPC, as TVPC was consolidated by
PBFX. PBFX recorded net income attributable to noncontrolling
interest for the 50% equity interest in TVPC held by PBF Holding.
PBF Holding (included in the Refining segment) recorded equity
income in investee related to its 50% noncontrolling ownership
interest in TVPC. For purposes of our Condensed Consolidated
Financial Statements, PBF Holding's equity income in investee and
PBFX's net income attributable to noncontrolling interests
eliminated in consolidation.
|
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SOURCE PBF Energy Inc.