PARSIPPANY, N.J.--(BUSINESS WIRE)--PBF Energy Inc. (NYSE:PBF) today reported second quarter 2014 Operating Income of $87.9 million versus Operating Income of $133.0 million for the second quarter of 2013. Adjusted Pro Forma Net Income for the second quarter 2014 was $34.2 million, or $0.35 per share on a fully exchanged, fully diluted basis, as described below, compared to Adjusted Pro Forma Net Income of $71.5 million, or $0.73 per share, for the second quarter 2013. Net Income attributable to PBF Energy Inc. for the quarter was $21.0 million. PBF Energy's financial results reflect the consolidation of the financial results of PBF Logistics LP (NYSE:PBFX), a master limited partnership of which PBF Energy indirectly owns the general partner and approximately 50.2% of the limited partnership interests.
Embedded in our reported earnings is a pre-tax LIFO ("Last In, First Out") charge of approximately $46.2 million, or $0.28 per share on an Adjusted Pro Forma basis, reflecting the rising commodity price environment during the quarter.
Throughput for the quarter averaged approximately 470,400 barrels per day, which was in-line with total guidance for the quarter. Throughput on the East Coast averaged approximately 323,800 barrels per day and throughput in the Mid-continent averaged approximately 146,600 barrels per day. Throughput in Toledo was slightly lower than expected due to an unplanned shutdown of the FCC in late June.
Tom Nimbley, PBF Energy's CEO, said, “This is PBF's third successive quarter of positive results, including a positive first six months for the East Coast. We continue to enhance our feedstock sourcing flexibility and procure the most economic barrels for processing at our facilities.” Mr. Nimbley continued, “Operations were relatively stable with only the issue at the Toledo FCC in June. The big differences in our results for this quarter versus the first quarter of 2014 were the narrower crude oil differentials and higher flat prices for feedstocks experienced in the second quarter. The narrower differentials resulted in higher or more expensive landed costs for our crude oils across all our refineries and the higher flat price environment negatively impacted the margins on our low-value products.”
During the second quarter 2014, the company discharged approximately 116,600 barrels per day of rail-delivered crudes through its East Coast system, of which 41,400 barrels per day were heavy crude oil. Economics for North American barrels sourced by rail versus waterborne barrels impacted deliveries as did the scheduling of deliveries to the light crude unloading rack ("loop track") at Delaware City.
Commenting on rail operations, Mr. Nimbley said, “We are pleased to announce that both our light and heavy crude by rail expansion projects are near, or at, completion. In fact, the new heavy unloading rack was commissioned this week and discharged approximately 25,000 barrels of heavy oil. The expansion of the loop track capacity is expected to be complete next week. Once the projects are complete, the existing rail capacity of approximately 145,000 barrels per day is expected to increase to a total of approximately 210,000 barrels per day and rail-delivered quantities of heavy and light crudes are expected to increase. The completion of these projects will enable us to pursue cost-advantaged North American crude oil in greater volumes.”
Mr. Nimbley concluded, “We successfully launched our logistics MLP in May and the offering provided additional capital to strengthen the balance sheet of PBF Energy. With the launch of the MLP and a stronger balance sheet, PBF Energy is now poised to transition from the formation phase to the growth phase of its life cycle. Moving into the third quarter, the market is challenging. We are positioning our refineries to benefit from any opportunities the market may provide and we continue to pursue opportunities to grow the business.”
PBF Energy Inc. Declares Dividend
The company announced today that it will pay a quarterly dividend of $0.30 per share of Class A common stock on August 27, 2014, to holders of record as of August 11, 2014.
Adjusted Pro Forma Results
Adjusted Pro Forma 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 Pro Forma Net Income, Adjusted Pro Forma Net Income per fully exchanged, fully diluted share, gross refining margin, gross refining margin per barrel of throughput, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Adjusted EBITDA. PBF Energy Inc. 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 Energy Inc.'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 second quarter results and other business matters on Friday, August 1, 2014, 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 heard by dialing (800) 862-9098 or (785) 424-1051, conference ID: PBFQ214. The audio replay will be available two hours after the end of the call through August 13, 2014, by dialing (800) 677-7085 or (402) 220-0665.
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, customers and vendors; risks relating to the securities markets generally; 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 Delaware City, Delaware, Paulsboro, New Jersey and Toledo, Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally sensitive 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 indirectly owns the general partner and approximately 50.2% 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 thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Revenues | $ | 5,301,709 | $ | 4,678,293 | $ | 10,048,152 | $ | 9,476,141 | ||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of sales, excluding depreciation | 4,935,456 | 4,295,979 | 9,083,140 | 8,731,081 | ||||||||||||
| Operating expenses, excluding depreciation | 210,722 | 202,583 | 479,621 | 408,599 | ||||||||||||
| General and administrative expenses | 33,013 | 19,141 | 69,637 | 49,235 | ||||||||||||
| Loss (gain) on sale of assets | 6 | — | (180 | ) | — | |||||||||||
| Depreciation and amortization expense | 34,662 | 27,563 | 67,877 | 54,093 | ||||||||||||
| 5,213,859 | 4,545,266 | 9,700,095 | 9,243,008 | |||||||||||||
| Income from operations | 87,850 | 133,027 | 348,057 | 233,133 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Change in fair value of catalyst lease | (2,338 | ) | 6,820 | (4,339 | ) | 5,481 | ||||||||||
| Interest expense, net | (26,202 | ) | (21,708 | ) | (51,457 | ) | (43,319 | ) | ||||||||
| Income before income taxes | 59,310 | 118,139 | 292,261 | 195,295 | ||||||||||||
| Income tax expense | 13,474 | 10,969 | 63,153 | 18,413 | ||||||||||||
| Net income | 45,836 | 107,170 | 229,108 | 176,882 | ||||||||||||
| Less: net income attributable to noncontrolling interests | 24,877 | 90,344 | 130,704 | 148,649 | ||||||||||||
| Net income attributable to PBF Energy Inc. | $ | 20,959 | $ | 16,826 | $ | 98,404 | $ | 28,233 | ||||||||
| Net income available to Class A common stock per share: | ||||||||||||||||
| Basic | $ | 0.29 | $ | 0.62 | $ | 1.55 | $ | 1.12 | ||||||||
| Diluted | $ | 0.29 | $ | 0.61 | $ | 1.54 | $ | 1.08 | ||||||||
| Weighted-average shares outstanding-basic | 72,439,760 | 26,944,055 | 63,354,285 | 25,276,137 | ||||||||||||
| Weighted-average shares outstanding-diluted | 73,007,156 | 27,706,696 | 63,897,712 | 26,110,976 | ||||||||||||
| Dividends per share | $ | 0.30 | $ | 0.30 | $ | 0.60 | $ | 0.60 | ||||||||
| Adjusted pro forma net income and adjusted pro | ||||||||||||||||
| forma net income per fully exchanged, fully | ||||||||||||||||
| diluted shares outstanding (Note 1): | ||||||||||||||||
| Adjusted pro forma net income | $ | 34,223 | $ | 71,484 | $ | 174,952 | $ | 118,166 | ||||||||
| Adjusted pro forma net income per fully exchanged, fully diluted share | $ | 0.35 | $ | 0.73 | $ | 1.80 | $ | 1.21 | ||||||||
| Pro forma shares outstanding - diluted | 97,451,799 | 97,353.701 | 97,423,088 | 97,425,899 | ||||||||||||
| See Footnotes to Earnings Release Tables | ||||||||||||||||
| PBF ENERGY INC. AND SUBSIDIARIES | ||||||||
| EARNINGS RELEASE TABLES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | ||||||||
|
(Unaudited, in thousands) |
||||||||
| June 30, | December 31, | |||||||
| 2014 | 2013 | |||||||
|
|
||||||||
| Cash, cash equivalents and marketable securities | $ | 617,540 | $ | 76,970 | ||||
| Inventories | $ | 1,711,851 | $ | 1,445,517 | ||||
| Total assets | $ | 5,681,840 | $ | 4,413,808 | ||||
| Total debt | $ | 1,045,646 | $ | 747,576 | ||||
| Total equity | $ | 2,063,974 | $ | 1,715,256 | ||||
| Net debt to capitalization ratio | 17 | % | 28 | % | ||||
| Total debt to capitalization ratio | 34 | % | 30 | % | ||||
| SUMMARIZED STATEMENT OF CASH FLOW DATA | ||||||||
| (Unaudited, in thousands) | ||||||||
|
Six Months Ended June 30, |
||||||||
| 2014 | 2013 | |||||||
| Cash flows provided by (used in) operations | $ | 166,057 | $ | (40,201 | ) | |||
| Cash flows used in investing activities | (435,139 | ) | (112,724 | ) | ||||
| Cash flows provided by (used in) financing activities | 509,656 | (63,729 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 240,574 | (216,654 | ) | |||||
| Cash and cash equivalents, beginning of period | 76,970 | 285,884 | ||||||
| Cash and cash equivalents, end of period | $ | 317,544 | $ | 69,230 | ||||
| Marketable securities | 299,996 | — | ||||||
| Net cash, cash equivalents and marketable securities | $ | 617,540 | $ | 69,230 | ||||
| See Footnotes to Earnings Release Tables | ||||||||
| PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||||
| EARNINGS RELEASE TABLES | ||||||||||||||||||
| CONSOLIDATING FINANCIAL INFORMATION (Note 2) | ||||||||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||||
| Three Months Ended June 30, 2014 | ||||||||||||||||||
| Refining | Logistics | Corporate | Eliminations |
Consolidated |
||||||||||||||
| Revenues | $ | 5,301,709 | $ | 7,782 | $ | — | $ | (7,782 | ) | $ | 5,301,709 | |||||||
| Depreciation and amortization | 31,036 | 284 | 3,342 | — | 34,662 | |||||||||||||
| Income (loss) from operations | 118,913 | 4,374 | (35,437 | ) | — | 87,850 | ||||||||||||
| Interest expense, net | 7,615 | 360 | 18,227 | — | 26,202 | |||||||||||||
| Capital expenditures | $ | 78,877 | $ | 2,712 | $ | 887 | $ | — | $ | 82,476 | ||||||||
| Three Months Ended June 30, 2013 | ||||||||||||||||||
| Refining | Logistics | Corporate | Eliminations |
Consolidated |
||||||||||||||
| Revenues | $ | 4,678,293 | $ | — | $ | — | $ | — | $ | 4,678,293 | ||||||||
| Depreciation and amortization | 23,961 | 286 | 3,316 | — | 27,563 | |||||||||||||
| Income (loss) from operations | 157,794 | (2,310 | ) | (22,457 | ) | — | 133,027 | |||||||||||
| Interest expense, net | 3,561 | — | 18,147 | — | 21,708 | |||||||||||||
| Capital expenditures | $ | 34,700 | $ | 4,261 | $ | 14,610 | $ | — | $ | 53,571 | ||||||||
| Six Months Ended June 30, 2014 | ||||||||||||||||||
| Refining | Logistics | Corporate | Eliminations |
Consolidated |
||||||||||||||
| Revenues | $ | 10,048,152 | $ | 7,782 | $ | — | $ | (7,782 | ) | $ | 10,048,152 | |||||||
| Depreciation and amortization | 60,480 | 575 | 6,822 | — | 67,877 | |||||||||||||
| Income (loss) from operations | 421,501 | 1,914 | (75,358 | ) | — | 348,057 | ||||||||||||
| Interest expense, net | 15,083 | 360 | 36,014 | — | 51,457 | |||||||||||||
| Capital expenditures | $ | 162,476 | $ | 4,004 | $ | 6,408 | $ | — | $ | 172,888 | ||||||||
| Six Months Ended June 30, 2013 | ||||||||||||||||||
| Refining | Logistics | Corporate | Eliminations |
Consolidated |
||||||||||||||
| Revenues | $ | 9,476,141 | $ | — | $ | — | $ | — | $ | 9,476,141 | ||||||||
| Depreciation and amortization | 47,504 | 450 | 6,139 | — | 54,093 | |||||||||||||
| Income (loss) from operations | 292,915 | (4,408 | ) | (55,374 | ) | — | 233,133 | |||||||||||
| Interest expense, net | 6,464 | — | 36,855 | — | 43,319 | |||||||||||||
| Capital expenditures | $ | 85,449 | $ | 10,173 | $ | 17,102 | $ | — | $ | 112,724 | ||||||||
| Balance at June 30, 2014 | ||||||||||||||||||
| Refining | Logistics | Corporate | Eliminations |
Consolidated |
||||||||||||||
| Total assets | $ | 4,955,125 | $ | 348,092 | $ | 386,405 | $ | (7,782 | ) | $ | 5,681,840 | |||||||
| Balance at December 31, 2013 | ||||||||||||||||||
| Refining | Logistics | Corporate | Eliminations |
Consolidated |
||||||||||||||
| Total assets | $ | 4,128,701 | $ | 29,996 | $ | 255,111 | $ | - | $ | 4,413,808 | ||||||||
| See Footnotes to Earnings Release Tables | ||||||||||||||||||
| PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||
| EARNINGS RELEASE TABLES | |||||||||||||||||
| MARKET INDICATORS AND KEY OPERATING INFORMATION | |||||||||||||||||
| (Unaudited, amounts in thousands except as indicated) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| Market Indicators (dollars per barrel) (Note 3) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Dated Brent Crude | $ | 109.67 | $ | 102.43 | $ | 108.93 | $ | 107.50 | |||||||||
| West Texas Intermediate (WTI) crude oil | $ | 103.05 | $ | 94.07 | $ | 100.90 | $ | 94.17 | |||||||||
| Crack Spreads: | |||||||||||||||||
| Dated Brent (NYH) 2-1-1 | $ | 13.70 | $ | 14.67 | $ | 12.60 | $ | 13.60 | |||||||||
| WTI (Chicago) 4-3-1 | $ | 18.78 | $ | 29.26 | $ | 17.80 | $ | 27.72 | |||||||||
| Crude Oil Differentials: | |||||||||||||||||
| Dated Brent (foreign) less WTI | $ | 6.62 | $ | 8.36 | $ | 8.03 | $ | 13.33 | |||||||||
| Dated Brent less Maya (heavy, sour) | $ | 13.89 | $ | 4.59 | $ | 16.34 | $ | 7.30 | |||||||||
| Dated Brent less WTS (sour) | $ | 13.77 | $ | 8.42 | $ | 14.40 | $ | 16.42 | |||||||||
| Dated Brent less ASCI (sour) | $ | 9.55 | $ | 3.14 | $ | 8.65 | $ | 3.55 | |||||||||
| WTI less WCS (heavy, sour) | $ | 20.39 | $ | 16.63 | $ | 21.04 | $ | 21.54 | |||||||||
| WTI less Bakken (light, sweet) | $ | 4.67 | $ | 2.06 | $ | 4.23 | $ | 1.98 | |||||||||
| WTI less Syncrude (light, sweet) | $ | 0.72 | $ | (4.33 | ) | $ | 0.89 | $ | (3.84 | ) | |||||||
| Natural gas (dollars per MMBTU) | $ | 4.58 | $ | 4.02 | $ | 4.65 | $ | 3.76 | |||||||||
| Key Operating Information | |||||||||||||||||
| Production (barrels per day ("bpd") in thousands) | 470.5 | 464.0 | 448.3 | 450.9 | |||||||||||||
| Crude oil and feedstocks throughput (bpd in thousands) | 470.4 | 464.6 | 450.8 | 453.1 | |||||||||||||
| Total crude oil and feedstocks throughput (millions of barrels) | 42.8 | 42.3 | 81.6 | 82.0 | |||||||||||||
| Gross refining margin per barrel of throughput (Note 4) | $ | 8.38 | $ | 9.04 | $ | 11.73 | $ | 9.08 | |||||||||
| Operating expense per barrel of throughput (Note 5) | $ | 4.90 | $ | 4.79 | $ | 5.87 | $ | 4.98 | |||||||||
| Crude and feedstocks (% of total throughput) (Note 6) | |||||||||||||||||
| Heavy | 15 | % | 16 | % | 14 | % | 15 | % | |||||||||
| Medium | 43 | % | 39 | % | 44 | % | 44 | % | |||||||||
| Light | 33 | % | 38 | % | 34 | % | 33 | % | |||||||||
| Other feedstocks and blends | 9 | % | 7 | % | 8 | % | 8 | % | |||||||||
| Total throughput | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
| Yield (% of total throughput): | |||||||||||||||||
| Gasoline and gasoline blendstocks | 45 | % | 45 | % | 47 | % | 46 | % | |||||||||
| Distillates and distillate blendstocks | 36 | % | 37 | % | 37 | % | 37 | % | |||||||||
| Lubes | 2 | % | 2 | % | 2 | % | 2 | % | |||||||||
| Chemicals | 3 | % | 3 | % | 3 | % | 3 | % | |||||||||
| Other | 14 | % | 13 | % | 11 | % | 12 | % | |||||||||
| Total yield | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
| See Footnotes to Earnings Release Tables | |||||||||||||||||
| PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||||||
| SUPPLEMENTAL OPERATING INFORMATION | |||||||||||||||||
| (Unaudited, amounts in thousands except as indicated) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||||
|
Supplemental Operating Information - East Coast |
|||||||||||||||||
| Production (barrels per day ("bpd") in thousands) | 322.2 | 315.4 | 304.8 | 315.3 | |||||||||||||
| Crude oil and feedstocks throughput (bpd in thousands) | 323.8 | 317.3 | 308.4 | 318.1 | |||||||||||||
| Total crude oil and feedstocks throughput (millions of barrels) | 29.5 | 28.9 | 55.8 | 57.6 | |||||||||||||
| Gross refining margin per barrel of throughput (Note 4) | $ | 6.38 | $ | 5.16 | $ | 9.84 | $ | 5.15 | |||||||||
| Operating expense per barrel of throughput (Note 5) | $ | 4.67 | $ | 4.79 | $ | 5.92 | $ | 4.84 | |||||||||
| Crude and feedstocks (% of total throughput) (Note 6): | |||||||||||||||||
| Heavy | 21 | % | 23 | % | 21 | % | 22 | % | |||||||||
| Medium | 48 | % | 41 | % | 48 | % | 47 | % | |||||||||
| Light | 19 | % | 26 | % | 20 | % | 21 | % | |||||||||
| Other feedstocks and blends | 12 | % | 10 | % | 11 | % | 10 | % | |||||||||
| Total throughput | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
| Yield (% of total throughput): | |||||||||||||||||
| Gasoline and gasoline blendstocks | 44 | % | 44 | % | 45 | % | 44 | % | |||||||||
| Distillates and distillate blendstocks | 37 | % | 37 | % | 37 | % | 38 | % | |||||||||
| Lubes | 2 | % | 3 | % | 2 | % | 3 | % | |||||||||
| Chemicals | 2 | % | 2 | % | 2 | % | 2 | % | |||||||||
| Other | 15 | % | 14 | % | 14 | % | 13 | % | |||||||||
| Total yield | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
|
Supplemental Operating Information - Mid-Continent |
|||||||||||||||||
| Production (bpd in thousands) | 148.3 | 148.6 | 143.5 | 135.6 | |||||||||||||
| Crude oil and feedstocks throughput (bpd in thousands) | 146.6 | 147.3 | 142.4 | 135.0 | |||||||||||||
| Total crude oil and feedstocks throughput (millions of barrels) | 13.3 | 13.4 | 25.8 | 24.4 | |||||||||||||
| Gross refining margin per barrel of throughput (Note 4) | $ | 12.79 | $ | 17.42 | $ | 15.83 | $ | 18.36 | |||||||||
| Operating expense per barrel of throughput (Note 5) | $ | 5.41 | $ | 4.79 | $ | 5.75 | $ | 5.31 | |||||||||
| Crude and feedstocks (% of total throughput) (Note 6): | |||||||||||||||||
| Heavy | — | % | — | % | — | % | — | % | |||||||||
| Medium | 33 | % | 35 | % | 35 | % | 36 | % | |||||||||
| Light | 63 | % | 62 | % | 63 | % | 62 | % | |||||||||
| Other feedstocks and blends | 4 | % | 3 | % | 2 | % | 2 | % | |||||||||
| Total throughput | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
| Yield (% of total throughput): | |||||||||||||||||
| Gasoline and gasoline blendstocks | 49 | % | 48 | % | 50 | % | 49 | % | |||||||||
| Distillates and distillate blendstocks | 36 | % | 37 | % | 37 | % | 37 | % | |||||||||
| Lubes | — | % | — | % | — | % | — | % | |||||||||
| Chemicals | 5 | % | 5 | % | 5 | % | 5 | % | |||||||||
| Other | 11 | % | 10 | % | 9 | % | 9 | % | |||||||||
| Total yield | 101 | % | 100 | % | 101 | % | 100 | % | |||||||||
| See Footnotes to Earnings Release Tables | |||||||||||||||||
| PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||||
| RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP | ||||||||||||||||
| (Unaudited, in thousands, except share and per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| RECONCILIATION OF NET INCOME TO | June 30, | June 30, | ||||||||||||||
| ADJUSTED PRO FORMA NET INCOME (Note 1) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
| Net income attributable to PBF Energy Inc. | $ | 20,959 | 16,826 | $ | 98,404 | $ | 28,233 | |||||||||
|
Add: IPO-related expenses |
||||||||||||||||
|
Add: Net income attributable to the noncontrolling interest (Note 7) |
22,181 | 90,344 | 128,008 | 148,649 | ||||||||||||
| Less:Income tax expense (Note 8) | (8,917 | ) | (35,686 | ) | (51,460 | ) | (58,716 | ) | ||||||||
| Adjusted pro forma net income | $ | 34,223 | $ | 71,484 | $ | 174,952 | $ | 118,166 | ||||||||
| Diluted weighted-average shares outstanding of PBF Energy Inc. (Note 9) | 73,007,156 | 27,706,696 | 63,897,712 | 26,110,976 | ||||||||||||
| Conversion of PBF LLC Series A Units (Note 10) | 24,444,643 | 69,647,005 | 33,525,376 | 71,314,923 | ||||||||||||
| Pro forma shares outstanding - diluted | 97,451,799 | 97,353.701 | 97,423,088 | 97,425,899 | ||||||||||||
| Adjusted pro forma net income (per fully exchanged, fully diluted shares outstanding) | $ | 0.35 | $ | 0.73 | $ | 1.80 | $ | 1.21 | ||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| RECONCILIATION OF NET INCOME TO EBITDA | June 30, | June 30, | ||||||||||||||
| (Note 11) | 2014 | 2013 | 2014 | 2013 | ||||||||||||
| Net income | $ | 45,836 | $ | 107,170 | $ | 229,108 | $ | 176,882 | ||||||||
|
Add: Depreciation and amortization expense |
34,662 | 27,563 | 67,877 | 54,093 | ||||||||||||
|
Add: Interest expense, net |
26,202 | 21,708 | 51,457 | 43,319 | ||||||||||||
|
Add: Income tax expense |
13,474 | 10,969 | 63,153 | 18,413 | ||||||||||||
| EBITDA | $ | 120,174 | $ | 167,410 | $ | 411,595 | $ | 292,707 | ||||||||
| RECONCILIATION OF EBITDA TO ADJUSTED EBITDA (Note 11) | ||||||||||||||||
| EBITDA | $ | 120,174 | $ | 167,410 | $ | 411,595 | $ | 292,707 | ||||||||
|
Add: Stock based compensation |
1,503 | 957 | 2,923 | 1,977 | ||||||||||||
|
Add: Change in tax receivable agreement liability |
— | — | — | — | ||||||||||||
|
Add: Non-cash change in fair value of catalyst lease obligations |
2,338 | (6,820 | ) | 4,339 | (5,481 | ) | ||||||||||
|
Add: Non-cash change in fair value of contingent consideration |
— | — | — | — | ||||||||||||
|
Add: Non-cash change in fair value of inventory repurchase obligations |
— | (2,831 | ) | — | (13,873 | ) | ||||||||||
|
Add: Non-cash deferral of gross profit on finished product sales |
— | (20,496 | ) | — | (28,030 | ) | ||||||||||
| Adjusted EBITDA | $ | 124,015 | $ | 138,220 | $ | 418,857 | $ | 247,300 | ||||||||
| 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 4) | ||||||||||||||
| (Unaudited, in thousands, except per barrel amounts) | ||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||
| June 30, 2014 | June 30, 2013 | |||||||||||||
| RECONCILIATION OF GROSS MARGIN TO GROSS REFINING MARGIN | $ |
per barrel of
throughput |
$ |
per barrel of
throughput |
||||||||||
| Gross margin | $ | 124,357 | $ | 2.93 | $ | 155,484 | $ | 3.68 | ||||||
| Less: gross margin of PBFX | (7,782 | ) | (0.18 | ) | — | — | ||||||||
| Add: operating expense | 210,722 | 4.90 | 202,583 | 4.79 | ||||||||||
| Add: refinery depreciation | 31,174 | 0.73 | 24,247 | 0.57 | ||||||||||
| Gross refining margin | $ | 358,471 | $ | 8.38 | $ | 382,314 | $ | 9.04 | ||||||
| Six Months Ended | Six Months Ended | |||||||||||||
| June 30, 2014 | June 30, 2013 | |||||||||||||
| RECONCILIATION OF GROSS MARGIN TO GROSS REFINING MARGIN | $ |
per barrel of
throughput |
$ |
per barrel of
throughput |
||||||||||
| Gross margin | $ | 424,482 | $ | 5.21 | $ | 288,506 | $ | 3.52 | ||||||
| Less: gross margin of PBFX | (7,782 | ) | (0.10 | ) | — | — | ||||||||
| Add: operating expense | 479,621 | 5.87 | 408,599 | 4.98 | ||||||||||
| Add: refinery depreciation | 60,909 | 0.75 | 47,955 | 0.58 | ||||||||||
| Gross refining margin | $ | 957,230 | $ | 11.73 | $ | 745,060 | $ | 9.08 | ||||||
| See Footnotes to Earnings Release Tables | ||||||||||||||
| PBF ENERGY INC. AND SUBSIDIARIES | |
| EARNINGS RELEASE TABLES | |
| FOOTNOTES TO EARNINGS RELEASE TABLES | |
| (1) Adjusted Pro Forma information is presented in this table as management believes that these Non-GAAP measures when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare the company’s results across the periods presented and facilitates an understanding of the company’s operating results. The company also uses this measure to evaluate its operating performance. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. The differences between Adjusted Pro Forma and U.S. GAAP results are explained in footnotes 7 through 10. | |
| (2) Effective with the completion of the initial public offering (or PBFX Offering) of PBF Logistics LP (or PBFX) on May 14, 2014, we now operate in two reportable segments, Refining and Logistics. Our operations that are not included in the Refining and Logistics segments are included in Corporate. The Refining segment includes the operations of our oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey and Toledo, Ohio. The Logistics segment includes the operations of PBFX, a growth-oriented master limited partnership which owns and operates logistics assets, currently consisting of the Delaware City Rail Terminal and the Toledo Truck Terminal. The Logistics segment's results include financial information of the predecessor of PBFX for periods presented prior to May 13, 2014, and the financial information of PBFX for the period beginning May 14, 2014, the completion date of the PBFX Offering. Prior to the PBFX Offering, PBFX's assets were operated within the refining operations of PBF Energy's Delaware City and Toledo refineries. The assets did not generate third party or intra-entity revenue and were not considered to be a separate reportable segment. All intercompany transactions are eliminated in our consolidated financial statements and are included in Eliminations, as applicable. | |
| (3) As reported by Platts. | |
| (4) Gross refining margin and gross refining margin per barrel of throughput are non-GAAP measures because they exclude operating expenses, refinery 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 they provide useful information to investors because gross refining margin per barrel is a better 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. | |
| (5) Represents refinery operating expenses, excluding depreciation and amortization, divided by total crude oil and feedstocks throughput. | |
| (6) We define heavy crude oil as crude oil with an American Petroleum Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with an API gravity between 24 and 35 degrees. We define light crude oil as crude oil with an API gravity higher than 35 degrees. | |
| (7) Represents the elimination of the noncontrolling interest associated with the ownership by the members of PBF Energy Company LLC other than PBF Energy Inc. as if such members had fully exchanged their Series A Units for shares of the company's Class A common stock. | |
| (8) Represents an adjustment to reflect the company's current statutory corporate tax rate of approximately 40.2% applied to the net income attributable to the noncontrolling interest for all periods presented. The adjustment assumes the full exchange of existing PBF Energy Company LLC Series A Units as described in footnote 7. | |
| (9) Represents weighted-average diluted shares outstanding assuming the full exchange of common stock equivalents, including options and warrants for PBF Energy Company LLC Series A Units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method. Common stock equivalents excludes the effects of options to purchase 1,867,500 and 1,952,500 shares of PBF Energy Class A common stock because they are anti-dilutive for the three and six months ended June 30, 2014, respectively. Common stock equivalents excludes the effects of options to purchase 731,250 shares of PBF Energy Class A common stock because they are anti-dilutive for the three and six months ended June 30, 2013, respectively. | |
| (10) Represents an adjustment to weighted-average diluted shares to assume the full exchange of existing PBF LLC Series A Units as described in footnote 7. | |
| (11) 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. We use these non-GAAP financial measures as a supplement to our GAAP results in order to provide a more complete understanding of the 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. | |