PARSIPPANY, N.J., Feb. 14, 2019 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today
reported fourth quarter 2018 loss from operations of $446.2 million as compared to income from
operations of $254.6 million for the fourth quarter of 2017. Excluding special items, fourth
quarter 2018 income from operations was $213.2 million as compared to income from operations of
$57.0 million for the fourth quarter of 2017.
The company reported fourth quarter 2018 net loss of $346.7 million and net loss attributable to
PBF Energy Inc. of $353.7 million or $2.97 per share. This compares
to net income of $260.4 million, and net income attributable to PBF Energy Inc. of $241.9 million or $2.14 per share for the fourth quarter of 2017. Special
items in the fourth quarter 2018 results, which decreased net income, by a net, after-tax charge of $483.5
million, or $4.00 per share, consisted of a lower-of-cost-or-market ("LCM") inventory
adjustment and a charge associated with the residual costs on the early return of certain leased railcars, offset by a benefit
related to the change in our Tax Receivable Agreement liability. Adjusted fully-converted net income for the fourth quarter 2018,
excluding special items, was $125.8 million, or $1.03 per share on a
fully-exchanged, fully-diluted basis, as described below, compared to an adjusted fully-converted net loss of $4.4 million or $0.04 per share, for the fourth quarter 2017.
Tom Nimbley, PBF Energy's Chairman and CEO, said, "Our strong fourth quarter results capped off
a solid year for PBF Energy. We were able to demonstrate the flexibility of our high-complexity refining system by sourcing
advantaged crude to help blunt the impact of an oversupplied product market, especially gasoline." Mr. Nimbley continued,
"Looking forward, our outlook remains positive. Strong clean product demand should return inventories to their seasonal norms as
we move into the spring maintenance season and make the shift to summer-grade gasoline. Additionally, we are strategically
positioning PBF in front of the upcoming IMO marine fuel regulation changes by advancing our turnaround activities and completing
the bulk of our major maintenance in the first half of 2019. Finally, PBF Energy continues to be a supportive sponsor of PBF
Logistics and the elimination of the IDRs highlights our commitment to the future of PBF Logistics and its value as a partner in
the growth of both companies."
Income from operations was $358.1 million for the year-ended December 31,
2018 as compared to income from operations of $731.6 million for the year-ended December 31, 2017. Excluding special items, income from operations was $718.0
million for the year-ended December 31, 2018 as compared to income from operations of
$436.1 million for the year-ended December 31, 2017. Adjusted
fully-converted net income for the year ended December 31, 2018, excluding special items, was
$387.0 million, or $3.26 per share on a fully-exchanged,
fully-diluted basis, as compared to adjusted fully-converted net income of $130.1 million, or
$1.14 per share, for the year ended December 31, 2017. 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 44.0% of the limited partner interests as of December 31, 2018.
Strategic Projects, Capital and Corporate Update
As previously disclosed, PBF Energy is progressing with the restart of the idled 12,000 barrel per day coker at the
Chalmette refinery and the installation of a new hydrogen plant at the Delaware City refinery. Both projects are on schedule. We
expect that the coker will be in service late in the fourth quarter of 2019 and the new hydrogen plant, which is being built and
will be owned and operated by Linde, will be in service during the first quarter of 2020. PBF Energy's capital expenses for
the projects are expected to be approximately $110 million and $40
million for the coker and hydrogen plant, respectively.
In order to strategically position the company for the later part of 2019, as the expected benefits of the changing marine
fuels standards being implemented with IMO 2020 begin to emerge, PBF has elected to accelerate the previously announced 2019
turnarounds at its Delaware City and Paulsboro refineries. The Delaware City coker turnaround,
and other ancillary units, will now occur in the March to April time frame, and the Paulsboro
crude unit turnaround originally planned for the third quarter will now occur in the second quarter of 2019.
PBF Logistics announced today an IDR simplification agreement in which PBF will receive 10,000,000 newly-issued common units
in exchange for the elimination of PBF's IDRs. The transaction is subject to customary closing conditions. Closing of the
transaction is expected to occur on February 28, 2019. Pro forma for the transaction, PBF
will own approximately 54% of the outstanding LP common units.
Throughput Guidance
Throughput guidance for the first quarter reflects ongoing maintenance activity and current expectations based on
prevailing market conditions. In addition to advancing the turnaround work on the East Coast, PBF is conducting repairs on
piping and instrumentation associated with a pre-flash tower, located in Delaware City, which was damaged during an incident
commencing on February 3, 2019. The refinery's crude unit was not damaged and has been
returned to service.
For the first quarter 2019, we expect East Coast total throughput to average 300,000 to 320,000 barrels per day; Mid-Continent
total throughput is expected to average 135,000 to 145,000 barrels per day; Gulf Coast total throughput is expected to average
175,000 to 185,000 barrels per day and West Coast total throughput is expected to average 130,000 to 140,000 barrels per day.
For the full-year 2019, we expect East Coast total throughput to average 325,000 to 345,000 barrels per day; Mid-Continent
total throughput is expected to average 150,000 to 160,000 barrels per day; Gulf Coast total throughput is expected to average
195,000 to 205,000 barrels per day and West Coast total throughput is expected to average 160,000 to 170,000 barrels per day.
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 March 14, 2019, to holders of record as of February
28, 2019.
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, 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 Thursday, February 14, 2019, 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: PBFQ418. The audio replay will be available two hours after the end of the call through February 28, 2019, by dialing (800) 723-0488 or (402) 220-2651.
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; 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 44.0% of the limited partnership interest
of PBF Logistics LP (NYSE: PBFX).
PBF ENERGY INC. AND SUBSIDIARIES
|
EARNINGS RELEASE TABLES
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited, in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenues
|
|
$
|
6,292,874
|
|
|
$
|
6,535,988
|
|
|
$
|
27,186,093
|
|
|
$
|
21,786,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost and expenses:
|
|
|
|
|
|
|
|
|
|
Cost of products and other
|
|
6,102,661
|
|
|
5,709,100
|
|
|
24,503,393
|
|
|
18,863,621
|
|
|
Operating expenses (excluding depreciation and amortization expense as
reflected
below)
|
|
452,798
|
|
|
417,556
|
|
|
1,720,959
|
|
|
1,684,435
|
|
|
Depreciation and amortization expense
|
|
95,373
|
|
|
80,192
|
|
|
359,126
|
|
|
277,992
|
|
Cost of sales
|
|
6,650,832
|
|
|
6,206,848
|
|
|
26,583,478
|
|
|
20,826,048
|
|
|
General and administrative expenses (excluding depreciation and
amortization
expense as reflected below)
|
|
85,537
|
|
|
71,400
|
|
|
276,955
|
|
|
214,547
|
|
|
Depreciation and amortization expense
|
|
2,763
|
|
|
2,609
|
|
|
10,634
|
|
|
12,964
|
|
|
(Gain) loss on sale of assets
|
|
(22)
|
|
|
518
|
|
|
(43,094)
|
|
|
1,458
|
|
Total cost and expenses
|
|
6,739,110
|
|
|
6,281,375
|
|
|
26,827,973
|
|
|
21,055,017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
(446,236)
|
|
|
254,613
|
|
|
358,120
|
|
|
731,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
Change in Tax Receivable Agreement liability
|
|
6,130
|
|
|
250,357
|
|
|
13,893
|
|
|
250,922
|
|
|
Change in fair value of catalyst leases
|
|
(196)
|
|
|
(1,236)
|
|
|
5,587
|
|
|
(2,247)
|
|
|
Debt extinguishment costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,451)
|
|
|
Interest expense, net
|
|
(40,976)
|
|
|
(39,556)
|
|
|
(169,911)
|
|
|
(154,427)
|
|
|
Other non-service components of net periodic benefit cost (Note
16)
|
|
|
276
|
|
|
(1,097)
|
|
|
1,109
|
|
|
(1,402)
|
|
Income (loss) before income taxes
|
|
(481,002)
|
|
|
463,081
|
|
|
208,798
|
|
|
799,015
|
|
Income tax (benefit) expense
|
|
(134,329)
|
|
|
202,695
|
|
|
33,507
|
|
|
315,584
|
|
Net income (loss)
|
|
(346,673)
|
|
|
260,386
|
|
|
175,291
|
|
|
483,431
|
|
|
Less: net income attributable to noncontrolling interests
|
|
7,069
|
|
|
18,494
|
|
|
46,976
|
|
|
67,914
|
|
Net income (loss) attributable to PBF Energy Inc.
stockholders
|
|
$
|
(353,742)
|
|
|
$
|
241,892
|
|
|
$
|
128,315
|
|
|
$
|
415,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) available to Class A common stock per
share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(2.97)
|
|
|
$
|
2.19
|
|
|
$
|
1.11
|
|
|
$
|
3.78
|
|
|
Diluted
|
|
$
|
(2.97)
|
|
|
$
|
2.14
|
|
|
$
|
1.10
|
|
|
$
|
3.73
|
|
|
Weighted-average shares outstanding-basic
|
|
119,066,695
|
|
|
110,208,152
|
|
|
115,190,262
|
|
|
109,779,407
|
|
|
Weighted-average shares outstanding-diluted
|
|
119,066,695
|
|
|
114,773,845
|
|
|
118,773,606
|
|
|
113,898,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common share
|
|
$
|
0.30
|
|
|
$
|
0.30
|
|
|
$
|
1.20
|
|
|
$
|
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted fully-converted net income (loss) and adjusted fully-converted
net income (loss) per fully exchanged, fully diluted shares outstanding (Note 1):
|
|
|
|
|
|
|
|
|
|
Adjusted fully-converted net income (loss)
|
|
$
|
(357,688)
|
|
|
$
|
245,929
|
|
|
$
|
131,021
|
|
|
$
|
424,587
|
|
|
Adjusted fully-converted net income (loss) per fully exchanged, fully
diluted share
|
|
$
|
(2.97)
|
|
|
$
|
2.14
|
|
|
$
|
1.10
|
|
|
$
|
3.73
|
|
|
Adjusted fully-converted shares outstanding - diluted (Note 6)
|
|
120,273,021
|
|
|
114,773,845
|
|
|
118,773,606
|
|
|
113,898,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Year Ended
|
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED
FULLY-CONVERTED
NET INCOME (LOSS) AND ADJUSTED FULLY-CONVERTED NET
INCOME (LOSS) EXCLUDING SPECIAL ITEMS (Note 1)
|
|
December 31,
|
|
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net income (loss) attributable to PBF Energy Inc.
stockholders
|
|
$ (353,742)
|
|
$ 241,892
|
|
$ 128,315
|
|
$ 415,517
|
Less: Income
allocated to participating securities
|
|
156
|
|
232
|
|
748
|
|
1,043
|
Income (loss) available to PBF Energy Inc. stockholders -
basic
|
|
(353,898)
|
|
241,660
|
|
127,567
|
|
414,474
|
Add: Net
income (loss) attributable to noncontrolling interest (Note 2)
|
|
(5,122)
|
|
7,069
|
|
4,668
|
|
16,746
|
Less: Income
tax benefit (expense) (Note 3)
|
|
1,332
|
|
(2,800)
|
|
(1,214)
|
|
(6,633)
|
Adjusted fully-converted net income (loss)
|
|
$ (357,688)
|
|
$ 245,929
|
|
$ 131,021
|
|
$ 424,587
|
Special Items (Note 4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM inventory adjustment
|
|
651,734
|
|
(197,589)
|
|
351,278
|
|
(295,532)
|
Add: Change
in Tax Receivable Agreement liability
|
|
(6,130)
|
|
(250,357)
|
|
(13,893)
|
|
(250,922)
|
Add: Debt
extinguishment costs
|
|
—
|
|
—
|
|
—
|
|
25,451
|
Add: Gain on
Torrance land sale
|
|
—
|
|
—
|
|
(43,761)
|
|
—
|
Add: Early
railcar return expense
|
|
7,742
|
|
—
|
|
52,313
|
|
—
|
Add: Net tax
benefit related to the TCJA
|
|
—
|
|
(173,346)
|
|
—
|
|
(173,346)
|
Add: Net tax
expense on remeasurement of TRA associated deferred tax assets
|
|
—
|
|
193,499
|
|
—
|
|
193,499
|
Less: Recomputed income taxes on special items
|
|
(169,870)
|
|
177,427
|
|
(89,944)
|
|
206,364
|
Adjusted fully-converted net income (loss) excluding special
items
|
|
$ 125,788
|
|
$ (4,437)
|
|
$ 387,014
|
|
$ 130,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares outstanding of PBF Energy Inc.
|
|
119,066,695
|
|
110,208,152
|
|
115,190,262
|
|
109,779,407
|
Conversion of PBF LLC Series A Units (Note 5)
|
|
1,206,326
|
|
3,798,023
|
|
1,938,089
|
|
3,823,783
|
Common stock equivalents (Note 6)
|
|
1,749,607
|
|
767,670
|
|
1,645,255
|
|
295,655
|
Fully-converted shares outstanding - diluted
|
|
122,022,628
|
|
114,773,845
|
|
118,773,606
|
|
113,898,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted fully-converted net income (loss) per fully exchanged, fully
diluted shares outstanding (Note 6)
|
|
$ (2.97)
|
|
$ 2.14
|
|
$ 1.10
|
|
$ 3.73
|
|
Adjusted fully-converted net income (loss) excluding special items per
fully exchanged, fully diluted shares outstanding (Note 4)
|
|
$ 1.03
|
|
$ (0.04)
|
|
$ 3.26
|
|
$ 1.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS
TO INCOME FROM OPERATIONS EXCLUDING SPECIAL
ITEMS
|
|
December 31,
|
|
December 31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Income (loss) from operations (Note 16)
|
|
$ (446,236)
|
|
$ 254,613
|
|
$ 358,120
|
|
$ 731,620
|
Special Items (Note 4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM inventory adjustment
|
|
651,734
|
|
(197,589)
|
|
351,278
|
|
(295,532)
|
Add: Gain on
Torrance land sale
|
|
—
|
|
—
|
|
(43,761)
|
|
—
|
Add: Early
railcar return expense
|
|
7,742
|
|
—
|
|
52,313
|
|
—
|
Income from operations excluding special items
|
|
$ 213,240
|
|
$ 57,024
|
|
$ 717,950
|
|
$ 436,088
|
|
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 thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
December 31,
|
|
December 31,
|
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND
EBITDA EXCLUDING SPECIAL ITEMS
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net income (loss)
|
|
$ (346,673)
|
|
$ 260,386
|
|
$ 175,291
|
|
$ 483,431
|
Add: Depreciation and amortization
expense
|
|
98,136
|
|
82,801
|
|
369,760
|
|
290,956
|
Add: Interest expense, net
|
|
40,976
|
|
39,556
|
|
169,911
|
|
154,427
|
Add: Income tax (benefit)
expense
|
|
(134,329)
|
|
202,695
|
|
33,507
|
|
315,584
|
EBITDA
|
|
|
$ (341,890)
|
|
$ 585,438
|
|
$ 748,469
|
|
$ 1,244,398
|
Special Items (Note 4):
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM inventory
adjustment
|
|
651,734
|
|
(197,589)
|
|
351,278
|
|
(295,532)
|
Add: Change in Tax Receivable Agreement
liability
|
|
(6,130)
|
|
(250,357)
|
|
(13,893)
|
|
(250,922)
|
Add: Debt extinguishment
costs
|
|
—
|
|
—
|
|
—
|
|
25,451
|
Add: Gain on Torrance land sale
|
|
—
|
|
—
|
|
(43,761)
|
|
—
|
Add: Early railcar return
expense
|
|
7,742
|
|
—
|
|
52,313
|
|
—
|
EBITDA excluding special items
|
|
$ 311,456
|
|
$ 137,492
|
|
$ 1,094,406
|
|
$ 723,395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
EBITDA
|
|
$ (341,890)
|
|
$ 585,438
|
|
$ 748,469
|
|
$ 1,244,398
|
Add: Stock-based
compensation
|
|
7,361
|
|
8,784
|
|
25,969
|
|
26,848
|
Add: Net non-cash change in fair value of
catalyst leases
|
|
196
|
|
1,236
|
|
(5,587)
|
|
2,247
|
Add: Non-cash LCM inventory adjustment
(Note 4)
|
|
651,734
|
|
(197,589)
|
|
351,278
|
|
(295,532)
|
Add: Change in Tax Receivable Agreement
liability (Note 4)
|
|
(6,130)
|
|
(250,357)
|
|
(13,893)
|
|
(250,922)
|
Add: Debt extinguishment costs (Note
4)
|
|
—
|
|
—
|
|
—
|
|
25,451
|
Adjusted EBITDA
|
|
|
$ 311,271
|
|
$ 147,512
|
|
$ 1,106,236
|
|
$ 752,490
|
|
|
See Footnotes to Earnings Release Tables
|
PBF ENERGY INC. AND SUBSIDIARIES
|
EARNINGS RELEASE TABLES
|
CONSOLIDATED BALANCE SHEET DATA
|
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
2018
|
|
2017
|
|
Balance Sheet Data:
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
597,286
|
|
$
573,021
|
|
|
Inventories
|
1,865,831
|
|
2,213,797
|
|
|
Total assets
|
8,005,415
|
|
8,117,993
|
|
|
Total debt
|
1,933,694
|
|
2,191,650
|
|
|
|
|
|
|
|
|
Total equity
|
3,248,479
|
|
2,902,949
|
|
|
Total equity excluding special items (Note 4, 13)
|
$
3,551,677
|
|
$
2,950,154
|
|
|
|
|
|
|
|
|
|
|
|
Total debt to capitalization ratio (Note 13)
|
37 %
|
|
43 %
|
|
|
Total debt to capitalization ratio, excluding special items (Note
13)
|
35 %
|
|
43 %
|
|
|
Net debt to capitalization ratio (Note 13)
|
29 %
|
|
36 %
|
|
|
Net debt to capitalization ratio, excluding special items (Note
13)
|
27 %
|
|
35 %
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED STATEMENT OF CASH FLOW DATA
|
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
|
2018
|
|
2017
|
|
Cash flows provided by operations
|
$
837,938
|
|
$
685,861
|
|
Cash flows used in investing activities
|
(685,597)
|
|
(687,011)
|
|
Cash flows used in financing activities
|
(128,076)
|
|
(172,103)
|
|
Net increase (decrease) in cash and cash equivalents
|
24,265
|
|
(173,253)
|
|
Cash and cash equivalents, beginning of period
|
573,021
|
|
746,274
|
|
Cash and cash equivalents, end of period
|
$
597,286
|
|
$
573,021
|
|
|
|
|
|
|
|
See Footnotes to Earnings Release Tables
|
PBF ENERGY INC. AND SUBSIDIARIES
|
EARNINGS RELEASE TABLES
|
CONSOLIDATING FINANCIAL INFORMATION (Note 8)
|
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2018
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$ 6,281,466
|
|
$ 80,045
|
|
$ —
|
|
$ (68,637)
|
|
$ 6,292,874
|
Depreciation and amortization expense
|
86,749
|
|
8,624
|
|
2,763
|
|
—
|
|
98,136
|
Income (loss) from operations (Note 14, 16)
|
(397,665)
|
|
38,571
|
|
(82,433)
|
|
(4,709)
|
|
(446,236)
|
Interest expense, net
|
1,092
|
|
12,093
|
|
27,791
|
|
—
|
|
40,976
|
Capital expenditures (Note 17)
|
175,246
|
|
89,069
|
|
1,445
|
|
—
|
|
265,760
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2017
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$ 6,532,514
|
|
$ 67,213
|
|
$ —
|
|
$ (63,739)
|
|
$ 6,535,988
|
Depreciation and amortization expense
|
72,884
|
|
7,308
|
|
2,609
|
|
—
|
|
82,801
|
Income (loss) from operations (Note 14, 16)
|
293,018
|
|
35,614
|
|
(70,672)
|
|
(3,347)
|
|
254,613
|
Interest expense, net
|
1,262
|
|
9,745
|
|
28,549
|
|
—
|
|
39,556
|
Capital expenditures
|
58,423
|
|
18,158
|
|
512
|
|
—
|
|
77,093
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2018
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$ 27,162,079
|
|
$ 283,440
|
|
$ —
|
|
$ (259,426)
|
|
$ 27,186,093
|
Depreciation and amortization expense
|
329,317
|
|
29,809
|
|
10,634
|
|
—
|
|
369,760
|
Income (loss) from operations (Note 14, 16)
|
498,287
|
|
143,870
|
|
(266,218)
|
|
(17,819)
|
|
358,120
|
Interest expense, net
|
7,601
|
|
43,033
|
|
119,277
|
|
—
|
|
169,911
|
Capital expenditures (Note 17)
|
552,020
|
|
175,696
|
|
6,171
|
|
—
|
|
733,887
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2017
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Revenues
|
$ 21,769,703
|
|
$ 257,588
|
|
$ —
|
|
$ (240,654)
|
|
$ 21,786,637
|
Depreciation and amortization expense
|
253,588
|
|
24,404
|
|
12,964
|
|
—
|
|
290,956
|
Income (loss) from operations (Note 14, 16)
|
814,033
|
|
143,379
|
|
(211,227)
|
|
(14,565)
|
|
731,620
|
Interest expense, net
|
4,695
|
|
33,363
|
|
116,369
|
|
—
|
|
154,427
|
Capital expenditures (Note 17)
|
633,294
|
|
90,258
|
|
3,483
|
|
—
|
|
727,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2018
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Total Assets (Note 15)
|
$ 6,988,059
|
|
$ 956,353
|
|
$ 98,055
|
|
$ (37,052)
|
|
$ 8,005,415
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2017
|
|
Refining
|
|
Logistics
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
Total
|
Total Assets (Note 15)
|
$ 7,287,384
|
|
$ 748,215
|
|
$ 123,211
|
|
$ (40,817)
|
|
$ 8,117,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Year Ended
|
|
|
|
|
|
December 31,
|
|
December 31,
|
Market Indicators (dollars per barrel) (Note 9)
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Dated Brent Crude
|
$ 68.70
|
|
$ 61.39
|
|
$ 71.34
|
|
$ 54.18
|
West Texas Intermediate (WTI) crude oil
|
$ 59.98
|
|
$ 55.23
|
|
$ 65.20
|
|
$ 50.79
|
Light Louisiana Sweet (LLS) crude oil
|
$ 67.51
|
|
$ 60.94
|
|
$ 70.23
|
|
$ 54.02
|
Alaska North Slope (ANS) crude oil
|
$ 69.53
|
|
$ 61.31
|
|
$ 71.54
|
|
$ 54.43
|
Crack Spreads:
|
|
|
|
|
|
|
|
Dated Brent (NYH) 2-1-1
|
$ 10.19
|
|
$ 14.44
|
|
$ 13.17
|
|
$ 14.74
|
WTI (Chicago) 4-3-1
|
$ 11.75
|
|
$ 19.44
|
|
$ 14.84
|
|
$ 15.88
|
LLS (Gulf Coast) 2-1-1
|
$ 9.35
|
|
$ 13.00
|
|
$ 12.30
|
|
$ 13.57
|
ANS (West Coast) 4-3-1
|
$ 11.82
|
|
$ 13.34
|
|
$ 15.48
|
|
$ 17.43
|
Crude Oil Differentials:
|
|
|
|
|
|
|
|
Dated Brent (foreign) less WTI
|
$ 8.72
|
|
$ 6.16
|
|
$ 6.14
|
|
$ 3.39
|
Dated Brent less Maya (heavy,
sour)
|
$ 6.19
|
|
$ 10.52
|
|
$ 8.70
|
|
$ 7.16
|
Dated Brent less WTS (sour)
|
$ 15.38
|
|
$ 6.59
|
|
$ 13.90
|
|
$ 4.37
|
Dated Brent less ASCI (sour)
|
$ 4.45
|
|
$ 3.88
|
|
$ 4.64
|
|
$ 3.66
|
WTI less WCS (heavy, sour)
|
$ 34.67
|
|
$ 16.48
|
|
$ 26.93
|
|
$ 12.24
|
WTI less Bakken (light, sweet)
|
$ 8.48
|
|
$ (1.54)
|
|
$ 2.86
|
|
$ (0.26)
|
WTI less Syncrude (light, sweet)
|
$ 19.19
|
|
$ (1.53)
|
|
$ 6.84
|
|
$ (1.74)
|
WTI less LLS (light, sweet)
|
$ (7.53)
|
|
$ (5.71)
|
|
$ (5.03)
|
|
$ (3.23)
|
WTI less ANS (light, sweet)
|
$ (9.55)
|
|
$ (6.08)
|
|
$ (6.34)
|
|
$ (3.63)
|
Natural gas (dollars per MMBTU)
|
$ 3.72
|
|
$ 2.92
|
|
$ 3.07
|
|
$ 3.02
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Operating Information
|
|
|
|
|
|
|
|
Production (barrels per day ("bpd") in thousands)
|
850.8
|
|
872.3
|
|
854.5
|
|
802.9
|
Crude oil and feedstocks throughput (bpd in thousands)
|
842.7
|
|
870.9
|
|
849.7
|
|
807.4
|
Total crude oil and feedstocks throughput (millions of barrels)
|
77.5
|
|
80.1
|
|
310.0
|
|
294.7
|
Consolidated gross margin per barrel of throughput
|
$ (4.62)
|
|
$ 4.11
|
|
$ 1.94
|
|
$ 3.25
|
Gross refining margin, excluding special items, per barrel of throughput
(Note 4,
Note 10)
|
$ 10.00
|
|
$ 7.06
|
|
$ 9.09
|
|
$ 8.08
|
Refinery operating expense, per barrel of throughput (Note 11)
|
$ 5.56
|
|
$ 5.01
|
|
$ 5.34
|
|
$ 5.52
|
Crude and feedstocks (% of total throughput) (Note 12)
|
|
|
|
|
|
|
|
Heavy
|
35 %
|
|
33 %
|
|
36 %
|
|
34 %
|
Medium
|
30 %
|
|
30 %
|
|
30 %
|
|
30 %
|
Light
|
22 %
|
|
23 %
|
|
21 %
|
|
21 %
|
Other feedstocks and blends
|
13 %
|
|
14 %
|
|
13 %
|
|
15 %
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
Yield (% of total throughput)
|
|
|
|
|
|
|
|
Gasoline and gasoline blendstocks
|
50 %
|
|
51 %
|
|
50 %
|
|
50 %
|
Distillates and distillate
blendstocks
|
33 %
|
|
31 %
|
|
32 %
|
|
30 %
|
Lubes
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
Chemicals
|
2 %
|
|
2 %
|
|
2 %
|
|
2 %
|
Other
|
15 %
|
|
15 %
|
|
16 %
|
|
16 %
|
Total
yield
|
101 %
|
|
100 %
|
|
101 %
|
|
99 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to Earnings Release Tables
|
PBF ENERGY INC. AND SUBSIDIARIES
|
EARNINGS RELEASE TABLES
|
SUPPLEMENTAL OPERATING INFORMATION
|
(Unaudited, amounts in thousands except as indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Supplemental Operating Information - East Coast (Delaware City and
Paulsboro)
|
|
|
|
|
|
|
|
Production (bpd in thousands)
|
327.5
|
|
359.3
|
|
340.2
|
|
332.5
|
Crude oil and feedstocks throughput (bpd in thousands)
|
331.2
|
|
362.4
|
|
344.7
|
|
338.2
|
Total crude oil and feedstocks throughput (millions of barrels)
|
30.5
|
|
33.3
|
|
125.8
|
|
123.4
|
Gross margin per barrel of throughput
|
$ (11.54)
|
|
$ 1.47
|
|
$ 0.25
|
|
$ 0.89
|
Gross refining margin, excluding special items, per barrel of throughput
(Note 4, Note 10)
|
$ 8.55
|
|
$ 4.02
|
|
$ 7.43
|
|
$ 5.46
|
Refinery operating expense, per barrel of throughput (Note 11)
|
$ 5.12
|
|
$ 4.28
|
|
$ 4.68
|
|
$ 4.44
|
Crude and feedstocks (% of total throughput) (Note 12):
|
|
|
|
|
|
|
|
Heavy
|
26 %
|
|
26 %
|
|
27 %
|
|
31 %
|
Medium
|
47 %
|
|
44 %
|
|
47 %
|
|
40 %
|
Light
|
9 %
|
|
12 %
|
|
8 %
|
|
11 %
|
Other feedstocks and blends
|
18 %
|
|
18 %
|
|
18 %
|
|
18 %
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
Yield (% of total throughput):
|
|
|
|
|
|
|
|
Gasoline and gasoline blendstocks
|
46 %
|
|
48 %
|
|
46 %
|
|
46 %
|
Distillates and distillate
blendstocks
|
33 %
|
|
33 %
|
|
33 %
|
|
31 %
|
Lubes
|
2 %
|
|
2 %
|
|
2 %
|
|
2 %
|
Chemicals
|
1 %
|
|
1 %
|
|
1 %
|
|
1 %
|
Other
|
17 %
|
|
15 %
|
|
17 %
|
|
18 %
|
Total
yield
|
99 %
|
|
99 %
|
|
99 %
|
|
98 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Operating Information - Mid-Continent (Toledo)
|
|
|
|
|
|
|
|
Production (bpd in thousands)
|
152.9
|
|
143.8
|
|
151.5
|
|
148.2
|
Crude oil and feedstocks throughput (bpd in thousands)
|
149.8
|
|
141.5
|
|
149.6
|
|
145.2
|
Total crude oil and feedstocks throughput (millions of barrels)
|
13.8
|
|
13.0
|
|
54.6
|
|
53.0
|
Gross margin per barrel of throughput
|
$ (9.90)
|
|
$ 9.18
|
|
$ 5.07
|
|
$ 5.52
|
Gross refining margin, excluding special items, per barrel of throughput
(Note 4, Note 10)
|
$ 17.76
|
|
$ 12.17
|
|
$ 13.46
|
|
$ 10.28
|
Refinery operating expense, per barrel of throughput (Note 11)
|
$ 5.30
|
|
$ 5.33
|
|
$ 5.12
|
|
$ 5.24
|
Crude and feedstocks (% of total throughput) (Note 12):
|
|
|
|
|
|
|
|
Medium
|
30 %
|
|
36 %
|
|
32 %
|
|
37 %
|
Light
|
68 %
|
|
63 %
|
|
66 %
|
|
61 %
|
Other feedstocks and blends
|
2 %
|
|
1 %
|
|
2 %
|
|
2 %
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
Yield (% of total throughput):
|
|
|
|
|
|
|
|
Gasoline and gasoline blendstocks
|
52 %
|
|
55 %
|
|
53 %
|
|
54 %
|
Distillates and distillate
blendstocks
|
37 %
|
|
33 %
|
|
35 %
|
|
33 %
|
Chemicals
|
6 %
|
|
6 %
|
|
5 %
|
|
6 %
|
Other
|
7 %
|
|
8 %
|
|
8 %
|
|
9 %
|
Total
yield
|
102 %
|
|
102 %
|
|
101 %
|
|
102 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Operating Information - Gulf Coast (Chalmette)
|
|
|
|
|
|
|
|
Production (bpd in thousands)
|
192.1
|
|
187.7
|
|
189.2
|
|
182.3
|
Crude oil and feedstocks throughput (bpd in thousands)
|
188.7
|
|
190.1
|
|
185.6
|
|
184.5
|
Total crude oil and feedstocks throughput (millions of barrels)
|
17.3
|
|
17.5
|
|
67.7
|
|
67.4
|
Gross margin per barrel of throughput
|
$ 0.27
|
|
$ 2.94
|
|
$ (0.27)
|
|
$ 3.69
|
Gross refining margin, excluding special items, per barrel of throughput
(Note 4, Note 10)
|
$ 5.83
|
|
$ 6.12
|
|
$ 6.41
|
|
$ 8.34
|
Refinery operating expense, per barrel of throughput (Note 11)
|
$ 4.65
|
|
$ 4.51
|
|
$ 4.66
|
|
$ 4.84
|
Crude and feedstocks (% of total throughput) (Note 12):
|
|
|
|
|
|
|
|
Heavy
|
38 %
|
|
36 %
|
|
39 %
|
|
38 %
|
Medium
|
18 %
|
|
16 %
|
|
19 %
|
|
22 %
|
Light
|
29 %
|
|
35 %
|
|
29 %
|
|
25 %
|
Other feedstocks and blends
|
15 %
|
|
13 %
|
|
13 %
|
|
15 %
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
Yield (% of total throughput):
|
|
|
|
|
|
|
|
Gasoline and gasoline blendstocks
|
44 %
|
|
44 %
|
|
43 %
|
|
45 %
|
Distillates and distillate
blendstocks
|
36 %
|
|
32 %
|
|
34 %
|
|
32 %
|
Chemicals
|
1 %
|
|
2 %
|
|
1 %
|
|
2 %
|
Other
|
21 %
|
|
21 %
|
|
24 %
|
|
20 %
|
Total
yield
|
102 %
|
|
99 %
|
|
102 %
|
|
99 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Operating Information - West Coast (Torrance)
|
|
|
|
|
|
|
|
Production (bpd in thousands)
|
178.3
|
|
181.5
|
|
173.6
|
|
139.9
|
Crude oil and feedstocks throughput (bpd in thousands)
|
173.0
|
|
176.9
|
|
169.8
|
|
139.5
|
Total crude oil and feedstocks throughput (millions of barrels)
|
15.9
|
|
16.3
|
|
61.9
|
|
50.9
|
Gross margin per barrel of throughput
|
$ 5.09
|
|
$ 4.26
|
|
$ 2.33
|
|
$ 2.84
|
Gross refining margin, excluding special items, per barrel of throughput
(Note 4, Note 10)
|
$ 10.57
|
|
$ 10.24
|
|
$ 11.60
|
|
$ 11.80
|
Refinery operating expense, per barrel of throughput (Note 11)
|
$ 7.61
|
|
$ 6.85
|
|
$ 7.61
|
|
$ 9.35
|
Crude and feedstocks (% of total throughput) (Note 12):
|
|
|
|
|
|
|
|
Heavy
|
78 %
|
|
77 %
|
|
81 %
|
|
74 %
|
Medium
|
10 %
|
|
7 %
|
|
7 %
|
|
8 %
|
Other feedstocks and blends
|
12 %
|
|
16 %
|
|
12 %
|
|
18 %
|
Total
throughput
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
Yield (% of total throughput):
|
|
|
|
|
|
|
|
Gasoline and gasoline blendstocks
|
60 %
|
|
62 %
|
|
59 %
|
|
64 %
|
Distillates and distillate
blendstocks
|
28 %
|
|
27 %
|
|
28 %
|
|
22 %
|
Other
|
15 %
|
|
14 %
|
|
15 %
|
|
14 %
|
Total
yield
|
103 %
|
|
103 %
|
|
102 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 thousands, except per barrel amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
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
|
$ 6,292,874
|
|
$ 81.16
|
|
$ 6,535,988
|
|
$ 81.58
|
|
Less: Cost of Sales
|
6,650,832
|
|
85.78
|
|
6,206,848
|
|
77.47
|
|
Consolidated gross margin
|
$ (357,958)
|
|
$ (4.62)
|
|
$ 329,140
|
|
$ 4.11
|
|
Reconciliation of consolidated gross margin to gross refining
margin:
|
|
|
|
|
|
|
|
|
Consolidated gross margin
|
$ (357,958)
|
|
$ (4.62)
|
|
$ 329,140
|
|
$ 4.11
|
|
|
Add: PBFX operating expense
|
26,983
|
|
0.35
|
|
19,280
|
|
0.24
|
|
|
Add: PBFX depreciation expense
|
8,624
|
|
0.11
|
|
7,159
|
|
0.09
|
|
|
Less: Revenues of PBFX
|
(80,045)
|
|
(1.03)
|
|
(66,513)
|
|
(0.83)
|
|
|
Add: Refinery operating expense (Note 16)
|
430,951
|
|
5.56
|
|
401,683
|
|
5.01
|
|
|
Add: Refinery depreciation expense
|
86,749
|
|
1.12
|
|
73,033
|
|
0.91
|
|
Gross refining margin
|
$ 115,304
|
|
$ 1.49
|
|
$ 763,782
|
|
$ 9.53
|
|
Special Items (Note 4):
|
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM inventory adjustment
|
651,734
|
|
8.41
|
|
(197,589)
|
|
(2.47)
|
|
|
Add: Early railcar return expense
|
7,742
|
|
0.10
|
|
—
|
|
—
|
|
Gross refining margin excluding special items
|
$ 774,780
|
|
$ 10.00
|
|
$ 566,193
|
|
$ 7.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
|
|
Year Ended
|
|
|
|
|
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
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
|
$ 27,186,093
|
|
$ 87.67
|
|
$ 21,786,637
|
|
$ 73.92
|
|
Less: Cost of Sales
|
26,583,478
|
|
85.73
|
|
20,826,048
|
|
70.67
|
|
Consolidated gross margin
|
$ 602,615
|
|
$ 1.94
|
|
$ 960,589
|
|
$ 3.25
|
|
Reconciliation of consolidated gross margin to gross refining
margin:
|
|
|
|
|
|
|
|
|
Consolidated gross margin
|
$ 602,615
|
|
$ 1.94
|
|
$ 960,589
|
|
$ 3.25
|
|
|
Add: PBFX operating expense
|
84,410
|
|
0.27
|
|
66,443
|
|
0.23
|
|
|
Add: PBFX depreciation expense
|
29,417
|
|
0.09
|
|
23,721
|
|
0.08
|
|
|
Less: Revenues of PBFX
|
(281,511)
|
|
(0.91)
|
|
(254,813)
|
|
(0.86)
|
|
|
Add: Refinery operating expense (Note 16)
|
1,654,749
|
|
5.34
|
|
1,626,440
|
|
5.52
|
|
|
Add: Refinery depreciation expense
|
329,709
|
|
1.06
|
|
254,271
|
|
0.86
|
|
Gross refining margin
|
$ 2,419,389
|
|
$ 7.79
|
|
$ 2,676,651
|
|
$ 9.08
|
|
Special Items (Note 4):
|
|
|
|
|
|
|
|
|
|
Add: Non-cash LCM inventory adjustment
|
351,278
|
|
1.13
|
|
(295,532)
|
|
(1.00)
|
|
|
Add: Early railcar return expense
|
52,313
|
|
0.17
|
|
—
|
|
—
|
|
Gross refining margin excluding special items
|
$ 2,822,980
|
|
$ 9.09
|
|
$ 2,381,119
|
|
$ 8.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 our annualized statutory corporate
tax rate of approximately 26.0% and 39.6% for the 2018 and 2017 periods, respectively, applied to net income (loss)
attributable to noncontrolling interests for all periods presented. The adjustment assumes the full exchange of existing
PBF LLC Series A Units as described in footnote 2. Our statutory tax rates were reduced in 2018 as a result of the Tax
Cuts and Jobs Act (the "TCJA") enactment.
|
|
(4) The Non-GAAP measures presented include adjusted fully-converted net
income excluding special items, income from operations excluding special items, EBITDA excluding special items and gross
refining margin excluding special items. Special items presented for the year ended December 31, 2018 relate to a lower
of cost or market ("LCM") inventory adjustment, changes in the Tax Receivable Agreement liability, gain on the sale of
assets related to the Torrance land sale and charges associated with the early return of certain leased railcars. Special
items for the year ended December 31, 2017 relate to an LCM inventory adjustment, changes in the Tax Receivable Agreement
liability, debt extinguishment costs, a net tax benefit related to the TCJA enactment and a net tax expense associated
with the remeasurement of the Tax Receivable Agreement associated deferred tax assets, 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 thousands):
|
|
|
2018
|
|
2017
|
January 1,
|
$ 300,456
|
|
$ 595,988
|
September 30,
|
—
|
|
498,045
|
December 31,
|
651,734
|
|
300,456
|
|
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
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December 31,
|
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net LCM inventory adjustment (charge)
benefit in income (loss) from operations
|
|
$ (651,734)
|
|
$ 197,589
|
|
$ (351,278)
|
|
$ 295,532
|
Net LCM inventory adjustment (charge)
benefit in net income (loss)
|
|
(482,283)
|
|
119,326
|
|
(259,946)
|
|
178,475
|
|
|
|
|
|
|
|
|
|
|
Change in Tax Receivable Agreement liability- During the three
months and year ended December 31, 2018 we recorded a change in the Tax Receivable Agreement liability that increased
income before income taxes by $6.1 million and $13.9 million ($4.5 million and $10.3 million, net of tax), respectively.
During the three months and year ended December 31, 2017 PBF Energy recorded a change in the Tax Receivable
Agreement liability that increased income before taxes by $250.4 million and $250.9 million ($151.2 million and $151.5
million, net of tax), respectively. The changes in the Tax Receivable Agreement liabilities reflect charges or benefits
attributable to changes in PBF Energy's obligation under the Tax Receivable Agreement due to factors out of our control
such as changes in tax rates.
|
|
Gain on Torrance land sale- During the year ended December 31, 2018
we recorded a gain on the sale of a parcel of real property acquired as part of the Torrance refinery, but not part of
the refinery itself. The gain increased income from operations and net income by $43.8 million and $32.4 million,
respectively. There was no such gain in the year ended December 31, 2017.
|
|
Early Return of Railcars- During the three months ended and year
ended December 31, 2018 we recognized certain expenses within Cost of sales associated with the voluntary early return of
certain leased railcars. These charges decreased income from operations by $7.7 million and $52.3 million ($5.7 million
and $38.7 million, net of tax), respectively. There were no such expenses in the year ended December 31, 2017.
|
|
Debt Extinguishment Costs- During the year ended December 31, 2017,
we recorded pre-tax debt extinguishment costs of $25.5 million related to the redemption of the 2020 Senior Secured
Notes. These nonrecurring charges decreased net income by $15.4 million for the year ended December 31, 2017. There were
no such costs in the year ended December 31, 2018.
|
|
TCJA Enactment- The Company made a one-time adjustment in 2017 to
deferred tax assets and liabilities in relation to the TCJA. The prior year net income tax expense impact of $20.2
million consists of a net tax expense of $193.5 million associated with the remeasurement of the Tax Receivable Agreement
associated deferred tax assets and a net tax benefit of $173.3 million for the reduction of our deferred tax liabilities
as a result of the TCJA.
|
|
Recomputed Income taxes on special items - The income tax impact of
the special items, other than TCJA related items, were calculated using the tax rates shown in footnote 3
above.
|
|
(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 and years ended December 31,
2018 and 2017, respectively. Common stock equivalents exclude the effects of options and warrants to purchase 1,278,242
and 1,293,242 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the
three months and year ended December 31, 2018, respectively. Common stock equivalents exclude the effects of options
and warrants to purchase 3,537,500 and 6,820,275 shares of PBF Energy Class A common stock and PBF LLC Series A Units
because they are anti-dilutive for the three months and year ended December 31, 2017, respectively. For periods
showing a net loss, all common stock equivalents 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. 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 December 31,
2018, the Refining segment includes the operations of our oil refineries and related facilities in Delaware City,
Delaware, Paulsboro, New Jersey, Toledo, Ohio, New Orleans, Louisiana and Torrance, 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.
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PBFX currently does not generate significant third party revenue and
intersegment related-party revenues are eliminated in consolidation. From a PBF Energy perspective, our chief operating
decision maker evaluates the Logistics segment as a whole without regard to any of PBFX's individual operating
segments.
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(9) As reported by Platts.
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(10) Gross refining margin and gross refining margin per barrel of
throughput are Non-GAAP measures because they exclude refinery operating expenses, depreciation and amortization and
gross margin of PBFX. Gross refining margin per barrel is gross refining margin, divided by total crude and feedstocks
throughput. We believe they are important measures of operating performance and provide useful information to investors
because gross refining margin per barrel is a helpful metric comparison to the industry refining margin benchmarks shown
in the Market Indicators Tables, as the industry benchmarks do not include a charge for refinery operating expenses and
depreciation. Other companies in our industry may not calculate gross refining margin and gross refining margin per
barrel in the same manner. Gross refining margin and gross refining margin per barrel of throughput have their
limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our
results as reported under GAAP.
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(11) Represents refinery operating expenses, including corporate-owned
logistics assets, excluding depreciation and amortization, divided by total crude oil and feedstocks
throughput.
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(12) We define heavy crude oil as crude oil with American Petroleum
Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with API gravity between 24 and 35
degrees. We define light crude oil as crude oil with API gravity higher than 35 degrees.
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(13) The total debt to capitalization ratio is calculated by dividing total
debt by the sum of total debt and total equity. This ratio is a measurement that management believes is useful to
investors in analyzing our leverage. Net debt and the net debt to capitalization ratio are Non-GAAP measures. Net debt is
calculated by subtracting cash and cash equivalents from total debt. We believe these measurements are also useful to
investors since we have the ability to and may decide to use a portion of our cash and cash equivalents to retire or pay
down our debt. Additionally, as described in footnote 4 above, we have also presented the total debt to capitalization
and net debt to capitalization ratios excluding the cumulative effects of special items on equity.
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December 31,
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December 31,
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2018
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2017
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(in thousands)
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Total debt
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$ 1,933,694
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$ 2,191,650
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Total equity
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3,248,479
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2,902,949
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Total capitalization
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$ 5,182,173
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$ 5,094,599
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Total debt
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$ 1,933,694
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$ 2,191,650
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Total equity excluding special items
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3,551,677
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2,950,154
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Total capitalization excluding special items
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$ 5,485,371
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$ 5,141,804
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Total equity
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$ 3,248,479
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$ 2,902,949
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Special Items (Note 4)
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Add: Non-cash LCM inventory adjustment
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651,734
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300,456
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Add: Change in Tax Receivable Agreement
liability
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(290,323)
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(276,430)
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Add: Debt extinguishment costs
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25,451
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25451
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Add: Gain on Torrance land sale
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(43,761)
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—
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Add: Early railcar return expense
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52,313
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—
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Less: Recomputed income taxes on special
items
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(112,369)
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(22,425)
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Add: Net tax expense on TCJA related special
items
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20,153
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20,153
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Net impact of special items to
equity
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303,198
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47,205
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Total equity excluding special items
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$ 3,551,677
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$ 2,950,154
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|
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|
|
|
|
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Total debt
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$ 1,933,694
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$ 2,191,650
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Less: Cash and cash equivalents
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597,286
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573,021
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Net Debt
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$ 1,336,408
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$ 1,618,629
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|
|
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|
|
|
|
|
|
|
Total debt to capitalization ratio
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37 %
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43 %
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Total debt to capitalization ratio, excluding special items
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35 %
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43 %
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Net debt to capitalization ratio
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29 %
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36 %
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Net debt to capitalization ratio, excluding special items
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27 %
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35 %
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(14) The Logistics segment includes 100% of the income from operations of
the Torrance Valley Pipeline Company LLC ("TVPC"), as TVPC is consolidated by PBFX. PBFX records net income attributable
to noncontrolling interest for the 50% equity interest in TVPC held by PBF Holding. PBF Holding (included in the Refining
segment) records equity income in investee related to its 50% noncontrolling ownership interest in TVPC. For the purposes
of the consolidated PBF Energy financial statements, PBF Holding's equity income in investee and PBFX's net income
attributable to noncontrolling interest eliminate in consolidation.
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(15) The Logistics segment includes 100% of the assets of TVPC as TVPC is
consolidated by PBFX. PBFX records a noncontrolling interest for the 50% equity interest in TVPC held by PBF Holding. PBF
Holding (included in the Refining segment) records an equity investment in TVPC reflecting its noncontrolling ownership
interest. For the purposes of the consolidated PBF Energy financial statements, PBFX's noncontrolling interest in TVPC
and PBF Holding's equity investment in TVPC eliminate in consolidation.
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(16) The Company adopted ASU 2017-07 effective January 1, 2018. The new
guidance requires the bifurcation of net periodic benefit cost. The service cost component is presented within Income
from operations, while the other components are reported separately outside of operations. This guidance was applied
retrospectively in the consolidated statements of operations.
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The following table shows the effect of the adoption of ASU 2017-07 on our
financial statements (in thousands):
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Three Months Ended
December 31,
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Year Ended December 31,
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2018
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2017
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2018
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2017
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Refining segment income (expense) related to other
non-service components of net periodic benefit cost
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$ 373
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$ (919)
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$ 1,488
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$ (1,176)
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Corporate expense related to other non-service
components of net periodic benefit cost
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(97)
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(178)
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(379)
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(226)
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Total income (expense) related to other non-service
components of net periodic benefit cost
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$ 276
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$ (1,097)
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$ 1,109
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$ (1,402)
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(17) For the three months ended December 31, 2018, the Logistics segment
includes capital expenditures of $75.0 million related to the PBFX acquisition of the East Coast Storage Assets on
October 1, 2018. For the years ended December 31, 2018 and December 31, 2017, the Logistics segment also includes capital
expenditures of $58.4 million for the PBFX acquisition of the Knoxville Terminals on April 16, 2018 and $10.1 million for
the PBFX acquisition of the Toledo Products Terminal on April 17, 2017.
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SOURCE PBF Energy Inc.