PBF Energy Announces First Quarter 2024 Results and Declares Dividend of $0.25 per Share
PBF Energy Inc. reported first quarter 2024 income from operations of $145.1 million, a decrease from the first quarter of 2023. The company also declared a quarterly dividend of $0.25 per share and repurchased approximately 2.6 million shares for $125 million. Net income for the first quarter of 2024 was $107.5 million, compared to $385.9 million in the same period in 2023. PBF remains focused on operational execution, balance sheet quality, and long-term shareholder value.
PBF Energy reported a successful start in 2024 with planned maintenance completed in key regions, ensuring clean refinery operations for the rest of the year.
The company prioritizes capital allocation to initiatives that enhance long-term shareholder value and announced a $0.25 per share dividend along with share repurchases.
St. Bernard Renewables achieved significant renewable diesel production in the first quarter, benefiting from a favorable Carbon Intensity score, improving project economics in the California market.
PBF Energy's first quarter 2024 income from operations decreased compared to the same period in 2023, reflecting a challenging operational environment.
The net income for the first quarter of 2024 also saw a significant decline from the previous year, impacting earnings per share and overall financial performance.
The company's refining capital expenditures for 2024 are projected to be in the $800 to $850 million range, indicating substantial investment requirements for operational improvements.
Insights
The announcement of PBF Energy's first quarter results highlights a significant decrease in income from operations compared to the same period the previous year, which could potentially worry investors about the company's current profitability and efficiency. This decrease is substantial, moving from $532.4 million to $145.1 million in income from operations and could be indicative of broader challenges within the sector or company-specific issues.
The share repurchase program, involving the buyback of approximately 2.6 million shares for approximately
Investors should consider the context of the industry's seasonality, which affects product markets and may influence PBF Energy's performance. The mention of ongoing and planned maintenance could be a double-edged sword; it may lead to efficiency gains and greater future capacity utilization, but also implies potential short-term production limitations.
The operational updates provided by PBF Energy offer insights into its strategic position. Their renewable diesel production, through SBR and the approval of a Provisional Application to CARB, with Provisional Carbon Intensity (CI) scores, suggests a pivot towards more sustainable energy sources. This move could improve PBF's market positioning and attract sustainability-focused investors, given the increased demand for low-CI feedstocks and renewable energy products.
Furthermore, the projected refining capital expenditures of
From an operational perspective, PBF Energy's focus on safety and reliability is critical in the energy sector, particularly for refineries where hazards can impact both operations and public perception. Their strategic plan includes turnarounds, which are standard industry practice for maintenance and upgrades, thereby potentially increasing operational efficiency.
However, these turnarounds can lead to reduced production capacity in the short term, which may affect the stock price. Additionally, investors should note the seasonal shifts and their impact on market conditions, especially as PBF Energy approaches the summer driving season, which traditionally sees an uptick in fuel demand.
- First quarter income from operations of
(excluding special items, first quarter income from operations of$145.1 million )$143.9 million - Announces quarterly dividend of
per share$0.25 - First quarter 2024 share repurchases of approximately 2.6 million shares for approximately
$125 million
The company reported first quarter 2024 net income of
Matt Lucey, PBF Energy's President and CEO, said, "2024 is off to a positive start. We undertook significant planned maintenance in our East Coast and Mid-continent regions and, following that work, have a clean run at those refineries for the remainder of the year. In the near-term, we have planned maintenance during the second quarter in
Mr. Lucey continued, "Looking ahead, our balance sheet and the safe, reliable operations of all our assets remain our primary focus. We experienced somewhat normal seasonality in the product markets at the end of 2023 and through the early part of the first quarter. Industry maintenance and seasonal shifts in demand have improved market conditions as we approach the summer driving season. We continue to prioritize capital allocation to the opportunities that promote the greatest long-term shareholder value and, to that end, we announced a
PBF Energy Inc. Declares Dividend
The company announced today that it will pay a quarterly dividend of
St. Bernard Renewables
SBR averaged approximately 18,000 barrels per day of renewable diesel production in the first quarter. In March, SBR's Provisional Application to CARB was approved and SBR is now benefiting from a Provisional Carbon Intensity ("CI") scores that reflect the lower-CI feedstocks being processed. This will result in improved project economics related to the
PBF Strategic Update and Outlook
PBF remains committed to the safety and reliability of our operations. Through successful operational execution, we seek to maintain the quality of our balance sheet and preserve the ability of our assets to continue supporting our long-term strategic goal of increasing the value of our company. At quarter-end, we had approximately
Our operational execution and balance sheet improvements have generated significant value for our investors in the near-term and, more importantly, demonstrate our commitment to fiscal discipline, long-term value and shareholder returns.
As always, the safety and reliability of our core operations are paramount. We continue investing in all our assets and expect full-year 2024 refining capital expenditures to be in the
Timing of planned maintenance and throughput ranges provided reflect current expectations and are subject to change based on market conditions and other factors. Second quarter throughput expectations are included in the table below.
Expected throughput ranges (barrels per day) | ||
Second Quarter 2024 | ||
Low | High | |
East Coast | 260,000 | 280,000 |
Mid-continent | 140,000 | 150,000 |
Gulf Coast | 170,000 | 180,000 |
West Coast | 300,000 | 320,000 |
Total | 870,000 | 930,000 |
Guidance provided constitutes forward-looking information and is based on current PBF Energy operating plans, company assumptions, and company configuration. Year-to-date actual throughput and quarterly guidance should be used to adjust full-year expectations. All figures and timelines are subject to change based on a variety of factors, including market and macroeconomic factors, as well as company strategic decision-making and overall company performance.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Non-GAAP Measures
This earnings release, and the discussion during the management conference call, may include references to Non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Fully-Converted Net Income, Adjusted Fully-Converted Net Income excluding special items, Adjusted Fully-Converted Net Income per fully-exchanged, fully-diluted share, Income from operations excluding special items, gross refining margin, gross refining margin excluding special items, gross refining margin per barrel of throughput, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization), EBITDA excluding special items, Adjusted EBITDA, net debt, net debt to capitalization ratio and net debt to capitalization ratio excluding special items. PBF believes that Non-GAAP financial measures provide useful information about its operating performance and financial results. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBF's Non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the Non-GAAP measures used in this release and reconciliations to the most directly comparable GAAP measures.
Conference Call Information
PBF Energy's senior management will host a conference call and webcast regarding quarterly results and other business matters on Thursday, May 2, 2024, at 8:30 a.m. ET. The call is being webcast and can be accessed at PBF Energy's website, http://www.pbfenergy.com. The call can also be accessed by dialing (800) 579-2543 or (785) 424-1789; Conference ID: PBF1Q. The audio replay will be available approximately two hours after the end of the call and will be available through the company's website.
Forward-Looking Statements
Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the Company's expectations with respect to its plans, objectives, expectations and intentions with respect to future earnings and operations, including those of our 50-50 equity method investment in SBR. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the Company's control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the Company's filings with the SEC, our ability to operate safely, reliably, sustainably and in an environmentally responsible manner; our ability to successfully diversify our operations; our ability to make acquisitions or investments, including in renewable diesel production, and to realize the benefits from such acquisitions or investments; our ability to successfully manage the operations of our 50-50 equity method investment in SBR; our expectations with respect to our capital spending and turnaround projects; risks associated with our obligation to buy Renewable Identification Numbers and related market risks related to the price volatility thereof; the possibility that we might reduce or not pay further dividends in the future; certain developments in the global oil markets and their impact on the global macroeconomic conditions; risks relating to the securities markets generally; the impact of changes in inflation, interest rates and capital costs; and the impact of market conditions, unanticipated developments, regulatory approvals, changes in laws and other events that negatively impact the Company. All forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is one of the largest independent refiners in
PBF ENERGY INC. AND SUBSIDIARIES | ||||||
EARNINGS RELEASE TABLES | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
(Unaudited, in millions, except share and per share data) | ||||||
Three Months Ended | ||||||
March 31, | ||||||
2024 | 2023 | |||||
Revenues | $ 8,645.6 | $ 9,295.0 | ||||
Cost and expenses: | ||||||
Cost of products and other | 7,597.9 | 7,795.3 | ||||
Operating expenses (excluding depreciation and amortization expense as reflected below) | 688.1 | 781.4 | ||||
Depreciation and amortization expense | 141.4 | 141.9 | ||||
Cost of sales | 8,427.4 | 8,718.6 | ||||
General and administrative expenses (excluding depreciation and amortization expense as reflected below) | 63.2 | 60.0 | ||||
Depreciation and amortization expense | 3.2 | 1.9 | ||||
Change in fair value of contingent consideration, net | (3.3) | (16.3) | ||||
Equity loss in investee | 0.8 | — | ||||
Loss on formation of SBR equity method investment | 8.7 | — | ||||
Loss (gain) on sale of assets | 0.5 | (1.6) | ||||
Total cost and expenses | 8,500.5 | 8,762.6 | ||||
Income from operations | 145.1 | 532.4 | ||||
Other income (expense): | ||||||
Interest expense (net of interest income of | (10.5) | (18.7) | ||||
Change in fair value of catalyst obligations | — | 0.7 | ||||
Other non-service components of net periodic benefit cost | 0.6 | 0.3 | ||||
Other expense | — | (2.3) | ||||
Income before income taxes | 135.2 | 512.4 | ||||
Income tax expense | 27.7 | 126.5 | ||||
Net income | 107.5 | 385.9 | ||||
Less: net income attributable to noncontrolling interest | 0.9 | 3.8 | ||||
Net income attributable to PBF Energy Inc. stockholders | $ 106.6 | $ 382.1 | ||||
Net income available to Class A common stock per share: | ||||||
Basic | $ 0.89 | $ 2.97 | ||||
Diluted | $ 0.86 | $ 2.86 | ||||
Weighted-average shares outstanding-basic | 119,864,653 | 128,787,779 | ||||
Weighted-average shares outstanding-diluted | 124,670,049 | 134,499,277 | ||||
Dividends per common share | $ 0.25 | $ 0.20 | ||||
Adjusted fully-converted net income and adjusted fully-converted net income per fully exchanged, fully diluted shares outstanding (Note 1): | ||||||
Adjusted fully-converted net income | $ 107.3 | $ 384.7 | ||||
Adjusted fully-converted net income per fully exchanged, fully diluted share | $ 0.86 | $ 2.86 | ||||
Adjusted fully-converted shares outstanding - diluted (Note 6) | 124,670,049 | 134,499,277 | ||||
See Footnotes to Earnings Release Tables |
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER | |||||||||
(Unaudited, in millions, except share and per share data) | |||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED FULLY-CONVERTED NET INCOME AND ADJUSTED FULLY-CONVERTED NET INCOME EXCLUDING SPECIAL ITEMS (Note 1) | Three Months Ended | ||||||||
March 31, | |||||||||
2024 | 2023 | ||||||||
Net income attributable to PBF Energy Inc. stockholders | $ 106.6 | $ 382.1 | |||||||
Less: Income allocated to participating securities | — | — | |||||||
Income available to PBF Energy Inc. stockholders - basic | 106.6 | 382.1 | |||||||
Add: Net income attributable to noncontrolling interest (Note 2) | 0.9 | 3.5 | |||||||
Less: Income tax expense (Note 3) | (0.2) | (0.9) | |||||||
Adjusted fully-converted net income | $ 107.3 | $ 384.7 | |||||||
Special items (Note 4): | |||||||||
Add: LCM inventory adjustment - SBR | (6.6) | — | |||||||
Add: Change in fair value of contingent consideration, net | (3.3) | (16.3) | |||||||
Add: Gain on land sales | — | (1.7) | |||||||
Add: Loss on formation of SBR equity method investment | 8.7 | — | |||||||
Less: Recomputed income tax on special items (Note 3) | 0.3 | 4.7 | |||||||
Adjusted fully-converted net income excluding special items | $ 106.4 | $ 371.4 | |||||||
Weighted-average shares outstanding of PBF Energy Inc. | 119,864,653 | 128,787,779 | |||||||
Conversion of PBF LLC Series A Units (Note 5) | 862,780 | 910,457 | |||||||
Common stock equivalents (Note 6) | 3,942,616 | 4,801,041 | |||||||
Fully-converted shares outstanding - diluted | 124,670,049 | 134,499,277 | |||||||
Adjusted fully-converted net income per fully exchanged, fully diluted shares outstanding (Note 6) | $ 0.86 | $ 2.86 | |||||||
Adjusted fully-converted net income excluding special items per fully exchanged, fully diluted shares outstanding (Note 4, 6) | $ 0.85 | $ 2.76 | |||||||
Three Months Ended | |||||||||
RECONCILIATION OF INCOME FROM OPERATIONS TO INCOME FROM OPERATIONS EXCLUDING SPECIAL ITEMS | March 31, | ||||||||
2024 | 2023 | ||||||||
Income from operations | $ 145.1 | $ 532.4 | |||||||
Special Items (Note 4): | |||||||||
Add: LCM inventory adjustment - SBR | (6.6) | — | |||||||
Add: Change in fair value of contingent consideration, net | (3.3) | (16.3) | |||||||
Add: Gain on land sales | — | (1.7) | |||||||
Add: Loss on formation of SBR equity method investment | 8.7 | — | |||||||
Income from operations excluding special items | $ 143.9 | $ 514.4 | |||||||
See Footnotes to Earnings Release Tables |
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER | ||||||||||
EBITDA RECONCILIATIONS (Note 7) | ||||||||||
(Unaudited, in millions) | ||||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
RECONCILIATION OF NET INCOME TO EBITDA AND EBITDA EXCLUDING SPECIAL ITEMS | 2024 | 2023 | ||||||||
Net income | $ 107.5 | $ 385.9 | ||||||||
Add: Depreciation and amortization expense | 144.6 | 143.8 | ||||||||
Add: Interest expense, net | 10.5 | 18.7 | ||||||||
Add: Income tax expense | 27.7 | 126.5 | ||||||||
EBITDA | $ 290.3 | $ 674.9 | ||||||||
Special Items (Note 4): | ||||||||||
Add: LCM inventory adjustment - SBR | (6.6) | — | ||||||||
Add: Change in fair value of contingent consideration, net | (3.3) | (16.3) | ||||||||
Add: Gain on land sales | — | (1.7) | ||||||||
Add: Loss on formation of SBR equity method investment | 8.7 | — | ||||||||
EBITDA excluding special items | $ 289.1 | $ 656.9 | ||||||||
Three Months Ended | ||||||||||
March 31, | ||||||||||
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA | 2024 | 2023 | ||||||||
EBITDA | $ 290.3 | $ 674.9 | ||||||||
Add: Stock-based compensation | 12.4 | 9.2 | ||||||||
Add: Change in fair value of catalyst obligations | — | (0.7) | ||||||||
Add: LCM inventory adjustment - SBR (Note 4) | (6.6) | — | ||||||||
Add: Change in fair value of contingent consideration, net (Note 4) | (3.3) | (16.3) | ||||||||
Add: Gain on land sales (Note 4) | — | (1.7) | ||||||||
Add: Loss on formation of SBR equity method investment (Note 4) | 8.7 | — | ||||||||
Adjusted EBITDA | $ 301.5 | $ 665.4 | ||||||||
See Footnotes to Earnings Release Tables |
PBF ENERGY INC. AND SUBSIDIARIES | |||||||
EARNINGS RELEASE TABLES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||||
(Unaudited, in millions) | |||||||
March 31, | December 31, | ||||||
2024 | 2023 | ||||||
Balance Sheet Data: | |||||||
Cash and cash equivalents | $ 1,441.5 | $ 1,783.5 | |||||
Inventories | 2,891.3 | 3,183.1 | |||||
Total assets | 13,808.2 | 14,387.8 | |||||
Total debt | 1,248.6 | 1,245.9 | |||||
Total equity | 6,598.2 | 6,631.3 | |||||
Total equity excluding special items (Note 4, 13) | $ 5,523.4 | $ 5,557.4 | |||||
Total debt to capitalization ratio (Note 13) | 16 % | 16 % | |||||
Total debt to capitalization ratio, excluding special items (Note 13) | 18 % | 18 % | |||||
Net debt to capitalization ratio* (Note 13) | (3) % | (9) % | |||||
Net debt to capitalization ratio, excluding special items* (Note 13) | (4) % | (11) % | |||||
* Negative ratio exists as of March 31, 2024 and December 31, 2023 as cash is in excess of debt. | |||||||
SUMMARIZED STATEMENT OF CASH FLOW DATA | |||||||
(Unaudited, in millions) | |||||||
Three Months Ended March 31, | |||||||
2024 | 2023 | ||||||
Cash flows provided by operating activities | $ 15.8 | $ 437.6 | |||||
Cash flows used in investing activities | (284.4) | (378.7) | |||||
Cash flows used in financing activities | (73.4) | (646.4) | |||||
Net change in cash and cash equivalents | (342.0) | (587.5) | |||||
Cash and cash equivalents, beginning of period | 1,783.5 | 2,203.6 | |||||
Cash and cash equivalents, end of period | $ 1,441.5 | $ 1,616.1 | |||||
See Footnotes to Earnings Release Tables |
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||
EARNINGS RELEASE TABLES | |||||||||
CONSOLIDATING FINANCIAL INFORMATION (Note 8) | |||||||||
(Unaudited, in millions) | |||||||||
Three Months Ended March 31, 2024 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Revenues | $ 8,636.4 | $ 96.1 | $ — | $ (86.9) | $ 8,645.6 | ||||
Depreciation and amortization expense | 132.3 | 9.1 | 3.2 | — | 144.6 | ||||
Income (loss) from operations (1) | 170.6 | 45.1 | (70.6) | — | 145.1 | ||||
Interest (income) expense, net | (4.1) | (0.6) | 15.2 | — | 10.5 | ||||
Capital expenditures (2) | 283.1 | 1.1 | 0.5 | — | 284.7 | ||||
Three Months Ended March 31, 2023 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Revenues | $ 9,285.5 | $ 98.5 | $ — | $ (89.0) | $ 9,295.0 | ||||
Depreciation and amortization expense | 132.9 | 9.0 | 1.9 | — | 143.8 | ||||
Income (loss) from operations | 525.7 | 49.7 | (43.0) | — | 532.4 | ||||
Interest (income) expense, net | (4.1) | 3.7 | 19.1 | — | 18.7 | ||||
Capital expenditures (2) | 379.2 | 2.7 | 1.2 | — | 383.1 | ||||
Balance at March 31, 2024 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Total Assets (3) | $ 12,036.1 | $ 794.2 | $ 1,014.8 | $ (36.9) | $ 13,808.2 | ||||
Balance at December 31, 2023 | |||||||||
Refining | Logistics | Corporate | Eliminations | Consolidated | |||||
Total Assets (3) | $ 12,590.6 | $ 816.8 | $ 1,024.1 | $ (43.7) | $ 14,387.8 | ||||
(1) Income (loss) from operations within Corporate for the three months ended March 31, 2024 includes an | |||||||||
(2) For the three months ended March 31, 2024 and March 31, 2023, the Company's refining segment included | |||||||||
(3) For the three months ended March 31, 2024 and the year ended December 31, 2023, Corporate assets include the Company's Equity method investment in SBR of | |||||||||
See Footnotes to Earnings Release Tables |
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||
EARNINGS RELEASE TABLES | |||||||||
MARKET INDICATORS AND KEY OPERATING INFORMATION | |||||||||
(Unaudited) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
Market Indicators (dollars per barrel) (Note 9) | 2024 | 2023 | |||||||
Dated Brent crude oil | $ 83.13 | $ 81.09 | |||||||
West Texas Intermediate (WTI) crude oil | $ 77.01 | $ 75.97 | |||||||
Light Louisiana Sweet (LLS) crude oil | $ 79.72 | $ 78.90 | |||||||
Alaska North Slope (ANS) crude oil | $ 81.33 | $ 79.01 | |||||||
Crack Spreads: | |||||||||
Dated Brent (NYH) 2-1-1 | $ 21.05 | $ 31.53 | |||||||
WTI ( | $ 17.15 | $ 29.07 | |||||||
LLS (Gulf Coast) 2-1-1 | $ 24.46 | $ 34.12 | |||||||
ANS (West Coast-LA) 4-3-1 | $ 29.00 | $ 38.45 | |||||||
ANS (West Coast-SF) 3-2-1 | $ 27.93 | $ 39.16 | |||||||
Crude Oil Differentials: | |||||||||
Dated Brent (foreign) less WTI | $ 6.11 | $ 5.12 | |||||||
Dated Brent less Maya (heavy, sour) | $ 13.65 | $ 18.42 | |||||||
Dated Brent less WTS (sour) | $ 5.79 | $ 5.61 | |||||||
Dated Brent less ASCI (sour) | $ 6.31 | $ 7.39 | |||||||
WTI less WCS (heavy, sour) | $ 17.57 | $ 19.30 | |||||||
WTI less Bakken (light, sweet) | $ 2.70 | $ (2.90) | |||||||
WTI less Syncrude (light, sweet) | $ 3.81 | $ (3.04) | |||||||
WTI less LLS (light, sweet) | $ (2.70) | $ (2.93) | |||||||
WTI less ANS (light, sweet) | $ (4.31) | $ (3.04) | |||||||
Effective RIN basket price | $ 3.69 | $ 8.19 | |||||||
Natural gas (dollars per MMBTU) | $ 2.10 | $ 2.74 | |||||||
Key Operating Information | |||||||||
Production (barrels per day ("bpd") in thousands) | 909.5 | 859.2 | |||||||
Crude oil and feedstocks throughput (bpd in thousands) | 897.4 | 851.2 | |||||||
Total crude oil and feedstocks throughput (millions of barrels) | 81.7 | 76.6 | |||||||
Consolidated gross margin per barrel of throughput | $ 2.68 | $ 7.53 | |||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ 11.73 | $ 18.35 | |||||||
Refining operating expense, per barrel of throughput (Note 11) | $ 8.02 | $ 9.78 | |||||||
Crude and feedstocks (% of total throughput) (Note 12) | |||||||||
Heavy | 24 % | 28 % | |||||||
Medium | 44 % | 33 % | |||||||
Light | 16 % | 21 % | |||||||
Other feedstocks and blends | 16 % | 18 % | |||||||
Total throughput | 100 % | 100 % | |||||||
Yield (% of total throughput) | |||||||||
Gasoline and gasoline blendstocks | 48 % | 47 % | |||||||
Distillates and distillate blendstocks | 34 % | 34 % | |||||||
Lubes | 1 % | 1 % | |||||||
Chemicals | 1 % | 1 % | |||||||
Other | 17 % | 18 % | |||||||
Total yield | 101 % | 101 % | |||||||
See Footnotes to Earnings Release Tables |
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||
EARNINGS RELEASE TABLES | ||||||||
SUPPLEMENTAL OPERATING INFORMATION | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2024 | 2023 | |||||||
Supplemental Operating Information - East Coast Refining System ( | ||||||||
Production (bpd in thousands) | 308.7 | 325.2 | ||||||
Crude oil and feedstocks throughput (bpd in thousands) | 312.7 | 326.4 | ||||||
Total crude oil and feedstocks throughput (millions of barrels) | 28.5 | 29.4 | ||||||
Gross margin per barrel of throughput | $ 0.02 | $ 9.18 | ||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ 7.72 | $ 18.16 | ||||||
Refining operating expense, per barrel of throughput (Note 11) | $ 6.35 | $ 7.50 | ||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||
Heavy | 18 % | 17 % | ||||||
Medium | 43 % | 44 % | ||||||
Light | 19 % | 18 % | ||||||
Other feedstocks and blends | 20 % | 21 % | ||||||
Total throughput | 100 % | 100 % | ||||||
Yield (% of total throughput): | ||||||||
Gasoline and gasoline blendstocks | 35 % | 40 % | ||||||
Distillates and distillate blendstocks | 35 % | 37 % | ||||||
Lubes | 2 % | 2 % | ||||||
Chemicals | 1 % | 1 % | ||||||
Other | 26 % | 20 % | ||||||
Total yield | 99 % | 100 % | ||||||
Supplemental Operating Information - Mid-Continent ( | ||||||||
Production (bpd in thousands) | 114.4 | 93.5 | ||||||
Crude oil and feedstocks throughput (bpd in thousands) | 112.3 | 93.2 | ||||||
Total crude oil and feedstocks throughput (millions of barrels) | 10.2 | 8.4 | ||||||
Gross margin per barrel of throughput | $ 8.76 | $ (4.40) | ||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ 18.15 | $ 9.49 | ||||||
Refining operating expense, per barrel of throughput (Note 11) | $ 7.42 | $ 11.23 | ||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||
Medium | 41 % | 43 % | ||||||
Light | 56 % | 56 % | ||||||
Other feedstocks and blends | 3 % | 1 % | ||||||
Total throughput | 100 % | 100 % | ||||||
Yield (% of total throughput): | ||||||||
Gasoline and gasoline blendstocks | 57 % | 42 % | ||||||
Distillates and distillate blendstocks | 36 % | 33 % | ||||||
Chemicals | 4 % | 3 % | ||||||
Other | 5 % | 22 % | ||||||
Total yield | 102 % | 100 % | ||||||
See Footnotes to Earnings Release Tables |
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||
EARNINGS RELEASE TABLES | ||||||||
SUPPLEMENTAL OPERATING INFORMATION | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2024 | 2023 | |||||||
Supplemental Operating Information - Gulf Coast ( | ||||||||
Production (bpd in thousands) | 173.5 | 169.9 | ||||||
Crude oil and feedstocks throughput (bpd in thousands) | 170.8 | 169.1 | ||||||
Total crude oil and feedstocks throughput (millions of barrels) | 15.6 | 15.2 | ||||||
Gross margin per barrel of throughput | $ 5.99 | $ 12.80 | ||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ 12.36 | $ 19.96 | ||||||
Refining operating expense, per barrel of throughput (Note 11) | $ 5.52 | $ 6.42 | ||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||
Heavy | 8 % | 17 % | ||||||
Medium | 60 % | 30 % | ||||||
Light | 14 % | 38 % | ||||||
Other feedstocks and blends | 18 % | 15 % | ||||||
Total throughput | 100 % | 100 % | ||||||
Yield (% of total throughput): | ||||||||
Gasoline and gasoline blendstocks | 47 % | 42 % | ||||||
Distillates and distillate blendstocks | 36 % | 37 % | ||||||
Chemicals | 1 % | 2 % | ||||||
Other | 18 % | 19 % | ||||||
Total yield | 102 % | 100 % | ||||||
Supplemental Operating Information - West Coast ( | ||||||||
Production (bpd in thousands) | 312.9 | 270.6 | ||||||
Crude oil and feedstocks throughput (bpd in thousands) | 301.6 | 262.5 | ||||||
Total crude oil and feedstocks throughput (millions of barrels) | 27.4 | 23.6 | ||||||
Gross margin per barrel of throughput | $ (0.44) | $ 4.08 | ||||||
Gross refining margin, excluding special items, per barrel of throughput (Note 4, Note 10) | $ 13.15 | $ 20.70 | ||||||
Refining operating expense, per barrel of throughput (Note 11) | $ 11.38 | $ 14.25 | ||||||
Crude and feedstocks (% of total throughput) (Note 12): | ||||||||
Heavy | 49 % | 60 % | ||||||
Medium | 37 % | 18 % | ||||||
Other feedstocks and blends | 14 % | 22 % | ||||||
Total throughput | 100 % | 100 % | ||||||
Yield (% of total throughput): | ||||||||
Gasoline and gasoline blendstocks | 60 % | 60 % | ||||||
Distillates and distillate blendstocks | 31 % | 30 % | ||||||
Other | 13 % | 13 % | ||||||
Total yield | 104 % | 103 % | ||||||
See Footnotes to Earnings Release Tables |
PBF ENERGY INC. AND SUBSIDIARIES | |||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER | |||||||||||||
GROSS REFINING MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note 10) | |||||||||||||
(Unaudited, in millions, except per barrel amounts) | |||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||||
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 | $ 8,645.6 | $ 105.86 | $ 9,295.0 | $ 121.34 | |||||||||
Less: Cost of sales | 8,427.4 | 103.18 | 8,718.6 | 113.81 | |||||||||
Consolidated gross margin | $ 218.2 | $ 2.68 | $ 576.4 | $ 7.53 | |||||||||
Reconciliation of consolidated gross margin to gross refining margin: | |||||||||||||
Consolidated gross margin | $ 218.2 | $ 2.68 | $ 576.4 | $ 7.53 | |||||||||
Add: Logistics operating expense | 37.7 | 0.46 | 37.0 | 0.48 | |||||||||
Add: Logistics depreciation expense | 9.1 | 0.11 | 9.0 | 0.12 | |||||||||
Less: Logistics gross margin | (93.7) | (1.16) | (98.5) | (1.29) | |||||||||
Add: Refining operating expense | 654.7 | 8.02 | 749.0 | 9.78 | |||||||||
Add: Refining depreciation expense | 132.3 | 1.62 | 132.9 | 1.73 | |||||||||
Gross refining margin | $ 958.3 | $ 11.73 | $ 1,405.8 | $ 18.35 | |||||||||
Gross refining margin excluding special items | $ 958.3 | $ 11.73 | $ 1,405.8 | $ 18.35 | |||||||||
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 Class A common stock. | ||||||||||||||
(3) Represents an adjustment to reflect PBF Energy's estimated annualized statutory corporate tax rate of approximately | ||||||||||||||
(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 for the periods presented relate to our share of the SBR LCM inventory reserve, net changes in fair value of contingent consideration, gain on land sales, and changes in our gain on the formation of the SBR equity method investment, all as discussed further below. Additionally, the cumulative effects of all current and prior period special items on equity are shown in footnote 13.
Although we believe that Non-GAAP financial measures excluding the impact of special items provide useful supplemental information to investors regarding the results and performance of our business and allow for useful period-over-period comparisons, such Non-GAAP measures should only be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.
Special Items: | ||||||||||||||
SBR LCM inventory adjustment - The lower of cost or market ("LCM") adjustment is a GAAP requirement related to inventory valuation that mandates inventory to be stated at the lower of cost or market. During the three months ended March 31, 2024, SBR recorded an adjustment to value its inventory to the LCM which increased its income from operations by | ||||||||||||||
Change in fair value of contingent consideration, net - During the three months ended March 31, 2024, we recorded a net change in fair value of the Martinez Contingent Consideration which increased income from operations and net income by | ||||||||||||||
Loss on formation of SBR equity method investment - During the three months ended March 31, 2024, we recorded a reduction of our gain associated with the formation of the SBR equity method investment which decreased income from operations and net income by | ||||||||||||||
Gain on land sales - During the three months ended March 31, 2023, we recorded a gain on the sale of a separate parcel of real property acquired as part of the | ||||||||||||||
(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. | ||||||||||||||
(6) Represents weighted-average diluted shares outstanding assuming the conversion of all common stock equivalents, including options and warrants for PBF LLC Series A Units and performance share units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method (to the extent the impact of such exchange would not be anti-dilutive) for the three months ended March 31, 2024 and 2023, respectively. Common stock equivalents exclude the effects of performance share units and options and warrants to purchase 29,500 shares of PBF Energy Class A common stock and PBF LLC Series A units because they are anti-dilutive for the three months ended March 31, 2023. For periods showing a net loss, all common stock equivalents and unvested restricted stock are considered anti-dilutive. | ||||||||||||||
(7) Earnings before Interest, Income Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA are supplemental measures of performance that are not required by, or presented in accordance with GAAP. Adjusted EBITDA is defined as EBITDA before adjustments for items such as stock-based compensation expense, change in the fair value of catalyst obligations, our share of the SBR LCM inventory adjustment, net change in the fair value of contingent consideration, gain on land sales, loss on the formation of the SBR equity method investment, and certain other non-cash items. We use these Non-GAAP financial measures as a supplement to our GAAP results in order to provide additional metrics on factors and trends affecting our business. EBITDA and Adjusted EBITDA are measures of operating performance that are not defined by GAAP and should not be considered substitutes for net income as determined in accordance with GAAP. In addition, because EBITDA and Adjusted EBITDA are not calculated in the same manner by all companies, they are not necessarily comparable to other similarly titled measures used by other companies. EBITDA and Adjusted EBITDA have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. | ||||||||||||||
(8) We operate in two reportable segments: Refining and Logistics. Our operations that are not included in the Refining and Logistics segments are included in Corporate. As of March 31, 2024, the Refining segment includes the operations of our oil refineries and related facilities in
PBFX currently does not generate significant third party revenue and intersegment related-party revenues are eliminated in consolidation. From a PBF Energy perspective, our chief operating decision maker evaluates the Logistics segment as a whole without regard to any of PBFX's individual operating segments. | ||||||||||||||
(9) Our market indicators table summarizes certain market indicators relating to our operating results as reported by Platts, a division of The McGraw-Hill Companies. Effective RIN basket price is recalculated based on information as reported by | ||||||||||||||
(10) Gross refining margin and gross refining margin per barrel of throughput are Non-GAAP measures because they exclude refining operating expenses, depreciation and amortization and gross margin of the Logistics segment. Gross refining margin per barrel is gross refining margin, divided by total crude and feedstocks throughput. We believe they are important measures of operating performance and provide useful information to investors because gross refining margin per barrel is a helpful metric comparison to the industry refining margin benchmarks shown in the Market Indicators Tables, as the industry benchmarks do not include a charge for refinery operating expenses and depreciation. Other companies in our industry may not calculate gross refining margin and gross refining margin per barrel in the same manner. Gross refining margin and gross refining margin per barrel of throughput have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. | ||||||||||||||
(11) Represents refining operating expenses, including corporate-owned logistics assets, excluding depreciation and amortization, divided by total crude oil and feedstocks throughput. | ||||||||||||||
(12) We define heavy crude oil as crude oil with American Petroleum Institute ("API") gravity less than 24 degrees. We define medium crude oil as crude oil with API gravity between 24 and 35 degrees. We define light crude oil as crude oil with API gravity higher than 35 degrees. | ||||||||||||||
(13) The total debt to capitalization ratio is calculated by dividing total debt by the sum of total debt and total equity. This ratio is a measurement that management believes is useful to investors in analyzing our leverage. Net debt and the net debt to capitalization ratio are Non-GAAP measures. Net debt is calculated by subtracting cash and cash equivalents from total debt. We believe these measurements are also useful to investors since we have the ability to and may decide to use a portion of our cash and cash equivalents to retire or pay down our debt. Additionally, we have also presented the total debt to capitalization and net debt to capitalization ratios excluding the cumulative effects of special items on equity. |
March 31, | December 31, | |||||
2024 | 2023 | |||||
(in millions) | ||||||
Total debt | $ 1,248.6 | $ 1,245.9 | ||||
Total equity | 6,598.2 | 6,631.3 | ||||
Total capitalization | $ 7,846.8 | $ 7,877.2 | ||||
Total debt | $ 1,248.6 | $ 1,245.9 | ||||
Total equity excluding special items | 5,523.4 | 5,557.4 | ||||
Total capitalization excluding special items | $ 6,772.0 | $ 6,803.3 | ||||
Total equity | $ 6,598.2 | $ 6,631.3 | ||||
Special Items (Note 4) | ||||||
Add: LCM inventory adjustment - SBR | 32.1 | 38.7 | ||||
Add: Change in fair value of contingent consideration, net | (62.1) | (58.8) | ||||
Add: Gain on land sales | (89.5) | (89.5) | ||||
Add: Gain on formation of SBR equity method investment | (916.4) | (925.1) | ||||
Add: Cumulative historical equity adjustments (a) | (404.4) | (404.4) | ||||
Less: Recomputed income tax on special items | 365.5 | 365.2 | ||||
Net impact of special items | (1,074.8) | (1,073.9) | ||||
Total equity excluding special items | $ 5,523.4 | $ 5,557.4 | ||||
Total debt | $ 1,248.6 | $ 1,245.9 | ||||
Less: Cash and cash equivalents | 1,441.5 | 1,783.5 | ||||
Net Debt | $ (192.9) | $ (537.6) | ||||
Total debt to capitalization ratio | 16 % | 16 % | ||||
Total debt to capitalization ratio, excluding special items | 18 % | 18 % | ||||
Net debt to capitalization ratio* | (3) % | (9) % | ||||
Net debt to capitalization ratio, excluding special items* | (4) % | (11) % | ||||
*Negative ratio exists as of March 31, 2024 and December 31, 2023 as cash is in excess of debt. | ||||||
(a) Refer to the Company's 2023 Annual Report on Form 10-K ("Notes to Non-GAAP Financial Measures" within Management's Discussion and Analysis of Financial Condition and Results of Operations) for a listing of special items included in cumulative historical equity adjustments prior to 2024. |
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SOURCE PBF Energy Inc.
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