PBF Energy Reports First Quarter 2013 Results and Declares Dividend of $0.30 Per Share

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PBF Energy Reports First Quarter 2013 Results and Declares Dividend of $0.30 Per Share

PARSIPPANY, N.J.--(BUSINESS WIRE)-- PBF Energy Inc. (NYS: PBF) today reported first quarter 2013 operating income of $100.1 million versus an operating loss of $164.1 million for the first quarter of 2012. Adjusted Pro Forma Net Income for the first quarter 2013 was $46.7 million, or $0.48 per share on a fully exchanged, fully diluted basis, as described below, compared to a loss of $122.6 million, or $1.26 per share, for the first quarter 2012. Net income attributable to PBF Energy Inc. for the quarter was $11.4 million.

Adjusted Pro Forma results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.

Throughput for the quarter averaged approximately 441,600 barrels per day. Throughput in the Mid-continent averaged approximately 122,700 barrels per day and throughput on the East Coast averaged approximately 318,900 barrels per day. Throughput in the first quarter of 2013 was adversely impacted by the unplanned 18-day outage at the Toledo refinery.

For the first quarter 2013, the company's gross refining margin averaged $9.13 per barrel of throughput, with the Mid-continent contributing $19.50 per barrel and the East Coast contributing $5.14 per barrel. Operating expenses on a company-wide basis were $5.19 per barrel, with the Mid-continent being $5.97 per barrel and the East Coast being $4.89 per barrel.

Tom Nimbley, PBF Energy's CEO, said, "PBF faced some challenges during the quarter, including the outage at Toledo, narrowing crude oil differentials and increasing costs of compliance with the Renewable Fuels Standard. Despite these headwinds, we continue to believe in our strategy of sourcing the lowest cost feedstocks for our refineries and positioning PBF to benefit from positive market conditions."

The company's 70,000 barrel per day double-loop track at Delaware City continues to operate better than originally planned. The ongoing expansion project to double the company's heavy crude unloading capability to 80,000 barrels per day is expected to be completed during the fourth quarter of this year. Upon completion, PBF Energy will be able to deliver more than 150,000 barrels per day of crude-by-rail directly into the Delaware City refinery. During the first quarter 2013, the company ran approximately 55,000 barrels per day of cost-advantaged crudes though its East Coast system and expects to add to this throughput in the second quarter as it increases deliveries of crude by rail and experiences a full quarter of operations of the double-loop track.

Additionally, PBF Energy has entered into several agreements focused on advancing its crude-by-rail strategy. The company has signed long-term agreements with BNSF Railway and Norfolk Southern for the provision of rail services as PBF seeks to move increased volumes of North American crude across the rail system. PBF has also reached an agreement with Savage to transload Bakken crude oil at Savage's Trenton, NJ rail facility for delivery to PBF's East Coast refineries. Furthermore, PBF Energy has signed a new agreement with Trinity for the acquisition of 1,000 additional coiled and insulated railcars. This brings the total expected number of PBF's railcars to 5,900, including 4,600 coiled and insulated cars. The railcars are scheduled to be delivered over the next eight to ten quarters.

"We continue to invest in our organic rail infrastructure and enter into beneficial commercial arrangements in order to increase our ability to access cost-advantaged North American crude oils," continued Mr. Nimbley. "With our recently announced supply agreement for Bakken crude oil with Continental Resources and our arrangements with the rail companies, PBF has effectively established a rail pipeline for crude direct from the producers to our refineries on the East Coast. We believe that by providing our refineries with the most economic crude slates, we will maximize the earnings potential of our assets."

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 June 7, 2013 to holders of record as of May 21, 2013.

"PBF's Board of Directors approval of a $0.30 dividend for the quarter represents continuing confidence in the earnings power of the company and also PBF's commitment to returning value to stockholders," concluded Mr. Nimbley.

Conference Call Information

PBF Energy's senior management will hold a conference call at 1:00 p.m. ET, Thursday, May 2, 2013, to discuss its earnings results and provide an update on company operations. Callers may listen to the live presentation, which will be followed by a question and answer segment, by dialing 1-877-474-9506 and the passcode 20419613. A live webcast of the conference call will also be available on the company's web site at http://www.pbfenergy.com.

Non-GAAP Measures

This earnings release includes non-GAAP (Generally Accepted Accounting Principles) measures including Adjusted Pro Forma Net Income (Loss), Adjusted Pro Forma Net Income (Loss) per fully exchanged, fully diluted share, gross refining margin, gross refining margin per barrel of throughput, EBITDA (Earnings before Income Taxes, Depreciation and Amortization) and Adjusted EBITDA. PBF Energy Inc. believes that non-GAAP financial measures provide useful information about its operating performance and financial results. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBF Energy Inc.'s non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the non-GAAP measures used in this release and reconciliations to the most directly comparable GAAP measures.

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 (PBF Energy Inc. and subsidiaries) 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 U.S. Securities and Exchange Commission. 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. (NYS: PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey and Toledo, Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally sensitive manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.

(Unaudited, in thousands, except share data)
Three Months Ended
March 31,
2013 2012
Revenues $ 4,797,847 $ 4,716,106
Costs and expenses:
Cost of sales, excluding depreciation 4,435,101 4,660,193
Operating expenses, excluding depreciation 206,015 188,143
General and administrative expenses 30,094 13,814
Gain on sale of assets - (2,503 )
Depreciation and amortization expense   26,532     20,542  
  4,697,742     4,880,189  
Income (loss) from operations 100,105 (164,083 )
Other income (expense)

Change in fair value of contingent consideration

- (692 )
Change in fair value of catalyst lease (1,339 ) (6,348 )
Interest expense, net   (21,611 )   (31,408 )
Income before income taxes 77,155 (202,531 )
Income tax expense   (7,444 )   -  
Net income (loss) $ 69,711 $ (202,531 )
Less: net income attributable to noncontrolling
and former controlling interest   58,305  
Net income attributable to PBF Energy Inc. $ 11,406  
Net income available to Class A common
stock per share:
Basic $ 0.48  
Diluted $ 0.48  
Weighted-average shares outstanding-basic   23,589,687  
Weighted-average shares outstanding-diluted   97,415,576  
Dividends per share $ 0.30  
Adjusted pro forma net income (loss) and adjusted
pro forma net income (loss) per fully exchanged,
fully diluted shares outstanding(1):
Adjusted pro forma net income $ 46,686   $ (122,552 )
Adjusted pro forma net income per fully
exchanged, fully diluted share $ 0.48   $ (1.26 )
Pro forma shares outstanding -diluted   97,415,576     97,415,576  



Adjusted pro forma net income (loss) and adjusted pro forma net income (loss) per fully exchanged, fully diluted shares outstanding are non-GAAP measures. Refer to the "Reconciliation of Amounts Reported Under U.S. GAAP - Adjusted Pro Forma Net Income" table provided for additional information, including our rationale for the use of this non-GAAP measure.

(Unaudited, in thousands)
March 31, December 31,
2013 2012
Balance Sheet Data:
Cash and cash equivalents $ 404,088 $ 285,884
Inventories $ 1,450,518 $ 1,497,119
Total assets $ 4,509,073 $ 4,253,702
Total long-term debt $ 727,548 $ 729,980
Total equity $ 1,761,407 $ 1,723,545
Total debt to capitalization ratio 29 % 30 %
Net debt to capitalization ratio 16 % 20 %
(Unaudited, in thousands)
Three months ended March 31,


Cash flows from (used by) operations $ 211,066 $ (268,701 )
Cash flows used in investing activities (59,153 ) (39,116 )
Cash flows (used in) provided by
financing activities   (33,709 )   263,906  
Net increase (decrease) in cash and
cash equivalents 118,204 (43,911 )
Cash and equivalents, beginning of period   285,884     50,166  
Cash and equivalents, end of period $ 404,088   $ 6,255  

(Unaudited, amounts in thousands except as indicated)

Three Months Ended

March 31,
Market Indicators (dollars per barrel) (1) 2013 2012
Dated Brent Crude $ 112.57 $ 118.60
West Texas Intermediate (WTI) crude oil $ 94.29 $ 103.10
Crack Spreads
Dated Brent (NYH) 2-1-1 $ 12.79 $ 10.62
WTI (Chicago) 4-3-1 $ 26.09 $ 19.55
Crude Oil Differentials
Dated Brent (foreign) less WTI $ 18.28 $ 15.50
Dated Brent less Maya (heavy, sour) $ 9.86 $ 9.57
Dated Brent less WTS (sour) $ 24.61 $ 19.17
Dated Brent less ASCI (sour) $ 3.66 $ 3.29
WTI less WCS (heavy, sour) $ 26.62 $ 26.53
WTI less Bakken (light, sweet) $ 1.90 $ 12.48
WTI less Syncrude (light, sweet) $ (3.33 ) $ 7.38
Natural gas (dollars per MMBTU) $ 3.48 $ 2.50
(1) As reported by Platts.
Key Operating Information
Production (barrels per day ("bpd") in thousands) 440.3 419.0
Crude oil and feedstocks throughput (bpd in thousands) 441.6 423.5
Total crude oil and feedstocks throughput (millions of barrels) 39.7 38.5
Gross refining margin per barrel of throughput(2) $ 9.13 $ 1.45
Operating expense per barrel of throughput(3) $ 5.19 $ 4.88
Crude and feedstocks (% of total throughput)(4):
Heavy 15 % 20 %
Medium 47 % 49 %
Light 30 % 24 %
Other feedstocks and blends   8 %   7 %
Total throughput   100 %   100 %
Yield (% of total throughput):
Gasoline and gasoline blendstocks 46 % 47 %
Distillates and distillate blendstocks 38 % 37 %
Lubes 2 % 2 %
Chemicals 3 % 2 %
Other   11 %   12 %
Total yield   100
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