PBF Energy Inc.: PBF Energy Reports First Quarter 2014 Results, Declares Dividend of $0.30 Per Share

Tickers: PBF
PARSIPPANY, N.J.--(BUSINESS WIRE)--PBF Energy Inc. (NYSE:PBF) today reported first quarter 2014 Operating Income of $260.2 million versus Operating Income of $100.1 million for the first quarter of 2013. Adjusted Pro Forma Net Income for the first quarter 2014 was $140.7 million, or $1.44 per share on a fully exchanged, fully diluted basis, as described below, compared to Adjusted Pro Forma Net Income of $46.7 million, or $0.48 per share, for the first quarter 2013. Net Income attributable to PBF Energy Inc. for the quarter was $77.4 million.

Throughput for the quarter averaged approximately 430,900 barrels per day, which was below guidance for the quarter. Throughput on the East Coast averaged approximately 292,700 barrels per day and throughput in the Mid-continent averaged approximately 138,200 barrels per day. Throughput was negatively impacted by the cold weather experienced during the quarter which, among other things, caused a freeze-related, unplanned shutdown at our Paulsboro refinery in January.

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During the first quarter 2014, the company ran approximately 102,400 barrels per day of rail-delivered crudes through its East Coast system, of which 40,100 barrels per day were heavy crude oil. The severity of the weather in the mid-continent during the quarter negatively impacted the ability to load crude oil onto the trains and transit times also increased. Depending on economics, we expect that our total volumes of rail-delivered crudes will increase in the second quarter. The company is currently expanding its existing rail capacity of approximately 145,000 barrels per day to a total of 210,000 barrels per day and expects this increased capacity to be in service by the end of the third quarter.

Tom Nimbley, PBF Energy's CEO, said, "Our strong results are representative of the success of our ongoing efforts to enhance our feedstock sourcing flexibility and procure the most economic barrels for processing at our facilities. In conjunction with relatively stable operations, given the sometimes adverse operating conditions, the landed cost of crude, especially on the East Coast, was the single largest driver of our strong results for the quarter. Broader market conditions were favorable, with strong benchmark cracks and crude oil differentials benefiting all of our refineries. Bakken traded at a discount to Brent of $13 and WCS averaged a discount to Brent of more than $31 per barrel and we were able to land these crudes, and some price-advantaged waterborne barrels, into our East Coast system at attractive economics." Mr. Nimbley continued, "Moving into the second quarter, crude differentials have narrowed somewhat but product cracks have remained strong. We expect that our landed cost of crude will continue to support strong operating results and we are positioning our refineries to benefit from these continuing favorable market conditions."

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 May 29, 2014, to holders of record as of May 12, 2014.

Adjusted Pro Forma Results

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

Non-GAAP Measures

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

Conference Call Information

PBF Energy's senior management will hold a conference call at 9:00 a.m. ET, Wednesday, April 30, 2014, 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 session, by dialing (800) 862-9098 or (785) 424-1051, conference ID: PBFQ114. The audio replay will be available two hours after the end of the call through May 14, 2014, by dialing (800) 388-6197 or (402) 220-1115. A live webcast of the conference call will also be available in the Investor Relations section of the company's web site at http://www.pbfenergy.com .

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 risk that an initial public offering of the MLP may not occur, or be negatively impacted by adverse conditions, any impact an MLP may have on the company's credit rating, cost of funds, employees, customers and vendors; risks relating to the securities markets generally; the impact of adverse market conditions affecting the company, unanticipated developments, regulatory approvals, changes in laws and other events negatively impact the company. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable law.

About PBF Energy Inc.

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

(Unaudited, in thousands, except share and per share data)
Three Months Ended
March 31,
2014 2013
Revenues $ 4,746,443 $ 4,797,847
Costs and expenses:
Cost of sales, excluding depreciation 4,147,684 4,435,101
Operating expenses, excluding depreciation

268,899 206,015
General and administrative expenses 36,624 30,094
Gain on sale of assets (186 ) -
Depreciation and amortization expense

33,215 26,532
4,486,236 4,697,742
Income from operations 260,207 100,105
Other income (expense)
Change in fair value of catalyst lease (2,001 ) (1,339 )
Interest expense, net (25,255 ) (21,611 )
Income before income taxes 232,951 77,155
Income tax expense 49,679 7,444
Net income 183,272 69,711
Less: net income attributable to noncontrolling interest

105,828 58,305
Net income attributable to PBF Energy Inc. $ 77,444 $ 11,406
Net income available to Class A common stock per share:
Basic $

1.43 $

Diluted $

1.42 $

Weighted-average shares outstanding-basic 54,167,861 23,589,687
Weighted-average shares outstanding-diluted 54,691,627 97,415,576
Dividends per share $ 0.30 $ 0.30
Adjusted pro forma net income and adjusted pro forma net income per fully exchanged, fully diluted shares outstanding(1):

Adjusted pro forma net income $ 140,729 $ 46,686
Adjusted pro forma net income per fully exchanged, fully diluted share

$ 1.44 $ 0.48
Pro forma shares outstanding - diluted 97,398,632 97,415,576
(1) Adjusted Pro Forma information is presented in the table above as management believes that these non-GAAP measures when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare the company's results across the periods presented and facilitates an understanding of the company's operating results. The company also uses this measure to evaluate its operating performance. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. The differences between Adjusted Pro Forma and U.S. GAAP results are explained in the "Reconciliation of Amounts Reported Under U.S. GAAP - Adjusted Pro Forma Net Income."
(Unaudited, in thousands)
March 31, December 31,
2014 2013
Balance Sheet Data:
Cash and cash equivalents $ 237,135 $ 76,970
Inventories $ 1,546,255 $ 1,445,517
Total assets $ 4,716,419 $ 4,413,808
Total long-term debt $ 734,828 $ 747,576
Total equity $ 1,810,123 $ 1,715,256
Total debt to capitalization ratio 29 % 30 %
Net debt to capitalization ratio 22 % 28 %