PBF Energy Inc.: PBF Energy Reports Fourth Quarter and Full Year 2013 Results, Declares Dividend of $0.30 Per Share

Tickers: PBF
PARSIPPANY, N.J.--(BUSINESS WIRE)--Feb. 13, 2014-- PBF Energy Inc. (NYSE:PBF) today reported fourth quarter 2013 Operating Income of $142.3 million versus Operating Income of $284.9 million for the fourth quarter of 2012. Adjusted Pro Forma Net Income for the fourth quarter 2013 was $73.6 million, or $0.76 per share on a fully exchanged, fully diluted basis, as described below, compared to Adjusted Pro Forma Net Income of $165.7 million, or $1.70 per share, for the fourth quarter 2012. Net Income attributable to PBF Energy Inc. for the quarter was $31.2 million.

Embedded in our reported earnings is an approximately $113 million LIFO benefit related to the declining cost of our combined hydrocarbon inventory over the quarter, which puts the full-year 2013 LIFO charge at $24 million. Depending on rising or falling commodity prices, LIFO accounting can result in either a charge or benefit as the change in the current cost of PBF's combined crude and product inventory is reflected in the current period's earnings.

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Throughput for the fourth quarter averaged approximately 458,800 barrels per day, which was at the low end of our guidance for the quarter. Throughput in the Mid-continent averaged approximately 151,700 barrels per day and throughput on the East Coast averaged approximately 307,100 barrels per day.

During the fourth quarter 2013, the company ran approximately 114,900 barrels per day of rail-delivered crudes through its East Coast system, of which 95,700 barrels per day was Bakken crude oil. The company did not use its full existing rail capacity of approximately 145,000 barrels per day as the planned turnaround of the Delaware City Refinery's coker complex, and other associated units, limited the amount of heavy crude oil that could be processed by the plant.

Tom Nimbley, PBF Energy's CEO, said, "PBF finished a challenging year with a strong quarter and is positioned well to start 2014 as crude differentials have improved from the third quarter of 2013." Mr. Nimbley continued, "Looking ahead, our continued focus on operational excellence, environmental stewardship and safety will position the company to benefit from opportunities that the market may present in 2014."

For the year-ended December 31, 2013, Operating Income was $319.9 million, compared to $920.4 million for the corresponding period in 2012. Adjusted Pro Forma Net Income for the year was $143.9 million, or $1.48 per share on a fully-exchanged, fully-diluted basis, as compared to $492.5 million, or $5.07 per share, for the corresponding period in 2012.

Matt Lucey, PBF Energy's CFO, said, "PBF generated approximately $150 million of operating cash flow in the quarter. We maintained our disciplined approach to managing our balance sheet and finished the year, much as we started, with 30% debt to capital ratio."

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, 2014 to holders of record as of March 4, 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 10:00 a.m. ET, Thursday, February 13, 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 segment, by dialing 1-800-862-9098 or 1-785-424-1051, conference ID: PBFQ413. A replay of the call will be available approximately two hours following the completion of the call and can be accessed by dialing 1-800-283-5758 or 1-402-220-0863. A live webcast of the conference call will also be available in the Investor Relations section of the company's web site at .

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.

PBF ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except share and per share data)
Three Months Ended Year Ended
December 31, December 31,
2013 2012 2013 2012
Revenues $ 4,816,435 $ 4,950,360 $ 19,151,455 $ 20,138,687
Costs and expenses:
Cost of sales, excluding depreciation 4,408,537 4,397,194 17,803,314 18,269,078
Operating expenses, excluding depreciation 211,407 200,944 812,652 738,824
General and administrative expenses 24,351 42,401 104,334 120,443
(Gain) loss on sale of assets (135 ) 101 (183 ) (2,329 )
Depreciation and amortization expense 29,949 24,819 111,479 92,238
4,674,109 4,665,459 18,831,596 19,218,254
Income from operations 142,326 284,901 319,859 920,433
Other income (expense)
Change in fair value of contingent consideration - (692 ) - (2,768 )
Change in fair value of catalyst lease 1,573 3,205 4,691 (3,724 )
Interest expense, net (24,223 ) (21,876 ) (93,784 ) (108,629 )
Income before income taxes 119,676 265,538 230,766 805,312
Income tax expense 17,579 1,275 16,681 1,275
Net income 102,097 264,263 214,085 804,037
Less: net income attributable to noncontrolling interest 70,941 262,307 174,545 802,081
Net income attributable to PBF Energy Inc. $ 31,156 $ 1,956 $ 39,540 $ 1,956
Net income available to Class A common stock per share:
Basic $ 0.79 $ 0.08 $ 1.22 $ 0.08
Diluted $ 0.76 $ 0.08 $ 1.20 $ 0.08
Weighted-average shares outstanding-basic 39,590,592 23,570,240 32,488,369 23,570,240
Weighted-average shares outstanding-diluted 97,389,299 97,230,904 33,061,081 97,230,904
Dividends per share $ 0.30 $ - $ 1.20 $ -
Adjusted pro forma net income and adjusted pro forma net income per fully exchanged, fully diluted shares outstanding(1):

Adjusted pro forma net income $ 73,579 $ 165,713 $ 143,918 $ 492,492
Adjusted pro forma net income per fully exchanged, fully diluted share $ 0.76 $ 1.70 $ 1.48 $ 5.07
Pro forma shares outstanding - diluted 97,389,299 97,230,904 97,225,126 97,230,904
(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."

PBF ENERGY INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET DATA
(Unaudited, in thousands)
December 31, December 31,
2013 2012
Balance Sheet Data:
Cash and cash equivalents $ 76,970 $ 285,884
Inventories $ 1,445,517 $ 1,497,119
Total assets $ 4,413,808 $ 4,253,702
Total long-term debt $ 747,576 $ 729,980
Total equity $ 1,715,256 $ 1,723,545
Total debt to capitalization ratio 30 % 30 %
Net debt to capitalization ratio 28 % 20 %
SUMMARIZED STATEMENT OF CASH FLOW DATA
(Unaudited, in thousands)
Year Ended December 31,
2013 2012
Cash flows provided by operations $ 291,329 $ 812,433
Cash flows used in investing activities (313,274 ) (219,307 )
Cash flows used in financing activities (186,969 ) (357,408 )
Net (decrease) increase in cash and cash equivalents (208,914 ) 235,718
Cash and cash equivalents, beginning of period 285,884 50,166
Cash and cash equivalents, end of period $ 76,970 $ 285,884

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PBF ENERGY INC. AND SUBSIDIARIES
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)(1) 2013 2012 2013 2012
Dated Brent Crude $ 109.24 $ 110.08 $ 108.66 $ 111.67
West Texas Intermediate (WTI) crude oil $ 97.59 $ 88.15 $ 97.99 $ 94.13
Crack Spreads
Dated Brent (NYH) 2-1-1 $ 9.08 $ 13.61 $ 12.34 $ 14.29
WTI (Chicago) 4-3-1 $ 10.28 $ 25.68 $ 20.09 $ 27.13
Crude Oil Differentials
Dated Brent (foreign) less WTI $ 11.65 $ 21.92 $ 10.67 $ 17.54
Dated Brent less Maya (heavy, sour) $ 19.75 $ 17.04 $ 11.38 $ 12.04
Dated Brent less WTS (sour) $ 15.79 $ 31.22 $ 13.31 $ 22.95
Dated Brent less ASCI (sour) $ 13.53 $ 6.50 $ 6.67 $ 4.97
WTI less WCS (heavy, sour) $ 31.51 $ 26.32 $ 24.62 $ 21.80
WTI less Bakken (light, sweet) $ 11.55 $ 3.03 $ 5.12 $ 5.77
WTI less Syncrude (light, sweet) $ 9.42 $ (0.10 ) $ 0.63 $ 0.96
Natural gas (dollars per MMBTU) $ 3.85 $ 3.54 $ 3.73 $ 2.83
Key Operating Information
Production (barrels per day ("bpd") in thousands) 459.7 462.5 451.0 464.4
Crude oil and feedstocks throughput (bpd in thousands) 458.8 461.0 452.8 463.2
Total crude oil and feedstocks throughput (millions of barrels) 42.3 42.4 165.3 169.5
Gross refining margin per barrel of throughput (2) $ 9.67 $ 13.05 $ 8.16 $ 11.03
Operating expense per barrel of throughput (3) $ 5.01 $ 4.74 $ 4.92 $ 4.36
Crude and feedstocks (% of total throughput) (4):
Heavy 11 % 16 % 15 % 16 %
Medium 39 % 45 % 42 % 47 %
Light 41 % 28 % 35 % 28 %
Other feedstocks and blends 9 % 11 % 8 % 9 %
Total throughput 100 % 100 % 100 % 100 %
Yield (% of total throughput):
Gasoline and gasoline blendstocks