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PBF Energy Announces First Quarter 2022 Results

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  • First quarter income from operations of $91.0 million (excluding special items, first quarter income from operations of $141.3 million)

  • Reduced consolidated debt by approximately $55 million in 2022 and approximately $390 million in 15 months

  • First quarter consolidated ending cash balance of approximately $1.4 billion

PARSIPPANY, N.J., April 28, 2022 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) today reported first quarter 2022 income from operations of $91.0 million as compared to income from operations of $57.7 million for the first quarter of 2021. Excluding special items, first quarter 2022 income from operations was $141.3 million as compared to a loss from operations of $317.8 million for the first quarter of 2021. PBF Energy's financial results reflect the consolidation of PBF Logistics LP (NYSE: PBFX), a master limited partnership of which PBF Energy indirectly owns the general partner and approximately 48% of the limited partner interests as of quarter-end.

PBF Energy Logo
PBF Energy Logo

The company reported a first quarter 2022 net loss of $3.3 million and net loss attributable to PBF Energy Inc. of $21.1 million or $(0.18) per share. This compares to net loss of $22.2 million, and net loss attributable to PBF Energy Inc. of $41.3 million or $(0.34) per share for the first quarter 2021. Non-cash special items included in the first quarter 2022 results, which decreased net income by a net, after-tax expense of $64.4 million, or $0.53 per share, consisted of a change in fair value of the contingent consideration associated with earn-out provisions related primarily to the Martinez Acquisition, a change in the tax receivable agreement liability, and a net tax expense on remeasurement of deferred tax assets. Adjusted fully-converted net income for the first quarter 2022, excluding special items, was $43.3 million, or $0.35 per share on a fully-exchanged, fully-diluted basis, as described below, compared to adjusted fully-converted net loss of $315.5 million or $(2.61) per share, for the first quarter 2021.

Tom Nimbley, PBF Energy's Chairman and CEO, said, "Global supply and demand balances were tight coming into the year. Low product inventories have not recovered due to increasing demand and significant maintenance activity across the global refining system. In the first quarter, PBF completed nearly one third of our annual planned turnaround activities, advanced some planned activities due to a window provided by unplanned downtime and restarted limited secondary processing units on the East Coast. We are focused on putting our entire refining system in a position to run safely and reliably in anticipation of increasing seasonal demand."

Mr. Nimbley concluded, "Looking ahead, demand is continuing to grow. Global product inventories are tight across the board. With these factors as a backdrop, the outlook for refining in 2022 and beyond, especially domestic refining, is favorable. We expect that with solid operating performance, PBF will be able to generate incremental free cash flow that can be used to strengthen our balance sheet and reward our investors."

Liquidity and Financial Position
As of March 31, 2022, our operational liquidity was more than $2.6 billion based on approximately $1.4 billion of cash and more than $1.2 billion of borrowing availability under our asset-based lending facility. In addition, PBF Logistics LP liquidity included $53.3 million in cash and approximately $421.5 million of availability under its revolving credit facility.

In April 2022, the company repurchased a combined total principal amount of approximately $30.0 million of its 2028 6.00% Senior Notes and 2025 7.25% Senior Notes for an aggregate cash amount of approximately $25.8 million. Combined with the $25.0 million of debt repayments made by PBF Logistics LP, consolidated debt for PBF was reduced by more than $55.0 million.

Strategic Update and Outlook
We remain focused on enhancing the profitability and reliability of our core operations. Our full-year refining capital expenditures in 2022 are expected to be in the $500 to $550 million range. We continue to focus on capital discipline, with turnaround and other mandatory spend accounting for over 96% of the total planned refining capital expenses for the year. Consistent with our prior year approach, we will be responsive with regards to the pace of capital expenditures and scope of turnarounds depending on market conditions. Our annual maintenance, environmental, regulatory and safety capital expenditures are consistently in the $150 to $200 million range. For the first half of 2022, we expect to incur turnaround-related capital expenditures of approximately $225 to $250 million.

PBF continues to advance our project for a renewable fuels production facility co-located at the Chalmette refinery. This strategically valuable project represents an initial step in PBF's pursuit of producing sustainable fuels. The project incorporates certain idled assets, including an idle hydrocracker, along with a newly-constructed pre-treatment unit to establish a 20,000 barrel per day renewable diesel production facility. During the first quarter of 2022, we invested $40 million to continue to progress and incubate the project with the goal of being in production in the first half of 2023. Concurrent with our activities to progress the project, we are continuing discussions with potential strategic and financial partners.

Expected throughput ranges (barrels per day)


Second Quarter 2022

Full-year 2022


Low

High

Low

High

East Coast

270,000

290,000

260,000

280,000

Mid-continent

150,000

160,000

140,000

150,000

Gulf Coast

180,000

190,000

175,000

185,000

West Coast

290,000

310,000

290,000

310,000

Total

890,000

950,000

865,000

925,000

Included in the throughput estimates above are the expected impacts of planned second quarter turnaround activity at our East Coast and West Coast facilities.

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 (Loss), Adjusted Fully-Converted Net Income (Loss) excluding special items, Adjusted Fully-Converted Net Income (Loss) per fully-exchanged, fully-diluted share, Income (Loss) 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 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, April 28, 2022, 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) 869-3847 or (201) 689-8261. 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 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, customers and vendors; risk relating to the securities markets generally; the supply, demand, prices and other market conditions for our products or crude oil; risk associated with the East Coast refining reconfiguration; our expectations with respect to our capital improvements and turnaround projects; risks associated with our obligation to buy Renewable Identification Numbers and related market risks related to the price volatility thereof; our ability to make, and realize the benefits from, acquisitions or investments, including in renewable diesel productions, on any announced time frame or at all; the effect of the COVID-19 pandemic and related governmental and consumer responses; our expectations regarding capital spending and the impact of market conditions on demand for the balance of 2022; 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 48% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).


EARNINGS RELEASE TABLES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in millions, except share and per share data)
















Three Months Ended







March 31,







2022


2021

Revenues


$ 9,141.7


$ 4,924.8










Cost and expenses:






Cost of products and other


8,206.2


4,191.0


Operating expenses (excluding depreciation and amortization expense as reflected below)


620.4


481.3


Depreciation and amortization expense


118.3


114.1

Cost of sales


8,944.9


4,786.4


General and administrative expenses (excluding depreciation and amortization expense as
reflected below)


53.5


47.8


Depreciation and amortization expense


1.9


3.4


Change in fair value of contingent consideration


50.3


30.1


Loss (gain) on sale of assets


0.1


(0.6)

Total cost and expenses


9,050.7


4,867.1

Income from operations


91.0


57.7

Other income (expense):







Interest expense, net


(78.4)


(80.3)


Change in Tax Receivable Agreement liability


(19.3)



Change in fair value of catalyst obligations


(4.9)


(10.0)


Other non-service components of net periodic benefit cost



2.2


2.0

Income (loss) before income taxes


(9.4)


(30.6)

Income tax benefit


(6.1)


(8.4)

Net income (loss)


(3.3)


(22.2)


Less: net income attributable to noncontrolling interests


17.8


19.1

Net income (loss) attributable to PBF Energy Inc. stockholders


$ (21.1)


$ (41.3)










Net income (loss) available to Class A common stock per share:







Basic


$ (0.18)


$ (0.34)



Diluted


$ (0.18)


$ (0.34)



Weighted-average shares outstanding-basic


120,339,041


119,926,267



Weighted-average shares outstanding-diluted


120,339,041


120,905,716



















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)


$ (21.1)


$ (41.6)



Adjusted fully-converted net income (loss) per fully exchanged, fully diluted share


$ (0.18)


$ (0.34)



Adjusted fully-converted shares outstanding - diluted (Note 6)


123,549,205


120,905,716










See Footnotes to Earnings Release Tables

PBF ENERGY INC. AND SUBSIDIARIES

RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP

(Unaudited, in millions, except share and per share data)












RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) AND ADJUSTED FULLY-CONVERTED NET INCOME (LOSS) EXCLUDING SPECIAL ITEMS (Note 1)



Three Months Ended



March 31,



2022


2021

Net income (loss) attributable to PBF Energy Inc. stockholders



$ (21.1)


$ (41.3)


Less: Income allocated to participating securities




Income (loss) available to PBF Energy Inc. stockholders - basic



(21.1)


(41.3)


Add: Net income (loss) attributable to noncontrolling interest (Note 2)



(0.1)


(0.4)


Less: Income tax benefit (Note 3)



0.1


0.1

Adjusted fully-converted net income (loss)



$ (21.1)


$ (41.6)

Special items (Note 4):







Add: Non-cash LCM inventory adjustment




(405.6)


Add: Change in fair value of contingent consideration



50.3


30.1


Add: Change in Tax Receivable Agreement liability



19.3



Add: Net tax expense on remeasurement of deferred tax assets



12.8


1.7


Less: Recomputed income tax on special items (Note 3)



(18.0)


99.9

Adjusted fully-converted net income (loss) excluding special items



$ 43.3


$ (315.5)












Weighted-average shares outstanding of PBF Energy Inc.



120,339,041


119,926,267

Conversion of PBF LLC Series A Units (Note 5)



927,990


979,449

Common stock equivalents (Note 6)



2,282,174


Fully-converted shares outstanding - diluted



123,549,205


120,905,716












Adjusted fully-converted net income (loss) per fully exchanged, fully diluted shares outstanding (Note 6)



$ (0.18)


$ (0.34)


Adjusted fully-converted net income (loss) excluding special items per fully exchanged, fully diluted shares outstanding (Note 4, 6)



$ 0.35


$ (2.61)










Three Months Ended

RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO INCOME (LOSS) FROM OPERATIONS EXCLUDING SPECIAL ITEMS



March 31,



2022


2021

Income from operations



$ 91.0


$ 57.7

Special Items (Note 4):







Add: Non-cash LCM inventory adjustment




(405.6)


Add: Change in fair value of contingent consideration



50.3


30.1

Income (loss) from operations excluding special items



$ 141.3


$ (317.8)


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 millions)




















Three Months Ended




March 31,

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND EBITDA EXCLUDING SPECIAL ITEMS



2022


2021













Net income (loss)



$ (3.3)


$ (22.2)

Add: Depreciation and amortization expense



120.2


117.5

Add: Interest expense, net



78.4


80.3

Add: Income tax benefit



(6.1)


(8.4)

EBITDA




$ 189.2


$ 167.2