PBF Energy Announces Third Quarter 2024 Results and Declares Increased Dividend of $0.275 per Share
Third quarter loss from operations of $386.3 million (excluding special items, third quarter loss from operations of $231.5 million)
Announces 10% increase to quarterly dividend to $0.275 per share
Third quarter 2024 share repurchases of approximately 2.0 million shares for approximately $75 million
PARSIPPANY, N.J., Oct. 31, 2024 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) today reported third quarter 2024 loss from operations of $386.3 million as compared to income from operations of $1,077.1 million for the third quarter of 2023. Excluding special items, third quarter 2024 loss from operations was $231.5 million as compared to income from operations of $1,145.6 million for the third quarter of 2023.
The company reported third quarter 2024 net loss of $289.1 million and net loss attributable to PBF Energy Inc. of $285.9 million or $(2.49) per share. This compares to net income of $794.1 million and net income attributable to PBF Energy Inc. of $786.4 million or $6.11 per share for the third quarter 2023. Non-cash special items included in the third quarter 2024 results, which decreased net income by a net, after-tax charge of $114.5 million, or $0.99 per share, consisted of a lower-of-cost-or-market ("LCM") inventory adjustment and our share of the St. Bernard Renewables LLC ("SBR") LCM inventory adjustment. Adjusted fully-converted net loss for the third quarter 2024, excluding special items, was $173.8 million, or $(1.50) per share on a fully-exchanged, fully-diluted basis, as described below, compared to adjusted fully-converted net income of $857.0 million or $6.61 per share, for the third quarter 2023.
Matt Lucey, PBF Energy's President and CEO, said, "Despite a weak refining environment, PBF's refineries ran well in the third quarter, with no major maintenance or significant unplanned downtime. The performance of our assets is a testament to the extensive work conducted by our outstanding employees and contracted partners. PBF's financial results for the quarter reflect the broader macro headwinds brought about by weaker than expected global demand and higher than anticipated refinery utilization. The near-term gyrations experienced in our cyclical, commodity-dependent business do not reflect our broader outlook that global supply and demand balances remain tight. That delicate balance provides a constructive backdrop for the refining business going forward. Disappointing earnings notwithstanding, we were able to rely on our balance sheet to support operations in the current refining environment."
Mr. Lucey continued, "Presently we are conducting our last major turnaround at the Chalmette refinery and expect that work to be finished in November. The remainder of our assets are running well today and should remain available for the duration of the fourth quarter. Positioning ourselves and our assets to perform in all market conditions through safe, reliable operations remains our primary focus. Lastly, today we increased our dividend by 10% based on the strength of our balance sheet and the confidence that our operations will provide better results as the margin environment rebounds from the current lows."
PBF Energy Inc. Declares Dividend
The company announced today that it will pay a quarterly dividend of $0.275 per share of Class A common stock on November 27, 2024, to holders of record at the close of business on November 13, 2024.
PBF Strategic Update and Outlook
PBF remains committed to the safety and reliability of our operations. We strive to maintain the quality of our balance sheet and preserve the ability of our operations to continue supporting our long-term strategic goal of increasing the value of our company. At quarter-end, we had approximately $977 million of cash and approximately $1.3 billion of total debt. We continue to demonstrate our commitment to fiscal discipline, long-term value and sustainable 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 $850 million range. The majority of planned major maintenance activities were completed during the first half of the year, and the final significant turnaround is underway at the Chalmette refinery.
Timing of planned maintenance and throughput ranges provided reflect current expectations and are subject to change based on market conditions and other factors. Current fourth quarter throughput expectations are included in the table below.
Expected throughput ranges (barrels per day)
Fourth Quarter 2024
Low
High
East Coast
270,000
290,000
Mid-continent
140,000
150,000
Gulf Coast
140,000
150,000
West Coast
290,000
310,000
Total
840,000
900,000
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.
St. Bernard Renewables
SBR averaged approximately 13,000 barrels per day of renewable diesel production in the third quarter. During the third quarter, SBR operations reflected a catalyst change beginning in late July and completed in August. Renewable diesel production for the fourth quarter is expected to average approximately 16,000 to 17,000 barrels per day.
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, 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, October 31, 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: PBF3Q24. 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 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 is also a 50% partner in the St. Bernard Renewables joint venture focused on the production of next generation sustainable fuels.
Contacts:Colin Murray 973.455.7578
Michael C. Karlovich 973.455.8994
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
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Revenues
$ 8,382.3
$ 10,733.5
$ 25,764.0
$ 29,186.1
Cost and expenses:
Cost of products and other
7,862.3
8,720.3
23,422.6
24,423.6
Operating expenses (excluding depreciation and amortization expense as reflected below)
649.7
645.3
1,950.4
2,023.7
Depreciation and amortization expense
158.5
140.1
454.7
424.2
Cost of sales
8,670.5
9,505.7
25,827.7
26,871.5
General and administrative expenses (excluding depreciation and amortization expense as reflected below)
65.4
92.9
193.6
257.1
Depreciation and amortization expense
3.3
3.8
9.8
8.0
Change in fair value of contingent consideration, net
—
65.3
(3.3)
32.4
Equity loss (income) in investee
29.4
(14.6)
42.6
(14.6)
Loss (gain) on formation of SBR equity method investment
—
3.2
8.7
(965.7)
Loss (gain) on sale of assets
—
0.1
0.7
(1.3)
Total cost and expenses
8,768.6
9,656.4
26,079.8
26,187.4
Income (loss) from operations
(386.3)
1,077.1
(315.8)
2,998.7
Other income (expense):
Interest expense (net of interest income of $11.3 million, $21.9 million, $43.4 million and $53.1 million, respectively)
(21.4)
(22.7)
(49.2)
(55.2)
Change in fair value of catalyst obligations
—
(0.1)
—
1.1
Loss on extinguishment of debt
—
(5.7)
—
(5.7)
Other non-service components of net periodic benefit cost
0.5
0.1
1.7
0.5
Income (loss) before income taxes
(407.2)
1,048.7
(363.3)
2,939.4
Income tax (benefit) expense
(118.1)
254.6
(115.7)
729.0
Net income (loss)
(289.1)
794.1
(247.6)
2,210.4
Less: net income (loss) attributable to noncontrolling interest
(3.2)
7.7
(3.1)
21.5
Net income (loss) attributable to PBF Energy Inc. stockholders
$ (285.9)
$ 786.4
$ (244.5)
$ 2,188.9
Net income (loss) available to Class A common stock per share:
Basic
$ (2.48)
$ 6.35
$ (2.09)
$ 17.38
Diluted
$ (2.49)
$ 6.11
$ (2.09)
$ 16.76
Weighted-average shares outstanding-basic
115,084,174
123,793,179
116,974,505
125,938,259
Weighted-average shares outstanding-diluted
115,946,954
129,690,375
117,837,285
131,547,028
Dividends per common share
$ 0.25
$ 0.20
$ 0.75
$ 0.60
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)
$ (288.3)
$ 792.0
$ (246.8)
$ 2,204.4
Adjusted fully-converted net income (loss) per fully exchanged, fully diluted share
$ (2.50)
$ 6.11
$ (2.11)
$ 16.76
Adjusted fully-converted shares outstanding - diluted (Note 6)
115,946,954
129,690,375
117,837,285
131,547,028
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
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Net income (loss) attributable to PBF Energy Inc. stockholders
$ (285.9)
$ 786.4
$ (244.5)
$ 2,188.9
Less: Income allocated to participating securities
—
—
—
—
Income (loss) available to PBF Energy Inc. stockholders - basic
(285.9)
786.4
(244.5)
2,188.9
Add: Net income (loss) attributable to noncontrolling interest (Note 2)
(3.1)
7.6
(3.0)
21.0
Less: Income tax benefit (expense) (Note 3)
0.7
(2.0)
0.7
(5.5)
Adjusted fully-converted net income (loss)
$ (288.3)
$ 792.0
$ (246.8)
$ 2,204.4
Special items (Note 4):
Add: Non-cash LCM inventory adjustment
154.5
—
154.5
—
Add: LCM inventory adjustment - SBR
0.3
—
(4.2)
—
Add: Change in fair value of contingent consideration, net
—
65.3
(3.3)
32.4
Add: Loss (gain) on formation of SBR equity method investment
—
3.2
8.7
(965.7)
Add: Loss on extinguishment of debt and termination of Inventory Intermediation Agreement
—
19.2
—
19.2
Add: Gain on land sales
—
—
—
(1.7)
Less: Recomputed income tax on special items (Note 3)
(40.3)
(22.7)
(40.5)
238.2
Adjusted fully-converted net income (loss) excluding special items
$ (173.8)
$ 857.0
$ (131.6)
$ 1,526.8
Weighted-average shares outstanding of PBF Energy Inc.
115,084,174
123,793,179
116,974,505
125,938,259
Conversion of PBF LLC Series A Units (Note 5)
862,780
910,494
862,780
910,469
Common stock equivalents (Note 6)
—
4,986,702
—
4,698,300
Fully-converted shares outstanding - diluted
115,946,954
129,690,375
117,837,285
131,547,028
Adjusted fully-converted net income (loss) per fully exchanged, fully diluted shares outstanding (Note 6)
$ (2.50)
$ 6.11
$ (2.11)
$ 16.76
Adjusted fully-converted net income (loss) excluding special items per fully exchanged, fully diluted shares outstanding (Note 4, 6)
$ (1.50)
$ 6.61
$ (1.12)
$ 11.61
Three Months Ended
Nine Months Ended
RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS TO INCOME (LOSS) FROM OPERATIONS EXCLUDING SPECIAL ITEMS
September 30,
September 30,
2024
2023
2024
2023
Income (loss) from operations
$ (386.3)
$ 1,077.1
$ (315.8)
$ 2,998.7
Special Items (Note 4):
Add: Non-cash LCM inventory adjustment
154.5
—
154.5
—
Add: LCM inventory adjustment - SBR
0.3
—
(4.2)
—
Add: Change in fair value of contingent consideration, net
—
65.3
(3.3)
32.4
Add: Loss (gain) on formation of SBR equity method investment
—
3.2
8.7
(965.7)
Add: Gain on land sales
—
—
—
(1.7)
Income (loss) from operations excluding special items
$ (231.5)
$ 1,145.6
$ (160.1)
$ 2,063.7
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
Nine Months Ended
September 30,
September 30,
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND EBITDA EXCLUDING SPECIAL ITEMS
2024
2023
2024
2023
Net income (loss)
$ (289.1)
$ 794.1
$ (247.6)
$ 2,210.4
Add: Depreciation and amortization expense
161.8
143.9
464.5
432.2
Add: Interest expense, net
21.4
22.7
49.2
55.2
Add: Income tax (benefit) expense
(118.1)
254.6
(115.7)
729.0
EBITDA
$ (224.0)
$ 1,215.3
$ 150.4
$ 3,426.8
Special Items (Note 4):
Add: Non-cash LCM inventory adjustment
154.5
—
154.5
—
Add: LCM inventory adjustment - SBR
0.3
—
(4.2)
—
Add: Change in fair value of contingent consideration, net
—
65.3
(3.3)
32.4
Add: Loss (gain) on formation of SBR equity method investment
—
3.2
8.7
(965.7)
Add: Loss on extinguishment of debt
—
5.7
—
5.7
Add: Gain on land sales
—
—
—
(1.7)
EBITDA excluding special items
$ (69.2)
$ 1,289.5
$ 306.1
$ 2,497.5
Three Months Ended
Nine Months Ended
September 30,
September 30,
RECONCILIATION OF EBITDA TO ADJUSTED EBITDA
2024
