PBF Energy Reports Fourth Quarter and Full Year 2023 Results, Declares Dividend of $0.25 per Share and Announces Increased Share Repurchase Authorization
- Fourth quarter loss from operations of $47.2 million (excluding special items, fourth quarter loss from operations of $46.1 million)
- Full year income from operations of $2,951.5 million (excluding special items, full year income from operations of $2,017.6 million)
- Year-ending consolidated cash balance of approximately $1.8 billion
- Returned more than $180 million to stockholders through dividends and share buybacks in the fourth quarter and approximately $640 million in the year
- Increased total outstanding share repurchase authorization to over $1 billion with new $750 million approval
PARSIPPANY, N.J., Feb. 15, 2024 /PRNewswire/ -- PBF Energy Inc. (NYSE: PBF) today reported fourth quarter 2023 loss from operations of $47.2 million as compared to income from operations of $955.6 million for the fourth quarter of 2022. Excluding special items, fourth quarter 2023 loss from operations was $46.1 million as compared to income from operations of $873.0 million for the fourth quarter of 2022.
The company reported fourth quarter 2023 net loss of $48.4 million and net loss attributable to PBF Energy Inc. of $48.4 million or $(0.40) per share. This compares to net income of $656.1 million, and net income attributable to PBF Energy Inc. of $637.8 million or $4.86 per share for the fourth quarter of 2022. Special items in the fourth quarter 2023 results, which increased our results by a net, after-tax benefit of $0.7 million, or $0.01 per share, primarily consisted of net changes in the fair value of contingent consideration associated with the acquisition of the Martinez refinery and related logistics assets, and a benefit related to a change in the Tax Receivable Agreement liability, offset by a decrease to our gain on formation of Saint Bernard Renewables ("SBR") equity method investment and our share of the SBR lower-of-cost-or-market ("LCM") inventory adjustment. Adjusted fully-converted net loss for the fourth quarter 2023, excluding special items, was $49.4 million, or $(0.41) per share on a fully-exchanged, fully-diluted basis, as described below, compared to adjusted fully-converted net income of $582.9 million or $4.41 per share, for the fourth quarter 2022.
PBF's President and Chief Executive Officer Matthew Lucey said, "In 2023, we completed the transformation of PBF Energy's balance sheet. Our financial discipline has put PBF on the strongest financial footing in our history as a public company. Our operations delivered our second-best financial year." Mr. Lucey continued, "In addition to enhancing equity value by further reducing debt by approximately $700 million, we demonstrated our commitment to shareholder returns by returning approximately $640 million through dividends and share buybacks in 2023. We are pleased to announce a $750 million increase to our buyback authorization, resulting in more than $1 billion in current capacity. We remain focused on delivering value to our shareholders."
Mr. Lucey concluded, "Looking ahead, we continue to invest in and optimize our assets. We are committed to safe, responsible and reliable operations, and we are focused on effectively capturing markets to deliver strong financial results. Global refining markets remain structurally tight, and new refinery additions will be needed to offset growing global demand as well as shutdowns and conversions of existing refineries. In this environment, PBF's complex, predominantly coastal refining system, is well-positioned to thrive."
Income from operations was $2,951.5 million for the year ended December 31, 2023 as compared to income from operations of $4,153.2 million for the year ended December 31, 2022. Excluding special items, income from operations was $2,017.6 million for the year ended December 31, 2023 as compared to income from operations of $4,201.5 million for the year ended December 31, 2022. Adjusted fully-converted net income for the year ended December 31, 2023, excluding special items, was $1,477.3 million, or $11.32 per share on a fully-exchanged, fully-diluted basis, as compared to an adjusted fully-converted net income, excluding special items, of $2,963.5 million, or $23.36 per share, for the year ended December 31, 2022.
PBF Energy Inc. Declares Dividend
The company announced today that it will pay a quarterly dividend of $0.25 per share of Class A Common Stock on March 14, 2024, to shareholders of record at the close of business on February 29, 2024.
Renewable Diesel
SBR averaged approximately 12,000 barrels per day of renewable diesel production in the fourth quarter. Production in the fourth quarter was impacted primarily by a renewable diesel unit catalyst change performed during the quarter.
Strategic Update and Outlook
PBF's operational and financial performance in 2023 allowed the company to cement the work to establish a firm foundation upon which we can build a sustainable and diversified future. At year-end, we had approximately $1.8 billion of cash. Our unsecured debt is now below pre-pandemic levels and PBF was in a net cash position at year-end 2023. We paid over $105 million in dividends in 2023 including the 25% dividend increase announced in November 2023. We continued to execute on our share repurchase program, finishing the year with over $530 million in share repurchases, including approximately $150 million repurchased during the fourth quarter. PBF's Board of Directors authorized a $750 million increase to the existing share repurchase authorization which allows for more than $1 billion of additional repurchases from today. We believe these measures have generated significant value for our investors in the near-term and, more importantly, demonstrate our commitment to fiscal discipline, long-term value creation and shareholder returns.
In 2024, PBF is committed to conducting extensive maintenance and multiple turnarounds across our refining system. Our goal is to sustain safe, reliable and environmentally responsible operations to supply the markets with our vital products. Our current turnaround schedule for the first half of 2024 is as follows, subject to change:
- East Coast - Delaware City FCC (Q1)
- Mid-Continent - Hydrocracker, Crude and UDEX (Q1)
- West Coast - Martinez Hydrocracker (Q2)
Timing and throughput ranges provided reflect current expectations and are subject to change based on market conditions and other factors. PBF's total refining system throughput for full-year 2024 is expected to be approximately 895,000 to 955,000 barrels per day. First quarter throughput expectations are included in the table below.
Expected throughput ranges (barrels per day) | ||
First Quarter 2024 | ||
Low | High | |
East Coast | 270,000 | 290,000 |
Mid-continent | 100,000 | 110,000 |
Gulf Coast | 170,000 | 180,000 |
West Coast | 290,000 | 310,000 |
Total | 830,000 | 890,000 |
Guidance provided constitutes forward-looking information and is based on current PBF Energy operating plans, company assumptions and company configuration. 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.
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, February 15, 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 (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 include, without limitation, the Company's expectations with respect to its strategic update and outlook, including its planned maintenance schedule and throughput ranges, and its future earnings and operations. 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 integrate and 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; geopolitical developments, including as a result of Russia's military action in Ukraine, the outbreak of armed hostilities in the middle east and disruptions in international shipping; 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 INC. AND SUBSIDIARIES | ||||||||||||
EARNINGS RELEASE TABLES | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(Unaudited, in millions, except share and per share data) | ||||||||||||
Three Months Ended | Year Ended | |||||||||||
December 31, | December 31, | |||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||
Revenues | $ 9,138.7 | $ 10,846.3 | $ 38,324.8 | $ 46,830.3 | ||||||||
Cost and expenses: | ||||||||||||
Cost of products and other | 8,247.7 | 9,045.1 | 32,671.3 | 39,049.1 | ||||||||
Operating expenses (excluding depreciation and amortization expense as reflected below) | 671.2 | 695.0 | 2,694.9 | 2,599.0 | ||||||||
Depreciation and amortization expense | 135.8 | 137.1 | 560.0 | 503.6 | ||||||||
Cost of sales | 9,054.7 | 9,877.2 | 35,926.2 | 42,151.7 | ||||||||
General and administrative expenses (excluding depreciation and amortization expense as reflected below) | 105.4 | 93.8 | 362.5 | 468.7 | ||||||||
Depreciation and amortization expense | 3.5 | 1.7 | 11.5 | 7.5 | ||||||||
Change in fair value of contingent consideration, net | (78.2) | (82.6) | (45.8) | 48.3 | ||||||||
Equity loss in investee | 59.9 | — | 45.3 | — | ||||||||
Loss (gain) on formation of SBR equity method investment | 40.6 | — | (925.1) | — | ||||||||
Loss (gain) on sale of assets | — | 0.6 | (1.3) | 0.9 | ||||||||
Total cost and expenses | 9,185.9 | 9,890.7 | 35,373.3 | 42,677.1 | ||||||||
Income (loss) from operations | (47.2) | 955.6 | 2,951.5 | 4,153.2 | ||||||||
Other income (expense): | ||||||||||||
Interest expense, net | (8.6) | (29.4) | (63.8) | (246.0) | ||||||||
Change in Tax Receivable Agreement liability | 2.0 | (2.1) | 2.0 | (290.3) | ||||||||
Change in fair value of catalyst obligations | — | (1.7) | 1.1 | (2.0) | ||||||||
Loss on extinguishment of debt | — | — | (5.7) | (66.1) | ||||||||
Other non-service components of net periodic benefit cost | 0.2 | 2.2 | 0.7 | 8.8 | ||||||||
Income (loss) before income taxes | (53.6) | 924.6 | 2,885.8 | 3,557.6 | ||||||||
Income tax (benefit) expense | (5.2) | 268.5 | 723.8 | 584.8 | ||||||||
Net income (loss) | (48.4) | 656.1 | 2,162.0 | 2,972.8 | ||||||||
Less: net income attributable to noncontrolling interests | — | 18.3 | 21.5 | 96.0 | ||||||||
Net income (loss) attributable to PBF Energy Inc. stockholders | $ (48.4) | $ 637.8 | $ 2,140.5 | $ 2,876.8 | ||||||||
Net income (loss) available to Class A common stock per share: | ||||||||||||
Basic | $ (0.40) | $ 5.04 | $ 17.13 | $ 23.47 | ||||||||
Diluted | $ (0.40) | $ 4.86 | $ 16.52 | $ 22.84 | ||||||||
Weighted-average shares outstanding-basic | 120,999,329 | 126,450,787 | 124,953,858 | 122,598,076 | ||||||||
Weighted-average shares outstanding-diluted | 121,866,353 | 132,099,338 | 130,509,448 | 126,860,106 | ||||||||
Dividends per common share | $ 0.25 | $ 0.20 | $ 0.85 | $ 0.20 | ||||||||
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) | $ (48.7) | $ 642.6 | $ 2,155.7 | $ 2,897.5 | ||||||||
Adjusted fully-converted net income (loss) per fully exchanged, fully diluted share | $ (0.40) | $ 4.86 | $ 16.52 | $ 22.84 | ||||||||
Adjusted fully-converted shares outstanding - diluted (Note 6) | 121,866,353 | 132,099,338 | 130,509,448 | 126,860,106 | ||||||||
See Footnotes to Earnings Release Tables | ||||||||||||
PBF ENERGY INC. AND SUBSIDIARIES | ||||||||||||||
RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP (Note 7) | ||||||||||||||
(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 | Year Ended | ||||||||||||
December 31, | December 31, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Net income (loss) attributable to PBF Energy Inc. stockholders | $ (48.4) | $ 637.8 | $ 2,140.5 | $ 2,876.8 | ||||||||||
Less: Income allocated to participating securities | — | — | — | — | ||||||||||
Income (loss) available to PBF Energy Inc. stockholders - basic | (48.4) | 637.8 | 2,140.5 | 2,876.8 | ||||||||||
Add: Net income (loss) attributable to noncontrolling interest (Note 2) | (0.5) | 6.5 | 20.5 | 27.9 | ||||||||||
Less: Income tax benefit (expense) (Note 3) | 0.2 | (1.7) | (5.3) | (7.2) | ||||||||||
Adjusted fully-converted net income (loss) | $ (48.7) |
Visual performance / price development - PBF Energy Inc - Class A
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