- Second quarter income from operations of $1,706.6 million (excluding special items, second quarter income from operations of $1,784.2 million)
- Reduced consolidated debt by more than $2.2 billion including a $900 million revolving credit facility repayment, $45 million debt reduction at PBF Logistics and the redemption of $1.25 billion senior secured notes on July 11, 2022
- Net debt to capitalization reduced to 24% versus 59% at year-end 2021, excluding special items
- PBF Energy Announces Agreement to Acquire Remaining Public Stake in PBF Logistics LP
PARSIPPANY, N.J., July 28, 2022 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) today reported second quarter 2022 income from operations of $1,706.6 million as compared to income from operations of $147.5 million for the second quarter of 2021. Excluding special items, second quarter 2022 income from operations was $1,784.2 million as compared to a loss from operations of $120.5 million for the second 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.
The company reported second quarter 2022 net income of $1,235.8 million and net income attributable to PBF Energy Inc. of $1,203.7 million or $9.65 per share. This compares to net income of $69.9 million, and net income attributable to PBF Energy Inc. of $47.9 million or $0.39 per share for the second quarter 2021. Non-cash special items included in the second quarter 2022 results, which decreased net income by a net, after-tax expense of $116.5 million, or $0.93 per share, consisted of a change in the tax receivable agreement liability, a change in fair value of the contingent consideration associated with earn-out provisions related primarily to the Martinez Acquisition, a net tax benefit on remeasurement of deferred tax assets and a gain on the extinguishment of debt related to the repurchase of a portion of our outstanding unsecured notes. Adjusted fully-converted net income for the second quarter 2022, excluding special items, was $1,329.2 million, or $10.58 per share on a fully-exchanged, fully-diluted basis, as described below, compared to adjusted fully-converted net loss of $152.6 million or $(1.26) per share, for the second quarter 2021.
Tom Nimbley, PBF Energy's Chairman and CEO, said, "PBF's second quarter results reflect the impact of tight global supply and surging, post-pandemic demand. Our strong financial results are allowing us to accelerate the repayment of debt we incurred during the pandemic and continue actions to strengthen our balance sheet."
Mr. Nimbley concluded, "We operated well during the second quarter and completed the bulk of our 2022 planned turnaround activity in the first half of the year. We see demand remaining strong even in the face of economic uncertainty. Global product inventories remain low and refineries are running at high utilization to keep pace with demand. We expect that with a solid operating performance, PBF will be able to generate incremental free cash flow that can be used to further strengthen our balance sheet and reward our investors."
Strategic Update and Outlook
PBF is committed to recovering from the effects of the pandemic and evolving into a more resilient and diversified company moving forward. Over the last year and half, we have reduced consolidated debt by over $2.6 billion including the July 11, 2022 redemption of the 9.25% Senior Secured Notes due 2025. Our unsecured debt is now below pre-pandemic levels after over $250 million of open-market purchases at a discount to face-value. We believe these measures provide significant value to shareholders in the near-term and, more importantly, provide long-term value through a strong balance sheet supported by increased cash flow.
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. During the second quarter of 2022, we invested approximately $52 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.
As always, the safety and reliability of our core operations are paramount. We continue to invest in all of our assets and expect full-year 2022 refining capital expenditures in the $500 to $550 million range, which includes advanced purchases of material for future turnarounds. Our annual maintenance, environmental, regulatory and safety capital expenditures are consistently in the $150 to $200 million range. For the second half of 2022, we expect to incur turnaround-related capital expenditures of approximately $100 to $125 million.
PBF Energy Inc. and PBF Logistics LP today announced a definitive agreement and plan of merger pursuant to which PBF Energy will acquire all of the outstanding common units of PBF Logistics it does not already own directly or indirectly for a combination of PBF Energy Class A common stock and cash. PBF Energy beneficially owns approximately 48% of the outstanding common units of PBF Logistics as of July 28, 2022. For additional information on this transaction please refer to the separate joint press release published today.
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, July 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; risks related to the merger with PBFX, including the risk that the transaction is not consummated during the expected timeframe, or at all; the effects related to or resulting from Russia's military action in Ukraine, including the imposition of additional sanctions and export controls, as well as the broader impacts to financial markets and the global macroeconomic and geopolitical environment; the supply, demand, prices and other market conditions for our products or crude oil; 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; 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 continued effect of the COVID-19 pandemic and related governmental and consumer responses; 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).
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SOURCE PBF Energy Inc.