Pbf Energy Inc. · NYSE:PBF
Pbf Energy — Morgan Stanley Refining Corporate Access Day (May 2013)
19 slides from Pbf Energy's conference presentation, May 16, 2013
Slide 1: PBF Energy Inc. Morgan Stanley Refining Corporate Access Day
PBF Energy Inc.Morgan Stanley Refining Corporate Access DayMay 16, 2013
Slide 2: Forward-looking statements
This presentation contains forward-looking statements made by PBF Energy Inc. (the “Company” or “PBF”) and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expe
Slide 3: Summary Company Profile
PBF owns three oil refineries located in Ohio, Delaware and New JerseyAggregate throughput capacity of approximately 540,000 barrels per dayWeighted average Nelson Complexity of 11.3Fifth largest U.S. independent refiner East Coast rail infrastructure provides the entire system access to WTI-based,
Slide 4: Our History: Key Events and Milestones
Our History: Key Events and Milestones March 2011Completed acquisition of Toledo Refinery December 2010Completed acquisition of Paulsboro Refinery October 2011Delaware City Refinery operational June 2010Completed acquisition of Delaware City Refinery 2008O’Malley and team form PBF Energy 2008 2009 2
Slide 5: PBF's Industry Position
High quality refining assets with weighted-average Nelson Complexity of 11.3Exposure to Mid-Continent and East Coast economicsTwo most complex refineries on East Coast with 100% of operating coking capacityScalable opportunity with management track record of growth by acquisitionHypothetical 150,000
Slide 6: Why will the U.S. refining industry prosper for the next 5 years?
U.S. Refining Industry Strengths InexpensiveNatural Gas Growth in supply driving decline in U.S. natural gas pricingU.S. natural gas currently priced more than 60% below Europe~$0.10 / bbl benefit to domestic refiners for every $1 / MMBtu difference in natural gas price North American CrudeOil Produ
Slide 7: North American shale and crude basins map
PermianBasin EagleFord OilSands Bakken Utica Marcellus Source: EIA Data, company announcements
Slide 8: North American Crude Production
North American Crude Production Other Placeholder: North American crude production is estimated to grow approximately 53% in the next twenty years.U.S. light, sweet production increasePushes barrels South (via water, pipeline and rail), East and West (primarily by rail)Ultimately displaces USGC impo
Slide 9: Increasing Access to Cost-advantaged North American Crudes is the Key
Increasing Access to Cost-advantaged North American Crudes is the Key. Delaware City Rail Facility
Slide 10: PBF's East Coast Rail Infrastructure
PBF’s East Coast Rail Infrastructure. PBF’s double-loop track at Delaware City allows PBF to save $3/bblversus using 3rd party facilities
Slide 11: Unit Trains Arriving at Double-Loop Track
Unit Trains Arriving at Double-Loop Track The dual-loop track light crude unloading facility is capable of discharging a unit train in approximately 14 hours Discharge capacity is expected to reach 100,000 bpd by the end of 2013
Slide 12: PBF Crude-by-rail Cost Advantage
PBF Crude-by-rail Cost Advantage PBF is the only heavy, sour refiner on the East Coast PBF’s ability to process heavy, sour crudes can provide a competitive advantagePBF currently operates a 40,000 bpd heavy crude unloading facility and has announced plans to expand capacity to 80,000 bpd
Slide 13: Crude-by-Rail Pipeline
Crude-by-Rail Pipeline Planned PBF Leased Railcar Delivery Schedule Note: Based on current third party railcar manufacturer delivery schedules (subject to change) Longer-term focus on logisticsRail services agreements with Norfolk Southern and BNSFIncreased ability to load unit trainsTransloading ag
Slide 14: System-wide Operational Efficiency and Effectiveness
System-wide Operational Efficiency and Effectiveness PBF is focused on a series of low-cost, high-return projects to boost the earnings power of our refineriesMid-continentEnhanced production distribution facilitiesIncreased flexibility for crude oil storageIncreased production of high-value chemica
Slide 15: Capitalization Table
Capitalization Table No near-term debt maturities $675.5 million 8.25% Senior Secured Notes due 2020 Net Debt/Total Cap < 15% as of March 31, 2013 PBF Financial Snapshot – March 31, 2013 ($MM, Unless Otherwise Noted) Capitalization Table Actual Cash and Cash Equivalents $404.1 Debt Long-Term Debt (i
Slide 16: Dividend Policy
Dividend PolicyIntend to pay $0.30 / share quarterly dividendDividend policy aligns with sustainable cash flow generation potential Title: Financial Strategy and Track Record Maintain capital discipline and conservative capital structure Continue to focus on accretive acquisitions and high return in
Slide 17: Ethanol RINs – The Cost of Compliance
Ethanol RINs – The Cost of Compliance Other Placeholder: RINs obligations are incurred through domestics sales of gasoline and dieselPBF Energy currently blends part of its gasoline production which fulfills a significant portion of its ethanol RINs obligationPBF expects its blending capability to i
Slide 18: Crude Market – Differentials Matter
Crude Market – Differentials Matter PBF expects increased supplies of Canadian-heavy crude will continue to support wide differentials to BrentPBF’s East Coast margins are negatively impacted by a narrow Brent – ASCI spread Source: Platts $/BBL
Slide 19: PBF MLP?
PBF MLP? PBF has the assets for a logistics-focused Master Limited Partnership (MLP)Possible MLP assets include but are not limited to:Rail terminals and railcarsRefinery truck terminalsPipeline assetsTank storage facilities
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