Pbf Energy Inc. · NYSE:PBF
Pbf Energy — Investor Presentation (March 2014)
22 slides from Pbf Energy's investor presentation, Mar 6, 2014
Slide 1: PBF Energy Inc. March 2014
PBE PBF Energy Inc. March 2014
Slide 2: Legal Notice / Forward-Looking Statements
2 Legal Notice / 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 an
Slide 3: U.S. Refining Industry Strengths
3 U.S. Refining Industry Strengths Inexpensive Natural Gas Growth in supply driving decline in U.S. natural gas pricing ― U.S. natural gas, on an annual basis, priced more than 60% below Europe North American Crude Oil Production Secular growth in North American crude oil production ― Favorable pric
Slide 4: Summary Company Profile
4 PBF owns three oil refineries located in Ohio, Delaware and New Jersey ― Aggregate throughput capacity of approximately 540,000 barrels per day ― Weighted-average Nelson Complexity of 11.3 ― Fifth largest U.S. independent refiner ― East Coast rail infrastructure results in the entire system having
Slide 5: PBF's Refining Assets
PBF’s Refining Assets Annual throughput of ~110 million barrels 2:1:1 Brent-based benchmark crack Targeted crude differential of Brent minus $5-6/bbl Targeted Capture Rate of ~60% Annual throughput of ~50 million barrels 4:3:1 WTI-based benchmark crack Targeted crude differential of WTI plus $2-3/bb
Slide 6: PBF's 2014 margin improvement initiatives
PBF’s 2014 margin improvement initiatives 6 Improved East Coast distillate yield ― Converted 100% of 2000ppm Heating Oil into either Ultra Low Sulfur Diesel (ULSD) or Ultra Low Sulfur Heating Oil (ULSHO) ― Based on 2013 pricing, this is a potential margin swing of $3.00 per barrel on these distillat
Slide 7: Increasing East Coast access to cost-advantaged North American crude oil
7 Increasing East Coast access to currently cost-advantaged North American crude oil PBF’s onsite rail-infrastructure at Delaware City provides the opportunity to save approximately $3/bbl on delivered Bakken barrels versus using 3rd party facilities Approximate Delivery Capacity (Barrels per day) T
Slide 8: Safety of Rail Operations
8 Safety of Rail Operations PBF will lead the way on rail safety New-style DOT-111A rail cars, also referred to as CPC-1232, ordered after October 1, 2011 are the most recent design and include thicker shells, half-head shields, and protective coverings over the top fittings and improved pressure re
Slide 9: PBF Rail Deliveries of Light Crude to East Coast
PBF Rail Deliveries of Light Crude to East Coast PBF is able to deliver Bakken barrels to Delaware City at a cost of less than $12 per barrel PBF sees increasing opportunities in other light North American crudes oils, such as Light-sour Blend, which can be economically delivered to our refineries 9
Slide 10: PBF Rail Deliveries of Canadian Heavy Crude to East Coast
PBF Rail Deliveries of Canadian Heavy Crude to East Coast Deliveries of Canadian heavy crude are dependent on access to coiled and insulated railcars as well as rail transloading facilities in Canada Transportation costs for Canadian- heavy are expected to decline from about $21 per barrel in the fi
Slide 11: PBF's Crude-by-Rail Program
11 PBF’s Crude-by-Rail Program Planned Leased or Owned Railcars Note: Schedule is subject to change based on current company plans and on current third party railcar manufacturer delivery schedules Longer-term focus on logistics ― Rail services agreements with Norfolk Southern, BNSF, Savage ― Supply
Slide 12: North American Crude Production
North American Crude Production U.S. crude production is estimated to grow by 55% (3 million bpd) from 2010 through 2014 ― Pushes barrels South (via water, pipeline and rail), East and West (primarily by rail) ― Ultimately displaces USGC imports Canadian crude production is expected to grow by 32% (
Slide 13: WTI discount to Brent
13 WTI discount to Brent Widening Brent – WTI differential positively impacts cost-advantage of North American produced crude oils (35) (30) (25) (20) (15) (10) (5) - 5 10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ($/b b l) WTI - Brent Min Max (09-12) 2014 2013 Average (09-12) Source: Platts
Slide 14: WCS discount to Brent
14 WCS discount to Brent Expanding differentials positively impact rail economics for Canadian Heavy crude oil processed at PBF’s East Coast refineries (70) (60) (50) (40) (30) (20) (10) - 10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ($/b b l) WCS - Brent Min Max (09-12) 2014 2013 Average (09-
Slide 15: Bakken versus Brent
Bakken versus Brent 15 Note: Prior to May 2010 Bakken pricing is unavailable Expanding differentials positively impact rail economics for Mid-continent light-sweet crude oil processed at PBF’s East Coast refineries (80) (60) (40) (20) - 20 40 60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ($/b b
Slide 16: ASCI discount to Brent
16 ASCI discount to Brent ASCI is an indicator for medium-sour barrels processed at PBF’s East Coast facilities (25) (20) (15) (10) (5) - 5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ($/b b l) ASCI - Brent Min Max (07-12) 2014 2013 Average (07-12) Source: Platts, Argus
Slide 17: Canadian Syncrude Differential versus WTI
17 Canadian Syncrude Differential versus WTI Toledo processes approximately 35% to 40% Syncrude (25) (20) (15) (10) (5) - 5 10 15 20 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ($/b b l) Syncrude - WTI Min Max (07-12) 2014 2013 Average (07-12) Source: Platts
Slide 18: PBF's East Coast Benchmark Crack
PBF’s East Coast Benchmark Crack 18 NYH 2:1:1 = ((–2*Dated Brent) + (1*NY RBOB) + (1*NO.2 Heating Oil))/2 - 5 10 15 20 25 30 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ($/b b l) NYH 2:1:1 Min Max (07-12) 2014 2013 Average (07-12) Source: Platts
Slide 19: PBF's Mid-continent Benchmark Crack
PBF’s Mid-continent Benchmark Crack Chicago 4:3:1 = ((–4*WTI) + (3*Chic CBOB pipe) + (0.5*Chic ULSD Pipe) + (0.5*USGC Jet Kero 54))/4 19 Note: Prior to September 2009 Rul87 Chicago Pipe is used for substitution of CBOB Chicago Pipe, which is unavailable prior to this period (50) (40) (30) (20) (10)
Slide 20: PBF Logistics LP
20 PBF Logistics LP Submitted confidential registration statement in August 2013 PBF has identified a pool of assets that could be contributed to a logistics- focused Master Limited Partnership (MLP) Possible MLP assets include but are not limited to: ― Rail terminals and railcars ― Refinery truck t
Slide 21: Increasing Shareholder Value in 2014
21 Increasing Shareholder Value in 2014 Operate safely and efficiently Maintain capital discipline and conservative balance sheet Invest in margin improvement projects Grow through strategic acquisitions Return cash to investors
Slide 22: PBF
PBE