Pbf Energy Inc. · NYSE:PBF
Pbf Energy — Merger or Acquisition (June 2019)
11 slides from Pbf Energy's merger presentation, Jun 11, 2019
Slide 1: Acquisition of Shell Martinez Refinery
Acquisition of Shell Martinez Refinery June 11, 2019 1
Slide 2: Safe Harbor Statements
Safe Harbor Statements This presentation contains forward-looking statements made by PBF Energy Inc. (“PBF Energy”), the indirect parent of PBF Logistics LP (“PBFX”, or “Partnership”, and together with PBF Energy, the “Companies”, or “PBF”), and their management teams. Such statements are based on c
Slide 3: Acquisition Highlights
Acquisition Highlights Martinez is a premier West Coast refinery with dual-coking, high-conversion operations and a Nelson Complexity of 16.1 Significantly accretive to earnings with an expected acquisition cost of $900 million to $1 billion with a pro forma historical annual EBITDA of $275 - $3
Slide 4: Transaction Summary
Transaction Summary Cascading upfront consideration based on the date of closing: • $1.0 billion closing on or before October 1 • $990 million closing on November 1 • $980 million closing on December 1 • $970 million closing on January 1 • $900 million closing on April 1 or thereafter Q1-2020 Tu
Slide 5: Attractive Purchase Price
Attractive Purchase Price $ per Complexity Barrel PBF acquisitions completed at an Versus recent acquisition average of average of $225/complexity barrel(1) $595/complexity barrel $2,131 $978 $806 $712 $534 $336 $396 $411 $233 $298 $196 $188 $170 $102 $152 $134 $122 Source: Citi Research and company
Slide 6: Nelson Complexity
California Refining Landscape Most Complex California Refining System 15.5 14.5 13.8 13.6 11.8 Nelson Complexity California PBF CVX PSX MPC VLO Throughput 312 514 259 507 203 (kbpd) Source: Oil & Gas Journal Expands PBF’s footprint to include both Northern and Southern California Quicker respons
Slide 7: PBF’s Martinez Potential Earnings Power
PBF’s Martinez Potential Earnings Power Historical Pro Forma EBITDA(1) $275 - $375 million West Coast Operational and other synergies(2) $125 million $1,929 IMO-driven Benefits(3) $100 - $200 million Synergies ramp to reach an expected run-rate of $125 million in third year of ownership IMO-driv
Slide 8: Execution of Strategic Geographic Diversification
Execution of Strategic Geographic Diversification Over 1 million barrels per day of throughput capacity in four PADDs(1) Toledo PADD 4 PADD 2 PADD 5 Paulsboro Martinez PADD 1 Delaware City Torrance PADD 3 Chalmette ___________________________ 1. Assuming successful close of the announced transaction
Slide 9: Appendix
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Slide 10: Asset Overview
Asset Overview Martinez Refinery Indicative Inputs • Heavy: 85% - 90% • Light/Medium: 5% - 10% • Other: 5% - 10% • Average crude API: 20 degrees - TAN: 2.7 Martinez Refinery Indicative Yields • Gasoline: 55% – 60% • Distillate: 35% – 40% (approximately 2/3 Jet, 1/3 CARB Diesel) • Other: 10% – 15
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures Our management uses EBITDA (earnings before interest, income taxes, depreciation and amortization) as a measure of operating performance to assist in comparing performance from period to period on a consistent basis and to readily view operating trends, as a measure for p