Pbf Energy Inc. · NYSE:PBF
Pbf Energy — Barclays CEO Energy-Power Conference 2013
20 slides from Pbf Energy's conference presentation, Sep 12, 2013
Slide 1: PBF Energy Inc. Barclays CEO Energy-Power Conference
PBF Energy Inc. Barclays CEO Energy-Power Conference September 12, 2013
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 currently priced more than 60% below Europe ― ~$0.10 / bbl benefit to domestic refiners for every $1 / MMBtu difference in natural gas price North American Crude
Slide 4: Summary Company Profile
4 PBF owns three oil refineries located in Ohio, Delaware and New Jersey ― Aggregate throughput capacity of approximately 540,000 barrels per day ― Weighted-average Nelson Complexity of 11.3 ― Fifth largest U.S. independent refiner ― East Coast rail infrastructure provides the entire system access t
Slide 5: Toledo Refinery Optimization Project
5 Toledo Refinery Optimization Project Expected Completion Capital, MM$* Benefit, MM$/yr EBITDA* Crude Unloading by Truck Complete 4.5 11.0 Buckeye Pipeline Products Outlet Complete 4.9 Additional Crude Tank Q3-2014 18.3 16.0 Chemicals Expansion Q4-2014 20.0 19.0 FCC Strategic Projects 32.0 Reactor
Slide 6: Increasing access to cost-advantaged North American crude production
6 Increasing access to cost-advantaged North American crude production 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
Slide 7: North American Crude Production
North American Crude Production U.S. crude production is estimated to grow by 35% in 2013 from 2010 ― 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 25% in 2013 from 2010 ― Bi
Slide 8: 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 (~70,000 bbl) in ~14 hours, a capacity of approx.120,000 bpd 8 Bakken Deliveries (Actual/Estimate) (bpd) 2013 1st Quarter 38,000 2013 2nd Quarter 75,000 2013 3rd Quarte
Slide 9: PBF Rail Deliveries of Canadian Heavy Crude
Transportation costs decline from above $20 per barrel to below $17 per barrel as PBF-controlled railcar fleet expands PBF Rail Deliveries of Canadian Heavy Crude Deliveries of Canadian heavy crude are dependent on access to coiled and insulated railcars as well as rail transloading facilities in Ca
Slide 10: Crude-by-Rail Pipeline
10 Crude-by-Rail Pipeline Planned Leased or Owned Railcars Note: Schedule is subject to change based on company plans and on current third party railcar manufacturer delivery schedules Longer-term focus on logistics ― Rail services agreements with Norfolk Southern and BNSF Increased ability to load
Slide 11: PBF MLP
11 PBF MLP 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 terminals ―
Slide 12: PBF's Strong Financial Position
No near-term debt maturities ― $675.5 million 8.25% Senior Secured Notes due 2020 Net Debt/Net Cap was approximately 30% as of June 30, 2013 Liquidity ― $1.575 billion Asset-Backed Facility (with accordion up to $1.8 billion) ― Approximately $650 million of liquidity as of June 30, 2013 12 PBF’s Str
Slide 13: Mid-continent differential versus WTI
13 PBF’s Key Mid-continent differential versus WTI Toledo processes approximately 35% to 40% Syncrude (25.0) (20.0) (15.0) (10.0) (5.0) - 5.0 10.0 15.0 20.0 $/b b l Syncrude - WTI Source: Argus, Platts
Slide 14: Brent versus WTI Narrowing
14 Brent versus WTI Narrowing Brent – WTI differential negatively impacts cost-advantage of North American produced crude oils (30.0) (25.0) (20.0) (15.0) (10.0) (5.0) - $/b b l WTI - Brent Source: Argus, Platts
Slide 15: PBF Crude-by-Rail Differentials versus Brent
15 PBF Crude-by-Rail Differentials versus Brent Narrowing differentials impact rail economics for North American produced crude oil processed at PBF’s East Coast refineries (70.0) (60.0) (50.0) (40.0) (30.0) (20.0) (10.0) - $/b b l WCS - Brent Bakken - Brent Source: Argus, Platts
Slide 16: ASCI Differential versus Brent
16 ASCI Differential versus Brent ASCI is an indicator for medium-sour barrels processed at PBF’s East Coast facilities (12.0) (10.0) (8.0) (6.0) (4.0) (2.0) - 2.0 $/b b l ASCI - Brent Source: Argus, Platts
Slide 17: PBF's East Coast Benchmark Crack
PBF’s East Coast Benchmark Crack 17 NYH 2:1:1 = (–2)*(Dated Brent) + 1*(NY RBOB) + 1*(NO.2 Heating Oil) - 5 10 15 20 25 30 $/b b l 2:1:1 Source: Platts
Slide 18: PBF's Mid-continent Benchmark Crack
PBF’s Mid-continent Benchmark Crack Chicago 4:3:1 = (–4)*(WTI) + 3*(Chic CBOB pipe) + .5*(Chic ULSD Pipe) + .5*(USGC Jet Kero 54) 18 - 5 10 15 20 25 30 35 40 45 50 $/b b l 4:3:1 Source: Platts
Slide 19: What will the future bring?
19 What will the future bring? Fundamentals have not changed ― North American refiners have a cost advantage with access to cheap natural gas ― North American crude oil production continues to increase ― US crude export ban remains in place ― US refiners can export products PBF’s assets are well pos
Slide 20: PBE
PBE
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