Pbf Energy Inc. · NYSE:PBF
Pbf Energy — Investor Presentation (September 2014)
21 slides from Pbf Energy's investor presentation, Sep 3, 2014
Slide 1: PBF Energy September 2014
PBF Energy September 2014
Slide 2: Safe Harbor Statements
2 Safe Harbor 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
Slide 3: PBF Energy Company Profile
3 PBF Energy Company Profile Market capitalization of $2.7 billion and enterprise value of $3.5 billion (1) Ba3 / BB- credit ratings Owns three oil refineries in Ohio, Delaware and New Jersey Aggregate throughput capacity of ~540,000 bpd Weighted-average Nelson Complexity of 11.3 Access
Slide 4: PBF Logistics LP Company Profile
4 PBF Logistics launched its initial public offering on April 30, 2014 and commenced trading on the NYSE on May 9, 2014 Market Cap of ~$800 million as of 9/2/14 PBF Energy owns 50.2% of PBFX, 100% of the GP and IDRs PBFX’s assets consist of a light crude oil rail unloading terminal at the De
Slide 5: Increasing Shareholder Value in 2014
5 Increasing Shareholder Value in 2014 Implemented several projects which enhance margin by over $170 million on an annualized basis Launched PBFX which strengthened the balance sheet and provides PBF with a valuable partner for growth Successfully increased size of Asset-backed Revolving Cred
Slide 6: Strong Balance Sheet Provides a Platform for Growth
6 PBF Energy maintains a conservative financial profile with strong liquidity and access to capital markets Net Debt to Net Capitalization at June 30, 2014 was 17% Balance sheet strengthened by successful PBF Logistics IPO Net proceeds contributed approximately $330 million(1) in cash to PBF
Slide 7: U.S. Refining Industry Landscape
7 U.S. Refining Industry Landscape Inexpensive Natural Gas Growth in supply driving decline in U.S. natural gas pricing U.S. natural gas, 2014 year-to-date, prices almost 60% below European natural gas North American Crude Oil Production Secular growth in North American crude oil production
Slide 8: Strong Fundamentals for Industry and PBF
8 Strong Fundamentals for Industry and PBF Reached inflection point with growth of domestic crude oil and natural gas in 2010- 2011 Bakken crude production has grown over 400% (910 mbpd) from 2010 through 2014 Pushes barrels South (via pipeline and rail), East and West (primarily by rail) Ul
Slide 9: PBF's Crude-by-Rail Program
9 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 East Coast access to cost-advantaged North American crude oil provides optionality 130,000 bpd PBFX
Slide 10: PBF's Refining Assets
10 PBF’s Refining Assets Annual throughput of ~110 million barrels 2:1:1 Brent-based benchmark crack Targeted crude differential of Brent minus $5-6/bbl Targeted Capture Rate of ~60% Annual throughput of ~50 million barrels 4:3:1 WTI-based benchmark crack Targeted crude differential of
Slide 11: PBF's 2014 margin improvement initiatives
11 PBF’s 2014 margin improvement initiatives *Figures provided do not indicate a full year of margin contribution in 2014 but are estimates based on a full year of operations using historical prices and subject to change based on project completion timelines, cost of RINs, market and other factors T
Slide 12: Increasing Shareholder Value in 2014
12 Increasing Shareholder Value in 2014 Operate safely and efficiently Maintain capital discipline and conservative balance sheet Invest in margin improvement projects Grow through strategic acquisitions Return cash to investors through dividends and buybacks
Slide 13: Appendix
Appendix
Slide 14: WTI discount to Brent
14 WTI discount to Brent Widening Brent – WTI differential positively impacts cost-advantage of North American produced crude oils (35) (30) (25) (20) (15) (10) (5) - 5 10 15 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ($/b b l) WTI - Brent Min Max (09-12) 2014 2013 Average (09-12) Source: Platt
Slide 15: WCS discount to Brent
15 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 ($/b b l) WCS - Brent Min Max (09-12) 2014 2013 Average (09-
Slide 16: ASCI discount to Brent
16 ASCI discount to Brent ASCI is an indicator for medium-sour barrels processed at PBF’s East Coast facilities (25) (20) (15) (10) (5) - 5 10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ($/b b l) ASCI - Brent Min Max (07-12) 2014 2013 Average (07-12) Source: Platts, Argus
Slide 17: Bakken versus Brent
17 Bakken versus Brent The Bakken-Brent differential is a benchmark for North American light-sweet crude processed at PBF’s East Coast refineries Note: Prior to May 2010 Bakken pricing is unavailable (80) (60) (40) (20) - 20 40 60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ($/b b l) Bakken - Br
Slide 18: Canadian Syncrude Differential versus WTI
18 Canadian Syncrude Differential versus WTI Toledo processes approximately 35% to 40% Syncrude (25) (20) (15) (10) (5) - 5 10 15 20 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ($/b b l) Syncrude - WTI Min Max (07-12) 2014 2013 Average (07-12) Source: Platts
Slide 19: PBF's East Coast Benchmark Crack
19 PBF’s East Coast Benchmark Crack 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 20: PBF's Mid-continent Benchmark Crack
20 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 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 21: Ce a tes oo
Ce a tes oo eee