UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark one)
☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended: December 31, 2024
or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 001-35764
PBF ENERGY INC.
(Exact name of registrant as specified in its charter)
Delaware
45-3763855
(State or other jurisdiction of incorporation
or organization)
(I.R.S. Employer Identification No.)
One Sylvan Way, Second Floor
Parsippany New Jersey
07054
(Address of principal executive offices)
(Zip Code)
(973) 455-7500
(Registrants’ telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act.
Title of Each Class
Trading Symbol
Name of Each Exchange on Which Registered
Class A Common Stock, par value $.001
PBF
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None.
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the
Securities Act. x Yes o No
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of
the Act. o Yes x No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days. x Yes o No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required
to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
x Yes o No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated
filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the
Exchange Act.
Large accelerated
filer
☒
Accelerated filer ☐
Non-accelerated
filer
☐
Smaller reporting
company
☐
Emerging growth
company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards provided pursuant to
Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s
assessment of the effectiveness of its internal control over financial reporting under section 404(b) of the
Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its
audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial
statements of the registrant included in the filing reflect the correction of an error to previously issued financial
statements. o
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis
of incentive-based compensation received by any of the registrant’s executive officers during the relevant
recovery period pursuant to §240.10D-1(b). o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act). ☐ Yes ☒ No
The aggregate market value of the Common Stock of PBF Energy Inc. held by non-affiliates as of June 30,
2024, the last business day of the registrant’s most recently completed second fiscal quarter, was approximately
$5.3 billion based upon the New York Stock Exchange Composite Transaction closing price.
As of February 7, 2025, PBF Energy Inc. had 115,313,481 shares of Class A common stock and 12 shares of
Class B common stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
PBF Energy Inc. intends to file with the Securities and Exchange Commission a definitive Proxy Statement for
its Annual Meeting of Stockholders within 120 days after December 31, 2024. Portions of the Proxy Statement
are incorporated by reference in Part III of this Form 10-K to the extent stated herein.
PBF ENERGY INC.
TABLE OF CONTENTS
PART I
Item 1.
Business
8
Item 1A. Risk Factors
27
Item 1B. Unresolved Staff Comments
53
Item 1C. Cybersecurity
54
Item 2.
Properties
55
Item 3.
Legal Proceedings
56
Item 4.
Mine Safety Disclosures
60
PART II
Item 5.
Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer
Purchases of Equity Securities
61
Item 6.
[RESERVED]
63
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
64
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
100
Item 8.
Financial Statements and Supplementary Data
101
Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
101
Item 9A. Controls and Procedures
102
Item 9B. Other Information
102
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
102
PART III
Item 10.
Directors, Executive Officers and Corporate Governance
103
Item 11.
Executive Compensation
103
Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
103
Item 13.
Certain Relationships and Related Transactions, and Director Independence
103
Item 14.
Principal Accountant Fees and Services
103
PART IV
Item 15.
Exhibits and Financial Statement Schedules
104
Item 16.
Form 10-K Summary
SIGNATURES
2
GLOSSARY OF SELECTED TERMS
Unless otherwise noted or indicated by context, the following terms used in this Annual Report on Form 10-K
have the following meanings:
“AB 32” refers to the greenhouse gas emission control regulations in the state of California to comply
with Assembly Bill 32.
“ANS” refers to Alaskan North Slope crude oil reflective of West Coast economics, characterized by an
American Petroleum Institute (“API”) gravity between 28° and 35°.
“ASCI” refers to the Argus Sour Crude Index, a pricing index used to approximate market prices for
sour, heavy crude oil.
“Bakken” refers to both a crude oil production region generally covering North Dakota, Montana and
Western Canada, and the crude oil that is produced in that region.
“barrel” refers to a common unit of measure in the oil industry, which equates to 42 gallons.
“blendstocks” refers to various compounds that are combined with gasoline or diesel from the crude oil
refining process to make finished gasoline and diesel; these may include natural gasoline, FCC unit
gasoline, ethanol, reformate or butane, among others.
“bpd” is an abbreviation for barrels per day.
“CAM Pipeline” or “CAM Connection Pipeline” refers to the Clovelly-Alliance-Meraux pipeline in
Louisiana.
“CARB” refers to the California Air Resources Board; gasoline and diesel fuel sold in the state of
California are regulated by CARB and require stricter quality and emissions reduction performance than
required by other states.
“catalyst” refers to a substance that alters, accelerates, or instigates chemical changes, but is not
produced as a product of the refining process.
“coke” refers to a coal-like substance that is produced from heavier crude oil fractions during the
refining process.
“complexity” refers to the number, type and capacity of processing units at a refinery, measured by the
Nelson Complexity Index, which is often used as a measure of a refinery’s ability to process lower
quality crude in an economic manner.
“crack spread” refers to a simplified calculation that measures the difference between the price for light
products and crude oil. For example, we reference (a) the 2-1-1 crack spread, which is a general industry
standard utilized by our Delaware City, Paulsboro and Chalmette refineries that approximates the per
barrel refining margin resulting from processing two barrels of crude oil to produce one barrel of gasoline
and one barrel of heating oil or ULSD, (b) the 4-3-1 crack spread, which is a benchmark utilized by our
Toledo and Torrance refineries that approximates the per barrel refining margin resulting from
processing four barrels of crude oil to produce three barrels of gasoline and one-half barrel of jet fuel and
one-half barrel of ULSD and (c) the 3-2-1 crack spread, which is a benchmark utilized by our Martinez
refinery that approximates the per barrel refining margin resulting from processing three barrels of crude
oil to produce two barrels of gasoline and three-quarters of a barrel jet fuel and one-quarter of a barrel
ULSD.
3
“Dated Brent” refers to Brent blend oil, a light, sweet North Sea crude oil, characterized by an API
gravity of 38° and a sulfur content of approximately 0.4 weight percent that is used as a benchmark for
other crude oils.
“distillates” refers primarily to diesel, heating oil, kerosene and jet fuel.
“downstream” refers to the downstream sector of the energy industry generally describing oil refineries,
marketing and distribution companies that refine crude oil and sell and distribute refined products. The
opposite of the downstream sector is the upstream sector, which refers to exploration and production
companies that search for and/or produce crude oil and natural gas underground or through drilling or
exploratory wells.
“Eni” refers to Eni Sustainable Mobility US Inc., a subsidiary of Eni SpA.
“EPA” refers to the United States Environmental Protection Agency.
“ESG” refers to environmental, social, and governance matters.
“ethanol” refers to a clear, colorless, flammable oxygenated liquid. Ethanol is typically produced
chemically from ethylene, or biologically from fermentation of various sugars from carbohydrates found
in agricultural crops. It is used in the United States as a gasoline octane enhancer and oxygenate.
“ExxonMobil” refers to Exxon Mobil Corporation.
“FCC” refers to fluid catalytic cracking.
“feedstocks” refers to crude oil and partially refined products that are processed and blended into refined
products.
“GAAP” refers to U.S. generally accepted accounting principles developed by the Financial Accounting
Standards Board for nongovernmental entities.
“GHG” refers to greenhouse gas.
“Group I base oils or lubricants” refers to conventionally refined products characterized by sulfur
content less than 0.03% with a viscosity index between 80 and 120. Typically, these products are used in
a variety of automotive and industrial applications.
“heavy crude oil” refers to a relatively inexpensive crude oil with a low API gravity characterized by
high relative density and viscosity. Heavy crude oils require greater levels of processing to produce high
value products such as gasoline and diesel.
“IPO” refers to the initial public offering of PBF Energy Class A common stock which closed on
December 18, 2012.
“IRA” refers to the Inflation Reduction Act; a U.S. federal law enacted on August 16, 2022 that resulted
in significant law changes related to tax, climate change, energy, and health care. The tax provision
includes, but is not limited to, a corporate alternative minimum tax of 15%, excise tax of 1% on certain
corporate stock buy-backs, energy-related tax credits and incentives, and additional Internal Revenue
Service (“IRS”) funding.
“J. Aron” refers to J. Aron & Company, a subsidiary of The Goldman Sachs Group, Inc.
“KV” refers to Kilovolts.
“LCM” refers to a GAAP requirement for inventory to be valued at the lower of cost or market.
4
“light crude oil” refers to a relatively expensive crude oil with a high API gravity characterized by low
relative density and viscosity. Light crude oils require lower levels of processing to produce high value
products such as gasoline and diesel.
“light products” refers to the group of refined products with lower boiling temperatures, including
gasoline and distillates.
“LLS” refers to Light Louisiana Sweet benchmark for crude oil reflective of Gulf coast economics for
light sweet domestic and foreign crudes. It is characterized by an API gravity of between 35° and 40° and
a sulfur content of approximately .35 weight percent.
“LPG” refers to liquefied petroleum gas.
“Maya” refers to Maya crude oil, a heavy, sour crude oil characterized by an API gravity of
approximately 22° and a sulfur content of approximately 3.3 weight percent that is used as a benchmark
for other heavy crude oils.
“MMBTU” refers to million British thermal units.
“MOEM Pipeline” refers to a pipeline that originates at a terminal in Empire, Louisiana approximately
30 miles north of the mouth of the Mississippi River. The MOEM Pipeline is 14 inches in diameter, 54
miles long and transports crude from South Louisiana to the Chalmette refinery and transports Heavy
Louisiana Sweet and South Louisiana Intermediate crude.
“MW” refers to Megawatt.
“Nelson Complexity Index” refers to the complexity of an oil refinery as measured by the Nelson
Complexity Index, which is calculated on an annual basis by the Oil and Gas Journal. The Nelson
Complexity Index assigns a complexity factor to each major piece of refinery equipment based on its
complexity and cost in comparison to crude distillation, which is assigned a complexity factor of 1.0. The
complexity of each piece of refinery equipment is then calculated by multiplying its complexity factor by
its throughput ratio as a percentage of crude distillation capacity. Adding up the complexity values
assigned to each piece of equipment, including crude distillation, determines a refinery’s complexity on
the Nelson Complexity Index. A refinery with a complexity of 10.0 on the Nelson Complexity Index is
considered ten times more complex than crude distillation for the same amount of throughput.
“NYH” refers to the New York Harbor market value of petroleum products.
“OSHA” refers to the Occupational Safety and Health Administration of the U.S. Department of Labor.
“PADD” refers to Petroleum Administration for Defense Districts.
“refined products” refers to petroleum products, such as gasoline, diesel and jet fuel, that are produced
by a refinery.
“RFS” refers to the renewable fuel standard issued pursuant to the Energy Independence and Security
Act of 2007 implementing mandates to blend renewable fuels into petroleum fuels produced and sold in
the United States.
“RINs” refers to renewable fuel credits required for compliance with the RFS.
“SBR” refers, collectively, to St. Bernard Renewables LLC and its subsidiaries, a jointly held investment
of the Company and Eni.
“Saudi Aramco” refers to Saudi Arabian Oil Company.
5
“SEC” refers to the United States Securities and Exchange Commission.
“sour crude oil” refers to a crude oil that is relatively high in sulfur content, requiring additional
processing to remove the sulfur. Sour crude oil is typically less expensive than sweet crude oil.
“Sunoco” refers to Sunoco, LLC.
“sweet crude oil” refers to a crude oil that is relatively low in sulfur content, requiring less processing to
remove the sulfur than sour crude oil. Sweet crude oil is typically more expensive than sour crude oil.
“Syncrude” refers to a blend of Canadian synthetic oil, a light, sweet crude oil, typically characterized
by API gravity between 30° and 32° and a sulfur content of approximately 0.1-0.2 weight percent.
“throughput” refers to the volume processed through a unit or refinery.
“turnaround” refers to a periodically required shutdown and comprehensive maintenance event to
refurbish and maintain a refinery unit or units that involves the cleaning, repair, and inspection of such
units and occurs generally on a periodic cycle.
“ULSD” refers to ultra-low-sulfur diesel.
“WCS” refers to Western Canadian Select, a heavy, sour crude oil blend typically characterized by API
gravity between 20° and 22° and a sulfur content of approximately 3.5 weight percent that is used as a
benchmark for heavy Western Canadian crude oil.
“WTI” refers to West Texas Intermediate crude oil, a light, sweet crude oil, typically characterized by
API gravity between 38° and 40° and a sulfur content of approximately 0.3 weight percent that is used as
a benchmark for other crude oils.
“WTS” refers to West Texas Sour crude oil, a sour crude oil characterized by API gravity between 30°
and 33° and a sulfur content of approximately 1.28 weight percent that is used as a benchmark for other
sour crude oils.
“yield” refers to the percentage of refined products that is produced from crude oil and other feedstocks.
6
Explanatory Note
This Annual Report on Form 10-K is filed by PBF Energy Inc. (“PBF Energy”) which is a holding
company whose primary asset is an equity interest in PBF Energy Company LLC (“PBF LLC”). PBF Energy is
the sole managing member of, and owner of an equity interest representing approximately 99.3% of the
outstanding economic interests in PBF LLC as of December 31, 2024. PBF Energy operates and controls all of
the business and affairs and consolidates the financial results of PBF LLC and its subsidiaries. PBF LLC is a
holding company for the companies that directly and indirectly own and operate our business.
PART I
Unless the context indicates otherwise, the terms “Company”, “we,” “us,” and “our” refer to PBF Energy
and its consolidated subsidiaries, including PBF LLC, PBF Holding Company LLC (“PBF Holding”), PBF
Investments LLC, Toledo Refining Company LLC, Paulsboro Refining Company LLC (“PRC”), Delaware City
Refining Company LLC (“DCR”), Chalmette Refining, L.L.C. (“Chalmette Refining”), PBF Energy Western
Region LLC (“PBF Western Region”), Torrance Refining Company LLC (“Torrance Refining”), Torrance
Logistics Company LLC, Martinez Refining Company LLC (“MRC”), PBF Logistics GP LLC (“PBFX GP”)
and PBF Logistics LP (“PBFX”) and its subsidiaries.
In this Annual Report on Form 10-K, we make certain forward-looking statements, including statements
regarding our plans, strategies, objectives, expectations, intentions, and resources, under the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995 to the extent such statements relate to the
operations of an entity that is not a limited liability company or a partnership. You should read our forward-
looking statements together with our disclosures under the heading: “Cautionary Statement for the Purpose of
Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.” When considering forward-
looking statements, you should keep in mind the risk factors and other cautionary statements set forth in this
Annual Report on Form 10-K under “Risk Factors” in Item 1A.
7
ITEM 1. BUSINESS
Overview and Corporate Structure
We are one of the largest independent petroleum refiners and suppliers of unbranded transportation fuels,
heating oil, petrochemical feedstocks, lubricants and other petroleum products in the United States. We sell our
products throughout the Northeast, Midwest, Gulf Coast and West Coast of the United States, as well as in other
regions of the United States, Canada and Mexico and are able to ship products to other international
destinations. We own and operate six domestic oil refineries and related assets and own a 50% interest in a
biorefinery co-located with the Chalmette refinery in Louisiana (the “Renewable Diesel Facility”) through our
SBR equity method investment. Our refineries have a combined processing capacity, known as throughput, of
approximately 1,000,000 bpd, and a weighted-average Nelson Complexity Index of 12.8 based on current
operating conditions. The complexity and throughput capacity of our refineries are subject to change dependent
upon configuration changes we make to respond to market conditions, as well as a result of investments made to
improve our facilities and maintain compliance with environmental and governmental regulations. We operate
in two reportable business segments: Refining and Logistics. Our six oil refineries are all engaged in the
refining of crude oil and other feedstocks into petroleum products, and represent the Refining segment. PBFX
operates certain logistical assets such as crude oil and refined products terminals, pipelines, and storage
facilities, which represent the Logistics segment.
PBF Energy is a holding company whose primary asset is a controlling equity interest in PBF LLC. We
are the sole managing member of PBF LLC and operate and control all of the business and affairs of PBF LLC.
We consolidate the financial results of PBF LLC and its subsidiaries and record a noncontrolling interest in our
consolidated financial statements representing the economic interests of the members of PBF LLC other than
PBF Energy (as defined below). PBF LLC is a holding company for the companies that directly or indirectly
own and operate our business. PBF Holding is a wholly-owned subsidiary of PBF LLC and is the parent
company for our refining operations. PBFX is an indirect wholly-owned subsidiary of PBF LLC that owns and
operates logistics assets that support our refining operations.
As of December 31, 2024, PBF Energy held 115,333,223 PBF LLC Series C Units and our current and
former executive officers and directors and certain employees and others held 862,780 PBF LLC Series A Units
(we refer to all of the holders of the PBF LLC Series A Units as “the members of PBF LLC other than PBF
Energy”). As a result, the holders of PBF Energy’s issued and outstanding shares of its Class A common stock
have approximately 99.3% of the voting power in PBF Energy, and the members of PBF LLC through their
holdings of Class B common stock have approximately 0.7% of the voting power in PBF Energy.
8
The following map details the locations of our refineries (each as defined below):
9
Refining
Our six refineries are located in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio,
Chalmette, Louisiana, Torrance, California and Martinez, California. Each refinery is briefly described in the
table below:
Refinery
Region
Nelson
Complexity
Index (1)
Throughput
Capacity (in bpd) (1)
PADD
Crude Processed (2)
Source (2)
Delaware City
East Coast
13.6
180,000
1
light sweet through
heavy sour
water, rail
Paulsboro
East Coast
9.1 (3)
155,000 (3)
1
light sweet through
heavy sour
water
Toledo
Mid-Continent
11.0
180,000
2
light sweet
pipeline, truck,
rail
Chalmette
Gulf Coast
13.0
185,000
3
light sweet through
heavy sour
water, pipeline
Torrance
West Coast
13.8
166,000
5
medium and heavy
pipeline,
water, truck
Martinez
West Coast
16.1
157,000
5
medium and heavy
pipeline and
water
________
(1) Reflects operating conditions at each refinery as of the date of this filing. Changes in complexity and
throughput capacity reflect the result of current market conditions, in addition to investments made to improve
our facilities and maintain compliance with environmental and governmental regulations. Configurations at
each of our refineries are evaluated periodically and updated accordingly.
(2) Reflects the typical crude and feedstocks and related sources utilized under normal operating conditions and
prevailing market environments.
(3) Under normal operating conditions and prevailing market environments, our Nelson Complexity Index and
throughput capacity for the Paulsboro refinery would be 13.1 and 180,000, respectively. As a result of the
reconfiguration of our East Coast refineries in 2020, and subsequent restart of several idled processing units at
the Paulsboro refinery in 2022, our Nelson Complexity Index and throughput capacity were adjusted.
Logistics
PBFX, an indirect wholly-owned subsidiary of PBF Energy and PBF LLC, owns or leases, operates,
develops and acquires crude oil and refined products terminals, pipelines, storage facilities and similar logistics
assets. PBFX engages in the receiving, handling, storage and transferring of crude oil, refined products, natural
gas and intermediates from sources located throughout the United States and Canada for PBF Energy in support
of its refineries, as well as for third-party customers. The majority of PBFX’s revenues are derived from long-
term, fee-based commercial agreements with PBF Holding, which include minimum volume commitments, for
receiving, handling, storing and transferring crude oil, refined products and natural gas. PBF Energy also has
agreements with PBFX that establish fees for certain general and administrative services and operational and
maintenance services provided by PBF Holding to PBFX. These transactions, other than those with third
parties, are eliminated by us in consolidation.
See “Item 1A. Risk Factors” and “Item 13. Certain Relationships and Related Transactions, and Director
Independence.”
10
Recent Developments
On February 1, 2025, a fire occurred at our Martinez refinery during preliminary turnaround activities,
which resulted in the temporary shutdown of refinery operations. The cause of the fire is currently under
investigation. We are assessing the extent of the property damage arising from the fire and potential recoveries
from insurance coverage are also being evaluated. At this time, as the cost of repairs, the length of the shutdown
and other potential liabilities, including regulatory penalties, arising from the incident are unknown, the
operational and/or financial impact cannot be reasonably estimated.
Available Information
Our website address is www.pbfenergy.com. Information contained on our website is not part of this
Annual Report on Form 10-K. Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K, and any other materials filed with (or furnished to) the SEC by us are available on our
website (under “Investors”) free of charge, soon after we file or furnish such material. In this same location, we
also post our corporate governance guidelines, code of business conduct and ethics, and the charters of the
committees of our Board of Directors. These documents are available free of charge in print to any stockholder
that makes a written request to the Secretary, PBF Energy Inc., One Sylvan Way, Second Floor, Parsippany,
New Jersey 07054.
11
The diagram below depicts our organizational structure as of December 31, 2024:
12
Operating Segments
We operate in two reportable business segments: Refining and Logistics. Our six oil refineries,
including certain related logistics assets that are not owned by PBFX, are engaged in the refining of crude oil
and other feedstocks into petroleum products, and represent the Refining segment. PBFX operates certain
logistics assets such as crude oil and refined products terminals, pipelines and storage facilities. Certain of
PBFX’s assets were previously operated and owned by various subsidiaries of PBF Holding and were acquired
by PBFX in a series of transactions since its inception. PBFX is reported in the Logistics segment. A substantial
majority of PBFX’s revenues are derived from long-term, fee-based commercial agreements with PBF Holding
and its subsidiaries and these intersegment related revenues are eliminated in consolidation. See “Note 19 -
Segment Information” of our Notes to Consolidated Financial Statements, for detailed information on our
operating results by business segment.
Refining Segment
We own and operate six refineries (two of which are operated as a single unit) that provide us with
geographic and market diversity. We produce a variety of products at each of our refineries, including gasoline,
ULSD, heating oil, jet fuel, lubricants, petrochemicals and asphalt. We sell our products throughout the
Northeast, Midwest, Gulf Coast and West Coast of the United States, as well as in other regions of the United
States, Canada and Mexico, and are able to ship products to other international destinations.
Our refinery assets as of December 31, 2024 are described below.
East Coast Refining System (Delaware City refinery and Paulsboro refinery)
Overview. The Delaware City refinery is located on an approximately 5,000-acre site, with access to
waterborne cargoes and an extensive distribution network of pipelines, barges and tankers, truck and rail. The
Delaware City refinery is a fully integrated operation that receives crude via rail at our crude unloading
facilities, or via ship or barge at the docks owned by the Delaware City refinery located on the Delaware River.
The crude and other feedstocks are stored in an extensive tank farm prior to processing. In addition, there is a
15-lane, 76,000 bpd capacity truck loading rack located adjacent to the refinery and a 23-mile interstate pipeline
that are used to distribute clean products. The Paulsboro refinery is located on approximately 950-acres on the
Delaware River in Paulsboro, New Jersey, near Philadelphia and approximately 30 miles away from Delaware
City. Paulsboro receives crude and feedstocks via its marine terminal on the Delaware River.
As a result of its configuration and process units, Delaware City has the capability of processing a slate
of heavy crudes with a high concentration of high sulfur crudes, as well as other high sulfur feedstock when
economically viable, and is one of the largest and most complex refineries on the East Coast. The Delaware City
refinery is one of two heavy crude processing refineries, the other being our Paulsboro refinery, on the East
Coast of the United States. The Delaware City coking capacity is equal to approximately 25% of crude capacity.
The Delaware City refinery primarily processes a variety of medium to heavy, sour crude oils, but can
run light, sweet crude oils as well. The refinery has large conversion capacity with its 82,000 bpd FCC unit,
54,500 bpd fluid coking unit and 24,000 bpd hydrocracking unit.
13
The following table approximates the East Coast Refining System’s current major process unit capacities.
Unit capacities are shown in barrels per stream day.
Delaware City Refinery Units
Nameplate
Capacity
Crude Distillation Unit
180,000
Vacuum Distillation Unit
105,000
Fluid Catalytic Cracking Unit
82,000
Hydrotreating Units
180,000
Hydrocracking Unit
24,000
Catalytic Reforming Unit
43,000
Benzene / Toluene Extraction Unit
15,000
Butane Isomerization Unit
6,000
Alkylation Unit
12,500
Polymerization Unit
16,000
Fluid Coking Unit
54,500
Paulsboro Refinery Units
Nameplate
Capacity
Crude Distillation Units
155,000
Vacuum Distillation Units
86,000
Fluid Catalytic Cracking Unit
Idled
Hydrotreating Units
102,000
Catalytic Reforming Unit
29,000
Alkylation Unit
Idled
Lube Oil Processing Unit
12,000
Delayed Coking Unit
Idled
Propane Deasphalting Unit
11,000
Feedstocks and Supply Arrangements. We source our crude oil and feedstock needs for the East Coast
Refining System through waterborne deliveries, primarily through short-term and spot market agreements. We
also have a crude supply contract with Saudi Aramco, the term of which is currently year to year, for up to
approximately 100,000 bpd that are processed at the Paulsboro refinery.
Refined Product Yield and Distribution. The Delaware City refinery predominantly produces gasoline, jet
fuel, ULSD and ultra-low sulfur heating oil as well as certain other products. Products produced at the Delaware
City refinery are transferred to customers through pipelines, barges or at its truck rack. We market and sell all of
our refined products to a variety of customers on the spot market or through term agreements. The Paulsboro
refinery predominantly manufactures Group I base oils or lubricants and asphalt, jet fuel, and ULSD. Products
produced at the Paulsboro refinery are transferred to customers primarily through pipelines, barges, or at its
truck rack. We market and sell all of our refined products independently to a variety of customers on the spot
market or through term agreements.
14
Tankage Capacity. The Delaware City refinery has total storage capacity of approximately 10.0 million
barrels. Of the total, approximately 3.6 million barrels of storage capacity are dedicated to crude oil and other
feedstock storage with the remaining 6.4 million barrels allocated to finished products, intermediates and other
products. The Paulsboro refinery has total storage capacity of approximately 7.5 million barrels. Of the total,
approximately 2.1 million barrels are dedicated to crude oil storage with the remaining 5.4 million barrels
allocated to finished products, intermediates and other products.
Energy and Other Utilities. Under normal operating conditions, the Delaware City refinery consumes
approximately 75,000 MMBTU per day of natural gas supplied via pipeline from third parties. The Delaware
City refinery has a 280 MW power plant located on site that consists of two natural gas-fueled turbines with
combined capacity of approximately 140 MW and four turbo generators with combined nameplate capacity of
approximately 140 MW. Collectively, this power plant produces electricity in excess of Delaware City’s
refinery load of approximately 90 MW. Excess electricity is sold into the Pennsylvania-New Jersey-Maryland,
or PJM, grid. Steam is primarily produced by a combination of three dedicated boilers, two heat recovery steam
generators on the gas turbines, and is supplemented by secondary boilers at the FCC and Coker. Hydrogen is
currently provided via the refinery’s steam methane reformers and continuous catalytic reformer.
Under normal operating conditions, the Paulsboro refinery currently consumes approximately 40,000
MMBTU per day of natural gas supplied via pipeline from third parties. The Paulsboro refinery is mostly self-
sufficient for electrical power through a mix of gas and steam turbine generators. The Paulsboro refinery
generation supplies all of the 20MW total refinery load. There are circumstances where available generation is
greater than the total refinery load, and the Paulsboro refinery can export up to about 40MW of power to the
utility grid if warranted. If necessary, supplemental electrical power is available on a guaranteed basis from the
local utility. The Paulsboro refinery is connected to the grid via three separate 69KV aerial feeders and has the
ability to run entirely on imported power. Steam is produced in three boilers and a heat recovery steam
generator fed by the exhaust from the gas turbine. In addition, there are a number of waste heat boilers and
furnace stack economizers throughout the refinery that supplement the steam generation capacity. The
Paulsboro refinery’s hydrogen needs are met by the steam methane reformer and the catalytic reformer.
Toledo Refinery
Overview. The Toledo refinery primarily processes a slate of light, sweet crudes from Canada, the Mid-
Continent, the Bakken region and the U.S. Gulf Coast. The Toledo refinery is located on a 282-acre site near
Toledo, Ohio, approximately 60 miles from Detroit. Crude is delivered to the Toledo refinery through three
primary pipelines: (1) Enbridge from the north, (2) Patoka from the west and (3) Mid-Valley from the south.
Crude is also delivered to a nearby terminal by rail and from local sources by truck to a truck unloading facility
within the refinery.
The following table approximates the Toledo refinery’s current major process unit capacities. Unit
capacities are shown in barrels per stream day.
Toledo Refinery Units
Nameplate
Capacity
Crude Distillation Unit
180,000
Fluid Catalytic Cracking Unit
82,000
Hydrotreating Units
95,000
Hydrocracking Unit
52,000
Catalytic Reforming Units
52,000
Alkylation Unit
11,000
Polymerization Unit
7,000
UDEX Unit
16,300
15
Feedstocks and Supply Arrangements. We source our crude oil and feedstock needs for the Toledo
refinery through connections to the Marysville Pipeline and Maumee Pipeline, and via truck rack, primarily
through short-term and spot market agreements.
Refined Product Yield and Distribution. The Toledo refinery produces finished products, including
gasoline, jet and ULSD, in addition to a variety of high-value petrochemicals including benzene, toluene,
xylene, nonene and tetramer. The Toledo refinery is connected, via pipelines, to an extensive distribution
network throughout Ohio, Illinois, Indiana, Kentucky, Michigan, Pennsylvania and West Virginia. The finished
products are transported on pipelines owned by Sunoco Logistics Partners L.P. and Buckeye Partners L.P. In
addition, we have proprietary connections to a variety of smaller pipelines and spurs that help us optimize our
clean products distribution. A significant portion of the Toledo refinery’s gasoline and ULSD are distributed
through various terminals in this network.
We have an agreement with Sunoco whereby Sunoco purchases gasoline and distillate products
representing approximately one-third of the Toledo refinery’s gasoline and distillates production. The
agreement expires in June 2025, subject to certain early termination rights. We sell the bulk of the
petrochemicals produced at the Toledo refinery through short-term contracts or on the spot market and the
majority of the petrochemical distribution is done via rail.
Tankage Capacity. The Toledo refinery has total storage capacity of approximately 4.5 million barrels.
The Toledo refinery receives its crude through pipeline connections and a truck rack. Of the total,
approximately 1.3 million barrels are dedicated to crude oil storage with the remaining 3.2 million barrels
allocated to intermediates and products.
Energy and Other Utilities. Under normal operating conditions, the Toledo refinery consumes
approximately 25,000 MMBTU per day of natural gas supplied via pipeline from third parties. The Toledo
refinery purchases its electricity from the PJM grid and has a long-term contract to purchase hydrogen and
steam from a local third-party supplier. In addition to the third-party steam supplier, the Toledo refinery
consumes a portion of the steam that is generated by its various process units.
Chalmette Refinery
Overview. The Chalmette refinery is located on a 400-acre site near New Orleans, Louisiana. It is a dual-
train coking refinery and is capable of processing both light and heavy crude oil through its 185,000 bpd crude
units and downstream units. Chalmette Refining owns 100% of the MOEM Pipeline, providing access to the
Empire Terminal, as well as the CAM Connection Pipeline, providing access to the Louisiana Offshore Oil Port
facility through a third-party pipeline. Chalmette Refining also owns 80% of each of the Collins Pipeline
Company and T&M Terminal Company, both located in Collins, Mississippi, which provide a clean products
outlet for the refinery to the Plantation and Colonial Pipelines. In addition, there is also a marine terminal
capable of importing waterborne feedstocks and loading or unloading finished products. There is also a clean
products truck rack that provides access to local markets and crude storage. The Renewable Diesel Facility is
also located at our Chalmette refinery. The facility incorporates a repurposed hydrocracker, along with a newly-
constructed pre-treatment unit to establish a capacity to produce 20,000 bpd renewable diesel.
16
The following table approximates the Chalmette refinery’s current major process unit capacities. Unit
capacities are shown in barrels per stream day.
Chalmette Refinery Units
Nameplate
Capacity
Crude Distillation Units
185,000
Vacuum Distillation Unit
114,000
Fluid Catalytic Cracking Unit
75,000
Hydrotreating Units
189,000
Delayed Coking Unit
42,000
Catalytic Reforming Unit
42,000
Alkylation Unit
17,000
Aromatics Extraction Unit
17,000
Feedstocks and Supply Arrangements. We source our crude oil and feedstock needs for the Chalmette
refinery through connections to the CAM Pipeline and MOEM Pipeline, and via waterborne deliveries,
primarily through short-term and spot market agreements.
Refined Product Yield and Distribution. The Chalmette refinery predominantly produces gasoline and
diesel fuels and also manufactures high-value petrochemicals including benzene and xylene. Products produced
at the Chalmette refinery are transferred to customers through pipelines, the marine terminal and truck rack. The
majority of our clean products are delivered to customers via pipelines. Our ownership of the Collins pipeline
and T&M terminal provides the Chalmette refinery with strategic access to Southeast and East Coast markets
through third-party logistics.
Tankage Capacity. The Chalmette refinery has a total tankage capacity of approximately 8.1 million
barrels. Of this total, approximately 2.6 million barrels are allocated to crude oil storage with the remaining 5.5
million barrels allocated to intermediates and products.
Energy and Other Utilities. Under normal operating conditions, the Chalmette refinery consumes
approximately 25,000 MMBTU per day of natural gas supplied via pipeline from third parties. The Chalmette
refinery purchases its electricity from a local utility and has a long-term contract to purchase hydrogen from a
third-party supplier.
Torrance Refinery
Overview. The Torrance refinery is located on 750-acres in Torrance, California. It is a high-conversion
crude, delayed-coking refinery capable of processing both heavy and medium crude oils through its crude unit
and downstream units. In addition to refining assets, the Torrance refinery acquisition included a number of
high-quality logistics assets including a sophisticated network of crude and products pipelines, product
distribution terminals and refinery crude and product storage facilities. The most significant logistics asset is a
crude gathering and transportation system which delivers San Joaquin Valley crude oils directly from the field
to the refinery. Additionally, there are several pipelines serving the refinery that provide access to sources of
waterborne crude oils including the Ports of Long Beach and Los Angeles, as well as clean product outlets with
a direct pipeline that supplies jet fuel to the Los Angeles airport that are held by affiliates of the refinery.
17
The following table approximates the Torrance refinery’s current major process unit capacities. Unit
capacities are shown in barrels per stream day.
Torrance Refinery Units
Nameplate
Capacity
Crude Distillation Unit
166,000
Vacuum Distillation Unit
102,000
Fluid Catalytic Cracking Unit
90,000
Hydrotreating Units
155,500
Hydrocracking Unit
25,000
Alkylation Unit
25,500
Delayed Coking Unit
58,000
Feedstocks and Supply Arrangements. We source our crude oil and feedstock needs for the Torrance
refinery mainly through connections to our own pipeline, and via waterborne deliveries and truck racks,
primarily through short-term and spot market agreements.
Refined Product Yield and Distribution. The Torrance refinery predominantly produces gasoline, jet fuel
and diesel fuels. Products produced at the Torrance refinery are transferred to customers through pipelines, the
marine terminal and truck rack. The majority of clean products are delivered to customers via pipelines. We
currently market and sell all of our refined products independently to a variety of customers either on the spot
market or through term agreements.
Tankage Capacity. The Torrance refinery has a total tankage capacity of approximately 8.6 million
barrels. Of this total, approximately 2.1 million barrels are allocated to crude oil storage with the remaining 6.5
million barrels allocated to intermediates and products.
Energy and Other Utilities. Under normal operating conditions, the Torrance refinery consumes
approximately 47,000 MMBTU per day of natural gas supplied via pipeline from third parties. The Torrance
refinery generates some power internally using a combination of steam and gas turbines and purchases any
additional needed power from the local utility. The Torrance refinery has a long-term contract to purchase
hydrogen from a third-party supplier.
Martinez Refinery
Overview. The Martinez refinery is located on an 860-acre site in the City of Martinez, 30 miles northeast
of San Francisco, California. The refinery is a high-conversion, dual-coking facility and one of the most
complex refineries in the United States. The facility is strategically positioned in Northern California and
provides for operating and commercial synergies with the Torrance refinery located in Southern California. In
addition to refining assets, the Martinez refinery includes a number of high-quality onsite logistics assets
including a deep-water marine facility, product distribution terminals and refinery crude and product storage
facilities with approximately 8.8 million barrels of shell capacity.
18
The following table approximates the Martinez refinery’s current major process unit capacities. Unit
capacities are shown in barrels per stream day.
Martinez Refinery Units
Nameplate
Capacity
Crude Distillation Unit
157,000
Vacuum Distillation Unit
102,000
Fluid Catalytic Cracking Unit
72,000
Hydrotreating Units
268,000
Hydrocracking Unit
42,900
Alkylation Unit
12,500
Delayed Coking Unit
25,500
Flexi Coking Unit
22,500
Isomerization Unit
15,000
Feedstocks and Supply Arrangements. We source our crude oil and feedstock needs for the Martinez
refinery through connections to the Crimson San Pablo Bay Pipeline, and via waterborne deliveries, primarily
through short-term and spot market agreements. We also have crude supply agreements with Shell Trading (US)
Company (primarily serving the Martinez refinery) for up to 65,000 bpd, through 2026.
Refined Product Yield and Distribution. We entered into certain offtake agreements for our West Coast
system with Shell Oil Products for clean products with varying terms up to 15 years. We currently market and
sell all of our refined products independently to a variety of customers either on the spot market or through term
agreements.
Tankage Capacity. Martinez has a total tankage capacity of approximately 8.8 million barrels. Of this
total, approximately 2.5 million barrels are allocated to crude oil storage with the remaining 6.3 million barrels
allocated to intermediates and products.
Energy and Other Utilities. Under normal operating conditions, the Martinez refinery consumes
approximately 80,000 MMBTU per day of natural gas (including natural gas consumed in hydrogen production)
supplied via pipeline from third parties. The Martinez refinery generates some power internally using a
combination of steam and gas turbines and purchases any additional needed power from the local utility. The
Martinez refinery has a long-term contract to purchase hydrogen from a third-party supplier.
Logistics Segment
PBFX, an indirect wholly-owned subsidiary of PBF Energy and PBF LLC, that owns or leases,
operates, develops and acquires crude oil and refined products terminals, pipelines, storage facilities and similar
logistics assets. PBFX’s operations represent the Logistics segment. PBFX engages in the receiving, handling,
storage and transferring of crude oil, refined products, natural gas and intermediates from sources located
throughout the United States and Canada for PBF Energy in support of its refineries, as well as for third-party
customers. PBFX’s revenue from third-party transactions constituted approximately 9.7% of its revenues in
2024. All other revenues were generated from commercial agreements with PBF Holding. We also have
agreements with PBFX that establish fees for certain general and administrative services and operational and
maintenance services provided by PBF Holding to PBFX. These transactions, other than those with third
parties, are eliminated by us in consolidation.
19
Principal Products
Our refineries make various grades of gasoline, distillates (including diesel fuel, jet fuel and ULSD) and
other products from crude oil, other feedstocks, and blending components. We sell these products through our
commercial accounts and sales with major oil companies. For the years ended December 31, 2024, 2023 and
2022, gasoline and distillates accounted for 86.5%, 88.7% and 88.5% of our revenues, respectively.
Customers
We sell a variety of refined products to a diverse customer base. The majority of our refined products are
primarily sold through short-term contracts or on the spot market. In addition, we have product offtake
arrangements for a portion of our clean products. For the years ended December 31, 2024 and December 31,
2023 only one customer, Shell plc (“Shell”), accounted for 10% or more of our revenues (approximately 13%
and 14%, respectively). As of December 31, 2024 and December 31, 2023, only one customer, Shell, accounted
for 10% or more of our total trade accounts receivable (approximately 18% and 19%, respectively).
Seasonality
Traditionally, demand for gasoline and diesel is generally higher during the summer months than during
the winter months due to seasonal increases in highway traffic and construction work. Decreased demand
during the winter months can lower gasoline and diesel prices.
Competition
The refining business is very competitive. We compete directly with various other refining companies on
the East, Gulf and West Coasts and in the Mid-Continent, with integrated oil companies, with foreign refiners
that import products into the United States and with producers and marketers in other industries supplying
alternative forms of energy and fuels to satisfy the requirements of industrial, commercial and individual
consumers. Some of our competitors have expanded the capacity of their refineries and internationally new
refineries are coming on line which could also affect our competitive position.
Profitability in the refining industry depends largely on refined product margins, which can fluctuate
significantly, as well as crude oil prices and differentials between the prices of different grades of crude oil,
operating efficiency and reliability, product mix and costs of product distribution and transportation. Certain of
our competitors that have larger and more complex refineries may be able to realize lower per-barrel costs or
higher margins per barrel of throughput. Several of our principal competitors are integrated national or
international oil companies that are larger and have substantially greater resources. Because of their integrated
operations and larger capitalization, these companies may be more flexible in responding to volatile industry or
market conditions, such as shortages of feedstocks or intense price fluctuations. Refining margins are frequently
impacted by sharp changes in crude oil costs, which may not be immediately reflected in product prices.
The refining industry is also highly competitive with respect to feedstock supply. Unlike certain of our
competitors that have access to proprietary controlled sources of crude oil production available for use at their
own refineries, we obtain all of our crude oil and substantially all other feedstocks from unaffiliated sources.
The availability and cost of crude oil and feedstock are affected by global supply and demand. We have no
crude oil reserves and are not engaged in the exploration or production of crude oil. We believe, however, that
we will be able to obtain adequate crude oil and other feedstocks at generally competitive prices for the
foreseeable future.
Pursuant to its RFS, EPA has implemented mandates to blend renewable fuels into the petroleum fuels
produced and sold in the United States. Because we do not directly produce renewable fuels, increasing the
volume of renewable fuels that must be blended into our products could displace an increasing volume of our
refineries’ product pool, potentially resulting in lower earnings and profitability. In addition, in order to meet
certain of these and future EPA requirements, we may be required to continue to purchase RINs, which
historically had, and we expect to have, fluctuating costs based on market conditions.
20
Corporate Offices
We currently lease approximately 74,400 square feet for our principal corporate offices in Parsippany,
New Jersey. The lease for our principal corporate offices expires in 2026. Functions performed in the
Parsippany office include overall corporate management, refinery and health, safety and environmental
management, planning and strategy, corporate finance, commercial operations, logistics, contract
administration, marketing, investor relations, governmental affairs, accounting, tax, treasury, information
technology, legal and human resources support functions.
We lease approximately 8,800 square feet for our regional corporate office in Long Beach, California.
The lease for our Long Beach office expires in 2026. Functions performed in the Long Beach office include
overall regional corporate management, planning and strategy, commercial operations, logistics, contract
administration, marketing and governmental affairs.
We lease approximately 11,000 square feet for our regional corporate office in The Woodlands, Texas.
The lease for The Woodlands office expires in 2032. Functions performed in The Woodlands include pipeline
control center operations, logistics support functions and commercial operations in support of SBR.
Employees and Human Capital
Safety
We believe our responsibility to our employees, neighbors, shareholders, other stakeholders and the
environment is only fulfilled through our commitment to safety and reliability. Through rigorous training,
sharing of expertise across our sites, continuous monitoring and through promoting a culture of excellence in
operations, we continuously strive to keep our people, the communities in which we operate in and the
environment safe.
We are subject to the requirements of OSHA and comparable state statutes that regulate the protection of
the health and safety of workers. In addition, the OSHA Hazard Communication Standard requires that
information be maintained about hazardous materials used or produced in operations and that this information
be provided to employees, state and local government authorities and citizens. We believe that our operations
are in compliance with OSHA requirements, including general industry standards, record keeping requirements
and monitoring of occupational exposure to regulated substances.
Development and Retention
The development, attraction and retention of employees is a critical success factor for our Company. To
support the advancement of our employees, we offer rigorous training and development programs and
encourage the sharing of expertise across our sites. We actively promote inclusion and diversity in our
workforce at each of our locations and provide our employees with opportunities to give back through
engagement in our local communities through supportive educational programs, philanthropic and volunteer
activities.
We believe that a combination of competitive compensation and career growth and development
opportunities help increase employee morale and reduce voluntary turnover. Our comprehensive benefit
packages are competitive in the marketplace and we believe in recognizing and rewarding talent through our
various cash and equity compensation programs.
21
Headcount
As of December 31, 2024, we had approximately 3,855 employees, of which 1,979 are covered by
collective bargaining agreements. Our hourly employees are covered by collective bargaining agreements
through the United Steel Workers (“USW”), the Independent Oil Workers (“IOW”) and the International
Brotherhood of Electrical Workers (“IBEW”). We consider our relations with the represented employees to be
satisfactory.
Location
Number of
employees
Employees covered
by collective
bargaining
agreements
Collective bargaining agreements
Expiration
date
Headquarters
497
—
N/A
N/A
Delaware City
refinery
536
377
USW
January 2026
Paulsboro refinery
302
183
IOW
March 2026
Toledo refinery
521
333
USW
February 2026
Chalmette refinery
606
332
USW
January 2026
Torrance refinery
598
309
15
USW
IBEW
January 2026
January 2026
Torrance logistics
95
4
37
USW
USW
January 2026
April 2027
Martinez refinery
605
320
19
USW
IBEW
February 2026
February 2026
Other Logistics assets
95
28
10
12
USW-East Coast Storage Assets
USW- East Coast Terminals
USW- East Coast Terminals
January 2026
April 2026
March 2028
Total employees
3,855
1,979
Information About Our Executive Officers
The following is a list of our executive officers as of February 13, 2025:
Name
Age (as of
December 31,
2024 )
Position
Thomas J. Nimbley
73
Executive Chairman, Chairman of the Board
Matthew C. Lucey
51
President, Chief Executive Officer
Karen B. Davis
68
Senior Vice President, Chief Financial Officer
T. Paul Davis
62
Senior Vice President, Supply, Trading and Optimization
Thomas O’Connor
52
Senior Vice President, Commodity Risk and Strategy
Trecia M. Canty
55
Senior Vice President, General Counsel & Corporate Secretary
Michael A. Bukowski
55
Senior Vice President, Head of Refining
Wendy Ho Tai
58
Senior Vice President, Human Resources
Jim Fedena
60
Senior Vice President, Logistics, Renewable Fuels, and Strategic Assets
22
Thomas J. Nimbley has served as Chairman of the Board since June 30, 2016 and Executive Chairman
since July 1, 2023. He previously served as our Chief Executive Officer from June 2010 through June 2023 and
was our Executive Vice President, Chief Operating Officer from April 2010 through June 2010. Mr. Nimbley
also serves as a director and the Executive Chairman of certain of our subsidiaries. Prior to joining us, Mr.
Nimbley served as a Principal for Nimbley Consultants LLC from June 2005 to March 2010, where he provided
consulting services and assisted on the acquisition of two refineries. He previously served as Senior Vice
President and head of Refining for Phillips Petroleum Company (“Phillips”) and, subsequently, Senior Vice
President and head of Refining for ConocoPhillips’ (“ConocoPhillips”) domestic refining system (13 locations)
following the merger of Phillips and Conoco Inc. Before joining Phillips at the time of its acquisition of Tosco
Corporation (“Tosco”) in September 2001, Mr. Nimbley served in various positions with Tosco and its
subsidiaries starting in April 1993.
Matthew C. Lucey has served as our President since January 2015 and Chief Executive Officer and a
member of our Board of Directors since July 1, 2023. Mr. Lucey is also a director and the Chief Executive
Officer of certain of our subsidiaries. Mr. Lucey previously served as our Executive Vice President from April
2014 to December 2014 and served as our Senior Vice President, Chief Financial Officer from April 2010 to
March 2014. Mr. Lucey joined us as our Vice President, Finance in April 2008. Prior thereto, Mr. Lucey served
as a Managing Director of M.E. Zukerman & Co., a New York-based private equity firm specializing in several
sectors of the broader energy industry, from 2001 to 2008. Before joining M.E. Zukerman & Co., Mr. Lucey
spent six years in the banking industry.
Karen B. Davis has served as our Senior Vice President, Chief Financial Officer since February 20, 2023
and has been serving as our Principal Accounting Officer since May 11, 2023. She served as interim Chief
Financial Officer from January 1, 2023 to February 19, 2023. Ms. Davis is also a director and the Chief
Financial Officer of certain of our subsidiaries. Ms. Davis previously served as Executive Vice President and
Chief Financial Officer of Western Refining, Inc. and its affiliated entities, Western Refining Logistics LP and
Northern Tier Energy, LP through May 2017. During her career, she has served in various chief financial officer
and financial reporting officer positions with various public and private companies throughout the United
States. Ms. Davis served as an independent director of PBF Energy from January 1, 2020 to December 31, 2022
and the Chairperson of the Audit Committee from October 1, 2020 to December 31, 2022. From 2017 through
2019, she served as an independent director of PBFX GP, where she was a member of the Audit and the
Conflicts Committees.
T. Paul Davis has served as our Senior Vice President, Supply, Trading and Optimization since April
2022. He previously served as President, PBF Western Region from September 2017 to April 2022. Mr. Davis
joined us in April 2012 and held various executive roles in our commercial operations, including Co-Head of
Commercial, prior to serving as Senior Vice President, Western Region Commercial Operations from
September 2015 to September 2017. Previously, Mr. Davis was responsible for managing the U.S. clean
products commercial operations for Hess Energy Trading Company from 2006 to 2012. Prior to that, Mr. Davis
was responsible for Premcor’s U.S. Midwest clean products disposition group. Mr. Davis has over 29 years of
experience in commercial operations in crude oil and refined products, including 16 years with the ExxonMobil
in various operational and commercial positions, including sourcing refinery feedstocks and crude oil and the
disposition of refined products, as well as optimization roles within refineries.
Thomas O’Connor has served as our Senior Vice President, Commodity Risk and Strategy since April
2022. He previously served as Senior Vice President, Commercial from September 2015 to April 2022. Mr.
O’Connor joined us as Senior Vice President in September 2014 with responsibility for business development
and growing the business of PBFX, and from January to September 2015, served as our Co-Head of commercial
activities. Prior to joining us, Mr. O’Connor worked at Morgan Stanley since 2000 in various positions, most
recently as a Managing Director and Global Head of Crude Oil Trading and Global Co-Head of Oil Flow
Trading. Prior to joining Morgan Stanley, Mr. O’Connor worked for Tosco from 1995 to 2000 in the Atlantic
Basin Fuel Oil and Feedstocks group.
23
Trecia M. Canty has served as our Senior Vice President, General Counsel and Corporate Secretary since
September 2015. In her role, Ms. Canty is responsible for the legal department and outside counsel, which
provide a broad range of support for the Company’s business activities, including corporate governance,
compliance, litigations and mergers and acquisitions. Previously, Ms. Canty was named Vice President, Senior
Deputy General Counsel and Assistant Secretary in October 2014 and led our commercial and finance legal
operations since joining us in November 2012. Ms. Canty is also a director of certain of our subsidiaries. Prior
to joining us, Ms. Canty served as Associate General Counsel, Corporate and Assistant Secretary of
Southwestern Energy Company, where her responsibilities included finance and mergers and acquisitions,
securities and corporate compliance and corporate governance. She also provided legal support to the midstream
marketing and logistics businesses. Prior to joining Southwestern Energy Company in 2004, she was an
associate with Cleary, Gottlieb, Steen & Hamilton.
Michael A. Bukowski has served as our Senior Vice President, Head of Refining since March 2024 and
has responsibility for our refining operations. Prior to joining us, from May 2023 until February 2024, Mr.
Bukowski served as Vice President, Regional Refining for the Midcontinent and Atlantic Basin at Phillips 66.
From August 2016 to May 2023, Mr. Bukowski’s prior roles with Phillips 66 included Vice President of
Refining Transformation, Vice President, Strategy and various other positions with responsibility for designing
a new refining organization and aligning employees with refining and corporate strategies. Mr. Bukowski also
previously served as General Manager of Sunoco’s Philadelphia refinery.
Wendy Ho Tai has served as our Senior Vice President, Human Resources since April 2022. She
previously served as Vice President, Human Resources from March 2015 to April 2022 and as Senior Director,
Compensation and Benefits from October 2010 to February 2015. In her tenure, Ms. Ho Tai has established the
PBF benefit plans, implemented the HR information system and assisted in the integration of the employees of
all acquisitions. Previously, Ms. Ho Tai held human resources management positions with Petro, Inc. and
MarketSmart Interactive.
Jim Fedena has served as our Senior Vice President, Logistics, Renewable Fuels, and Strategic Assets
since April 2022. He previously served as a Senior Vice President of Health, Safety and Environment from June
2010 to January 2013. From June 2010 through February 2011, he also served as the Delaware City refinery
Manager during the reactivation period and, from January 2013 to April 2022, he served as Senior Vice
President – Logistics. Prior to joining PBF Energy he served as managing partner for PJF Associates providing
consulting services for private equity firms on refining acquisitions in North America and Europe. Mr. Fedena
has over 30 years of oil industry experience in refining, pipelines, and terminal operations. He also served in
various positions with Premcor, ConocoPhillips, Phillips, Tosco and Coastal with responsibility for health,
safety and environmental programs.
24
Environmental, Health and Safety Matters
Our refineries, pipelines and related operations are subject to extensive and frequently changing federal,
state and local laws and regulations, including, but not limited to, those relating to the discharge of materials
into the environment or that otherwise relate to the protection of the environment, waste management and the
characteristics and the compositions of fuels. Compliance with existing and anticipated laws and regulations can
increase the overall cost of operating the refineries, including remediation, operating costs and capital costs to
construct, maintain and upgrade equipment and facilities. Permits are also required under these laws for the
operation of our refineries, pipelines and related operations and these permits are subject to revocation,
modification and renewal. Compliance with applicable environmental laws, regulations and permits will
continue to have an impact on our operations, results of operations and capital requirements. We believe that
our current operations are in substantial compliance with existing environmental laws, regulations and permits.
We incorporate by reference into this Item the environmental disclosures contained in the following
sections of this report:
•
Item 1A. “Risk Factors”
◦Our results of operations continue to be impacted by significant costs to comply with renewable fuels
mandates. The market prices for RINs have been volatile and may harm our profitability;
◦We may have capital needs for which our internally generated cash flows and other sources of
liquidity may not be adequate;
◦We may incur significant liability under, or costs and capital expenditures to comply with, regulatory,
environmental and health and safety regulations, which are complex and change frequently;
◦Potential further laws and regulations related to climate change could have a material adverse impact
on our operations and adversely affect our facilities;
◦Regulation of emissions of greenhouse gases could force us to incur increased capital expenditures
and operating costs that could have a material adverse effect on our results of operations and financial
condition;
◦Environmental clean-up and remediation costs of our sites and environmental litigation, including
related to climate change, could decrease our net cash flow, reduce our results of operations and impair
our financial condition;
◦Our pipelines are subject to federal and/or state regulations, which could reduce profitability and the
amount of cash we generate;
◦We could incur substantial costs or disruptions in our business if we cannot obtain or maintain
necessary permits and authorizations or otherwise comply with health, safety, environmental and other
laws and regulations;
◦Enhanced scrutiny on ESG matters and developments related to climate change may negatively impact
our business and our access to capital markets;
◦We are subject to strict laws and regulations regarding employee and process safety, and failure to
comply with these laws and regulations could have a material adverse effect on our results of operations,
financial condition and profitability.
•
Item 3. “Legal Proceedings”
•
Item 8. “Financial Statements and Supplementary Data”
◦ Note 8 - Accrued Expenses,
◦ Note 11 - Commitments and Contingencies
25
Applicable Federal and State Regulatory Requirements
As is the case with all companies engaged in industries similar to ours, we face potential exposure to
future claims and lawsuits involving environmental and safety matters. These matters include soil and water
contamination, air pollution, personal injury and property damage allegedly caused by substances which we
manufactured, handled, used, released or disposed of.
Current and future environmental regulations are expected to require additional expenditures, including
expenditures for investigation and remediation, which may be significant, at our refineries and at our other
facilities. To the extent that future expenditures for these purposes are material and can be reasonably
determined, these costs are disclosed and accrued.
Our operations are also subject to various laws and regulations relating to occupational health and safety.
We maintain safety training and maintenance programs as part of our ongoing efforts to ensure compliance with
applicable laws and regulations. Compliance with applicable health and safety laws and regulations has required
and continues to require substantial expenditures.
We cannot predict what additional health, safety and environmental legislation or regulations will be
enacted or become effective in the future or how existing or future laws or regulations will be administered or
interpreted with respect to our operations. Compliance with more stringent laws or regulations or adverse
changes in the interpretation of existing requirements or discovery of new information such as unknown
contamination could have an adverse effect on the financial position and the results of our operations and could
require substantial expenditures for the installation and operation of systems and equipment that we do not
currently possess.
We incorporate by reference into this Item the federal and state regulatory requirements disclosures
contained in the following sections of this report:
•
Item 8. “Financial Statements and Supplementary Data”
◦ Note 11 - Commitments and Contingencies
26
ITEM 1A. RISK FACTORS
Summary of Risk Factors
Investing in our common stock involves a degree of risk. These risks are discussed more fully below and
include, but are not limited to, the following, any of which could have a material adverse effect on our financial
condition, results of operations and cash flows:
Risks Relating to Our Business and Industry
•
The price volatility of crude oil, other feedstocks, blendstocks, refined products and fuel and utility
services;
•
Volatility in commodity prices and refined product demand;
•
Crude oil differentials and related factors, which fluctuate substantially;
•
Significant interruptions or casualty losses at any of our refineries and related assets or logistics
terminals, pipelines or other facilities owned by us or by SBR;
•
Interruptions of supply and distribution at our refineries;
•
Renewable fuels mandates and the cost of RINs;
•
Existence of capital needs for which our internally generated cash flows and other sources of liquidity
may not be adequate;
•
Regulation related to climate change and emissions of greenhouse gases and other regulatory,
environmental and health and safety regulations;
•
A cyber-attack on, or other failure of, our technology infrastructure;
•
Successful management of the commercial operation of SBR;
•
Enhanced scrutiny on ESG matters;
•
Rate of inflation, including increases due to tariffs and other trade measures that may be imposed by
the new presidential administration, and its impacts on supply and demand, pricing, and supply chain
disruption;
•
Actions taken by our competitors, including adjustments to refining capacity or renewable fuels
production in response to regulations and market conditions;
•
Volatility and uncertainty in the credit and capital markets, including as a result of higher interest rates;
•
Any political instability, including as a result of Russia’s military action in Ukraine, armed hostilities
in the middle east, disruption in international shipping resulting from attacks by armed groups on cargo
ships, military strikes, sustained military campaigns, terrorist activity, changes in foreign policy, or
other catastrophic events;
•
Competition from other companies in the refining or renewable fuels industries;
•
Delays or cost increases related to capital spending programs;
•
Product liability claims, operational liability claims and other material litigation;
•
Acquisition or integration of new assets into our business;
•
Labor disruptions that would interfere with our operations;
•
Discontinuation of employment of any of our senior executives or other key employees;
•
Our activity in commodity derivatives markets.
Risks Related to Our Indebtedness
•
Our levels of indebtedness;
•
Our ability to secure necessary financing on acceptable terms;
•
Changes in our credit ratings;
•
Limitations on our operations arising out of restrictive covenants in our debt instruments;
•
Anti-takeover provisions in our indentures.
27
Risks Related to Our Organizational Structure and PBF Energy Class A Common Stock
•
PBF Energy’s dependence upon distributions from PBF LLC and its subsidiaries to pay taxes and meet
its other obligations;
•
The rights of other members of PBF LLC may conflict with the interests of PBF Energy Class A
common stockholders;
•
Obligations under the Tax Receivable Agreement, as defined below;
•
Prospect that dividend payments may not be declared in the future;
•
Anti-takeover provisions in our certificate of incorporation and bylaws and under Delaware law;
•
Volatility of our stock price;
•
Potential dilution of our current stockholders.
Risk Factors
You should carefully read the risks and uncertainties described below. The risks and uncertainties
described below are not the only ones facing our Company. Additional risks and uncertainties may also impair
our business operations. If any of the following risks actually occur, our business, financial condition, results of
operations or cash flows would likely suffer. In that case, the trading price of PBF Energy Class A common
stock could fall.
Risks Relating to Our Business and Industry
Demand for our refined products can significantly decline due to changes in global and regional economic
conditions.
Business closings and layoffs in the markets we operate may adversely affect demand for our refined
products. Deterioration of general economic conditions or weak demand levels could require additional actions
on our part to lower our operating costs, including temporarily or permanently ceasing to operate units at our
facilities. There may be significant incremental costs associated with such actions. Deterioration of global and
regional economic conditions may harm our liquidity and ability to repay our outstanding debt and the trading
price of PBF Energy’s Class A common stock.
The price volatility of crude oil, other feedstocks, blendstocks, refined products and fuel and utility services
may have a material adverse effect on our revenues, profitability, cash flows and liquidity.
Our profitability, cash flows and liquidity from operations depend primarily on the margin above
operating expenses (including the cost of refinery feedstocks, such as crude oil, intermediate partially refined
products, and natural gas liquids that are processed and blended into refined products) at which we are able to
sell refined products. Refining is primarily a margin-based business and, to increase profitability, it is important
to maximize the yields of high value finished products while minimizing the costs of feedstock and operating
expenses. When the margin between refined product prices and crude oil and other feedstock costs contracts,
our earnings, profitability and cash flows are negatively affected. Historically, refining margins have been
volatile, and are likely to continue to be volatile, as a result of a variety of factors, including fluctuations in the
prices of crude oil, other feedstocks, refined products and fuel and utility services. An increase or decrease in
the price of crude oil will likely result in a similar increase or decrease in prices for refined products; however,
there may be a time lag in the realization, or no such realization, of the similar increase or decrease in prices for
refined products. The effect of changes in crude oil prices on our refining margins therefore depends in part on
how quickly and how fully refined product prices adjust to reflect these changes.
28
The nature of our business has required us to maintain substantial crude oil, feedstock and refined
product inventories. Because crude oil, feedstock and refined products are commodities, we have no control
over the changing market value of these inventories. Our crude oil, feedstock and refined product inventories
are valued at the LCM value under the last-in-first-out (“LIFO”) inventory valuation methodology. At
December 31, 2024 and December 31, 2023, the replacement value of inventories exceeded the LIFO carrying
value, therefore no LCM inventory reserve was recorded. If the market value of our crude oil, feedstock and
refined product inventory declines to an amount less than our LIFO cost, we would record a write-down of
inventory and a non-cash impact to cost of products and other.
Prices of crude oil, other feedstocks, blendstocks, and refined products depend on numerous factors
beyond our control, including the supply of and demand for crude oil, other feedstocks, gasoline, diesel,
ethanol, asphalt and other refined products. Such supply and demand are affected by a variety of economic,
market, environmental and political conditions.
Our direct operating expense structure also impacts our profitability. Our major direct operating expenses
include employee and contract labor, maintenance and energy. Our predominant variable direct operating cost is
energy, which is comprised primarily of fuel and other utility services. The volatility in costs of fuel, principally
natural gas, and other utility services, principally electricity, used by our refineries and other operations affect
our operating costs. Fuel and utility prices have been, and will continue to be, affected by factors outside our
control, such as supply and demand for fuel and utility services in both local and regional markets. Natural gas
prices have historically been volatile and, typically, electricity prices fluctuate with natural gas prices. Future
increases in fuel and utility prices may have a negative effect on our refining margins, profitability and cash
flows.
In addition, the operations, profitability and cash flows of SBR may similarly be impacted by volatility of
renewable feedstock costs and operating expenses, which may negatively impact the anticipated benefits and
operating synergies from the Renewable Diesel Facility or our equity method investment in SBR. See “We may
not be able to successfully realize the anticipated benefits of our investment in SBR or meet our obligations to
SBR” risk factor below.
Our working capital, cash flows and liquidity can be significantly impacted by volatility in commodity prices
and refined product demand.
Payment terms for our crude oil purchases are typically longer than those terms we extend to our
customers for sales of refined products. Additionally, reductions in crude oil purchases tend to lag demand
decreases for our refined products. As a result of this timing differential, the payables for our crude oil
purchases are generally proportionally larger than the receivables for our refined product sales. As we are
normally in a net payables position, a decrease in commodity prices generally results in a use of working
capital. Given we process a significant volume of crude oil, the impact can materially affect our working capital,
cash flows and liquidity.
29
Our profitability is affected by crude oil differentials and related factors, which fluctuate substantially.
A significant portion of our profitability is derived from the ability to purchase and process crude oil
feedstocks that historically have been less expensive than benchmark crude oils, such as the heavy, sour crude
oils processed at our Delaware City, Paulsboro, Chalmette, Torrance and Martinez refineries. For our Toledo
refinery, aside from recent crude differential volatility, purchased crude prices have historically been above the
WTI benchmark, however, such crude slate typically results in favorable refinery production yield. For all
locations, these crude oil differentials can vary significantly from quarter to quarter depending on overall
economic conditions and trends and conditions within the markets for crude oil and refined products. Any
change in these crude oil differentials may have an impact on our earnings. Our rail investment and strategy to
acquire cost advantaged Mid-Continent and Canadian crude, which are priced based on WTI, could be
adversely affected when the WTI/Dated Brent or related differentials narrow. A narrowing of the WTI/Dated
Brent differential may result in our Toledo refinery losing a portion of its crude oil price advantage over certain
of our competitors, which negatively impacts our profitability. In addition, imbalances between the production
and capacity to export crude in Canada may continue to result in price volatility and the narrowing of the WTI/
WCS differential, which is a proxy for the difference between light U.S. and heavy Canadian crude oil, and may
reduce our refining margins and adversely affect our profitability and earnings. Divergent views have been
expressed as to the expected magnitude of changes to these crude differentials in future periods. Any continued
or further narrowing of these differentials could have a material adverse effect on our business and profitability.
Additionally, governmental and regulatory actions, including continued resolutions by the Organization
of the Petroleum Exporting Countries to restrict crude oil production levels and executive actions by the new
U.S. presidential administration to advance certain energy infrastructure projects such as the Keystone XL
pipeline or Enbridge's Line 5 pipeline, may continue to impact crude oil prices and crude oil differentials. Any
increase in crude oil prices or unfavorable movements in crude oil differentials due to such actions or changing
regulatory environment may negatively impact our ability to acquire crude oil at economical prices and could
have a material adverse effect on our business and profitability.
A significant interruption or casualty loss at any of our refineries and related assets or logistics terminals,
pipelines or other facilities owned by us or by SBR, could reduce production, particularly if not fully covered
by our insurance. Failure by one or more insurers to honor its coverage commitments for an insured event
could materially and adversely affect our future cash flows, operating results and financial condition.
Our business currently consists of owning and operating six refineries and related assets, as well as
logistics terminals, pipelines and other facilities and our investment in SBR. As a result, our operations could be
subject to significant interruption if any of our refineries or other facilities were to experience a major accident,
be damaged by severe weather, wildfires or other natural disasters, or otherwise be forced to shut down or
curtail production due to unforeseen events, such as acts of God, nature, orders of governmental authorities,
supply chain disruptions impacting our crude rail facilities or other logistics assets, power outages, acts of
terrorism, fires, toxic emissions and maritime hazards. Any such shutdown or disruption would reduce the
production from that refinery. There is also risk of mechanical failure and equipment shutdowns both in general
and following unforeseen events. Further, in such situations, undamaged refinery processing units may be
dependent on or interact with damaged sections of our refineries and, accordingly, are also subject to being shut
down. In the event any of our refineries is forced to shut down for a significant period of time or permanently, it
could have a material adverse effect on our earnings, our other results of operations and our financial condition
as a whole. In addition, a shutdown or disruption of our Chalmette refinery could impact the operations of SBR.
On February 1, 2025, a fire occurred at our Martinez refinery during preliminary turnaround activities, which
resulted in the temporary shutdown of refinery operations. The cause of the fire is currently under investigation.
We are assessing the extent of the property damage arising from the fire and potential recoveries from insurance
coverage are also being evaluated. At this time, as the cost of repairs, the length of the shutdown and other
potential liabilities, including regulatory penalties, arising from the incident are unknown, the operational and/or
financial impact cannot be reasonably estimated.
30
As protection against these hazards, we maintain insurance coverage for our refineries against some, but
not all, such potential losses and liabilities, including claims against us by third parties relating to our operations
and products. We or SBR may not be able to maintain or obtain insurance of the type and amount desired at
reasonable rates. As a result of market conditions, premiums and deductibles for certain of our insurance
policies may increase substantially. In some instances, certain insurance could become unavailable or available
only for reduced amounts of coverage. For example, coverage for hurricane damage can be limited, and
coverage for terrorism risks can include broad exclusions. If we or SBR were to incur a significant liability that
was not fully insured, it could have a material adverse effect on our financial position.
Our insurance program includes a number of insurance carriers. Significant disruptions in financial
markets could lead to a deterioration in the financial condition of many financial institutions, including
insurance companies and, therefore, we may not be able to obtain the full amount of our insurance coverage for
insured events. Even where we have insurance in place, there can be no assurance that the carriers will honor
their obligations under the policies. We are assessing the extent of the property damage arising from the recent
Martinez refinery fire and potential recoveries from insurance coverage are also being evaluated. At this time, as
the cost of repairs, the length of the shutdown and other potential liabilities, including regulatory penalties,
arising from the incident are unknown, the operational and/or financial impact cannot be reasonably estimated.
In the event the Martinez refinery is forced to shut down for a significant period of time, it could have a material
adverse effect on our earnings, our other results of operations and our financial condition as a whole.
Our refineries are subject to interruptions of supply and distribution, including due to severe weather events,
as a result of our reliance on pipelines and railroads for transportation of crude oil and refined products.
Our Toledo, Chalmette, Torrance and Martinez refineries receive a significant portion of their crude oil
through our owned, as well as third-party, pipelines. These pipelines include the Enbridge system, Capline and
Mid-Valley pipelines for supplying crude to our Toledo refinery, the MOEM Pipeline and CAM Pipeline for
supplying crude to our Chalmette refinery and the San Joaquin Pipeline, San Pablo Bay Pipeline, San Ardo and
Coastal Pipeline systems for supplying crude to our Torrance and Martinez refineries. Additionally, our Toledo,
Chalmette, Torrance and Martinez refineries deliver a significant portion of the refined products through
pipelines. These pipelines include pipelines such as the Sunoco Logistics Partners L.P. and Buckeye Partners
L.P. pipelines at the Toledo refinery, the Collins pipeline at our Chalmette refinery, the Jet Pipeline to the Los
Angeles International Airport, the Product Pipeline to Vernon and the Product Pipeline to Atwood at our
Torrance refinery and the KinderMorgan SFPP North Pipeline at our Martinez refinery. We could experience an
interruption of supply or delivery, or an increased cost of receiving crude oil and delivering refined products to
market, if the ability of these pipelines to transport crude oil or refined products is disrupted because of
accidents, weather interruptions, governmental regulation, terrorism, other third-party action or casualty or other
events.
The Delaware City rail unloading facilities and the assets acquired in connection with the acquisition of
CPI Operations LLC (the “East Coast Storage Assets”), allow our East Coast Refining System to source WTI-
based crudes from Western Canada and the Mid-Continent, which may provide significant cost advantages
versus traditional Brent-based international crudes in certain market environments. Any disruptions or
restrictions to our supply of crude by rail due to problems with third-party logistics infrastructure or operations
or as a result of increased regulations, could increase our crude costs and negatively impact our results of
operations and cash flows.
Due to the common carrier regulatory obligation applicable to interstate oil pipelines, capacity allocation
among shippers can become contentious in the event demand is in excess of capacity. Therefore, nominations
by new shippers or increased nominations by existing shippers may reduce the capacity available to us. Any
prolonged interruption in the operation or curtailment of available capacity of the pipelines that we rely upon for
transportation of crude oil and refined products could have a further material adverse effect on our business,
financial condition, results of operations and cash flows.
31
In addition, substantial weather-related conditions could impact our relationships and arrangements with
our major customers and suppliers by materially affecting the normal flow of crude oil and refined products,
especially seaborne transactions. For example, severe weather events could damage transportation
infrastructures and lead to interruptions of our operations, including our ability to deliver our products, or
increases in costs to receive crude oil.
Our results of operations continue to be impacted by significant costs to comply with renewable fuels
mandates. The market prices for RINs have been volatile and may harm our profitability.
Pursuant to the Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007, EPA
has issued the RFS, implementing mandates to blend renewable fuels into the petroleum fuels produced and
sold in the United States. Under the RFS, the volume of renewable fuels that obligated refineries must blend
into their finished petroleum fuels historically has increased on an annual basis. In addition, certain states have
passed legislation that requires minimum biodiesel blending in finished distillates. On October 13, 2010, EPA
raised the maximum amount of ethanol allowed under federal law from 10% to 15% for cars and light trucks
manufactured since 2007. The maximum amount allowed under federal law currently remains at 10% ethanol
for all other vehicles. Existing laws and regulations could change, and the minimum volumes of renewable fuels
that must be blended with refined petroleum fuels may increase, which could displace an increasing volume of
our refinery’s product pool, potentially resulting in lower earnings and profitability. In addition, in order to meet
certain of these and future EPA requirements, we may be required to purchase RINs, which may have
fluctuating costs based on market conditions. Our results continue to be impacted by significant costs to comply
with the RFS. While we have entered into agreements with SBR that allow us to purchase RINs at our election,
we incurred approximately $515.3 million in RINs costs during the year ended December 31, 2024 as compared
to $762.3 million and $1,225.5 million during the years ended December 31, 2023 and 2022, respectively. The
fluctuations in our RINs costs are due primarily to volatility in prices for ethanol-linked RINs and increases in
our production of on-road transportation fuels since 2012. Our RINs purchase obligation is dependent on our
actual shipment of on-road transportation fuels domestically and the amount of blending achieved which can
cause variability in our profitability. On June 21, 2023, EPA finalized the volumes of renewable fuels that
obligated refineries must blend into their final petroleum fuels for years 2023, 2024, and 2025, and finalized
volume requirements and percentage standards under the RFS program for 2023, 2024, and 2025, as well as
making a series of important modifications to strengthen and expand the RFS program. As a result, we could
also experience fluctuating compliance costs in the future if the volumes finalized by EPA differ from what has
been proposed.
We may have capital needs for which our internally generated cash flows and other sources of liquidity may
not be adequate.
If we cannot generate sufficient cash flows or otherwise secure sufficient liquidity to support our short-
term and long-term capital requirements, we may not be able to meet our payment obligations or our future debt
obligations, comply with certain deadlines related to environmental regulations and standards, or pursue our
business strategies, including acquisitions, in which case our operations may not perform as we currently
expect. We have substantial short-term capital needs and may have substantial long-term capital needs. Our
short-term working capital needs are primarily related to financing certain of our crude oil and refined products
inventory.
32
If we cannot adequately handle our crude oil and feedstock requirements or if we are required to obtain
our crude oil supply at our other refineries without the benefit of the existing supply arrangements or the
applicable counterparty defaults in its obligations, our crude oil pricing costs may increase as the number of
days between when we pay for the crude oil and when the crude oil is delivered to us increases. We fund all
inventory purchases with existing working capital or other available sources of liquidity. Further, if we are not
able to market and sell our finished products to credit worthy customers, we may be subject to delays in the
collection of our accounts receivable and exposure to additional credit risk. Such increased exposure could
negatively impact our liquidity due to our increased working capital needs as a result of the increase in the
amount of crude oil inventory and accounts receivable we would have to carry on our balance sheet. Our long-
term needs for cash include those to repay our indebtedness and other contractual obligations, support ongoing
capital expenditures for equipment maintenance and upgrades, including during turnarounds at our refineries,
and to complete our routine and normally scheduled maintenance, regulatory and security expenditures.
In addition, from time to time, we may be required to spend significant amounts for repairs when one or
more processing units experiences temporary shutdowns. We continue to utilize significant capital to upgrade
equipment, improve facilities, and reduce operational, safety and environmental risks. In connection with the
Paulsboro, Torrance and Martinez acquisitions, we assumed certain significant environmental obligations, and
may similarly do so in future acquisitions. We will likely incur substantial compliance costs in connection with
new or changing environmental, health and safety regulations. See “Item 7. Management’s Discussion and
Analysis of Financial Condition and Results of Operations.” Our liquidity and financial condition will affect our
ability to satisfy any and all of these needs or obligations.
We may incur significant liability under, or costs and capital expenditures to comply with, regulatory,
environmental and health and safety regulations, which are complex and change frequently.
Our operations are subject to federal, state and local laws regulating, among other things, the use and/or
handling of petroleum and other regulated materials, the emission and discharge of materials into the
environment, waste management, and remediation of discharges of petroleum and petroleum products,
characteristics and composition of gasoline and distillates and other matters otherwise relating to the protection
of the environment and the health and safety of the surrounding community. Our operations are also subject to
extensive laws and regulations relating to occupational health and safety.
We cannot predict what additional environmental, health and safety legislation or regulations may be
adopted in the future, or how existing or future laws or regulations may be administered or interpreted with
respect to our operations. Many of these laws and regulations have become increasingly stringent over time, and
the cost of compliance with these requirements can be expected to increase over time. In addition, a failure to
comply with these laws and regulations could adversely impact our ability to operate. For example, MRC is
subject to amendments to “Regulation 6-5: Particulate Emissions from Refinery Fluidized Catalytic Cracking
Units - 2021 Amendment” (“Rule 6-5 Amendment”) requiring compliance with more stringent standards for
particulate emissions from FCC units at refineries in the Bay Area that will be effective in 2026. Although MRC
believes that it will achieve compliance through the alternative emissions monitoring system (“AEMS”)
approved by the Bay Area Air Quality Management District (“BAAQMD”) and subject to validation as part of
the settlement agreement entered into on February 12, 2024, there can be no assurance that the AEMS will be
validated or achieve the required emissions reductions or that we will not incur significant additional costs to
comply with the Rule 6-5 Amendment.
33
Certain environmental laws impose strict, and in certain circumstances, joint and several, liability for
costs of investigation and cleanup of spills, discharges or releases on owners and operators of, as well as
persons who arrange for treatment or disposal of regulated materials at, contaminated sites. Under these laws,
we may incur liability or be required to pay penalties for past contamination, and third parties may assert claims
against us for damages allegedly arising out of any past or future contamination. The potential penalties and
clean-up costs for past or future spills, discharges or releases, the failure of prior owners of our facilities to
complete their clean-up obligations, the liability to third parties for damage to their property, or the need to
address newly-discovered information or conditions that may require a response could be significant, and the
payment of these amounts could have a material adverse effect on our business, financial condition, cash flows
and results of operations.
See also “Recent record refining industry profits have raised the concern of public policy experts and
federal and state policymakers, who have questioned whether these profits are justified, or whether they
constituted a “windfall” to the industry and have enacted or could enact legislation that could adversely affect
our operations and our profitability” risk factor below for additional regulatory risks that are not environmental,
health or safety-related.
Potential further laws and regulations related to climate change could have a material adverse impact on our
operations and adversely affect our facilities.
Some scientists have concluded that increasing concentrations of GHGs in the Earth’s atmosphere may
produce climate changes that have significant physical effects, such as increased frequency and severity of
storms, droughts, floods and other climatic events. We believe the issue of climate change will likely continue
to receive scientific and political attention, with the potential for further laws and regulations that could
materially adversely affect our ongoing operations.
In addition, as many of our facilities are located near coastal areas, rising sea levels may disrupt our
ability to operate those facilities or transport crude oil and refined products. Extended periods of such disruption
could have an adverse effect on our results of operation. We could also incur substantial costs to protect or
repair these facilities.
Regulation of emissions of greenhouse gases could force us to incur increased capital expenditures and
operating costs and could have a material adverse effect on our results of operations and financial condition.
Both houses of Congress have actively considered legislation to reduce emissions of GHGs, such as
carbon dioxide and methane, including proposals to: (i) establish a cap and trade system, (ii) create a federal
renewable energy or “clean” energy standard requiring electric utilities to provide a certain percentage of power
from such sources, and (iii) create enhanced incentives for use of renewable energy and increased efficiency in
energy supply and use. In addition, EPA has taken steps to regulate GHGs under the existing federal Clean Air
Act. EPA has adopted regulations limiting GHG emissions for light- and medium-duty vehicles and heavy-duty
highway vehicles. EPA has also adopted regulations addressing the permitting of GHG emissions from
stationary sources, and requiring the reporting of GHG emissions from specified large GHG emission sources,
including refineries. These and similar regulations could require us to incur costs to monitor and report GHG
emissions or reduce emissions of GHGs associated with our operations. In addition, various states, individually
as well as in some cases on a regional basis, have taken steps to control GHG emissions, including adoption of
GHG reporting requirements, cap and trade systems and renewable portfolio standards (such as AB 32). On
September 23, 2020 the Governor of California issued an executive order effectively banning the sale of new
gasoline-powered passenger cars and trucks by 2035 and requiring zero-emission medium to heavy duty
vehicles by 2045 everywhere feasible. The executive order requires state agencies to build out sufficient electric
vehicle charging infrastructure. It is not possible at this time to predict the ultimate form, timing or extent of
federal or state regulation. In the event we do incur increased costs as a result of increased efforts to control
GHG emissions, we may not be able to pass on any of these costs to our customers. Regulatory requirements
also could adversely affect demand for the refined products that we produce. Any increased costs or reduced
demand could materially and adversely affect our business and results of operations.
34
Requirements to reduce emissions could result in increased costs to operate and maintain our facilities as
well as implement and manage new emission controls and programs put in place. For example, in September
2016, the state of California enacted Senate Bill 32, which further reduces greenhouse gas emissions targets to
40 percent below 1990 levels by 2030. Two regulations implemented to achieve these goals are Cap-and-Trade
and the LCFS. In 2012, CARB implemented Cap-and-Trade. This program currently places a cap on GHGs and
we are required to acquire a sufficient number of credits to cover emissions from our refineries and our in-state
sales of gasoline and diesel. In 2009, CARB adopted the LCFS, which required a 10% reduction in the carbon
intensity of gasoline and diesel by 2020. In 2022, California enacted Assembly Bill 1279 which requires the
state to achieve a GHG reduction target of 85 percent below 1990 levels by 2045 and overall carbon neutrality
by 2045. CARB also amended the LCFS in 2024, which requires a 30 percent reduction by 2030 and 90 percent
reduction by 2045 in the carbon intensity of transportation fuels (compared to a 2010 baseline). Compliance is
achieved through blending lower carbon intensity biofuels into gasoline and diesel or by purchasing credits.
Compliance with each of these programs is facilitated through a market-based credit system. If sufficient credits
are unavailable for purchase or we are unable to pass through costs to our customers, we have to pay a higher
price for credits or if we are otherwise unable to meet our compliance obligations, our financial condition and
results of operations could be adversely affected.
As noted above, on September 23, 2020, the California Governor issued Executive Order N-79-20
(“N-79-20 Order”) intended to further reduce GHGs within the state. The N-79-20 Order sets a 2035 goal of no
sale of internal combustion engines for passenger cars and pickup trucks within California, and a 2045 goal of
no sale of internal combustion engine medium- and heavy-duty trucks, and off-road vehicles and equipment.
However, the N-79-20 Order would still allow used internal combustion engine vehicles to be used and sold
after these dates. In an effort to accomplish the 2035 goal, on August 25, 2022, CARB voted unanimously to
adopt the Advanced Clean Cars II (“ACCII”) regulations. According to CARB, the ACCII regulations will
rapidly scale down light-duty passenger car, truck, and SUV emissions starting with the 2026 model year
through 2035. The regulations are two-pronged. First, they amend the California Zero-emission Vehicle
Regulation to require an increasing number of zero-emission vehicles, and rely on advanced vehicle
technologies, including battery-electric, hydrogen fuel cell electric, and plug-in hybrid electric vehicles, to meet
air quality and climate change emissions standards. Second, the regulations amend the California Low-emission
Vehicle Regulations to include increasingly stringent standards for gasoline cars and heavier passenger trucks to
continue to reduce smog-forming emissions while the sector transitions toward 100% electrification by 2035.
Similar to the ACCII, on April 28, 2023, CARB voted unanimously to adopt the Advanced Clean Fleet (“ACF”)
regulations with the goal of achieving a zero-emission truck and bus fleet by 2045 everywhere feasible, and
significantly earlier for certain market segments such as last mile delivery and drayage applications. The initial
focus of ACF is on high-priority fleets with vehicles that are suitable for early electrification, their subhaulers,
and entities that hire them. As to the 2045 goal, it is currently uncertain how the N-79-20 Order may be
ultimately implemented by various California regulatory agencies. In the event we do incur increased costs as a
result of increased efforts to control GHG emissions through future adopted regulatory requirements, we may
not be able to pass these costs to our customers. These future regulatory requirements also could adversely
affect demand for the refined products that we produce. Any increased costs or reduced demand could
materially and adversely affect our business and results of operations.
Environmental clean-up and remediation costs of our sites and environmental litigation, including related to
climate change, could decrease our net cash flow, reduce our results of operations and impair our financial
condition.
We may be subject to liability for the investigation and clean-up of environmental contamination at each
of the properties that we own, lease, occupy or operate and at off-site locations where we arrange for the
treatment or disposal of regulated materials. We may become involved in litigation or other proceedings related
to the foregoing. If we were to be held responsible for damages in any such litigation or proceedings, such costs
may not be covered by insurance and may be material. Historical soil and groundwater contamination has been
identified at our refineries. Currently, remediation projects for such contamination are underway in accordance
with regulatory requirements at our refineries.
35
In connection with the acquisitions of certain of our refineries and logistics assets, the prior owners have
retained certain liabilities or indemnified us for certain liabilities, including those relating to pre-acquisition soil
and groundwater conditions, and in some instances we have assumed certain liabilities and environmental
obligations, including certain existing and potential remediation obligations. If the prior owners fail to satisfy
their obligations for any reason, or if significant liabilities arise in the areas in which we assumed liability, we
may become responsible for remediation expenses and other environmental liabilities, which could have a
material adverse effect on our business, financial condition, results of operations and cash flow. As a result, in
addition to making capital expenditures or incurring other costs to comply with environmental laws, we also
may be liable for significant environmental litigation or for investigation and remediation costs and other
liabilities arising from the ownership or operation of these assets by prior owners, which could materially
adversely affect our business, financial condition, results of operations and cash flow. See “Item 1. Business—
Environmental, Health and Safety Matters” and “Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations—Material Cash Requirements”.
We may also face liability arising from current or future claims alleging personal injury or property
damage due to exposure to chemicals or other regulated materials, such as various perfluorinated compounds,
including perfluorooctanoate, perfluorooctane sulfonate, perfluorohexane sulfonate, or other per-and
polyfluoroalkyl substances (collectively, “PFAS”), asbestos, benzene, silica dust and petroleum hydrocarbons,
at or from our facilities. We may also face liability for personal injury, property damage, natural resource
damage or clean-up costs for the alleged migration of contamination from our properties. A significant increase
in the number or success of these claims could materially adversely affect our business, financial condition,
results of operations and cash flow. Recently, we have been voluntarily cooperating with various local, state and
federal agencies in their review of the environmental and health effects of PFAS and additional PFAS-related
laws may be developed at the local, state and federal level that could lead to our incurring liability for damages
or other costs, civil or criminal proceedings, the imposition of fines and penalties, or other remedies or
otherwise affect our business. Governmental inquiries or lawsuits involving PFAS could lead to our incurring
liability for damages or other costs, civil or criminal proceedings, the imposition of fines and penalties, or other
remedies, as well as restrictions on or added costs for our business operations going forward, including in the
form of restrictions on discharges at our manufacturing facilities or otherwise. We may be subject to asserted or
unasserted claims and governmental regulatory proceedings and inquiries related to the use of PFAS in a variety
of jurisdictions.
Changes in law or interpretation of settled law and changes in policy, including with respect to climate
change, other environmental regulations or regulations mandating efficiency standards or the use of alternative
fuels or uncompetitive fuel components, could adversely affect our operations and results by increasing our cost
of compliance, delaying or eliminating available business opportunities and/or preventing or limiting existing
operations. Our operations also may give rise to federal, state or local government enforcement proceedings
alleging non-compliance with applicable laws or regulations.
We operate in jurisdictions where very large and unpredictable punitive damage awards may occur in the
context of litigation. Private plaintiffs may also initiate legal action against us for alleged environmental
impacts. These parties may attempt to use the legal system to promote public policy agendas (including seeking
to reduce the production and sale of hydrocarbon products through litigation targeting the company or other
industry participants), gain political notoriety, or obtain monetary awards from the company. For example, in
recent years, private litigation has been increasingly initiated against oil and gas companies by local and state
agencies and private parties alleging climate change impacts arising from their operations and seeking damages
and equitable relief. We have not had any climate change litigation initiated against us to date and we cannot
reasonably predict whether any such litigation will be initiated against us or, if initiated, what the outcome
would be. If any such litigation were to be initiated against us, at a minimum, we would incur legal and other
expenses to defend such lawsuits, which amounts could be significant. If we failed to prevail in any such
litigation and were required to pay significant damages and/or materially alter the manner in which we conduct
our business, there could be a material adverse impact on our operations, financial condition or results of
operations.
36
Our pipelines are subject to federal and/or state regulations, which could reduce profitability and the amount
of cash we generate.
Our transportation activities are subject to regulation by multiple governmental agencies. The regulatory
burden on the industry increases the cost of doing business and affects profitability. Additional proposals and
proceedings that affect the oil industry are regularly considered by Congress, the states, the Federal Energy
Regulatory Commission, the United States Department of Transportation, and the courts. We cannot predict
when or whether any such proposals may become effective or what impact such proposals may have. Projected
operating costs related to our pipelines reflect the recurring costs resulting from compliance with these
regulations, and these costs may increase due to future acquisitions, changes in regulation, changes in use, or
discovery of existing but unknown compliance issues.
Recent record refining industry profits have raised the concern of public policy experts and federal and state
policymakers, who have questioned whether these profits are justified, or whether they constituted a
“windfall” to the industry and have enacted or could enact legislation that could adversely affect our
operations and our profitability.
Beginning in 2022, record refining industry profits raised the concern of many public policy experts and
federal and state policymakers, who have questioned whether these profits were justified, or whether they
constituted a “windfall” to the industry and have proposed legislation that if enacted could adversely affect our
profitability. In September 2022, California adopted Senate Bill No. 1322 (“SB 1322”), which requires
refineries in California to report monthly on the volume and cost of the crude oil they buy, the quantity and
price of the wholesale gasoline they sell, and the gross gasoline margin per barrel, among other information.
The provisions of SB 1322 were effective January 2023. In March 2023, California adopted Senate Bill No. 2
(such statute, together with any regulations contemplated or issued thereunder, “SBx 1-2”), which, among other
things, (i) authorized the establishment of a maximum gross gasoline refining margin and the imposition of a
financial penalty for profits above a maximum gross gasoline refining margin, (ii) significantly expanded the
reporting obligations under SB 1322 and the Petroleum Industry Information Reporting Act of 1980, which
include reporting requirements to the California Energy Commission (“CEC”) for all participants in the
petroleum industry supply chain in California (e.g., refiners, marketers, importers, transporters, terminals,
producers, renewables producers, pipelines, and ports), (iii) created the Division of Petroleum Market Oversight
within the CEC to analyze the data provided under SBx 1-2, and (iv) authorized the CEC to regulate the timing
and other aspects of refinery turnaround and maintenance activities in certain instances. SBx 1-2 imposes
increased and substantial reporting requirements, which include daily, weekly, monthly, and annual reporting of
detailed operational and financial data on all aspects of our operations in California. The operational data
includes any plans for turnaround and maintenance activities at our two California refineries and the way we
expect to address the potential impacts on feedstock and product inventories in California as a result of such
turnaround and maintenance activities. The provisions of SBx 1-2 became effective June 26, 2023.
In September 2023, the Governor of the State of California directed the CEC to begin the regulatory
processes concerning (i) potential penalties for exceeding a maximum gross gasoline refining margin and (ii)
the timing of refinery turnarounds and maintenance. Consequently, the CEC adopted an order requiring an
informational proceeding on a maximum gross gasoline refining margin and penalty under SBx 1-2. It also
adopted an order initiating rulemaking activity under SBx 1-2 that will be focused on refinery maintenance and
turnarounds.
37
Following the adoption of SBx 1-2, in October 2024, California adopted Assembly Bill No. 1 (such
statute, together with any regulations contemplated or issued thereunder, “ABx 2-1”) which authorizes the CEC
to consider the effects of refiners’ inventories of fuel and feedstocks and blending components on the price of
transportation fuels in California. The bill further authorizes the CEC, by regulation, to develop and impose
requirements for refiners operating in the state to maintain minimum levels of inventories of refined
transportation fuels meeting California specifications, including any feedstocks and blending components, as
specified. Specifically, the bill provides that the CEC: (i) may establish criteria that refiners must meet before
commencing a turnaround or maintenance event, including requiring California’s petroleum refiners to have
resupply plans and arrangements to cover their loss in production, as specified; (ii) is authorized to develop and
impose requirements on California refiners to maintain minimum levels of inventories of refined transportation
fuels meeting California specifications; (iii) is prohibited from adopting minimum inventory regulations unless
it finds that the benefits outweigh the potential costs to consumers; and (iv) is required to annually re-evaluate
these factors and provide a report to the Legislature concluding whether the regulation meets the cost
effectiveness test.
To the extent that the CEC establishes a maximum gross gasoline refining margin and imposes a
financial penalty for profits above such maximum gross gasoline refining margin, inventory requirements, or
timing of turnaround schedules our financial results and profitability could be adversely affected. Our results of
operations and our financial performance could also be adversely impacted to the extent that restrictions on
turnaround and maintenance activities are imposed by the CEC. We cannot reasonably predict the impact that
the full implementation of SBx 1-2 or ABx 2-1 will have on our California operations or our Company nor can
we predict the impact that similarly focused legislation or actions in other jurisdictions in which we operate our
refineries may have. The recently adopted legislation in California, and the future enactment of similar
legislation in any of the other jurisdictions could adversely impact our business, results of operations,
profitability and cash.
We could incur substantial costs or disruptions in our business if we cannot obtain or maintain necessary
permits and authorizations or otherwise comply with health, safety, environmental and other laws and
regulations.
Our operations require numerous permits and authorizations under various laws and regulations. These
authorizations and permits are subject to revocation, renewal or modification and can require operational
changes to limit impacts or potential impacts on the environment and/or health and safety. A violation of
authorization or permit conditions or other legal or regulatory requirements could result in substantial fines,
criminal sanctions, permit revocations, injunctions, and/or facility shutdowns. In addition, major modifications
of our operations could require modifications to our existing permits or upgrades to our existing pollution
control equipment. Any or all of these matters could have a negative effect on our business, results of operations
and cash flows.
We may incur significant liabilities under, or costs and capital expenditures to comply with, health,
safety, environmental and other laws and regulations, which are complex and change frequently. Our operations
are subject to federal, state and local laws regulating, among other things, the handling of petroleum and other
regulated materials, the emission and discharge of materials into the environment, waste management, and
remediation of discharges of petroleum and petroleum products, characteristics and composition of gasoline and
distillates and other matters otherwise relating to the protection of the environment. Our operations are also
subject to extensive laws and regulations relating to occupational health and safety, in addition to laws and
regulations affecting the transportation of crude oil by rail in North America.
We cannot predict what additional environmental, health and safety legislation or regulations may be
adopted in the future, or how existing or future laws or regulations may be administered or interpreted with
respect to our operations. Many of these laws and regulations are becoming increasingly stringent, and the cost
of compliance with these requirements can be expected to increase over time.
38
Certain environmental laws impose strict, and in certain circumstances joint and several liability for,
costs of investigation and cleanup of such spills, discharges or releases on owners and operators of, as well as
persons who arrange for treatment or disposal of regulated materials at contaminated sites. Under these laws, we
may incur liability or be required to pay penalties for past contamination, and third parties may assert claims
against us for damages allegedly arising out of any past or future contamination. The potential penalties and
clean-up costs for past or future releases or spills, the failure of prior owners of our facilities to complete their
clean-up obligations, the liability to third parties for damage to their property, or the need to address newly-
discovered information or conditions that may require a response could be significant, and the payment of these
amounts could have a material adverse effect on our business, financial condition and results of operations.
A cyber-attack on, or other failure of, our technology infrastructure could affect our business and assets, and
have a material adverse effect on our financial condition, results of operations and cash flows.
We are becoming increasingly dependent on our technology infrastructure and certain critical
information systems which process, transmit and store electronic information, including information we use to
safely and effectively operate our respective assets and businesses. These information systems include data
network and telecommunications, internet access, our websites, and various computer hardware equipment and
software applications, including those that are critical to the safe operation of our refineries and logistics assets.
We have invested, and expect to continue to invest, significant time, manpower and capital in our technology
infrastructure and information systems. These information systems are subject to damage or interruption from a
number of potential sources including natural disasters, software viruses or other malware, power failures,
cybersecurity threats to gain unauthorized access to sensitive information, cyber-attacks, which may render data
systems unusable, and physical threats to the security of our facilities and infrastructure. Additionally, our
business is highly dependent on financial, accounting and other data processing systems and other
communications and information systems, including our enterprise resource planning tools. We process a large
number of transactions on a daily basis and rely upon the proper functioning of computer systems. Furthermore,
we rely on information systems across our respective operations, including the management of supply chain and
various other processes and transactions. As a result, a disruption on any information systems at our refineries
or logistics assets, may cause disruptions to our collective operations.
The potential for such security threats or system failures has subjected our operations to increased risks
that could have a material adverse effect on our business. To the extent that these information systems are under
our control, we have implemented measures such as virus protection software, emergency recovery processes
and a formal disaster recovery plan to address the outlined risks. However, security measures for information
systems cannot be guaranteed to be failsafe, and our formal disaster recovery plan and other implemented
measures may not prevent delays or other complications that could arise from an information systems failure. If
a key system were hacked or otherwise interfered with by an unauthorized user, or were to fail or experience
unscheduled downtime for any reason, even if only for a short period, or any compromise of our data security or
our inability to use or access these information systems at critical points in time, it could unfavorably impact the
timely and efficient operation of our business, damage our reputation and subject us to additional costs and
liabilities. The increase in companies and individuals working remotely has increased the frequency and scope
of cyber-attacks and the risk of potential cybersecurity incidents, both deliberate attacks and unintentional
events. While, to date, we have not had a significant cybersecurity breach or attack that had a material impact on
our business or results of operations, if we were to be subject to a material successful cyber intrusion, it could
result in remediation or service restoration costs, increased cyber protection costs, lost revenues, litigation or
regulatory actions by governmental authorities, increased insurance premiums, reputational damage and damage
to our competitiveness, financial condition, results of operations and cash flows.
39
Cyber-attacks against us or others in our industry could result in additional regulations, and U.S.
government warnings have indicated that infrastructure assets, including pipelines, may be specifically targeted
by certain groups. These attacks include, without limitation, malicious software, ransomware, attempts to gain
unauthorized access to data, and other electronic security breaches. These attacks may be perpetrated by state-
sponsored groups, “hacktivists”, criminal organizations or private individuals (including employee
malfeasance). Efforts by the federal government, including the Strengthening the Cybersecurity of Federal
Networks and Critical Infrastructure executive order, the issuance of new cybersecurity requirements for critical
pipeline owners and operators issued by the Department of Homeland Security’s Transportation Security
Administration following a cyber-attack on a major petroleum pipeline in 2021, and other existing or future
regulations could lead to increased regulatory compliance costs, insurance coverage cost or capital expenditures.
We cannot predict the potential impact to our business or the energy industry resulting from additional
regulations.
Further, our business interruption insurance may not compensate us adequately for losses that may occur.
We do not carry insurance specifically for cybersecurity events; however, certain of our insurance policies may
allow for coverage for a cyber-event resulting in ensuing property damage from an otherwise insured peril. If
we were to incur a significant liability for which we were not fully insured, it could have a material adverse
effect on our financial position, results of operations and cash flows. In addition, the proceeds of any such
insurance may not be paid in a timely manner and may be insufficient if such an event were to occur.
We may not be able to successfully realize the anticipated benefits of our investment in SBR or meet our
obligations to SBR.
On June 27, 2023, together with our partner, Eni, we closed on the jointly held investment in SBR, which
owns the Renewable Diesel Facility. Following its completion, we have certain obligations and liabilities related
to SBR as the construction manager, operator and provider of services. Further, SBR is operated as a separate
entity and we do not fully control its operations. There can be no assurance that we will realize the anticipated
benefits and operating synergies of the Renewable Diesel Facility or the equity method investment. Our
estimates regarding the earnings, operating cash flow, capital expenditures and liabilities resulting from this
investment may prove to be incorrect. This equity method investment involves risks, including:
•
diversion of management time and attention from our existing business;
•
reliance on Eni and their financial condition;
•
risk that Eni does not always share our goals and objectives; and
•
certain obligations that we have to fund capital expenditures relating to this investment.
40
Enhanced scrutiny on ESG matters and developments related to climate change may negatively impact our
business and our access to capital markets.
Enhanced scrutiny on ESG matters may impact our business as it relates to the use of refined products,
climate change, increasing public expectations on companies to address climate change, and potential use of
substitutes or replacements to our products may result in increased costs, reduced demand for our products,
reduced profits, increased regulations and litigation, and adverse impacts on our stock price and access to capital
markets. In addition, organizations that provide information to investors on corporate governance and related
matters have developed ratings for evaluating companies on their approach to ESG matters. Such ratings are
used by some investors to inform and advise their investment and voting decisions. Also, some stakeholders
may advocate for divestment of fossil fuel investments and encourage lenders to limit funding to companies
engaged in the manufacturing of refined products. Unfavorable ESG ratings and investment community
divestment initiatives may lead to negative investor and public sentiment toward the Company and to the
diversion of capital from our industry, which could have a negative impact on our stock price and our access to,
and costs of, capital. This scrutiny, coupled with changes in consumer behavior, attitudes and preferences with
respect to the generation and consumption of energy and the use of fossil fuels, may continue to result in (a) the
enactment of climate change related regulations, policies and initiatives, including alternative energy
requirements, (b) further technological advances related to the generation, storage and consumption of energy
through alternative methods such as wind and solar and (c) increased demand for and/or availability of non-
fossil fuel energy sources and related consumer products such as electric and hybrid vehicles and renewable
power supplies. These developments may also lead to reduced demand for our products, a reduction in our
revenue, higher costs and an overall decrease in our profitability.
Additionally, increased attention and scrutiny regarding climate change has resulted in increased investor
attention and an increased risk of public and private litigation, which could increase our costs and/or otherwise
negatively affect our operations and overall profitability, and cause the market price of our Class A common
stock to decline.
Some of our competitors may have a competitive advantage by providing alternative energy sources or by
owning their own retail sites.
We compete with other companies and industries that may provide alternative means to satisfy fuel and
energy requirements to their customers or own their own retail network. The refining industry is highly
competitive with respect to petroleum product capacity and feedstock supply. We compete with many
companies for available supplies of crude oil and other feedstocks, and for third-party retail outlets for our
refined petroleum products. Such companies that produce alternative energy sources or own their own retail
sites may be better positioned to deal with changes in refining capacity, depressed refining margins or feedstock
shortages.
We may be negatively affected by the rate of inflation and its impact on the global economy.
Current inflation within the economy has resulted in increased interest rates and capital costs, contributed
to supply shortages, increased the cost of living and labor, and other related items. As a result of inflation,
which may continue, including due to tariffs and other trade measures that may be imposed by the new U.S.
presidential administration, we expect to potentially continue to encounter increases in the cost of feedstocks,
labor, materials, and other inputs necessary in the refining of crude oil and other feedstocks. Although we may
take actions to counteract the impacts of inflation, if these actions are not effective it could have a material
adverse effect on our business, results of operations and financial condition. Additionally, higher future inflation
or concerns of a recession could impact the demand for our products and services.
41
We may not be able to obtain funding on acceptable terms or at all, including because of volatility and
uncertainty in the credit and capital markets. This may hinder or prevent us from meeting our future capital
needs.
In the past, global financial markets and economic conditions have been, and may again be, subject to
disruption and volatility due to a variety of factors, including uncertainty in the financial services sector, low
consumer confidence, falling commodity prices, geopolitical issues and generally weak economic conditions. In
addition, the fixed income and bank markets could experience periods of extreme volatility or stress that may
negatively impact market liquidity conditions. As a result, the cost of raising money in the debt and equity
capital markets could increase substantially at times while the availability of funds from those markets
diminishes significantly. In particular, as a result of concerns about the stability of financial markets generally,
which may be subject to unforeseen disruptions, the cost of obtaining money from the credit markets may
increase as many lenders and institutional investors increase interest rates, enact tighter lending standards,
refuse to refinance existing debt on similar terms or at all and reduce or, in some cases, cease to provide funding
to borrowers. Due to these factors, we cannot be certain that new debt or equity financing will be available on
acceptable terms. If funding is not available when needed, or is available only on unfavorable terms, we may be
unable to meet our obligations as they come due. Moreover, without adequate funding, we may be unable to
execute our business strategy, complete future acquisitions or growth projects, take advantage of other business
opportunities or respond to competitive pressures, any of which could have a material adverse effect on our
revenues and results of operations.
Any political instability, military strikes, sustained military campaigns, terrorist activity, changes in foreign
policy, or other catastrophic events could have a material adverse effect on our business, results of
operations and financial condition.
U.S. and global markets have experienced volatility and disruption following the escalation of
geopolitical tensions and Russia’s military action in Ukraine since February 2022, armed hostilities in the
middle east and disruptions in international shipping resulting from attacks by armed groups on cargo ships.
Although the length and impact of these ongoing military conflicts is highly unpredictable, these wars have led
to market disruptions, including significant volatility in the financial markets and the global macroeconomic and
geopolitical environment. Furthermore, a protracted conflict between Ukraine and Russia, or any escalation of
this conflict, may result in additional financial and economic sanctions and import and/or export controls
imposed on Russia by the United States, the UK, the EU, Canada and others, such as the United States ban on
import of Russian oil effective March 8, 2022 and the EU ban on oil products from Russia effective February 5,
2023, which may have adverse impacts on the wider global economy and market conditions and could, in turn,
have a material adverse impact on our business, financial condition, cash flows and results of operations and
could cause the market value of PBF Energy’s Class A common stock to decline.
Any further political instability, military strikes, sustained military campaigns, terrorist activity, changes
in foreign policy in areas or regions of the world where we acquire crude oil and other raw materials or sell our
refined products may affect our business in unpredictable ways, including forcing us to increase security
measures and causing disruptions of supplies and distribution markets. We may also be subject to United States
trade and economic sanctions laws, which change frequently as a result of foreign policy developments, and
which may necessitate changes to our crude oil acquisition activities. Further, like other industrial companies,
our facilities may be the target of terrorist activities or subject to catastrophic events such as natural disasters
and pandemic illness. Any act of war, terrorism, or other catastrophic events that resulted in damage to, or
otherwise disrupts the operating activities of, any of our refineries or third-party facilities upon which we are
dependent for our business operations could have a material adverse effect on our business, results of operations
and financial condition.
42
Competition from companies that produce their own supply of feedstocks, have extensive retail outlets, make
alternative fuels or have greater financial and other resources than we do, could materially and adversely
affect our business and results of operations.
Our refining operations compete with domestic refiners and marketers in regions of the United States in
which we operate, as well as with domestic refiners in other regions and foreign refiners that import products
into the United States. In addition, we compete with other refiners, producers and marketers in other industries
that provide means to satisfy the energy and fuel requirements of our industrial, commercial and individual
consumers. Certain of our competitors have larger and more complex refineries, and may be able to realize
lower per-barrel costs or higher margins per barrel of throughput. Several of our principal competitors are
integrated national or international oil companies that are larger and have substantially greater resources than
we do and access to proprietary sources of controlled crude oil production. Unlike these competitors, we obtain
substantially all of our feedstocks from unaffiliated sources. We are not engaged in the petroleum exploration
and production business and therefore do not produce any of our crude oil feedstocks. We do not have a retail
business and therefore are dependent upon others for outlets for our refined products. Because of their
integrated operations and larger capitalization, these companies may be more flexible in responding to volatile
industry or market conditions, such as shortages of crude oil supply and other feedstocks or intense price
fluctuations and they may also be able to obtain more favorable trade credit terms.
Newer or upgraded refineries will often be more efficient than our refineries, which may put us at a
competitive disadvantage. We have taken significant measures to maintain our refineries including the
installation of new equipment and redesigning older equipment to improve our operations. However, these
actions involve significant uncertainties, since upgraded equipment may not perform at expected throughput
levels, the yield and product quality of new equipment may differ from design specifications and modifications
may be needed to correct equipment that does not perform as expected. Any of these risks associated with new
equipment, redesigned older equipment or repaired equipment could lead to lower revenues or higher costs or
otherwise have an adverse effect on future results of operations and financial condition. Over time, our
refineries or certain refinery units may become obsolete, or be unable to compete, because of the construction of
new, more efficient facilities by our competitors.
We must make substantial capital expenditures on our operating facilities to maintain their reliability and
efficiency. If we are unable to complete capital projects at their expected costs and/or in a timely manner, or
if the market conditions assumed in our project economics deteriorate, our financial condition, results of
operations or cash flows could be materially and adversely affected.
Delays or cost increases related to capital spending programs involving engineering, procurement and
construction of new facilities (or improvements and repairs to our existing facilities and equipment, including
turnarounds) could adversely affect our ability to achieve targeted internal rates of return and operating results.
Such delays or cost increases may arise as a result of unpredictable factors in the marketplace, many of which
are beyond our control, including:
•
denial or delay in obtaining regulatory approvals and/or permits;
•
unplanned increases in the cost of construction materials or labor;
•
disruptions in transportation of modular components and/or construction materials;
•
severe adverse weather conditions, natural disasters, wildfires or other events (such as equipment
malfunctions, explosions, fires or spills) affecting our facilities, or those of vendors and suppliers;
•
shortages of sufficiently skilled labor, or labor disagreements resulting in unplanned work stoppages;
•
market-related increases in a project’s debt or equity financing costs; and/or
•
non-performance or force majeure by, or disputes with, vendors, suppliers, contractors or sub-
contractors involved with a project.
43
Our refineries contain many processing units, a number of which have been in operation for many years.
Equipment, even if properly maintained, may require significant capital expenditures and expenses to keep it
operating at optimum efficiency. One or more of the units may require unscheduled downtime for unanticipated
maintenance or repairs that are more frequent than our scheduled turnarounds for such units. Scheduled and
unscheduled maintenance could reduce our revenues during the period of time that the units are not operating.
Our forecasted internal rates of return are also based upon our projections of future market fundamentals,
which are not within our control, including changes in general economic conditions, inflation, slow growth,
recession, impact of new regulations, available alternative supply and customer demand. Any one or more of
these factors could have a significant impact on our business. If we were unable to make up the delays
associated with such factors or to recover the related costs, or if market conditions change, it could materially
and adversely affect our financial position, results of operations or cash flows.
We are subject to strict laws and regulations regarding employee and process safety, and failure to comply
with these laws and regulations could have a material adverse effect on our results of operations, financial
condition and profitability.
We are subject to the requirements of the OSHA, and comparable state statutes that regulate the
protection of the health and safety of workers. In addition, OSHA requires that we maintain information about
hazardous materials used or produced in our operations and that we provide this information to employees, state
and local governmental authorities, and local residents. Failure to comply with OSHA requirements, including
general industry standards, process safety standards and control of occupational exposure to regulated
substances, could result in claims against us that could have a material adverse effect on our results of
operations, financial condition and the cash flows of the business if we are subjected to significant fines or
compliance costs.
Product liability and operational liability claims and litigation could adversely affect our business and results
of operations.
Product liability and liability arising from our operations are significant risks. Substantial damage awards
have been made in certain jurisdictions against manufacturers and resellers of petroleum products based upon
claims for injuries and property damage caused by the use of or exposure to various products. Failure of our
products to meet required specifications or claims that a product is inherently defective could result in product
liability claims from third parties, including our shippers and customers, and also arise from contaminated or
off-specification product in commingled pipelines and storage tanks and/or defective fuels. We may also be
subject to personal injury claims arising from incidents that occur in connection with or relating to our
operations. Product liability and personal injury claims against us could have a material adverse effect on our
business, financial condition or results of operations.
Compliance with and changes in tax laws could adversely affect our performance.
We are subject to extensive tax liabilities, including federal, state, local and foreign taxes such as income,
excise, sales/use, payroll, franchise, property, gross receipts, withholding and ad valorem taxes. New tax laws
and regulations and changes in existing tax laws and regulations, such as the IRA, are continuously being
enacted or proposed and could result in increased expenditures for tax liabilities in the future. These liabilities
are subject to periodic audits by the respective taxing authorities, which could increase our tax liabilities.
Subsequent changes to our tax liabilities as a result of these audits may also subject us to interest and penalties.
There can be no certainty that our federal, state, local or foreign taxes could be passed on to our customers.
44
Acquisitions or other investments that we may undertake in the future involve a number of risks, any of
which could cause us not to realize the anticipated benefits.
We may not be successful in acquiring additional assets or making investments in new business, and any
acquisitions or other investments that we do consummate may not produce the anticipated benefits or may have
adverse effects on our business and operating results. We may selectively consider strategic acquisitions and
other investments in the future within the refining, mid-stream and renewable diesel or alternative energy
sectors based on performance through the cycle, advantageous access to crude oil supplies, attractive refined
products market fundamentals and access to distribution and logistics infrastructure. For example, we are part of
Mid-Atlantic Clean Hydrogen Hub (“MACH2”), a broad consortium exploring the development of a clean
energy and logistics hub on 2,500 acres adjacent to our Delaware City refinery, that was selected by the
Department of Energy to receive up to $750.0 million to advance the development of a clean hydrogen
production and distribution hub. In connection with MACH2, we are considering investments in renewable
electricity, green hydrogen production, development of 10 million square feet of distribution warehouses and
office space, and hydrogen fueling facilities for a large fleet of medium duty trucks. Our ability to acquire
additional assets or invest in new businesses will be dependent upon a number of factors, including our ability
to identify acceptable acquisition or investment opportunities, consummate acquisitions or other investments on
acceptable terms, successfully integrate acquired assets and obtain financing to fund acquisitions and to support
our growth and many other factors beyond our control. Risks associated with acquisitions and other investments
include those relating to the diversion of management time and attention from our existing business, liability for
known or unknown environmental conditions or other contingent liabilities and greater than anticipated
expenditures required for compliance with environmental, safety or other regulatory standards or for
investments to improve operating results, and the incurrence of additional indebtedness to finance acquisitions
or capital expenditures relating to acquired assets. We may also enter into transition services agreements in the
future with sellers of any additional refineries we acquire or otherwise invest in. Such services may not be
performed timely and effectively, and any significant disruption in such transition services or unanticipated
costs related to such services could adversely affect our business and results of operations. In addition, it is
likely that, when we acquire or otherwise invest in refineries, we will not have access to the type of historical
financial information that we will require regarding the prior operation of the refineries. As a result, it may be
difficult for investors to evaluate the probable impact of significant acquisitions or other investments on our
financial performance until we have operated the acquired refineries for a substantial period of time.
A portion of our workforce is unionized, and we may face labor disruptions that would interfere with our
operations.
Most hourly employees at our refineries are covered by collective bargaining agreements through the
USW, the IOW and the IBEW. These agreements are scheduled to expire on various dates in 2026 through 2028
(See “Item 1. Business” - Employees). Future negotiations prior to the expiration of our collective agreements
may result in labor unrest for which a strike or work stoppage is possible. Strikes and/or work stoppages could
negatively affect our operational and financial results and may increase operating expenses at the refineries.
Our business may suffer if any of our senior executives or other key employees discontinues employment
with us. Furthermore, a shortage of skilled labor or disruptions in our labor force may make it difficult for
us to maintain labor productivity.
Our future success depends to a large extent on the services of our senior executives and other key
employees. Our business depends on our continuing ability to recruit, train and retain highly qualified
employees in all areas of our operations, including engineering, accounting, business operations, finance and
other key back-office and mid-office personnel. Furthermore, our operations require skilled and experienced
employees with proficiency in multiple tasks. The competition for these employees is intense, and the loss of
these executives or employees could harm our business. If any of these executives or other key personnel
resigns or becomes unable to continue in his or her present role and is not adequately replaced, our business
operations could be materially adversely affected.
45
Our hedging activities may limit our potential gains, exacerbate potential losses and involve other risks.
We may enter into commodity derivatives contracts to hedge our crude price risk or crack spread risk
with respect to a portion of our expected gasoline and distillate production on a rolling basis or to hedge our
exposure to the price of natural gas, which is a significant component of our refinery operating expenses.
Consistent with that policy we may hedge some percentage of our future crude and natural gas supply. We may
enter into hedging arrangements with the intent to secure a minimum fixed cash flow stream on the volume of
products hedged during the hedge term and to protect against volatility in commodity prices. Our hedging
arrangements may fail to fully achieve these objectives for a variety of reasons, including our failure to have
adequate hedging arrangements, if any, in effect at any particular time and the failure of our hedging
arrangements to produce the anticipated results. We may not be able to procure adequate hedging arrangements
due to a variety of factors. Moreover, such transactions may limit our ability to benefit from favorable changes
in crude oil, refined product and natural gas prices.
In addition, our hedging activities may expose us to the risk of financial loss in certain circumstances,
including instances in which:
•
the volumes of our actual use of crude oil or natural gas or production of the applicable refined products
is less than the volumes subject to the hedging arrangement;
•
accidents, interruptions in feedstock transportation, inclement weather or other events cause
unscheduled shutdowns or otherwise adversely affect our refineries, or those of our suppliers or
customers;
•
changes in commodity prices have a material impact on collateral and margin requirements under our
hedging arrangements, resulting in us being subject to margin calls;
•
the counterparties to our derivative contracts fail to perform under the contracts; or
•
a sudden, unexpected event materially impacts the commodity or crack spread subject to the hedging
arrangement.
As a result, the effectiveness of our hedging strategy could have a material impact on our financial
results. See “Item 7A. Quantitative and Qualitative Disclosures About Market Risk.”
In addition, these hedging activities involve basis risk. Basis risk in a hedging arrangement occurs when
the price of the commodity we hedge is more or less variable than the index upon which the hedged commodity
is based, thereby making the hedge less effective. For example, a New York Mercantile Exchange index used
for hedging certain volumes of our crude oil or refined products may have more or less variability than the
actual cost or price we realize for such crude oil or refined products. We may not hedge all the basis risk
inherent in our hedging arrangements and derivative contracts.
Our commodity derivative activities could result in period-to-period earnings volatility.
We do not currently apply hedge accounting to any of our commodity derivative contracts and, as a
result, unrealized gains and losses will be charged to our earnings based on the increase or decrease in the
market value of such unsettled positions. These gains and losses may be reflected in our income statement in
periods that differ from when the settlements of the underlying hedged items are reflected in our income
statement. Such derivative gains or losses in earnings may produce significant period-to-period earnings
volatility that is not necessarily reflective of our underlying operational performance.
46
Risks Related to Our Indebtedness
Our indebtedness could adversely affect our financial condition and prevent us from fulfilling our
obligations under our indebtedness.
Our indebtedness may significantly affect our financial flexibility in the future. As of December 31,
2024, we have total debt of $1,498.9 million, excluding unamortized deferred debt issuance costs of $41.6
million, and we could incur additional borrowings under PBF Holding’s asset-based revolving credit facility
(the “Revolving Credit Facility”). We may incur additional indebtedness in the future including additional
secured indebtedness, subject to the satisfaction of any debt incurrence and, if applicable, lien incurrence
limitation covenants in our existing financing agreements.
The level of our indebtedness has several important consequences for our future operations, including
that:
•
a portion of our cash flow from operations will be dedicated to the payment of principal of, and interest
on, our indebtedness and will not be available for other purposes;
•
under certain circumstances, covenants contained in our existing debt arrangements limit our ability to
borrow additional funds, dispose of assets and make certain investments;
•
in certain circumstances these covenants also require us to meet or maintain certain financial tests,
which may affect our flexibility in planning for, and reacting to, changes in our industry, such as being
able to take advantage of acquisition opportunities when they arise;
•
our ability to obtain additional financing for working capital, capital expenditures, acquisitions, general
corporate and other purposes may be limited; and
•
we may be at a competitive disadvantage to those of our competitors that are less leveraged; and we
may be more vulnerable to adverse economic and industry conditions.
Our indebtedness increases the risk that we may default on our debt obligations, certain of which contain
cross-default and/or cross-acceleration provisions. Our, and our subsidiaries’, ability to meet future principal
obligations will be dependent upon our future performance, which in turn will be subject to general economic
conditions, industry cycles and financial, business and other factors affecting our operations, many of which are
beyond our control. Our business may not continue to generate sufficient cash flow from operations to repay our
indebtedness. If we are unable to generate sufficient cash flow from operations, we may be required to sell
assets, to refinance all or a portion of our indebtedness or to obtain additional financing. Refinancing may not
be possible and additional financing may not be available on commercially acceptable terms, or at all.
We may not be able to secure necessary financing on acceptable terms, or at all.
We currently have notes outstanding with maturity dates in 2028 and 2030. Additionally, our Revolving
Credit Facility matures in 2028. We can make no assurance that we will be able to refinance these agreements
on acceptable terms prior to their maturity dates. Market disruptions or other credit factors, such as rising
inflation and higher interest rates, may increase our cost of borrowing or adversely affect our ability to refinance
our obligations as they become due. Further, ESG concerns and other pressures on the oil and gas industry
could lead to increased costs of financing or limit our access to the capital markets. If we are unable to refinance
our indebtedness or access additional credit, or if short-term or long-term borrowing costs significantly increase,
our ability to finance current operations and meet our short-term and long-term obligations could be adversely
affected.
47
Despite our level of indebtedness, we and our subsidiaries may be able to incur substantially more debt,
which could exacerbate the risks described above.
We and our subsidiaries are able to incur additional indebtedness in the future including additional
secured or unsecured debt. Although our debt instruments contain restrictions on the incurrence of additional
indebtedness, these restrictions are subject to a number of qualifications and exceptions, and the indebtedness
incurred in compliance with these restrictions could be substantial. To the extent new debt is added to our
current debt levels, the leverage risks described above would increase. Also, these restrictions do not prevent us
from incurring obligations that do not constitute indebtedness.
Our future credit ratings could adversely affect our business, the cost of our borrowing, and our ability to
obtain credit in the future.
Changes in our credit profile could affect the way crude oil and other suppliers view our ability to make
payments and induce them to shorten the payment terms for our purchases or require us to post security or
letters of credit prior to payment. Due to the large dollar amounts and volume of our crude oil and other
feedstock purchases, any imposition by these suppliers of more burdensome payment terms on us may have a
material adverse effect on our liquidity and our ability to make payments to our suppliers. This, in turn, could
reduce our access to supply and cause us to be unable to operate one or more of our refineries at full capacity.
The 6.0% senior unsecured notes due 2028 (the “2028 Senior Notes”) and the 7.875% senior unsecured
notes due 2030 (the “2030 Senior Notes”) are rated Ba3 by Moody’s, BB by S&P, and BB by Fitch. Any
adverse changes in our credit ratings may negatively impact the terms of credit we receive from our suppliers
and our requirements to prepay or post collateral. Additionally, adverse actions taken by the rating agencies on
our corporate credit rating or the rating of our notes may increase our cost of borrowings or hinder our ability to
raise financing in the capital markets or have an unfavorable impact on the credit terms we have with our
suppliers, which could impair our ability to grow our business, maintain adequate levels of liquidity and make
cash distributions to our shareholders.
Restrictive covenants in our debt instruments, including the indentures governing our notes, may limit our
ability to undertake certain types of transactions, which could adversely affect our business, financial
condition, results of operations and our ability to service our indebtedness.
Various covenants in our current and future debt instruments and other financing arrangements, including
the indentures governing our notes, may restrict our and our subsidiaries’ financial flexibility in a number of
ways. Our current indebtedness and the indentures that govern our notes subject us to significant financial and
other restrictive covenants, including restrictions on our ability to incur additional indebtedness, place liens
upon assets, pay dividends or make certain other restricted payments and investments, consummate certain asset
sales or asset swaps, conduct businesses other than our current businesses, or sell, assign, transfer, lease, convey
or otherwise dispose of all or substantially all of our assets. Some of our debt instruments also require our
subsidiaries to satisfy or maintain certain financial condition tests in certain circumstances. Our ability to meet
these financial condition tests can be affected by events beyond our control and we may not meet such tests in
the future. In addition, a failure to comply with the provisions of our existing debt could result in an event of
default that could enable our lenders, subject to the terms and conditions of such debt, to declare the outstanding
principal, together with accrued interest, to be immediately due and payable. Events beyond our control may
affect our ability to comply with our covenants. If we were unable to repay the accelerated amounts, our lenders
could proceed against the collateral granted to them to secure such debt. If the payment of our debt is
accelerated, defaults under our other debt instruments, if any, may be triggered, and our assets may be
insufficient to repay such debt in full.
48
Provisions in our indentures and other agreements could discourage an acquisition of us by a third-party.
Certain provisions of our indentures could make it more difficult or more expensive for a third-party to
acquire us. Upon the occurrence of certain transactions constituting a “change of control” as described in the
indentures governing the 2028 Senior Notes and the 2030 Senior Notes, holders of our notes could require us to
repurchase all outstanding notes at 101% of the principal amount thereof, plus accrued and unpaid interest, if
any, at the date of repurchase. Certain other significant agreements of ours such as the agreement governing the
Revolving Credit Facility (the “Revolving Credit Agreement”) and the Tax Receivable Agreement (as defined
below) also contain provisions related to a change in control that could make it more difficult or expensive for a
third-party to acquire us.
Risks Related to Our Organizational Structure and PBF Energy Class A Common Stock
PBF Energy is the managing member of PBF LLC and its only material asset is its interest in PBF LLC.
Accordingly, PBF Energy depends upon distributions from PBF LLC and its subsidiaries to pay its taxes,
meet its other obligations and/or pay dividends in the future.
PBF Energy is a holding company, and all of its operations are conducted through subsidiaries of PBF
LLC. PBF Energy has no independent means of generating revenue and no material assets other than its
ownership interest in PBF LLC. We depend on the earnings and cash flow of our subsidiaries to meet our
obligations, including our indebtedness, tax liabilities and obligations to make payments under a tax receivable
agreement entered into with PBF LLC Series A and PBF LLC Series B unitholders (the “Tax Receivable
Agreement”). If we do not receive such cash distributions, dividends or other payments from our subsidiaries,
we may be unable to meet our obligations and/or pay dividends.
PBF Energy, as the sole managing partner of PBF LLC, may cause PBF LLC to make distributions to its
members in an amount sufficient to enable PBF Energy to cover all applicable taxes at assumed tax rates, to
make payments owed by PBF Energy under the Tax Receivable Agreement, and to pay other obligations and
dividends, if any, declared by PBF Energy. To the extent we need funds and any of our subsidiaries is restricted
from making such distributions under applicable law or regulation or under the terms of our financing or other
contractual arrangements, or is otherwise unable to provide such funds, such restrictions could materially
adversely affect our liquidity and financial condition.
The Revolving Credit Facility, the 2028 Senior Notes, the 2030 Senior Notes, and certain of our other
outstanding debt arrangements include a restricted payment covenant, which restricts the ability of PBF Holding
to make distributions to us, and we anticipate our future debt will contain a similar restriction. In addition, there
may be restrictions on payments by our subsidiaries under applicable laws, including laws that require
companies to maintain minimum amounts of capital and to make payments to stockholders only from profits.
For example, PBF Holding is generally prohibited under Delaware law from making a distribution to a member
to the extent that, at the time of the distribution, after giving effect to the distribution, liabilities of the limited
liability company (with certain exceptions) exceed the fair value of its assets. As a result, we may be unable to
obtain that cash to satisfy our obligations and make payments to PBF Energy stockholders, if any.
The rights of other members of PBF LLC may conflict with the interests of PBF Energy Class A common
stockholders.
The interests of the other members of PBF LLC, which include current and former directors and officers,
may not in all cases be aligned with PBF Energy Class A common stockholders’ interests. For example, these
members may have different tax positions that could influence their positions, including regarding whether and
when we dispose of assets and whether and when we incur new or refinance existing indebtedness, especially in
light of the existence of the Tax Receivable Agreement. In addition, the structuring of future transactions may
take into consideration these tax or other considerations even where no similar benefit would accrue to PBF
Energy Class A common stockholders or us. See “Certain Relationships and Related Transactions—IPO
Related Agreements” in our 2025 Proxy Statement incorporated herein by reference.
49
Under the Tax Receivable Agreement, PBF Energy is required to pay the former and current holders of PBF
LLC Series A Units and PBF LLC Series B Units, or other permitted assignees, for certain realized or
assumed tax benefits PBF Energy may claim arising in connection with prior offerings and future exchanges
of PBF LLC Series A Units for shares of its Class A common stock and related transactions. The indentures
governing the senior notes allow PBF LLC, under certain circumstances, to make distributions sufficient for
PBF Energy to pay its obligation under the Tax Receivable Agreement.
PBF Energy is party to a Tax Receivable Agreement that provides for the payment from time to time by
PBF Energy to the current and former holders of PBF LLC Series A Units and PBF LLC Series B Units, or
other permitted assignees, of 85% of the benefits, if any, that PBF Energy is deemed to realize as a result of
(i) the increases in tax basis resulting from its acquisitions of PBF LLC Series A Units, including such
acquisitions in connection with its prior offerings or in the future and (ii) certain other tax benefits related to its
entering into the Tax Receivable Agreement, including tax benefits attributable to payments under the Tax
Receivable Agreement. See “Item 13. Certain Relationships and Related Transactions, and Director
Independence.”
PBF Energy has recognized, as of December 31, 2024, a total liability for the Tax Receivable Agreement
of $293.6 million, of which $125.4 million is recorded as a current liability and was paid in January 2025
related to the 2023 tax year. As future taxable income is recorded, increases in our Tax Receivable Agreement
liability may be necessary in conjunction with the revaluation of deferred tax assets. If PBF Energy does not
have taxable income, PBF Energy generally is not required (absent a change of control or circumstances
requiring an early termination payment) to make payments under the Tax Receivable Agreement for that taxable
year because no benefit will have been actually realized. However, any tax benefits that do not result in realized
benefits in a given tax year will likely generate tax attributes that may be utilized to generate benefits in
previous or future tax years. The utilization of such tax attributes will result in payments under the Tax
Receivable Agreement. The foregoing are merely estimates based on assumptions that are subject to change due
to various factors, including, among other factors, the timing of exchanges of PBF LLC Series A Units for
shares of PBF Energy Class A common stock as contemplated by the Tax Receivable Agreement, the price of
PBF Energy Class A common stock at the time of such exchanges, the extent to which such exchanges are
taxable, and the amount and timing of PBF Energy’s income. The actual payments under the Tax Receivable
Agreement could differ materially. It is possible that future transactions or events could increase the actual tax
benefits realized and the corresponding Tax Receivable Agreement payments. There may be a material negative
effect on our liquidity if, as a result of timing discrepancies or otherwise, (i) the payments under the Tax
Receivable Agreement exceed the actual benefits PBF Energy realizes in respect of the tax attributes subject to
the Tax Receivable Agreement, and/or (ii) distributions to PBF Energy by PBF LLC are not sufficient to permit
PBF Energy, after it has paid its taxes and other obligations, to make payments under the Tax Receivable
Agreement. The payments under the Tax Receivable Agreement are not conditioned upon any recipient’s
continued ownership of us.
In certain cases, payments by PBF Energy under the Tax Receivable Agreement may be accelerated and/or
significantly exceed the actual benefits it realizes in respect of the tax attributes subject to the Tax Receivable
Agreement. These provisions may deter a change in control of the Company.
The Tax Receivable Agreement provides that upon certain changes of control, or if, at any time, PBF
Energy elects an early termination of the Tax Receivable Agreement, PBF Energy’s (or its successor’s)
obligations with respect to exchanged or acquired PBF LLC Series A Units (whether exchanged or acquired
before or after such transaction) would be based on certain assumptions, including (i) that PBF Energy would
have sufficient taxable income to fully utilize the deductions arising from the increased tax deductions and tax
basis and other benefits related to entering into the Tax Receivable Agreement and (ii) that the subsidiaries of
PBF LLC will sell certain nonamortizable assets (and realize certain related tax benefits) no later than a
specified date. Moreover, in each of these instances, PBF Energy would be required to make an immediate
payment equal to the present value (at a discount rate equal to LIBOR plus 100 basis points) of the anticipated
future tax benefits (based on the foregoing assumptions).
50
Accordingly, payments under the Tax Receivable Agreement may be made years in advance of the actual
realization, if any, of the anticipated future tax benefits and may be significantly greater than the actual benefits
PBF Energy realizes in respect of the tax attributes subject to the Tax Receivable Agreement. In these
situations, PBF Energy’s obligations under the Tax Receivable Agreement could have a substantial negative
impact on our liquidity. PBF Energy may not be able to finance its obligations under the Tax Receivable
Agreement and its existing indebtedness may limit its subsidiaries’ ability to make distributions to PBF Energy
to pay these obligations. In the case of certain changes of control, payments under the Tax Receivable
Agreement will be accelerated and may significantly exceed the actual benefits we realize in respect of the tax
attributes subject to the Tax Receivable Agreement. We expect that the payments that we may make under the
Tax Receivable Agreement in the event of a change of control will be substantial. As a result, our accelerated
payment obligations and/or the assumptions adopted under the Tax Receivable Agreement in the case of a
change of control may deter a potential sale of our Company to a third-party and may otherwise make it less
likely that a third-party would enter into a change of control transaction with us or negatively impact the value
received by owners of our Class A common stock in a change of control transaction.
Moreover, payments under the Tax Receivable Agreement will be based on the tax reporting positions
that PBF Energy determines in accordance with the Tax Receivable Agreement. PBF Energy will not be
reimbursed for any payments previously made under the Tax Receivable Agreement if the IRS subsequently
disallows part or all of the tax benefits that gave rise to such prior payments. As a result, in certain
circumstances, payments could be made under the Tax Receivable Agreement that are significantly in excess of
the benefits that PBF Energy actually realized in respect of (i) the increases in tax basis resulting from our
purchases or exchanges of PBF LLC Series A Units and (ii) certain other tax benefits related to PBF Energy
entering into the Tax Receivable Agreement, including tax benefits attributable to payments under the Tax
Receivable Agreement.
PBF Energy cannot assure you that it will continue to declare dividends or have the available cash to make
dividend payments.
Although PBF Energy currently intends to continue to pay quarterly cash dividends on its Class A
common stock, the declaration, amount and payment of any dividends will be at the sole discretion of our Board
of Directors. PBF Energy is not obligated under any applicable laws, its governing documents or any
contractual agreements with its existing and prior owners or otherwise to declare or pay any dividends or other
distributions (other than the obligations of PBF LLC to make tax distributions to its members). Our Board of
Directors may take into account, among other things, general economic conditions, our financial condition and
operating results, our available cash and current and anticipated cash needs, capital requirements, plans for
expansion, including acquisitions, tax, legal, regulatory and contractual restrictions and implications, including
under our subsidiaries’ outstanding debt documents, and such other factors as our Board of Directors may deem
relevant in determining whether to declare or pay any dividend. Because PBF Energy is a holding company
with no material assets (other than the equity interests of its direct subsidiary), its cash flow and ability to pay
dividends is dependent upon the financial results and cash flows of its indirect subsidiaries PBF Holding and
PBFX and their respective operating subsidiaries and the distribution or other payment of cash to it in the form
of dividends or otherwise. The direct and indirect subsidiaries of PBF Energy are separate and distinct legal
entities and have no obligation to make any funds available to it other than in the case of certain intercompany
transactions. As a result, if PBF Energy does not declare or pay dividends you may not receive any return on an
investment in PBF Energy Class A common stock unless you sell PBF Energy Class A common stock for a
price greater than that which you paid for it.
51
Anti-takeover and certain other provisions in our certificate of incorporation and bylaws and Delaware law
may discourage or delay a change in control.
Our certificate of incorporation and bylaws contain provisions that could make it more difficult for
stockholders to effect certain corporate actions. Among other things, these provisions:
•
authorize the issuance of undesignated preferred stock, the terms of which may be established and the
shares of which may be issued without stockholder approval;
•
prohibit stockholder action by written consent;
•
restrict certain business combinations with stockholders who obtain beneficial ownership of a certain
percentage of our outstanding common stock;
•
provide that special meetings of stockholders may be called only by the chairman of the Board of
Directors, the chief executive officer or the Board of Directors, and establish advance notice procedures
for the nomination of candidates for election as directors or for proposing matters that can be acted upon
at stockholder meetings; and
•
provide that our stockholders may only amend our bylaws with the approval of 75% or more of all of
the outstanding shares of our capital stock entitled to vote.
These anti-takeover provisions and other provisions of Delaware law may have the effect of delaying or
deterring a change of control of our Company. Certain provisions could also discourage proxy contests and
make it more difficult for you and other stockholders to elect directors of your choosing and to cause us to take
other corporate actions you desire. These provisions could limit the price that certain investors might be willing
to pay in the future for shares of PBF Energy Class A common stock.
The market price of PBF Energy Class A common stock may be volatile, and you could lose all or part of
your investment.
The market price of PBF Energy Class A common stock has in the past been and may continue to be
highly volatile and subject to wide fluctuations due to a number of factors including:
•
market conditions in the oil refining industry and volatility in commodity prices;
•
changes in, or failure to meet, earnings estimates of securities analysts;
•
variations in actual or anticipated operating results or dividends, if any, to stockholders;
•
the impact of disruptions to crude or feedstock supply to any of our refineries or our Renewable Diesel
Facility, including disruptions due to problems with third-party logistics infrastructure;
•
litigation and government investigations;
•
the timing and announcement of any potential acquisitions or divestitures and subsequent impact of
any future acquisitions or divestitures on our capital structure, financial condition or results of
operations;
•
changes or proposed changes in laws or regulations or differing interpretations or enforcement thereof;
•
general economic and stock market conditions; and
•
the availability for sale, or sales by PBF Energy or its senior management, of a significant number of
shares of its Class A common stock in the public market.
52
In recent years, the stock market in general, and the market for energy companies in particular, has
experienced significant price and volume fluctuations that have often been unrelated or disproportionate to the
operating performance of those companies. This volatility has had a significant impact on the market price of
securities issued by many companies, including companies in our industry. In addition, the stock markets
generally may experience significant volatility, often unrelated to the operating performance of the individual
companies whose securities are publicly-traded. These and other factors may cause the market price of PBF
Energy Class A common stock to decrease significantly, which in turn would adversely affect the value of your
investment.
In the past, following periods of volatility in the market price of a company’s securities, stockholders
have often instituted class action securities litigation against those companies. Such litigation, if instituted,
could result in substantial costs and a diversion of management’s attention and resources, which could
significantly harm our profitability and reputation.
Our current stockholders could experience dilution, which could further depress the price of our Class A
common stock.
We continue to require substantial working capital to fund our business. We may sell equity securities or
convertible securities or other derivative securities in the public or private markets to assist in funding our
capital needs even when conditions or terms are not otherwise favorable, including at prices at or below the then
current market price of our shares of Class A common stock. As a result, stockholders may experience
substantial dilution, and the market price of our Class A common stock could decline as a result of the
introduction of a large number of shares of our Class A common stock, or securities convertible into or
exchangeable or exercisable for our Class A common stock, into the market or the perception that these sales
could occur. Sales of a large number of shares of our Class A common stock, or securities convertible into or
exchangeable or exercisable for our Class A common stock, or the possibility that these sales may occur, also
might make it more difficult for us to sell equity securities in the future at a time and at a price that we deem
appropriate. In addition, any equity securities we issue may have rights, preferences or privileges senior to those
of our Class A common stock, and our current debt agreements contain, and any agreements for future debt or
preferred equity financings, if available, are likely to contain, covenants limiting or restricting our ability to take
specific actions, such as incurring additional debt. Holders of Class A common stock are not entitled to
preemptive rights or other protections against dilution. Because our decision to issue securities in any future
offering will depend on our capital needs as well as market conditions and other factors beyond our control, we
cannot predict or estimate the amount, timing, nature or impact of future issuances, if any. Our Class A common
stockholders bear the risk of our future offerings reducing the per share market price of our Class A common
stock.
PBF Energy will be required to pay taxes on its share of taxable income from PBF LLC and its other
subsidiary flow-through entities, regardless of the amount of cash distributions PBF Energy receives from
PBF LLC.
The holders of limited liability company interests in PBF LLC, including PBF Energy, generally have to
include for purposes of calculating their U.S. federal, state and local income taxes their share of any taxable
income of PBF LLC, regardless of whether such holders receive cash distributions from PBF LLC. PBF Energy
ultimately may not receive cash distributions from PBF LLC equal to its share of the taxable income of PBF
LLC or even equal to the actual tax due with respect to that income.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
53
ITEM 1C. CYBERSECURITY
Cybersecurity risk management and strategy
Our cybersecurity risk management program is managed by our current Chief Information Officer (“CIO”) who
reports to our Chief Financial Officer and provides regular updates to the Board. Our CIO establishes our
overall Information Technology (“IT”) security strategy, oversees our information, cyber, and technology
security and manages our IT department, which includes our Cybersecurity team. His responsibilities include
developing, implementing, and enforcing security policies to protect critical data. The head of our Cybersecurity
team, our Director of Information Security, who reports to our CIO, runs the day-to-day management of our
cybersecurity risks. Our IT department overall assists in implementing cybersecurity strategies and policies
under the direction of the Cybersecurity team, as applicable.
Our cybersecurity risk management program aligns with the National Institute of Standards and Technology
Cyber Security Framework, which establishes five areas of focus: identify, protect, detect, respond and recover.
Our cybersecurity risk management program is designed to manage industry-specific threats, as well as threats
arising from the overall evolving cybersecurity landscape and consists of two principal areas of focus: (i)
enterprise systems, which consists of all business systems used in our daily operations and (ii) operational
technology, which consists of all process control, supervisory control and data acquisition systems. Key
elements of our cybersecurity management program include:
•
identifying, monitoring and mitigating the cybersecurity risks to our systems, assets, data and
capabilities;
•
a critical response process for cybersecurity incidents, including the process for detection,
investigation, containment and remediation of any such incidents;
•
establishment of disaster recovery plans;
•
testing, at least bi-annually, of select critical systems for disaster recovery and periodic walk-throughs
of procedures for disaster recovery;
•
identity access policies that aim to identify and monitor for potential cyber intrusions;
•
periodic security tests, including monthly internal vulnerability scans, weekly external vulnerability
scans, monthly phishing campaigns and recurring penetration testing by third-party cybersecurity
firms;
•
table-top exercises, at least quarterly, for incident response preparedness for the Cybersecurity team
and Information Technology department; and
•
annual drills for potential threats on various aspects of our technology assets based on the then-existing
IT threat landscape for our industry.
Pursuant to our incident response plan, the Cybersecurity team has defined roles in responding to all
cybersecurity incidents to provide an efficient and organized approach to handling cybersecurity threats, with
the CIO receiving all reports and status updates regarding cybersecurity threats. The incident response plan
provides a documented framework for when and how the CIO informs and updates our Board, the executive
officers and other internal parties and when external parties are notified or consulted about a cybersecurity
threat and the status thereof.
54
We also utilize third-party cybersecurity vendors to assist us with various aspects of our cybersecurity risk
management program. For example, in order to support our cybersecurity incident response procedures, we
have retained several third-party cybersecurity firms to monitor the IT threat landscape for our industry. As part
of our efforts to manage the risk of cybersecurity threats associated with the use of third parties, we monitor and
evaluate the cybersecurity risk profiles of third-party technology providers and consider such risk profiles when
selecting third-party technology providers. Any third-party service provider that is granted access to our
network is required to comply with our policies regarding information technology and cybersecurity. We also
engage several third-party cybersecurity firms to perform independent assessments of the effectiveness of our
cybersecurity risk management program and assist us in the continued review of our cybersecurity risk
management program in order to reflect the evolving landscape of cybersecurity.
To date, there have been no significant threats, including as a result of any significant cybersecurity breaches or
attacks, that have materially affected our business, results of operations or financial condition. However, if we
were to be subject to a material successful cyber intrusion, it could result in remediation or service restoration
costs, increased cybersecurity protection costs, lost revenues, litigation or regulatory actions by governmental
authorities, increased insurance premiums, reputational damage and damage to our competitiveness, financial
condition, results of operations and cash flows. See “Item 1A. Risk Factors−Risks Relating to Our Business and
Industry−A cyber-attack on, or other failure of, our technology infrastructure could affect our business and
assets, and have a material adverse effect on our financial condition, results of operations and cash flows.”
Cybersecurity governance
Our CIO assumed his position effective June 1, 2024, following the retirement of his predecessor. He previously
served as the head of our Cybersecurity team. Our CIO has 28 years of experience in highly regulated industries
managing information security in complex, matrixed environments. He has created and maintained enterprise-
level information security programs for our Company and other US and international companies in the refining
industry.
Our CIO, along with the head of our Cybersecurity team, periodically reports, no less than quarterly, to our
Board and our executive officers regarding the state of our cybersecurity risk management program, including
information on the status of ongoing efforts to manage and mitigate cybersecurity risks, as well as recent
cybersecurity trends and events and any updates to cybersecurity matters.
The Audit Committee reviews our disclosures with respect to cybersecurity and information technology risks.
The Audit Committee also reviews with management guidelines and policies to govern the process by which
risk assessment and risk management is undertaken, including but not limited to cybersecurity and information
technology risks. As part of the Company’s enterprise-wide risk management program, our Internal Audit team
also reports to our Audit Committee regarding assessments of our cybersecurity and information technology
risks, at least annually, based on regular updates by our CIO regarding such risks. Our Internal Audit team
periodically reports to our executive officers and the Audit Committee regarding such risks.
ITEM 2. PROPERTIES
See “Item 1. Business”.
55
ITEM 3. LEGAL PROCEEDINGS
In connection with the acquisition of the Torrance refinery and related logistics assets, we assumed
certain pre-existing environmental liabilities related to certain environmental remediation obligations to address
existing soil and groundwater contamination and monitoring activities, which reflect the estimated cost of the
remediation obligations. In addition, in connection with the acquisition of the Torrance refinery and related
logistics assets, we purchased a ten-year, $100.0 million environmental insurance policy to insure against
unknown environmental liabilities.
We currently have multiple outstanding notices of violation (“NOVs”) issued by regulatory authorities
for various alleged regulation and permit violations at our refineries. It is not possible to predict the outcome of
any of these NOVs or the amount of the penalties that will be assessed in connection with any NOV. If any one
or more of them were decided against us, we believe that there would be no material effect on our financial
position, results of operations, or liquidity. SEC regulations require us to disclose certain information about
proceedings arising under federal, state, or local provisions regulating the discharge of materials into the
environment or primarily for the purpose of protecting the environment, if a governmental authority is a party to
such proceeding and such proceeding involves potential monetary sanctions, exclusive of interest and costs, that
exceeds a specified threshold. We use a threshold of $1 million for such determination because we believe that
such threshold is reasonably designed to result in disclosure of any such proceeding that is material to the
business or financial condition.
On November 24, 2022, the Martinez refinery experienced a spent catalyst release that is currently being
investigated by the BAAQMD, Contra Costa County (“CCC”), the Department of Justice and EPA, and the
California Department of Fish and Game (“DFG”). To date, the BAAQMD has issued 35 NOVs, the CCC has
issued two NOVs, and the DFG has made findings relating to the spent catalyst incident. On July 11, 2023 and
October 6, 2023, the Martinez refinery experienced unintentional releases of petroleum coke dust and received
inquiries or notices of investigation from the BAAQMD, the California Department of Industrial Relations,
Division of Occupational Safety and Health (“CalOSHA”), the CCC, and the EPA. The BAAQMD also issued
an NOV relating to the July 11, 2023 coke dust incident and an NOV relating to the October 6, 2023 coke dust
incident. On December 15, 2023, the Martinez refinery experienced an unexpected flaring incident, and
subsequently on December 18, 2023 a brush fire incident, and has received inquiries or notices of investigation
from the BAAQMD, CalOSHA, and the CCC. The BAAQMD additionally issued an NOV relating to the
December 15, 2023 flaring incident and four NOVs relating to the December 18, 2023 brush fire incident. The
DFG, the CCC, and the BAAQMD have referred their findings and/or NOVs to the CCC District Attorney for
the spent catalyst incident and various other incidents. On November 16, 2023, the CCC District Attorney and
the BAAQMD announced a joint civil enforcement action against MRC that will include enforcement of the
BAAQMD’s, the CCC’s, and the DFG’s claims from the spent catalyst incident, as well as additional
enforcement claims from various incidents. For the spent catalyst, coke dust, flaring, brush fire, and other
incidents, no penalties have been assessed to date by the various agencies but there have been settlement
communications with the CCC District Attorney and the BAAQMD. We presently believe the outcomes will
not have a material impact on our financial position, results of operations, or cash flows.
56
On September 27, 2023, MRC received from the San Francisco Bay Regional Water Quality Control
Board (“RWQCB”) an Administrative Civil Liability (“ACL”) assessment in the amount of $13.8 million for
allegedly: (1) exceeding its effluent limitations and discharging to the Carquinez Strait without authorization in
October 2022, January 2023, and June 2023; and (2) failing to submit Climate Change Adaptation information.
On January 12, 2024, MRC met with the RWQCB to discuss its response to their ACL assessment. Based on
the discussions and the information provided by MRC, the RWQCB proposed reducing the ACL assessment to
approximately $4.5 million and noted that for any settlement 50% of the penalty could be in the form of
Enhanced Compliance Actions (“ECAs”), Supplemental Environmental Projects (“SEPs”), or a combination of
the two. On January 19, 2024, MRC agreed to accept the reduced ACL, with 50% of the approximately $4.5
million dedicated to ECAs or SEPs. MRC subsequently agreed to fund only SEPs relating to marsh restoration,
regional water quality monitoring, and water quality classroom education in the Martinez, California area. The
parties finalized the settlement agreement and stipulation for entry of the ACL order and on December 9, 2024,
the settlement agreement and stipulation for entry of the ACL order was signed by the RWQCB’s Executive
Officer. MRC has paid the penalty and funded the SEPs.
On February 17, 2017, in Arnold Goldstein, et al. v. Exxon Mobil Corporation, et al., we and PBF LLC,
and our subsidiaries, PBF Western Region and Torrance Refining and the manager of our Torrance refinery
along with ExxonMobil were named as defendants in a class action and representative action complaint. The
complaint was filed in the Superior Court of the State of California, County of Los Angeles and alleges
negligence, strict liability, ultra-hazardous activity, a continuing private nuisance, a permanent private nuisance,
a continuing public nuisance, a permanent public nuisance and trespass resulting from the February 18, 2015
electrostatic precipitator (“ESP”) explosion at the Torrance refinery, which was then owned and operated by
ExxonMobil. The operation of the Torrance refinery by the PBF entities subsequent to our acquisition in July
2016 is also referenced in the complaint. To the extent that plaintiffs’ claims relate to the ESP explosion,
ExxonMobil retained responsibility for any liabilities that would arise from the lawsuit pursuant to the
agreement relating to the acquisition of the Torrance refinery. On July 2, 2018, the Court granted leave to
plaintiffs to file a Second Amended Complaint alleging groundwater contamination. With the filing of the
Second Amended Complaint, plaintiffs added an additional plaintiff, Hany Youssef. On October 15, 2019, the
judge granted certification to two limited classes of property owners with Youssef as the sole class
representative and named plaintiff, rejecting two other proposed subclasses based on negligence and on strict
liability for ultrahazardous activities. The certified subclasses relate to trespass claims for ground contamination
and nuisance for air emissions. On May 5, 2021, the Court granted plaintiffs leave to amend their complaint for
the third time to substitute Navarro for Youssef. On July 5, 2022, the Court issued a final order ruling that
plaintiffs’ Motion to Substitute Navarro as Class Representative was denied and decertifying both of plaintiffs’
proposed Air and Ground Subclasses. The order provided that the case will proceed with Navarro as the sole
plaintiff. On September 22, 2022, the Ninth Circuit Court of Appeals affirmed. On February 27, 2023, the Court
issued an order granting our motion for judgment on the pleadings and dismissed plaintiff’s trespass claim with
prejudice and granted plaintiff leave to amend his nuisance claims in conformity with the order if he can do so
consistent with Rule 11 of the Federal Rules of Civil Procedures. On March 27, 2023, plaintiff filed a Fourth
Amended Complaint relating to the remaining nuisance claims. On May 23, 2023, the Court denied our motion
to dismiss on the pleadings for plaintiff’s failure to establish standing to bring the nuisance claims. After
completing further discovery, on August 28, 2023, we filed a Motion for Summary Judgment. On October 18,
2023, the Court issued an order granting our motion, adjudged that plaintiff take nothing, and that the action be
dismissed with prejudice. The order also allows us to recover the costs of suit pursuant to a bill of costs. On
October 30, 2023, plaintiff filed a notice of appeal to the Ninth Circuit regarding the Court’s order granting
summary judgment. The Court has granted plaintiff extensions of approximately 90 days to file his opening
brief, which was filed on May 27, 2024. After being granted a similar 90-day extension, we filed our answering
brief on September 25, 2024. Plaintiff filed his reply brief on January 21, 2025. The Ninth Circuit has set oral
argument on plaintiff’s appeal for March 25, 2025. We presently believe the outcome of this litigation will not
have a material impact on our financial position, results of operations, or cash flows.
57
On August 16, 2023, in Joseph Piscitelli and Lara Zanzucchi v. Martinez Refining Company LLC, our
subsidiary MRC was named as a defendant in a class action and representative action complaint which contains
allegations of public and private nuisance, trespass, and negligence arising from MRC’s operations. MRC filed
its answer to the complaint on October 31, 2023. The initial Court hearing to discuss discovery issues was held
on January 2, 2024. At the hearing, the Court raised the issue of mediation and directed the parties to meet and
confer and agree to stipulate to a mediation deadline. On January 9, 2024, the parties filed a stipulation agreeing
to consider private mediation by September 20, 2024. On January 17, 2024, the Court issued a scheduling order
setting the class certification hearing for April 10, 2025. On April 4, 2024, the Court granted plaintiffs’ motion
for leave to file a First Amendment Complaint (the “Piscitelli FAC”) to add plaintiff Malan and dismiss plaintiff
Zanzucchi, which plaintiffs filed on April 10, 2024. On the same day, the Court granted plaintiffs’ motion.
MRC filed its answer to the Piscitelli FAC on April 23, 2024. On May 3, 2024, the Court denied MRC’s motion
to relate this case and the Cruz case (discussed below). On June 17, 2024, the Court granted plaintiffs’ motion
to dismiss plaintiff Piscitelli. On December 20, 2024, plaintiffs’ filed their motion for class certification. MRC’s
opposition is due February 14, 2025. Plaintiffs’ reply is due February 21, 2025, and the motion hearing is
scheduled for April 10, 2025. At the February 5, 2025 joint status conference, the Piscitelli, Cruz, and Frye
judges indicated that they will be issuing an order for the parties to meet and confer on common issues and
discovery coordination. We presently believe the outcome will not have a material impact on our financial
position, results of operations, or cash flows.
On December 15, 2023, in Alena Cruz and Shannon Payne vs. PBF Energy Inc., et. al, we and our
subsidiaries PBF Western Region and MRC were named as defendants in a class action and representative
action complaint filed by Alena Cruz and Shannon Payne, and on behalf of all others similarly situated. The
complaint contains allegations of Clean Air Act (“CAA”) violations, claims for medical and environmental
monitoring, liability for ultrahazardous activities, negligence, and public and private nuisance from MRC’s
operations. The proposed class is all individuals who reside and/or work in the City of Martinez, including the
surrounding communities of Alhambra Valley and Franklin Canyon, as well as El Sobrante, Hercules, Benicia,
and Richmond, who have allegedly been exposed to elevated levels of spent catalyst discharged from MRC’s
operations during the period November 24, 2022 to the present. On December 21, 2023, plaintiffs granted an
extension until February 5, 2024 for MRC to respond to the initial complaint. On February 5, 2024, MRC filed a
motion to dismiss on the pleadings. In response, on February 16, 2024, plaintiffs filed a First Amendment
Complaint (the “Cruz FAC”). On February 29, 2024, MRC filed a motion to dismiss the Cruz FAC on the
pleadings. Plaintiffs’ opposition was filed on March 14, 2024. MRC filed its reply to plaintiffs’ opposition on
March 21, 2024. At the motion hearing on April 4, 2024, the Court granted MRC’s request to dismiss all
wrongly named PBF entities and plaintiffs’ CAA and Medical Monitoring causes of action. At the following
Status Conference on April 4, 2024, the Court agreed that the Cruz and Piscitelli cases should now be related.
The Court ordered the Cruz and Piscitelli plaintiffs to meet and confer on a joint discovery schedule and report
back to the Court by the end of April 2024. On May 3, 2024, the Piscitelli Court denied MRC’s motion to relate
this case and the Piscitelli case (discussed above). On May 17, 2024, MRC filed its answer to the Cruz FAC. On
June 5, 2024, the Court stayed the case, pending the outcome of the class property damage claim in the Piscitelli
case. On January 22, 2025, the Court denied the motion to relate this case, Frye, Saliba, Silvestri, and Manning
cases filed by the Frye, Saliba, Silvestri, and Manning plaintiffs. The motion was referred to the Frye Court to
determine if the Frye, Saliba, Silvestri, and Manning cases are related. On January 23, 2025, the Court issued an
order setting a joint status conference for February 5, 2025 before the Piscitelli, Cruz, and Frye Judges. At the
February 5, 2025 joint status conference, the Piscitelli, Cruz, and Frye judges indicated that they will be issuing
an order for the parties to meet and confer on common issues and discovery coordination. We presently believe
the outcome will not have a material impact on our financial position, results of operations, or cash flows.
58
On July 31, 2024, in Jennifer Frye, et al. v. Martinez Refining Company LLC, MRC was named as a
defendant in a complaint filed by 18 individuals which contains allegations of negligence, public and private
nuisance, premise liability, trespass, and strict liability ultrahazardous activities. On October 7, 2024, MRC filed
a motion to dismiss the complaint. Also on October 7, 2024, plaintiffs filed a motion to relate the Frye case to
the Piscitelli and Cruz cases. The Piscitelli Court subsequently denied the motion to relate the three cases. The
motion to relate is currently pending with the Cruz Court. Plaintiffs’ opposition brief to MRC’s motion to
dismiss was filed on November 11, 2024, and MRC filed its reply brief on November 22, 2024. The motion
hearing scheduled for December 10, 2024 was vacated by the Court. On December 17, 2024, the Court issued
its ruling partially dismissing some of plaintiffs’ claims. On January 3, 2025, Plaintiffs filed a First Amended
Complaint (the “Frye FAC”). On January 17, 2025, MRC filed its answer to the Frye FAC. On January 22,
2025, the Cruz Court denied the motion to relate this case, Saliba, Silvestri, and Manning to the Cruz case and
referred the matter to this Court to determine if this case, and the Saliba, Silvestri, and Manning cases are
related. On January 23, 2025, the Court issued an order setting a joint status conference for February 5, 2025
before the Piscitelli, Cruz, and Frye Judges. On January 31, 2025, this Court denied the motion to relate. The
motion is now referred to the Saliba Court to determine if the Saliba, Silvestri, and Manning cases are related.
At the February 5, 2025 joint status conference, the Piscitelli, Cruz, and Frye judges indicated that they will be
issuing an order for the parties to meet and confer on common issues and discovery coordination. We presently
believe the outcome will not have a material impact on our financial position, results of operations, or cash
flows.
On November 22, 2024, in Alice Saliba, et al. v. Martinez Refining Company LLC, MRC was named as a
defendant in a complaint filed by 285 individuals which contains allegations of negligence, public and private
nuisance, premise liability, trespass, and strict liability ultrahazardous activities. The plaintiffs are represented
by the same law firm representing the Frye, Silvestri, and Manning plaintiffs. On December 9, 2024, plaintiffs’
filed a motion to relate this case to the Frye, Silvestri, Manning, and Cruz cases. On January 22, 2025, the Cruz
Court denied the motion to relate and it was referred to the Frye Court. On January 31, 2025, the Frye Court
denied the motion to relate. The motion is now referred to this Court to determine if this case and the Silvestri
and Manning cases are related. MRC’s answer to the complaint is currently due February 14, 2025. We
presently believe the outcome will not have a material impact on our financial position, results of operations, or
cash flows.
On November 25, 2024, in Elizabeth Silvestri, et al. v. Martinez Refining Company LLC, MRC was
named as a defendant in a complaint filed by 195 individuals which contains allegations of negligence, public
and private nuisance, premise liability, trespass, and strict liability ultrahazardous activities. The plaintiffs are
represented by the same law firm representing the Frye, Saliba, and Manning plaintiffs. On December 9, 2024,
plaintiffs’ filed a motion to relate this case to the Frye, Silba, Manning, and Cruz cases. On January 22, 2025,
the Cruz Court denied the motion to relate and it was referred to the Frye Court. On January 31, 2025, the Frye
Court denied the motion to relate. The motion is now referred to the Saliba Court to determine if this case and
the Saliba and Manning cases are related. MRC’s answer to the complaint is currently due February 14, 2025.
We presently believe the outcome will not have a material impact on our financial position, results of
operations, or cash flows.
On November 25, 2024, in Robert Manning, et al. v. Martinez Refining Company LLC, MRC was named
as a defendant in a complaint filed by 204 individuals which contains allegations of negligence, public and
private nuisance, premise liability, trespass, and strict liability ultrahazardous activities. The plaintiffs are
represented by the same law firm representing the Frye, Saliba, and Silvestri plaintiffs. On December 9, 2024,
plaintiffs’ filed a motion to relate this case to the Frye, Saliba, Silvestri, and Cruz cases. On January 22, 2025,
the Cruz Court denied the motion to relate and it was referred to the Frye Court. On January 31, 2025, the Frye
Court denied the motion to relate. The motion is now referred to the Saliba Court to determine if this case and
the Saliba and Silvestri cases are related. MRC’s answer to the complaint is currently due February 14, 2025.
We presently believe the outcome will not have a material impact on our financial position, results of
operations, or cash flows.
59
On December 21, 2023, EPA Region 5 issued a Finding of Violation (“FOV”) alleging violations of the
CAA, 42 U.S.C. §§ 7411, 7412, and regulations promulgated under those sections, of the National Emission
Standard for Benzene Waste Operations at 40 C.F.R. Part 61, Subpart FF, of the New Source Performance
Standards for Volatile Organic Compounds from Petroleum Wastewater Systems at 40 C.F.R. Part 60, Subpart
QQQ, and of our CAA Title V operating permit for the Wastewater Treatment Unit at our Toledo refinery. This
FOV followed an EPA compliance inspection at the Toledo refinery conducted in September 2023. We have
recently been engaged in discussions with EPA to resolve these matters, but we cannot currently estimate the
timing of the resolution or the amount of any potential civil penalties. We presently believe the outcome will not
have a material impact on our financial position, results of operations, or cash flows.
The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980
(“CERCLA”), also known as “Superfund,” imposes liability, without regard to fault or the legality of the
original conduct, on certain classes of persons who are considered to be responsible for the release of a
“hazardous substance” into the environment. These persons include the current or former owner or operator of
the disposal site or sites where the release occurred and companies that disposed of or arranged for the disposal
of the hazardous substances. Under CERCLA, such persons may be subject to joint and several liability for
investigation and the costs of cleaning up the hazardous substances that have been released into the
environment, for damages to natural resources and for the costs of certain health studies. As discussed more
fully above, certain of our sites are subject to these laws and we may be held liable for investigation and
remediation costs or claims for natural resource damages. It is not uncommon for neighboring landowners and
other third parties to file claims for personal injury and property damage allegedly caused by hazardous
substances or other pollutants released into the environment. Analogous state laws impose similar
responsibilities and liabilities on responsible parties. In our current normal operations, we have generated waste,
some of which falls within the statutory definition of a “hazardous substance” and some of which may have
been disposed of at sites that may require cleanup under Superfund.
As the ultimate outcomes of the pending matters discussed above are uncertain, we cannot currently
estimate the final amount or timing of their resolution, but any such amount is not expected to have a material
impact on our financial position, results of operations, or cash flows, individually or in the aggregate.
ITEM 4. MINE SAFETY DISCLOSURES
None.
60
PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER
MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
PBF Energy Class A common stock trades on the New York Stock Exchange under the symbol “PBF”.
PBF Energy Class B common stock is not publicly-traded.
As of February 7, 2025, there were 280 holders of record of PBF Energy Class A common stock and 12
holders of record of PBF Energy Class B common stock.
Dividend and Distribution Policy
Subject to the following paragraphs, PBF Energy currently intends to continue to pay quarterly cash
dividends of approximately $0.275 per share on its Class A common stock.
PBF Energy is a holding company and has no material assets other than its ownership interests of PBF
LLC. In order for PBF Energy to pay any dividends, it needs to cause PBF LLC to make distributions to it and
the holders of PBF LLC Series A Units, and PBF LLC needs to cause PBF Holding and/or PBFX to make
distributions to it, in at least an amount sufficient to cover cash dividends, if any, declared by PBF Energy. Each
of PBF Holding and PBFX is generally prohibited under Delaware law from making a distribution to a member
to the extent that, at the time of the distribution, after giving effect to the distribution, liabilities of the limited
liability company (with certain exceptions) exceed the fair value of its assets. As a result, PBF LLC may be
unable to obtain cash from PBF Holding and/or PBFX to satisfy its obligations and make distributions to PBF
Energy for dividends, if any, to PBF Energy’s stockholders. If PBF LLC makes such distributions to PBF
Energy, the holders of PBF LLC Series A Units will also be entitled to receive pro rata distributions. The ability
of PBF Holding to make distributions to PBF LLC is, and in the future may be, limited by covenants in its
Revolving Credit Facility, the 2030 Senior Notes, the 2028 Senior Notes and other debt instruments. Subject to
certain exceptions, the Revolving Credit Facility and the indentures governing the senior notes prohibit PBF
Holding from making distributions to PBF LLC if certain defaults exist. In addition, both the indentures and the
Revolving Credit Facility contain additional restrictions limiting PBF Holding’s ability to make distributions to
PBF LLC.
PBF Holding made $551.0 million in distributions to PBF LLC during the year ended December 31,
2024. In addition, during the year ended December 31, 2024 PBF LLC used $119.9 million to make non-tax
distributions to its members, of which $119.0 million was distributed to PBF Energy and the balance was
distributed to PBF LLC’s other members. PBF Energy used this $119.0 million to pay cash dividends of $0.25
per share of its Class A common stock on March 14, 2024, May 30, 2024 and August 29, 2024, and cash
dividends of $0.275 per share on November 27, 2024.
The declaration, amount and payment of any future dividends on shares of PBF Energy Class A common
stock will be at the sole discretion of PBF Energy’s Board of Directors, and we are not obligated under any
applicable laws, our governing documents or any contractual agreements with our existing owners or otherwise
to declare or pay any dividends or other distributions (other than the obligations of PBF LLC to make tax
distributions to its members).
61
Stock Performance Graph
In accordance with SEC rules, the information contained in the Stock Performance Graph below shall not
be deemed to be “soliciting material,” or to be “filed” with the SEC, or subject to the SEC’s Regulation 14A or
14C, other than as provided under Item 201(e) of Regulation S-K, or to the liabilities of Section 18 of the
Securities Exchange Act of 1934, as amended, except to the extent that we specifically request that the
information be treated as soliciting material or specifically incorporate it by reference into a document filed
under the Securities Act of 1933, as amended.
The graph below matches the cumulative 5-year total return of holders of PBF Energy, Inc.'s common
stock with the cumulative total returns of the S&P 500 index and a customized peer group of six companies that
includes: Delek US Holdings Inc, HF Sinclair Corporation, Marathon Petroleum Corporation, Phillips 66, CVR
Energy, Inc. and Valero Energy Corporation. The graph assumes that the value of the investment in our
common stock, in each index, and in the peer group (including reinvestment of dividends) was $100 on
12/31/2019 and tracks it through 12/31/2024.
12/31/2019
12/31/2020
12/31/2021
12/31/2022
12/31/2023
12/31/2024
PBF Energy Class A common stock
$
100.00
$
22.91
$
41.84
$
132.13
$
145.30
$
90.10
S&P 500
100.00
118.40
152.39
124.79
157.59
197.02
Peer Group
100.00
65.66
88.06
151.38
184.97
168.71
62
Recent Sales of Unregistered Securities—Exchange of PBF LLC Series A Units for PBF Energy Class A
Common Stock
In the fourth quarter of 2024, there were no exchanges of PBF LLC Series A Units for shares of PBF
Energy Class A common stock in transactions exempt from registration under Section 4(a)(2) of the Securities
Act. No exchanges were made by any of our directors or current executive officers.
Share Repurchase Program
The following table summarizes PBF Energy’s Class A common stock share repurchase activity during
the fourth quarter of 2024:
Period
Total Number of
Shares
Purchased (1)
Average Price
Paid per Share
(2)
Total Number of Shares
Purchased as Part of
Publicly Announced
Plan (3)
Approximately Dollar Value of
Shares that May Yet Be Purchased
Under Plan (in millions)
October
1-31, 2024
— $
—
— $
761.0
November
1-30, 2024
— $
—
— $
761.0
December
1-31, 2024
1,000,000 $
28.96
1,000,000 $
732.0
Total
1,000,000 $
28.96
1,000,000 $
732.0
(1) The shares purchased include only those shares that have settled as of the period end date.
(2) Average price per share excludes transaction commissions.
(3) On December 12, 2022, our Board of Directors authorized the repurchase of PBF Energy's Class A common
stock (as amended from time to time, the “Repurchase Program”). As further approved on February 13, 2024,
the Repurchase Program currently allows for repurchases of up to $1.75 billion and has a program expiration
date of December 2025. These repurchases may be made from time to time through various methods, including
open market transactions, block trades, accelerated share repurchases, privately negotiated transactions or
otherwise, certain of which have been effected through Rule 10b5-1 plans. The timing and number of shares
repurchased depended on a variety of factors, including price, capital availability, legal requirements and
economic and market conditions. We were not obligated to purchase any shares under the Repurchase Program,
and repurchases could be suspended or discontinued at any time without prior notice.
ITEM 6. [RESERVED]
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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following review of our results of operations and financial condition should be read in conjunction
with “Item 1. Business”, “Item 1A. Risk Factors”, “Item 2. Properties”, and “Item 8. Financial Statements and
Supplementary Data,” respectively, included in this Annual Report on Form 10-K.
In this Item 7, we discuss results for the years ended December 31, 2024 and 2023 and comparisons of
the results for the years ended December 31, 2024 and 2023. Discussions of results for the year ended
December 31, 2022 and comparisons of the results for the years ended December 31, 2023 and 2022 can be
found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II,
Item 7 of the Company's annual report on Form 10-K for the year ended December 31, 2023.
CAUTIONARY STATEMENT FOR THE PURPOSE OF SAFE HARBOR PROVISIONS OF THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This Annual Report on Form 10-K contains certain “forward-looking statements,” as defined in the
Private Securities Litigation Reform Act of 1995 (“PSLRA”), of expected future developments that involve
risks and uncertainties. You can identify forward-looking statements because they contain words such as
“believes,” “expects,” “may,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “anticipates”
or similar expressions that relate to our strategy, plans or intentions. All statements we make relating to our
estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results or
to our strategies, objectives, intentions, resources and expectations regarding future industry trends are forward-
looking statements made under the safe harbor provisions of the PSLRA except to the extent such statements
relate to the operations of a partnership or limited liability company. In addition, we, through our senior
management, from time to time make forward-looking public statements concerning our expected future
operations and performance and other developments. These forward-looking statements are subject to risks and
uncertainties that may change at any time, and, therefore, our actual results may differ materially from those that
we expected. We derive many of our forward-looking statements from our operating budgets and forecasts,
which are based on many detailed assumptions. While we believe that our assumptions are reasonable, we
caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to
anticipate all factors that could affect our actual results.
Important factors that could cause actual results to differ materially from our expectations, which we
refer to as “cautionary statements,” are disclosed under “Item 1A. Risk Factors,” and “Item 7. Management’s
Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Annual Report
on Form 10-K. All forward-looking information in this Annual Report on Form 10-K and subsequent written
and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in
their entirety by the cautionary statements. Some of the factors that we believe could affect our results include:
•supply, demand, prices and other market conditions for our products or crude oil, including volatility in
commodity prices or constraints arising from federal, state or local governmental actions or environmental
and/or social activists that reduce crude oil production or availability in the regions in which we operate
our pipelines and facilities;
•rate of inflation, including increases due to tariffs and other trade measures that may be proposed by the
new presidential administration, and its impact on supply and demand, pricing, and supply chain
disruption;
•the effects related to, or resulting from, geopolitical conflict around the world, including Russia's military
action in Ukraine, armed hostilities in the Middle East and disruptions in international shipping, resulting
from attacks by armed groups on cargo ships, including the imposition of additional sanctions and export
controls, the potential expansion of such conflicts to other nations or regions, as well as the broader
impacts to financial markets and the global macroeconomic and geopolitical environment;
64
•the effectiveness of our crude oil sourcing strategies, including our crude by rail strategy and related
commitments;
•our obligation to buy RINs and market risks related to the volatility in the price of RINs required to
comply with the RFS and GHG emission credits required to comply with various GHG emission
programs, such as AB 32;
•our ability to operate our businesses efficiently, manage capital expenditures and costs (including general
and administrative expenses) and generate earnings and cash flow;
•our expectations with respect to our capital spending and turnaround projects;
•the impact of current and future laws, rulings and governmental regulations, including restrictions on the
exploration and/or production of crude oil in the state of California, the implementation of rules and
regulations regarding transportation of crude oil by rail or in response to the potential impacts of climate
change, decarbonization and future energy transition and public policy in opposition to recent refining
industry profits;
•adverse impacts related to legislation by the federal government lifting the restrictions on exporting U.S.
crude oil or subjecting us to trade and sanctions laws, which change frequently as a result of foreign policy
developments, and which may necessitate changes to our crude oil acquisition activities;
•our ability to manage our costs and expenses;
•political pressure and influence of environmental groups and other stakeholders on decisions and policies
related to the refining, processing and storage of crude oil and refined products, and the related adverse
impacts from changes in our regulatory environment, such as the effects of compliance with AB 32 and/or
ABx 2-1, or from actions taken by environmental interest groups;
•the risk of cyber-attacks;
•our increased dependence on technology;
• the effects of competition in our markets;
•the possibility that we might reduce or not pay dividends in the future;
•the inability of our subsidiaries to freely make distributions to us;
•our ability to make acquisitions or investments, including in renewable diesel production, and to realize
the benefits from such acquisitions or investments;
•our ability to successfully manage the operations of SBR, which owns the Renewable Diesel Facility,
together with our partner, Eni;
•liabilities arising from recent acquisitions or investments, that are unforeseen or exceed our expectations;
•our expectations and timing with respect to our acquisition and investment activity and whether such
acquisitions and investments are accretive or dilutive to shareholders;
• adverse developments in our relationship with both our key employees and unionized employees;
•our indebtedness, including the impact of potential downgrades to our corporate credit rating and/or
unsecured notes;
•changes in currency exchange rates, interest rates and capital costs;
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•restrictive covenants in our indebtedness that may adversely affect our operational flexibility;
•counterparty credit and performance risk exposure related to our supply and inventory intermediation
arrangements, if any;
•payments by PBF Energy to the current and former holders of PBF LLC Series A Units and PBF LLC
Series B Units, or their permitted assignees, under PBF Energy’s Tax Receivable Agreement for certain
tax benefits we may claim;
•our assumptions regarding payments arising under PBF Energy’s Tax Receivable Agreement and other
arrangements relating to our organizational structure are subject to change due to various factors,
including, among other factors, the timing of exchanges of PBF LLC Series A Units for shares of PBF
Energy Class A common stock as contemplated by the Tax Receivable Agreement, the price of PBF
Energy Class A common stock at the time of such exchanges, the extent to which such exchanges are
taxable, and the amount and timing of our income; and
•the impact of disruptions to crude or feedstock supply to any of our refineries or our Renewable Diesel
Facility, or with third-party logistics infrastructure or operations, including pipeline, marine and rail
transportation.
We caution you that the foregoing list of important factors may not contain all of the material factors that
are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-
looking statements contained in this Annual Report on Form 10-K may not in fact occur. Accordingly, investors
should not place undue reliance on those statements.
Our forward-looking statements speak only as of the date of this Annual Report on Form 10-K. Except as
required by applicable law, including the securities laws of the United States, we do not intend to update or
revise any forward-looking statements. All subsequent written and oral forward-looking statements attributable
to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing.
Executive Summary
Our business operations are conducted by our subsidiaries. We own and operate six domestic oil
refineries and related assets located in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio,
Chalmette, Louisiana, Torrance, California, and Martinez, California, and own a 50% interest in the Renewable
Diesel Facility through our SBR equity method investment. Our refineries have a combined processing
capacity, known as throughput, of approximately 1,000,000 bpd, and a weighted-average Nelson Complexity
Index of 12.8 based on current operating conditions. The complexity and throughput capacity of our refineries
are subject to change dependent upon configuration changes we make to respond to market conditions, as well
as a result of investments made to improve our facilities and maintain compliance with environmental and
governmental regulations. We operate in two reportable business segments: Refining and Logistics. Our six
refineries are all engaged in the refining of crude oil and other feedstocks into petroleum products, and represent
the Refining segment. PBFX operates certain logistical assets such as crude oil and refined products terminals,
pipelines, and storage facilities, which represent the Logistics segment.
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Factors Affecting Comparability
Our results over the past three years have been affected by the following events, the understanding of
which will aid in assessing the comparability of our period to period financial performance and financial
condition.
Debt and Credit Facilities
PBF Holding Revolving Credit Facility
On August 23, 2023, we entered into the Revolving Credit Agreement. The Revolving Credit Agreement
amended and restated the previously existing revolving credit agreement dated as of May 2, 2018 (as amended
from time to time, the “Prior Credit Agreement”). Among other things, the Revolving Credit Agreement
extended the Revolving Credit Facility through August 2028 and increased the maximum commitment amount
under the facility to $3.5 billion from $2.85 billion. The commitment fees on the unused portion, the interest
rate on advances and the fees for letters of credit are generally consistent with the Prior Credit Agreement.
There were $200.0 million outstanding borrowings under the Revolving Credit Facility as of
December 31, 2024. There were no outstanding borrowings as of December 31, 2023.
PBFX Revolving Credit Facility
On June 20, 2023, we terminated the $500.0 million PBFX senior secured revolving credit facility (the
“PBFX Revolving Credit Facility”), which was originally set to mature on July 30, 2023. There were no
outstanding borrowings under the PBFX Revolving Credit Facility as of the termination date.
Senior Notes
On August 21, 2023, we issued $500.0 million in aggregate principal amount of the 2030 Senior Notes.
The net proceeds from this offering were approximately $488.8 million after deducting the initial purchasers’
discount and offering expenses. We used the net proceeds, together with cash on hand, to fully redeem the
outstanding 7.25% senior unsecured notes due 2025 (the “2025 Senior Notes”), including accrued and unpaid
interest, on September 13, 2023 for approximately $664.5 million.
On February 2, 2023, we exercised our rights under the indenture governing PBFX’s 6.875% senior
notes (the “PBFX 2023 Senior Notes”) to redeem all of the outstanding PBFX 2023 Senior Notes at a price of
100% of the aggregate principal amount thereof, plus accrued and unpaid interest through the date of
redemption. The aggregate redemption price for the PBFX 2023 Senior Notes approximated $525.0 million,
inclusive of unamortized premium and deferred financing costs. The redemption was funded using cash on
hand.
During the year ended December 31, 2022, we exercised our rights under the indenture governing the
9.25% senior secured notes due 2025 (the “2025 Senior Secured Notes”) to redeem all of the outstanding 2025
Senior Secured Notes at a price of 104.625% of the aggregate principal amount thereof plus accrued and unpaid
interest. The aggregate redemption price for all 2025 Senior Secured Notes approximated $1.3 billion plus
accrued and unpaid interest. The difference between the carrying value of the 2025 Senior Secured Notes on the
date they were redeemed and the amount for which they were redeemed was $69.9 million and was recorded as
a Loss on extinguishment of debt in the Consolidated Statements of Operations.
During the year ended December 31, 2022, we made a number of open market repurchases of our 2028
Senior Notes and our 2025 Senior Notes that resulted in the extinguishment of $24.9 million in principal of the
2028 Senior Notes and $5.0 million in principal of the 2025 Senior Notes. Total cash consideration paid to
repurchase the principal amount outstanding of the 2028 Senior Notes and the 2025 Senior Notes, excluding
accrued interest, totaled $25.9 million and we recognized a $3.8 million gain on the extinguishment of this debt
during the year ended December 31, 2022.
67
Catalyst Financing Obligations
During the year ended December 31, 2023, we settled our last remaining outstanding precious metal
financing arrangement, which represented a reduction of debt of approximately $3.1 million. During the year
ended December 31, 2022, we settled certain of our precious metals financing arrangements, resulting in
reductions of debt of approximately $56.2 million.
Refer to “Note 9 - Credit Facilities and Debt” of our Notes to Consolidated Financial Statements, for
further information.
Inventory Intermediation Agreement
Prior to 2023, PBF Holding and its subsidiaries, DCR, PRC, and Chalmette Refining (collectively, the
“PBF Entities”), entered into the third amended and restated inventory intermediation agreement (the “Inventory
Intermediation Agreement”) with J. Aron. Pursuant to the Inventory Intermediation Agreement, J. Aron
purchased and held title to certain crude oil, intermediates, and finished products (the “J. Aron Products”)
purchased or produced by the Paulsboro and Delaware City refineries (and at the election of the PBF Entities,
the Chalmette refinery) (the “Refineries”) and delivered into the storage tanks at the Refineries (the “Storage
Tanks”). The J. Aron Products were sold back to us as the J. Aron Products were discharged out of the Storage
Tanks.
On June 28, 2023, the PBF Entities entered into an amendment to the Inventory Intermediation
Agreement to amend certain provisions in order to allow for the early termination of the Inventory
Intermediation Agreement effective as of July 31, 2023. In conjunction with this early termination, we made a
payment of $268.0 million for the inventory previously held by J. Aron, inclusive of $13.5 million of related
costs associated with exiting the agreement.
Equity Method Investment in SBR
On June 27, 2023, we and our partner, Eni, completed the closing of the equity method investment
transaction and the capitalization of SBR, a jointly held investee designed to own, develop, and operate the
Renewable Diesel Facility. We contributed the SBR business, which had a total estimated fair value of
$1.69 billion, excluding working capital. Eni contributed $845.6 million of total consideration, which consisted
of $431.0 million of cash distributed to us at close and an additional $414.6 million of cash contributed after the
commercial start-up of the pre-treatment unit in July 2023. SBR now owns the Renewable Diesel Facility. As
stipulated in the agreements with Eni, we managed project execution and continue to serve as the operator of the
facility. During the year ended December 31, 2023, we recorded a gain of $925.1 million resulting from the
difference between the fair value of the consideration received, including our 50% noncontrolling interest, and
the carrying value of the related assets contributed. During the year ended December 31, 2024, we recorded an
$8.7 million reduction to the gain.
Transactions with SBR
We and our subsidiaries have entered into various agreements with SBR, primarily related to the sale and
purchase of environmental credits and hydrocarbon products. Refer to “Note 10 - Related Party Transactions”
of our Notes to Consolidated Financial Statements for transactions with SBR.
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Share Repurchase Program
On December 12, 2022, our Board of Directors authorized the Repurchase Program. As further approved
on February 13, 2024, the Repurchase Program currently allows for repurchases of up to $1.75 billion and has a
program expiration date of December 2025. During the year ended December 31, 2024, we purchased
7,554,269 shares of PBF Energy's Class A common stock for $329.1 million, inclusive of commissions paid,
through open market transactions. During the year ended December 31, 2023, we purchased 12,367,073 shares
of PBF Energy's Class A common stock for $532.5 million, inclusive of commissions paid, through open
market transactions. During the year ended December 31, 2022, we purchased 4,192,555 shares of PBF
Energy's Class A common stock for $156.4 million, inclusive of commissions paid, through open market
transactions.
Land Sales
During the year ended December 31, 2023, we closed on a third-party sale of a parcel of real property
acquired as part of the Torrance refinery, but not part of the refinery itself. The sale resulted in a gain of
approximately $1.7 million, included within Gain on sale of assets in the Consolidated Statements of
Operations.
Merger Transaction
On November 30, 2022, PBF Energy, PBF LLC, PBFX Holdings Inc., a Delaware corporation and
wholly-owned subsidiary of PBF LLC (“PBFX Holdings”), Riverlands Merger Sub LLC, a Delaware limited
liability company and wholly owned subsidiary of PBF LLC, PBFX, and PBFX GP closed on a definitive
agreement (the “Merger Agreement”) pursuant to which PBF Energy and PBF LLC acquired all of the publicly
held common units in PBFX representing limited partner interests in the master limited partnership not already
owned by certain wholly-owned subsidiaries of PBF Energy and its affiliates (the “Merger Transaction”).
Subsequent to closing on the Merger Transaction, PBFX became an indirect wholly-owned subsidiary of PBF
Energy and PBF LLC.
At the effective time of the closing of the Merger Transaction, pursuant to the terms of the Merger
Agreement, each PBFX Public Common Unit was converted into the right to receive: (i) 0.270 of a share of
Class A Common Stock, par value $0.001 per share, of PBF Energy, (ii) $9.25 in cash, without interest and (iii)
any cash in lieu of fractional shares of PBF Energy Common Stock to which the holder thereof became entitled
upon surrender of such PBFX Public Common Units in accordance with the Merger Agreement. Such Merger
Agreement consideration totaled $303.7 million in cash and resulted in the issuance of 8,864,684 shares of PBF
Energy Class A common stock. The PBFX Common Units owned by PBF LLC and PBFX Holdings and the
non-economic general partner interest remain outstanding and were unaffected by the Merger Transaction.
There was no change in ownership of the non-economic general partner interest.
East Coast Refining Reconfiguration
In 2022, we restarted several processing units at the Paulsboro refinery, that were temporarily idled in
2020 as part of the East Coast Refining Reconfiguration. Based on this reconfiguration and subsequent restart of
several processing units, our East Coast throughput capacity currently approximates 335,000 barrels per day.
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Tax Receivable Agreement
In connection with our IPO, we entered into a Tax Receivable Agreement pursuant to which we are
required to pay the members of PBF LLC or their permitted assignees, who exchange their units for PBF
Energy Class A common stock or whose units PBF Energy purchases, approximately 85% of the cash savings
in income taxes that we realize as a result of the increase in the tax basis of our interest in PBF LLC, including
tax benefits attributable to payments made under the Tax Receivable Agreement. As of December 31, 2024, a
liability for the Tax Receivable Agreement of $293.6 million ($336.6 million and $338.6 million as of
December 31, 2023 and December 31, 2022, respectively) reflecting our estimate of the undiscounted amounts
that we expect to pay under the agreement. As of December 31, 2024, $125.4 million of the Tax Receivable
Agreement obligation was recorded as a Current liability and represents the amount paid in January 2025
related to the 2023 tax year. As future taxable income is recognized, increases in our Tax Receivable Agreement
liability may be necessary in conjunction with the revaluation of deferred tax assets. Refer to “Note 11 -
Commitments and Contingencies” and “Note 18 - Income Taxes” of our Notes to Consolidated Financial
Statements for more details.
Renewable Fuel Standard
We are subject to obligations to purchase RINs required to comply with RFS. Our overall RINs
obligation is based on a percentage of domestic shipments of on-road fuels as established by EPA. To the
degree we are unable to blend the required amount of biofuels to satisfy our RINs obligation, RINs must be
purchased on the open market to avoid penalties and fines. We record our RINs obligation on a net basis in
Accrued expenses when our RINs liability is greater than the amount of RINs earned and purchased in a given
period and in Prepaid and other current assets when the amount of RINs earned and purchased is greater than
the RINs liability. We incurred approximately $515.3 million in RINs costs during the year ended December 31,
2024 as compared to $762.3 million and $1,225.5 million during the years ended December 31, 2023 and 2022,
respectively. The fluctuations in RINs costs are due primarily to volatility in prices for ethanol-linked RINs and
changes in our production of on-road transportation fuels. Our RINs purchase obligation is dependent on our
actual shipment of on-road transportation fuels domestically and the amount of blending achieved.
Factors Affecting Operating Results
Overview
Our earnings and cash flows from operations are primarily affected by the relationship between refined
product prices and the prices for crude oil and other feedstocks. The cost to acquire crude oil and other
feedstocks and the price of refined products ultimately sold depends on numerous factors beyond our control,
including the supply of, and demand for, crude oil, gasoline, diesel and other refined products, which, in turn,
depend on, among other factors, changes in global and regional economies, weather conditions, global and
regional political affairs, production levels, the availability of imports, the marketing of competitive fuels,
pipeline capacity, prevailing exchange rates and the extent of government regulation. Our revenue and income
from operations fluctuate significantly with movements in industry refined product prices, our materials cost
fluctuate significantly with movements in crude oil prices and our other operating expenses fluctuate with
movements in the price of energy to meet the power needs of our refineries. In addition, the effect of changes in
crude oil prices on our operating results is influenced by how the prices of refined products adjust to reflect such
changes.
70
Crude oil and other feedstock costs and the prices of refined products have historically been subject to
wide fluctuation. Expansion and upgrading of existing facilities and installation of additional refinery
distillation or conversion capacity, price volatility, governmental regulations, international political and
economic developments and other factors beyond our control are likely to continue to play an important role in
refining industry economics. These factors can impact, among other things, the level of inventories in the
market, resulting in price volatility and a reduction or increase in product margins. Moreover, the industry
typically experiences seasonal fluctuations in demand for refined products, such as for gasoline and diesel,
during the summer driving season and for home heating oil during the winter.
Benchmark Refining Margins
In assessing our operating performance, we compare the refining margins (revenue less materials cost) of
each of our refineries against a specific benchmark industry refining margin based on crack spreads. Benchmark
refining margins take into account both crude and refined product prices. When these prices are combined in a
formula they provide a single value—a gross margin per barrel—that, when multiplied by throughput, provides
an approximation of the gross margin generated by refining activities.
The performance of our East Coast refineries generally follows the Dated Brent (NYH) 2-1-1 benchmark
refining margin. Our Toledo refinery generally follows the WTI (Chicago) 4-3-1 benchmark refining margin.
Our Chalmette refinery generally follows the LLS (Gulf Coast) 2-1-1 benchmark refining margin. Our Torrance
refinery generally follows the ANS (West Coast) 4-3-1 benchmark refining margin. Our Martinez refinery
generally follows the ANS (West Coast) 3-2-1 benchmark refining margin.
While the benchmark refinery margins presented below under “Results of Operations—Market
Indicators” are representative of the results of our refineries, each refinery’s realized gross margin on a per
barrel basis will differ from the benchmark due to a variety of factors affecting the performance of the relevant
refinery to its corresponding benchmark. These factors include the refinery’s actual type of crude oil
throughput, product yield differentials and any other factors not reflected in the benchmark refining margins,
such as transportation costs, storage costs, credit fees, fuel consumed during production and any product
premiums or discounts, as well as inventory fluctuations, timing of crude oil and other feedstock purchases, a
rising or declining crude and product pricing environment and commodity price management activities. As
discussed in more detail below, each of our refineries, depending on market conditions, has certain feedstock-
cost and product-value advantages and disadvantages as compared to the refinery’s relevant benchmark.
Credit Risk Management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to us. Our exposure to credit risk is reflected in the carrying amount of the receivables that are
presented in our Consolidated Balance Sheets. To minimize credit risk, all customers are subject to extensive
credit verification procedures and extensions of credit above defined thresholds are to be approved by the senior
management. Our intention is to trade only with recognized creditworthy third parties. In addition, receivable
balances are monitored on an ongoing basis. We also limit the risk of bad debts by obtaining security such as
guarantees or letters of credit.
We continually monitor our market risk exposure for market developments that could introduce
significant volatility in the financial markets.
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Other Factors
We currently source our crude oil for our refineries on a global basis through a combination of market
purchases and short-term purchase contracts, and through our crude oil supply agreements. We believe
purchases based on market pricing has given us flexibility in obtaining crude oil at lower prices and on a more
accurate “as needed” basis. Since our East Coast refineries access their crude slates from the Delaware River via
ship or barge and through our rail facilities at Delaware City, these refineries have the flexibility to purchase
crude oils from the Mid-Continent and Western Canada, as well as a number of different countries.
Currently, crude oil delivered by rail is consumed at our East Coast refineries. The Delaware City rail
unloading facilities, and the East Coast Storage Assets, allow our East Coast refineries to source WTI-based
crude oils from Western Canada and the Mid-Continent, which we believe, at times, may provide cost
advantages versus traditional Brent-based international crude oils. In support of this rail strategy, we have at
times entered into agreements to lease or purchase crude railcars. In subsequent periods, we have sold or
returned railcars to optimize our railcar portfolio. Our railcar fleet provides transportation flexibility within our
crude oil sourcing strategy that allows our East Coast refineries to process cost advantaged crude from Canada
and the Mid-Continent.
Our operating cost structure is also important to our profitability. Major operating costs include costs
relating to employees and contract labor, energy, maintenance and environmental compliance, and emission
control regulations, including the cost of RINs required for compliance with RFS. The predominant variable
cost is energy, in particular, the price of utilities, natural gas and electricity.
Our operating results are also affected by the reliability of our refinery operations. Unplanned downtime
of our refinery assets generally results in lost margin opportunity and increased maintenance expense. The
financial impact of planned downtime, such as major turnaround maintenance, is managed through a planning
process that considers such things as the margin environment, the availability of resources to perform the
needed maintenance and feed logistics, whereas unplanned downtime does not afford us this opportunity.
Refinery-Specific Information
The following section includes refinery-specific information related to our operations, crude oil
differentials, ancillary costs, and local premiums and discounts.
East Coast Refining System (Delaware City and Paulsboro Refineries). The benchmark refining margin
for the East Coast Refining System is calculated by assuming that two barrels of Dated Brent crude oil are
converted into one barrel of gasoline and one barrel of diesel. We calculate this benchmark using the NYH
market value of reformulated blendstock for oxygenate blending (“RBOB”) and ULSD against the market value
of Dated Brent and refer to the benchmark as the Dated Brent (NYH) 2-1-1 benchmark refining margin. The
East Coast Refining System has a product slate of approximately 35% gasoline, 36% distillate, 2% high-value
Group I lubricants, 1% high-value petrochemicals, with the remaining portion of the product slate comprised of
lower-value products (3% LPGs, 18% black oil and 5% other). For this reason, we believe the Dated Brent
(NYH) 2-1-1 is an appropriate benchmark industry refining margin. The majority of East Coast refining
revenues are generated off NYH-based market prices.
The East Coast Refining System’s realized gross margin on a per barrel basis is projected to differ from
the Dated Brent (NYH) 2-1-1 benchmark refining margin due to the following factors:
•
the system processes a slate of primarily medium and heavy sour crude oils, which has constituted
approximately 50% to 75% of total throughput. The remaining throughput consists of sweet crude oil and
other feedstocks and blendstocks. In addition, we have the capability to process a significant volume of
light, sweet crude oil depending on market conditions. Our total throughput costs have historically priced at
a discount to Dated Brent;
72
•
as a result of the heavy, sour crude slate processed at our East Coast Refining System, we produce
lower value products including sulfur, carbon dioxide and petroleum coke. These products are priced at a
significant discount to RBOB and ULSD; and
•
the Paulsboro refinery produces Group I lubricants, which carry a premium sales price to RBOB and
ULSD, and the black oil is sold as asphalt, which may be sold at a premium or discount to Dated Brent
based on the market.
Toledo Refinery. The benchmark refining margin for the Toledo refinery is calculated by assuming that
four barrels of WTI crude oil are converted into three barrels of gasoline, one-half barrel of ULSD and one-half
barrel of jet fuel. We calculate this refining margin using the Chicago market values of CBOB and ULSD and
the United States Gulf Coast value of jet fuel against the market value of WTI and refer to this benchmark as the
WTI (Chicago) 4-3-1 benchmark refining margin. Our Toledo refinery has a product slate of approximately
54% gasoline, 37% distillate, 4% high-value petrochemicals (including nonene, tetramer, benzene, xylene and
toluene) with the remaining portion of the product slate comprised of lower-value products (3% LPGs and 2%
black oil). For this reason, we believe the WTI (Chicago) 4-3-1 is an appropriate benchmark industry refining
margin. The majority of Toledo revenues are generated off Chicago-based market prices.
The Toledo refinery’s realized gross margin on a per barrel basis has historically differed from the WTI
(Chicago) 4-3-1 benchmark refining margin due to the following factors:
•
the Toledo refinery processes a slate of domestic sweet and Canadian synthetic crude oil. Historically,
Toledo’s blended average crude costs have differed from the market value of WTI crude oil;
•
the Toledo refinery configuration enables it to produce more barrels of product than throughput which
generates a pricing benefit; and
•
the Toledo refinery generates a pricing benefit on some of its refined products, primarily its
petrochemicals.
Chalmette Refinery. The benchmark refining margin for the Chalmette refinery is calculated by assuming
two barrels of LLS crude oil are converted into one barrel of gasoline and one barrel of diesel. We calculate this
benchmark using the US Gulf Coast market value of 87 conventional gasoline and ULSD against the market
value of LLS and refer to this benchmark as the LLS (Gulf Coast) 2-1-1 benchmark refining margin. Our
Chalmette refinery has a product slate of approximately 42% gasoline and 35% distillate, 1% high-value
petrochemicals with the remaining portion of the product slate comprised of lower-value products (9% black
oil, 5% LPGs, and 8% other). For this reason, we believe the LLS (Gulf Coast) 2-1-1 is an appropriate
benchmark industry refining margin. The majority of Chalmette revenues are generated off Gulf Coast-based
market prices.
The Chalmette refinery’s realized gross margin on a per barrel basis has historically differed from the
LLS (Gulf Coast) 2-1-1 benchmark refining margin due to the following factors:
•
the Chalmette refinery has recently processed a slate of primarily light and medium crude oils, which
represents approximately 60% to 75% of total throughput. The remaining throughput consists of heavy
crude oils and other feedstocks and blendstocks; and
•
as a result of the heavy, sour crude slate processed at Chalmette, we produce lower-value products
including sulfur and petroleum coke. These products are priced at a significant discount to 87 conventional
gasoline and ULSD.
73
Torrance Refinery. The benchmark refining margin for the Torrance refinery is calculated by assuming
that four barrels of ANS crude oil are converted into three barrels of gasoline, one-half barrel of diesel and one-
half barrel of jet fuel. We calculate this benchmark using the West Coast Los Angeles market value of
California reformulated blendstock for oxygenate blending (“CARBOB”), CARB diesel and jet fuel and refer to
the benchmark as the ANS (West Coast) 4-3-1 benchmark refining margin. Our Torrance refinery has a product
slate of approximately 59% gasoline and 26% distillate with the remaining portion of the product slate
comprised of lower-value products (3% LPG, 2% black oil and 10% other). For this reason, we believe the ANS
(West Coast) 4-3-1 is an appropriate benchmark industry refining margin. The majority of Torrance revenues
are generated off West Coast Los Angeles-based market prices.
The Torrance refinery’s realized gross margin on a per barrel basis has historically differed from the
ANS (West Coast) 4-3-1 benchmark refining margin due to the following factors:
•
the Torrance refinery has generally processed a slate of primarily heavy sour crude oils, which has
historically constituted approximately 65% to 80% of total throughput. The Torrance crude slate has the
lowest API gravity (typically an API gravity of less than 20 degrees) of all of our refineries. The remaining
throughput consists of other feedstocks and blendstocks; and
•
as a result of the heavy, sour crude slate processed at Torrance, we produce lower-value products
including petroleum coke and sulfur. These products are priced at a significant discount to gasoline and
diesel.
Martinez Refinery. The benchmark refining margin for the Martinez refinery is calculated by assuming
that three barrels of ANS crude oil are converted into two barrels of gasoline, one-quarter barrel of diesel and
three-quarter barrel of jet fuel. We calculate this benchmark using the West Coast San Francisco market value
of CARBOB, CARB diesel and jet fuel and refer to the benchmark as the ANS (West Coast) 3-2-1 benchmark
refining margin. Our Martinez refinery has a product slate of approximately 58% gasoline and 31% distillate
with the remaining portion of the product slate comprised of lower-value products (4% LPG, 3% black oil
petroleum coke and 4% other). For this reason, we believe the ANS (West Coast) 3-2-1 is an appropriate
benchmark industry refining margin. The majority of Martinez revenues are generated off West Coast San
Francisco-based market prices.
The Martinez refinery’s realized gross margin on a per barrel basis has historically differed from the
ANS (West Coast) 4-3-1 benchmark refining margin due to the following factors:
•
the Martinez refinery has generally processed a slate of primarily heavy sour crude oils, which has
historically constituted approximately 45% to 70% of total throughput. The remaining throughput consists
of other feedstocks and blendstocks; and
•
as a result of the heavy, sour crude slate processed at Martinez, we produce lower-value products
including petroleum coke and sulfur. These products are priced at a significant discount to gasoline and
CARB diesel.
74
Results of Operations
The tables below reflect our consolidated financial and operating highlights for the years ended
December 31, 2024, 2023 and 2022 (amounts in millions, except per share data). We operate in two reportable
business segments: Refining and Logistics. Our oil refineries, excluding the assets operated by PBFX, are all
engaged in the refining of crude oil and other feedstocks into petroleum products, and represent the Refining
segment. PBFX is an indirect wholly-owned subsidiary of PBF Energy that operates certain logistics assets such
as crude oil and refined products terminals, pipelines and storage facilities. PBFX’s operations represent the
Logistics segment. We do not separately discuss our results by individual segments as our Logistics segment did
not have any significant third-party revenues and a significant portion of its operating results are eliminated in
consolidation.
PBF Energy
Year Ended December 31,
2024
2023
2022
Revenues
$
33,115.3
$
38,324.8
$
46,830.3
Cost and expenses:
Cost of products and other
30,266.7
32,671.3
39,049.1
Operating expenses (excluding depreciation and
amortization expense as reflected below)
2,606.2
2,694.9
2,599.0
Depreciation and amortization expense
614.6
560.0
503.6
Cost of sales
33,487.5
35,926.2
42,151.7
General and administrative expenses (excluding
depreciation and amortization expense as reflected below)
260.4
362.5
468.7
Depreciation and amortization expense
13.2
11.5
7.5
Change in fair value of contingent consideration, net
(3.3)
(45.8)
48.3
Equity loss in investee
47.4
45.3
—
Loss (gain) on formation of SBR equity method
investment
8.7
(925.1)
—
Loss (gain) on sale of assets
0.4
(1.3)
0.9
Total cost and expenses
33,814.3
35,373.3
42,677.1
Income (loss) from operations
(699.0)
2,951.5
4,153.2
Other income (expense):
Interest expense (net of interest income of $51.2, $75.0,
and $20.6, respectively)
(72.0)
(63.8)
(246.0)
Change in Tax Receivable Agreement liability
—
2.0
(290.3)
Change in fair value of catalyst obligations
—
1.1
(2.0)
Loss on extinguishment of debt
—
(5.7)
(66.1)
Other non-service components of net periodic benefit cost
2.4
0.7
8.8
Income (loss) before income taxes
(768.6)
2,885.8
3,557.6
Income tax (benefit) expense
(228.4)
723.8
584.8
Net income (loss)
(540.2)
2,162.0
2,972.8
Less: net income (loss) attributable to noncontrolling
interests
(6.4)
21.5
96.0
Net income (loss) attributable to PBF Energy Inc.
stockholders
$
(533.8) $
2,140.5
$
2,876.8
Consolidated gross margin
$
(372.2) $
2,398.6
$
4,678.6
Gross refining margin (1)
$
2,487.6
$
5,287.7
$
7,429.9
Net income available to Class A common stock per share:
Basic
$
(4.59) $
17.13
$
23.47
Diluted
$
(4.60) $
16.52
$
22.84
——————————
(1) See Non-GAAP Financial Measures.
75
Operating Highlights
Year Ended December 31,
2024
2023
2022
Key Operating Information
Production (bpd in thousands)
913.1
918.3
937.1
Crude oil and feedstocks throughput (bpd in thousands)
904.0
909.4
925.1
Total crude oil and feedstocks throughput (millions of barrels)
330.9
329.0
337.7
Consolidated gross margin per barrel of throughput
$
(1.13)
$
7.29
$
13.85
Gross refining margin, excluding special items, per barrel of
throughput (1)
$
7.89
$
16.07
$
22.00
Refinery operating expense, per barrel of throughput
$
7.52
$
7.85
$
7.39
Crude and feedstocks (% of total throughput) (2)
Heavy
31 %
27 %
32 %
Medium
38 %
35 %
36 %
Light
17 %
20 %
18 %
Other feedstocks and blends
14 %
18 %
14 %
Total throughput
100 %
100 %
100 %
Yield (% of total throughput)
Gasoline and gasoline blendstocks
47 %
47 %
47 %
Distillates and distillate blendstocks
34 %
34 %
35 %
Lubes
1 %
1 %
1 %
Chemicals
1 %
1 %
1 %
Other
18 %
18 %
17 %
Total yield
101 %
101 %
101 %
——————————
(1) See Non-GAAP Financial Measures.
(2) We define heavy crude oil as crude oil with an API gravity of less than 24 degrees. We define medium crude
oil as crude oil with an API gravity between 24 and 35 degrees. We define light crude oil as crude oil with an
API gravity higher than 35 degrees.
76
The table below summarizes certain market indicators relating to our operating results as reported by Platts, a
division of The McGraw-Hill Companies. Effective RIN basket price is recalculated based on information as
reported by Argus.
Year Ended December 31,
2024
2023
2022
(dollars per barrel, except as noted)
Dated Brent crude oil
$
80.72
$
82.64
$
101.27
West Texas Intermediate (WTI) crude oil
$
75.87
$
77.67
$
94.58
Light Louisiana Sweet (LLS) crude oil
$
78.33
$
80.14
$
96.81
Alaska North Slope (ANS) crude oil
$
80.24
$
82.36
$
98.76
Crack Spreads
Dated Brent (NYH) 2-1-1
$
18.24
$
29.67
$
40.26
WTI (Chicago) 4-3-1
$
16.27
$
23.71
$
31.56
LLS (Gulf Coast) 2-1-1
$
18.21
$
29.13
$
37.56
ANS (West Coast-LA) 4-3-1
$
23.36
$
36.88
$
41.64
ANS (West Coast-SF) 3-2-1
$
24.62
$
36.89
$
41.89
Crude Oil Differentials
Dated Brent (foreign) less WTI
$
4.84
$
4.97
$
6.68
Dated Brent less Maya (heavy, sour)
$
12.31
$
13.71
$
13.95
Dated Brent less WTS (sour)
$
4.85
$
4.99
$
6.98
Dated Brent less ASCI (sour)
$
5.23
$
5.73
$
9.68
WTI less WCS (heavy, sour)
$
14.82
$
18.32
$
21.30
WTI less Bakken (light, sweet)
$
1.39
$
(1.28) $
(4.05)
WTI less Syncrude (light, sweet)
$
0.75
$
(0.91) $
(3.04)
WTI less LLS (light, sweet)
$
(2.45) $
(2.48) $
(2.22)
WTI less ANS (light, sweet)
$
(4.36) $
(4.70) $
(4.17)
Effective RIN basket price
$
3.75
$
7.02
$
7.66
Natural gas (dollars per MMBTU)
$
2.41
$
2.66
$
6.54
2024 Compared to 2023
Overview— PBF Energy net loss was $540.2 million for the year ended December 31, 2024 compared to
net income of $2,162.0 million for the year ended December 31, 2023. Net loss attributable to PBF Energy
stockholders was $533.8 million, or $(4.60) per diluted share, for the year ended December 31, 2024 ($(4.60)
per share on a fully-exchanged, fully-diluted basis based on adjusted fully-converted net loss, or $(3.89) per
share on a fully-exchanged, fully-diluted basis based on adjusted fully-converted net loss excluding special
items, as described below in Non-GAAP Financial Measures) compared to net income attributable to PBF
Energy stockholders of $2,140.5 million, or $16.52 per diluted share, for the year ended December 31, 2023
($16.52 per share on a fully-exchanged, fully-diluted basis based on adjusted fully-converted net income, or
$11.32 per share on a fully-exchanged, fully-diluted basis based on adjusted fully-converted net income
excluding special items, as described below in Non-GAAP Financial Measures). The net income (loss)
attributable to PBF Energy stockholders represents PBF Energy’s equity interest in PBF LLC’s pre-tax income
(loss), less applicable income tax (benefit) expense. PBF Energy’s weighted-average equity interest in PBF
LLC was 99.3% for both the years ended December 31, 2024 and 2023.
77
Our results for the year ended December 31, 2024 were negatively impacted by special items consisting
of a LIFO inventory decrement of $124.5 million, or $92.1 million net of tax, and a decrease to our gain on the
formation of the SBR equity method investment of $8.7 million, or $6.4 million net of tax, partially offset by
our share of the adjustment to the SBR LCM inventory reserve of $18.9 million, or $14.0 million net of tax, and
a change in fair value of contingent consideration of $3.3 million, or $2.4 million net of tax, related to changes
in our earn-out obligation associated with the acquisition of the Martinez refinery and logistic assets (the
“Martinez Contingent Consideration”). Our results for the year ended December 31, 2023 were positively
impacted by special items consisting of a gain on the formation of the SBR equity method investment of $925.1
million, or $684.6 million net of tax, a change in fair value of contingent consideration of $45.8 million, or
$33.9 million net of tax, pre-tax benefit associated with the change in the Tax Receivable Agreement liability of
$2.0 million, or $1.5 million net of tax and a gain on the sale of a parcel of land at our Torrance refinery of $1.7
million or $1.3 million net of tax, partially offset by our share of the SBR LCM inventory reserve of $38.7
million, or $28.6 million net of tax, a $5.7 million, or $4.2 million net of tax, loss on extinguishment of debt
related to the redemption of our 2025 Senior Notes and the amendment and restatement of the Revolving Credit
Facility, and exit costs associated with the early termination of the Inventory Intermediation Agreement of
$13.5 million, or $10.0 million, net of tax.
Excluding the impact of these special items, when comparing our results to the year ended December 31,
2023, we experienced an overall decrease in our refining margins due to unfavorable movements in crack
spreads and crude oil differentials sold at the majority of our refineries. In addition, the planned and unplanned
maintenance experienced at our West Coast refineries during the fourth quarter of 2023 extended into the first
half of 2024. These decreasing metrics combined with the timing of our maintenance activities have negatively
impacted our revenues, gross margin, and operating income in comparison to the prior year.
Revenues— Revenues totaled $33.1 billion for the year ended December 31, 2024 compared to $38.3
billion for the year ended December 31, 2023, a decrease of approximately $5.2 billion or 13.6%. Revenues per
barrel sold were $90.47 and $100.85 for the years ended December 31, 2024 and 2023, respectively, a decrease
of 10.3% directly related to lower hydrocarbon commodity prices. For the year ended December 31, 2024, the
total throughput rates at our East Coast, Mid-Continent, Gulf Coast and West Coast refineries averaged
approximately 305,200 bpd, 140,700 bpd, 162,200 bpd and 295,900 bpd, respectively. For the year ended
December 31, 2023, the total throughput rates at our East Coast, Mid-Continent, Gulf Coast and West Coast
refineries averaged approximately 327,600 bpd, 136,400 bpd, 174,200 bpd and 271,200 bpd, respectively. For
the year ended December 31, 2024, the total barrels sold at our East Coast, Mid-Continent, Gulf Coast and West
Coast refineries averaged approximately 347,700 bpd, 148,500 bpd, 158,700 bpd and 345,300 bpd, respectively.
For the year ended December 31, 2023, the total barrels sold at our East Coast, Mid-Continent, Gulf Coast and
West Coast refineries averaged approximately 373,700 bpd, 148,700 bpd, 187,300 bpd and 340,800 bpd,
respectively.
Overall average throughput rates at our refineries were slightly lower in the year ended December 31,
2024 due to increased maintenance activity and lower demand compared to the same period in 2023. We plan to
continue operating our refineries based on demand and current market conditions. Total refined product barrels
sold were higher than throughput rates, reflecting sales from inventory as well as sales and purchases of refined
products outside our refineries.
78
Consolidated gross margin— Consolidated gross margin totaled $(372.2) million for the year ended
December 31, 2024, compared to $2,398.6 million for the year ended December 31, 2023, a decrease of
$2,770.8 million. Gross refining margin (as described below in Non-GAAP Financial Measures) totaled
$2,487.6 million, or $7.51 per barrel of throughput, for the year ended December 31, 2024 compared to
$5,287.7 million, or $16.07 per barrel of throughput, for the year ended December 31, 2023, a decrease of
approximately $2,800.1 million. Gross refining margin excluding special items totaled $2,612.1 million, or
$7.89 per barrel of throughput, for the year ended December 31, 2024 compared to $5,287.7 million, or $16.07
per barrel of throughput, for the year ended December 31, 2023, a decrease of $2,675.6 million. Consolidated
gross margin and gross refining margin decreased due to unfavorable movements in crack spreads and crude oil
differentials at the majority of our refineries.
Consolidated gross margin and gross refining margin were negatively impacted in the current year by a
LIFO inventory decrement charge of $124.5 million mainly related to our East Coast and Gulf Coast LIFO
inventory layers. During the year ended December 31, 2023, our margin calculations were not impacted by
special items.
Additionally, our results continue to be impacted by significant costs to comply with the RFS. Total RFS
compliance costs were $515.3 million for the year ended December 31, 2024 compared to $762.3 million for
the year ended December 31, 2023.
Average industry margins were unfavorable during the year ended December 31, 2024 in comparison to
the prior year, primarily due to decreased refining margins as a result of unfavorable movements in crack
spreads and crude oil differentials at the majority of our refineries.
Favorable movements in these benchmark crude differentials typically result in lower crude costs and
positively impact our earnings, while reductions in these benchmark crude differentials typically result in higher
crude costs and negatively impact our earnings.
On the East Coast, the Dated Brent (NYH) 2-1-1 industry crack spread was approximately $18.24 per
barrel, or 38.5% lower, in the year ended December 31, 2024, as compared to $29.67 per barrel in the same
period in 2023. Our margins were positively impacted from our refinery specific slate on the East Coast by
strengthened WTI/Bakken differential, which increased by $2.67 per barrel, offset by weakened Dated Brent/
Maya differential, which decreased by $1.40 per barrel compared to the same period in 2023. Additionally, the
WTI/WCS differential decreased to $14.82 per barrel in 2024 compared to $18.32 per barrel in 2023, which
unfavorably impacted our cost of heavy Canadian crude.
Across the Mid-Continent, the WTI (Chicago) 4-3-1 industry crack spread was $16.27 per barrel, or
31.4% lower, in the year ended December 31, 2024, as compared to $23.71 per barrel in the prior year. Our
margins were positively impacted from our refinery specific slate in the Mid-Continent by an increasing WTI/
Bakken differential, which averaged a discount of $1.39 per barrel in the year ended December 31, 2024, as
compared to a premium of $1.28 per barrel in the prior year. Additionally, the WTI/Syncrude differential
averaged a discount of $0.75 per barrel for the year ended December 31, 2024 as compared to a premium of
$0.91 per barrel in the prior year.
On the Gulf Coast, the LLS (Gulf Coast) 2-1-1 industry crack spread was $18.21 per barrel, or 37.5%
lower, in the year ended December 31, 2024 as compared to $29.13 per barrel in the prior year. Margins on the
Gulf Coast were positively impacted from our refinery specific slate by a strengthening WTI/LLS differential,
which averaged a premium of $2.45 per barrel for the year ended December 31, 2024 as compared to a premium
of $2.48 per barrel in the prior year.
79
On the West Coast, the ANS (West Coast) 4-3-1 industry crack spread was $23.36 per barrel, or 36.7%
lower, in the year ended December 31, 2024 as compared to $36.88 per barrel in the prior year. Additionally,
the ANS (West Coast) 3-2-1 industry crack spread was $24.62 per barrel, or 33.3% lower, in the year ended
December 31, 2024 as compared to $36.89 per barrel in the prior year. Our margins on the West Coast were
positively impacted from our refinery specific slate by a strengthening WTI/ANS differential, which averaged a
premium of $4.36 per barrel for the year ended December 31, 2024 as compared to a premium of $4.70 per
barrel in the prior year.
Operating expenses— Operating expenses totaled $2,606.2 million for the year ended December 31,
2024 compared to $2,694.9 million for the year ended December 31, 2023, a decrease of approximately $88.7
million, or 3.3%. Of the total $2,606.2 million in operating expenses, $2,487.8 million, or $7.52 per barrel of
throughput, related to expenses incurred by the Refining segment, while the remaining $118.4 million related to
expenses incurred by the Logistics segment ($2,581.3 million or $7.85 per barrel of throughput, and
$113.6 million of operating expenses for the year ended December 31, 2023 related to the Refining and
Logistics segments, respectively). The decrease in operating expenses was mainly attributable to lower
maintenance and lower energy costs due to a decrease in overall natural gas prices and electricity.
General and administrative expenses— General and administrative expenses totaled $260.4 million for
the year ended December 31, 2024, compared to $362.5 million for the year ended December 31, 2023, a
decrease of $102.1 million or 28.2%. The decrease in general and administrative expenses in comparison to the
year 2023 was due to lower employee-related expenses, including incentive compensation. General and
administrative expenses are comprised of personnel, facilities, and other infrastructure costs necessary to
support our refineries and related logistics assets.
Loss (gain) on formation of SBR equity method investment— There was a loss of $8.7 million for the
year ended December 31, 2024, associated with a reduction of our gain on formation of the SBR equity method
investment. There was a gain of $925.1 million for the year ended December 31, 2023, resulting from the
difference between the carrying value and fair value of the assets associated with the business contributed to
SBR.
Equity loss in investee— There was a loss of $47.4 million and $45.3 million for the years ended
December 31, 2024 and December 31, 2023, respectively, related to our equity share of our investments in
SBR.
Loss (gain) on sale of assets— There was a net loss of $0.4 million for the year ended December 31,
2024 related primarily to the sale of non-operating refinery assets. There was a net gain of $1.3 million for the
year ended December 31, 2023 related primarily to the sale of a parcel of land at our Torrance refinery.
Depreciation and amortization expense— Depreciation and amortization expense totaled $627.8 million
for the year ended December 31, 2024 (including $614.6 million recorded within Cost of sales) compared to
$571.5 million for the year ended December 31, 2023 (including $560.0 million recorded within Cost of sales),
an increase of $56.3 million. The increase was a result of a general increase in our fixed asset base due to capital
projects and turnarounds completed since the end of the prior year.
Change in fair value of contingent consideration, net— Change in fair value of contingent consideration
represented a gain of $3.3 million and $45.8 million for the years ended December 31, 2024 and December 31,
2023, respectively. These gains were primarily related to changes in the estimated fair value of the Martinez
Contingent Consideration.
80
Change in Tax Receivable Agreement liability— There was no change in the Tax Receivable Agreement
liability for the year ended December 31, 2024. Changes in the Tax Receivable Agreement liability for the year
ended December 31, 2023 represented a benefit of $2.0 million as a result of changes in the deferred tax asset
valuation allowance recorded in accordance with Accounting Standards Codification (“ASC”) 740, Income
Taxes (“ASC 740”), related to the reduction of deferred tax assets associated with the payments made or
expected to be made in connection with the Tax Receivable Agreement liability.
Change in fair value of catalyst obligations— Change in fair value of catalyst obligations represented a
gain of $1.1 million for the year ended December 31, 2023. This gain related to the change in fair value of the
precious metals underlying the sale and leaseback of our refineries’ precious metal catalysts, which we were
obligated to repurchase at fair market value upon lease termination. During 2023, we settled our remaining
outstanding precious metal financing arrangement.
Loss on extinguishment of debt— There was a loss on extinguishment of debt of $5.7 million in the year
ended December 31, 2023, related to the redemption of the 2025 Senior Notes and the amendment and
restatement of the Revolving Credit Agreement.
Interest expense, net— Interest expense, net totaled $72.0 million for the year ended December 31, 2024,
compared to $63.8 million for the year ended December 31, 2023, an increase of $8.2 million. The net increase
is mainly attributable to lower interest income earned during the year ended December 31, 2024 driven by lower
interest rates in comparison to the prior year, as well as higher outstanding borrowings on our Revolving Credit
Facility, partially offset by lower interest expense due to the redemption of the PBFX 2023 Senior Notes during
the first quarter of 2023, the redemption of the 2025 Senior Notes in the third quarter of 2023, and the issuance
of our 2030 Senior Notes during the third quarter of 2023 at a reduced principal amount. For the year ended
December 31, 2024, interest expense includes interest on long-term debt, letter of credit fees associated with the
purchase of certain crude oils and the amortization of deferred financing costs.
Income tax (benefit) expense— PBF LLC is organized as a limited liability company and PBFX is a
partnership, both of which are treated as “flow-through” entities for federal income tax purposes and therefore
are not subject to income tax. However, two subsidiaries of Chalmette Refining and our Canadian subsidiary,
PBF Energy Limited, are treated as C-Corporations for income tax purposes and may incur income taxes with
respect to their earnings, as applicable. The members of PBF LLC are required to include their proportionate
share of PBF LLC’s taxable income or loss, on their respective tax returns. PBF LLC generally makes
distributions to its members, per the terms of PBF LLC’s amended and restated limited liability company
agreement, related to such taxes on a pro-rata basis. PBF Energy recognizes an income tax expense or benefit in
our consolidated financial statements based on PBF Energy’s allocable share of PBF LLC’s pre-tax income or
loss, which was approximately 99.3% on a weighted-average basis for both the year ended December 31, 2024
and 2023. PBF Energy’s Consolidated Financial Statements do not reflect any benefit or provision for income
taxes on the pre-tax income or loss attributable to the noncontrolling interest in PBF LLC (although, as
described above, PBF LLC must make tax distributions to all its members on a pro-rata basis). PBF Energy’s
effective tax rate, including the impact of noncontrolling interests, for the years ended December 31, 2024 and
2023 was 29.7% and 25.1%, respectively.
81
Noncontrolling Interest— PBF Energy is the sole managing member of, and has a controlling interest in,
PBF LLC. As the sole managing member of PBF LLC, PBF Energy operates and controls all of the business
and affairs of PBF LLC and its subsidiaries. PBF Energy consolidates the financial results of PBF LLC and its
subsidiaries. With respect to the consolidation of PBF LLC, we record a noncontrolling interest for the
economic interest in PBF LLC held by members other than PBF Energy, with respect to the consolidation of
PBFX, we recorded a noncontrolling interest for the economic interests in PBFX held by the public unitholders
of PBFX prior to the close of the Merger Transaction, and with respect to the consolidation of PBF Holding, we
record a 20% noncontrolling interest for the ownership interests in two subsidiaries of Chalmette Refining held
by a third-party. The total noncontrolling interest on the Consolidated Statements of Operations represents the
portion of the Company’s earnings or loss attributable to the economic interests held by members of PBF LLC
other than PBF Energy, by the public common unitholders of PBFX prior to the close of the Merger Transaction
and by the third-party stockholders of certain of Chalmette Refining’s subsidiaries. The total noncontrolling
interest on the Consolidated Balance Sheets represents the portion of the Company’s net assets attributable to
the economic interests held by the members of PBF LLC other than PBF Energy, and by the third-party
stockholders of the two Chalmette Refining subsidiaries. PBF Energy’s weighted-average equity noncontrolling
interest ownership percentage in PBF LLC for both the year ended December 31, 2024 and 2023 was
approximately 0.7%. The carrying amount of the noncontrolling interest on our Consolidated Balance Sheets
attributable to the noncontrolling interest is not equal to the noncontrolling interest ownership percentage due to
the effect of income taxes and related agreements that pertain solely to PBF Energy.
Non-GAAP Financial Measures
Management uses certain financial measures to evaluate our operating performance that are calculated
and presented on the basis of methodologies other than in accordance with GAAP (“Non-GAAP”). These
measures should not be considered a substitute for, or superior to, measures of financial performance prepared
in accordance with GAAP, and our calculations thereof may not be comparable to similarly entitled measures
reported by other companies.
Special Items
The Non-GAAP measures presented include Adjusted Fully-Converted Net Income (Loss) excluding
special items, gross refining margin excluding special items, EBITDA excluding special items and net debt to
capitalization ratio excluding special items. Special items for the periods presented relate to a LIFO inventory
decrement, our share of the SBR LCM inventory adjustment, net changes in fair value of contingent
consideration, loss (gain) on formation of the SBR equity method investment, loss on extinguishment of debt
and termination of the Inventory Intermediation Agreement, changes in the Tax Receivable Agreement liability,
gains on land sales, and net tax benefit on remeasurement of deferred tax assets. See “Notes to Non-GAAP
Financial Measures” below for more details on all special items disclosed. Although we believe that Non-
GAAP financial measures, excluding the impact of special items, provide useful supplemental information to
investors regarding the results and performance of our business and allow for helpful period-over-period
comparisons, such Non-GAAP measures should only be considered as a supplement to, and not as a substitute
for, or superior to, the financial measures prepared in accordance with GAAP.
82
Adjusted Fully-Converted Net Income (Loss) and Adjusted Fully-Converted Net Income (Loss) Excluding
Special Items
PBF Energy utilizes results presented on an Adjusted Fully-Converted basis that reflect an assumed
exchange of all PBF LLC Series A Units for shares of PBF Energy Class A common stock. In addition, we
present results on an Adjusted Fully-Converted basis excluding special items as described above. We believe
that these Adjusted Fully-Converted measures, when presented in conjunction with comparable GAAP
measures, are useful to investors to compare PBF Energy results across different periods and to facilitate an
understanding of our operating results.
Neither Adjusted Fully-Converted Net Income (Loss) nor Adjusted Fully-Converted Net Income (Loss)
excluding special items should be considered an alternative to net income (loss) presented in accordance with
GAAP. Adjusted Fully-Converted Net Income (Loss) and Adjusted Fully-Converted Net Income (Loss)
excluding special items presented by other companies may not be comparable to our presentation, since each
company may define these terms differently. The differences between Adjusted Fully-Converted and GAAP
results are as follows:
1.
Assumed exchange of all PBF LLC Series A Units for shares of PBF Energy Class A common stock. As a
result of the assumed exchange of all PBF LLC Series A Units, the noncontrolling interest related to
these units is converted to controlling interest. Management believes that it is useful to provide the per-
share effect associated with the assumed exchange of all PBF LLC Series A Units.
2.
Income Taxes. Prior to PBF Energy’s IPO, PBF Energy was organized as a limited liability company
treated as a “flow-through” entity for income tax purposes, and even after PBF Energy’s IPO, not all of
its earnings are subject to corporate-level income taxes. Adjustments have been made to the Adjusted
Fully-Converted tax provisions and earnings to assume that PBF Energy had adopted its post-IPO
corporate tax structure for all periods presented and is taxed as a C-corporation in the U.S. at the
prevailing corporate rates. These assumptions are consistent with the assumption in clause 1 above that
all PBF LLC Series A Units are exchanged for shares of PBF Energy Class A common stock, as the
assumed exchange would change the amount of PBF Energy’s earnings that are subject to corporate
income tax.
83
The following table reconciles PBF Energy’s Adjusted Fully-Converted results with its results presented
in accordance with GAAP for the years ended December 31, 2024, 2023 and 2022 (in millions, except share and
per share amounts):
Year Ended December 31,
2024
2023
2022
Net income (loss) attributable to PBF Energy Inc. stockholders
$
(533.8) $
2,140.5
$
2,876.8
Less: Income allocated to participating securities
0.1
—
—
Income (loss) available to PBF Energy Inc. stockholders - basic
(533.9)
2,140.5
2,876.8
Add: Net income (loss) attributable to noncontrolling interest (1)
(6.0)
20.5
27.9
Less: Income tax benefit (expense) (2)
1.6
(5.3)
(7.2)
Adjusted fully-converted net income (loss)
$
(538.3) $
2,155.7
$
2,897.5
Special Items: (3)
Add: LCM inventory adjustment - SBR
(18.9)
38.7
—
Add: LIFO inventory decrement
124.5
—
—
Add: Change in fair value of contingent consideration, net
(3.3)
(45.8)
48.3
Add: Loss (gain) on formation of SBR equity method investment
8.7
(925.1)
—
Add: Loss on extinguishment of debt and termination of Inventory
Intermediation Agreement
—
19.2
66.1
Add: Gain on land sales
—
(1.7)
—
Add: Change in Tax Receivable Agreement liability
—
(2.0)
290.3
Add: Net tax benefit on remeasurement of deferred tax assets
—
—
(233.8)
Less: Recomputed income tax on special items
(28.8)
238.3
(104.9)
Adjusted fully-converted net income (loss) excluding special items
$
(456.1) $
1,477.3
$
2,963.5
Weighted-average shares outstanding of PBF Energy Inc.
116,248,827
124,953,858
122,598,076
Conversion of PBF LLC Series A Units (4)
862,780
899,519
917,991
Common stock equivalents (5)
—
4,656,071
3,344,039
Fully-converted shares outstanding—diluted
117,111,607
130,509,448
126,860,106
Diluted net income (loss) per share
$
(4.60) $
16.52
$
22.84
Adjusted fully-converted net income (loss) per fully exchanged,
fully diluted shares outstanding (5)
$
(4.60) $
16.52
$
22.84
Adjusted fully-converted net income (loss) excluding special items
per fully exchanged, fully diluted shares outstanding (3) (5)
$
(3.89) $
11.32
$
23.36
——————————
See Notes to Non-GAAP Financial Measures.
84
Gross Refining Margin and Gross Refining Margin Excluding Special Items
Gross refining margin is defined as consolidated gross margin excluding refining depreciation, refining
operating expenses, and gross margin of the Logistic segment. We believe both gross refining margin and gross
refining margin excluding special items are important measures of operating performance and provide useful
information to investors because they are helpful metric comparisons to the industry refining margin
benchmarks, as the refining margin benchmarks do not include a charge for refining operating expenses and
depreciation. In order to assess our operating performance, we compare our gross refining margin (revenues less
cost of products and other) to industry refining margin benchmarks and crude oil prices as defined in the table
below.
Neither gross refining margin nor gross refining margin excluding special items should be considered an
alternative to consolidated gross margin, income from operations, net cash flows from operating activities or
any other measure of financial performance or liquidity presented in accordance with GAAP. Gross refining
margin and gross refining margin excluding special items presented by other companies may not be comparable
to our presentation, since each company may define these terms differently. The following table presents our
GAAP calculation of gross margin and a reconciliation of gross refining margin to the most directly comparable
GAAP financial measure, consolidated gross margin, on a historical basis, as applicable, for each of the periods
indicated (in millions, except per barrel amounts):
Year Ended December 31,
2024
2023
2022
$
per barrel
of
throughput
$
per barrel
of
throughput
$
per barrel
of
throughput
Calculation of consolidated gross
margin:
Revenues
$ 33,115.3 $
100.08
$ 38,324.8 $
116.48
$ 46,830.3 $
138.69
Less: Cost of sales
33,487.5
101.21
35,926.2
109.19
42,151.7
124.84
Consolidated gross margin
$
(372.2) $
(1.13) $
2,398.6 $
7.29
$
4,678.6 $
13.85
Reconciliation of consolidated gross
margin to gross refining margin:
Consolidated gross margin
$
(372.2) $
(1.13) $
2,398.6 $
7.29
$
4,678.6 $
13.85
Add: Logistics operating expense
135.9
0.41
131.9
0.40
121.4
0.36
Add: Logistics depreciation expense
36.2
0.11
36.1
0.11
36.7
0.11
Less: Logistics gross margin
(378.5)
(1.15)
(384.1)
(1.17)
(369.3)
(1.09)
Add: Refining operating expenses
2,487.8
7.52
2,581.3
7.85
2,495.6
7.39
Add: Refining depreciation expense
578.4
1.75
523.9
1.59
466.9
1.38
Gross refining margin
$
2,487.6 $
7.51
$
5,287.7 $
16.07
$
7,429.9 $
22.00
Special Items: (3)
Add: LIFO inventory decrement
124.5
0.38
—
—
—
—
Gross refining margin excluding
special items
$
2,612.1 $
7.89
$
5,287.7 $
16.07
$
7,429.9 $
22.00
——————————
See Notes to Non-GAAP Financial Measures.
85
EBITDA, EBITDA Excluding Special Items and Adjusted EBITDA
Our management uses earnings before interest, income taxes, depreciation and amortization
(“EBITDA”), EBITDA excluding special items and Adjusted EBITDA as measures 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 planning and forecasting overall expectations and for evaluating actual results against
such expectations, and in communications with our Board of Directors, creditors, analysts and investors
concerning our financial performance. Our outstanding indebtedness for borrowed money and other contractual
obligations also include similar measures as a basis for certain covenants under those agreements which may
differ from the Adjusted EBITDA definition described below.
EBITDA, EBITDA excluding special items and Adjusted EBITDA are not presentations made in
accordance with GAAP and our computation of EBITDA, EBITDA excluding special items and Adjusted
EBITDA may vary from others in our industry. In addition, Adjusted EBITDA contains some, but not all,
adjustments that are taken into account in the calculation of the components of various covenants in the
agreements governing our senior notes and other credit facilities. EBITDA, EBITDA excluding special items
and Adjusted EBITDA should not be considered as alternatives to income from operations or net income as
measures of operating performance. In addition, EBITDA, EBITDA excluding special items and Adjusted
EBITDA are not presented as, and should not be considered, an alternative to cash flows from operations as a
measure of liquidity. Adjusted EBITDA is defined as EBITDA before adjustments for items such as stock-
based compensation expense, change in the fair value of catalyst obligations, LIFO inventory decrement, our
share of the SBR LCM inventory adjustment, changes in the Tax Receivable Agreement liability, net change in
the fair value of contingent consideration, loss (gain) on the formation of the SBR equity method investment,
loss on extinguishment of debt, gain on land sales, and certain other non-cash items. Other companies, including
other companies in our industry, may calculate EBITDA, EBITDA excluding special items and Adjusted
EBITDA differently than we do, limiting their usefulness as comparative measures. EBITDA, EBITDA
excluding special items and Adjusted EBITDA also have limitations as analytical tools and should not be
considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these
limitations include that EBITDA, EBITDA excluding special items and Adjusted EBITDA:
•do not reflect depreciation expense or our cash expenditures, or future requirements, for capital
expenditures or contractual commitments;
•do not reflect changes in, or cash requirements for, our working capital needs;
•do not reflect our interest expense, or the cash requirements necessary to service interest or principal
payments, on our debt;
•do not reflect realized and unrealized gains and losses from certain hedging activities, which may have a
substantial impact on our cash flow;
•do not reflect certain other non-cash income and expenses; and
•exclude income taxes that may represent a reduction in available cash.
86
The following tables reconcile net income (loss) as reflected in PBF Energy’s results of operations to
EBITDA, EBITDA excluding special items and Adjusted EBITDA for the periods presented (in millions):
Year Ended December 31,
2024
2023
2022
Reconciliation of net income (loss) to EBITDA and EBITDA
excluding special items:
Net income (loss)
$
(540.2) $
2,162.0
$
2,972.8
Add: Depreciation and amortization expense
627.8
571.5
511.1
Add: Interest expense, net
72.0
63.8
246.0
Add: Income tax (benefit) expense
(228.4)
723.8
584.8
EBITDA
$
(68.8) $
3,521.1
$
4,314.7
Special Items: (3)
Add: LCM inventory adjustment - SBR
(18.9)
38.7
—
Add: LIFO inventory decrement
124.5
—
—
Add: Change in fair value of contingent consideration, net
(3.3)
(45.8)
48.3
Add: Loss (gain) on formation of SBR equity method investment
8.7
(925.1)
—
Add: Loss on extinguishment of debt
—
5.7
66.1
Add: Gain on land sales
—
(1.7)
—
Add: Change in Tax Receivable Agreement liability
—
(2.0)
290.3
EBITDA excluding special items
$
42.2
$
2,590.9
$
4,719.4
Reconciliation of EBITDA to Adjusted EBITDA:
EBITDA
$
(68.8) $
3,521.1
$
4,314.7
Add: Stock based compensation
44.3
51.5
54.3
Add: Change in fair value of catalyst obligations
—
(1.1)
2.0
Special Items: (3)
Add: LCM inventory adjustment - SBR
(18.9)
38.7
—
Add: LIFO inventory decrement
124.5
—
—
Add: Change in fair value of contingent consideration, net
(3.3)
(45.8)
48.3
Add: Loss (gain) on formation of SBR equity method investment
8.7
(925.1)
—
Add: Loss on extinguishment of debt
—
5.7
66.1
Add: Gain on land sales
—
(1.7)
—
Add: Change in Tax Receivable Agreement liability
—
(2.0)
290.3
Adjusted EBITDA
$
86.5
$
2,641.3
$
4,775.7
——————————
See Notes to Non-GAAP Financial Measures.
87
Net Debt to Capitalization Ratio and Net Debt to Capitalization Ratio Excluding Special Items
The total debt to capitalization ratio is calculated by dividing total debt by the sum of total debt and total equity.
This ratio is a measurement that management believes is useful to investors in analyzing our leverage. Net debt
and the net debt to capitalization ratio are Non-GAAP measures. Net debt is calculated by subtracting cash and
cash equivalents from total debt. Total capitalization is calculated by adding total debt and total equity. We
believe these measurements are also useful to investors since we have the ability to and may decide to use a
portion of our cash and cash equivalents to retire or pay down our debt. Additionally, we have also presented
the total debt to capitalization and net debt to capitalization ratios excluding the cumulative effects of special
items on equity.
December 31,
December 31,
2024
2023
Balance Sheet Data:
Cash and cash equivalents
$
536.1
$
1,783.5
Inventories
2,595.3
3,183.1
Total assets
12,703.2
14,387.8
Total debt
1,457.3
1,245.9
Net debt
921.2
(537.6)
Total equity
5,678.6
6,631.3
Total equity excluding special items (6)
4,686.8
5,557.4
Total capitalization
7,135.9
7,877.2
Total debt to capitalization ratio
20 %
16 %
Total debt to capitalization ratio, excluding special items (6)
24 %
18 %
Net debt to capitalization ratio*
14 %
(9) %
Net debt to capitalization ratio, excluding special items* (6)
16 %
(11) %
* Negative ratio exists at December 31, 2023 as cash was in excess of debt.
——————————
See Notes to Non-GAAP Financial Measures.
88
Notes to Non-GAAP Financial Measures
The following notes are applicable to the Non-GAAP Financial Measures above:
(1)
Represents the elimination of the noncontrolling interest associated with the ownership by the members
of PBF LLC other than PBF Energy, as if such members had fully exchanged their PBF LLC Series A
Units for shares of PBF Energy Class A common stock.
(2)
Represents an adjustment to reflect PBF Energy’s annualized statutory corporate tax rate of
approximately 26.0% for both 2024 and 2023, and 25.9% for 2022, applied to net income (loss)
attributable to noncontrolling interest for all periods presented. The adjustment assumes the full exchange
of existing PBF LLC Series A Units as described in (1) above.
(3)
Special items:
SBR LCM Inventory Adjustment - The LCM adjustment is a GAAP requirement related to inventory
valuation that mandates inventory to be stated at the lower of cost or market. During the years ended
December 31, 2024 and December 31, 2023, SBR recorded adjustments to the LCM, which increased
and decreased its income from operations by $37.7 million and $77.4 million, respectively. Our Equity
loss in investee includes our 50% share of these adjustments. For the years ended December 31, 2024 and
December 31, 2023, these LCM adjustments increased and decreased our income from operations by
$18.9 million and $38.7 million, respectively ($14.0 million and $28.6 million, respectively, net of tax).
There were no such adjustments in 2022.
LIFO inventory decrement - The Company recorded a pre-tax charge to cost of products and other related
to a LIFO inventory layer decrement. The majority of the decrement related to our East Coast and Gulf
Coast LIFO inventory layers. These charges decreased income from operations and net income by $124.5
million and $92.1 million, respectively, for the year ended December 31, 2024. Decrements recorded in
the years ended December 31, 2023 and December 31, 2022 were de minimis.
Change in fair value of contingent consideration, net - During the year ended December 31, 2024, we
recorded a net change in fair value of the Martinez Contingent Consideration, which increased income
from operations and net income by $3.3 million and $2.4 million, respectively. During the year ended
December 31, 2023, we recorded a net change in fair value of the Martinez Contingent Consideration,
which increased income from operations and net income by $45.8 million and $33.9 million,
respectively. During the year ended December 31, 2022, we recorded a net change in fair value of the
Martinez Contingent Consideration, offset by the recognition of contingent assets associated with the
acquisition. These changes in estimate decreased income from operations and net income by $48.3
million and $35.8 million, respectively.
Loss (gain) on formation of SBR equity method investment - During the year ended December 31, 2024,
we recorded a reduction of our gain associated with the formation of the SBR equity method investment,
which decreased income from operations and net income by $8.7 million and $6.4 million, respectively.
During the year ended December 31, 2023, we recorded a net gain resulting from the difference between
the carrying value and the fair value of the assets associated with the business contributed to SBR, which
increased income from operations and net income by $925.1 million and $684.6 million, respectively.
There were no such gains in 2022.
89
Loss on extinguishment of debt and termination of Inventory Intermediation Agreement- During the year
ended December 31, 2023, we recorded a pre-tax loss on extinguishment of debt related to the
redemption of our 2025 Senior Notes and the amendment and restatement of the Revolving Credit
Facility, which decreased income before income taxes and net income by $5.7 million and $4.2 million,
respectively. During the year ended December 31, 2022, we recorded a net pre-tax loss on
extinguishment of debt related to the redemption of the 2025 Senior Secured Notes, partially offset by the
gain recognized on the repurchase of a portion of each of the 2028 Senior Notes and the 2025 Senior
Notes, which decreased income before income taxes and net income by $66.1 million and $49.0 million,
respectively. There were no such losses in 2024.
During the year ended December 31, 2023, in conjunction with the early termination of the
Inventory Intermediation Agreement, we incurred certain one-time exit costs, which decreased income
before income taxes and net income by $13.5 million and $10.0 million, respectively. These costs are
included within Interest expense, net, in our Consolidated Statements of Operations.
Gain on land sales - During the year ended December 31, 2023, we recorded a gain on the sale of a
separate parcel of real property acquired as part of the Torrance refinery, but not part of the refinery
itself, which increased income from operations and net income by $1.7 million and $1.3 million,
respectively. There were no such gains in any other periods presented.
Change in Tax Receivable Agreement liability - During the year ended December 31, 2024, there was no
change in the Tax Receivable Agreement liability. During the year ended December 31, 2023, we
recorded a change in the Tax Receivable Agreement liability that increased income before income taxes
and net income by $2.0 million and $1.5 million, respectively. During the year ended December 31,
2022, PBF Energy recorded a change in the Tax Receivable Agreement liability that decreased income
before taxes and net income by $290.3 million and $215.1 million, respectively. The changes in the Tax
Receivable Agreement liability reflect charges or benefits attributable to changes in PBF Energy’s
obligation under the Tax Receivable Agreement due to factors out of our control such as changes in tax
rates, as well as periodic adjustments to our liability based, in part, on an updated estimate of the amounts
that we expect to pay, using assumptions consistent with those used in our concurrent estimate of the
deferred tax asset valuation allowance.
Net tax benefit on remeasurement of deferred tax assets - The deferred tax valuation allowance was
reduced to zero as of December 31, 2022, therefore, there was no impact to our financial statements
related to the remeasurement of deferred tax assets as of December 31, 2024 and December 31, 2023.
During the year ended December 31, 2022, we recorded a decrease to our deferred tax valuation
allowance of $308.5 million (reducing our deferred tax valuation allowance to zero), in accordance with
ASC 740, of which $233.8 million related to a tax benefit with respect to the remeasurement of deferred
tax assets and the balance related to our net changes in the Tax Receivable Agreement liability.
Recomputed income tax on special items - The income tax impact on these special items, other than the
net tax benefit special item discussed above, is calculated using the tax rates shown in (2) above.
(4)
Represents an adjustment to weighted-average diluted shares outstanding to assume the full exchange of
existing PBF LLC Series A Units as described in (1) above.
90
(5)
Represents weighted-average diluted shares outstanding assuming the conversion of all common stock
equivalents, including options and warrants for PBF LLC Series A Units and performance share units and
options for shares of PBF Energy Class A common stock as calculated under the treasury stock method
(to the extent the impact of such exchange would not be anti-dilutive) for the years ended December 31,
2024, 2023 and 2022, respectively. Common stock equivalents exclude the effects of performance share
units and options and warrants to purchase 4,413,417, 18,431 and 3,877,035 shares of PBF Energy Class
A common stock and PBF LLC Series A Units because they are anti-dilutive for the years ended
December 31, 2024, 2023 and 2022, respectively. For periods showing a net loss, all common stock
equivalents and unvested restricted stock are considered anti-dilutive.
(6)
Total Equity excluding special items is calculated in the table below:
December 31,
December 31,
2024
2023
(in millions)
Total equity
$
5,678.6
$
6,631.3
Special Items (Note 4)
Add: LCM inventory adjustment - SBR
19.8
38.7
Add: LIFO inventory decrement
207.5
83.0
Add: Change in fair value of contingent consideration, net
(62.1)
(58.8)
Add: Gain on formation of SBR equity method investment
(916.4)
(925.1)
Add: Cumulative historical equity adjustments (a)
(576.9)
(576.9)
Less: Recomputed income tax on special items
336.3
365.2
Net impact of special items to equity
(991.8)
(1,073.9)
Total equity excluding special items
$
4,686.8
$
5,557.4
(a) Refer to the Company’s 2023 Annual Report on Form 10-K (“Notes to Non-GAAP Financial Measures”
within Management’s Discussion and Analysis of Financial Condition and Results of Operations) for a listing of
special items included in cumulative historical equity adjustments prior to 2024.
91
Liquidity and Capital Resources
Overview
Our primary sources of liquidity are our cash flows from operations, cash and cash equivalents and
borrowing availability under our credit facility, as described below. We believe that our cash flows from
operations and available capital resources will be sufficient to meet our and our subsidiaries’ capital
expenditures, working capital needs, dividend payments, debt service requirements, share repurchases under our
share repurchase program, as well as PBF Energy’s obligations under the Tax Receivable Agreement, for the
next twelve months. However, our ability to generate sufficient cash flow from operations depends, in part, on
petroleum oil market pricing and general economic, political and other factors beyond our control. As of
December 31, 2024, we are in compliance with all covenants, including financial covenants, in all our debt
agreements.
Cash Flow Analysis
Cash Flows from Operating Activities
Net cash provided by operating activities was $43.4 million for the year ended December 31, 2024
compared to net cash provided by operating activities of $1,338.5 million for the year ended December 31,
2023. Our operating cash flows for the year ended December 31, 2024 included depreciation and amortization
of $643.0 million, pension and other post-retirement benefit costs of $51.9 million, loss from equity method
investment of $47.4 million, stock-based compensation of $44.3 million, loss on formation of the SBR equity
method investment of $8.7 million, and loss on sale of assets of $0.4 million, partially offset by our net loss of
$540.2 million, deferred income taxes of $239.2 million, and a net change in the fair value of the Martinez
Contingent Consideration of $3.3 million. In addition, net changes in operating assets and liabilities reflected
cash proceeds of $30.4 million driven by the timing of inventory purchases and collections of accounts
receivable.
Our operating cash flows for the year ended December 31, 2023 included our net income of $2,162.0
million, depreciation and amortization of $591.6 million, deferred income taxes of $537.0 million, stock-based
compensation of $51.5 million, pension and other post-retirement benefit costs of $47.9 million, loss from
equity method investment of $45.3 million and loss on extinguishment of debt primarily related to the
redemption of our 2025 Senior Notes and the amendment and restatement of the Revolving Credit Facility of
$5.7 million, partially offset by a gain on formation of the SBR equity method investment of $925.1 million, net
change in the fair value of the Martinez Contingent Consideration of $45.8 million, change in the Tax
Receivable Agreement liability of $2.0 million, gain on sale of assets of $1.3 million, and changes in the fair
value of our catalyst obligations of $1.1 million. In addition, net changes in operating assets and liabilities
reflected uses of cash of $1,127.2 million driven by inventory purchases and payments for accrued expenses.
The change in accrued expenses was due primarily to a decrease in renewable energy and emissions obligations,
as a result of a decrease in our unfunded RINs obligation.
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Net cash provided by operating activities was $1,338.5 million for the year ended December 31, 2023
compared to net cash provided by operating activities of $4,772.0 million for the year ended December 31,
2022. Our operating cash flows for the year ended December 31, 2022 included our net income of $2,972.8
million, and net changes in operating assets and liabilities reflecting cash proceeds of $341.0 million, primarily
driven by timing of payments for accrued expenses. Change in accrued expenses was due primarily to an
increase in renewable energy credit and emissions obligations, as a result of an increase in our unfunded RINs
obligation as of December 31, 2022. Our overall increase in cash provided by operating activities also included
depreciation and amortization of $533.9 million, deferred income taxes of $420.2 million, change in the Tax
Receivable Agreement liability of $290.3 million, net loss on extinguishment of debt primarily related to the
redemption of our 2025 Senior Secured Notes of $66.1 million, stock-based compensation of $54.3 million, net
change in the fair value of contingent consideration of $48.3 million, pension and other post-retirement benefits
costs of $47.6 million, change in the fair value of our catalyst obligations of $2.0 million, and loss on sale of
assets of $0.9 million, partially offset by a net non-cash charges related to the change in the fair value of our
inventory repurchase obligations of $5.4 million.
Cash Flows from Investing Activities
Net cash used in investing activities was $1,041.5 million for the year ended December 31, 2024
compared to $338.6 million for the year ended December 31, 2023. The net cash flows used in investing
activities for the year ended December 31, 2024 was comprised of expenditures for refinery turnarounds of
$576.7 million, capital expenditures totaling $390.9 million, expenditures for other assets of $40.7 million and
contributions to our equity method investee of $35.0 million, partially offset by return of capital from our equity
method investee of $1.8 million. Net cash used in investing activities for the year ended December 31, 2023 was
comprised of capital expenditures totaling $659.6 million, expenditures for refinery turnarounds of $473.5
million, expenditures for other assets of $40.5 million, contributions to our equity method investee of $15.4
million, partially offset by return of capital from our equity method investee of $846.0 million and proceeds
from the sale of assets of $4.4 million.
Net cash used in investing activities was $338.6 million for the year ended December 31, 2023 compared
to $1,010.9 million for the year ended December 31, 2022. Net cash used in investing activities for the year
ended December 31, 2022 was comprised of capital expenditures totaling $633.3 million, expenditures for
refinery turnarounds of $311.6 million and expenditures for other assets of $66.0 million.
Cash Flows from Financing Activities
Net cash used in financing activities was $249.3 million for the year ended December 31, 2024 compared
to net cash used in financing activities of $1,420.0 million for the year ended December 31, 2023. For the year
ended December 31, 2024, net cash used in financing activities consisted of share repurchases of PBF Energy’s
Class A common stock of $329.1 million, dividends and distributions of $120.6 million, payments of insurance
premium financing of $111.9 million, payments on finance leases of $12.2 million, and deferred financing
costs and other costs of $0.1 million, partially offset by cash proceeds from the Revolving Credit Facility of
$200.0 million, proceeds from insurance premium financing of $123.2 million, and transactions made in
connection with stock-based compensation plans of $1.4 million. For the year ended December 31, 2023, net
cash used in financing activities consisted of the redemption of our 2025 Senior Notes of $666.2 million, share
repurchases of PBF Energy’s Class A common stock of $532.5 million, redemption of the PBFX 2023 Senior
Notes of $525.0 million, dividends and distributions of $111.1 million, payments related to the Martinez
Contingent Consideration of $80.1 million, deferred financing costs and other costs of $35.8 million, payments
on finance leases of $14.1 million, and settlement of the final precious metal catalyst obligation of $3.1 million,
partially offset by cash proceeds of $496.6 million from the issuance of the 2030 Senior Notes, net of discount,
transactions made in connection with stock-based compensation plans of $38.3 million, and proceeds from
insurance premium financing of $13.0 million.
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Net cash used in financing activities was $1,420.0 million for the year ended December 31, 2023
compared to net cash used in financing activities of $2,899.0 million for the year ended December 31, 2022. For
the year ended December 31, 2022, net cash used in financing activities consisted of the redemption of the 2025
Senior Secured Notes of $1,307.4 million, net repayments on the Revolving Credit Facility of $900.0 million,
the purchase of PBFX publicly held shares in connection with the Merger Transaction of $303.7 million, share
repurchases of PBF Energy’s Class A common stock of $156.4 million, net repayments on the PBFX Revolving
Credit Facility of $100.0 million, dividends and distributions of $73.6 million, settlements of precious metal
catalyst obligations of $56.2 million, deferred financing costs and other costs of $31.3 million, $25.9 million
related to the repurchase of the principal amount outstanding of the 2028 Senior Notes and the 2025 Senior
Notes, excluding accrued interest, payments on finance leases of $11.3 million, and PBFX Contingent
Consideration payments of $3.1 million, partially offset by transactions made in connection with stock-based
compensation plans of $67.8 million, and proceeds from insurance premium financing of $2.1 million.
Capitalization
Our capital structure was comprised of the following as of December 31, 2024 (in millions):
December 31, 2024
Debt: (1)
2028 Senior Notes
$
801.6
2030 Senior Notes
500.0
Revolving Credit Facility
200.0
Total debt
$
1,501.6
Unamortized deferred financing costs
(41.6)
Unamortized discount
(2.7)
Total debt, net of unamortized deferred financing costs and discount
$
1,457.3
Total Equity
5,678.6
Total Capitalization (2)
$
7,135.9
_______________________________________________
(1) Refer to “Note 9 - Credit Facilities and Debt” of our Notes to Consolidated Financial Statements for further
disclosure related to debt.
(2) Total Capitalization refers to the sum of debt plus total equity.
Revolving Credit Facility Overview
One of our primary sources of liquidity is our available borrowing capacity under our Revolving Credit
Facility. As of December 31, 2024, we had $536.1 million of cash and cash equivalents and an outstanding
balance of $200.0 million under the Revolving Credit Facility.
We had available capacity under our Revolving Credit Facility as of December 31, 2024 (in millions) as
follows:
Total
Commitment
Amount Borrowed
as of December 31,
2024
Outstanding
Letters of
Credit
Borrowing
Base
Availability
Expiration
Date
Revolving Credit Facility (a)
$
3,500.0
$
200.0
$
128.3
$
2,385.4
August 2028
___________________________________
(a)
The amount available for borrowings and letters of credit under the Revolving Credit Facility is
calculated according to a “borrowing base” formula based on (i) 90% of the book value of Eligible
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Accounts with respect to investment grade obligors plus (ii) 85% of the book value of Eligible
Accounts with respect to non-investment grade obligors plus (iii) 80% of the cost of Eligible
Hydrocarbon Inventory plus (iv) 100% of Cash and Cash Equivalents in deposit accounts subject to a
control agreement, in each case as defined in the Revolving Credit Agreement. The borrowing base is
subject to customary reserves and eligibility criteria and in any event cannot exceed $3.5 billion.
Additional Information on Indebtedness
Our debt, including our Revolving Credit Facility and senior notes, include certain typical financial
covenants and restrictions on our subsidiaries’ ability to, among other things, incur or guarantee new debt,
engage in certain business activities including transactions with affiliates and asset sales, make investments or
distributions, engage in mergers or pay dividends in certain circumstances. These covenants are subject to a
number of important exceptions and qualifications. We are in compliance as of December 31, 2024 with all
covenants, including financial covenants, in all of our debt agreements. For further discussion of our
indebtedness and these covenants and restrictions, see “Note 9 - Credit Facilities and Debt” of our Notes to
Consolidated Financial Statements.
Liquidity
As of December 31, 2024, our operational liquidity was approximately $2.4 billion (as compared to more
than $4.6 billion as of December 31, 2023), which consists of approximately $0.5 billion of cash, and more than
$1.9 billion of borrowing availability under our Revolving Credit Facility, which includes our cash on hand.
We may incur additional indebtedness in the future, including secured indebtedness, subject to the
satisfaction of any debt incurrence and, if applicable, lien incurrence limitation covenants in our existing
financing agreements. Although we were in compliance with incurrence covenants during the year ended
December 31, 2024, there are no assurances in the future that we will be able to meet these incurrence
covenants at the time we are required to do so. Failure to meet the incurrence covenants could impose certain
incremental restrictions on, among other matters, our ability to incur new debt (including secured debt) and also
may limit the extent to which we may pay future dividends, make acquisitions or investments, repurchase our
outstanding debt or stock or incur new liens.
Share Repurchases
Our Repurchase Program currently allows for repurchases up to $1.75 billion and has a program
expiration date of December 2025. To date, we have purchased approximately 24,113,897 shares of PBF
Energy's Class A common stock under the Repurchase Program for $1,018.0 million, inclusive of commissions
paid, through open market transactions. We may make additional share repurchases in the future, but we are not
obligated to purchase any shares under the Repurchase Program, and repurchases could be suspended or
discontinued at any time without prior notice.
Working Capital
Our working capital at December 31, 2024 was approximately $917.8 million, consisting of $4,543.9
million in total current assets and $3,626.1 million in total current liabilities. Our working capital at
December 31, 2023 was $2,379.3 million, consisting of $6,596.6 million in total current assets and $4,217.3
million in total current liabilities.
Crude and Feedstock Supply Agreements
We currently purchase all of our crude and feedstock needs from various suppliers, primarily through
short-term and spot market agreements. We also have a crude supply agreement with Saudi Aramco, the term of
which is currently year to year, for up to approximately 100,000 bpd that is processed at the Paulsboro refinery
and crude supply agreements with Shell Trading (US) Company (primarily serving our Martinez refinery) for
up to approximately 65,000 bpd, through 2026.
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Capital Spending
Capital spending was $1,008.3 million for the year ended December 31, 2024 and was primarily
comprised of annual maintenance and turnaround costs at our East Coast, Mid-Continent, and West Coast
refineries. Capital spending also included costs associated with safety related enhancements and facility
improvements at our refineries and logistics assets. We currently expect to spend an aggregate of approximately
$850.0 million to $900.0 million in 2025 for facility improvements and refinery maintenance and turnarounds,
as well as expenditures to meet environmental, regulatory and safety requirements.
Material Cash Requirements
Our material cash requirements include the following known contractual and other obligations as of
December 31, 2024 that are expected to be paid within the next year and thereafter (in millions). The table
below does not include any intercompany contractual obligations with PBFX as these related party transactions
are eliminated upon consolidation of our financial statements.
Payments Due by Period
Short-Term
Long-Term
Total
Credit facilities and debt (a)
$
—
$
1,501.6
$
1,501.6
Interest payments on credit facilities and debt
108.9
374.2
483.1
Leases and other rental-related commitments (b)
390.0
1,738.6
2,128.6
Purchase obligations (c)
4,712.0
1,097.2
5,809.2
Construction obligations
85.5
—
85.5
Environmental obligations (d)
9.8
154.4
164.2
Pension and post-retirement obligations (e)
37.4
409.4
446.8
Tax Receivable Agreement obligation (f)
125.4
168.2
293.6
Total material cash requirements
$
5,469.0
$
5,443.6
$
10,912.6
___________________________
(a)
Credit facilities and debt
Credit facilities and debt represent the repayment of indebtedness incurred in connection with the 2030
Senior Notes, 2028 Senior Notes and the Revolving Credit Facility; we have no debt maturing before 2028.
Refer to “Note 9 - Credit Facilities and Debt” of our Notes to Consolidated Financial Statements for further
disclosure related to debt.
(b)
Leases and other rental-related commitments
Operating and Finance lease obligations include options to extend terms that are reasonably certain of being
exercised. We have entered into certain agreements for the supply of hydrogen that contain both lease and non-
lease components. The table above also includes such non-lease components of these agreements. See “Note 12
- Leases” of our Notes to Consolidated Financial Statements for further details and disclosures regarding our
operating and finance lease obligations.
We also enter into contractual obligations with third parties for the right to use property for locating
pipelines and accessing certain of our assets (also referred to as land easements) in the normal course of
business. Our obligations regarding such land easements are included within Leases and other rental-related
commitments in the table above.
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(c)
Purchase obligations
Purchase obligations include commitments to purchase crude oil from certain counterparties under supply
agreements, contracts for the transportation of crude oil and supply of hydrogen, nitrogen, oxygen, chemicals,
steam, or natural gas to certain of our refineries, contracts for the treatment of wastewater, contracts for pipeline
capacity, and forward purchase commitments to acquire AB 32, RINs or LCFS credits from third parties.
(d)
Environmental obligations
In connection with certain of our refinery and logistics acquisitions, we have assumed certain environmental
remediation obligations to address matters that were outstanding at the time of such acquisitions. In addition, in
connection with most of these acquisitions, we have purchased environmental insurance policies to insure
against unknown environmental liabilities at each site. The obligations in the table above reflect our
undiscounted best estimate in cost and tenure to remediate our outstanding obligations and are further discussed
in “Note 11 - Commitments and Contingencies” of our Notes to Consolidated Financial Statements.
(e)
Pension and post-retirement obligations
Pension and post-retirement obligations include only those amounts we expect to pay out in benefit
payments and are further explained in “Note 16 - Employee Benefit Plans” of our Notes to Consolidated
Financial Statements.
(f) Tax Receivable Agreement obligation
The table reflects PBF Energy’s estimated timing of payments under the Tax Receivable Agreement,
assuming that we earn sufficient taxable income to realize all tax benefits that are subject to the Tax Receivable
Agreement as of December 31, 2024. Refer to “Note 11 - Commitments and Contingencies” and “Note 18 -
Income Taxes” of our Notes to the Consolidated Financial statements for further discussion of the Tax
Receivable Agreement. The short-term portion of our Tax Receivable Agreement obligation at December 31,
2024 was paid in January 2025.
Tax Distributions
PBF LLC is required to make periodic tax distributions to the members of PBF LLC, including PBF
Energy, pro rata in accordance with their respective percentage interests for such period (as determined under
the amended and restated limited liability company agreement of PBF LLC), subject to available cash and
applicable law and contractual restrictions (including pursuant to our debt instruments) and based on certain
assumptions. Generally, these tax distributions will be an amount equal to our estimate of the taxable income of
PBF LLC for the year multiplied by an assumed tax rate equal to the highest effective marginal combined U.S.
federal, state and local income tax rate prescribed for an individual or corporate resident in New York, New
York (taking into account the nondeductibility of certain expenses). If, with respect to any given calendar year,
the aggregate periodic tax distributions were less than the actual taxable income of PBF LLC multiplied by the
assumed tax rate, PBF LLC will make a “true up” tax distribution, no later than March 15 of the following year,
equal to such difference, subject to the available cash and borrowings of PBF LLC. As these distributions are
conditional, they have been excluded from the table above.
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Critical Accounting Policies
The following summary provides further information about our critical accounting policies that involve
critical accounting estimates and should be read in conjunction with “Note 2 - Summary of Significant
Accounting Policies” of our Notes to Consolidated Financial Statements. The following accounting policies
involve estimates that are considered critical due to the level of subjectivity and judgment involved, as well as
the impact on our financial position and results of operations. We believe that all of our estimates are
reasonable. Unless otherwise noted, estimates of the sensitivity to earnings that would result from changes in
the assumptions used in determining our estimates is not practicable due to the number of assumptions and
contingencies involved, and the wide range of possible outcomes.
Environmental Matters
Liabilities for future clean-up costs are recorded when environmental assessments and/or clean-up efforts
are probable, and the costs can be reasonably estimated. Other than for periodic assessments, the timing and
magnitude of these accruals generally are based on the completion of investigations or other studies or a
commitment to a formal plan of action. Environmental liabilities are based on best estimates of probable future
costs using currently available technology and applying current regulations, as well as our own internal
environmental policies. The actual settlement of our liability for environmental matters could materially differ
from our estimates due to a number of uncertainties such as the extent of contamination, changes in
environmental laws and regulations, potential improvements in remediation technologies and the participation
of other responsible parties. While we believe that our current estimates of the amounts and timing of the costs
related to the remediation of these liabilities are reasonable, it is possible that our estimates of the costs and
duration of the environmental remediation activities related to these liabilities could materially change.
Impairment of Long-Lived Assets
We evaluate long-lived assets for impairment on a continual basis and reassess the reasonableness of
their related useful lives whenever events or changes in circumstances warrant assessment. Possible triggering
events may include, among other things, significant adverse changes in the business climate, market conditions,
environmental regulations or a determination that it is more likely than not that an asset or an asset group will
be sold or retired before its estimated useful life. These possible triggering events of impairment may impact
our assumptions related to future throughput levels, future operating revenues, expenses and gross margin,
levels of anticipated capital expenditures and remaining useful life. Long-lived assets are tested for
recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset may
not be recoverable. A long-lived asset is not recoverable if its carrying amount exceeds the sum of the
undiscounted cash flows expected to result from its use and eventual disposition. Cash flows for long-lived
assets/asset groups are determined at the lowest level for which identifiable cash flows exist. The cash flows
from the refinery asset groups are evaluated individually regardless of product mix or fuel type produced. If a
long-lived asset is not recoverable, an impairment loss is recognized for the amount by which the carrying
amount of the long-lived asset exceeds its fair value, with fair value determined based on discounted estimated
net cash flows or other appropriate methods. Our assumptions incorporate inherent uncertainties that are at
times difficult to predict and could result in impairment charges or accelerated depreciation in future periods if
actual results materially differ from the estimated assumptions used.
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Income Taxes and Tax Receivable Agreement
As a result of PBF Energy’s acquisition of PBF LLC Series A Units or exchanges of PBF LLC Series A
Units for PBF Energy Class A common stock, it expects to benefit from amortization and other tax deductions
reflecting the step up in tax basis in the acquired assets. Those deductions will be allocated to PBF Energy and
will be taken into account in reporting its taxable income. As a result of a federal income tax election made by
PBF LLC, applicable to a portion of PBF Energy’s acquisition of PBF LLC Series A Units, the income tax basis
of the assets of PBF LLC, underlying a portion of the units PBF Energy acquired, has been adjusted based upon
the amount that PBF Energy paid for that portion of its PBF LLC Series A Units. PBF Energy entered into the
Tax Receivable Agreement which provides for the payment by PBF Energy equal to 85% of the amount of the
benefits, if any, that it is deemed to realize as a result of (i) increases in tax basis and (ii) certain other tax
benefits related to entering into the Tax Receivable Agreement, including tax benefits attributable to payments
under the Tax Receivable Agreement. As a result of these transactions, PBF Energy’s tax basis in its share of
PBF LLC’s assets will be higher than the book basis of these same assets. This resulted in a deferred tax asset of
$165.0 million as of December 31, 2024.
Deferred taxes are calculated using a liability method, whereby deferred tax assets are recognized for
deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences.
Temporary differences represent the differences between reported amounts of assets and liabilities and their tax
bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more
likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and
liabilities are adjusted for the effect of changes in tax laws and rates on the date of enactment. We recognize tax
benefits for uncertain tax positions only if it is more likely than not that the position is sustainable based on its
technical merits. Interest and penalties on uncertain tax positions are included as a component of the provision
for income taxes on the Consolidated Statements of Operations. The amount of the deferred tax assets
considered realizable, however, could be adjusted if estimates of future taxable income are reduced or increased
or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is
given to subjective evidence such as our projections for future taxable income.
Pursuant to the Tax Receivable Agreement PBF Energy entered into at the time of its initial public
offering, it is required to pay the current and former PBF LLC Series A unitholders, or their permitted
assignees, who exchange their units for PBF Energy stock or whose units we purchase, approximately 85% of
the cash savings in income taxes that PBF Energy is deemed to realize as a result of the increase in the tax basis
of its interest in PBF LLC, including tax benefits attributable to payments made under the Tax Receivable
Agreement. These payment obligations are of PBF Energy and not of PBF LLC or any of its subsidiaries. PBF
Energy has recognized a liability for the Tax Receivable Agreement reflecting its estimate of the undiscounted
amounts that it expects to pay under the agreement. PBF Energy’s estimate of the Tax Receivable Agreement
liability is based, in part, on forecasts of future taxable income over the anticipated life of PBF Energy’s future
business operations, assuming no material changes in the relevant tax law. The assumptions used in the
forecasts are subject to substantial uncertainty about PBF Energy’s future business operations and the actual
payments that it is required to make under the Tax Receivable Agreement could differ materially from its
current estimates. PBF Energy must adjust the estimated Tax Receivable Agreement liability each time we
purchase PBF LLC Series A Units or upon an exchange of PBF LLC Series A Units for PBF Energy Class A
common stock. Such adjustments will be based on forecasts of future taxable income and PBF Energy’s future
business operations at the time of such purchases or exchanges. Periodically, PBF Energy may adjust the
liability based on an updated estimate of the amounts that it expects to pay, using assumptions consistent with
those used in its concurrent estimate of the deferred tax asset valuation allowance. These periodic adjustments
to the Tax Receivable Agreement liability, if any, are recorded in general and administrative expense and may
result in adjustments to our income tax expense and deferred tax assets and liabilities.
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Recent Accounting Pronouncements
Refer to “Note 2 - Summary of Significant Accounting Policies” of our Notes to Consolidated Financial
Statements, for Recently Issued Accounting Pronouncements.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to market risks, including changes in commodity prices and interest rates. Our primary
commodity price risk is associated with the difference between the prices we sell our refined products and the
prices we pay for crude oil and other feedstocks. We may use derivative instruments to manage the risks from
changes in the prices of crude oil and refined products, natural gas, interest rates, or to capture market
opportunities.
Commodity Price Risk
Our earnings, cash flow and liquidity are significantly affected by a variety of factors beyond our control,
including the supply of, and demand for, crude oil, other feedstocks, refined products, and natural gas. The
supply of and demand for these commodities depend on, among other factors, changes in domestic and foreign
economies, weather conditions, domestic and foreign political affairs, planned and unplanned downtime in
refineries, pipelines and production facilities, production levels, the availability of imports, the marketing of
competitive and alternative fuels, and the extent of government regulation. As a result, the prices of these
commodities can be volatile. Our revenues fluctuate significantly with movements in industry refined product
prices, our cost of sales fluctuates significantly with movements in crude oil and feedstock prices and our
operating expenses fluctuate with movements in the price of natural gas. We manage our exposure to these
commodity price risks through our supply and offtake agreements as well as through the use of various
commodity derivative instruments.
We may use non-trading derivative instruments to manage exposure to commodity price risks associated
with the purchase or sale of crude oil and feedstocks, finished products and natural gas outside of our supply
and offtake agreements. The derivative instruments we use include physical commodity contracts and exchange-
traded and over-the-counter financial instruments. We mark-to-market our commodity derivative instruments
and recognize the changes in their fair value in our statements of operations.
At December 31, 2024 and December 31, 2023, we had gross open commodity derivative contracts
representing 18.6 million barrels and 29.1 million barrels, respectively, with an unrealized net gain of $2.0
million and net gain of $33.2 million, respectively. The open commodity derivative contracts as of
December 31, 2024 expire at various times during 2025.
We carry inventories of crude oil, intermediates, and refined products (“hydrocarbon inventories”) on our
Consolidated Balance Sheets, the values of which are subject to fluctuations in market prices. Our hydrocarbon
inventories totaled approximately 30.2 million barrels and 36.2 million barrels at December 31, 2024 and
December 31, 2023, respectively. The average cost of our hydrocarbon inventories was approximately $80.46
and $83.64 per barrel on a LIFO basis at December 31, 2024 and December 31, 2023, respectively. At
December 31, 2024 and December 31, 2023, the replacement value of inventory exceeded the LIFO carrying
value. If market prices of our inventory decline to a level below our average cost, we may be required to write
down the carrying value of our hydrocarbon inventories to market.
Our predominant variable operating cost is energy, which is comprised primarily of natural gas and
electricity. We are therefore sensitive to movements in natural gas prices. Assuming normal operating
conditions, we expect our annual consumption to range from 70 million to 90 million MMBTUs of natural gas
amongst our six refineries. Accordingly, a $1.00 per MMBTU change in natural gas prices would increase or
decrease our natural gas costs by approximately $70.0 million to $90.0 million.
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Compliance Program Price Risk
We are exposed to market risks related to our obligations to buy, and the volatility in the price of, credits
needed to comply with various governmental and regulatory compliance programs, which include RINs,
required to comply with the RFS. Our overall RINs obligation is based on a percentage of our domestic
shipments of on-road fuels as established by EPA. To the degree we are unable to blend the required amount of
biofuels to satisfy our RINs obligation, we must purchase RINs on the open market. To mitigate the impact of
the market risk relating to our obligations on our results of operations and cash flows, we may elect to purchase
RINs or other environmental credits as part of our liability management strategy. We also have the ability to
purchase RINs directly from SBR.
In addition, we are exposed to risks associated with complying with federal and state legislative and
regulatory measures to address GHG and other emissions. Requirements to reduce emissions could result in
increased costs to operate and maintain our facilities as well as implement and manage new emission controls
and programs put in place. Compliance with such emission standards may require the purchase of emission
credits or similar instruments.
Certain of these compliance contracts or instruments qualify as derivative instruments. For certain of
these contracts, we elect the normal purchase normal sale exception under ASC 815, Derivatives and Hedging,
for such instruments, and therefore do not record these contracts at their fair value.
Interest Rate Risk
The maximum commitment under our Revolving Credit Facility is $3.5 billion. Borrowings under the
Revolving Credit Facility bear interest either at the Alternative Base Rate plus the Applicable Margin or at the
Term SOFR plus the Applicable Margin, all as defined in the Revolving Credit Agreement. At December 31,
2024, we had a $200.0 million outstanding balance in variable interest debt. If this facility were fully drawn, a
1.0% change in the interest rate would increase or decrease our interest expense by approximately $23.8 million
annually.
Credit Risk
We are subject to risk of losses resulting from nonpayment or nonperformance by our counterparties. We
continue to closely monitor the creditworthiness of customers to whom we grant credit and establish credit
limits in accordance with our credit policy.
Concentration Risk
For the years ended December 31, 2024 and December 31, 2023, only one customer, Shell, accounted for
10% or more of our revenues (approximately 13% and 14%, respectively).
As of December 31, 2024 and December 31, 2023, only one customer, Shell, accounted for 10% or more
of our total trade accounts receivable (approximately 18% and 19%, respectively).
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The information required by this item is set forth beginning on page F-1 of this Annual Report on
Form 10-K.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
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ITEM 9A. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
We conducted evaluations, under the supervision and with the participation of our management,
including the principal executive officer and principal financial officer, of the effectiveness of the disclosure
controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 as amended
(the “Exchange Act”)) as of the end of the period covered by this report. Based upon these evaluations as
required by Exchange Act Rule 13a-15(b), the principal executive officer and principal financial officer
concluded that the disclosure controls and procedures are effective.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting as defined in Rule 13a-15(f) of the Exchange Act. Our internal control system is designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles in the United States of
America. Due to its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance
with respect to financial statement preparation and presentation.
Management assessed the effectiveness of our internal control over financial reporting as of
December 31, 2024, using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway
Commission in Internal Control — Integrated Framework (2013). Based on such assessment, management
concluded that as of December 31, 2024, our internal control over financial reporting is effective.
Auditor Attestation Report
Our independent registered public accounting firm has issued an attestation report on the effectiveness of
our internal control over financial reporting, which is on page F-5 of this report.
Changes in Internal Control Over Financial Reporting
There has been no change in our internal control over financial reporting during the quarter ended
December 31, 2024 that has materially affected, or is reasonably likely to materially affect our internal control
over financial reporting.
ITEM 9B. OTHER INFORMATION
Securities Trading Plans of Directors and Executive Officers
During the three months ended December 31, 2024, none of our directors or executive officers adopted or
terminated any contract, instruction or written plan for the purchase or sale of PBF Energy securities that was
intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading
arrangement”.
ITEM 9C. DISCLOSURES REGARDING FOREIGN JURISDICTIONS THAT PREVENT
INSPECTIONS
Not applicable.
102
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information required under this Item will be contained in our 2025 Proxy Statement, incorporated
herein by reference, except as provided below.
We have adopted a Code of Business Conduct and Ethics that applies to our principal executive officer,
principal financial officer and principal accounting officer. The Code of Business Conduct and Ethics is
available on our website at www.pbfenergy.com under the heading “Investors”. Any amendments to the Code
of Business Conduct and Ethics or any grant of a waiver from the provisions of the Code of Business Conduct
and Ethics requiring disclosure under applicable Securities and Exchange Commission rules will be disclosed
on the Company’s website.
See also Information About Our Executive Officers under “Item 1. Business” of this Annual Report on
Form 10-K.
ITEM 11. EXECUTIVE COMPENSATION
The information required under this Item will be contained in our 2025 Proxy Statement, incorporated
herein by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
AND RELATED STOCKHOLDER MATTERS
Information required by this Item, including Securities Authorized for Issuance Under Equity
Compensation Plans, will be contained in our 2025 Proxy Statement, incorporated herein by reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
The information required under this Item will be contained in our 2025 Proxy Statement, incorporated
herein by reference.
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Information about aggregate fees billed to us by our principal accountants, KPMG LLP (PCAOB ID No.
185) and Deloitte & Touche LLP (PCAOB ID No. 34) will be contained in our 2025 Proxy Statement,
incorporated herein by reference.
103
PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) 1. Financial Statements. The consolidated financial statements of PBF Energy Inc., and its subsidiaries,
required by Part II, Item 8, are included in Part IV of this report. See Index to Consolidated Financial
Statements beginning on page F-1.
2. Financial Statement Schedules and Other Financial Information. No financial statement schedules
are submitted because either they are not applicable or because the required information is included in the
consolidated financial statements or notes thereto.
3. Exhibits. Filed as part of this Annual Report on Form 10-K are the following exhibits:
Number
Description
3.1
Amended and Restated Certificate of Incorporation of PBF Energy Inc. (incorporated by
reference to Exhibit 3.1 filed with PBF Energy Inc.’s Amendment No. 4 to Registration
Statement on Form S-1 (Registration No. 333-177933)).
3.2
Second Amended and Restated Bylaws of PBF Energy Inc. (incorporated by reference to
Exhibit 3.1 filed with PBF Energy Inc.’s Current Report on Form 8-K dated February 15,
2017 (File No. 001-35764)).
4.1
Indenture dated as of January 24, 2020, among PBF Holding Company LLC, PBF Finance
Corporation, the Guarantors named on the signature pages thereto, Wilmington Trust,
National Association, as Trustee and Deutsche Bank Trust Company Americas, as Paying
Agent, Registrar, Transfer Agent and Authenticating Agent and form of 6.00% Senior Notes
due 2028 (included as Exhibit A) (incorporated by reference to Exhibit 4.1 filed with PBF
Energy Inc.’s Current Report on Form 8-K dated January 24, 2020 (File No. 001-35764)).
4.2
Indenture dated as of August 21, 2023, among PBF Holding Company LLC, PBF Finance
Corporation, the Guarantors named on the signature pages thereto, Wilmington Trust,
National Association, as Trustee, and Deutsche Bank Trust Company Americas, as Paying
Agent, Registrar, Transfer Agent and Authenticating Agent and form of 7.875% Senior Note
due 2030 (included as Exhibit A) (incorporated by reference to Exhibit 4.1 filed with PBF
Energy Inc.’s Current Report on Form 8-K dated August 21, 2023 (File No. 001-35764)).
4.3
First Supplemental Indenture dated February 3, 2020, among PBF Holding Company LLC,
PBF Finance Corporation, Martinez Refining Company LLC, Martinez Terminal Company
LLC, Wilmington Trust, National Association, as trustee, and Deutsche Bank Trust Company
Americas, as paying agent, transfer agent, registrar and authenticating agent (6.00% Senior
Notes due 2028) (incorporated by reference to Exhibit 4.3 filed with PBF Energy Inc.’s
Quarterly Report on Form 10-Q dated May 15, 2020 (File No. 001-35764).
4.4
Amended and Restated Registration Rights Agreement of PBF Energy Inc. dated as of
December 12, 2012 (incorporated by reference to Exhibit 4.1 filed with PBF Energy Inc.’s
Current Report on Form 8-K dated December 18, 2012 (File No. 001-35764)).
4.5
Description of Registrant’s Securities (incorporated by reference to Exhibit 4.18 of PBF
Energy Inc’s Annual Report on Form 10-K (File No. 001-35764) filed on February 18, 2021).
10.1**
Form of 2023-2025 Performance Share Unit Award Agreement (incorporated by reference to
Exhibit 10.1 filed with PBF Energy Inc.’s Current Report on Form 8-K dated April 12, 2022
(File No. 001-35764)).
10.2**
Form of 2023-2025 Performance Unit Award Agreement (incorporated by reference to Exhibit
10.2 filed with PBF Energy Inc.’s Current Report on Form 8-K dated April 12, 2022 (File No.
001-35764)).
104
10.3**
Form of PBF Energy Inc. Performance Share Unit Award Agreement (2024-2026
performance period) under the Amended and Restated PBF Energy Inc. 2017 Equity Incentive
Plan (incorporated by reference to Exhibit 10.1 with PBF Energy Inc.’s Current Report on
Form 8-K dated November 2, 2023 (File No. 001-35764)).
10.4**
Form of PBF Energy Inc. Performance Unit Award Agreement (2024-2026 performance
period) under the Amended and Restated PBF Energy Inc. 2017 Equity Incentive Plan
(incorporated by reference to Exhibit 10.2 with PBF Energy Inc.’s Current Report on Form 8-
K dated November 2, 2023 (File No. 001-35764)).
10.5**
Form of PBF Energy Inc. Performance Share Unit Award Agreement (2025-2027
performance period) under the Amended and Restated PBF Energy Inc. 2017 Equity Incentive
Plan (incorporated by reference to Exhibit 10.1 with PBF Energy Inc.’s Current Report on
Form 8-K dated December 6, 2024 (File No. 001-35764)).
10.6**
Form of PBF Energy Inc. Performance Unit Award Agreement (2025-2027 performance
period) under the Amended and Restated PBF Energy Inc. 2017 Equity Incentive Plan
(incorporated by reference to Exhibit 10.2 with PBF Energy Inc.’s Current Report on Form 8-
K dated December 6, 2024 (File No. 001-35764)).
10.7**
PBF Energy Inc. Amended and Restated 2012 Equity Incentive Plan (incorporated by
reference to Appendix A to PBF Energy Inc.’s Definitive Proxy Statement on Schedule 14A
filed on March 22, 2016 (File No. 001-35764)).
10.8**
PBF Energy Inc. Amended and Restated 2017 Equity Incentive Plan (incorporated by
reference to Appendix A to PBF Energy Inc.’s Definitive Proxy Statement on Schedule 14A
filed on April 13, 2018 (File No. 001-35764)).
10.9**
Amendment No. 1 to PBF Energy Inc. Amended and Restated 2017 Equity Incentive Plan
(incorporated by reference to Appendix A to PBF Energy Inc.’s Definitive Proxy Statement on
Schedule 14A filed on April 13, 2022 (File No. 001-35764)).
10.10**
Form of PBF Energy Non-Qualified Stock Option Agreement (prior to 2020) under the
Amended and Restated PBF Energy Inc. 2017 Equity Incentive Plan (incorporated by
reference to Exhibit 10.1 filed with PBF Energy Inc.’s Current Report on Form 8-K dated
November 2, 2018 (File No. 001-35764)).
10.11**
Form of PBF Energy Non-Qualified Stock Option Agreement (2020 and thereafter) under the
Amended and Restated PBF Energy Inc. 2017 Equity Incentive Plan (incorporated by
reference to Exhibit 10.1 filed with PBF Energy Inc.’s Current Report on Form 8-K dated
November 13, 2020 (File No. 001-35764)).
10.12**
Form of Non-Qualified Stock Option Agreement under the PBF Energy Inc. 2012 Equity
Incentive Plan (incorporated by reference to Exhibit 10.28 filed with PBF Energy Inc.’s
Amendment No. 6 to Registration Statement on Form S-1 (Registration No. 333-177933)).
10.13**
Form of Amended and Restated Restricted Stock Agreement for non-employee Directors
under the PBF Energy Inc. 2017 Equity Incentive Plan (incorporated by reference to Exhibit
10.3 of PBF Energy Inc.’s Annual Report on Form 10-K (File No. 001-35764) filed on
February 23, 2018).
10.14**
Form of Amended and Restated Restricted Stock Agreement for Employees, under PBF
Energy Inc. 2017 Equity Incentive Plan (incorporated by reference to Exhibit 10.7 of PBF
Energy Inc.’s Annual Report on Form 10-K (File No. 001-35764) filed on February 23, 2018).
10.15*
Form of PBF Energy Amended and Restated 2017 Equity Incentive Plan, as Amended
Restricted Stock Agreement for Special Employees Retention Award.
10.16**
Form of PBF Energy Amended and Restated 2017 Equity Incentive Plan, as Amended
Restricted Stock Agreement for Employees (incorporated by reference to Exhibit 10.2 of PBF
Energy Inc.’s Current Report on Form 8-K dated February 15, 2023 (File No. 001-35764)).
10.17
Form of PBF Energy Amended and Restated 2017 Equity Incentive Plan, as Amended
Restricted Stock Agreement for Employee (incorporated by reference to Exhibit 10.2 filed
with PBF Energy Inc.’s Current Report on Form 8-K dated December 2, 2022 (File No.
001-35764)).
105
10.18
Form of Amended and Restated 2017 Equity Incentive Plan Performance Share Unit Award
Agreement for the 2023-2025 Performance Cycle (incorporated by reference to Exhibit 10.3
filed with PBF Energy Inc.’s Current Report on Form 8-K dated December 2, 2022 (File No.
001-35764)).
10.19
Form of Amended and Restated 2017 Equity Incentive Plan Performance Unit Award
Agreement for the 2023-2025 Performance Cycle (incorporated by reference to Exhibit 10.4
filed with PBF Energy Inc.’s Current Report on Form 8-K dated December 2, 2022 (File No.
001-35764)).
10.20
Contribution Agreement by and among PBF Green Fuels LLC, PBF Energy Company LLC,
Eni Sustainable Mobility US Inc., Eni Sustainable Mobility S.p.A., and St. Bernard
Renewables LLC, dated as of June 27, 2023 (incorporated by reference to Exhibit 10.1 filed
with PBF Energy Inc.’s Current Report on Form 8-K dated June 28, 2023 (File No.
001-35764)).
10.21
Amended and Restated Limited Liability Agreement by and among St. Bernard Renewables
LLC, PBF Green Fuels LLC and Eni Sustainable Mobility US, Inc., dated as of June 27, 2023.
(incorporated by reference to Exhibit 10.2 filed with PBF Energy Inc.’s Current Report on
Form 8-K dated June 28, 2023 (File No. 001-35764)).
10.22
Amended and Restated Senior Secured Revolving Credit Agreement, dated August 23, 2023
(incorporated by reference to Exhibit 10.1 filed with PBF Energy Inc.’s Current Report on
Form 8-K dated August 23, 2023 (File No. 001-35764)).
10.23
Amended and Restated Limited Liability Company Agreement of PBF Energy Company LLC
(incorporated by reference to Exhibit 10.1 filed with PBF Energy Inc.’s Current Report on
Form 8-K dated December 18, 2012 (File No. 001-35764)).
10.24
Exchange Agreement, dated as of December 12, 2012 (incorporated by reference to Exhibit
10.3 filed with PBF Energy Inc.’s Current Report on Form 8-K dated December 18, 2012 (File
No. 001-35764)).
10.25
Tax Receivable Agreement, dated as of December 12, 2012 (incorporated by reference to
Exhibit 10.2 filed with PBF Energy Inc.’s Current Report on Form 8-K dated December 18,
2012 (File No. 001-35764)).
10.26
Form of Indemnification Agreement between PBF Energy Inc. and each of the executive
officers and directors of PBF Energy Inc. (incorporated by reference to Exhibit 10.5 filed with
PBF Energy Inc.’s Current Report on Form 8-K dated December 18, 2012 (File No.
001-35764)).
10.27**
Employment Agreement dated as of February 20, 2023 between PBF Investments LLC and
Karen B. Davis (incorporated by reference to Exhibit 10.1 filed with PBF Energy Inc.’s
Current Report on Form 8-K dated February 16, 2023 (File No. 001-35764)).
10.28**
Employment Agreement dated as of September 29, 2015 between PBF Investments LLC and
Trecia M. Canty (incorporated by reference to Exhibit 10.36 filed with PBF Energy Inc.’s
Annual Report on Form 10-K dated February 16, 2023 (File No. 001-35764)).
10.29*/
**
Employment Agreement dated as of March 4, 2024 between PBF Investments LLC and
Michael Bukowski.
10.30**
Employment Agreement dated as of April 1, 2014 between PBF Investments LLC and
Timothy Paul Davis (incorporated by reference to Exhibit 10.4 filed with PBF Energy Inc.’s
Quarterly Report on Form 10-Q dated May 7, 2014 (File No. 001-35764)).
10.31**
Third Amended and Restated Employment Agreement, dated as of May 3, 2023, between
PBF Investments LLC and Matthew C. Lucey (incorporated by reference to Exhibit 10.2 filed
with PBF Energy Inc.’s Current Report on Form 8-K dated May 4, 2023 (File No.
001-35764)).
16.1
Letter from Deloitte & Touche LLP to Securities and Exchange Commission dated February
16, 2024 (incorporated by reference to Exhibit 16.1 file with PBF Energy Inc.’s Current
Report on Form 8-K dated February 12, 2024 (File No. 001-35764)).
106
19.1*
Insider Trading Policy of PBF Energy Inc.
21.1*
Subsidiaries of PBF Energy.
23.1*
Consent of KPMG.
23.2*
Consent of Deloitte & Touche LLP.
24.1*
Power of Attorney (included on signature page).
31.1*
Certification by Chief Executive Officer of PBF Energy Inc. pursuant to Rule
13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*
Certification by Chief Financial Officer of PBF Energy Inc. pursuant to Rule
13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*(1)
Certification by Chief Executive Officer of PBF Energy Inc. pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*(1)
Certification by Chief Financial Officer of PBF Energy Inc. pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
97.1
Clawback Policy, effective as of October 2, 2023 (incorporated by reference to Exhibit 97.1
filed with PBF Energy Inc.’s Annual Report on Form 10-K dated February 15, 2024 (File No.
001-35764)).
101.INS
Inline XBRL Instance Document.
101.SCH
Inline XBRL Taxonomy Extension Schema Document.
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104
Cover Page Interactive Data File (formatted as Inline XBRL and contained in exhibit 101).
——————————
*
Filed herewith.
**
Indicates management compensatory plan or arrangement.
(1)
This exhibit should not be deemed to be “filed” for purposes of Section 18 of the
Exchange Act.
107
PBF ENERGY INC.
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Reports of Independent Registered Public Accounting Firms
F-2
Consolidated Balance Sheets as of December 31, 2024 and 2023
F- 7
Consolidated Statements of Operations For the Years Ended December 31, 2024, 2023 and
2022
F- 8
Consolidated Statements of Comprehensive Income (Loss) For the Years Ended December
31, 2024, 2023 and 2022
F- 9
Consolidated Statements of Changes in Equity For the Years Ended December 31, 2024,
2023 and 2022
F- 10
Consolidated Statements of Cash Flows For the Years Ended December 31, 2024, 2023 and
2022
F- 12
Notes to Consolidated Financial Statements
F- 13
F- 1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders
PBF Energy Inc.:
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated balance sheet of PBF Energy Inc. and subsidiaries (the
Company) as of December 31, 2024, the related consolidated statements of operations, comprehensive income
(loss), changes in equity, and cash flows for the year ended December 31, 2024, and the related notes
(collectively, the consolidated financial statements). In our opinion, the consolidated financial statements
present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the
results of its operations and its cash flows for the year ended December 31, 2024, in conformity with U.S.
generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024,
based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission, and our report dated February 13, 2025 expressed an
unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.
Basis for Opinion
These consolidated financial statements are the responsibility of the Company’s management. Our
responsibility is to express an opinion on these consolidated financial statements based on our audit. We are a
public accounting firm registered with the PCAOB and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are
free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess
the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable
basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current period audit of the
consolidated financial statements that was communicated or required to be communicated to the audit
committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial
statements and (2) involved our especially challenging, subjective, or complex judgments. The communication
of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as
a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the
critical audit matter or on the accounts or disclosures to which it relates.
F- 2
Evaluation of long-lived assets for impairment
As discussed in Notes 2 and 5 to the consolidated financial statements, the Company evaluates long-lived assets
for impairment on a continual basis. Possible triggering events may include, among other things, significant
adverse changes in the business climate, market conditions, environmental regulations or a determination that it
is more likely than not that an asset or an asset group will be sold or retired before its estimated useful life. The
primary asset groups within long-lived assets are the Company’s property, plant, and equipment, net for which
the Company had recorded $5.1 billion on the consolidated balance sheet as of December 31, 2024.
We identified the evaluation of impairment triggering events related to the recoverability of property, plant and
equipment as a critical audit matter. A high degree of subjective auditor judgment was required in evaluating the
Company’s assessment of current operations, financial results, current industry and market conditions and
relevant industry data for impairment indicators.
The following are the primary procedures we performed to address this critical audit matter. We evaluated the
design and tested the operating effectiveness of certain internal controls related to the Company’s process for
identifying and assessing potential triggering events related to its property, plant, and equipment, net, including
controls over the Company’s assessment of current operations, financial results, current industry and market
conditions and relevant industry data. We evaluated the Company’s identification and assessment of triggering
events by:
• analyzing the financial results for the current period compared to historical results, including
consideration of current industry and market considerations
• comparing relevant industry data used by the Company to external sources, including consideration of
current industry and market considerations
• evaluating the Company’s analysis over the factors and considering whether the Company omitted any
significant internal or external elements in its evaluation.
/s/ KPMG LLP
We have served as the Company's auditor since 2024.
Short Hills, New Jersey
February 13, 2025
F- 3
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders
PBF Energy Inc.:
Opinion on Internal Control Over Financial Reporting
We have audited PBF Energy Inc. and subsidiaries' (the Company) internal control over financial reporting as of
December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by
the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company
maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024,
based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States) (PCAOB), the consolidated balance sheet of the Company as of December 31, 2024, the related
consolidated statements of operations, comprehensive income (loss), changes in equity, and cash flows for the
year ended December 31, 2024, and the related notes (collectively, the consolidated financial statements), and
our report dated February 13, 2025 expressed an unqualified opinion on those consolidated financial statements.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting
and for its assessment of the effectiveness of internal control over financial reporting, included in the
accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to
express an opinion on the Company’s internal control over financial reporting based on our audit. We are a
public accounting firm registered with the PCAOB and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether effective internal control over financial
reporting was maintained in all material respects. Our audit of internal control over financial reporting included
obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk. Our audit also included performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A company’s internal control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of
the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company’s assets that could have a material effect on the financial
statements.
F- 4
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
/s/ KPMG LLP
Short Hills, New Jersey
February 13, 2025
F- 5
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of PBF Energy Inc. and subsidiaries
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheet of PBF Energy Inc. and subsidiaries (the
"Company") as of December 31, 2023, the related consolidated statements of operations, comprehensive
income, changes in equity, and cash flows, for the years ended December 31, 2023 and 2022, and the related
notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present
fairly, in all material respects, the financial position of the Company as of December 31, 2023, and the results of
its operations and its cash flows for the years ended December 31, 2023 and 2022, in conformity with
accounting principles generally accepted in the United States of America.
Change in Accounting Principle
As discussed in Note 2 to the financial statements, the accompanying financial statements have been
retrospectively adjusted for the adoption of Accounting Standard Update 2023-07, “Segment Reporting (Topic
280) – Improvements to Reportable Segment Disclosures.”
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express
an opinion on the Company's financial statements based on our audits. We are a public accounting firm
registered with the PCAOB and are required to be independent with respect to the Company in accordance with
the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Morristown, New Jersey
February 15, 2024 (February 13, 2025 as to Note 19)
We began serving as the Company’s auditor in 2011. In 2024 we became the predecessor auditor.
F- 6
PBF ENERGY INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except share and per share data)
December 31,
2024
December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
536.1
$
1,783.5
Accounts receivable
1,165.0
1,362.5
Inventories
2,595.3
3,183.1
Prepaid and other current assets
247.5
267.5
Total current assets
4,543.9
6,596.6
Property, plant and equipment (net of accumulated depreciation of $2,165.6 and
$1,912.1, respectively)
5,067.7
4,978.1
Equity method investment in SBR
866.8
881.0
Lease right of use assets
845.3
789.1
Deferred charges and other assets, net
1,379.5
1,143.0
Total assets
$
12,703.2
$
14,387.8
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
735.6
$
959.0
Accrued expenses
2,533.5
3,020.0
Payable pursuant to Tax Receivable Agreement
125.4
43.0
Deferred revenue
43.8
64.1
Current operating lease liabilities
187.8
131.2
Total current liabilities
3,626.1
4,217.3
Long-term debt
1,457.3
1,245.9
Payable pursuant to Tax Receivable Agreement
168.2
293.6
Deferred tax liabilities
836.0
1,073.3
Long-term operating lease liabilities
622.2
608.8
Long-term financing lease liabilities
35.4
46.1
Other long-term liabilities
279.4
271.5
Total liabilities
7,024.6
7,756.5
Commitments and contingencies (Note 11)
Equity:
PBF Energy Inc. equity
Class A common stock, $0.001 par value, 1,000,000,000 shares authorized,
115,311,992 shares outstanding at December 31, 2024, 120,440,620 shares
outstanding at December 31, 2023
0.1
0.1
Class B common stock, $0.001 par value, 1,000,000 shares authorized, 12 shares
outstanding at December 31, 2024, 12 shares outstanding at December 31, 2023
—
—
Preferred stock, $0.001 par value, 100,000,000 shares authorized, no shares
outstanding at December 31, 2024 and December 31, 2023
—
—
Treasury stock, at cost, 31,479,723 shares outstanding at December 31, 2024 and
23,419,532 shares outstanding at December 31, 2023
(1,222.8)
(868.2)
Additional paid in capital
3,338.7
3,278.8
Retained earnings
3,436.2
4,089.9
Accumulated other comprehensive income (loss)
(8.0)
(12.3)
Total PBF Energy Inc. equity
5,544.2
6,488.3
Noncontrolling interest
134.4
143.0
Total equity
5,678.6
6,631.3
Total liabilities and equity
$
12,703.2
$
14,387.8
See notes to consolidated financial statements.
F- 7
PBF ENERGY INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except share and per share data)
Year Ended December 31,
2024
2023
2022
Revenues
$
33,115.3
$
38,324.8
$
46,830.3
Cost and expenses:
Cost of products and other
30,266.7
32,671.3
39,049.1
Operating expenses (excluding depreciation and amortization
expense as reflected below)
2,606.2
2,694.9
2,599.0
Depreciation and amortization expense
614.6
560.0
503.6
Cost of sales
33,487.5
35,926.2
42,151.7
General and administrative expenses (excluding depreciation and
amortization expense as reflected below)
260.4
362.5
468.7
Depreciation and amortization expense
13.2
11.5
7.5
Change in fair value of contingent consideration, net
(3.3)
(45.8)
48.3
Equity loss in investee
47.4
45.3
—
Loss (gain) on formation of SBR equity method investment
8.7
(925.1)
—
Loss (gain) on sale of assets
0.4
(1.3)
0.9
Total cost and expenses
33,814.3
35,373.3
42,677.1
Income (loss) from operations
(699.0)
2,951.5
4,153.2
Other income (expense):
Interest expense (net of interest income of $51.2, $75.0, and
$20.6, respectively)
(72.0)
(63.8)
(246.0)
Change in Tax Receivable Agreement liability
—
2.0
(290.3)
Change in fair value of catalyst obligations
—
1.1
(2.0)
Loss on extinguishment of debt
—
(5.7)
(66.1)
Other non-service components of net periodic benefit cost
2.4
0.7
8.8
Income (loss) before income taxes
(768.6)
2,885.8
3,557.6
Income tax (benefit) expense
(228.4)
723.8
584.8
Net income (loss)
(540.2)
2,162.0
2,972.8
Less: net income (loss) attributable to noncontrolling interests
(6.4)
21.5
96.0
Net income (loss) attributable to PBF Energy Inc. stockholders
$
(533.8) $
2,140.5
$
2,876.8
Weighted-average shares of Class A common stock
outstanding
Basic
116,248,827
124,953,858
122,598,076
Diluted
117,111,607
130,509,448
126,860,106
Net income (loss) available to Class A common stock per share:
Basic
$
(4.59) $
17.13
$
23.47
Diluted
$
(4.60) $
16.52
$
22.84
See notes to consolidated financial statements.
F- 8
PBF ENERGY INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in millions)
Year Ended December 31,
2024
2023
2022
Net income (loss)
$
(540.2) $
2,162.0
$
2,972.8
Other comprehensive income (loss):
Unrealized loss on available for sale securities
(0.3)
(0.4)
(2.5)
Net gain (loss) on pension and other post-retirement
benefits
4.6
(10.4)
(16.3)
Total other comprehensive income (loss)
4.3
(10.8)
(18.8)
Comprehensive income (loss)
(535.9)
2,151.2
2,954.0
Less: comprehensive income (loss) attributable to
noncontrolling interests
(6.4)
21.5
96.0
Comprehensive income (loss) attributable to PBF
Energy Inc. stockholders
$
(529.5) $
2,129.7
$
2,858.0
See notes to consolidated financial statements.
F- 9
PBF ENERGY INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in millions, except share and per share data)
Class A
Common Stock
Class B
Common Stock
Additional
Paid-in
Capital
Retained
Earnings
(Accumulated
Deficit)
Accumulated
Other
Comprehensive
Income (Loss)
Treasury Stock
Noncontrolling
Interest
Total
Equity
Shares
Amount
Shares
Amount
Shares
Amount
Balance, January 1, 2022
120,319,577 $
0.1
15 $
— $ 2,874.0 $
(796.1) $
17.3 6,676,809 $
(169.1) $
606.6 $ 2,532.8
Comprehensive income (loss)
—
—
—
—
—
2,876.8
(18.8)
—
—
96.0
2,954.0
Distributions to PBF Energy Company LLC
members
—
—
—
—
—
—
—
—
—
(8.6)
(8.6)
Distributions to PBF Logistics LP public
unitholders
—
—
—
—
—
—
—
—
—
(40.3)
(40.3)
Dividends ($0.20 per common share)
—
—
—
—
—
(24.7)
—
—
—
—
(24.7)
Stock-based compensation
—
—
—
—
33.2
—
—
—
—
10.2
43.4
Transactions in connection with stock-based
compensation plans
4,680,161
—
—
—
86.5
—
—
—
—
(18.7)
67.8
Exchange of PBF Energy Company LLC
Series A Units for PBF Energy Class A
common stock
35,992
—
(2)
—
0.1
—
—
—
—
(0.1)
—
PBFX Merger Transaction
8,864,684
—
—
—
216.0
—
—
—
—
(519.7)
(303.7)
Effects of changes in PBFX ownership
interest on deferred tax assets and liabilities
—
—
—
—
(9.7)
—
—
—
—
—
(9.7)
Treasury stock purchases
(4,261,107)
—
—
—
1.5
—
— 4,261,107
(157.9)
—
(156.4)
Other
—
—
—
—
—
—
—
—
—
1.4
1.4
Balance, December 31, 2022
129,639,307 $
0.1
13 $
— $ 3,201.6 $
2,056.0 $
(1.5) 10,937,916 $
(327.0) $
126.8 $ 5,056.0
Comprehensive income (loss)
—
—
—
—
—
2,140.5
(10.8)
—
—
21.5
2,151.2
Distributions to PBF Energy Company LLC
members
—
—
—
—
—
—
—
—
—
(5.3)
(5.3)
Dividends ($0.85 per common share)
—
—
—
—
—
(106.6)
—
—
—
—
(106.6)
Stock-based compensation
—
—
—
—
35.8
—
—
—
—
—
35.8
Transactions in connection with stock-based
compensation plans
3,229,920
—
—
—
44.5
—
—
—
—
—
44.5
Effect of change in deferred tax assets and
liabilities and tax receivable agreement
obligation
—
—
—
—
(4.5)
—
—
—
—
—
(4.5)
Exchange of PBF Energy Company LLC
Series A Units for PBF Energy Class A
common stock
53,009
—
(1)
—
—
—
—
—
—
—
—
Treasury stock purchases
(12,481,616)
—
—
—
1.3
—
— 12,481,616
(541.2)
—
(539.9)
Other
—
—
—
—
0.1
—
—
—
—
—
0.1
Balance, December 31, 2023
120,440,620 $
0.1
12 $
— $ 3,278.8 $
4,089.9 $
(12.3) 23,419,532 $
(868.2) $
143.0 $ 6,631.3
See notes to consolidated financial statements.
F- 10
PBF ENERGY INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Continued)
(in millions, except share and per share data)
Class A
Common Stock
Class B
Common Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Treasury Stock
Noncontrolling
Interest
Total
Equity
Shares
Amount
Shares
Amount
Shares
Amount
Balance, December 31, 2023
120,440,620 $
0.1
12 $
— $ 3,278.8 $
4,089.9 $
(12.3) 23,419,532 $
(868.2) $
143.0 $ 6,631.3
Comprehensive income (loss)
—
—
—
—
—
(533.8)
4.3
—
—
(6.4)
(535.9)
Distributions to PBF Energy Company LLC
members
—
—
—
—
—
—
—
—
—
(1.6)
(1.6)
Dividends ($1.025 per common share)
—
—
—
—
—
(119.9)
—
—
—
—
(119.9)
Stock-based compensation
—
—
—
—
35.2
—
—
—
—
—
35.2
Transactions in connection with stock-based
compensation plans
2,931,563
—
—
—
24.7
—
—
—
—
—
24.7
Effect of change in deferred tax assets and
liabilities and tax receivable agreement
obligation
—
—
—
—
(0.6)
—
—
—
—
—
(0.6)
Exchange of PBF Energy Company LLC
Series A Units for PBF Energy Class A
common stock
—
—
—
—
0.6
—
—
—
—
(0.6)
—
Treasury stock purchases
(8,060,191)
—
—
—
—
—
— 8,060,191
(354.6)
—
(354.6)
Balance, December 31, 2024
115,311,992 $
0.1
12 $
— $ 3,338.7 $
3,436.2 $
(8.0) 31,479,723 $ (1,222.8) $
134.4 $ 5,678.6
See notes to consolidated financial statements.
F- 11
PBF ENERGY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Year Ended December 31,
2024
2023
2022
Cash flows from operating activities:
Net income (loss)
$
(540.2) $
2,162.0
$
2,972.8
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Depreciation and amortization
643.0
591.6
533.9
Stock-based compensation
44.3
51.5
54.3
Change in fair value of catalyst obligations
—
(1.1)
2.0
Deferred income taxes
(239.2)
537.0
420.2
Change in Tax Receivable Agreement liability
—
(2.0)
290.3
Non-cash change in inventory repurchase obligations
—
—
(5.4)
Change in fair value of contingent consideration, net
(3.3)
(45.8)
48.3
Loss on extinguishment of debt
—
5.7
66.1
Pension and other post-retirement benefit costs
51.9
47.9
47.6
Loss from equity method investment
47.4
45.3
—
Loss (gain) on formation of SBR equity method investment
8.7
(925.1)
—
Loss (gain) on sale of assets
0.4
(1.3)
0.9
Changes in operating assets and liabilities:
Accounts receivable
197.5
93.8
(178.8)
Inventories
587.9
(409.0)
(258.5)
Prepaid and other current assets
19.9
(102.0)
(5.4)
Accounts payable
(196.7)
124.7
(95.7)
Accrued expenses
(475.9)
(743.5)
881.0
Deferred revenue
(20.3)
23.5
(2.1)
Payment related to Tax Receivable Agreement
(44.8)
—
—
Other assets and liabilities
(37.2)
(114.7)
0.5
Net cash provided by operating activities
$
43.4
$
1,338.5
$
4,772.0
Cash flows from investing activities:
Expenditures for property, plant and equipment
(390.9)
(659.6)
(633.3)
Expenditures for deferred turnaround costs
(576.7)
(473.5)
(311.6)
Expenditures for other assets
(40.7)
(40.5)
(66.0)
Equity method investment - contribution
(35.0)
(15.4)
—
Equity method investment - return of capital
1.8
846.0
—
Proceeds from sale of assets
—
4.4
—
Net cash used in investing activities
$
(1,041.5) $
(338.6) $
(1,010.9)
See notes to consolidated financial statements.
F- 12
PBF ENERGY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(in millions)
Year Ended December 31,
Cash flows from financing activities:
2024
2023
2022
PBFX Merger Transaction payment
$
—
$
—
$
(303.7)
Dividend payments
(119.0)
(105.8)
(24.7)
Distributions to PBFX Public Unitholders
—
—
(40.3)
Distributions to PBF Energy Company LLC members other than PBF
Energy
(1.6)
(5.3)
(8.6)
Proceeds from 2030 7.875% Senior Notes
—
496.6
—
Repurchase of 2028 6.00% Senior Notes
—
—
(21.1)
Redemption of 2025 7.25% Senior Notes
—
(666.2)
—
Repurchase of 2025 7.25% Senior Notes
—
—
(4.8)
Redemption of 2025 9.25% Senior Secured Notes
—
—
(1,307.4)
Proceeds from revolver borrowings
200.0
—
400.0
Repayments of revolver borrowings
—
—
(1,300.0)
Repayments of PBFX revolver borrowings
—
—
(100.0)
Redemption of PBFX 2023 Senior Notes
—
(525.0)
—
Settlements of precious metal catalyst obligations
—
(3.1)
(56.2)
Payments on financing leases
(12.2)
(14.1)
(11.3)
Proceeds from insurance premium financing
123.2
13.0
2.1
Payments of insurance premium financing
(111.9)
—
—
Transactions in connection with stock-based compensation plans, net
1.4
38.3
67.8
Payments of contingent consideration
—
(80.1)
(3.1)
Share repurchases of PBF Energy’s Class A common stock
(329.1)
(532.5)
(156.4)
Deferred financing costs and other
(0.1)
(35.8)
(31.3)
Net cash used in financing activities
$
(249.3) $
(1,420.0) $
(2,899.0)
Net change in cash and cash equivalents
(1,247.4)
(420.1)
862.1
Cash and cash equivalents, beginning of period
1,783.5
2,203.6
1,341.5
Cash and cash equivalents, end of period
$
536.1
$
1,783.5
$
2,203.6
Supplemental cash flow disclosures
Non-cash activities:
Accrued and unpaid capital expenditures
$
85.5
$
145.0
$
166.1
Assets acquired or remeasured under operating and financing leases
288.6
271.6
54.7
Contribution of assets to SBR equity method investment
(8.7)
(748.3)
—
Settlement of affiliate note payable to fund investment in SBR working
capital
—
(74.9)
—
Cash paid during the year for:
Interest, net of capitalized interest of $18.6, $38.2 and $25.0 in 2024,
2023 and 2022, respectively
$
93.1
$
103.6
$
249.7
Income taxes
17.7
299.0
148.9
See notes to consolidated financial statements.
F- 13
1. DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION
Description of the Business
PBF Energy Inc. (“PBF Energy”) is the sole managing member of PBF Energy Company LLC (“PBF LLC”),
with a controlling interest in PBF LLC and its subsidiaries. PBF Energy consolidates the financial results of
PBF LLC and its subsidiaries and records a noncontrolling interest in its Consolidated Financial Statements
representing the economic interests of PBF LLC’s members other than PBF Energy (refer to “Note 14 -
Noncontrolling Interests”).
PBF Energy holds a 99.3% economic interest in PBF LLC as of December 31, 2024 through its ownership of
PBF LLC Series C Units, which are held solely by PBF Energy. Holders of PBF LLC Series A Units, which are
held by parties other than PBF Energy (“the members of PBF LLC other than PBF Energy”), hold the remaining
0.7% economic interest in PBF LLC. In addition, the amended and restated limited liability company agreement
of PBF LLC provides that any PBF LLC Series A Units acquired by PBF Energy will automatically be
reclassified as PBF LLC Series C Units in connection with such acquisition. PBF LLC, together with its
consolidated subsidiaries, owns and operates oil refineries and related facilities in North America. PBF LLC,
together with its subsidiaries, owns an interest in an equity method investment that owns and operates a
biorefinery co-located with the Chalmette refinery in Louisiana (the “Renewable Diesel Facility”).
Collectively, PBF Energy and its consolidated subsidiaries, are referred to hereinafter as the “Company” unless
the context otherwise requires.
Substantially all of the Company’s operations are in the United States. The Company operates in two reportable
segments: Refining and Logistics. The Company’s oil refineries are all engaged in the refining of crude oil and
other feedstocks into petroleum products and represent the Refining segment. PBF Logistics LP (“PBFX”)
operates logistics assets such as crude oil and refined products terminals, pipelines and storage facilities. The
Logistics segment consists solely of PBFX’s operations.
Investment in Equity Method Investee
On June 27, 2023, the Company contributed certain assets to St. Bernard Renewables LLC (“SBR”), a jointly
held investment between the Company and Eni Sustainable Mobility US. Inc., a controlled subsidiary of Eni
S.p.A. (collectively “Eni”). The Company accounts for its 50% equity ownership of SBR as an equity method
investment, as the Company has significant influence, but not control, over SBR.
PBFX Merger Transaction
On November 30, 2022, PBF Energy, PBF LLC, PBFX Holdings Inc., a Delaware corporation and wholly-
owned subsidiary of PBF LLC, Riverlands Merger Sub LLC, a Delaware limited liability company and wholly
owned subsidiary of PBF LLC, PBFX, and PBF Logistics GP LLC closed on a definitive agreement (the
“Merger Agreement”) pursuant to which PBF Energy and PBF LLC acquired all of the publicly held common
units in PBFX representing limited partner interests in the master limited partnership not already owned by
certain wholly-owned subsidiaries of PBF Energy and its affiliates (the “Merger Transaction”). Subsequent to
closing on the Merger Transaction, PBFX became an indirect wholly-owned subsidiary of PBF Energy and PBF
LLC.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 14
At the effective time of the closing of the Merger Transaction, pursuant to the terms of the Merger Agreement,
each PBFX Public Common Unit was converted into the right to receive: (i) 0.27 of a share of Class A Common
Stock, par value $0.001 per share, of PBF Energy, (ii) $9.25 in cash, without interest, and (iii) any cash in lieu
of fractional shares of PBF Energy Common Stock to which the holder thereof became entitled upon surrender
of such PBFX Public Common Units in accordance with the Merger Agreement. Such Merger Agreement
consideration totaled $303.7 million in cash and resulted in the issuance of 8,864,684 shares of PBF Energy
Class A common stock. The PBFX Common Units owned by PBF LLC and PBFX Holdings Inc. and the non-
economic general partner interest remained outstanding and were unaffected by the Merger Transaction. There
was no change in ownership of the non-economic general partner interest.
The Merger Transaction was accounted for in accordance with Financial Accounting Standards Board
(“FASB”) Accounting Standards Codification (“ASC”) 810, Consolidation. Because the Company controlled
PBFX both before and after the Merger Transaction, the changes in the Company’s ownership interest in PBFX
resulting from the Merger Transaction was accounted for as an equity transaction, and no gain or loss was
recognized in the Company’s Consolidated Statements of Operations. In addition, the tax effects of the Merger
Transaction were recorded as adjustments to other assets, deferred income taxes and additional paid-in capital
consistent with ASC 740, Income Taxes (“ASC 740”).
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation and Presentation
These Consolidated Financial Statements include the accounts of PBF Energy and subsidiaries in which PBF
Energy has a controlling interest. All intercompany accounts and transactions have been eliminated in
consolidation.
Cost Classifications
Cost of products and other consists of the cost of crude oil, other feedstocks, blendstocks and purchased refined
products and the related in-bound freight and transportation costs.
Operating expenses (excluding depreciation and amortization) consists of direct costs of labor, maintenance and
services, utilities, property taxes, environmental compliance costs and other direct operating costs incurred in
connection with the Company’s refining operations. Such expenses exclude depreciation related to refining and
logistics assets that are integral to the refinery production process, which is presented separately as Depreciation
and amortization expense as a component of Cost of sales on the Company’s Consolidated Statements of
Operations.
Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the
United States requires management to make estimates and assumptions that affect the reported amounts of
assets, liabilities, revenues and expenses and the related disclosures. Actual results could differ from those
estimates.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 15
Impairment Assessment of Long-Lived Assets and Definite-Lived Intangibles
The Company evaluates long-lived assets for impairment on a continual basis and reassesses the reasonableness
of their related useful lives whenever events or changes in circumstances warrant assessment. Possible
triggering events may include, among other things, significant adverse changes in the business climate, market
conditions, environmental regulations or a determination that it is more likely than not that an asset or an asset
group will be sold or retired before its estimated useful life. These possible triggering events of impairment may
impact the Company’s assumptions related to future throughput levels, future operating revenues, expenses and
gross margin, levels of anticipated capital expenditures and remaining useful life. Long-lived assets are tested
for recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset
may not be recoverable. A long-lived asset is not recoverable if its carrying amount exceeds the sum of the
undiscounted cash flows expected to result from its use, early retirement or disposition. Cash flows for long-
lived assets/asset groups are determined at the lowest level for which identifiable cash flows exist. The cash
flows from the refinery asset groups are evaluated individually regardless of product mix or fuel type produced.
If a long-lived asset is not recoverable, an impairment loss is recognized for the amount by which the carrying
amount of the long-lived asset exceeds its fair value, with fair value determined based on discounted estimated
net cash flows or other appropriate methods. The Company’s assumptions incorporate inherent uncertainties
that are at times difficult to predict and could result in impairment charges or accelerated depreciation in future
periods if actual results materially differ from the estimated assumptions used.
Equity Method Investment
For equity investments that are not required to be consolidated under the variable or voting interest model, the
Company evaluates the level of influence it is able to exercise over an entity’s operations to determine whether
to use the equity method of accounting. The Company’s judgment regarding the level of influence over an
equity method investment includes considering key factors such as its ownership interest, participation in
policy-making and other significant decisions and material intercompany transactions. Equity investments for
which the Company determines it has significant influence are accounted for as equity method investments.
Amounts recognized for equity method investments are shown separately in the Company’s Consolidated
Balance Sheets and adjusted for its share of the net earnings and losses of the investee and cash distributions,
which is separately stated in its Consolidated Statements of Operations and its Consolidated Statements of Cash
Flows.
Contributions made to equity method investees at times are in the form of loan agreements. Loans provided to
equity method investees that are made based on the Company's proportionate ownership percentage are
accounted for as “in-substance capital contributions” and are treated as an increase to the investment. In
addition, the Company treats interest paid in kind on the loan agreements as an “in-substance return of capital”
and reduces its investment accordingly, rather than recording interest income.
The Company evaluates its equity method investments presented for impairment whenever events or changes in
circumstances indicate that the carrying amounts of such investments may be impaired. There were no
impairment losses recorded on equity method investments for the year ended December 31, 2024. See “Note 6 -
Equity Investment in SBR” for further information on the Company’s only current equity method investment.
Variable Interest Entities
The Company’s Consolidated Financial Statements include the financial statements of its subsidiaries and
variable interest entities (“VIE”), of which the Company is the primary beneficiary. The Company evaluates all
legal entities in which it holds an ownership or other financial interest to determine if the entity is a VIE.
Variable interests can be contractual, ownership or other financial interests in an entity that change with changes
in the fair value of the VIE’s assets. If the Company is not the primary beneficiary, the general partner or
another limited partner may consolidate the VIE, and the Company records the investment as an equity method
investment.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 16
Cash and Cash Equivalents
The Company considers all highly liquid investments with original maturities of three months or less to be cash
equivalents. The carrying amount of the cash equivalents approximates fair value due to the short-term maturity
of those instruments.
Concentrations of Credit Risk
For the years ended December 31, 2024 and December 31, 2023, only one customer, Shell plc (“Shell”),
accounted for 10% or more of the Company’s revenues (approximately 13% and 14%, respectively).
As of December 31, 2024 and December 31, 2023, only one customer, Shell, accounted for 10% or more of the
Company’s total trade accounts receivable (approximately 18% and 19%, respectively).
Revenue Recognition
The Company sells various refined products primarily through its refinery subsidiaries and recognizes revenue
related to the sale of products when control of the promised goods or services is transferred to the customers, in
an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or
services. Refer to “Note 17 - Revenues” for further discussion of the Company’s revenue recognition policy.
Accounts Receivable
Accounts receivable are carried at invoiced amounts. An allowance for doubtful accounts is established, if
required, to report such amounts at their estimated net realizable value. In estimating probable losses,
management reviews accounts that are past due and determines if there are any known disputes.
Excise taxes on sales of refined products that are collected from customers and remitted to various
governmental agencies are reported on a net basis.
Inventory
Inventories are carried at the lower of cost or market (“LCM”). The cost of crude oil, feedstocks, blendstocks
and refined products are determined under the last-in first-out (“LIFO”) method using the dollar value LIFO
method with increments valued based on average purchase prices during the year. The cost of supplies and other
inventories is determined principally on the weighted average cost method.
RINs
The Company is subject to obligations to purchase Renewable Identification Numbers (“RINs”) required to
comply with the renewable fuel standard implemented by Environmental Protection Agency (“EPA”), which
sets annual quotas for the quantity of renewable fuels (such as ethanol) that must be blended into motor fuels
consumed in the United States (the “RFS”). The Company’s overall RINs obligation is based on a percentage of
domestic shipments of on-road fuels as established by EPA. To the degree the Company is unable to blend the
required amount of biofuels to satisfy its RINs obligation, RINs must be purchased on the open market to avoid
penalties and fines. The Company records its RINs obligation on a net basis in Accrued expenses when its RINs
liability is greater than the amount of RINs earned and purchased in a given period and in Prepaid and other
current assets when the amount of RINs earned and purchased is greater than the RINs liability.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 17
Leases
The Company leases office space, office equipment, refinery facilities and equipment, railcars and other
logistics assets primarily under non-cancelable operating leases, with terms typically ranging from one to
twenty years, subject to certain renewal options as applicable. The Company considers those renewal or
termination options that are reasonably certain to be exercised in the determination of the lease term and initial
measurement of lease liabilities and right-of-use assets. Lease expense for operating lease payments is
recognized on a straight-line basis over the lease term. Interest expense for finance leases is incurred based on
the carrying value of the lease liability. Leases with an initial term of 12 months or less are not recorded on the
Company’s Consolidated Balance Sheets.
The Company determines whether a contract is or contains a lease at inception of the contract and whether that
lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate
implicit in the lease to discount lease payments to present value; however, most of the Company’s leases do not
provide a readily determinable implicit rate. Therefore, the Company must discount lease payments based on an
estimate of its incremental borrowing rate.
For substantially all classes of underlying assets, the Company has elected the practical expedient not to
separate lease and non-lease components, which allows for combining the components if certain criteria are
met. For certain leases of refinery support facilities, the Company accounts for the non-lease service component
separately.
Property, Plant and Equipment
Property, plant and equipment additions are recorded at cost. The Company capitalizes costs associated with the
preliminary, pre-acquisition and development/construction stages of a major construction project. The Company
capitalizes the interest cost associated with major construction projects based on the effective interest rate of
total borrowings. The Company also capitalizes costs incurred in the acquisition and development of software
for internal use, including the costs of software, materials, consultants and payroll-related costs for employees
incurred in the application development stage.
Depreciation is computed using the straight-line method over the following estimated useful lives:
Computers, furniture and fixtures
3-7 years
Leasehold improvements
20 years
Process units and equipment
5-25 years
Pipeline and equipment
5-25 years
Buildings
25 years
Railcars
50 years
Maintenance and repairs are charged to operating expenses as they are incurred. Improvements and betterments,
which extend the lives of the assets, are capitalized.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 18
Deferred Charges and Other Assets, Net
Deferred charges and other assets include refinery turnaround costs, catalyst, precious metal catalysts, linefill,
deferred financing costs and intangible assets. Refinery turnaround costs, which are incurred in connection with
planned major maintenance activities, are capitalized when incurred and amortized on a straight-line basis over
the period of time estimated to lapse until the next turnaround occurs, which is based on an engineering
assessment. The amortization period generally ranges from 3 to 6 years; however, based on the specific facts
and circumstances, different periods of deferral may occur.
Precious metal catalysts, linefill and certain other intangibles are considered indefinite-lived assets as they are
not expected to deteriorate in their prescribed functions. Such assets are assessed for impairment in connection
with the Company’s review of its long-lived assets.
Deferred financing costs are capitalized when incurred and amortized over the life of the loan.
Intangible assets with finite lives primarily consist of emission credits, permits and customer relationships and
are amortized over their estimated useful lives (generally 1 to 10 years).
Asset Retirement Obligations
The Company records an asset retirement obligation at fair value for the estimated cost to retire a tangible long-
lived asset at the time the Company incurs that liability, which is generally when the asset is purchased,
constructed, or leased. The Company records the liability when it has a legal or contractual obligation to incur
costs to retire the asset and when a reasonable estimate of the fair value of the liability can be made. If a
reasonable estimate cannot be made at the time the liability is incurred, the Company will record the liability
when sufficient information is available to estimate the liability’s fair value. Certain of the Company’s asset
retirement obligations are based on its legal obligation to perform remedial activity at its refinery sites when it
permanently ceases operations of the long-lived assets. The Company therefore considers the settlement date of
these obligations to be indeterminable. Accordingly, the Company cannot calculate an associated asset
retirement liability for these obligations at this time. The Company will measure and recognize the fair value of
these asset retirement obligations when the settlement date is determinable.
Environmental Matters
Liabilities for future remediation costs are recorded when environmental assessments and/or remedial efforts are
probable, and the costs can be reasonably estimated. Other than for assessments, the timing and magnitude of
these accruals generally are based on the completion of investigations or other studies or a commitment to a
formal plan of action. Environmental liabilities are based on best estimates of probable future costs using
currently available technology and applying current regulations, as well as the Company’s own internal
environmental policies. The measurement of environmental remediation liabilities may be discounted to reflect
the time value of money if the aggregate amount and timing of cash payments of the liabilities are fixed or
reliably determinable. The actual settlement of the Company’s liability for environmental matters could
materially differ from its estimates due to a number of uncertainties such as the extent of contamination,
changes in environmental laws and regulations, potential improvements in remediation technologies and the
participation of other responsible parties.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 19
Stock-Based Compensation
Stock-based compensation includes the accounting effect of options to purchase PBF Energy Class A common
stock granted by the Company to certain employees, Series A warrants issued or granted by PBF LLC to
employees in connection with their acquisition of PBF LLC Series A units, options to acquire Series A units of
PBF LLC granted by PBF LLC to certain employees, Series B units of PBF LLC that were granted to certain
members of management and restricted PBF LLC Series A Units and restricted PBF Energy Class A common
stock granted to certain directors and officers. The estimated fair value of the options to purchase PBF Energy
Class A common stock and the PBF LLC Series A warrants and options is based on the Black-Scholes option
pricing model and the fair value of the PBF LLC Series B units is estimated based on a Monte Carlo simulation
model. The estimated fair value is amortized as stock-based compensation expense on a straight-line method
over the vesting period and included in General and administrative expense with forfeitures recognized in the
period they occur.
The Company grants performance share unit awards and performance unit awards to certain key employees.
Performance awards granted to employees prior to November 1, 2020 are based on a three-year performance
cycle with four measurement periods and performance awards granted to employees after November 1, 2020 are
based on a three-year performance cycle having a single measurement period. The payout for each, which
ranges from zero to 200%, is based on the relative ranking of the total shareholder return (“TSR”) of PBF
Energy’s common stock as compared to the TSR of a selected group of industry peer companies over an
average of four measurement periods. The performance share unit awards and performance unit awards are each
measured at fair value based on Monte Carlo simulation models. The performance share unit awards will be
settled in PBF Energy Class A common stock and are accounted for as equity awards and the performance unit
awards will be settled in cash and are accounted for as liability awards.
Income Taxes
As a result of the PBF Energy’s acquisition of PBF LLC Series A Units or exchanges of PBF LLC Series A
Units for PBF Energy Class A common stock, PBF Energy expects to benefit from amortization and other tax
deductions reflecting the step up in tax basis in the acquired assets. Those deductions will be allocated to PBF
Energy and will be taken into account in reporting PBF Energy’s taxable income. As a result of a federal
income tax election made by PBF LLC, applicable to a portion of PBF Energy’s acquisition of PBF LLC Series
A Units, the income tax basis of the assets of PBF LLC, underlying a portion of the units PBF Energy acquired,
has been adjusted based upon the amount that PBF Energy paid for that portion of its PBF LLC Series A Units.
PBF Energy entered into a tax receivable agreement with the PBF LLC Series A and PBF LLC Series B
unitholders (the “Tax Receivable Agreement”), which provides for the payment by PBF Energy equal to 85% of
the amount of the benefits, if any, that PBF Energy is deemed to realize as a result of (i) increases in tax basis
and (ii) certain other tax benefits related to entering into the Tax Receivable Agreement, including tax benefits
attributable to payments under the Tax Receivable Agreement. As a result of these transactions, PBF Energy’s
tax basis in its share of PBF LLC’s assets will be higher than the book basis of these same assets. This resulted
in a deferred tax asset of $165.0 million as of December 31, 2024.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 20
Deferred taxes are calculated using a liability method, whereby deferred tax assets are recognized for deductible
temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary
differences represent the differences between reported amounts of assets and liabilities and their tax bases.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely
than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities
are adjusted for the effect of changes in tax laws and rates on the date of enactment. PBF Energy recognizes tax
benefits for uncertain tax positions only if it is more likely than not that the position is sustainable based on its
technical merits. Interest and penalties on uncertain tax positions are included as a component of the provision
for income taxes on the Consolidated Statements of Operations. The Company assesses the available positive
and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of
existing deferred tax assets. On the basis of this evaluation, a valuation allowance is recorded to recognize only
the portion of deferred tax assets that are more likely than not to be realized. The amount of the deferred tax
assets considered realizable, however, could be adjusted if estimates of future taxable income during the
carryover period are reduced or increased or if objective negative evidence in the form of cumulative losses is
no longer present and additional weight is given to subjective evidence such as PBF Energy’s projections for
future taxable income.
The federal tax returns for all years since 2020 and state tax returns for all years since 2020 (see “Note 18 -
Income Taxes”) are subject to examination by the respective tax authorities.
Net Income Per Share
Net income per share is calculated by dividing the net income available to PBF Energy Class A common
stockholders by the weighted average number of shares of PBF Energy Class A common stock outstanding
during the period. Diluted net income per share is calculated by dividing the net income available to PBF
Energy Class A common stockholders, adjusted for the net income attributable to the noncontrolling interest
and the assumed income tax expense thereon, by the weighted average number of PBF Energy Class A common
shares outstanding during the period adjusted to include the assumed exchange of all PBF LLC Series A units
outstanding for PBF Energy Class A common stock, if applicable under the if converted method, and the
potentially dilutive effect of outstanding options to purchase shares of PBF Energy Class A common stock,
performance share awards and options and warrants to purchase PBF LLC Series A Units, subject to forfeiture
utilizing the treasury stock method.
Pension and Other Post-Retirement Benefits
The Company recognizes an asset for the overfunded status or a liability for the underfunded status of its
pension and post-retirement benefit plans. The funded status is recorded within Other long-term liabilities or
Other non-current assets. Changes in the plans’ funded status are recognized in other comprehensive income in
the period the change occurs.
Fair Value Measurement
A fair value hierarchy (Level 1, Level 2, or Level 3) is used to categorize fair value amounts based on the
quality of inputs used to measure fair value. Accordingly, fair values derived from Level 1 inputs utilize quoted
prices in active markets for identical assets or liabilities. Fair values derived from Level 2 inputs are based on
quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are
either directly or indirectly observable for the asset or liability. Level 3 inputs are unobservable inputs for the
asset or liability, and include situations where there is little, if any, market activity for the asset or liability.
The Company uses appropriate valuation techniques based on the available inputs to measure the fair values of
its applicable assets and liabilities. When available, the Company measures fair value using Level 1 inputs
because they generally provide the most reliable evidence of fair value. In some valuations, the inputs may fall
into different levels in the hierarchy. In these cases, the asset or liability level within the fair value hierarchy is
based on the lowest level of input that is significant to the fair value measurements.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 21
Financial Instruments
The estimated fair value of financial instruments has been determined based on the Company’s assessment of
available market information and appropriate valuation methodologies. The Company’s non-derivative financial
instruments that are included in current assets and current liabilities are recorded at cost in the Consolidated
Balance Sheets. The estimated fair value of these financial instruments approximates their carrying value due to
their short-term nature. Derivative instruments are recorded at fair value in the Consolidated Balance Sheets.
The Company’s commodity contracts are measured and recorded at fair value using Level 1 inputs based on
quoted prices in an active market, Level 2 inputs based on quoted market prices for similar instruments, or
Level 3 inputs based on third-party sources and other available market based data. The Company’s catalyst
obligations and derivatives related to the Company’s crude oil and feedstocks and refined product purchase
obligations are measured and recorded at fair value using Level 2 inputs on a recurring basis, based on
observable market prices for similar instruments.
Derivative Instruments
The Company is exposed to market risk, primarily related to changes in commodity prices for the crude oil and
feedstocks used in the refining process as well as the prices of the refined products sold, and the risk associated
with the price of credits needed to comply with various governmental and regulatory environmental compliance
programs. The accounting treatment for commodity and environmental compliance contracts depends on the
intended use of the particular contract and on whether or not the contract meets the definition of a derivative.
All derivative instruments, not designated as normal purchases or sales, are recorded in the Consolidated
Balance Sheets as either assets or liabilities measured at their fair values. Changes in the fair value of derivative
instruments that either are not designated or do not qualify for hedge accounting treatment or normal purchase
or normal sale accounting are recognized in earnings. Contracts qualifying for the normal purchase and sales
exemption are accounted for upon settlement. Cash flows related to derivative instruments that are not
designated or do not qualify for hedge accounting treatment are included in operating activities.
The Company designates certain derivative instruments as fair value hedges of a particular risk associated with
a recognized asset or liability. At the inception of the hedge designation, the Company documents the
relationship between the hedging instrument and the hedged item, as well as its risk management objective and
strategy for undertaking various hedge transactions. Derivative gains and losses related to these fair value
hedges, including hedge ineffectiveness, are recorded in cost of sales along with the change in fair value of the
hedged asset or liability attributable to the hedged risk. Cash flows related to derivative instruments that are
designated as fair value hedges are included in operating activities.
Economic hedges are hedges not designated as fair value or cash flow hedges for accounting purposes that are
used to (i) manage price volatility in certain refinery feedstock and refined product inventories, and (ii) manage
price volatility in certain forecasted refinery feedstock purchases and refined product sales. These instruments
are recorded at fair value and changes in the fair value of the derivative instruments are recognized currently in
cost of sales.
Derivative accounting is complex and requires management judgment in the following respects: identification
of derivatives and embedded derivatives, determination of the fair value of derivatives, documentation of hedge
relationships, assessment and measurement of hedge ineffectiveness and election and designation of the normal
purchases and sales exemption. All of these judgments, depending upon their timing and effect, can have a
significant impact on the Company’s earnings.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 22
Recently Adopted Accounting Pronouncements
In November 2023, FASB issued Accounting Standard Update (“ASU”) 2023-07, “Segment Reporting (Topic
280) - Improvements to Reportable Segment Disclosures.” The amendments in this ASU improve reportable
segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.
The Company’s adoption of this guidance in December 2024 resulted in additional disclosure requirements but
did not have a significant impact on its Consolidated Financial Statements.
Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income –
Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU
2024-03”) which introduces new disclosure requirements aimed at enhancing the transparency of expense
information presented in the financial statements. Specifically, it mandates that public business entities
disaggregate certain expense captions presented on the face of the Consolidated Statements of Operations into
specified natural expense categories within the notes to the financial statements. For public business entities, the
amendments are effective for annual reporting periods beginning after December 15, 2026, and interim
reporting periods within those annual periods, with early adoption permitted. An entity may apply the
amendments in this ASU prospectively or retrospectively. We are currently evaluating the impact of adopting
ASU 2024-03 on our consolidated financial statements. While we do not anticipate that the adoption of this
ASU will have a material impact on our Consolidated Financial Statements, it will result in additional disclosure
requirements in the notes to our financial statements. We will continue to monitor any further guidance or
interpretations by the FASB related to this ASU and will provide updates in future filings.
In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) - Improvements to Income Tax
Disclosures” which focuses on the rate reconciliation and income taxes paid. ASU No. 2023-09 requires a
public business entity to disclose, on an annual basis, a tabular rate reconciliation using both percentages and
currency amounts, broken out into specified categories with certain reconciling items further broken out by
nature and jurisdiction to the extent those items exceed a specified threshold. In addition, all entities are
required to disclose income taxes paid, net of refunds received disaggregated by federal, state/local, and foreign
and by jurisdiction if the amount is at least 5% of total income tax payments, net of refunds received. For public
business entities, the new standard is effective for annual periods beginning after December 15, 2024, with early
adoption permitted. An entity may apply the amendments in this ASU prospectively or retrospectively. The
Company’s adoption of this guidance will result in additional disclosure requirements but is not anticipated to
have a significant impact on its Consolidated Financial Statements.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 23
3. CURRENT EXPECTED CREDIT LOSSES
Credit Losses
The Company has exposure to credit losses primarily through its sales of refined products. The Company
evaluates creditworthiness on an individual customer basis. The Company utilizes a financial review model for
purposes of evaluating creditworthiness which is based on information from financial statements and credit
reports. The financial review model enables the Company to assess the customer’s risk profile and determine
credit limits on the basis of their financial strength, including but not limited to, their liquidity, leverage, debt
serviceability, longevity and how they pay their bills. The Company may require security in the form of letters
of credit or cash payments in advance of product delivery for certain customers that are deemed higher risk.
The Company’s payment terms on its trade receivables are relatively short, generally 30 days or less for a
substantial majority of its refined products. As a result, the Company’s collection risk is mitigated to a certain
extent by the fact that sales are collected in a relatively short period of time, allowing for the ability to reduce
exposure on defaults if collection issues are identified. Notwithstanding, the Company reviews each customer’s
credit risk profile at least annually or more frequently if warranted.
The Company performs a quarterly allowance for doubtful accounts analysis to assess whether an allowance
needs to be recorded for any outstanding trade receivables. In estimating credit losses, management reviews
accounts that are past due, have known disputes or have experienced any negative credit events that may result
in future collectability issues. There was no allowance for doubtful accounts recorded as of December 31, 2024
or December 31, 2023.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 24
4. INVENTORIES
Inventories consisted of the following:
(in millions)
December 31,
2024
December 31,
2023
Crude oil and feedstocks
$
1,232.7
$
1,495.4
Refined products and blendstocks
1,194.6
1,536.5
Warehouse stock and other
168.0
151.2
2,595.3
3,183.1
Lower of cost or market adjustment
—
—
Total inventories
$
2,595.3
$
3,183.1
As of December 31, 2024 and December 31, 2023 there was no LCM inventory adjustment recorded as the
replacement value of inventories exceeded the LIFO carrying value by approximately $7.7 million and
$49.9 million, respectively, reflecting no LCM inventory reserve.
An actual valuation of inventories valued under the LIFO method is made at the end of each year based on
inventory levels and costs at that time. The Company recorded a pre-tax charge related to a LIFO layer
decrement of $124.5 million in the Refining segment during the year ended December 31, 2024. The majority
of the decrement recorded in 2024 related to the Company’s East Coast and Gulf Coast LIFO inventory layers.
There were no significant decrements recorded during the year ended December 31, 2023.
On July 31, 2023, the Company terminated the third amended and restated inventory intermediation agreement
(the “Inventory Intermediation Agreement”) previously entered into by and among PBF Holding Company LLC
(“PBF Holding”) and its subsidiaries, Delaware City Refining Company LLC, Paulsboro Refining Company
LLC and Chalmette Refining, L.L.C. (“Chalmette Refining”) (collectively, the “PBF Entities”), and J. Aron &
Company, a subsidiary of The Goldman Sachs Group, Inc. (“J. Aron”). The Company made a payment of
$268.0 million for the inventory previously held by J. Aron, inclusive of $13.5 million of related costs
associated with exiting the agreement. Pursuant to the Inventory Intermediation Agreement, J. Aron had
purchased and held title to certain inventory, including crude oil, intermediate and certain finished products
purchased or produced by the Paulsboro and Delaware City refineries (and, at the election of the PBF Entities,
the Chalmette refinery) (the “Refineries”) and delivered into storage tanks at the Refineries. Following the early
termination, the Company purchased, and now owns, all of the inventory previously held by J. Aron.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 25
5. PROPERTY, PLANT AND EQUIPMENT, NET
Property, plant and equipment, net consisted of the following:
(in millions)
December 31,
2024
December 31,
2023
Processing units, pipelines and equipment
$
5,727.4
$
5,463.5
Land
527.9
530.9
Construction in progress
507.6
468.9
Computers, furniture and fixtures
258.3
221.5
Buildings and leasehold improvements
212.1
205.4
7,233.3
6,890.2
Less—Accumulated depreciation
(2,165.6)
(1,912.1)
Total property, plant and equipment, net
$
5,067.7
$
4,978.1
Depreciation expense for the years ended December 31, 2024, 2023 and 2022 was $255.5 million, $243.2
million and $236.5 million, respectively. The Company capitalized $18.6 million and $38.2 million in interest
during 2024 and 2023, respectively, in connection with construction in progress.
6. EQUITY INVESTMENT IN SBR
On June 27, 2023, the Company and Eni consummated the closing of the equity method investment transaction
and the capitalization of SBR, a jointly held investee designed to own, develop, and operate the Renewable
Diesel Facility. The Company contributed the SBR business with an estimated fair value of approximately
$1.69 billion, excluding working capital, in exchange for $431.0 million of cash contributed by Eni at close and
its 50% interest in the entity, which includes rights to special distributions from SBR (with corresponding
amounts funded by Eni) based on the achievement of certain project milestones and performance criteria. The
Company received the first special distribution of $414.6 million subsequent to the commercial start up of the
pre-treatment unit in July 2023. These special distributions are reflected as return of capital on the Company’s
Consolidated Statement of Cash flows under investing activities. During the year ended December 31, 2023, the
Company recorded a gain of $925.1 million resulting from the difference between the fair value of the
consideration received, including its 50% noncontrolling interest, and the carrying value of the related assets
contributed. During the year ended December 31, 2024, the Company recorded an $8.7 million reduction of that
gain.
The Company determined that SBR is a VIE because the entity does not have sufficient equity at risk to fund its
operations without additional financial support from its owners. The Company is not the primary beneficiary of
this VIE because it does not have the ability to make the most relevant decisions that significantly affect its
economic performance.
The investment in SBR is accounted for under the equity method, and the Company has a maximum exposure to
loss from it based on its recognized investment value.
The Company has entered into agreements with SBR and/or its subsidiary that allow the Company to purchase
environmental credits and hydrocarbon products at its election. The Company does not have any obligation to
buy a specific amount of environmental credits under such agreements unless otherwise agreed. Refer to “Note
10- Related Party Transactions” for further information regarding related party transactions with SBR.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 26
7. DEFERRED CHARGES AND OTHER ASSETS, NET
Deferred charges and other assets, net consisted of the following:
(in millions)
December 31,
2024
December 31,
2023
Deferred turnaround costs, net
$
1,086.6
$
860.8
Catalyst, net (a)
191.1
180.4
Environmental credits
42.5
42.5
Linefill
27.4
27.4
Pension plan assets
19.4
18.8
Other
12.5
13.1
Total deferred charges and other assets, net
$
1,379.5
$
1,143.0
(a) Catalyst, net includes $115.0 million and $114.2 million of indefinite-lived precious metal catalysts as of
December 31, 2024 and December 31, 2023, respectively.
The Company recorded amortization expense related to deferred turnaround costs, catalyst and intangible assets
of $358.3 million, $314.4 million and $262.0 million for the years ended December 31, 2024, 2023 and 2022,
respectively.
Intangible assets - net, included in “Other” above, primarily consists of customer relationships, permits and
emission credits. Our net balance as of December 31, 2024 and December 31, 2023 is shown below:
(in millions)
December 31,
2024
December 31,
2023
Intangible assets - gross
$
25.5
$
25.5
Accumulated amortization
(17.4)
(16.9)
Intangible assets - net
$
8.1
$
8.6
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 27
8. ACCRUED EXPENSES
Accrued expenses consisted of the following:
(in millions)
December 31,
2024
December 31,
2023
Inventory-related accruals
$
1,398.8
$
1,716.2
Renewable energy credit and emissions obligations (a)
465.9
429.8
Accrued transportation costs
175.2
170.5
Excise and sales tax payable
150.7
137.8
Accrued utilities
71.5
71.0
Accrued capital expenditures
52.7
85.5
Accrued purchases - SBR
47.8
28.3
Accrued refinery maintenance and support costs
45.5
60.2
Accrued interest
29.5
32.4
Accrued salaries and benefits
23.9
187.3
Current finance lease liabilities
11.2
12.2
Environmental liabilities
9.7
16.6
Contingent consideration
—
21.6
Other
51.1
50.6
Total accrued expenses
$
2,533.5
$
3,020.0
(a) The Company is subject to obligations to purchase RINs required to comply with RFS. The Company’s
overall RINs obligation is based on a percentage of domestic shipments of on-road fuels as established by EPA.
To the degree the Company is unable to blend the required amount of biofuels to satisfy its RINs obligation,
RINs must be purchased on the open market to avoid penalties and fines. The Company records its RINs
obligation on a net basis in Accrued expenses when its RINs liability is greater than the amount of RINs earned
and purchased in a given period and in Prepaid and other current assets when the amount of RINs earned and
purchased is greater than the RINs liability. In addition, the Company is subject to obligations to comply with
federal and state legislative and regulatory measures, including regulations in the state of California pursuant to
Assembly Bill 32 (“AB 32”), to address environmental compliance and greenhouse gas and other emissions.
These requirements include incremental costs to operate and maintain the Company’s facilities as well as to
implement and manage new emission controls and programs. Renewable energy credit and emissions
obligations fluctuate with the volume of applicable product sales and timing of credit purchases. From time to
time, the Company enters into forward purchase commitments in order to acquire its renewable energy and
emissions credits at fixed prices. As of December 31, 2024, the Company had entered into $443.2 million of
such forward purchase commitments with respect to its total accrued renewable energy and emissions
obligations. The Company’s RIN obligations will be settled in accordance with established regulatory deadlines.
The Company’s current AB 32 liability is part of an ongoing triennial period program which will be settled
through 2027.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 28
9. CREDIT FACILITIES AND DEBT
Debt outstanding consisted of the following:
(in millions)
December 31,
2024
December 31,
2023
2028 Senior Notes
$
801.6
$
801.6
2030 Senior Notes
500.0
500.0
Revolving Credit Facility
200.0
—
1,501.6
1,301.6
Unamortized deferred financing costs
(41.6)
(52.5)
Unamortized discount
(2.7)
(3.2)
Long-term debt
$
1,457.3
$
1,245.9
As of December 31, 2024, the Company is in compliance with all covenants, including financial covenants, in
all its debt agreements.
2028 Senior Notes
On January 24, 2020, PBF Holding entered into an indenture among PBF Holding and PBF Holding’s wholly-
owned subsidiary, PBF Finance Corporation (together with PBF Holding, the “Issuers”), the guarantors named
therein (collectively the “Guarantors”), Wilmington Trust, National Association, as Trustee and Deutsche Bank
Trust Company Americas, as Paying Agent, Registrar, Transfer Agent and Authenticating Agent, under which
the Issuers issued $1.0 billion in aggregate principal amount of the 6.00% senior unsecured notes due 2028 (the
“2028 Senior Notes”). The Issuers received net proceeds of approximately $987.0 million from the offering
after deducting the initial purchasers’ discount and offering expenses. The Company primarily used the net
proceeds to fully redeem the 7.00% senior notes due 2023 (the “2023 Senior Notes”), including accrued and
unpaid interest, on February 14, 2020, and to fund a portion of the cash consideration for the acquisition of the
Martinez refinery and related logistics assets. The difference between the carrying value of the 2023 Senior
Notes on the date they were reacquired and the amount for which they were reacquired has been classified as
loss on extinguishment of debt in the Consolidated Statements of Operations.
The 2028 Senior Notes included a registration rights arrangement whereby the Issuer and the Guarantors
consummated an offer to exchange the 2028 Senior Notes for an issue of registered notes with terms
substantially identical to the notes during the fourth quarter of 2020. As such, the Company did not have to
transfer any consideration as a result of the registration rights agreement and thus no loss contingency was
recorded.
The 2028 Senior Notes are guaranteed on a senior unsecured basis by substantially all of PBF Holding’s
subsidiaries. The 2028 Senior Notes and guarantees are senior unsecured obligations and rank equal in right of
payment with all of the Issuers’ and the Guarantors’ existing and future indebtedness, including the PBF
Holding’s asset-based revolving credit facility (“Revolving Credit Facility”) and the 7.875% senior unsecured
notes due 2030 (the “2030 Senior Notes”). The 2028 Senior Notes and the guarantees rank senior in right of
payment to the Issuers’ and the Guarantors’ existing and future indebtedness that is expressly subordinated in
right of payment thereto. The 2028 Senior Notes and the guarantees are effectively subordinated to any of the
Issuers’ and the Guarantors’ existing or future secured indebtedness (including the Revolving Credit Facility) to
the extent of the value of the collateral securing such indebtedness. The 2028 Senior Notes and the guarantees
are structurally subordinated to any existing or future indebtedness and other obligations of the Issuers’ non-
guarantor subsidiaries. In addition, the 2028 Senior Notes contain customary terms, events of default and
covenants for an issuer of non-investment grade debt securities. These covenants include limitations on the
incurrence of additional indebtedness, equity issuances, and payments. Many of these covenants will cease to
apply or will be modified if the 2028 Senior Notes are rated investment grade.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 29
Subsequent to February 15, 2023, the Issuers may redeem all or part of the 2028 Senior Notes, in each case at
the redemption prices described in the indenture, together with any accrued and unpaid interest through the date
of redemption.
2030 Senior Notes
On August 21, 2023, PBF Holding entered into an indenture among the Issuers, the Guarantors, Wilmington
Trust, National Association, as Trustee and Deutsche Bank Trust Company Americas, as Paying Agent,
Registrar, Transfer Agent and Authenticating Agent, under which the Issuers issued $500.0 million in aggregate
principal amount of the 2030 Senior Notes, at an issue price of 99.324%. The Issuers received net proceeds of
approximately $488.8 million from the offering after deducting the initial purchasers’ discount and offering
expenses. The Company used the net proceeds, together with cash on hand, to fully redeem the outstanding
7.25% senior unsecured notes due 2025, including accrued and unpaid interest, on September 13, 2023.
The 2030 Senior Notes are guaranteed on a senior unsecured basis by substantially all of PBF Holding’s
subsidiaries. The 2030 Senior Notes and guarantees are senior unsecured obligations and rank equal in right of
payment with all of the Issuers’ and the Guarantors’ existing and future senior indebtedness, including the
Revolving Credit Facility and the 2028 Senior Notes. The 2030 Senior Notes and the guarantees rank senior in
right of payment to the Issuers’ and the Guarantors’ existing and future indebtedness that is expressly
subordinated in right of payment thereto. The 2030 Senior Notes and the guarantees are effectively subordinated
to any of the Issuers’ and the Guarantors’ existing or future secured indebtedness (including the Revolving
Credit Facility) to the extent of the value of the collateral securing such indebtedness. The 2030 Senior Notes
and the guarantees are structurally subordinated to any existing or future indebtedness and other obligations of
the Issuers’ non-guarantor subsidiaries.
In addition, the 2030 Senior Notes contain customary terms, events of default and covenants for an issuer of
non-investment grade debt securities. These covenants include limitations on the incurrence of additional
indebtedness, equity issuances, and payments. Many of these covenants will cease to apply or will be modified
if the 2030 Senior Notes are rated investment grade.
At any time prior to September 15, 2026, the Issuers may on any one or more occasions redeem up to 35% of
the aggregate principal amount of the 2030 Senior Notes in an amount not greater than the net cash proceeds of
certain equity offerings at a redemption price equal to 107.875% of the principal amount of the 2030 Senior
Notes, plus any accrued and unpaid interest through the date of redemption; provided that at least 65% of the
aggregate principal amount of the notes originally issued under the indenture governing the 2030 Senior Notes
remains outstanding immediately after the occurrence of each such redemption. On or after September 15, 2026,
the Issuers may redeem all or part of the 2030 Senior Notes, in each case at the redemption prices described in
the indenture, together with any accrued and unpaid interest through the date of redemption. In addition, prior to
September 15, 2026, the Issuers may redeem all or part of the 2030 Senior Notes at a “make-whole” redemption
price described in the indenture, together with any accrued and unpaid interest through the date of redemption.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 30
PBF Holding Revolving Credit Facility
On August 23, 2023, PBF Holding and certain of its wholly-owned subsidiaries, as borrowers or subsidiary
guarantors, entered into an amended and restated asset-based revolving credit agreement, among PBF Holding,
Bank of America, National Association as administrative agent, and certain other lenders (the “Revolving Credit
Agreement”). The Revolving Credit Agreement amended and restated the previously existing revolving credit
agreement dated as of May 2, 2018 (as amended from time to time, the “Prior Credit Agreement”). Among
other things, the Revolving Credit Agreement extended the Revolving Credit Facility through August 2028 and
increased the maximum commitment amount under the facility to $3.5 billion from $2.85 billion. The
commitment fees on the unused portion, the interest rate on advances and the fees for letters of credit are
generally consistent with the Prior Credit Agreement. The Revolving Credit Facility contains representations,
warranties and covenants by PBF Holding and the other borrowers, as well as customary events of default and
indemnification obligations that are consistent with those in the Prior Credit Agreement.
PBF Holding may from time to time by written notice to the Administrative Agent (as defined in the Revolving
Credit Agreement) elect to request after the commencement of the revolving availability period and prior to the
revolving maturity date, increases to the existing revolving commitments by an amount not in excess of an
aggregate amount equal to the sum of (1) $500.0 million, plus (2) an amount equal to all voluntary prepayments
that have resulted in permanent reductions of the revolving commitments, plus (3) solely after the use of the
amount set forth in clause (1), an amount equal to suppressed availability determined as of the date of such
notice. Each such notice shall specify (i) the date on which PBF Holding proposes that the increased or new
revolving commitments shall be effective, which shall be a date not less than 5 business days after the date on
which such notice is delivered to the Administrative Agent and (ii) the identity of each Eligible Assignee (as
defined in the Revolving Credit Agreement) to whom PBF Holding proposes any portion of such increased or
new revolving commitments be allocated and the amounts of such allocations; provided that any existing lender
approached to provide all or a portion of the increased or new revolving commitments may elect or decline, in
its sole discretion, to provide such increased or new revolving commitment.
Borrowings under the Revolving Credit Facility bear interest at the Alternative Base Rate plus the Applicable
Margin or at the Term SOFR Rate plus the Applicable Margin (all as defined in the Revolving Credit
Agreement). The Applicable Margin ranges from 0.25% to 1.00% for Alternative Base Rate Loans and from
1.25% to 2.00% for Term SOFR Loans, in each case depending on the Company’s corporate credit rating. In
addition, the LC Participation Fee ranges from 1.25% to 2.00% depending on the Company’s corporate credit
rating and the Fronting Fee is capped at 0.25%.
The Revolving Credit Agreement contains customary covenants and restrictions on the activities of PBF
Holding and its subsidiaries, including, but not limited to, limitations on incurring additional indebtedness,
liens, negative pledges, guarantees, investments, loans, asset sales, mergers and acquisitions, prepayment of
other debt, distributions, dividends and the repurchase of capital stock, transactions with affiliates and the
ability of PBF Holding to change the nature of its business or its fiscal year; all as defined in the Revolving
Credit Agreement.
In addition, the Revolving Credit Agreement has a financial covenant which requires that if at any time Excess
Availability, as defined in the Revolving Credit Agreement, is less than the greater of (i) 10% of the lesser of
the then existing Borrowing Base and the then aggregate Revolving Commitments of the Lenders (the
“Financial Covenant Testing Amount”), and (ii) $100.0 million, and until such time as Excess Availability is
greater than the Financial Covenant Testing Amount and $100.0 million for a period of 12 or more consecutive
days, PBF Holding will not permit the Consolidated Fixed Charge Coverage Ratio, as defined in the Revolving
Credit Agreement and determined as of the last day of the most recently completed quarter, to be less than 1 to
1.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 31
PBF Holding’s obligations under the Revolving Credit Facility are (a) guaranteed by each of its domestic
operating subsidiaries that are not Excluded Subsidiaries (as defined in the Revolving Credit Agreement) and
(b) secured by a lien on (i) PBF LLC’s equity interest in PBF Holding and (ii) certain assets of PBF Holding
and the subsidiary guarantors, including all deposit accounts (other than zero balance accounts, cash collateral
accounts, trust accounts and/or payroll accounts, all of which are excluded from the definition of collateral), all
accounts receivable, all hydrocarbon inventory (other than certain inventory owned by third parties under
permittable inventory intermediation or similar agreements, as applicable) and to the extent evidencing,
governing, securing or otherwise related to the foregoing, all general intangibles, chattel paper, instruments,
documents, letter of credit rights and supporting obligations; and all products and proceeds of the foregoing.
The Revolving Credit Agreement also allows the Company to sell certain Eligible Receivables (as defined in the
Revolving Credit Agreement) derived from the sale of refined product over truck racks. Under its
$300.0 million uncommitted receivables purchase facility (the “Receivables Facility”), the Company sells such
receivables to a bank subject to bank approval and certain conditions. The sales of receivables under the
Receivables Facility are absolute and irrevocable but subject to certain repurchase obligations under certain
circumstances.
There were $200.0 million outstanding borrowings under the Revolving Credit Facility as of December 31,
2024. There were no outstanding borrowings as of December 31, 2023. Issued letters of credit were $128.3
million and $55.0 million as of December 31, 2024 and 2023, respectively.
Debt Maturities
Debt maturing in the next five years and thereafter is as follows (in millions):
Year Ending December 31,
(in millions)
2025
$
—
2026
—
2027
—
2028
1,001.6
2029
—
Thereafter
500.0
Total debt outstanding
$
1,501.6
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 32
10. RELATED PARTY TRANSACTIONS
Investments in PBF LLC
Pursuant to the amended and restated limited liability company agreement of PBF LLC, the holders of PBF
LLC Series B Units are entitled to an interest in the amounts received by the investment funds associated with
the initial investors in PBF LLC in excess of their original investment in the form of PBF LLC distributions and
from the shares of PBF Energy Class A common stock issuable to such investment funds (for their own account
and on behalf of the holders of PBF LLC Series B Units) upon an exchange, and the proceeds from the sale of
such shares. Such proceeds received by the investment funds associated with the initial investors in PBF LLC
are distributed to the holders of the PBF LLC Series B Units in accordance with the distribution percentages
specified in the PBF LLC amended and restated limited liability company agreement. There were distributions
of $4.2 million to PBF LLC Series B unitholders for the year ended December 31, 2024. There were no such
distributions to PBF LLC Series B unitholders during the years ended December 31, 2023 and December 31,
2022. Investment funds associated with the initial investors in PBF LLC may be entitled to future Tax
Receivable Agreement payments in which the Series B Unitholders are entitled to a distribution payment
pursuant to the PBF LLC amended and restated limited liability company agreement. In January 2025, the
Company made payments under the Tax Receivable Agreement relating to the 2023 tax year of $130.8 million,
inclusive of interest of $5.4 million and $15.1 million paid to Series B Unit holders. Refer to “Note 18 - Income
Taxes” for a more detailed description of the Tax Receivable Agreement.
Transactions and agreements with SBR
The Company and its subsidiaries have entered into various agreements with SBR, in which it has a 50% equity
investment, but does not control. In connection with the commencement of operations at SBR, the Company has
provided limited financial performance guarantees to certain of SBR’s third-party suppliers for various
commercial transactions, primarily for the purchase of feedstock inventory. Although the Company does not
currently expect to perform under such guarantees, it is entitled to certain indemnification protections from Eni
in the event that it is required to perform.
Commercial Agreements
PBF Holding has entered into commercial agreements with SBR for the purchase and sale of RINs and Low
Carbon Fuel Standard (“LCFS”) credits. The Agreement for the Sale and Purchase of Renewable Identification
Numbers was initiated on June 1, 2023, and the Leadership for Energy Automated Processing Master
Agreement for Purchasing and Selling of LCFS credits was initiated on August 1, 2023. Both agreements had
initial terms of three months. Upon the expiration of the initial terms, both agreements have been, and may
continue to be, automatically renewed for successive three-month periods, unless earlier terminated by the
Company or SBR via written notice at least two months in advance of expiration.
Operating Agreement
The Company entered into an operation and management services and secondment agreement (the “Operating
Agreement”) with SBR in June 2023, pursuant to which the Company provides SBR with the personnel
necessary for SBR to operate so that it may perform its obligations under the commercial agreements. The
Company charges SBR a fixed operating fee under the agreement and SBR reimburses the Company for the use
of employees and the provision of certain infrastructure-related services to the extent applicable to its
operations.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 33
Other Agreements
In addition to the agreements described above, the Company entered into an omnibus agreement with SBR for
the provision of executive management services and support for accounting and finance, legal, human
resources, information technology, environmental, health and safety, and other administrative functions (the
“Omnibus Agreement”). Pursuant to the Omnibus Agreement, the Company charges SBR a fixed administrative
fee and SBR reimburses the Company for the services utilized. Furthermore, the Company entered into a
common asset use and servitude agreement (the “CAUSA”) with SBR, pursuant to which the Company
provides Chalmette Refining and SBR certain services with certain common use assets utilized. The cost of
operations and maintenance for the common use assets is allocated between Chalmette Refining and SBR.
Additionally, from time to time, the Company enters into short-term lease agreements for the use of marine
vessels currently leased by SBR. Since these lease terms are less than one year, they are not recorded on the
Company’s Consolidated Balance Sheet.
Summary of Transactions with SBR
A summary of the Company’s related party transactions with SBR is as follows:
Year Ended December 31,
(in millions)
2024
2023
Transactions under commercial agreements:
Sales
$
39.7 $
9.1
Purchases
(323.5)
(244.4)
Reimbursements under related party agreements:
Operating Agreement
163.7
62.8
Total lease expense under related party agreements
(4.1)
—
For the year ended December 31, 2024, the Company received total fees of $4.1 million and $6.6 million under
the Omnibus Agreement and CAUSA, respectively.
Total sales, consisting of refined product sales, and purchases, primarily related to environmental credit and
hydrocarbon purchases, under the commercial agreements with SBR are included within Revenues and Cost of
products and other, respectively, on the Company’s Consolidated Statements of Operations.
Additionally, the Consolidated Balance Sheets include $18.7 million and $47.8 million of Accounts receivable
and Accrued expenses, respectively, related to transactions with SBR as of December 31, 2024 ($22.1 million
and $28.3 million, respectively, as of December 31, 2023).
SBR Loan
Contributions made to equity method investees at times are in the form of loan agreements. Loans provided to
equity method investees that are made based on the Company's proportionate ownership percentage are
accounted for as “in-substance capital contributions” and are treated as an increase to the investment. Principal
and interest payments received on loans treated as in-substance capital contributions are assessed under the
cumulative earnings approach to determine if the distribution received represents a return on capital or a return
of capital. Return on capital distributions are recorded as an operating cash flow whereas return of capital
distributions are recorded as an investing cash flow.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 34
11. COMMITMENTS AND CONTINGENCIES
Other Commitments
In addition to commitments related to lease obligations accounted for in accordance with ASC 842, Leases and
disclosed in “Note 12 - Leases”, the Company is party to agreements which provide for the treatment of
wastewater and the supply of hydrogen, nitrogen, oxygen, chemical and steam for certain of its refineries. The
Company made purchases of $118.9 million, $121.4 million and $112.2 million under these supply agreements
for the years ended December 31, 2024, 2023 and 2022, respectively.
The fixed and determinable amounts related to obligations under these agreements are as follows (in millions):
Year Ending December 31,
2025
$
101.4
2026
45.7
2027
45.7
2028
41.8
2029
39.8
Thereafter
308.5
Total obligations
$
582.9
Employment Agreements
The Company has entered into various employment agreements with members of executive management and
certain other key personnel that include automatic annual renewals, unless canceled. Under some of the
agreements, certain of the executives would receive a lump sum payment of between 1.50 to 2.99 times their
base salary and continuation of certain employee benefits for the same period upon termination by the Company
“Without Cause”, or by the employee “For Good Reason”, or upon a “Change in Control”, as defined in the
agreements. Upon death or disability, certain of the Company’s executives, or their estates, would receive a
lump sum payment of at least one half of their base salary.
Environmental Matters
The Company’s refineries, pipelines and related operations are subject to extensive and frequently changing
federal, state and local laws and regulations, including, but not limited to, those relating to the discharge of
materials into the environment or that otherwise relate to the protection of the environment (including in
response to the potential impacts of climate change), waste management and the characteristics and the
compositions of fuels. Compliance with existing and anticipated laws and regulations can increase the overall
cost of operating the refineries, including remediation, operating costs, and capital costs to construct, maintain
and upgrade equipment and facilities.
These laws and permits raise potential exposure to future claims and lawsuits involving environmental and
safety matters which could include soil and water contamination, air pollution, personal injury and property
damage allegedly caused by substances which the Company manufactured, handled, used, released, or disposed
of, transported, or that relate to pre-existing conditions for which the Company has assumed responsibility. The
Company believes that its current operations are in compliance with existing environmental and safety
requirements. However, there have been and will continue to be ongoing discussions about environmental and
safety matters between the Company and federal and state authorities, including notices of violations, citations
and other enforcement actions, some of which have resulted or may result in changes to operating procedures
and in capital expenditures. While it is often difficult to quantify future environmental or safety related
expenditures, the Company anticipates that continuing capital investments and changes in operating procedures
will be required for the foreseeable future to comply with existing and new requirements, as well as evolving
interpretations and more strict enforcement of existing laws and regulations.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 35
In connection with the acquisition of the Torrance refinery and related logistics assets, the Company assumed
certain pre-existing environmental liabilities. The estimated costs related to these remediation obligations
totaled $110.6 million as of December 31, 2024 ($114.9 million as of December 31, 2023) and related primarily
to remediation obligations to address existing soil and groundwater contamination and the related monitoring
and clean-up activities. Costs related to these obligations are reassessed periodically or when changes to the
Company’s remediation approach are identified. The current portion of the environmental liability is recorded in
Accrued expenses and the non-current portion is recorded in Other long-term liabilities.
The aggregate environmental liability reflected on the Company’s Consolidated Balance Sheets was $152.1
million and $157.8 million at December 31, 2024 and December 31, 2023, respectively, of which $142.4
million and $141.2 million, respectively, were classified as Other long-term liabilities. These liabilities include
remediation and monitoring costs expected to be incurred over an extended period of time. Estimated liabilities
could increase in the future when the results of ongoing investigations become known, are considered probable
and can be reasonably estimated.
Applicable Federal and State Regulatory Requirements
The Company’s operations and many of the products it manufactures are subject to certain specific
requirements of the Clean Air Act (the “CAA”) and related state and local regulations. The CAA contains
provisions that require capital expenditures for the installation of certain air pollution control devices at the
Company’s refineries. Subsequent rule making authorized by the CAA or similar laws or new agency
interpretations of existing rules, may necessitate additional expenditures in future years.
The Company is required to comply with the RFS. Pursuant to the Energy Policy Act of 2005 and the Energy
Independence and Security Act of 2007, EPA has issued the RFS, implementing mandates to blend renewable
fuels into the petroleum fuels produced and sold in the United States. Under the RFS, the volume of renewable
fuels that obligated refineries must blend into their finished petroleum fuels historically has increased on an
annual basis. In addition, certain states have passed legislation that requires minimum biodiesel blending in
finished distillates. On October 13, 2010, EPA raised the maximum amount of ethanol allowed under federal
law from 10% to 15% for cars and light trucks manufactured since 2007. The maximum amount allowed under
federal law currently remains at 10% ethanol for all other vehicles. Existing laws and regulations could change,
and the minimum volumes of renewable fuels that must be blended with refined petroleum fuels may increase.
Because we do not directly produce renewable fuels, increasing the volume of renewable fuels that must be
blended into our products could displace an increasing volume of our refinery’s product pool, potentially
resulting in lower earnings and profitability. In addition, in order to meet certain of these and future EPA
requirements, we may be required to purchase RINs, which may have fluctuating costs based on market
conditions. Our RINs purchase obligation is dependent on our actual shipment of on-road transportation fuels
domestically and the amount of blending achieved which can cause variability in our profitability. On June 21,
2023, EPA finalized the volumes of renewable fuels that obligated refineries must blend into their final
petroleum fuels for years 2023, 2024, and 2025, and finalized volume requirements and percentage standards
under the RFS program for 2023, 2024, and 2025, as well as making a series of important modifications to
strengthen and expand the RFS program. As a result, the Company could also experience fluctuating
compliance costs in the future if the volumes finalized by EPA differ from what has been proposed.
EPA published a Final Rule to the Clean Water Act Section 316(b) in August 2014 regarding cooling water
intake structures, which includes requirements for petroleum refineries. The purpose of this rule is to prevent
fish from being trapped against cooling water intake screens (impingement) and to prevent fish from being
drawn through cooling water systems (entrainment). Facilities will be required to implement best technology
available as soon as possible, but state agencies have the discretion to establish implementation time lines. The
Company has evaluated, and continues to evaluate, the impact of this regulation, and at this time does not
expect this regulation to materially impact the Company’s financial position, results of operations or cash flows.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 36
The Company is subject to greenhouse gas emission control regulations in the state of California pursuant to AB
32. AB 32 imposes a statewide cap on greenhouse gas emissions, including emissions from transportation fuels,
with the aim of returning the state to 1990 emission levels by 2020. AB 32 is implemented through two market
mechanisms including the LCFS and Cap and Trade. The Company is responsible for the AB 32 obligations
related to the Torrance refinery beginning on July 1, 2016 and the Martinez refinery beginning on February 1,
2020 and must purchase emission credits to comply with these obligations. Additionally, in September 2016,
the state of California enacted Senate Bill 32 (“SB 32”) which further reduces greenhouse gas emissions
(“GHG”) targets to 40 percent below 1990 levels by 2030. In 2022, California enacted Assembly Bill 1279
which requires the state to achieve a GHG reduction target of 85 percent below 1990 levels by 2045 and overall
carbon neutrality by 2045. The California Air Resources Board also amended the LCFS in 2024, which requires
a 30 percent reduction by 2030 and 90 percent reduction by 2045 in the carbon intensity of transportation fuels
(compared to a 2010 baseline).
The Company recovers the majority of these costs from its customers, and does not expect these obligations to
materially impact the Company’s financial position, results of operations, or cash flows. To the degree there are
unfavorable changes to AB 32 or SB 32 regulations, or the Company is unable to recover such compliance costs
from customers, these regulations could have a material adverse effect on our financial position, results of
operations and cash flows.
As of January 1, 2011, the Company is required to comply with EPA’s Control of Hazardous Air Pollutants
From Mobile Sources, or MSAT2, regulations on gasoline that impose reductions in the benzene content of its
produced gasoline. In addition, the RFS mandates the blending of prescribed percentages of renewable fuels
(e.g., ethanol and biofuels) into the Company’s produced gasoline and diesel. These requirements, other
requirements of the CAA and other presently existing or future environmental regulations may cause the
Company to implement capital projects to reduce the amount of credits required to be purchased, make
substantial capital expenditures as well as purchase credits at significant cost, to enable its refineries to produce
products that meet applicable requirements.
The federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”),
also known as “Superfund,” imposes liability, without regard to fault or the legality of the original conduct, on
certain classes of persons who are considered to be responsible for the release of a “hazardous substance” into
the environment. These persons include the current or former owner or operator of the disposal site or sites
where the release occurred and companies that disposed of or arranged for the disposal of the hazardous
substances. Under CERCLA, such persons may be subject to joint and several liability for investigation and the
costs of cleaning up the hazardous substances that have been released into the environment, for damages to
natural resources and for the costs of certain health studies. As discussed more fully above, certain of the
Company’s sites are subject to these laws and the Company may be held liable for investigation and
remediation costs or claims for natural resource damages. It is not uncommon for neighboring landowners and
other third parties to file claims for personal injury and property damage allegedly caused by hazardous
substances or other pollutants released into the environment. Analogous state laws impose similar
responsibilities and liabilities on responsible parties. In the Company’s current normal operations, it has
generated waste, some of which falls within the statutory definition of a “hazardous substance” and some of
which may have been disposed of at sites that may require cleanup under Superfund.
The Company is also currently subject to certain other existing environmental claims and proceedings. The
Company believes that it is unlikely that future costs related to any of these other known contingent liability
exposures would have a material impact on its financial position, results of operations or cash flows.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 37
Contingent Consideration
In connection with the acquisition of the Martinez refinery and related logistics assets, the sale and purchase
agreement dated June 11, 2019 included an earn-out provision based on certain earnings thresholds of the
Martinez refinery. Pursuant to the agreement, the Company was to make payments to Equilon Enterprises LLC
d/b/a Shell Oil Products US, based on future earnings at the Martinez refinery in excess of certain thresholds, as
defined in the agreement, for a period of up to four years following the acquisition closing date (the “Martinez
Contingent Consideration”). The final payment of $18.8 million was paid in full during the second quarter of
2024. The fair value of the Martinez Contingent Consideration was estimated to be $21.6 million as of
December 31, 2023 and was included within Accrued expenses.
Tax Receivable Agreement
PBF Energy entered into the Tax Receivable Agreement that provides for the payment by PBF Energy to such
persons of an amount equal to 85% of the amount of the benefits, if any, that PBF Energy is deemed to realize
as a result of (i) increases in tax basis, as described below, and (ii) certain other tax benefits related to entering
into the Tax Receivable Agreement, including tax benefits attributable to payments under the Tax Receivable
Agreement. For purposes of the Tax Receivable Agreement, the benefits deemed realized by PBF Energy will
be computed by comparing the actual income tax liability of PBF Energy (calculated with certain assumptions)
to the amount of such taxes that PBF Energy would have been required to pay had there been no increase to the
tax basis of the assets of PBF LLC as a result of purchases or exchanges of PBF LLC Series A Units for shares
of PBF Energy Class A common stock and had PBF Energy not entered into the Tax Receivable Agreement.
The term of the Tax Receivable Agreement will continue until all such tax benefits have been utilized or expired
unless: (i) PBF Energy exercises its right to terminate the Tax Receivable Agreement, (ii) PBF Energy breaches
any of its material obligations under the Tax Receivable Agreement or (iii) certain changes of control occur, in
which case all obligations under the Tax Receivable Agreement will generally be accelerated and due as
calculated under certain assumptions.
The payment obligations under the Tax Receivable Agreement are obligations of PBF Energy and not of any of
its subsidiaries. In general, PBF Energy expects to obtain funding for these annual payments from PBF LLC,
primarily through tax distributions, which PBF LLC makes on a pro-rata basis to its owners. Such owners
include PBF Energy, which holds a 99.3% interest in PBF LLC as of both December 31, 2024 and
December 31, 2023. PBF LLC generally obtains funding to pay its tax distributions by causing PBF Holding to
distribute cash to PBF LLC and from distributions it receives from PBFX.
As of December 31, 2024, the Company recognized a liability of $293.6 million related to the Tax Receivable
Agreement obligation of which $125.4 million was recorded as a Current liability and represents the amount
paid in January 2025 related to the 2023 tax year. As of December 31, 2023 PBF Energy recognized a liability
of $336.6 million, of which $43.0 million was recorded as a Current liability and paid in January 2024 related to
the 2022 tax year. These liabilities reflect the estimate of the undiscounted amounts that PBF Energy expects to
pay under the agreement, net of the impact of any deferred tax asset valuation allowance recognized in
accordance with ASC 740. As future taxable income is recognized, increases in PBF Energy’s Tax Receivable
Agreement liability may be necessary in conjunction with the revaluation of deferred tax assets. Refer to “Note
18 - Income Taxes” for more details.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 38
Legal Matters
On November 24, 2022, the Martinez refinery, owned and operated by Martinez Refining Company LLC
(“MRC”), experienced a spent catalyst release that is currently being investigated by the Bay Area Air Quality
Management District (“BAAQMD”), Contra Costa County (“CCC”), the Department of Justice and EPA, and
the California Department of Fish and Game (“DFG”). To date, the BAAQMD has issued 35 notices of
violations (“NOVs”), the CCC has issued two NOVs, and the DFG has made findings relating to the spent
catalyst incident. On July 11, 2023 and October 6, 2023, the Martinez refinery experienced unintentional
releases of petroleum coke dust and received inquiries or notices of investigation from the BAAQMD, the
California Department of Industrial Relations, Division of Occupational Safety and Health (“CalOSHA”), the
CCC, and the EPA. The BAAQMD also issued an NOV relating to the July 11, 2023 coke dust incident and an
NOV relating to the October 6, 2023 coke dust incident. On December 15, 2023, the Martinez refinery
experienced an unexpected flaring incident, and subsequently on December 18, 2023 a brush fire incident, and
has received inquiries or notices of investigation from the BAAQMD, CalOSHA, and the CCC. The BAAQMD
additionally issued an NOV relating to the December 15, 2023 flaring incident and four NOVs relating to the
December 18, 2023 brush fire incident. The DFG, the CCC, and the BAAQMD have referred their findings and/
or NOVs to the CCC District Attorney for the spent catalyst incident and various other incidents. On November
16, 2023, the CCC District Attorney and the BAAQMD announced a joint civil enforcement action against
MRC that will include enforcement of the BAAQMD’s, the CCC’s, and the DFG’s claims from the spent
catalyst incident, as well as additional enforcement claims from various incidents. We are engaged in settlement
discussions with the CCC District Attorney and the BAAQMD but no definitive penalties have been assessed to
date by the various agencies. We presently believe the outcomes will not have a material impact on our financial
position, results of operations, or cash flows.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 39
12. LEASES
Lease Position as of December 31, 2024 and December 31, 2023
The table below presents the lease related assets and liabilities recorded on the Company’s Consolidated
Balance Sheets as of December 31, 2024 and December 31, 2023:
(in millions)
Classification on the Balance Sheet
December 31, 2024
December 31, 2023
Assets
Operating lease assets
Lease right of use assets
$
802.4
$
732.8
Finance lease assets
Lease right of use assets
42.9
56.3
Total lease right of use assets
$
845.3
$
789.1
Liabilities
Current liabilities:
Operating lease liabilities
Current operating lease liabilities
$
187.8
$
131.2
Finance lease liabilities
Accrued expenses
11.2
12.2
Noncurrent liabilities:
Operating lease liabilities
Long-term operating lease liabilities
622.2
608.8
Finance lease liabilities
Long-term financing lease liabilities
35.4
46.1
Total lease liabilities
$
856.6
$
798.3
Lease Costs
The table below presents certain information related to costs for the Company’s leases for the year ended
December 31, 2024 and December 31, 2023:
Lease Costs (in millions)
December 31, 2024
December 31,
2023
Components of total lease costs:
Finance lease costs
Amortization of right of use assets
$
14.0
$
13.9
Interest on lease liabilities
3.6
4.5
Operating lease costs
289.6
219.7
Short-term lease costs
78.7
137.7
Variable lease costs
27.0
13.4
Sub-lease income
(3.0)
—
Total lease costs
$
409.9
$
389.2
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 40
Other Information
The table below presents supplemental cash flow information related to leases for the year ended December 31,
2024 and December 31, 2023 (in millions):
Year Ended December 31,
2024
2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases
$
289.1
$
213.9
Operating cash flows for finance leases
3.6
4.5
Financing cash flows for finance leases
12.2
14.1
Supplemental non-cash quantification of assets acquired or remeasured
under operating and financing leases
288.6
271.6
Lease Term and Discount Rate
The table below presents certain information related to the weighted average remaining lease term and weighted
average discount rate for the Company’s leases as of December 31, 2024:
Weighted average remaining lease term - operating leases
9.0 years
Weighted average remaining lease term - finance leases
3.8 years
Weighted average discount rate - operating leases
13.7 %
Weighted average discount rate - finance leases
7.1 %
Undiscounted Cash Flows
The table below reconciles the fixed component of the undiscounted cash flows for each of the periods
presented to the lease liabilities recorded on the Consolidated Balance Sheets as of December 31, 2024:
Amounts due in the year ended December 31, (in millions)
Finance Leases
Operating Leases
2025
$
14.1
$
278.8
2026
13.7
184.1
2027
13.7
137.0
2028
11.0
107.5
2029
0.7
95.1
Thereafter
—
617.8
Total minimum lease payments
53.2
1,420.3
Less: effect of discounting
6.6
610.3
Present value of future minimum lease payments
46.6
810.0
Less: current obligations under leases
11.2
187.8
Long-term lease obligations
$
35.4
$
622.2
As of December 31, 2024, the Company has entered into certain leases that have not yet commenced. Such
leases include a 2-year lease for an oil tanker, with future lease payments estimated to total approximately
$36.9 million. No other such pending leases, either individually or in the aggregate, are material. There are no
material lease arrangements in which the Company is the lessor.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 41
13. STOCKHOLDERS’ AND MEMBERS’ EQUITY STRUCTURE
Capital Structure
Class A Common Stock
Holders of Class A common stock are entitled to receive dividends when and if declared by the Board of
Directors out of funds legally available therefore, subject to any statutory or contractual restrictions on the
payment of dividends and to any restrictions on the payment of dividends imposed by the terms of any
outstanding preferred stock. Upon the Company’s dissolution or liquidation or the sale of all or substantially all
of the assets, after payment in full of all amounts required to be paid to creditors and to the holders of preferred
stock having liquidation preferences, if any, the holders of shares of Class A common stock will be entitled to
receive pro rata remaining assets available for distribution. Holders of shares of Class A common stock do not
have preemptive, subscription, redemption or conversion rights.
Class B Common Stock
Holders of shares of Class B common stock are entitled, without regard to the number of shares of Class B
common stock held by such holder, to one vote for each PBF LLC Series A Unit beneficially owned by such
holder. Accordingly, the members of PBF LLC other than PBF Energy collectively have a number of votes in
PBF Energy that is equal to the aggregate number of PBF LLC Series A Units that they hold.
Holders of shares of Class A common stock and Class B common stock vote together as a single class on all
matters presented to stockholders for their vote or approval, except as otherwise required by applicable law.
Holders of Class B common stock do not have any right to receive dividends or to receive a distribution upon a
liquidation or winding up of PBF Energy.
Preferred Stock
Authorized preferred stock may be issued in one or more series, with designations, powers and preferences as
shall be designated by the Board of Directors.
PBF LLC Capital Structure
PBF LLC Series A Units
The allocation of profits and losses and distributions to PBF LLC Series A unitholders is governed by the
limited liability company agreement of PBF LLC. These allocations are made on a pro rata basis with PBF LLC
Series C Units. PBF LLC Series A unitholders do not have voting rights.
PBF LLC Series B Units
The PBF LLC Series B Units are intended to be “profit interests” within the meaning of Revenue Procedures
93-27 and 2001-43 of the Internal Revenue Service (“IRS”) and have a stated value of zero at issuance. The
PBF LLC Series B Units are held by certain of the Company’s current and former officers, have no voting
rights and are designed to increase in value only after the Company’s financial sponsors achieve certain levels
of return on their investment in PBF LLC Series A Units. Accordingly, the amounts paid to the holders of PBF
LLC Series B Units, if any, will reduce only the amounts otherwise payable to the PBF LLC Series A Units
held by the Company’s financial sponsors, and will not reduce or otherwise impact any amounts payable to PBF
Energy (the holder of PBF LLC Series C Units), the holders of the Company’s Class A common stock or any
other holder of PBF LLC Series A Units. The maximum number of PBF LLC Series B Units authorized to be
issued is 1,000,000.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 42
PBF LLC Series C Units
The PBF LLC Series C Units rank on a parity with the PBF LLC Series A Units as to distribution rights, voting
rights and rights upon liquidation, winding up or dissolution. PBF LLC Series C Units are held solely by PBF
Energy.
Treasury Stock
On December 12, 2022, the Company’s Board of Directors authorized the repurchase of PBF Energy's Class A
common stock (as amended from time to time, the “Repurchase Program”). As further approved on February
13, 2024, the Repurchase Program currently allows for repurchases of up to $1.75 billion and has an expiration
date of December 2025. During the year ended December 31, 2024, the Company purchased 7,554,269 shares
of PBF Energy’s Class A common stock under the Repurchase Program for $329.1 million, inclusive of
commissions paid, through open market transactions. During the year ended December 31, 2023, the Company
purchased 12,367,073 shares of PBF Energy’s Class A common stock under the Repurchase Program for
$532.5 million, inclusive of commissions paid, through open market transactions.
Treasury stock repurchases can be made from time to time through various methods, including open market
transactions, block trades, accelerated share repurchases, privately negotiated transactions or otherwise, certain
of which could be effected through Rule 10b5-1 plans. The timing and number of shares repurchased depends
on a variety of factors, including price, capital availability, legal requirements and economic and market
conditions. The Company is not obligated to purchase any shares under the Repurchase Program, and
repurchases could be suspended or discontinued at any time without prior notice.
The Company records PBF Energy Class A common stock surrendered to cover income tax withholdings for
certain directors and employees and others pursuant to the vesting of certain awards under the Company’s
equity-based compensation plans as treasury shares.
14. NONCONTROLLING INTERESTS
Noncontrolling Interest in PBF LLC
PBF Energy is the sole managing member of, and has a controlling interest in, PBF LLC. As the sole managing
member of PBF LLC, PBF Energy operates and controls all of the business and affairs of PBF LLC and its
subsidiaries. PBF Energy’s equity interest in PBF LLC was approximately 99.3% as of both December 31, 2024
and 2023.
PBF Energy consolidates the financial results of PBF LLC and its subsidiaries, and records a noncontrolling
interest for the economic interest in PBF Energy held by the members of PBF LLC other than PBF Energy.
Noncontrolling interest on the Consolidated Statements of Operations includes the portion of net income or loss
attributable to the economic interest in PBF Energy held by the members of PBF LLC other than PBF Energy.
Noncontrolling interest on the Consolidated Balance Sheets reflects the portion of net assets of PBF Energy
attributable to the members of PBF LLC other than PBF Energy.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 43
The noncontrolling interest ownership percentages in PBF LLC as of the completion dates of each of the equity
offerings and as of the years ended December 31, 2024, 2023 and 2022 are calculated as follows:
Holders of
PBF LLC Series
A Units
Outstanding
Shares
of PBF Energy
Class A
Common
Stock
Total
December 31, 2022
910,457
129,639,307
130,549,764
0.7 %
99.3 %
100.0 %
December 31, 2023
862,780
120,440,620
121,303,400
0.7 %
99.3 %
100.0 %
December 31, 2024
862,780
115,311,992
116,174,772
0.7 %
99.3 %
100.0 %
Noncontrolling Interest in PBF Holding
In connection with the acquisition of the Chalmette refinery, PBF Holding records noncontrolling interest in
two subsidiaries of Chalmette Refining. PBF Holding, through Chalmette Refining, owns an 80% ownership
interest in both Collins Pipeline Company and T&M Terminal Company.
Changes in Equity and Noncontrolling Interests
The following tables summarize the changes in equity for the controlling and noncontrolling interests of PBF
Energy for the years ended December 31, 2024, 2023 and 2022:
(in millions)
PBF Energy
Inc. Equity
Noncontrolling
Interest in PBF
LLC
Noncontrolling
Interest in PBF
Holding
Total Equity
Balance at January 1, 2024
$
6,488.3
$
129.9
$
13.1
$
6,631.3
Comprehensive income (loss)
(529.5)
(6.0)
(0.4)
(535.9)
Dividends and distributions
(119.9)
(1.6)
—
(121.5)
Effect of change in deferred tax assets and
liabilities and tax receivable agreement obligation
(0.6)
—
—
(0.6)
Stock-based compensation
35.2
—
—
35.2
Transactions in connection with stock-based
compensation plans
24.7
—
—
24.7
Exchanges of PBF Energy Company LLC Series A
Units for PBF Energy Class A common stock
0.6
(0.6)
—
—
Treasury stock purchases
(354.6)
—
—
(354.6)
Balance at December 31, 2024
$
5,544.2
$
121.7
$
12.7
$
5,678.6
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 44
(in millions)
PBF Energy
Inc. Equity
Noncontrolling
Interest in PBF
LLC
Noncontrolling
Interest in PBF
Holding
Total Equity
Balance at January 1, 2023
$
4,929.2
$
114.6
$
12.2
$
5,056.0
Comprehensive income
2,129.7
20.6
0.9
2,151.2
Dividends and distributions
(106.6)
(5.3)
—
(111.9)
Effects of change in deferred tax assets and
liabilities and tax receivable agreement obligation
(4.5)
—
—
(4.5)
Stock-based compensation
35.8
—
—
35.8
Transactions in connection with stock-based
compensation plans
44.5
—
—
44.5
Treasury stock purchases
(539.9)
—
—
(539.9)
Other
0.1
—
—
0.1
Balance at December 31, 2023
$
6,488.3
$
129.9
$
13.1
$
6,631.3
(in millions)
PBF Energy
Inc. Equity
Noncontrolling
Interest in PBF
LLC
Noncontrolling
Interest in PBF
Holding
Noncontrolling
Interest in
PBFX
Total Equity
Balance at January 1, 2022
$
1,926.2
$
95.4
$
12.2
$
499.0
$
2,532.8
Comprehensive income (loss)
2,858.0
27.9
(1.4)
69.5
2,954.0
Dividends and distributions
(24.7)
(8.6)
—
(40.3)
(73.6)
Effects of changes in PBFX
ownership interest on deferred tax
assets and liabilities
(9.7)
—
—
—
(9.7)
PBFX Merger Transaction
216.0
—
—
(519.7)
(303.7)
Stock-based compensation
33.2
—
—
10.2
43.4
Transactions in connection with
stock-based compensation plans
86.5
—
—
(18.7)
67.8
Exchanges of PBF Energy
Company LLC Series A Units for
PBF Energy Class A common
stock
0.1
(0.1)
—
—
—
Treasury stock purchases
(156.4)
—
—
—
(156.4)
Other
—
—
1.4
—
1.4
Balance at December 31, 2022
$
4,929.2
$
114.6
$
12.2
$
—
$
5,056.0
Comprehensive Income (Loss)
Comprehensive income (loss) includes net income (loss) and other comprehensive income (loss) arising from
activity related to the Company’s defined employee benefit plan and unrealized gain (loss) on available-for-sale
securities. The following table summarizes the allocation of total comprehensive income (loss) of PBF Energy
between the controlling and noncontrolling interests for the year ended December 31, 2024:
(in millions)
Attributable to
PBF Energy Inc.
stockholders
Noncontrolling
Interests
Total
Net income (loss)
$
(533.8) $
(6.4) $
(540.2)
Other comprehensive income (loss):
Unrealized loss on available for sale securities
(0.3)
—
(0.3)
Amortization of defined benefit plans unrecognized net
gain
4.6
—
4.6
Total other comprehensive income
4.3
—
4.3
Total comprehensive income (loss)
$
(529.5) $
(6.4) $
(535.9)
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 45
The following table summarizes the allocation of total comprehensive income of PBF Energy between the
controlling and noncontrolling interests for the year ended December 31, 2023:
(in millions)
Attributable to
PBF Energy Inc.
stockholders
Noncontrolling
Interest
Total
Net income
$
2,140.5
$
21.5
$
2,162.0
Other comprehensive income (loss):
Unrealized loss on available for sale securities
(0.4)
—
(0.4)
Amortization of defined benefit plans unrecognized net
loss
(10.4)
—
(10.4)
Total other comprehensive income (loss)
(10.8)
—
(10.8)
Total comprehensive income
$
2,129.7
$
21.5
$
2,151.2
The following table summarizes the allocation of total comprehensive income of PBF Energy between the
controlling and noncontrolling interests for the year ended December 31, 2022:
(in millions)
Attributable to
PBF Energy Inc.
stockholders
Noncontrolling
Interest
Total
Net income
$
2,876.8
$
96.0
$
2,972.8
Other comprehensive income (loss):
Unrealized loss on available for sale securities
(2.5)
—
(2.5)
Amortization of defined benefit plans unrecognized net
loss
(16.3)
—
(16.3)
Total other comprehensive income (loss)
(18.8)
—
(18.8)
Total comprehensive income
$
2,858.0
$
96.0
$
2,954.0
15. STOCK-BASED COMPENSATION
The Company grants awards of PBF Energy Class A common stock under its equity incentive plans which
authorize the granting of various stock and stock-related awards to directors, employees, prospective employees
and non-employees. Awards include non-qualified or incentive stock options, stock appreciation rights, stock
awards (including restricted stock) and phantom unit awards, cash awards and performance awards that vest
over a period determined by the plans.
Stock-based compensation expense included in general and administrative expenses consisted of the following:
Years Ended December 31,
(in millions)
2024
2023
2022
PBF Energy options
$
4.5
$
11.9
$
19.1
PBF Energy restricted shares
21.7
17.9
11.6
PBF Energy performance awards
18.1
21.7
13.4
PBFX phantom units
—
—
10.2
$
44.3
$
51.5
$
54.3
PBF Energy options
PBF Energy grants stock options which represent the right to purchase share of the Company’s common stock
at its fair market value, which is the closing price of PBF Energy’s common stock on the date of grant. Stock
options have a maximum term of ten years from the date they are granted, and vest over a requisite service
period of three years, subject to acceleration in certain circumstances. The Company has not issued stock
options since the year ended December 31, 2022. The Company uses the Black-Scholes option-pricing model to
estimate the fair value of stock options granted, which requires the input of subjective assumptions.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 46
The following table summarizes activity for PBF Energy options for 2024:
Number of
PBF Energy
Class A
Common
Stock Options
Weighted
Average
Exercise Price
Weighted
Average
Remaining
Contractual
Life
(in years)
Stock-based awards, outstanding at January 1, 2024
7,453,454
$
23.98
5.26
Exercised
(1,004,884)
21.69
—
Forfeited
(17,695)
15.37
—
Outstanding at December 31, 2024
6,430,875
$
24.36
4.18
Exercisable and vested at December 31, 2024
6,426,041
$
24.35
4.18
Total expected to vest as of December 31, 2024
4,834
$
28.81
7.44
At December 31, 2024, the total intrinsic value of stock options outstanding and exercisable were $38.8 million
and $38.8 million, respectively. The total intrinsic value of stock options exercised during the years ended
December 31, 2024, 2023 and 2022 was $30.3 million, $66.1 million and $63.1 million, respectively.
Unrecognized compensation expense related to PBF Energy options at December 31, 2024 is de minimis and
will be recognized in 2025.
Restricted Stock Awards
The Company grants restricted stock to employees and non-employee directors. Restricted stock granted to our
employees generally vests over a requisite services period of three years, subject to acceleration in certain
circumstances. Restricted stock recipients who received grants have voting rights; however, dividends are
accrued and will be paid upon vesting. Restricted stock units granted to non-employee directors are considered
to vest immediately at the time of the grant for accounting purposes, as they are non-forfeitable, but are issued
in equal annual installments on each of the first three anniversaries of the grant date. The non-vested shares are
not transferable and are held by our transfer agent. The fair values of restricted stock are equal to the market
price of our common stock on the grant date.
The following table summarizes activity for PBF Energy restricted stock:
Number of
PBF Energy
Restricted Class A
Common Stock
Weighted Average
Grant Date
Fair Value
Nonvested at January 1, 2024
1,052,506
$
41.43
Granted
1,350,576
28.60
Vested
(460,294)
40.01
Forfeited
(18,893)
41.81
Nonvested at December 31, 2024
1,923,895
$
32.60
Unrecognized compensation expense related to PBF Energy Restricted Class A common stock at December 31,
2024 was $38.9 million, which will be recognized from 2025 through 2027.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 47
The following table reflects activity related to our restricted stock:
December 31, 2024
December 31, 2023
December 31, 2022
Weighted-average grant-date fair value per share of
restricted stock granted
$
28.60
$
44.90
$
35.73
Fair value of restricted stock vested (in millions)
$
15.5
$
11.2
$
3.3
Performance Awards
The Company grants performance share awards, which are paid in stock, and performance share unit awards,
which are paid in cash, (collectively, the “performance awards”) to certain key employees. Performance awards
granted to employees prior to November 1, 2020 are based on a three-year performance cycle (the "performance
cycle") with four measurement periods and performance awards granted to employees after November 1, 2020
are based on a three-year performance cycle having a single measurement period. The performance awards will
vest on the last day of the performance cycle, subject to forfeiture or acceleration under certain circumstances
set forth in the award agreement. The number of performance awards that will ultimately vest is based on the
Company’s total shareholder return over the performance cycle. The number of shares ultimately issued, or cash
paid under these awards can range from zero to 200% of target award amounts.
Performance Share Unit Awards
The performance share unit awards are accounted for as equity awards, for which the fair value was determined
on the grant date by application of a Monte Carlo valuation model.
The grant date fair value was calculated using a Monte Carlo valuation model with the following assumptions:
December 31, 2024
December 31, 2023
December 31, 2022
Expected life (in years)
2.82 - 3.04
2.86 - 3.18
3.08
Expected volatility
53.66% - 56.02%
56.68% - 59.98%
65.16%
Dividend yield
2.07% - 3.93%
1.73% - 1.80%
2.18%
Risk-free rate of return
4.17% - 4.35%
4.40% - 4.75%
3.90%
Weighted average grant-date fair value per PSU
$
34.04
$
56.35
$
45.91
The risk-free interest rate for the remaining performance period as of the grant date is based on a linear
interpolation of published yields of traded U.S. Treasury Interest-Only STRIP Bonds. The dividend yield
assumption is based on the annualized most recent quarterly dividend divided by the stock price on the grant
date. The assumption for the expected volatility of the Company’s stock price reflects the average of PBF
Energy’s common stock historical and implied volatility.
The following table summarizes activity for PBF Energy performance share awards:
Number of
PBF Energy
Performance Share
Units (“PSU”)
Weighted Average
Grant Date
Fair Value
Nonvested at January 1, 2024
631,443
$
38.48
Granted
253,223
34.04
Vested
(246,862)
18.73
Forfeited
(25,394)
49.78
Nonvested at December 31, 2024
612,410
$
44.14
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 48
In 2024, 2023 and 2022, PSU’s with a fair value of $14.1 million, $30.9 million and $2.0 million, respectively,
were vested.
As of December 31, 2024, unrecognized compensation cost related to performance share unit awards was $17.3
million, which is expected to be recognized over a weighted average period of 2.30 years.
Performance Unit awards
The performance unit awards are dollar denominated with a target value of $1.00, with actual payout of up
to $2.00 per unit (or 200 percent of target). The performance unit awards are settled in cash based on the payout
amount determined at the end of the performance cycle. The Company accounts for the performance unit
awards as liability awards which the Company recorded at fair market value on the date of grant. Subsequently,
the performance unit awards will be marked-to-market at the end of each fiscal quarter by application of a
Monte Carlo simulation model.
The following table summarizes activity for PBF Energy performance unit awards:
Number of
PBF Energy
Performance Units
Nonvested at January 1, 2024
43,557,161
Granted
14,274,646
Vested
(2,194,890)
Forfeited
(9,632,887)
Nonvested at December 31, 2024
46,004,030
In 2024, 2023 and 2022, Performance Units with a fair value of $19.3 million, $12.1 million and $1.5 million,
respectively, were vested.
As of December 31, 2024, unrecognized compensation cost related to performance unit awards was $14.1
million, which is expected to be recognized over a weighted average period of 2.38 years.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 49
16. EMPLOYEE BENEFIT PLANS
Defined Contribution Plan
The Company’s defined contribution plan covers all employees. Employees are eligible to participate as of the
first day of the month following 30 days of service. Participants can make basic contributions up to 50 percent
of their annual salary subject to IRS limits. The Company matches participants’ contributions at the rate of 200
percent of the first 3 percent of each participant’s total basic contribution based on the participant’s total annual
salary. The Company’s contribution to the qualified defined contribution plans was $40.0 million, $37.5 million
and $33.4 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Defined Benefit and Post-Retirement Medical Plans
The Company sponsors a noncontributory defined benefit pension plan (the “Qualified Plan”) with a policy to
fund pension liabilities in accordance with the limits imposed by the Employee Retirement Income Security Act
of 1974 and Federal income tax laws. In addition, the Company sponsors a supplemental pension plan covering
certain employees, which provides incremental payments that would have been payable from the Company’s
principal pension plan, were it not for limitations imposed by income tax regulations (the “Supplemental Plan”).
The funded status is measured as the difference between plan assets at fair value and the projected benefit
obligation which is to be recognized in the Consolidated Balance Sheets. The plan assets and benefit obligations
are measured as of the Consolidated Balance Sheet date.
The non-union Delaware City employees and all Paulsboro, Toledo, Chalmette, Torrance and Martinez
employees became eligible to participate in the Company’s defined benefit plans as of the respective acquisition
dates. The union Delaware City employees became eligible to participate in the Company’s defined benefit
plans upon commencement of normal operations. The Company did not assume any of the employees’ pension
liability accrued prior to the respective acquisitions.
The Company formed the Post-Retirement Medical Plan on December 31, 2010 to provide health care coverage
continuation from date of retirement to age 65 for qualifying employees associated with the Paulsboro
acquisition. The Company credited the qualifying employees with their prior service under Valero Energy
Corporation which resulted in the recognition of a liability for the projected benefit obligation. The Post-
Retirement Medical Plan includes all corporate and refinery employees.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 50
The changes in the benefit obligation, the changes in fair value of plan assets, and the funded status of the
Company’s Pension and Post-Retirement Medical Plans as of and for the years ended December 31, 2024 and
2023 were as follows:
Pension Plans
Post-Retirement
Medical Plan
(in millions)
2024
2023
2024
2023
Change in benefit obligation:
Benefit obligation at beginning of year
$
429.7
$
357.0
$
19.6
$
13.9
Service cost
53.4
48.1
0.9
0.5
Interest cost
20.3
17.7
0.9
0.7
Plan amendments
—
—
—
6.0
Benefit payments
(15.5)
(18.1)
(2.4)
(1.4)
Actuarial loss (gain)
1.9
25.0
(3.4)
(0.1)
Projected benefit obligation at end of year
$
489.8
$
429.7
$
15.6
$
19.6
Change in plan assets:
Fair value of plan assets at beginning of year
$
349.3
$
274.2
$
—
$
—
Actual return on plan assets
25.9
34.8
—
—
Benefits paid
(15.5)
(18.1)
(2.4)
(1.4)
Employer contributions
35.0
58.4
2.4
1.4
Fair value of plan assets at end of year
$
394.7
$
349.3
$
—
$
—
Reconciliation of funded status:
Fair value of plan assets at end of year
$
394.7
$
349.3
$
—
$
—
Less projected benefit obligation at end of year
489.8
429.7
15.6
19.6
Funded status at end of year
$
(95.1) $
(80.4) $
(15.6) $
(19.6)
The accumulated benefit obligation for the defined benefit plans approximated $460.1 million and $391.1
million at December 31, 2024 and 2023, respectively.
Benefit payments, which reflect expected future services that the Company expects to pay are as follows for the
years ended December 31:
(in millions)
Pension Benefits
Post-Retirement
Medical Plan
2025
$
37.3
$
1.5
2026
31.5
1.6
2027
36.2
1.6
2028
40.1
1.7
2029
44.6
1.6
Years 2030-2034
269.6
7.7
The Company’s funding policy for its defined benefit plans is to contribute amounts sufficient to meet legal
funding requirements, plus any additional amounts that may be appropriate considering the funded status of the
plans, tax consequences, the cash flow generated by the Company and other factors. The Company plans to
contribute approximately $31.6 million to the Company’s Pension Plans during 2025.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 51
The components of net periodic benefit cost were as follows for the years ended December 31, 2024, 2023 and
2022:
Pension Benefits
Post-Retirement
Medical Plan
(in millions)
2024
2023
2022
2024
2023
2022
Components of net periodic
benefit cost:
Service cost
$
53.4
$
48.1
$
55.6
$
0.9
$
0.5
$
0.8
Interest cost
20.3
17.7
7.9
0.9
0.7
0.3
Expected return on plan
assets
(24.4)
(19.2)
(17.5)
—
—
—
Amortization of prior service
cost and actuarial loss
0.3
—
0.1
0.5
0.1
0.4
Net periodic benefit cost
$
49.6
$
46.6
$
46.1
$
2.3
$
1.3
$
1.5
Lump sum payments made by the Supplemental Plan to employees retiring in 2024, 2023 and 2022 did not
exceed the Plan’s total service and interest costs expected for those years.
The pre-tax amounts recognized in other comprehensive loss (income) for the years ended December 31, 2024,
2023 and 2022 were as follows:
Pension Benefits
Post-Retirement
Medical Plan
(in millions)
2024
2023
2022
2024
2023
2022
Prior service costs
$
—
$
—
$
—
$
—
$
6.1
$
—
Net actuarial loss (gain)
0.4
9.5
27.6
(3.3)
(0.2)
(4.0)
Amortization of losses and prior
service cost
(0.3)
(0.1)
(0.1)
(0.5)
(0.1)
(0.4)
Total changes in other
comprehensive (income) loss
$
0.1
$
9.4
$
27.5
$
(3.8) $
5.8
$
(4.4)
The pre-tax amounts in accumulated other comprehensive (loss) income as of December 31, 2024 and 2023 that
have not yet been recognized as components of net periodic costs were as follows:
Pension Benefits
Post-Retirement
Medical Plan
(in millions)
2024
2023
2024
2023
Prior service costs
$
(0.3) $
(0.4) $
(7.6) $
(8.7)
Net actuarial (loss) gain
(24.6)
(24.4)
13.5
10.9
Total
$
(24.9) $
(24.8) $
5.9
$
2.2
The weighted average assumptions used to determine the benefit obligations as of December 31, 2024 and 2023
were as follows:
Qualified Plan
Supplemental Plan
Post-
Retirement Medical Plan
2024
2023
2024
2023
2024
2023
Discount rate - benefit
obligations
5.63 %
4.99 %
5.54 %
4.94 %
5.39 %
4.88 %
Rate of compensation increase
4.55 %
4.27 %
5.00 %
4.50 %
—
—
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 52
The weighted average assumptions used to determine the net periodic benefit costs for the years ended
December 31, 2024, 2023 and 2022 were as follows:
Qualified Plan
Supplemental Plan
Post-
Retirement Medical Plan
2024
2023
2022
2024
2023
2022
2024
2023
2022
Discount rates:
Effective rate for service
cost
5.00%
5.22%
2.80%
4.94%
5.24%
2.73%
5.00%
5.27%
2.80%
Effective rate for interest
cost
4.90%
5.14%
2.33%
4.90%
5.14%
2.24%
4.82%
5.05%
1.91%
Effective rate for interest on
service cost
4.89%
5.14%
2.45%
4.84%
5.12%
2.29%
4.93%
5.21%
2.65%
Cash balance interest credit
rate
3.99%
4.04%
2.06%
3.99%
4.04%
2.06%
N/A
N/A
N/A
Expected long-term rate of
return on plan assets
6.80%
6.75%
5.50%
N/A
N/A
N/A
N/A
N/A
N/A
Rate of compensation
increase
4.55%
4.27%
4.26%
4.50%
4.50%
4.50%
N/A
N/A
N/A
The assumed health care cost trend rates as of December 31, 2024 and 2023 were as follows:
Post-Retirement
Medical Plan
2024
2023
Health care cost trend rate assumed for next year
5.9 %
6.4 %
Rate to which the cost trend rate was assumed to decline (the ultimate trend
rate)
4.0 %
4.0 %
Year that the rate reaches the ultimate trend rate
2049
2046
The table below presents the fair values of the assets of the Company’s Qualified Plan as of December 31, 2024
and 2023 by level of fair value hierarchy. Assets consist of collective trusts and are measured at fair value based
on the closing net asset value (“NAV”) as determined by the fund manager and reported daily. As noted above,
the Company’s post-retirement medical plan is funded on a pay-as-you-go basis and has no assets.
Fair Value Measurements Using
NAV as Practical Expedient
(in millions)
2024
2023
Equities:
Domestic equities
$
121.7
$
75.0
Developed international equities
46.6
46.9
Global low volatility equities
7.9
21.0
Emerging market equities
19.2
24.8
Fixed-income
178.6
159.9
Real Estate
18.7
19.7
Cash and cash equivalents
2.0
2.0
Total
$
394.7
$
349.3
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 53
The Company’s investment strategy for its Qualified Plan is to achieve a reasonable return on assets that
supports the plan’s interest credit rating, subject to a moderate level of portfolio risk that provides liquidity.
Consistent with these financial objectives as of December 31, 2024, the plan’s target allocations for plan assets
are 48% invested in equity securities, 46% fixed income investments and 6% in real estate. Equity securities
include international stocks and a blend of U.S. growth and value stocks of various sizes of capitalization. Fixed
income securities include bonds and notes issued by the U.S. government and its agencies, corporate bonds, and
mortgage-backed securities. The aggregate asset allocation is reviewed on an annual basis.
The overall expected long-term rate of return on plan assets for the Qualified Plan is based on the Company’s
view of long-term expectations and asset mix.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 54
17. REVENUES
Revenue Recognition
In accordance with FASB ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), revenue is
recognized when control of the promised goods or services is transferred to the Company’s customers, in an
amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods
or services.
As described in “Note 19 - Segment Information”, the Company’s business consists of the Refining Segment
and Logistic Segment. The following table provides information relating to the Company’s revenues for each
product or group of similar products for the periods presented.
Year Ended December 31,
(in millions)
2024
2023
2022
Refining Segment:
Gasoline and distillates
$
28,652.0
$
34,002.5
$
41,465.0
Asphalt and blackoils
1,940.1
1,650.1
2,123.8
Feedstocks and other
1,449.1
1,640.6
1,863.0
Chemicals
662.8
650.6
903.8
Lubricants
373.9
344.7
425.0
Total Refining Revenue
$
33,077.9
$
38,288.5
$
46,780.6
Logistics Segment:
Logistics Revenue
386.8
384.1
369.3
Total revenue prior to eliminations
33,464.7
38,672.6
47,149.9
Elimination of intercompany revenue
(349.4)
(347.8)
(319.6)
Total Revenues
$
33,115.3
$
38,324.8
$
46,830.3
The majority of the Company’s revenues are generated from the sale of refined products. These revenues are
largely based on the current spot (market) prices of the products sold, which represent consideration specifically
allocable to the products being sold on a given day, and the Company recognizes those revenues upon delivery
and transfer of title to the products to the Company’s customers. The time at which delivery and transfer of title
occurs is the point when the Company’s control of the products is transferred to the Company’s customers and
when its performance obligation to its customers is fulfilled. Delivery and transfer of title are specifically agreed
to between the Company and customers within the contracts. The Company also has contracts which contain
fixed pricing, tiered pricing, minimum volume features with makeup periods, or other factors that have not
materially been affected by ASC 606.
The Company’s Logistics segment revenues are generated by charging fees for crude oil and refined products
terminaling, storage and pipeline services based on the greater of contractual minimum volume commitments,
as applicable, or the delivery of actual volumes based on contractual rates applied to throughput or storage
volumes. A majority of the Company’s logistics revenues are generated by intercompany transactions and are
eliminated in consolidation.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 55
Deferred Revenue
The Company records deferred revenue when cash payments are received or are due in advance of performance,
including amounts which are refundable. Deferred revenue was $43.8 million and $64.1 million as of
December 31, 2024 and December 31, 2023, respectively. Fluctuations in the deferred revenue balance are
primarily driven by the timing and extent of cash payments received or due in advance of satisfying the
Company’s performance obligations.
The Company’s payment terms vary by type and location of customers and the products offered. The period
between invoicing and when payment is due is not significant (i.e. generally within two months). For certain
products or services and customer types, the Company requires payment before the products or services are
delivered to the customer.
Crude Oil and Refined Product Exchanges and Matching Buy/Sell Transactions
The Company enters into buy/sell arrangements and exchange contracts where it agrees to deliver a specified
quantity and quality of crude oil or refined products at a specified location and date to a particular counterparty
and to receive from the same counterparty the same commodity at a specified location on the same or another
specified date. The exchange receipts and deliveries are non-monetary transactions, with the exception of
specific grade or location differentials settled in cash. The matching buy/sell purchase and sale transactions are
settled in cash. No revenues are recorded for exchange and matching buy/sell transactions as they are accounted
for as exchanges of inventory. The net difference in buy/sell transactions is recorded in Cost of Goods Sold. The
exchange transactions are recognized at the carrying amount of the inventory transferred.
Significant Judgment and Practical Expedients
For performance obligations related to sales of products, the Company has determined that customers are able to
direct the use of, and obtain substantially all of the benefits from, the products at the point in time that the
products are delivered. The Company has determined that the transfer of control upon delivery to the customer’s
requested destination accurately depicts the transfer of goods. Upon the delivery of the products and transfer of
control, the Company generally has the present right to payment and the customers bear the risks and rewards of
ownership of the products. The Company has elected the practical expedient to not disclose the value of
unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii)
contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for
services performed.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 56
18. INCOME TAXES
PBF Energy is required to file federal and applicable state corporate income tax returns and recognizes income
taxes on its pre-tax income, which to-date has consisted primarily of its share of PBF LLC’s pre-tax income (see
“Note 13 - Stockholders’ and Members’ Equity Structure”). PBF LLC is organized as a limited liability
company and PBFX is a partnership, both of which are treated as “flow-through” entities for federal income tax
purposes and therefore are not subject to income taxes apart from the income tax attributable to the two
subsidiaries acquired in connection with the acquisition of Chalmette Refining and PBF Holding’s wholly-
owned Canadian subsidiary, PBF Energy Limited, that are treated as C-Corporations for income tax purposes,
with the tax provision calculated based on the effective tax rate for the periods presented.
Valuation Allowance
The Company assesses the available positive and negative evidence to estimate whether sufficient future taxable
income will be generated to permit use of existing deferred tax assets. Negative evidence evaluated as part of
this assessment includes cumulative losses incurred over a three-year period. Such objective evidence could
limit PBF Energy’s ability to consider other subjective evidence, such as PBF Energy’s projections for future
taxable income as market conditions, commodity prices and demand for refined products normalize.
On the basis of this evaluation, a valuation allowance is recorded to recognize only the portion of deferred tax
assets that are more likely than not to be realized. The amount of the deferred tax assets considered realizable,
however, could be adjusted if estimates of future taxable income during the carryover period are reduced or
increased or if objective negative evidence in the form of cumulative losses is no longer present and additional
weight is given to subjective evidence such as PBF Energy’s projections for future taxable income.
During the year ended December 31, 2022, the Company evaluated all available positive and negative evidence
and determined that the $308.5 million valuation allowance, as of December 31, 2021, associated with deferred
tax assets should be released because the Company believed that it had become more likely than not that the
deferred tax assets would be realized. In the Company' s evaluation of the need for and amount of a valuation
allowance on its deferred tax assets, the Company placed the most weight on objectively verifiable direct
evidence, including its recent and historical operating results and the significant improvement in its operating
profitability. The specific positive factors and evidence considered in the realizability of its deferred tax assets
included the cumulative pre-tax income that the Company generated over the past three-year period. This
resulted in the release of the full valuation allowance in the year ended December 31, 2022.
Inflation Reduction Act
On August 16, 2022, the Inflation Reduction Act (“IRA”) was enacted and signed into law in the United States.
The IRA is a budget reconciliation package that includes significant law changes relating to tax, climate change,
energy, and health care. The tax provisions include, among other items, a corporate alternative minimum tax of
15%, an excise tax of 1% on corporate stock buy-backs, energy-related tax credits and incentives, and additional
IRS funding. Based on the Company’s results over the past three fiscal years, the corporate alternative
minimum tax would be applicable but is currently not expected to have a material impact on the Company’s
Consolidated Financial Statements. The Company does not expect the other tax provisions of the IRA to have a
material impact on its Consolidated Financial Statements.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 57
The income tax provision in the PBF Energy Consolidated Statements of Operations consists of the following:
Year Ended December 31,
(in millions)
2024
2023
2022
Current (benefit) expense:
Federal
$
(10.6)
$
140.9
$
75.8
Foreign
—
(0.3)
0.3
State
21.4
46.2
88.5
Total current
10.8
186.8
164.6
Deferred (benefit) expense:
Federal
(156.6)
387.7
379.9
Foreign
(4.8)
3.1
(0.9)
State
(77.8)
146.2
41.2
Total deferred
(239.2)
537.0
420.2
Total provision for income taxes
$
(228.4)
$
723.8
$
584.8
The difference between PBF Energy’s effective income tax rate and the United States statutory rate is
reconciled below:
Year Ended December 31,
2024
2023
2022
Provision at Federal statutory rate
21.0 %
21.0 %
21.0 %
Increase (decrease) attributable to flow-through of
certain tax adjustments:
State income taxes (net of federal income tax)
5.0 %
5.0 %
4.9 %
Nondeductible/nontaxable items
3.3 %
(0.5) %
(0.4) %
Rate differential from foreign jurisdictions
(0.2) %
— %
— %
Provision to return adjustment
0.2 %
(0.1) %
— %
Adjustment to deferred tax assets and liabilities
for change in tax rates
— %
— %
(0.2) %
Deferred tax asset valuation allowance
— %
— %
(8.9) %
Other
0.7 %
(0.1) %
0.5 %
Effective tax rate
30.0 %
25.3 %
16.9 %
PBF Energy’s effective income tax rate for the years ended December 31, 2024, 2023 and 2022, including the
impact of income (loss) attributable to noncontrolling interests of $(6.4) million, $21.5 million and $96.0
million, respectively, was 29.7%, 25.1% and 16.4%, respectively.
For the year ended December 31, 2024, PBF Energy’s effective tax rate differed from the United States
statutory rate, inclusive of state income taxes, as a result of equity-based compensation activity and permanent
book/tax differences related to the use of blender’s tax credits.
For the year ended December 31, 2023, PBF Energy’s effective tax rate did not materially differ from the
United States statutory rate, inclusive of state income taxes. For the year ended December 31, 2022, PBF
Energy’s effective tax rate differed from the United States statutory rate, inclusive of state income taxes,
primarily due to changes in the deferred tax asset valuation allowance.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 58
For financial reporting purposes, income (loss) before income taxes attributable to PBF Energy Inc.
stockholders includes the following components:
Year Ended December 31,
(in millions)
2024
2023
2022
United States income (loss)
$
(739.8) $
2,852.4
$
3,464.2
Foreign income (loss)
(22.4)
11.9
(2.6)
Total income (loss) before income taxes attributable to PBF Energy
Inc. stockholders
$
(762.2) $
2,864.3
$
3,461.6
A summary of the components of PBF Energy’s deferred tax assets and deferred tax liabilities consists of the
following:
(in millions)
December 31, 2024
December 31, 2023
Deferred tax assets
Purchase interest step-up
$
165.0
$
171.6
Pension, employee benefits and compensation
53.3
96.5
Net operating loss carry forwards
297.5
3.4
Environmental liabilities
39.0
40.4
Lease liabilities
317.4
305.9
Other
50.7
27.0
Total deferred tax assets
922.9
644.8
Deferred tax liabilities
Property, plant and equipment
1,122.0
1,062.2
Inventory
60.3
68.6
Right of use assets
314.5
303.5
Equity method investment in SBR
249.6
278.8
Other
12.5
5.0
Total deferred tax liabilities
1,758.9
1,718.1
Net deferred tax liability
$
(836.0) $
(1,073.3)
As of December 31, 2024, PBF Energy had $1,088.0 million of gross federal and $69.0 million of net state
income tax operating loss carry forwards. The portion of the federal net operating loss carry forward that was
generated in years prior to 2019 was utilized in 2022. The federal net operating loss carry forward was
generated in 2024 and it has an indefinite carryforward period but is limited to 80% of taxable income in each
tax year. The state net operating loss carry forwards expire at various dates from 2028 through 2044 with certain
jurisdictions having indefinite net operating loss carry forward periods.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 59
Income tax years that remain subject to examination by material jurisdictions, where an examination has not
already concluded are all years including and subsequent to:
United States
Federal
2020
New Jersey
2020
Michigan
2020
Delaware
2021
Indiana
2021
Pennsylvania
2021
New York
2021
Louisiana
2021
California
2020
The Company does not have any unrecognized tax benefits.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 60
19. SEGMENT INFORMATION
The Company’s operations are organized into two reportable segments, Refining and Logistics. Operations that
are not included in the Refining or Logistics segments, including the Company’s share of SBR’s results, are
included in Corporate. Intersegment transactions are eliminated in the Consolidated Financial Statements and
are included in the Eliminations column below.
Refining
The Company’s Refining segment includes the operations of its six refineries, including certain related logistics
assets that are not owned by PBFX. The Company’s refineries are located in Delaware City, Delaware,
Paulsboro, New Jersey, Toledo, Ohio, Chalmette, Louisiana, Torrance, California, and Martinez, California.
The refineries produce unbranded transportation fuels, heating oil, petrochemical feedstocks, lubricants, and
other petroleum products in the United States. The Company purchases crude oil, other feedstocks and blending
components from various third-party suppliers. The Company sells products throughout the Northeast, Midwest,
Gulf Coast, and West Coast of the United States, as well as in other regions of the United States, Canada, and
Mexico, and is able to ship products to other international destinations.
Logistics
The Company’s Logistics segment is comprised of PBFX, a partnership, formed to own or lease, operate,
develop and acquire crude oil and refined products terminals, pipelines, storage facilities and similar logistics
assets. PBFX’s assets primarily consist of rail and truck terminals and unloading racks, tank farms and pipelines
that were acquired from or contributed by PBF LLC and are located at, or nearby, the Company’s refineries.
PBFX provides various rail, truck and marine terminaling services, pipeline transportation services and storage
services to PBF Holding and/or its subsidiaries and third-party customers through fee-based commercial
agreements. PBFX currently does not generate significant third-party revenues and intersegment related-party
revenues are eliminated in consolidation. From a PBF Energy perspective, the Company’s chief operating
decision maker evaluates the Logistics segment as a whole without regard to any of PBFX’s individual
operating segments.
The Company evaluates the performance of its segments based primarily on income from operations. Income
from operations includes those revenues and expenses that are directly attributable to management of the
respective segment. The Logistics segment’s revenues include intersegment transactions with the Company’s
Refining segment at prices the Company believes are substantially equivalent to the prices that could have been
negotiated with unaffiliated parties with respect to similar services. Activities of the Company’s business that
are not included in the two operating segments are included in Corporate. Such activities consist primarily of
corporate staff operations and other items that are not specific to the normal operations of the two operating
segments. The Company does not allocate non-operating income and expense items, including income taxes, to
the individual segments. The Refining segment’s operating subsidiaries and PBFX are primarily pass-through
entities with respect to income taxes.
Total assets of each segment consist of property, plant and equipment, inventories, cash and cash equivalents,
accounts receivable and other assets directly associated with the segment’s operations. Corporate assets consist
primarily of the Company’s equity method investment in SBR, non-operating property, plant and equipment
and other assets not directly related to the Company’s refinery and logistics operations.
Disclosures regarding the Company’s reportable segments with reconciliations to consolidated totals for the
years ended December 31, 2024, 2023 and 2022 are presented below.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 61
Year Ended December 31, 2024
(in millions)
Refining
Logistics
Corporate
Eliminations
Total
Revenues
$
33,077.9
$
386.8
$
—
$
(349.4) $
33,115.3
Cost of products and other
30,590.4
8.3
—
(332.0)
30,266.7
Operating expenses
2,487.8
135.8
—
(17.4)
2,606.2
Depreciation and amortization
expense
578.4
36.2
13.2
—
627.8
Other segment expenses, net (1) (2)
0.9
7.3
305.4
—
313.6
Income (loss) from operations (2)
(579.5)
199.1
(318.6)
—
(699.0)
Interest (income) expense, net
(14.1)
(1.9)
88.0
—
72.0
Capital expenditures (3)
994.8
6.5
7.0
—
1,008.3
Year Ended December 31, 2023
Refining
Logistics
Corporate
Eliminations
Total
Revenues
$
38,288.5
$
384.1
$
—
$
(347.8) $
38,324.8
Cost of products and other
33,000.8
—
—
(329.5)
32,671.3
Operating expenses
2,581.3
131.9
—
(18.3)
2,694.9
Depreciation and amortization
expense
523.9
36.1
11.5
—
571.5
Other segment (income) expenses,
net (1) (2)
(1.1)
10.0
(573.3)
—
(564.4)
Income from operations (2)
2,183.6
206.1
561.8
—
2,951.5
Interest (income) expense, net
(4.8)
2.3
66.3
—
63.8
Capital expenditures (3)
1,152.9
11.9
8.8
—
1,173.6
Year Ended December 31, 2022
Refining
Logistics
Corporate
Eliminations
Total
Revenues
$
46,780.6
$
369.3
$
—
$
(319.6) $
46,830.3
Cost of products and other
39,350.7
—
—
(301.6)
39,049.1
Operating expenses
2,495.6
121.4
—
(18.0)
2,599.0
Depreciation and amortization
expense
466.9
36.7
7.5
—
511.1
Other segment expenses, net (1)
0.9
27.6
489.4
—
517.9
Income (loss) from operations
4,466.4
183.7
(496.9)
—
4,153.2
Interest expense, net
10.9
39.5
195.6
—
246.0
Capital expenditures (3)
994.9
7.9
8.1
—
1,010.9
Balance at December 31, 2024
Refining
Logistics
Corporate
Eliminations
Total
Total assets (4)
$
10,945.5
$
781.9
$
1,015.4
$
(39.6) $
12,703.2
Balance at December 31, 2023
Refining
Logistics
Corporate
Eliminations
Total
Total assets (4)
$
12,590.6
$
816.8
$
1,024.1
$
(43.7) $
14,387.8
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 62
(1) Other segment (income) expenses, net include General and administrative expenses (excluding depreciation and
amortization expenses), Change in fair value of contingent consideration, net, Equity loss in investee, Loss (gain) on
formation of SBR equity method investment, and Loss (gain) on sale of assets.
(2) Income (loss) from operations within Corporate for the year ended December 31, 2024, includes a $8.7 million reduction
of the gain associated with the formation of the SBR equity method investment. Income from operations within Corporate
for the year ended December 31, 2023, includes a gain of $925.1 million associated with the formation of the SBR equity
method investment.
(3) For the years ended December 31, 2024, December 31, 2023, and December 31, 2022, the Company’s refining segment
includes $5.6 million, $312.7 million, and $336.2 million, respectively, of capital expenditures related to the Renewable
Diesel Facility.
(4) As of December 31, 2024 and December 31, 2023, Corporate assets include the Company’s Equity method investment in
SBR of $866.8 million and $881.0 million, respectively.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 63
20. NET INCOME PER SHARE OF PBF ENERGY
The Company grants certain equity-based compensation awards to employees and non-employee directors that
are considered to be participating securities. Due to the presence of participating securities, the Company has
calculated net income per share of PBF Energy Class A common stock using the two-class method.
The following table sets forth the computation of basic and diluted net income (loss) per share of PBF Energy
Class A common stock attributable to PBF Energy for the periods presented:
(in millions, except share and per share amounts)
Year Ended December 31,
Basic Earnings Per Share:
2024
2023
2022
Allocation of earnings:
Net income (loss) attributable to PBF Energy Inc.
stockholders
$
(533.8) $
2,140.5
$
2,876.8
Less: Income allocated to participating securities
0.1
—
—
Income (loss) available to PBF Energy Inc. stockholders -
basic
$
(533.9) $
2,140.5
$
2,876.8
Denominator for basic net income (loss) per PBF Energy
Class A common share-weighted average shares
116,248,827
124,953,858
122,598,076
Basic net income (loss) attributable to PBF Energy per
Class A common share
$
(4.59) $
17.13
$
23.47
Diluted Earnings Per Share:
Numerator:
Income (loss) available to PBF Energy Inc. stockholders -
basic
$
(533.9) $
2,140.5
$
2,876.8
Plus: Net income (loss) attributable to noncontrolling
interest (1)
(6.0)
20.5
27.9
Less: Income tax expense (benefit) on net income (loss)
attributable to noncontrolling interest (1)
1.6
(5.3)
(7.2)
Numerator for diluted net income (loss) per Class A
common share - net income (loss) attributable to PBF
Energy Inc. stockholders (1)
$
(538.3) $
2,155.7
$
2,897.5
Denominator (1):
Denominator for basic net income (loss) per PBF Energy
Class A common share-weighted average shares
116,248,827
124,953,858
122,598,076
Effect of dilutive securities:
Conversion of PBF LLC Series A Units
862,780
899,519
917,991
Common stock equivalents (2)
—
4,656,071
3,344,039
Denominator for diluted net income (loss) per PBF Energy
Class A common share-adjusted weighted average shares
117,111,607
130,509,448
126,860,106
Diluted net income (loss) attributable to PBF Energy Inc.
stockholders per Class A common share
$
(4.60) $
16.52
$
22.84
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 64
——————————
(1)
The diluted earnings per share calculation generally assumes the conversion of all outstanding PBF
LLC Series A Units to PBF Energy Class A common stock. The net income attributable to PBF
Energy used in the numerator of the diluted earnings per share calculation is adjusted to reflect the
net income, as well as the corresponding income tax expense (based on a 26.0%, 26.0% and 25.9%
annualized statutory corporate tax rate for the years ended December 31, 2024, 2023 and 2022,
respectively) attributable to the converted units.
(2)
Represents an adjustment to weighted-average diluted shares outstanding to assume the full
exchange of common stock equivalents, including options and warrants for PBF LLC Series A
Units and PSUs and options for shares of PBF Energy Class A common stock as calculated under
the treasury stock method (to the extent the impact of such exchange would not be anti-dilutive).
Common stock equivalents exclude the effects of performance share units and options and warrants
to purchase 4,413,417, 18,431 and 3,877,035 shares of PBF Energy Class A common stock and
PBF LLC Series A units because they are anti-dilutive for the years ended December 31, 2024,
2023 and 2022, respectively. For periods showing a net loss, all common stock equivalents and
unvested restricted stock are considered anti-dilutive.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 65
21. FAIR VALUE MEASUREMENTS
The tables below present information about the Company’s financial assets and liabilities measured and
recorded at fair value on a recurring basis and indicate the fair value hierarchy of the inputs utilized to
determine the fair values as of December 31, 2024 and 2023.
The Company has elected to offset the fair value amounts recognized for multiple derivative contracts executed
with the same counterparty; however, fair value amounts by hierarchy level are presented on a gross basis in the
tables below. The Company may be required to post margin collateral or reclaim cash collateral from derivative
counterparties based on contractual terms. At December 31, 2024 and December 31, 2023, the Company had
the obligation to return cash collateral posted against its derivative obligations of $15.1 million and
$23.7 million, respectively. Cash collateral related to derivative contracts is recorded net in the Consolidated
Balance Sheets. The Company has no derivative contracts that are subject to master netting arrangements that
are reflected gross on the Consolidated Balance Sheets.
As of December 31, 2024
Fair Value Hierarchy
(in millions)
Level 1
Level 2
Level 3
Total
Gross
Fair
Value
Effect of
Counter-
party
Netting
Net
Carrying
Value on
Balance
Sheet
Assets:
Money market funds
$
21.0
$
—
$
—
$
21.0
N/A
$
21.0
Commodity contracts
16.0
—
—
16.0
(14.0)
2.0
Liabilities:
Commodity contracts
14.0
—
—
14.0
(14.0)
—
Renewable energy credit and
emissions obligations
—
465.9
—
465.9
—
465.9
As of December 31, 2023
Fair Value Hierarchy
(in millions)
Level 1
Level 2
Level 3
Total
Gross
Fair
Value
Effect of
Counter-
party
Netting
Net
Carrying
Value on
Balance
Sheet
Assets:
Money market funds
$
141.6
$
—
$
—
$
141.6
N/A
$
141.6
Commodity contracts
80.1
—
—
80.1
(46.9)
33.2
Liabilities:
Commodity contracts
46.9
—
—
46.9
(46.9)
—
Renewable energy credit and
emissions obligations
—
429.8
—
429.8
—
429.8
Contingent consideration obligation
—
—
21.6
21.6
—
21.6
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 66
The valuation methods used to measure financial instruments at fair value are as follows:
•
Money market funds categorized in Level 1 of the fair value hierarchy are measured at fair value based
on quoted market prices and included within Cash and cash equivalents.
•
The commodity contracts categorized in Level 1 of the fair value hierarchy are measured at fair value
based on quoted prices in an active market. The commodity contracts categorized in Level 2 of the fair
value hierarchy are measured at fair value using a market approach based upon future commodity
prices for similar instruments quoted in active markets.
•
Renewable energy credit and emissions obligations primarily represent the Company’s liability for the
purchase of (i) biofuel credits (primarily RINs in the U.S.) needed to satisfy its obligation to blend
biofuels into the products the Company produces and (ii) emission credits under the AB 32 and similar
programs (collectively, the cap-and-trade systems). To the degree the Company is unable to blend
biofuels (such as ethanol and biodiesel) at percentages required under the biofuel programs, it must
purchase biofuel credits to comply with these programs. Under the cap-and-trade systems, it must
purchase emission credits to comply with these systems. The liability for environmental credits is in
part based on the Company’s deficit for such credits as of the balance sheet date, if any, after
considering any credits acquired, and is equal to the product of the credits deficit and the market price
of these credits as of the balance sheet date. To the extent that the Company has a better estimate of the
cost at which it settles its obligation, such as agreements to purchase RINs at prices other than the
current spot price, the Company considers those costs in valuing the remaining obligation. The
environmental credit obligations are categorized in Level 2 of the fair value hierarchy and are
measured at fair value using a market approach based on quoted prices from an independent pricing
service.
•
When applicable, commodity contracts categorized in Level 3 of the fair value hierarchy consist of
commodity price swap contracts that relate to forecasted purchases of crude oil for which quoted
forward market prices are not readily available due to market illiquidity. The forward prices used to
value these swaps are derived using broker quotes, prices from other third-party sources and other
available market based data.
•
The contingent consideration obligation at December 31, 2023 is categorized in Level 3 of the fair
value hierarchy and was estimated using discounted cash flow models based on management’s
estimate of the future cash flows related to the earn-out periods. The Company’s final earn-out
payment of $18.8 million was paid in full during the second quarter of 2024.
Non-qualified pension plan assets are measured at fair value using a market approach based on published net
asset values of mutual funds as a practical expedient. As of December 31, 2024 and 2023, $19.4 million and
$18.8 million, respectively, were included within Deferred charges and other assets, net for these non-qualified
pension plan assets.
The table below summarizes the changes in fair value measurements categorized in Level 3 of the fair value
hierarchy, which primarily includes the prior year change in estimated future earnings related to the Martinez
Contingent Consideration:
Year Ended December 31,
(in millions)
2024
2023
Balance at beginning of period
$
21.6 $
150.5
Settlements
(18.8)
(88.3)
Unrealized gain included in earnings
(2.8)
(40.6)
Balance at end of period
$
— $
21.6
There were no transfers between levels during the years ended December 31, 2024 or December 31, 2023.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 67
Fair value of debt
The table below summarizes the carrying value and fair value of debt as of December 31, 2024 and 2023.
December 31, 2024
December 31, 2023
(in millions)
Carrying
value
Fair
value
Carrying
value
Fair
value
2028 Senior Notes (a)
$
801.6
$
765.9
$
801.6
$
779.3
2030 Senior Notes (a)
500.0
490.0
500.0
514.8
Revolving Credit Facility (b)
200.0
200.0
—
—
1,501.6
1,455.9
1,301.6
1,294.1
Less - Unamortized deferred financing costs
(41.6)
n/a
(52.5)
n/a
Unamortized discount
(2.7)
n/a
(3.2)
n/a
Long-term debt
$
1,457.3
$
1,455.9
$
1,245.9
$
1,294.1
_________________________
(a) The estimated fair value, categorized as a Level 2 measurement, was calculated based on the present value of
future expected payments utilizing implied current market interest rates based on quoted prices of the
outstanding senior notes.
(b) The estimated fair value approximates carrying value, categorized as a Level 2 measurement, as these
borrowings bear interest based upon short-term floating market interest rates.
Fair Values - Non-recurring
Non-recurring fair value measurements and disclosures relate to the SBR equity method investment discussed in
“Note 6 - Equity investment in SBR”. The fair value of the SBR equity method investment was primarily based
on the cash consideration received from Eni for their 50 percent ownership.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 68
22. DERIVATIVES
The Company uses derivative instruments to mitigate certain exposures to commodity price risk. On July 31,
2023, the Company terminated the Inventory Intermediation Agreement. Prior to its termination, the Inventory
Intermediation Agreement contained purchase obligations for certain volumes of crude oil, intermediates and
refined products. The purchase obligations related to crude oil, intermediates and refined products under this
agreement were derivative instruments designated as fair value hedges in order to hedge the commodity price
volatility of certain refinery inventory. The fair value of these purchase obligation derivatives was based on
market prices of the underlying crude oil, intermediates and refined products. The level of activity for these
derivatives was based on the level of operating inventories.
The Company also enters into economic hedges primarily consisting of commodity derivative contracts that are
not designated as hedges and are used to manage price volatility in certain crude oil and feedstock inventories as
well as crude oil, feedstock, and refined product sales or purchases. The objective in entering into economic
hedges is consistent with the objectives discussed above for fair value hedges. As of December 31, 2024, there
were 13,911,000 barrels of crude oil and 4,704,000 barrels of refined products (23,774,000 and 5,351,000,
respectively, as of December 31, 2023), outstanding under short and long term commodity derivative contracts
not designated as hedges representing the notional value of the contracts.
The Company also uses derivative instruments to mitigate the risk associated with the price of credits needed
to comply with various governmental and regulatory environmental compliance programs. For such contracts
that represent derivatives the Company elects the normal purchase normal sale exception under ASC 815,
Derivatives and Hedging, and therefore does not record them at fair value.
The following tables provide information regarding the fair values of derivative instruments as of December 31,
2024 and December 31, 2023 and the line items in the Consolidated Balance Sheets in which fair values are
reflected.
Description
Balance Sheet
Location
Fair Value
Asset
(in millions)
Derivatives not designated as hedging instruments:
December 31, 2024:
Commodity contracts
Accounts receivable
$
2.0
December 31, 2023:
Commodity contracts
Accounts receivable
$
33.2
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 69
The following table provides information regarding gains or losses recognized in income on derivative
instruments and the line items in the Consolidated Statements of Operations in which such gains and losses are
reflected.
Description
Location of Gain or
(Loss) Recognized in
Income on Derivatives
Gain or (Loss)
Recognized in
Income on
Derivatives
(in millions)
Derivatives designated as hedging instruments:
For the year ended December 31, 2024:
Derivatives included within the inventory intermediation agreement
obligations
Cost of products and other $
—
For the year ended December 31, 2023:
Derivatives included within the inventory intermediation agreement
obligations
Cost of products and other $
21.0
For the year ended December 31, 2022:
Derivatives included within the inventory intermediation agreement
obligations
Cost of products and other $
5.4
Derivatives not designated as hedging instruments:
For the year ended December 31, 2024:
Commodity contracts
Cost of products and other $
12.3
For the year ended December 31, 2023:
Commodity contracts
Cost of products and other $
38.1
For the year ended December 31, 2022:
Commodity contracts
Cost of products and other $
(31.5)
Hedged items designated in fair value hedges:
For the year ended December 31, 2024:
Crude oil, intermediate and refined product inventory
Cost of products and other $
—
For the year ended December 31, 2023:
Crude oil, intermediate and refined product inventory
Cost of products and other $
(21.0)
For the year ended December 31, 2022:
Crude oil, intermediate and refined product inventory
Cost of products and other $
(5.4)
The Company had no ineffectiveness related to the fair value hedges as of December 31, 2024, 2023 or 2022.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 70
23. SUBSEQUENT EVENTS
Dividend Declared
On February 13, 2025, PBF Energy announced a dividend of $0.275 per share on outstanding PBF Energy Class
A common stock. The dividend is payable on March 14, 2025, to PBF Energy Class A common stockholders of
record as of February 27, 2025.
Payments under the Tax Receivable Agreement
In January 2025, the Company made payments of $130.8 million, inclusive of interest of $5.4 million and
$15.1 million paid to Series B Unit holders, under the Tax Receivable Agreement relating to the 2023 tax year.
Martinez Refinery Fire
On February 1, 2025, a fire occurred at the Company’s Martinez refinery during preliminary turnaround
activities, which resulted in the temporary shutdown of refinery operations. The cause of the fire is currently
under investigation. The Company is assessing the extent of the property damage arising from the fire and
potential recoveries from insurance coverage are also being evaluated. At this time, as the cost of repairs, the
length of the shutdown and other potential liabilities, including regulatory penalties, arising from the incident
are unknown, the operational and/or financial impact cannot be reasonably estimated.
PBF ENERGY INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F- 71
ITEM 16. FORM 10-K SUMMARY
Not applicable.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
PBF ENERGY INC.
(Registrant)
By:
/s/ Matthew C. Lucey
(Matthew C. Lucey)
President and Chief Executive Officer
(Principal Executive Officer)
Date: February 13, 2025
POWER OF ATTORNEY
Each of the officers and directors of PBF Energy Inc., whose signature appears below, in so signing, also makes,
constitutes and appoints each of Karen B. Davis, Matthew Lucey and Trecia Canty, and each of them, his true and lawful
attorneys-in-fact, with full power and substitution, for him in any and all capacities, to execute and cause to be filed with the
SEC any and all amendments to this Annual Report on Form 10-K, with exhibits thereto and other documents connected
therewith and to perform any acts necessary to be done in order to file such documents, and hereby ratifies and confirms all
that said attorneys-in-fact or their substitute or substitutes may do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the dates indicated.
Signature
Title
Date
/s/ Thomas J. Nimbley
Executive Chairman, Chairman of the Board
February 13, 2025
(Thomas J. Nimbley)
of Directors
/s/ Matthew C. Lucey
President, Chief Executive Officer,
February 13, 2025
(Matthew C. Lucey)
Director (Principal Executive Officer)
/s/ Karen B. Davis
Senior Vice President, Chief Financial Officer
February 13, 2025
(Karen B. Davis)
(Principal Financial Officer and Principal Accounting
Officer)
/s/ Spencer Abraham
Director
February 13, 2025
(Spencer Abraham)
/s/ Paul Donahue
Director
February 13, 2025
(Paul Donahue)
/s/ Gene Edwards
Director
February 13, 2025
(Gene Edwards)
/s/ Georganne Hodges
Director
February 13, 2025
(Georganne Hodges)
/s/ Kimberly S. Lubel
Director
February 13, 2025
(Kimberly S. Lubel)
/s/ George E. Ogden
Director
February 13, 2025
(George E. Ogden)
/s/ Damian W. Wilmot
Director
February 13, 2025
(Damian W. Wilmot)
/s/ Lawrence Ziemba
Director
February 13, 2025
(Lawrence Ziemba)