PARSIPPANY - PBF Energy Inc. (NYSE: PBF) today reported third quarter 2021 income from operations of $100.9 million as compared to loss from operations of $342.7 million for the third quarter of 2020.
Excluding special items, third quarter 2021 income from operations was $101.0 million as compared to a loss from operations of $374.2 million for the third quarter of 2020. PBF Energy's financial results reflect the consolidation of PBF Logistics LP (NYSE: PBFX), a master limited partnership of which PBF Energy indirectly owns the general partner and approximately 48% of the limited partner interests as of quarter-end.
The company reported third quarter 2021 net income of $78.7 million and net income attributable to PBF Energy Inc. of $59.1 million or $0.49 per share. This compares to net loss of $397.8 million, and net loss attributable to PBF Energy Inc. of $417.2 million or $(3.49) per share for the third quarter 2020. Non-cash special items included in the third quarter 2021 results, which increased net income by a net, after-tax benefit of $45.6 million, or $0.37 per share, consisted of a gain on extinguishment of debt related to the repurchase of a portion of the outstanding unsecured notes, a net tax benefit on remeasurement of deferred tax assets, and change in fair value of the contingent consideration associated with earn-out provisions related to both the Martinez Acquisition and PBFX CPI Operations LLC acquisition. Adjusted fully-converted net income for the third quarter 2021, excluding special items, was $14.0 million, or $0.12 per share on a fully-exchanged, fully-diluted basis, as described below, compared to adjusted fully-converted net loss of $346.6 million or $(2.87) per share, for the third quarter 2020.
Tom Nimbley, PBF Energy's Chairman and CEO, said, 'PBF's third quarter results reflect both the improving demand environment, as well as the continuing challenges facing our industry. During the quarter we successfully executed a significant turnaround at Torrance, conducted unplanned maintenance at Toledo and managed to navigate the turmoil delivered by Hurricane Ida on the Gulf Coast. Our Chalmette refining team safely brought the refinery down in advance of the storm. As a result, we experienced very little damage and were able to quickly resume operations after restoring power to the plant. We are very proud of the way our Chalmette team performed, even as many employees were dealing with their own storm-related hardships.'
Mr. Nimbley remarked, 'Demand has continued its gradual improvement and is at or above pre-pandemic levels for certain products. With improving demand and the call for more energy globally, we expect incremental crude supply to enter the market and support wider differentials. Despite the improving fundamental backdrop, we continue to be battered by the persistent waffling of the Environmental Protection Agency and never-ending delays in addressing the broken RFS program. These delays are causing economic harm to independent refiners, jeopardizing jobs, creating uncertainty in the market and are penalizing consumers at the pump by supporting high gasoline prices.'
Mr. Nimbley concluded, 'Despite these recent challenges, we are confident that we have the operations, team and resources to overcome the current hurdles. We exited the third quarter with reduced debt and ample liquidity, including approximately $1.5 billion in cash, that we believe will support our business as market conditions improve.'
Liquidity and Financial Position
As of September 30, 2021, our operational liquidity was more than $2.6 billion based on approximately $1.4 billion of cash and in excess of $1.2 billion of borrowing availability under our asset-based lending facility. In addition, PBF Logistics LP liquidity included $28.6 million in cash and approximately $371.0 million of availability under its revolving credit facility.
In the second half of the year, the company repurchased a combined total principal amount of approximately $229.0 million of its 2028 6.00% Senior Notes and 2025 7.25% Senior Notes for an aggregate cash amount of approximately $146.8 million. Combined with the $75.0 million of debt repayments made by PBF Logistics LP, consolidated debt for PBF has been reduced by approximately $304.0 million.
Strategic Update and Outlook
In addition to focusing on the safety and reliability of our core refining operations, we continue to progress the previously announced potential project for a renewable fuels production facility intended to be co-located at the Chalmette refinery. The project is expected to use certain idled assets, including an idle hydrocracker, along with a newly-constructed pre-treatment unit to establish a 20,000 barrel per day renewable diesel production facility. On August 5, 2021, it was announced that PBF selected Honeywell UOP single-stage EcofiningTM technology for use in the potential project. We are currently in advanced discussions with additional potential strategic and financial partners.
Consistent with our previous guidance, and the improving market outlook, our full-year capital expenditures are expected to be approximately $400 to $450 million. Should market conditions change from our current expectations, we expect that we will review our capital requirements and adjust as needed.
With demand for our products continuing to gradually improve, we expect to remain responsive to market conditions and for the fourth quarter, we expect total throughput regionally as follows: East Coast to average 250,000 to 270,000 barrels per day ('bpd'); Mid-Continent to average 150,000 to 160,000 bpd; Gulf Coast to average 170,000 to 180,000 bpd and West Coast to average 310,000 to 330,000 bpd.
Adjusted Fully-Converted Results
Adjusted fully-converted results assume the exchange of all PBF Energy Company LLC Series A Units and dilutive securities into shares of PBF Energy Inc. Class A common stock on a one-for-one basis, resulting in the elimination of the noncontrolling interest and a corresponding adjustment to the company's tax provision.
Forward-Looking Statements
Statements in this press release relating to future plans, results, performance, expectations, achievements and the like are considered 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which may be beyond the company's control, that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors and uncertainties that may cause actual results to differ include but are not limited to the risks disclosed in the company's filings with the SEC, as well as the risks disclosed in PBF Logistics LP's SEC filings and any impact PBF Logistics LP may have on the company's credit rating, cost of funds, employees, customers and vendors; risk relating to the securities markets generally; risks associated with the East Coast refining reconfiguration and the acquisition of the Martinez refinery, and related logistics assets; risks associated with our obligation to buy Renewable Identification Numbers and related market risks related to the price volatility thereof; our ability to make, and realize the benefits from, acquisitions or investments, including in renewable diesel productions; the effect of the COVID-19 pandemic and related governmental and consumer responses; our expectations regarding capital spending and the impact of market conditions on demand for the balance of 2021 and the impact of adverse market conditions affecting the company, unanticipated developments, regulatory approvals, changes in laws and other events that negatively impact the company. All forward-looking statements speak only as of the date hereof. The company undertakes no obligation to revise or update any forward-looking statements except as may be required by applicable law.
About PBF Energy Inc.
PBF Energy Inc. (NYSE:PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.
Contact:
Tel: 1 (973) 254-4414
Email: ir@pbfenergy.com
PBF ENERGY INC. 
