PARSIPPANY - PBF Energy Inc. (NYSE: PBF) today reported first quarter 2020 loss from operations of $1,366.8 million as compared to income from operations of $364.6 million for the first quarter of 2019.
Excluding special items, first quarter 2020 loss from operations was $134.0 million as compared to loss from operations of $141.4 million for the first quarter of 2019. PBF Energy's financial results reflect the consolidation of PBF Logistics LP (NYSE: PBFX), a master limited partnership of which PBF indirectly owns the general partner and approximately 48% of the limited partner interests as of quarter-end.
The company reported first quarter 2020 net loss of $1,062.5 million and net loss attributable to PBF Energy Inc. of $1,065.9 million or $(8.93) per share. This compares to net income of $241.4 million, and net income attributable to PBF Energy Inc. of $229.2 million or $1.89 per share for the first quarter 2019. Special items included in the first quarter 2020 results, which increased the net loss by a net, after-tax loss of $933.5 million, or $7.74 per share, consisted of a lower-of-cost-or-market ('LCM') inventory adjustment, change in Tax Receivable Agreement liability, debt extinguishment costs related to the redemption of the 7.00% senior notes due 2023 (the '2023 Senior Notes') and change in the fair value of the earn-out provision included in connection with the Martinez acquisition (the 'Contingent Consideration'). Adjusted fully-converted net loss for the first quarter 2020, excluding special items, was $143.2 million, or $(1.19) per share on a fully-exchanged, fully-diluted basis, as described below, compared to adjusted fully-converted net loss of $143.0 million or $(1.18) per share, for the first quarter 2019.
Tom Nimbley, PBF Energy's Chairman and CEO, said, '2020 has presented unexpected and unprecedented challenges and PBF has responded by taking several significant actions to ensure we navigate the current market successfully. Our employees have readily adjusted to new working conditions and continue to provide essential services.' Mr. Nimbley continued, 'We implemented aggressive cost reduction measures and scaled back operations in response to the near-term, generational decline in demand. We took additional steps to increase our capital resources through the sale of hydrogen plants and a successful debt offering, thereby ensuring we have the resources to manage our business through the current and potential future downturns.' Mr. Nimbley concluded, 'As more regions across the country are beginning the process of returning to work, we are already seeing an increase in product demand. We are at a delicate intersection on this path and PBF will continue to run our operations in a safe, reliable and environmentally responsible manner and we look forward to a sustainable return to work.'
Liquidity and Financial Position
As of May 1, 2020, after giving effect to the successful $1 billion notes offering in May, our liquidity was approximately $2 billion based on our estimated $805.0 million of cash, excluding cash held at PBF Logistics LP, and $151.0 million of additional, available borrowing capacity under our asset-backed revolving credit facility. Assuming current commodity prices remain relatively constant, we expect our liquidity to improve as working capital continues to normalize in May and our Revolving Credit Facility borrowing base increases.
On May 7, 2020, PBF announced that its indirect subsidiary, PBF Holding Company LLC successfully priced $1.0 billion of 9.25% senior secured notes due 2025 in a private offering. The offering closed on May 13, 2020.
Strategic Update and Outlook
The recent outbreak of the COVID-19 pandemic and certain developments in the global oil markets are negatively impacting worldwide economic and commercial activity and financial markets, as well as global demand for petroleum and petrochemical products. The COVID-19 pandemic and related governmental responses have also resulted in significant business and operational disruptions, including business closures, supply chain disruptions, travel restrictions, stay-at-home orders and limitations on the availability of workforces and has resulted in significantly lower demand for refined petroleum products.
We are actively responding to the impacts from these matters on our business. In late March and through early April 2020, we started reducing the amount of crude oil processed at our refineries in response to the decreased demand for our products and we temporarily idled various units at certain of our refineries to optimize our production in light of prevailing market conditions.
In March 2020, we announced initial expense reduction efforts that should result in a reduction in our 2020 operating expenses of approximately $125 million. We have subsequently identified additional reductions and currently estimate an aggregate reduction of approximately $140 million in our 2020 operating expenses budget. In addition, we are currently operating our refineries at minimum rates, a throughput reduction of approximately 30% versus our previous expectations. As the market conditions develop and the demand outlook becomes clearer, we will continue to adjust our operations, regionally and in total, in response. We expect near-term throughput to be in the 650,000 to 750,000 barrel per range for our refining system.
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, customer and vendors; risk relating to the securities markets generally; risks associated with the recent acquisition of the Martinez refinery, and related logistics assets; the duration and severity of the COVID-19 pandemic and certain developments in the global oil markets and their impact on the global macroeconomic conditions 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.
PBF Energy Inc. also currently indirectly owns the general partner and approximately 48% of the limited partnership interest of PBF Logistics LP (NYSE: PBFX).
Contact:
Tel: 973.455.7500
PBF ENERGY INC. 
