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Private and Confidential – For Internal Use Only
PBF Energy
March 2017
1
This presentation contains forward-looking statements made by PBF Energy Inc. (“PBF Energy”), the indirect parent of PBF Logistics LP (“PBFX”, or
“Partnership”, and together with PBF Energy, the “Companies”, or “PBF”), and their management teams. Such statements are based on current
expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and
intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and
may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements
are based on information available at the time, and are subject to various risks and uncertainties that could cause the Companies’ actual
performance or results to differ materially from those expressed in such statements. Factors that could impact such differences include, but are not
limited to, changes in general economic conditions; volatility of crude oil and other feedstock prices; fluctuations in the prices of refined products;
the impact of disruptions to crude or feedstock supply to any of our refineries, including disruptions due to problems with third party logistics
infrastructure; effects of litigation and government investigations; the timing and announcement of any potential acquisitions and subsequent
impact of any future acquisitions on our capital structure, financial condition or results of operations; changes or proposed changes in laws or
regulations or differing interpretations or enforcement thereof affecting our business or industry; actions taken or non-performance by third
parties, including suppliers, contractors, operators, transporters and customers; adequacy, availability and cost of capital; work stoppages or other
labor interruptions; operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control; inability to
complete capital expenditures, or construction projects that exceed anticipated or budgeted amounts; ability to consummate potential
acquisitions, the timing for the closing of any such acquisition and our plans for financing any acquisition; unforeseen liabilities associated with any
potential acquisition; inability to successfully integrate acquired refineries or other acquired businesses or operations; effects of existing and future
laws and governmental regulations, including environmental, health and safety regulations; and, various other factors.
Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Companies assume no
responsibility or obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors
affecting forward-looking information after such date.
Safe Harbor Statements
Second most complex independent refiner with regionally-advantaged asset base
Significantly advantaged crude and feedstock optionality provides access to most
economic input slate
Strategic relationship with PBF Logistics (NYSE:PBFX) provides growth partnership
Long and successful history of executing accretive acquisitions and driving growth
Track record of investing in organic, margin-improvement projects
Targeting self-help projects to enhance margin capture and increase commercial
flexibility
Focused internal investment to drive growth and enhance margins
Maintain conservative balance sheet and strong liquidity
Continue to reward shareholders with attractive dividend yield and returns
Refining and Logistics segments provide dual growth platforms
Optimize refining profitability
Diversify logistics footprint through third-party transactions
Attractive
Asset Base
PBF – A Compelling Investment
Proven
Track Record
Disciplined
Allocation
of Capital
Future
Growth Opportunities
3
Attractive Asset Diversification and Growth
PBF's core strategy is to operate safely,
reliably and responsibly and to grow our
business through acquisitions
Diversified asset base with five refineries and
884,000 barrels per day of processing capacity
Increased refining throughput capacity by
over 60% since 2015
Second most complex refining system
with 12.2 Nelson Complexity
Region
Throughput Capacity
(bpd)
Nelson
Complexity
Mid-continent 170,000 9.2
East Coast 370,000 12.2
Gulf Coast 189,000 12.7
West Coast 155,000 14.9
Total 884,000 12.2
Source: JP Morgan Research
0
500
1,000
1,500
2,000
2,500
V
LO
P
S
X
M
P
C
P
B
F
T
S
O
H
F
C
A
LJ
C
V
I
W
N
R
D
K
N
T
I
US Independent Refiners by Capacity
Paulsboro
Toledo
Chalmette
Torrance
PADD
2
PADD
3
PADD
5
Delaware City
PADD
4
PADD
1
4
Implementing System-wide Commercial Optimization
Crude sourcing flexibility and optionality
PBF uses its complex crude processing
capacity to source lowest cost input slate
PBF is benefiting from the global over-
supply of crude which is driving increased
competition and favorable pricing
dislocations
PBF is leveraging its expanded coastal
refining portfolio to capitalize on economies
of scale by sharing larger cargoes between
assets
Pursuing highest netback product distribution
channels
The East Coast Terminals acquisition by
PBFX provides additional capability in the
greater Philadelphia market
Penetrating additional regional markets on
Gulf and West Coasts
Entering the gasoline and distillate product
export markets
Refining Group Crude Slate Breakdown
Source: Company reports, JP Morgan Research
0%
20%
40%
60%
80%
100%
PBF PSX MPC TSO VLO HFC NTI ALJ DK WNR CVRR
Medium / Heavy Light
5
Completed first turnaround under PBF
ownership in February of 2017
Investing in margin improvement projects
associated with optimization of existing assets
Restarting idled naphtha hydrotreater,
reformer and light-ends recovery plant to
allow for production of high-octane, ultra-
low sulfur reformate blendstock and
chemicals from unfinished naphtha
New crude tank project will allow
increased crude flexibility
Increased export opportunities
Projects should be complete Fall 2017
with an expected return of one to two
years
Chalmette increasing margin capture through
asphalt production
Advancing third-party logistics opportunities
Chalmette Refinery – Optimization Underway
6
Torrance Refinery – Focus on Operations
Focus on stable and reliable operations
Working with local partners to ensure reliable
power supply to refinery
Executing first major turnarounds in the second
quarter
Targeting $50 million operating cost reductions over
the next two years
Putting the right team in place to execute key
turnarounds and promote operational excellence
Margin enhancement
Rack throughput grown to approximately 70% of
gasoline yield
Increased rack sales provide higher product
netbacks and RINs offset
Optimizing distillate margin contribution
through rapid, low-cost opportunities
Successfully entering new markets, including
exports
7
East Coast and Mid-Continent Opportunity
Focus on operational excellence and cost
control
Paulsboro is our leader in turnaround
execution and we are sharing that
expertise across our system
Expanding feedstock optionality
Mid-Continent infrastructure build-out
has eliminated bottlenecks
Increasing domestic production has a
cascading impact on waterborne
barrels
Focus on product distribution and regional
opportunities
Potential asphalt tailwind with large
producer leaving the market
Improved chemicals yield and margins
Extending clean product distribution
avenues around refineries
Identifying opportunities for exports
8
PBFX – A Strategic and Valuable Partner
PBF indirectly owns 100% of the general partner
and ~44% of the limited partner interests of PBF
Logistics LP (NYSE: PBFX), and 100% of the PBFX
incentive distribution rights (“IDRs”)
Stable cash flows supported predominantly by
long-term, take-or-pay Minimum Volume
Commitments
No direct commodity exposure
Vehicle allows PBF to drop-down logistics assets
and utilize proceeds to de-lever and improve
liquidity
PBF's drop-down EBITDA backlog increased
significantly with addition of logistics-related
assets acquired with the Chalmette and Torrance
acquisitions
Third-party acquisitions, such as the East Coast
Terminals acquisition, add incremental growth
to PBFX by extending the backlog timeline
Provides alternative capital source to grow
logistics asset base
Summary of Executed Drop-Downs*
Announcement
Date
Asset
Projected
Annual Net
Income
($mm)
Projected
Annual
EBITDA
($mm)
Gross
Sale
Price
($mm)
9/15/2014
Delaware City Heavy
Crude Unloading
Rack
$12 $15 $150
12/2/2014
Toledo Storage
Facility
$9 $15 $150
5/15/2015
Delaware City
Pipeline / Truck Rack
$12 $14 $143
8/11/2016
Torrance Valley
Pipeline Company
LLC (50% interest)
$9 $20 $175
Total $42 $64 $618
*For reconciliation from EBITDA to Net Income please refer to PBF 8-K filings
dated 9/19/14 (p.164); 12/5/14 (p.80); 5/5/15 (p.80) and 9/7/16 (p.201),
respectively. EBITDA is a non-GAAP financial measure. See Appendix for
additional information.
9
PBFX Growing Asset Base is Ideally Situated
PBF Logistics Mid-Continent Assets
Toledo Storage Facility
Toledo LPG Truck Rack
Toledo Truck Terminal
PBF Logistics East Coast Assets
East Coast Terminals
DC Products Pipeline
DC Truck Rack (Products)
DC Truck Rack (LPG)
DC Rail Terminal
DC West Rack
PBF Logistics assets directly support the
operations of the Toledo, Delaware City,
Paulsboro and Torrance refineries
Approximately 255 million barrels of annual
refining capacity
Strategic third-party acquisitions, such as the
East Coast Terminals, allow PBF Logistics to
independently grow its revenue base and
leverage its relationship with PBF Energy
PBFX continues to target logistics assets for
feedstock movement and product distribution
that complement its existing operations and
provide synergies due to proximity to PBF
Energy operations
Developing organic growth opportunities to
enhance asset base and diversify revenue
streams
Drop-downs from PBF Energy, as it grows,
remain a valuable source of future growth
Paulsboro
Toledo
Chalmette
Torrance
PADD
2
PADD
3
PADD
5
Delaware City
PADD
4
PADD
1
PBF Logistics West Coast Assets
Torrance Valley Pipeline
10
Regulatory Outlook
RINs – change is likely – we’ve seen RINs drop more than 50%
Corporate Tax Reform – Potentially lowers our corporate rate
Border Adjustment Tax – doubtful whether it passes in its
current form but could have a major impact on the economy,
oil movements and product flows and regional refining
performance
MARPOL – Marine Diesel Standards 2020 – New marine diesel
standards will highlight the value of our four coking refineries
11
Appendix
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
R
e
fi
n
e
ry
C
o
st
, $/
C
o
m
p
le
xi
ty
-B
ar
re
l
Disciplined Growth Strategy
Denotes PBF Refinery
13
PBF Energy 2017 Initial Guidance
Initial guidance provided constitutes forward-looking information and is based on current PBF Energy operating plans, company assumptions
and company configuration. All figures are subject to change based on market and macroeconomic factors, as well as company strategic
decision-making and overall company performance.
(Figures in millions except per barrel
amounts)
Q1-2017E (Revised)
East Coast Throughput 290,000 – 310,000 bpd
Mid-Continent Throughput 115,000 – 125,000 bpd
Gulf Coast Throughput 145,000 – 155,000 bpd
West Coast Throughput 130,000 – 140,000 bpd
Total Throughput 680,000 – 730,000 bpd
Refining operating expenses $5.25 - $5.50 / bbl
SG&A expenses(1) $140 - $150
D&A(1) $270 - $280
Interest expense, net(1) $155 - $165
Capital expenditures(1) $625 - $650
Turnaround Schedule Period
Delaware City – FCC/Alky units Q1-2 (45-55 days)
Chalmette – Crude unit Q1 (complete)
Torrance – Hydrocracker, hydrogen plant Q2 (45-55 days)
Torrance – Crude and Coker units Q2 (45-55 days)
___________________________
1. Guidance expense figures include consolidated amounts for PBF Logistics LP
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PBFX 2017 Initial Guidance
Initial guidance provided constitutes forward-looking information and is based on current PBF Logistics operating plans using minimum
volume commitments, assumptions and configuration. Revenues, operating expenses, general and administrative expenses, depreciation
and amortization and interest expense figures include amounts related to the portion of the Torrance Valley Pipeline Company that are
currently owned by a subsidiary of PBF Energy Inc. These amounts are consolidated in the PBF Logistics financial statements and the
ownership interest of PBF Energy is reflected in Noncontrolling Interest. All figures are subject to change based on market and
macroeconomic factors, as well as management’s strategic decision-making and overall Partnership performance.
($ in millions) FY 2017
Initial Guidance
Revenues $252.1
Operating expenses $78.4
SG&A $15.7
D&A $16.8
Interest expense, net $33.1
Net Income $108.1
EBITDA to the Partnership $135.2
Maintenance capital expenditures $9.9
Growth/strategic capital(1) $12.1
Units outstanding(2) 42.3 million
All figures are based on estimates using minimum volume commitments
for currently owned assets under existing long-term agreements.
___________________________
1. Excludes capital expenditures related to the Paulsboro Natural Gas Pipeline and the Chalmette Crude Tank
2. Units outstanding at 12/31/2016 represents the fully-diluted number of units issued during the IPO, subsequent transactions and under partnership compensation programs
15
Our management uses EBITDA (earnings before interest, income taxes, depreciation and amortization) as a measure
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.
EBITDA is not a presentation made in accordance with GAAP and our computation of EBITDA may vary from others in
our industry. EBITDA should not be considered as an alternative to operating income (loss) or net income (loss) as
measures of operating performance. In addition, EBITDA is not presented as, and should not be considered, an
alternative to cash flows from operations as a measure of liquidity.
This presentation includes references to EBITDA and EBITDA attributable to PBFX, which is a non-GAAP financial
measure that is reconciled to its most directly comparable GAAP measure in the quarterly and annual reports on
Forms 10-Q and 10-K for PBFX. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX
before net interest expense, income tax expense, depreciation and amortization expense attributable to PBFX, which
excludes the results attributable to noncontrolling interests and acquisitions from affiliate companies under common
control prior to the effective dates of such transactions. With respect to projected MLP-qualifying EBITDA, we are
unable to prepare a quantitative reconciliation to the most directly comparable GAAP measure without unreasonable
effort, as, among other things, certain items that impact these measures, such as the provision for income taxes,
depreciation of fixed assets, amortization of intangibles and financing costs have not yet occurred, are subject to
market conditions and other factors that are out of our control and cannot be accurately predicted.
Non-GAAP Financial Measures
16
Non-GAAP Financial Measures
PBF Logistics LP Reconciliation of amounts under US GAAP to Forecasted EBITDA (unaudited, in millions)
Reconciliation of Net Income to estimated EBITDA:
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense. We
define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense, income tax expense, depreciation and
amortization expense attributable to PBFX, which excludes the results attributable to noncontrolling interests and acquisitions from affiliate companies
under common control prior to the effective dates of such transactions. EBITDA is a non-GAAP supplemental financial measure that management
and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
• our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost
basis or financing methods;
• the ability of our assets to generate sufficient cash flow to make distributions to our unit holders;
• our ability to incur and service debt and fund capital expenditures; and
• the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
The Partnership’s management believes that the presentation of EBITDA and EBITDA attributable to PBFX provides useful information to investors in
assessing our financial condition and results of operations. These measures should not be considered an alternative to net income, operating income,
cash from operations or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA has important
limitations as an analytical tool because it excludes some but not all items that affect net income. Additionally, because EBITDA may be defined
differently by other companies in our industry, our definition of EBITDA may not be comparable to similarly titled measures of other companies,
thereby diminishing its utility. Due to the forward-looking nature of forecasted EBITDA, information to reconcile forecasted EBITDA to forecasted cash
flow from operating activities is not available as management is unable to project working capital changes for future periods at this time.
($ in millions) FY 2017 Initial Guidance
Net Income $108.1
Add: Interest expense, net $33.1
Add: Depreciation and amortization $16.8
EBITDA $158.0
Less: Noncontrolling interest EBITDA $22.8
EBITDA attributable to PBFX $135.2
17