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PBF Energy Inc. (NYSE: PBF)
Barclays CEO Energy-Power Conference
September 2016
2
Safe Harbor Statements
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, including any lifting by the federal
government of the restrictions on exporting U.S. crude oil; 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 pending acquisitions, the timing for the closing of any such acquisition and our plans for financing any acquisition;
unforeseen liabilities associated with any pending 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.
3
Fourth largest independent refiner with regionally-advantaged asset base
Second most complex refiner in the U.S. with average Nelson Complexity of 12.2
Coastal crude optionality
Strategic relationship with PBF Logistics (NYSE:PBFX) provides lower-cost source of
capital
Long and successful history of executing profitable acquisitions and driving growth
Proven track record of investing in organic, margin-improvement projects
Targeting self-help projects to enhance margin capture and increase commercial
flexibility
Capital discipline – strategic reinvestment to optimize refining base and increase
cash flow
Maintain conservative balance sheet with a continued focus on de-levering
Shareholder friendly capital markets activities to fund growth
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
4
Attractive Asset Diversification and Growth
PBF's core strategy is to operate safely and
responsibly and to grow and diversify
through acquisitions
Fourth largest independent refiner in United
States with five refineries
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
Paulsboro
Toledo
Chalmette
Torrance
PADD
2
PADD
3
PADD
5
Delaware City
PADD
4
PADD
1
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
5
# of Refineries Throughput (kbpd) Nelson Complexity (Avg.) $ EV per Complexity Barrel
IPO 2016
___________________________
1. Pro forma for the Torrance transaction; market data as of 9/1/16
Profitable Growth Since 2012 IPO
We believe that PBF is significantly undervalued
3
5
884
540
11.3
12.2
265
483
(1)
6
Acquired in November 2015 For $322 million
Executing margin improvement projects
associated with optimization of existing assets and
restart of idled units
Progressing with restart of idled naphtha
hydrotreater, reformer and light-ends recovery
plant
Projects allow for production of high-octane,
ultra-low sulfur reformate blendstock and
chemicals from unfinished naphtha
New crude tank project will allow increased
export opportunities, crude flexibility and
provides additional mitigation of RINs expense
Chalmette commenced asphalt production
increasing margin capture
Advancing third-party logistics opportunities
Chalmette Refinery – Optimization Underway
7
Torrance Refinery – First Sixty Days
Acquired in July 2016 for $537.5 million
Targeting $50 million operating cost reductions
Focus on stable and reliable operations
Processes an advantaged mix of low-quality crudes
(~88% heavy/medium) resulting in 103% product
yield or volume expansion
~90% high-value products
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
Logistics execution
Completed drop down of 50% interest in Torrance
Valley Pipeline for $175 million
8
Crude cost advantages exist for complex refineries
like Torrance, Chalmette, Paulsboro and Delaware
City as they have the flexibility to run a wide
variety of crudes
Paulsboro and Delaware City have transportation
advantage vs. incoming pipelines and waterborne
products
Chalmette enhances PBF’s ability to improve
product netbacks in the Atlantic Basin
Torrance further compliments our targeted
approach to run advantaged crude
Continue to optimize crude slates at all of our
refineries
NEW JERSEY
PENNSYLVANIA
Philadelphia
Delaware/Pennsylvania Basin Refining Landscape
Refinery Capacity
Delaware City 190,000
Paulsboro 180,000
Trainer (Delta) 185,000
Philadelphia (PES) 330,000
Marcus Hook (CLOSED) 175,000
Eagle Point (CLOSED) 145,000
Coastal Refinery Complexity Advantage
East Coast Terminals
Paulsboro Refinery
Delaware City Refinery
$9.00
$3.75
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
$10.00
PBF Coastal Crude
Cost Advantage
Lower Clean
Product Yield
Low-value
Products (Sulfur,
Pet Coke, CO2)
PBF Heavy/Sour
COGS Advantage
Illustrative Heavy / Sour COGS Advantage(1)
(1) Comprised of $5/bbl premium for landed cost of light, sweet crude vs. ($4/bbl) discount for medium and
heavy, sour crude to Dated Brent which represents a total crude advantage for refineries that are able to process
medium and heavy, sour barrels
($0.75)
($4.50)
9
Commercial Optimization
Crude sourcing flexibility and optionality
PBF uses its complex crude processing capacity
to source lowest cost input slate
PBF is benefiting from the over-supply of
waterborne crude which is driving increased
competition and favorable pricing
PBF is leveraging its expanded coastal refining
portfolio to capitalize on economies of scale by
sharing larger cargoes between assets
Pursuing highest netback product distribution
channels
The East Coast Terminals acquisition by PBFX
provides additional capability in the greater
Philadelphia market
Entering the gasoline and distillate product
export markets
Importing and distributing ethanol on the East Coast
at the Delaware City rail facilities
Refining Group Crude Slate Breakdown
Source: Company reports, JP Morgan Research
0%
20%
40%
60%
80%
100%
PBF PSX MPC TSO VLO HFC NTI ALJ DK WNR CVRR
Medium / Heavy Light
10
PBFX is a Strategic and Valuable Partner to PBF
PBF indirectly owns 100% of the general partner and
~45% of the limited partner interests of PBF Logistics
LP (NYSE: PBFX), and 100% of the PBFX incentive
distribution rights (“IDRs”)
Stable cash flows supported predominantly by long-
term, take-or-pay Minimum Volume Commitments
No direct commodity exposure
Vehicle allows PBF to drop-down logistics assets and
utilize proceeds to de-lever and improve liquidity
PBF's drop-down EBITDA backlog increased significantly
with addition of logistics-related assets at Chalmette
and Torrance Acquisitions
Third-party transactions, such as the East Coast
Terminals acquisition, add incremental growth to
PBFX by extending the backlog timeline
Provides alternative capital source to grow logistics
asset base
Summary of Executed Drop-Downs*
Announcement
Date
Asset
Projected
Annual Net
Income
($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); and 5/5/15 (p.80), respectively. EBITDA
is a non-GAAP financial measure. See Appendix for additional information.
11
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 existing 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
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
Appendix
13
Disciplined Growth Strategy
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
R
e
fi
n
e
ry
Co
st
,
$
/Com
p
le
x
it
y
-B
a
rr
e
l
Denotes PBF Refinery
14
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 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. 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
15
Non-GAAP Financial Measures
Non-GAAP Measures
PBF Logistics LP Reconciliation of amounts under US GAAP to Forecasted EBITDA (unaudited, in millions)
Reconciliation of fifty percent TVPC acquired interest estimated
Net Income to estimated EBITDA:
Estimated net income $9.4
Add: Depreciation and amortization expense 9.0
Add: Interest expense, net and other financing costs 1.6
Estimated EBITDA $20.0
The Partnership defines EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and
amortization expense. 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 provides useful information to investors in
assessing our financial condition and results of operations. EBITDA 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.