PBF Energy 2012 Annual Report Download - page 115

PBF ENERGY INC. AND SUBSIDIARIES
(COMBINED AND CONSOLIDATED WITH PBF ENERGY COMPANY LLC AND SUBSIDIARIES)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT SHARE, UNIT AND BARREL DATA)
3 - ACQUISITIONS (Continued)
Paulsboro Refinery Acquisition (Continued)
In connection with the Paulsboro refinery acquisition, $130,344 of crude oil and feedstocks and $165,093 of
certain light finished products, intermediates, and lube base oils were purchased by Statoil and MSCG on the
Company’s behalf in connection with the Crude Supply Agreement and the Offtake Agreement, respectively. As
of the acquisition date, the Company recorded the inventory subject to these transactions and a corresponding
liability for crude oil, feedstocks, intermediates, and lube base oils and deferred revenue for light finished
products. No gain or loss was recognized on these transactions, nor did they result in the recognition of revenue.
Although these transactions were entered into in contemplation of the acquisition of the Paulsboro refinery, they
have been excluded from the table above as the Company did not consider them to be part of the acquisition
itself.
Delaware City Acquisition
In April 2010, subsidiaries of the Company entered into an asset purchase agreement with subsidiaries of Valero
to acquire refining and pipeline assets of Valero’s Delaware City refinery. The acquired assets included the idled
refinery, which has a crude oil throughput capacity of 190,000 barrels per day, associated terminal and pipeline,
and a power plant complex. The acquisition was completed on June 1, 2010 for $220,000 in cash plus $4,275 in
acquisition-related costs.
The acquisition of the Delaware City refining and pipeline assets was accounted for as an acquisition of assets.
The purchase price was allocated to the assets acquired and liabilities assumed based on their estimated relative
fair value. The refinery and pipeline assets were idle at the time of the acquisition. The results of operations,
which include certain minor terminal operations and substantial capital improvement activities to prepare the
refinery and power plant for restart, have been included in the Company’s consolidated financial statements since
June 1, 2010. The Company commenced restarting the refinery in June 2011 and the refinery became fully
operational in October 2011.
The following summarizes the purchase price allocation:
Allocation
Current assets ..................................... $ 13,015
Assets held for sale ................................. 4,700
Land ............................................ 28,600
Property, plant and equipment ........................ 156,006
Other assets ...................................... 21,954
Total purchase price ............................ $224,275
The financial results of the Delaware City assets and the Paulsboro refinery have been included in the Company’s
consolidated financial statements since June 1, 2010 and December 17, 2010, respectively. As a result, the
consolidated results of operations for the years ended December 31, 2012 and 2011 include the results of both
refineries for the entire period. The revenues and net loss associated with Paulsboro for the year ended
December 31, 2010, and the consolidated pro forma revenue and net loss of the combined entity assuming the
Paulsboro acquisition had occurred on January 1, 2010, are shown in the table below. The pro forma information
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