PBF Energy 2012 Annual Report Download - page 32

Our refineries contain many processing units, a number of which have been in operation for many years.
Equipment, even if properly maintained, may require significant capital expenditures and expenses to keep it
operating at optimum efficiency. One or more of the units may require unscheduled downtime for unanticipated
maintenance or repairs that are more frequent than our scheduled turnarounds for such units. Scheduled and
unscheduled maintenance could reduce our revenues during the period of time that the units are not operating.
Our forecasted internal rates of return are also based upon our projections of future market fundamentals,
which are not within our control, including changes in general economic conditions, available alternative supply
and customer demand. Any one or more of these factors could have a significant impact on our business. If we
were unable to make up the delays associated with such factors or to recover the related costs, or if market
conditions change, it could materially and adversely affect our financial position, results of operations or cash
flows.
Acquisitions that we may undertake in the future involve a number of risks, any of which could cause us not
to realize the anticipated benefits.
We may not be successful in acquiring additional assets, and any acquisitions that we do consummate may
not produce the anticipated benefits or may have adverse effects on our business and operating results. We may
selectively consider strategic acquisitions in the future within the refining and mid-stream sector based on
performance through the cycle, advantageous access to crude oil supplies, attractive refined products market
fundamentals and access to distribution and logistics infrastructure. Our ability to do so will be dependent upon a
number of factors, including our ability to identify acceptable acquisition candidates, consummate acquisitions
on acceptable terms, successfully integrate acquired assets and obtain financing to fund acquisitions and to
support our growth and many other factors beyond our control. Risks associated with acquisitions include those
relating to the diversion of management time and attention from our existing business, liability for known or
unknown environmental conditions or other contingent liabilities and greater than anticipated expenditures
required for compliance with environmental, safety or other regulatory standards or for investments to improve
operating results, and the incurrence of additional indebtedness to finance acquisitions or capital expenditures
relating to acquired assets. We may also enter into transition services agreements in the future with sellers of any
additional refineries we acquire. Such services may not be performed timely and effectively, and any significant
disruption in such transition services or unanticipated costs related to such services could adversely affect our
business and results of operations.
Our business may suffer if any of our senior executives or other key employees discontinues employment with
us. Furthermore, a shortage of skilled labor or disruptions in our labor force may make it difficult for us to
maintain labor productivity.
Our future success depends to a large extent on the services of our senior executives and other key employees.
Our business depends on our continuing ability to recruit, train and retain highly qualified employees in all areas of our
operations, including engineering, accounting, business operations, finance and other key back-office and mid-office
personnel. Furthermore, our operations require skilled and experienced employees with proficiency in multiple tasks.
The competition for these employees is intense, and the loss of these executives or employees could harm our business.
If any of these executives or other key personnel resigns or becomes unable to continue in his or her present role and is
not adequately replaced, our business operations could be materially adversely affected.
A portion of our workforce is unionized, and we may face labor disruptions that would interfere with our
operations.
As of December 31, 2012, approximately 295 of our 457 employees at Paulsboro are covered by a collective
bargaining agreement that expires in March of 2015. In addition, 652 of our 994 employees at Delaware City and
Toledo are covered by a collective bargaining agreement that expires in February of 2015. We may not be able to
renegotiate our collective bargaining agreements on satisfactory terms or at all when such agreements expire. A
24