PBF Energy 2013 Annual Report Download - page 34

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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, 2013, approximately 296 of our 460 employees at Paulsboro are covered by a collective
bargaining agreement that expires in March of 2015. In addition, 678 of our 1,066 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 failure to do so may increase our costs. Other employees of ours, who are not presently represented by a union,
may become so represented in the future. In addition, our existing labor agreements may not prevent a strike or
work stoppage at any of our facilities in the future, and any work stoppage could negatively affect our results of
operations and financial condition.
Our hedging activities may limit our potential gains, exacerbate potential losses and involve other risks.
We may enter into commodity derivatives contracts to hedge our crude price risk or crack spread risk with
respect to a portion of our expected gasoline and distillate production on a rolling basis. Consistent with that policy
we, or MSCG or Statoil at our request, may hedge some percentage of future crude supply. We may enter into
hedging arrangements with the intent to secure a minimum fixed cash flow stream on the volume of products
hedged during the hedge term and to protect against volatility in commodity prices. Our hedging arrangements
may fail to fully achieve these objectives for a variety of reasons, including our failure to have adequate hedging
arrangements, if any, in effect at any particular time and the failure of our hedging arrangements to produce the
anticipated results. We may not be able to procure adequate hedging arrangements due to a variety of factors.