PBF Energy 2013 Annual Report Download - page 5

Sincerely,
Tom O’Malley Tom Nimbley
Executive Chairman Chief Executive Officer
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We believe our efforts to expand our access to North American crude oils and maintaining our
traditional access to water-borne crude oils have positioned our East Coast assets to take advantage of
any opportunities that the market might offer. Our East Coast refineries are advantaged in two
important areas relative to our competition in PADD 1. First, the Delaware City refinery’s 5,000-acre
setting has provided us with the unique opportunity, for an East Coast asset, to build an extensive onsite
rail crude oil unloading facility versus using third party facilities to trans-load and transport these crudes.
This results in an embedded $2.50 to $3.00 per barrel lower cost of supplying these crudes to our East
Coast refineries versus other refiners in the region. Secondly, and importantly, our Delaware City and
Paulsboro refineries remain the only refineries in the region with the units necessary to process heavy
and sour crude oils.
As the markets have adjusted to increased North American crude oil production, we have seen several
favorable price dislocations in the crude oil market which have allowed us to take advantage of wider
differentials and realize lower landed crude costs at our refineries. We believe these favorable price
dislocations for both North American and water-borne crude oil will continue to occur as North
American refineries adjust their inputs to reflect the new realities of crude supply and availability in
North America. We feel that PBF Energy is positioned to move quickly to capitalize on any favorable
pricing opportunities, whether they are North American or water-born barrels.
As we look forward to the year ahead and beyond, we remain focused on increasing shareholder value
through both organic and external growth opportunities. Our board and management remain
committed to enhancing shareholder value and continue to support a regular annual dividend, paid
quarterly, of $1.20 per share.
Following the initial public offering in December 2012, we have been busy in the capital markets. Our
private equity sponsors continued to reduce their holdings in the company through three secondary
offerings, one in June 2013, a second in January 2014 and a third in March 2014. In total, our sponsors
have sold almost 46 million shares since our IPO and reduced their holdings from over 70% to just over
22% of the company. The significance of this is that PBF Energy is no longer a “controlled company”; our
public shareholder base has expanded and our flexibility to pursue our long-term goals has increased.
We also successfully exchanged our $675 million of unregistered notes for registered notes which
provides our bond investors with increased flexibility regarding their investments.
Before concluding, we would like to thank all of PBF’s employees, at both our refineries and our
headquarters, whose dedication and commitment to excellence are the foundations for our success.
Additionally, we thank our Board of Directors for the oversight and leadership that they provide.
Finally, we thank our shareholders. We are well aware of the investment and confidence you have
placed in PBF and we will continue to work diligently to reward that trust.