Business Context and Reporting Period
This Form 8-K was filed by PBF Energy Inc. and PBF Holding Company LLC on September 8, 2017. The report details the entry into material definitive agreements regarding inventory intermediation for the company's Paulsboro and Delaware City refineries.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on the terms of a contractual amendment rather than financial performance metrics.
Material Changes
On September 8, 2017, PBF Holding Company LLC and its subsidiaries amended existing inventory intermediation agreements with J. Aron & Company (a subsidiary of Goldman Sachs Group, Inc.). Key changes include:
- Paulsboro Refinery: The term of the agreement was extended to December 31, 2019, with an option for mutual extension to December 31, 2020. Pricing terms were also amended.
- Delaware City Refinery: The agreement term remains unchanged, ending July 1, 2019, with an option for mutual extension to July 1, 2020.
Outlook, Risks, and Management Commentary
Under the amended agreements, J. Aron continues to purchase and hold title to intermediate and finished products produced at the refineries, storing them in refinery tanks. J. Aron agrees to sell these products back to the company as they are discharged. PBF Holding retains the right to market and sell the products independently to third parties. The filing does not contain specific forward-looking guidance, risk factors, or management commentary beyond the description of the agreement mechanics.
Investor Verification Checklist
- Verify the specific pricing adjustments made to the Paulsboro refinery agreement, as the filing notes changes but does not quantify them.
- Confirm the operational status of the Paulsboro and Delaware City refineries to ensure the intermediation agreements remain active.
- Review the credit terms and counterparty risk associated with J. Aron & Company as the title holder of inventory.
- Check subsequent filings for any exercise of the mutual consent options to extend the agreement terms beyond 2019 or 2020.