PBF Energy Inc. announced that its subsidiary has signed a definitive agreement to purchase the 155,000 barrel-per-day Torrance refinery, and related logistics assets, from ExxonMobil. With the acquisition, PBF will increase its total throughput capacity to approximately 900,000 barrels per day. The purchase price for the assets is $537.5 million, plus working capital to be valued at closing. PBF expects to finance the transaction with a combination of cash, debt and equity. The transaction is expected to be immediately accretive to earnings. The Torrance transaction is expected to close in the second quarter of 2016, subject to customary closing conditions and regulatory approvals. The refinery will be restored to full working order prior to close.

The Torrance refinery, located on 750 acres in Torrance, California, is a high-conversion 155,000 barrel per day, delayed-coking refinery with a Nelson Complexity Index of 14.9. The facility is strategically positioned in Southern California with advantaged logistics connectivity that offers flexible raw material sourcing and product distribution opportunities primarily to the California, Las Vegas and Phoenix area markets.

“The Torrance Refinery acquisition is another significant step in the continued growth of PBF Energy and PBF Logistics. Coupled with the previously announced Chalmette acquisition, we will have increased our refining capacity by over 60 percent and added meaningful Gulf and West Coast assets to our refining system. We are excited to be adding a refinery with Torrance’s complexity and we look forward to entering the West Coast market. Upon completion of these two pending transactions, we will have operations spanning four PADDs and have diversified and increased our commercial footprint and flexibility,” said Tom Nimbley, PBF’s Chief Executive Officer. “We are committed to the safe and environmentally responsible operations of the facility and look forward to welcoming Torrance’s well-trained and professional workforce to the PBF family.”

PBF’s Executive Chairman Tom O’Malley commented, “Southern California is a very attractive market and we are excited to become a supplier in the region. PBF’s management team has extensive experience operating in California and we are entering at a very attractive purchase price for the Torrance refinery.”

In addition to refining assets, the transaction includes a number of high-quality logistics assets including a sophisticated network of crude and products pipelines, product distribution terminals and refinery crude and product storage facilities. The most significant of the logistics assets is a 171-mile crude gathering and transportation system which delivers San Joaquin Valley crude oil directly from the field to the refinery. Additionally, included in the transaction are several pipelines which provide access to sources of crude oil including the Ports of Long Beach and Los Angeles, as well as clean product outlets with a direct pipeline supplying jet fuel to the Los Angeles airport. The refinery also has crude and product storage facilities with approximately 8.6 million barrels of shell capacity.

Management Update

In light of PBF’s expanding geographic footprint and organizational needs, the company has decided to make certain management changes to support in growing business and position the company for success in all areas of its operations. The company will set up a wholly-owned subsidiary, PBF Energy Western Region LLC, to hold all of the Torrance related assets. Jeffrey Dill will transition to the role of President, PBF Energy Western Region LLC. Mr. Dill has been General Counsel of PBF since its inception in 2008 and his prior experience includes almost 10 years working in the refining and logistics industry in Southern California. In his new role, Mr. Dill will be responsible for managing PBF’s relationships with elected officials, community leaders and regulatory agencies in California.

Paul Davis and Tom O’Connor, formerly co-heads of Commercial, will now be responsible for the company’s commercial operations on a regional basis. Mr. Davis will be relocating to Southern California, where he started his career and worked with the same logistics assets being acquired. He will head up a West Coast-based commercial team that will be responsible for commercial activities in the region. Mr. O’Connor will oversee all other commercial operations, including those for the Chalmette Refinery, along with commercial risk activities.

Trecia Canty, previously Vice President, Senior Deputy General Counsel, has been promoted to Senior Vice President, General Counsel and Secretary. In her new role, Ms. Canty will be responsible for the legal department. Ms. Canty joined PBF in 2012 from Southwestern Energy and has supported a broad range of activities including transactions across the finance, commercial and refining functions at PBF.

About PBF Energy Inc.

PBF Energy Inc. (NYSE:PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey and Toledo, Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors.

About ExxonMobil

ExxonMobil (NYSE:XOM), the largest publicly traded international oil and gas company, uses technology and innovation to help meet the world’s growing energy needs. ExxonMobil holds an industry-leading inventory of resources and is one of the world’s largest integrated refiners, marketers of petroleum products and chemical manufacturers.