PBF ENERGY INC. AND  SUBSIDIARIES

EARNINGS RELEASE TABLES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except share and per share data)

Three Months Ended

March 31,

2018

2017

Revenues

$

5,802,776

$

4,754,473

Cost and expenses (Note 1):

Cost of products and other

5,132,102

4,196,767

Operating expenses (excluding depreciation and amortization expense as reflected
below)

426,135

451,266

Depreciation and amortization expense

83,273

59,170

Cost of sales

5,641,510

4,707,203

General and administrative expenses (excluding depreciation and amortization expense as reflected below)

62,813

43,830

Depreciation and amortization expense

2,714

1,762

Loss on sale of assets

79

883

Total cost and expenses

5,707,116

4,753,678

Income from operations

95,660

795

Other income (expense):

Change in fair value of catalyst leases

13

(2,588)

Interest expense, net

(43,198)

(37,183)

Other non-service components of net periodic benefit cost (Note 17)

278

(101)

Income (loss) before income taxes

52,753

(39,077)

Income tax expense (benefit)

10,942

(19,047)

Net income (loss)

41,811

(20,030)

Less: net income attributable to noncontrolling interests

11,445

11,047

Net income (loss) attributable to PBF Energy Inc. stockholders

$

30,366

$

(31,077)

Net income (loss) available to Class A common stock per share:

Basic

$

0.27

$

(0.29)

Diluted

$

0.27

$

(0.29)

Weighted-average shares outstanding-basic

110,820,379

108,760,374

Weighted-average shares outstanding-diluted

115,193,491

108,760,374

Dividends per common share

$

0.30

$

0.30

Adjusted fully-converted net income (loss) and adjusted fully-converted net income (loss) per fully exchanged, fully diluted shares outstanding (Note 2):

Adjusted fully-converted net income (loss)

$

31,113

$

(32,473)

Adjusted fully-converted net income (loss) per fully exchanged, fully diluted share

$

0.27

$

(0.29)

Adjusted fully-converted shares outstanding - diluted

115,193,491

112,603,580

See Footnotes to Earnings Release Tables

PBF ENERGY INC. AND SUBSIDIARIES

RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP

(Unaudited, in thousands, except share and per share data)

 RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED FULLY-CONVERTED

Three Months Ended

 NET INCOME (LOSS) AND ADJUSTED FULLY-CONVERTED NET INCOME (LOSS)

March 31,

 EXCLUDING SPECIAL ITEMS (Note 2)

2018

2017

Net income (loss) attributable to PBF Energy Inc. stockholders

$

30,366

$

(31,077)

     Less:     Income allocated to participating securities

201

271

Income (loss) available to PBF Energy Inc. stockholders - basic

30,165

(31,348)

     Add:      Net income (loss) attributable to noncontrolling interest (Note 3)

1,288

(1,856)

     Less:     Income tax (expense) benefit (Note 4)

(340)

731

Adjusted fully-converted net income (loss)

$

31,113

$

(32,473)

     Special Items (Note 5):

     Add:     Non-cash LCM inventory adjustment

(87,653)

16,039

     Less:    Recomputed income taxes on special items

23,149

(6,313)

Adjusted fully-converted net loss excluding special items

$

(33,391)

$

(22,747)

Weighted-average shares outstanding of PBF Energy Inc.

110,820,379

108,760,374

Conversion of PBF LLC Series A Units (Note 6)

3,535,140

3,843,206

Common stock equivalents (Note 7)

837,972

—

Fully-converted shares outstanding - diluted

115,193,491

112,603,580

Adjusted fully-converted net income (loss) (per fully exchanged, fully diluted shares
outstanding)

$

0.27

$

(0.29)

Adjusted fully-converted loss excluding special items (per fully exchanged, fully diluted
shares outstanding) (Note 5)

$

(0.29)

$

(0.20)

Three Months Ended

RECONCILIATION OF INCOME FROM OPERATIONS

March 31,

TO INCOME FROM OPERATIONS EXCLUDING SPECIAL ITEMS

2018

2017

Income from operations (Note 17)

$

95,660

$

795

     Special Items (Note 5):

     Add:     Non-cash LCM inventory adjustment

(87,653)

16,039

Income from operations excluding special items

$

8,007

$

16,834

See Footnotes to Earnings Release Tables

PBF ENERGY INC. AND SUBSIDIARIES

RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP

EBITDA RECONCILIATIONS (Note 8)

(Unaudited, in thousands)

Three Months Ended

March 31,

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND EBITDA EXCLUDING
SPECIAL ITEMS

2018

2017

Net income (loss)

$

41,811

$

(20,030)

Add:     Depreciation and amortization expense

85,987

60,932

Add:     Interest expense, net

43,198

37,183

Add:     Income tax expense (benefit)

10,942

(19,047)

EBITDA

$

181,938

$

59,038

Special Items (Note 5):

Add:     Non-cash LCM inventory adjustment

(87,653)

16,039

EBITDA excluding special items

$

94,285

$

75,077

RECONCILIATION OF EBITDA TO ADJUSTED EBITDA

EBITDA

$

181,938

$

59,038

Add:     Stock-based compensation

5,072

6,025

Add:     Net non-cash change in fair value of catalyst leases

(13)

2,588

Add:     Non-cash LCM inventory adjustment (Note 5)

(87,653)

16,039

Adjusted EBITDA

$

99,344

$

83,690

See Footnotes to Earnings Release Tables

PBF ENERGY INC. AND SUBSIDIARIES

EARNINGS RELEASE TABLES

CONDENSED CONSOLIDATED BALANCE SHEET DATA

(Unaudited, in thousands)

March 31,

December 31,

2018

2017

Balance Sheet Data:

Cash and cash equivalents

$

362,963

$

573,021

Inventories

2,579,744

2,213,797

Total assets

8,282,363

8,117,993

Total debt

2,181,046

2,191,650

Total equity

2,915,825

2,902,949

Total equity excluding special items (Note 5, 14)

$

2,898,526

$

2,950,154

Total debt to capitalization ratio (Note 14)

43

%

43

%

Total debt to capitalization ratio, excluding special items (Note 14)

43

%

43

%

Net debt to capitalization ratio (Note 14)

38

%

36

%

Net debt to capitalization ratio, excluding special items (Note 14)

39

%

35

%

SUMMARIZED STATEMENT OF CASH FLOW DATA

(Unaudited, in thousands)

Three Months Ended March 31,

2018

2017

Cash flows used in operations

$

(85,433)

$

(165,364)

Cash flows used in investing activities

(93,280)

(188,974)

Cash flows used in financing activities

(31,345)

(85,845)

Net decrease in cash and cash equivalents

(210,058)

(440,183)

Cash and cash equivalents, beginning of period

573,021

746,274

Cash and cash equivalents, end of period

$

362,963

$

306,091

Marketable securities

—

40,054

Net cash, cash equivalents and marketable securities

$

362,963

$

346,145

See Footnotes to Earnings Release Tables

PBF ENERGY INC. AND SUBSIDIARIES

EARNINGS RELEASE TABLES

CONSOLIDATING FINANCIAL INFORMATION (Note 9)

(Unaudited, in thousands)

Three Months Ended March 31, 2018

Refining

Logistics

Corporate

 Eliminations

Consolidated
Total

Revenues

$

5,799,601

$

64,039

$

—

$

(60,864)

$

5,802,776

Depreciation and amortization expense

76,778

6,495

2,714

—

85,987

Income (loss) from operations (Note 15,
17)

125,713

35,205

(61,236)

(4,022)

95,660

Interest expense, net

1,835

9,948

31,415

—

43,198

Capital expenditures

88,297

3,953

1,030

—

93,280

Three Months Ended March 31, 2017

Refining

Logistics

Corporate

 Eliminations

Consolidated
Total

Revenues

$

4,750,197

$

60,477

$

—

$

(56,201)

$

4,754,473

Depreciation and amortization expense

53,818

5,352

1,762

—

60,932

Income (loss) from operations (Note 15, 17)

10,615

36,041

(42,262)

(3,599)

795

Interest expense, net

918

7,984

28,281

—

37,183

Capital expenditures

167,216

19,467

2,261

—

188,944

Balance at March 31, 2018

Refining

Logistics

Corporate

 Eliminations

Consolidated
Total

Total Assets (Note 16)

$

7,471,210

$

728,480

$

115,576

$

(32,903)

$

8,282,363

Balance at December 31, 2017

Refining

Logistics

Corporate

 Eliminations

Consolidated
Total

Total Assets (Note 16)

$

7,298,049

$

737,550

$

123,211

$

(40,817)

$

8,117,993

See Footnotes to Earnings Release Tables

PBF ENERGY INC. AND SUBSIDIARIES

EARNINGS RELEASE TABLES

MARKET INDICATORS AND KEY OPERATING INFORMATION

(Unaudited, amounts in thousands except as indicated)

Three Months Ended

March 31,

Market Indicators (dollars per barrel) (Note 10)

2018

2017

Dated Brent Crude

$

66.90

$

53.57

West Texas Intermediate (WTI) crude oil

$

62.90

$

51.70

Light Louisiana Sweet (LLS) crude oil

$

65.84

$

53.39

Alaska North Slope (ANS) crude oil

$

67.20

$

53.82

Crack Spreads:

     Dated Brent (NYH) 2-1-1

$

12.80

$

11.58

     WTI (Chicago) 4-3-1

$

11.78

$

11.19

     LLS (Gulf Coast) 2-1-1

$

12.84

$

12.03

     ANS (West Coast) 4-3-1

$

16.42

$

16.52

Crude Oil Differentials:

     Dated Brent (foreign) less WTI

$

4.00

$

1.87

     Dated Brent less Maya (heavy, sour)

$

9.15

$

8.95

     Dated Brent less WTS (sour)

$

5.40

$

3.31

     Dated Brent less ASCI (sour)

$

4.57

$

4.08

     WTI less WCS (heavy, sour)

$

26.06

$

12.93

     WTI less Bakken (light, sweet)

$

1.04

$

0.92

     WTI less Syncrude (light, sweet)

$

0.30

$

(2.20)

     WTI less LLS (light, sweet)

$

(2.94)

$

(1.69)

     WTI less ANS (light, sweet)

$

(4.30)

$

(2.12)

Natural gas (dollars per MMBTU)

$

2.79

$

3.06

Key Operating Information

Production (barrels per day ("bpd") in thousands)

803.0

742.7

Crude oil and feedstocks throughput (bpd in thousands)

799.6

738.0

Total crude oil and feedstocks throughput (millions of barrels)

72.0

66.4

Gross margin per barrel of throughput

$

2.54

$

1.01

Gross refining margin, excluding special items, per barrel of throughput (Note 5, Note 11)

$

7.26

$

7.75

Refinery operating expense, per barrel of throughput (Note 12)

$

5.72

$

6.58

Crude and feedstocks (% of total throughput) (Note 13)

     Heavy

34

%

40

%

     Medium

35

%

29

%

     Light

20

%

16

%

     Other feedstocks and blends

11

%

15

%

Total throughput

100

%

100

%

Yield (% of total throughput):

     Gasoline and gasoline blendstocks

51

%

52

%

     Distillates and distillate blendstocks

31

%

29

%

     Lubes

1

%

1

%

     Chemicals

2

%

2

%

     Other

15

%

16

%

Total yield

100

%

100

%

See Footnotes to Earnings Release Tables

PBF ENERGY INC. AND SUBSIDIARIES

EARNINGS RELEASE TABLES

 SUPPLEMENTAL OPERATING INFORMATION

(Unaudited, amounts in thousands except as indicated)

Three Months Ended

March 31,

2018

2017

Supplemental Operating Information - East Coast (Delaware City and Paulsboro)

Production (bpd in thousands)

329.6

317.0

Crude oil and feedstocks throughput (bpd in thousands)

332.9

320.3

Total crude oil and feedstocks throughput (millions of barrels)

30.0

28.8

Gross margin per barrel of throughput

$

1.23

$

(0.09)

Gross refining margin, excluding special items, per barrel of throughput (Note 5, Note 11)

$

6.47

$

5.96

Refinery operating expense, per barrel of throughput (Note 12)

$

5.16

$

5.18

Crude and feedstocks (% of total throughput) (Note 13):

     Heavy

23

%

37

%

     Medium

52

%

36

%

     Light

10

%

10

%

     Other feedstocks and blends

15

%

17

%

Total throughput

100

%

100

%

Yield (% of total throughput):

     Gasoline and gasoline blendstocks

48

%

47

%

     Distillates and distillate blendstocks

32

%

30

%

     Lubes

3

%

2

%

     Chemicals

1

%

1

%

     Other

15

%

19

%

Total yield

99

%

99

%

Supplemental Operating Information - Mid-Continent (Toledo)

Production (bpd in thousands)

125.0

126.5

Crude oil and feedstocks throughput (bpd in thousands)

122.9

123.8

Total crude oil and feedstocks throughput (millions of barrels)

11.1

11.1

Gross margin per barrel of throughput

$

0.12

$

(1.67)

Gross refining margin, excluding special items, per barrel of throughput (Note 5, Note 11)

$

8.22

$

7.65

Refinery operating expense, per barrel of throughput (Note 12)

$

6.19

$

6.53

Crude and feedstocks (% of total throughput) (Note 13):

     Medium

37

%

46

%

     Light

62

%

53

%

     Other feedstocks and blends

1

%

1

%

Total throughput

100

%

100

%

Yield (% of total throughput):

     Gasoline and gasoline blendstocks

60

%

54

%

     Distillates and distillate blendstocks

32

%

35

%

     Chemicals

5

%

7

%

     Other

5

%

6

%

Total yield

102

%

102

%

See Footnotes to Earnings Release Tables

PBF ENERGY INC. AND SUBSIDIARIES

EARNINGS RELEASE TABLES

 SUPPLEMENTAL OPERATING INFORMATION

(Unaudited, amounts in thousands except as indicated)

Three Months Ended

March 31,

2018

2017

Supplemental Operating Information - Gulf Coast (Chalmette)

Production (bpd in thousands)

167.1

162.7

Crude oil and feedstocks throughput (bpd in thousands)

169.2

155.6

Total crude oil and feedstocks throughput (millions of barrels)

15.2

14.0

Gross margin per barrel of throughput

$

0.06

$

1.72

Gross refining margin, excluding special items, per barrel of throughput (Note 5, Note 11)

$

4.45

$

9.20

Refinery operating expense, per barrel of throughput (Note 12)

$

5.01

$

6.23

Crude and feedstocks (% of total throughput) (Note 13):

     Heavy

41

%

41

%

     Medium

19

%

24

%

     Light

32

%

13

%

     Other feedstocks and blends

8

%

22

%

Total throughput

100

%

100

%

Yield (% of total throughput):

     Gasoline and gasoline blendstocks

40

%

50

%

     Distillates and distillate blendstocks

33

%

29

%

     Chemicals

1

%

2

%

     Other

25

%

19

%

99

%

100

%

Supplemental Operating Information - West Coast (Torrance)

Production (bpd in thousands)

181.3

136.5

Crude oil and feedstocks throughput (bpd in thousands)

174.6

138.3

Total crude oil and feedstocks throughput (millions of barrels)

15.7

12.5

Gross margin per barrel of throughput

$

5.26

$

0.39

Gross refining margin, excluding special items, per barrel of throughput (Note 5, Note 11)

$

10.81

$

10.33

Refinery operating expense, per barrel of throughput (Note 12)

$

7.13

$

10.24

Crude and feedstocks (% of total throughput) (Note 13):

     Heavy

80

%

83

%

     Medium

4

%

1

%

     Other feedstocks and blends

16

%

16

%

Total throughput

100

%

100

%

Yield (% of total throughput):

     Gasoline and gasoline blendstocks

60

%

64

%

     Distillates and distillate blendstocks

28

%

21

%

     Other

16

%

14

%

Total yield

104

%

99

%

See Footnotes to Earnings Release Tables

PBF ENERGY INC. AND SUBSIDIARIES

RECONCILIATION OF AMOUNTS REPORTED UNDER U.S. GAAP

GROSS REFINING MARGIN / GROSS REFINING MARGIN PER BARREL OF THROUGHPUT (Note 11)

(Unaudited, in thousands, except per barrel amounts)

Three Months Ended

Three Months Ended

March 31, 2018

March 31, 2017

RECONCILIATION OF GROSS MARGIN TO GROSS REFINING
MARGIN AND GROSS REFINING MARGIN EXCLUDING
SPECIAL ITEMS

$

per barrel of
throughput

$

per barrel of
throughput

Calculation of gross margin:

Revenues

$

5,802,776

$

80.64

$

4,754,473

$

71.56

Less: Cost of products and other

5,132,102

71.31

4,196,767

63.16

Less: Refinery operating expense

411,447

5.72

436,768

6.58

Less: Refinery depreciation expense

76,778

1.07

53,927

0.81

Gross margin

$

182,449

$

2.54

$

67,011

$

1.01

Less:  Revenues of PBFX

(64,039)

(0.89)

(60,477)

(0.91)

Add:  Affiliate cost of sales of PBFX

3,360

0.05

1,215

0.02

Add:  Refinery operating expense (Note 17)

411,447

5.72

436,768

6.58

Add:  Refinery depreciation expense

76,778

1.07

53,927

0.81

Gross refining margin

$

609,995

$

8.49

$

498,444

$

7.51

   Special Items (Note 5):

Add: Non-cash LCM inventory adjustment

(87,653)

(1.23)

16,039

0.24

Gross refining margin excluding special items

$

522,342

$

7.26

$

514,483

$

7.75

See Footnotes to Earnings Release Tables

PBF ENERGY INC. AND SUBSIDIARIES

EARNINGS RELEASE TABLES

FOOTNOTES TO EARNINGS RELEASE TABLES

(1) During the third quarter of 2017, we determined that we would revise the presentation of certain line items on our consolidated statements of operations to enhance our disclosure under the requirements of Rule 5-03 of Regulation S-X. The revised presentation is comprised of the inclusion of a subtotal within cost and expenses referred to as "Cost of sales" and the reclassification of total depreciation and amortization expense between such amounts attributable to cost of sales and other operating costs and expenses. The amount of depreciation and amortization expense that is presented separately within the "Cost of sales" subtotal represents depreciation and amortization of refining and logistics assets that are integral to the refinery production process. The historical comparative information has been revised to conform to the current presentation. This revised presentation does not have an effect on our historical condensed consolidated income from operations or net income, nor does it have any impact on our condensed consolidated balance sheets, statements of comprehensive income or statements of cash flows.

(2) Adjusted fully-converted information is presented in this table as management believes that these Non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful to investors to compare our results across the periods presented and facilitates an understanding of our operating results. We also use these measures to evaluate our operating performance. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The differences between adjusted fully-converted and GAAP results are explained in footnotes 3 through 7.

(3) Represents the elimination of the noncontrolling interest associated with the ownership by the members of PBF Energy Company LLC ("PBF LLC") other than PBF Energy Inc., as if such members had fully exchanged their Series A Units for shares of PBF Energy's Class A common stock.

(4) Represents an adjustment to reflect our estimated annualized statutory corporate tax rate of approximately 26.4% and 39.4% for the 2018 and 2017 periods, respectively, applied to net income attributable to noncontrolling interests for all periods presented. The adjustment assumes the full exchange of existing PBF Energy Company LLC Series A Units as described in footnote 3.

(5) The Non-GAAP measures presented include adjusted fully-converted net income (loss) excluding special items, income from operations excluding special items, EBITDA excluding special items and gross refining margin excluding special items. The special items presented for the three months ended March 31, 2018 and  for the three months ended March 31, 2017 relate to a lower of cost or market ("LCM") inventory adjustment as discussed further below. Additionally, the cumulative effects of all prior period special items on equity are shown in footnote 14.

Although we believe that Non-GAAP financial measures excluding the impact of special items provide useful supplemental information to investors regarding the results and performance of our business and allow for useful period-over-period comparisons, such Non-GAAP measures should only be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.

LCM inventory adjustment - LCM is a GAAP guideline related to inventory valuation that requires inventory to be stated at the lower of cost or market. Our inventories are stated at the lower of cost or market. Cost is determined using last-in, first-out (LIFO) inventory valuation methodology, in which the most recently incurred costs are charged to cost of sales and inventories are valued at base layer acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and net realizable selling price of the inventory. In periods where the market price of our inventory declines substantially, cost values of inventory may exceed market values. In such instances, we record an adjustment to write down the value of inventory to market value in accordance with GAAP. In subsequent periods, the value of inventory is reassessed and an LCM inventory adjustment is recorded to reflect the net change in the LCM inventory reserve between the prior period and the current period.

The following table shows the LCM inventory reserve as of each date presented (in thousands):

2018

2017

January 1,

$

300,456

$

595,988

March 31,

212,803

612,027

The following table includes the corresponding impact of changes in the LCM inventory reserve on income from operations and net income (loss) for the periods presented (in thousands):

2018

2017

Net LCM inventory adjustment benefit (charge) in income from
operations

$

87,653

$

(16,039)

Net LCM inventory adjustment benefit (charge) in net income (loss)

64,504

(9,726)

(6) Represents an adjustment to weighted-average diluted shares outstanding to assume the full exchange of existing PBF LLC Series A Units as described in footnote 3 above.

(7) Represents weighted-average diluted shares outstanding assuming the conversion of all common stock equivalents, including options and warrants for PBF LLC Series A Units and options for shares of PBF Energy Class A common stock as calculated under the treasury stock method (to the extent the impact of such exchange would not be anti-dilutive) for the three months ended March 31, 2018 and 2017, respectively. Common stock equivalents exclude the effects of options and warrants to purchase 3,982,000 and 7,364,616 shares of PBF Energy Class A common stock and PBF LLC Series A Units because they are anti-dilutive for the three months ended March 31, 2018 and 2017, respectively.

(8) EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) and Adjusted EBITDA are supplemental measures of performance that are not required by, or presented in accordance with GAAP. We use these Non-GAAP financial measures as a supplement to our GAAP results in order to provide additional metrics on factors and trends affecting our business. EBITDA and Adjusted EBITDA are measures of operating performance that are not defined by GAAP and should not be considered substitutes for net income as determined in accordance with GAAP. In addition, because EBITDA and Adjusted EBITDA are not calculated in the same manner by all companies, they are not necessarily comparable to other similarly titled measures used by other companies. EBITDA and Adjusted EBITDA have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP.

(9) We operate in two reportable segments: Refining and Logistics. Our operations that are not included in the Refining and Logistics segments are included in Corporate. As of March 31, 2018, the Refining segment includes the operations of our oil refineries and related facilities in Delaware City, Delaware, Paulsboro, New Jersey, Toledo, Ohio, New Orleans, Louisiana and Torrance, California. The Logistics segment includes the operations of PBF Logistics LP ("PBFX"), a growth-oriented master limited partnership which owns or leases, operates, develops and acquires crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. PBFX's assets consist of rail and truck terminals and unloading racks, tank farms and pipelines, a substantial portion of which were acquired from or contributed by PBF LLC and are located at, or nearby, the company's refineries. PBFX provides various rail, truck and marine terminaling services, pipeline transportation services and storage services to PBF Holding and/or its subsidiaries and third party customers through fee-based commercial agreements.

PBFX currently does not generate significant third party revenue and intersegment related-party revenues are eliminated in consolidation. From a PBF Energy perspective, the Company's chief operating decision maker evaluates the Logistics segment as a whole without regard to any of PBFX's individual segments.

(10) As reported by Platts.

(11) Gross refining margin and gross refining margin per barrel of throughput are Non-GAAP measures because they exclude refinery operating expenses, refinery depreciation and amortization and gross margin of PBFX. Gross refining margin per barrel is gross refining margin, divided by total crude and feedstocks throughput. We believe they are important measures of operating performance and provide useful information to investors because gross refining margin per barrel is a helpful metric comparison to the industry refining margin benchmarks shown in the Market Indicators Tables, as the industry benchmarks do not include a charge for refinery operating expenses and depreciation. Other companies in our industry may not calculate gross refining margin and gross refining margin per barrel in the same manner. Gross refining margin and gross refining margin per barrel of throughput have their limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP.

(12) Represents refinery operating expenses, including corporate-owned logistics assets, excluding depreciation and amortization, divided by total crude oil and feedstocks throughput.

(13) We define heavy crude oil as crude oil with American Petroleum Institute (API) gravity less than 24 degrees. We define medium crude oil as crude oil with API gravity between 24 and 35 degrees. We define light crude oil as crude oil with API gravity higher than 35 degrees.

(14) The total debt to capitalization ratio is calculated by dividing total debt by the sum of total debt and total equity. This ratio is a measurement that management believes is useful to investors in analyzing our leverage. Net debt and the net debt to capitalization ratio are Non-GAAP measures. Net debt is calculated by subtracting cash and cash equivalents from total debt. We believe these measurements are also useful to investors since we have the ability to and may decide to use a portion of our cash and cash equivalents to retire or pay down our debt. Additionally, as described in footnote 5 above, we have also presented the total debt to capitalization and net debt to capitalization ratios excluding the cumulative effects of special items on equity.

March 31,

December 31,

2018

2017

(in thousands)

Total debt

$

2,181,046

$

2,191,650

Total equity

2,915,825

2,902,949

Total capitalization

$

5,096,871

$

5,094,599

Total debt

$

2,181,046

$

2,191,650

Total equity excluding special items

2,898,526

2,950,154

Total capitalization excluding special items

$

5,079,572

$

5,141,804

Total equity

$

2,915,825

$

2,902,949

  Special Items (Note 5)

    Add: Non-cash LCM inventory adjustment

212,803

300,456

    Add: Change in tax receivable agreement liability

(276,430)

(276,430)

    Add: Debt extinguishment costs

25,451

25,451

    Less: Recomputed income taxes on special items

724

(22,425)

    Add: Net tax expense on TCJA related special items

20,153

20,153

       Net impact of special items to equity

(17,299)

47,205

Total equity excluding special items

$

2,898,526

$

2,950,154

Total debt

$

2,181,046

$

2,191,650

    Less: Cash and cash equivalents

362,963

573,021

Net Debt

$

1,818,083

$

1,618,629

Total debt to capitalization ratio