Preliminary Analysis of the Economic Impacts of the PES Refining - PowerPoint PPT Presentation

Preliminary Analysis of the Economic Impacts of the PES Refining Complex Refinery Advisory Group’s Business Committee September 9 th , 2019

The PES Refining Complex • Oldest, largest refinery on the East Coast • 1,400-acre facility comprised of: Girard Point Refinery Point Breeze Refinery Schuylkill River Tank Farm North Yard Rail & Storage Preliminary Analysis of the Economic Impacts of the Refining Complex 2

Steady State Operations • Estimated economic impact associated with an illustrative year of operations at the Refining Complex at its pre-fire, pre-bankruptcy steady state Preliminary Analysis of the Economic Impacts of the Refining Complex 3

Steady State Operations Economic Impact Methodology DIRECT Total Direct Expenditures Employee Compensation All Non-Personnel Expenditures INDIRECT Indirect Economic Activity & Jobs Employee Compensation INDUCED Induced Economic Activity & Jobs TOTAL ECONOMIC IMPACT TOTAL Preliminary Analysis of the Economic Impacts of the Refining Complex 4

Estimated Annual Operating Expenditures Based on currently available data: Model Inputs (Direct) • Annual Average Full-Time Employees: 1,950 • Total Annual Employee Compensation: $237 M • Total Annual Expenditures: $1.1 B Preliminary Analysis of the Economic Impacts of the Refining Complex 5

Estimated Annual Economic Impact City of Philadelphia • Total Economic Impact: $2.1 billion • Jobs Supported (FTE): 6,300 • Total Employee Compensation: $600 million Preliminary Analysis of the Economic Impacts of the Refining Complex 6

Estimated Annual Economic Impact Philadelphia MSA • Total Economic Impact: $2.3 billion • Jobs Supported (FTE): 7,600 • Total Employee Compensation: $650 million Preliminary Analysis of the Economic Impacts of the Refining Complex 7

Estimated Annual Economic Impact Commonwealth of Pennsylvania • Total Economic Impact: $2.3 billion • Jobs Supported (FTE): 7,650 • Total Employee Compensation: $640 million Preliminary Analysis of the Economic Impacts of the Refining Complex 8

Estimated Employment Impact 14% PROF OFESSI SSION ONAL AL, SCIENT IENTIF IFIC IC 13% 43% 25% FINANC NCE, ALL OTHER INSUR URAN ANCE DIRE RECT T OIL & GAS AS PRO RODU DUCT CTIO ION JOBS BS 11% HEALTHC THCAR ARE 10% 75% ADMIN IN. 10% SUPPO PORT HOSPIT ITAL ALIT ITY INDIR IREC ECT T & INDU DUCE CED D JOBS BS IN SUP UPPO PORTE TED D INDU DUSTR TRIE IES Preliminary Analysis of the Economic Impacts of the Refining Complex 9

Tax Impact Methodology • Not based on actual direct tax data • Not based on IMPLAN estimates • Customized tax model based on Philadelphia and Pennsylvania effective rates Preliminary Analysis of the Economic Impacts of the Refining Complex 10

Estimated Annual Tax Impact City of Philadelphia Total Estimated Tax Impact*: $33.2 million * Includes Income, Business, Sales & Use, Property, and Use & Occupancy Taxes Preliminary Analysis of the Economic Impacts of the Refining Complex 11

Estimated Annual Tax Impact Commonwealth of Pennsylvania Total Estimated Tax Impact*: $30 million * Includes Income, Business, Sales & Use, Property, and Use & Occupancy Taxes Preliminary Analysis of the Economic Impacts of the Refining Complex 12