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PBF Logistics Declares Quarterly Distribution of $0.30 per Unit and Announces Second Quarter 2022 Earnings Results

  • Second quarter net income attributable to the limited partners of $39.2 million, or $0.62 per common unit, EBITDA attributable to PBFX of $58.1 million and Adjusted EBITDA of $57.5 million
  • Year-to-date debt reduced by $70.0 million through repayments on the revolving credit facility
  • Declares quarterly distribution of $0.30 per unit
  • PBF Energy Announces Agreement to Acquire Remaining Public Stake in PBF Logistics LP

PARSIPPANY, N.J., July 28, 2022 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX, the ", Partnership", ))) today announced second quarter 2022 net income attributable to the limited partners of $39.2 million, or $0.62 per common unit. During the quarter, the Partnership generated cash from operations of $44.2 million, EBITDA attributable to PBFX of $58.1 million, Adjusted EBITDA of $57.5 million and distributable cash flow of $49.6 million. Included in reported results for the second quarter are $2.9 million, or $0.05 per common unit, of non-cash unit-based compensation expense and continued environmental remediation costs associated with the East Coast Terminals. Also included in second quarter results is approximately $3.5 million of one-time, incremental revenue related to certain East Coast storage operations.

"PBF Logistics enjoyed another quarter of safe, reliable and consistent operations. We reduced our net leverage by an incremental $45 million, $70 million on a year-to-date basis, and today announced a quarterly distribution of $0.30 per unit," said PBF Logistics GP LLC Executive Vice President Matt Lucey. "Our 2022 focus is on the continued health and safety of our employees and operations, providing high-quality, uninterrupted service to our customers."

As of June 30, 2022, the Partnership had approximately $497.2 million of liquidity, including approximately $30.7 million in cash and cash equivalents, and access to approximately $466.5 million under its revolving credit facility. Year-to-date, the outstanding balance of the revolving credit facility has been reduced by $70.0 million.

PBF Logistics Declares Quarterly Distribution

The board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.30 per common unit. The distribution is payable on August 25, 2022, to unitholders of record at the close of business on August 11, 2022.

This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.

Merger Agreement with PBF Energy

On July 28, 2022, the Partnership and PBF Energy Inc. ("PBF Energy") announced a definitive agreement and plan of merger (the "Merger Agreement") pursuant to which PBF Energy will acquire all of the publicly held common units representing limited partner interests in the Partnership not already owned by PBF Energy and its subsidiaries on the closing date of the transaction (the "Merger Transaction"). The Merger Agreement provides that each outstanding common unit of the Partnership held by an unaffiliated common unitholder will receive 0.270 shares of PBF Energy Class A common stock and $9.25 in cash, without interest. For additional information on this transaction, please refer to the separate joint press release published today.

Non-GAAP Financial Measures

The Partnership defines EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization, impairment expense and change in contingent consideration. The Partnership defines EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization, impairment expense and change in contingent consideration attributable to PBFX, which excludes results of acquisitions from affiliates of PBF Energy prior to the effective dates of such transactions and earnings attributable to the CPI earn-out (the portion of earnings associated with an earn-out provision related to the purchase of CPI Operations LLC ("CPI"), (the "Contingent Consideration")). The Partnership defines Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. The Partnership defines distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").

For additional information on the Partnership's non-GAAP financial measures, including reconciliations to their most directly comparable financial measures calculated and presented in accordance with GAAP, refer to the supplemental information provided in "Results of Operations" and the Earnings Release Tables included herein.

Conference Call Information

The Partnership will host a conference call and webcast regarding quarterly results and other business matters on Thursday, July 28, 2022, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (877) 407-8029 or (201) 689-8029. The audio replay will be available approximately two hours after the end of the call and will be available through the company's website.

Forward-Looking Statements

This press release contains forward-looking statements (as that term is defined under the federal securities laws) made by the Partnership and its management. Such statements are based on current expectations, forecasts and projections, including, but not limited to, anticipated financial and operating results, plans, objectives, expectations and intentions that are not historical in nature. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by which, such performance or results will be achieved. Forward-looking statements are based on information available at the time, and are subject to various risks and uncertainties, which include but are not limited to risks related to the Merger Transaction, including the risk that the transaction is not consummated during the expected timeframe, or at all, the risks relating to the securities markets generally, the impact of adverse market conditions impacting PBFX's logistics and other assets, the possibility that the Partnership may not consummate any potential future acquisitions, the Partnership's plans for financing any potential future acquisitions, the duration and severity of the COVID-19 pandemic, and other risks inherent in PBFX's business. For more information concerning factors that could cause actual results to differ from those expressed or forecasted, see PBFX's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Partnership assumes no responsibility or obligation to update forward-looking statements except as may be required by law.

PBF Logistics LP

PBF Logistics LP, headquartered in Parsippany, New Jersey, is a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.

Results of Operations (Unaudited)
Factors Affecting Comparability

The following tables present our results of operations, related operational information and reconciliations of net income and net cash provided by operating activities to our EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow (each as defined below) for the three and six months ended June 30, 2022 and 2021. 

Our results of operations may not be comparable to our historical results of operations due to certain debt transactions and our annual inflation adjustment to our commercial agreements. 

Non-GAAP Financial Measures

We define EBITDA as net income (loss) before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization and change in contingent consideration. We define EBITDA attributable to PBFX as net income (loss) attributable to PBFX before net interest expense (including amortization of loan fees and debt premium and accretion on discounted liabilities), income tax expense, depreciation, amortization and change in contingent consideration attributable to PBFX, which excludes the results of acquisitions from PBF LLC prior to the effective dates of such transactions and earnings attributable to the CPI Operations LLC ("CPI") earn-out (the portion of earnings associated with an earn-out provision related to the purchase of CPI (the "Contingent Consideration")). We define Adjusted EBITDA as EBITDA attributable to PBFX excluding acquisition and transaction costs, non-cash unit-based compensation expense and items that meet the conditions of unusual, infrequent and/or non-recurring charges. We define distributable cash flow as EBITDA attributable to PBFX plus non-cash unit-based compensation expense, less cash interest, maintenance capital expenditures attributable to PBFX and income taxes. Distributable cash flow will not reflect changes in working capital balances. We use distributable cash flow to calculate a measure we refer to as our coverage ratio. Our coverage ratio is calculated by dividing distributable cash flow by our total distribution declared. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with U.S. generally accepted accounting principles ("GAAP").

While EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with GAAP, they are supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

  • our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
  • the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
  • our ability to incur and service debt and fund capital expenditures; and
  • the viability of acquisitions and other capital expenditure projects and the economic returns on various investment opportunities.

We believe that the presentation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA provides useful information to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance for current and comparative periods. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance and it provides investors with another perspective of the operating performance of our assets and the cash our business is generating. However, EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, income from operations, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP.

EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all, items that affect net income and net cash provided by operating activities. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP in the Earnings Release Tables included herein.

These non-GAAP financial measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other partnerships, because they may be defined differently by other partnerships in our industry, thereby limiting their utility.

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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









Three Months Ended

June 30,



Six Months Ended

June 30,

2022



2021



2022



2021

Revenue:

















Affiliate

$          79,624



$          75,107



$        155,609



$        151,040



Third-party

13,742



14,731



27,200



26,303

Total revenue

93,366



89,838



182,809



177,343

















Costs and expenses:

















Operating and maintenance expenses

28,191



25,447



57,606



50,495



General and administrative expenses

6,682



6,226



10,593



10,690



Depreciation and amortization

9,146



9,276



18,630



18,681



Change in contingent consideration

—



1,149



238



1,804

Total costs and expenses

44,019



42,098



87,067



81,670

















Income from operations

49,347



47,740



95,742



95,673

















Other expense:

















Interest expense, net

(9,706)



(10,212)



(19,419)



(20,499)



Amortization of loan fees and debt premium

(415)



(426)



(833)



(855)



Accretion on discounted liabilities

(5)



(6)



(10)



(12)

Net income attributable to PBF Logistics LP unitholders

$          39,221



$          37,096



$          75,480



$          74,307

















Net income per limited partner unit (f):

















Common units - basic

$              0.62



$              0.59



$              1.20



$              1.18



Common units - diluted

0.62



0.59



1.20



1.18

















Weighted-average limited partner units outstanding (f):

















Common units - basic

63,050,107



62,785,212



63,000,110



62,737,272



Common units - diluted

63,205,739



62,982,884



63,078,204



62,859,734

















See Footnotes to Earnings Release Tables

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

KEY OPERATING AND FINANCIAL INFORMATION

(Unaudited, amounts in thousands except barrel and per unit data)

























Three Months Ended

June 30,



Six Months Ended

June 30,





2022



2021



2022



2021

Transportation and Terminaling Segment



















Terminals



















Total throughput (barrels per day ("bpd")) (a)(c)





279,692



257,765



258,311



238,922

Lease tank capacity (average lease capacity barrels per month) (c)





2,256,829



2,421,334



2,349,178



2,455,834

Pipelines



















Total throughput (bpd) (a)(c)





147,691



153,834



159,452



153,650

Lease tank capacity (average lease capacity barrels per month) (c)





1,270,012



1,031,234



1,235,834



1,032,490





















Storage Segment



















Storage capacity reserved (average shell capacity barrels per month) (c)





7,728,150



7,670,900



7,814,688



7,638,031

Total throughput (bpd) (a)(c)





6,144



23,113



7,872



15,535

















Cash Flow Information:

















Net cash provided by (used in):



















         Operating activities

$        44,150



$        35,463



$        111,472



$          90,285

         Investing activities

(1,705)



(2,255)



(3,138)



(3,509)

         Financing activities

(65,076)



(44,764)



(111,540)



(90,650)

             Net change in cash and cash equivalents





$       (22,631)



$       (11,556)



$          (3,206)



$          (3,874)

















Other Financial Information:

















EBITDA attributable to PBFX (b)

$        58,077



$        57,016



$        113,939



$        114,939



Adjusted EBITDA (b)

$        57,487



$        59,979



$        114,068



$        118,975



Distributable cash flow (b)

$        49,619



$        48,535



$          95,319



$          96,713



Quarterly distribution declared per unit (d)

$            0.30



$            0.30



$              0.60



$              0.60



Distributions (d):



















Common

$        19,093



$        19,021



$          38,186



$          37,945







Total distributions

$        19,093



$        19,021



$          38,186



$          37,945







Coverage ratio (b)





2.60x



2.55x



2.50x



2.54x



Capital expenditures

$          1,705



$          2,255



$            3,138



$            3,509





















See Footnotes to Earnings Release Tables

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

KEY OPERATING AND FINANCIAL INFORMATION (continued)

(Unaudited, in thousands)





June 30,



December 31,

Balance Sheet Information:



2022



2021



Cash and cash equivalents (e)

$             30,698



$             33,904



Property, plant and equipment, net

771,721



787,338



Total assets

866,952



901,297



Total debt (e)

553,377



622,544



Total liabilities

578,528



652,601



Partners' equity

288,424



248,696



Total liabilities and equity

866,952



901,297









See Footnotes to Earnings Release Tables













 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

RECONCILIATION OF AMOUNTS REPORTED UNDER GAAP

TO EBITDA AND DISTRIBUTABLE CASH FLOW

(Unaudited, in thousands)

















Three Months Ended

June 30,



Six Months Ended

June 30,

2022



2021



2022



2021

Reconciliation of net income to EBITDA and distributable cash flow (b):

















 Net income

$        39,221



$        37,096



$          75,480



$          74,307





Interest expense, net

9,706



10,212



19,419



20,499





Amortization of loan fees and debt premium

415



426



833



855





Accretion on discounted liabilities

5



6



10



12





Change in contingent consideration

—



1,149



238



1,804





Depreciation and amortization

9,146



9,276



18,630



18,681



 EBITDA

58,493



58,165



114,610



116,158





Less: Earnings attributable to the CPI earn-out

416



1,149



671



1,219



 EBITDA attributable to PBFX

58,077



57,016



113,939



114,939





Non-cash unit-based compensation expense

2,824



2,834



3,478



3,823





Cash interest

(9,741)



(10,266)



(19,497)



(20,612)





Maintenance capital expenditures attributable to PBFX

(1,541)



(1,049)



(2,601)



(1,437)



 Distributable cash flow

$        49,619



$        48,535



$          95,319



$          96,713

















Reconciliation of net cash provided by operating activities to EBITDA and distributable cash flow (b):

















 Net cash provided by operating activities

$        44,150



$        35,463



$        111,472



$          90,285



Change in operating assets and liabilities

7,461



15,324



(12,803)



9,197





Interest expense, net

9,706



10,212



19,419



20,499





Non-cash unit-based compensation expense

(2,824)



(2,834)



(3,478)



(3,823)



 EBITDA

58,493



58,165



114,610



116,158





Less: Earnings attributable to the CPI earn-out

416



1,149



671



1,219



 EBITDA attributable to PBFX

58,077



57,016



113,939



114,939





Non-cash unit-based compensation expense

2,824



2,834



3,478



3,823





Cash interest

(9,741)



(10,266)



(19,497)



(20,612)





Maintenance capital expenditures attributable to PBFX

(1,541)



(1,049)



(2,601)



(1,437)



 Distributable cash flow

$        49,619



$        48,535



$          95,319



$          96,713

















See Footnotes to Earnings Release Tables

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

RECONCILIATION OF AMOUNTS REPORTED UNDER GAAP

TO EBITDA AND ADJUSTED EBITDA

(Unaudited, in thousands)

















Three Months Ended

June 30,



Six Months Ended

June 30,

2022



2021



2022



2021

Reconciliation of net income to EBITDA and Adjusted EBITDA (b):

















 Net income

$        39,221



$        37,096



$          75,480



$          74,307





Interest expense, net

9,706



10,212



19,419



20,499





Amortization of loan fees and debt premium

415



426



833



855





Accretion on discounted liabilities

5



6



10



12





Change in contingent consideration

—



1,149



238



1,804





Depreciation and amortization

9,146



9,276



18,630



18,681



 EBITDA

58,493



58,165



114,610



116,158





Less: Earnings attributable to the CPI earn-out

416



1,149



671



1,219



 EBITDA attributable to PBFX

58,077



57,016



113,939



114,939





Non-cash unit-based compensation expense

2,824



2,834



3,478



3,823





East Coast Terminals environmental remediation costs

45



129



110



213





East Coast Storage Assets one-time, incremental revenue

(3,459)



—



(3,459)



—



Adjusted EBITDA

$        57,487



$        59,979



$        114,068



$        118,975

















See Footnotes to Earnings Release Tables

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

SEGMENT FINANCIAL INFORMATION

(Unaudited, in thousands)























Three Months Ended June 30, 2022





Transportation

and

Terminaling



Storage



Corporate



Consolidated

Total

Total revenue



$               70,718



$               22,648



$                      —



$               93,366

Depreciation and amortization



7,087



2,059



—



9,146

Income (loss) from operations



43,113



12,916



(6,682)



49,347

Other expense



—



—



10,126



10,126

Capital expenditures



1,271



434



—



1,705























Three Months Ended June 30, 2021





Transportation

and

Terminaling



Storage



Corporate



Consolidated

Total

Total revenue



$               70,708



$               19,130



$                      —



$               89,838

Depreciation and amortization



7,105



2,171



—



9,276

Income (loss) from operations



45,448



8,518



(6,226)



47,740

Other expense



—



—



10,644



10,644

Capital expenditures



2,254



1



—



2,255























Six Months Ended June 30, 2022





Transportation

and

Terminaling



Storage



Corporate



Consolidated

Total

Total revenue



$             140,966



$               41,843



$                      —



$             182,809

Depreciation and amortization



14,517



4,113



—



18,630

Income (loss) from operations



85,192



21,143



(10,593)



95,742

Other expense



—



—



20,262



20,262

Capital expenditures



2,573



565



—



3,138























Six Months Ended June 30, 2021





Transportation

and

Terminaling



Storage



Corporate



Consolidated

Total

Total revenue



$             142,185



$               35,158



$                      —



$             177,343

Depreciation and amortization



14,340



4,341



—



18,681

Income (loss) from operations



92,057



14,306



(10,690)



95,673

Other expense



—



—



21,366



21,366

Capital expenditures



3,309



200



—



3,509

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

SEGMENT FINANCIAL INFORMATION (continued)

(Unaudited, in thousands)























Balance at June 30, 2022





Transportation

and

Terminaling



Storage



Corporate



Consolidated

Total

Total assets



$             650,111



$             189,100



$               27,741



$             866,952























Balance at December 31, 2021





Transportation

and

Terminaling



Storage



Corporate



Consolidated

Total

Total assets



$             688,005



$             188,393



$               24,899



$             901,297

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

FOOTNOTES TO EARNINGS RELEASE TABLES

(Unaudited, in thousands, except per unit data)

























(a)



Calculated as the sum of the average throughput per day for each asset group for the periods presented.

























(b)



See "Non-GAAP Financial Measures" on page 4 for definitions of EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA, distributable cash flow and coverage ratio.

























(c)



Operating information reflects activity subsequent to our acquisitions, the execution of the commercial agreements with PBF Holding and the completion of certain organic growth projects.







(d)



On July 28, 2022, the board of directors of our general partner announced a quarterly cash distribution of $0.30 per limited partner unit based on the results of the second quarter of 2022. The distribution is payable on August 25, 2022 to PBFX unitholders of record at the close of business on August 11, 2022. The total distribution amount includes the expected distributions to be made related to second quarter earnings.







(e)



Management also utilizes net debt as a metric in assessing our leverage. Net debt is a non-GAAP measure calculated by subtracting cash and cash equivalents from total debt. We believe this measurement is 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. This non-GAAP financial measure should not be considered in isolation or as a substitute for analysis of our debt levels as reported under GAAP. Our definition of net debt may not be comparable to similarly titled measures of other partnerships, because it may be defined differently by other partnerships in our industry, thereby limiting its utility. Our net debt as of June 30, 2022 and December 31, 2021 was $522,679 and $588,640, respectively.

























(f)



We base our calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during the period and the amount of available cash that has been, or will be, distributed to the limited partners.

 

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SOURCE PBF Logistics LP