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

  • First quarter net income attributable to the limited partners of $36.3 million, or $0.58 per common unit, EBITDA attributable to PBFX of $55.9 million and Adjusted EBITDA of $56.6 million
  • Strong base of contracted minimum volume commitments support approximately 90% of $89.4 million total revenue
  • Year-to-date debt reduced by $25.0 million through repayments on the revolving credit facility
  • Declares quarterly distribution of $0.30 per unit

PARSIPPANY, N.J., April 28, 2022  /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX, the ", Partnership", ))) today announced first quarter 2022 net income attributable to the limited partners of $36.3 million, or $0.58 per common unit. During the quarter, the Partnership generated cash from operations of $67.3 million, EBITDA attributable to PBFX of $55.9 million, Adjusted EBITDA of $56.6 million and distributable cash flow of $45.7 million. Included in reported results for the first quarter are $0.7 million, or $0.01 per common unit, of non-cash unit-based compensation expense and continued environmental remediation costs associated with the East Coast Terminals.

"PBF Logistics operated well during the first quarter and delivered another strong financial quarter. We reduced our net leverage by an incremental $25 million 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 while continuing to improve the financial position of the Partnership."

As of March 31, 2022, the Partnership had approximately $474.8 million of liquidity, including approximately $53.3 million in cash and cash equivalents, and access to approximately $421.5 million under its revolving credit facility. Year-to-date, the outstanding balance of the revolving credit facility has been reduced by $25.0 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 May 26, 2022, to unitholders of record at the close of business on May 12, 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.

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, April 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, including 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 months ended March 31, 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

March 31,

2022



2021

Revenue:









Affiliate

$          75,985



$          75,933



Third-party

13,458



11,572

Total revenue

89,443



87,505









Costs and expenses:









Operating and maintenance expenses

29,415



25,048



General and administrative expenses

3,911



4,464



Depreciation and amortization

9,484



9,405



Change in contingent consideration

238



655

Total costs and expenses

43,048



39,572









Income from operations

46,395



47,933









Other expense:









Interest expense, net

(9,713)



(10,287)



Amortization of loan fees and debt premium

(418)



(429)



Accretion on discounted liabilities

(5)



(6)

Net income attributable to PBF Logistics LP unitholders

$          36,259



$          37,211









Net income per limited partner unit (f):









Common units - basic

$              0.58



$              0.59



Common units - diluted

0.58



0.59









Weighted-average limited partner units outstanding (f):









Common units - basic

62,896,848



62,646,664



Common units - diluted

63,020,348



62,780,594









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

March 31,





2022



2021

Transportation and Terminaling Segment











     Terminals











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





236,692



219,870

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





2,441,528



2,490,334

     Pipelines











          Total throughput (bpd) (a)(c)





171,344



153,463

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





1,201,276



1,033,760













Storage Segment











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





7,901,226



7,605,161

     Total throughput (bpd) (a)(c)





9,619



7,873









Cash Flow Information:









Net cash provided by (used in):











          Operating activities

$        67,322



$        54,822

          Investing activities

(1,433)



(1,254)

          Financing activities

(46,464)



(45,886)

               Net change in cash and cash equivalents





$        19,425



$          7,682









Other Financial Information:









EBITDA attributable to PBFX (b)

$        55,862



$        57,923



Adjusted EBITDA (b)

$        56,581



$        58,996



Distributable cash flow (b)

$        45,700



$        48,178



Quarterly distribution declared per unit (d)

$            0.30



$            0.30



Distributions (d):











Common

$        18,986



$        18,924







Total distributions

$        18,986



$        18,924







Coverage ratio (b)





2.40x



2.54x



Capital expenditures

$          1,433



$          1,254













See Footnotes to Earnings Release Tables

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

KEY OPERATING AND FINANCIAL INFORMATION (continued)

(Unaudited, in thousands)





March 31,



December 31,

Balance Sheet Information:



2022



2021



Cash and cash equivalents (e)

$             53,329



$             33,904



Property, plant and equipment, net

779,422



787,338



Total assets

902,950



901,297



Total debt (e)

597,962



622,544



Total liabilities

636,260



652,601



Partners' equity

266,690



248,696



Total liabilities and equity

902,950



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

March 31,

2022



2021

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









 Net income

$        36,259



$        37,211





Interest expense, net

9,713



10,287





Amortization of loan fees and debt premium

418



429





Accretion on discounted liabilities

5



6





Change in contingent consideration

238



655





Depreciation and amortization

9,484



9,405



 EBITDA

56,117



57,993





Less: Earnings attributable to the CPI earn-out

255



70



 EBITDA attributable to PBFX

55,862



57,923





Non-cash unit-based compensation expense

654



989





Cash interest

(9,756)



(10,346)





Maintenance capital expenditures attributable to PBFX

(1,060)



(388)



 Distributable cash flow

$        45,700



$        48,178









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









 Net cash provided by operating activities

$        67,322



$        54,822



Change in operating assets and liabilities

(20,264)



(6,127)





Interest expense, net

9,713



10,287





Non-cash unit-based compensation expense

(654)



(989)



 EBITDA

56,117



57,993





Less: Earnings attributable to the CPI earn-out

255



70



 EBITDA attributable to PBFX

55,862



57,923





Non-cash unit-based compensation expense

654



989





Cash interest

(9,756)



(10,346)





Maintenance capital expenditures attributable to PBFX

(1,060)



(388)



 Distributable cash flow

$        45,700



$        48,178









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

March 31,

2022



2021

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









 Net income

$        36,259



$        37,211





Interest expense, net

9,713



10,287





Amortization of loan fees and debt premium

418



429





Accretion on discounted liabilities

5



6





Change in contingent consideration

238



655





Depreciation and amortization

9,484



9,405



 EBITDA

56,117



57,993





Less: Earnings attributable to the CPI earn-out

255



70



 EBITDA attributable to PBFX

55,862



57,923





Non-cash unit-based compensation expense

654



989





East Coast Terminals environmental remediation costs

65



84



Adjusted EBITDA

$        56,581



$        58,996









See Footnotes to Earnings Release Tables

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

SEGMENT FINANCIAL INFORMATION

(Unaudited, in thousands)























Three Months Ended March 31, 2022





Transportation

and

Terminaling



Storage



Corporate



Consolidated

Total

Total revenue



$               70,248



$               19,195



$                      —



$               89,443

Depreciation and amortization



7,430



2,054



—



9,484

Income (loss) from operations



42,079



8,227



(3,911)



46,395

Other expense



—



—



10,136



10,136

Capital expenditures



1,302



131



—



1,433























Three Months Ended March 31, 2021





Transportation

and

Terminaling



Storage



Corporate



Consolidated

Total

Total revenue



$               71,477



$               16,028



$                      —



$               87,505

Depreciation and amortization



7,235



2,170



—



9,405

Income (loss) from operations



46,609



5,788



(4,464)



47,933

Other expense



—



—



10,722



10,722

Capital expenditures



1,055



199



—



1,254









































Balance at March 31, 2022





Transportation

and

Terminaling



Storage



Corporate



Consolidated

Total

Total assets



$             665,302



$             188,195



$               49,453



$             902,950























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 April 28, 2022, we announced a quarterly cash distribution of $0.30 per limited partner unit based on the results of the first quarter of 2022. The distribution is payable on May 26, 2022 to PBFX unitholders of record at the close of business on May 12, 2022. The total distribution amount includes the expected distributions to be made related to first 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 March 31, 2022 and December 31, 2021 was $544,633 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