PARSIPPANY, N.J., Aug. 1, 2019 /PRNewswire/ -- PBF Logistics
LP (NYSE: PBFX, the "Partnership") today announced second quarter
2019 net income attributable to the limited partners of
$22.2 million, or $0.37 per common unit. During the quarter, the
Partnership generated cash from operations of approximately
$17.7 million, earnings before
interest, income taxes, depreciation, and amortization ("EBITDA")
of $42.5 million, Adjusted EBITDA of
$48.3 million and distributable cash
flow of $34.1 million. Included in
reported results for the second quarter are $5.8 million, or $0.10 per common unit, of expenses related to the
Torrance Valley Pipeline Company acquisition, non-cash unit-based
compensation and environmental remediation costs associated with
the East Coast Terminals.
"During the second quarter, PBF Logistics' assets operated well
and we are currently seeing increased demand at several of our East
Coast terminaling and storage facilities. We successfully delivered
incremental growth through the completion of the TVPC acquisition
and remain committed to the Partnership's continued development by
executing our three-pronged growth strategy," said PBF Logistics GP
LLC Executive Vice President Matt
Lucey. "Additionally, with the anticipated early start to
our processing and storage agreement with Maersk, we are seeing the
initial moves by market participants in preparation for the IMO
fuel specification implementation on January
1, 2020."
As of June 30, 2019, the Partnership had approximately
$264.9 million of liquidity,
including approximately $20.0 million
in cash and cash equivalents, and access to approximately
$244.9 million under its revolving
credit facility.
Agreement for production and storage of 0.5% sulphur fuel on
the U.S. East Coast
On February 14,
2019, PBF Logistics announced an agreement with A.P. Moller
- Maersk ("Maersk") to source and PBFX to process crude oil at CPI
Operations LLC, a PBF Logistics LP terminal facility ("East Coast
Storage assets") in New Jersey,
United States. The processing and
storage arrangement is expected to commence on October 1, 2019, approximately two months earlier
than originally anticipated.
The agreement enables Maersk Oil Trading to supply IMO
2020-compliant 0.5% marine fuel to its customers on the US East
Coast. Annual production will be around 1.25 million metric tonnes
(mt), the equivalent of approximately 10% of A.P. Moller - Maersk's
annual fuel demand.
About the TVPC Transaction
On May 31, 2019, PBF Logistics completed the
previously announced transaction to acquire the remaining fifty
percent interest in Torrance Valley Pipeline Company LLC ("TVPC")
from an affiliate of PBF Energy Inc. (NYSE:PBF) for total
consideration of approximately $200.0
million, an eight times acquisition multiple.
The acquisition of TVPC by the Partnership immediately doubles
its position in one of its core assets and is immediately accretive
to distributable cash flow.
PBF Logistics Announces Increased Quarterly
Distribution
The board of directors of PBF Logistics GP LLC,
the Partnership's general partner, declared a regular quarterly
cash distribution of $0.5150 per
common unit. The distribution is payable on August 30, 2019, to unitholders of record at the
close of business on August 15,
2019.
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
PBFX Reconciliation of
Amounts under U.S. generally accepted accounting principles
("GAAP") to annualized run-rate EBITDA (unaudited, in millions)
Reconciliation of fifty percent TVPC acquired interest,
inclusive of the amendment to the M70 services agreement, estimated
annualized run-rate Net Income to annualized run-rate EBITDA:
|
|
TVPC
Acquisition
|
Annualized run-rate
net income
|
|
$
|
15.5
|
|
Add: Depreciation and
amortization expense
|
|
|
5.5
|
|
Add: Interest
expense, net and other financing costs
|
|
|
4.0
|
|
Annualized run-rate
EBITDA
|
|
$
|
25.0
|
|
Due to the forward-looking nature of annualized run-rate EBITDA,
information to reconcile annualized run-rate EBITDA to annualized
run-rate cash flow from operating activities is not available as
management is unable to project working capital changes for future
periods at this time.
Due to the forward-looking nature of forecasted and long-term,
consolidated run-rate EBITDA and distributable cash flow,
information to reconcile long-term, consolidated run-rate EBITDA,
distributable cash flow and coverage ratios to long-term,
consolidated run-rate net income and cash flow from operating
activities is not available as management is unable to project
financing terms and working capital changes for future periods at
this time.
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 and amortization expense. 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 and
amortization expense attributable to PBFX, which excludes results
of acquisitions from affiliates of PBF Energy prior to the
effective dates of such transactions. 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 GAAP.
EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and
distributable cash flow are non-GAAP supplemental financial
measures that management and external users of the Partnership's
condensed consolidated financial statements, such as industry
analysts, investors, lenders and rating agencies, may use to
assess:
- the Partnership's 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 the Partnership's assets to generate sufficient
cash flow to make distributions to the Partnership's
unitholders;
- the Partnership's 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.
The Partnership believes that the presentation of EBITDA, EBITDA
attributable to PBFX and Adjusted EBITDA provides useful
information to investors in assessing the Partnership's financial
condition and results of operations and assists in evaluating the
Partnership's ongoing operating performance for current and
comparative periods. The Partnership believes 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 provides investors with another
perspective of the operating performance of the Partnership's
assets and the cash the Partnership's business is generating.
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. Additionally, because EBITDA,
EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash
flow may be defined differently by other companies in the
Partnership's industry, the Partnership's definitions of such
measures may not be comparable to similarly titled measures of
other companies, thereby diminishing their utility.
Conference Call Information
The Partnership will host
a conference call and webcast regarding second quarter results and
other business matters on Thursday, August
1, 2019, 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 (866) 831-8713 or (203) 518-9822, conference ID:
PBFXQ219. The audio replay will be available two hours after the
end of the call through August 15,
2019, by dialing (800) 723-5782 or (402) 220-2663.
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 pending acquisitions, the
Partnership's plans for financing any pending acquisitions, 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 EBITDA, EBITDA
attributable to PBFX, Adjusted EBITDA and distributable cash flow
(all as defined below) of PBFX for the three and six months
ended June 30, 2019 and 2018. The financial
information presented contains the financial results of PBFX and
the Development Assets (as defined below) prior to the Development
Assets Acquisition (as defined below) on July 31, 2018.
On April 24, 2019, we entered into
a Contribution Agreement with PBF Energy Company LLC ("PBF LLC"),
pursuant to which PBF LLC contributed to us all of the issued and
outstanding limited liability company interests of TVP Holding
Company LLC ("TVP Holding"), which held the remaining 50% equity
interest in Torrance Valley Pipeline Company LLC ("TVPC"), for
total consideration of $200.0 million
(the "TVPC Acquisition"). Subsequent to the closing of the TVPC
Acquisition on May 31, 2019, we own
100% of the equity interest in TVPC, and we no longer record a
noncontrolling interest related to our ownership of TVPC.
On February 28, 2019, we closed on
an Equity Restructuring Agreement with PBF LLC and PBF Logistics
GP, our general partner, pursuant to which PBFX's incentive
distribution rights ("IDRs") held by PBF LLC were canceled and
converted into 10,000,000 newly issued PBFX common units (the "IDR
Restructuring"). Subsequent to the closing of the IDR
Restructuring, no distributions were made to PBF LLC with respect
to the IDRs, and the newly issued PBFX common units are entitled to
normal distributions.
On October 1, 2018, we acquired
Crown Point International LLC's wholly-owned subsidiary, CPI
Operations LLC (the "East Coast Storage Assets Acquisition"), whose
assets include a storage facility with approximately four million
barrels of multi-use storage capacity, an Aframax-capable marine
facility, a rail facility, a truck terminal, equipment, contracts
and certain other idled assets located on the Delaware River near
Paulsboro, New Jersey
(collectively, the "East Coast Storage Assets"). Additionally, the
East Coast Storage Assets Acquisition includes an earn-out
provision related to an existing commercial agreement with a third
party, based on the results of restarting certain of the acquired
idled assets, which are expected to be restarted in the fourth
quarter of 2019.
On July 31, 2018, we acquired from
PBF LLC, a subsidiary of PBF Energy Inc., all of the issued and
outstanding limited liability company interests of: Toledo Rail
Logistics Company LLC, whose assets consist of a loading and
unloading rail facility located at PBF Holding Company LLC's ("PBF
Holding") Toledo Refinery (the "Toledo Rail Products Facility");
Chalmette Logistics Company LLC, whose assets consist of a truck
loading rack facility (the "Chalmette Truck Rack") and a rail yard
facility (the "Chalmette Rosin Yard"), both of which are located at
PBF Holding's Chalmette Refinery; Paulsboro Terminaling Company
LLC, whose assets consist of a lube oil terminal facility located
at PBF Holding's Paulsboro Refinery (the "Paulsboro Lube Oil
Terminal"); and DCR Storage and Loading Company LLC, whose assets
consist of an ethanol storage facility located at PBF Holding's
Delaware City Refinery (the "Delaware Ethanol Storage Facility" and
collectively with the Toledo Rail Products Facility, the Chalmette
Truck Rack, the Chalmette Rosin Yard, and the Paulsboro Lube Oil
Terminal, the "Development Assets") (the "Development Assets
Acquisition"). In connection with the Development Assets
Acquisition, we entered into various commercial agreements with PBF
Holding and assumed an existing commercial agreement with a third
party.
On April 16, 2018, our
wholly-owned subsidiary, PBF Logistics Products Terminals LLC
("PLPT"), completed the purchase of two refined product terminals
located in Knoxville, Tennessee,
which include product tanks, pipeline connections to the Colonial
Pipeline Company and Plantation Pipe Line Company pipeline systems
and truck loading facilities (the "Knoxville Terminals") from
Cummins Terminals, Inc. (the "Knoxville Terminals Purchase").
The Development Assets Acquisition was a transfer between
entities under common control. Accordingly, PBFX's financial
information contained herein has been retrospectively adjusted to
include the historical results of the Development Assets as if they
were owned by the Partnership for all periods presented. The
results of the Development Assets are included in the
Transportation and Terminaling segment.
As a result of the factors above, the information included in
the following tables is not necessarily comparable on a
year-over-year basis.
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 and amortization expense. 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 and amortization expense
attributable to PBFX, which excludes the results of acquisitions
from PBF LLC prior to the effective dates of such transactions. 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,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenue
(a):
|
|
|
|
|
|
|
|
|
Affiliate
|
$
|
74,656
|
|
$
|
$
|
63,785
|
|
|
$
|
145,988
|
|
|
$
|
124,649
|
|
Third-party
|
8,094
|
|
|
4,314
|
|
|
15,607
|
|
|
8,190
|
Total
revenue
|
82,750
|
|
|
68,099
|
|
|
161,595
|
|
|
132,839
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Operating and
maintenance expenses (a)
|
28,553
|
|
|
20,724
|
|
|
58,469
|
|
|
40,604
|
|
General and
administrative expenses
|
7,580
|
|
|
6,488
|
|
|
13,590
|
|
|
10,779
|
|
Depreciation and
amortization
|
8,854
|
|
|
7,091
|
|
|
17,575
|
|
|
13,734
|
Total costs and
expenses
|
44,987
|
|
|
34,303
|
|
|
89,634
|
|
|
65,117
|
|
|
|
|
|
|
|
|
Income from
operations
|
37,763
|
|
|
33,796
|
|
|
71,961
|
|
|
67,722
|
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(11,216)
|
|
|
(10,029)
|
|
|
(22,129)
|
|
|
(19,614)
|
|
Amortization of loan
fees and debt premium
|
(446)
|
|
|
(396)
|
|
|
(895)
|
|
|
(759)
|
|
Accretion on
discounted liabilities
|
(773)
|
|
|
—
|
|
|
(1,533)
|
|
|
—
|
Net
income
|
25,328
|
|
|
23,371
|
|
|
47,404
|
|
|
47,349
|
|
Less: Net loss
attributable to Predecessor
|
—
|
|
|
(1,084)
|
|
|
—
|
|
|
(2,363)
|
|
Less: Net income
attributable to noncontrolling interest (g)
|
3,162
|
|
|
4,363
|
|
|
7,881
|
|
|
8,385
|
Net income
attributable to the partners
|
22,166
|
|
|
20,092
|
|
|
39,523
|
|
|
41,327
|
|
Less: Net income
attributable to the IDR holder (h)
|
—
|
|
|
3,415
|
|
|
—
|
|
|
6,370
|
Net income
attributable to PBF Logistics LP unitholders
|
$
|
22,166
|
|
|
$
|
16,677
|
|
|
$
|
39,523
|
|
|
$
|
34,957
|
|
|
|
|
|
|
|
|
Net income per
limited partner unit (i):
|
|
|
|
|
|
|
|
|
Common units -
basic
|
$
|
0.37
|
|
|
$
|
0.39
|
|
|
$
|
0.72
|
|
|
$
|
0.83
|
|
Common units -
diluted
|
0.37
|
|
|
0.39
|
|
|
0.72
|
|
|
0.83
|
|
|
|
|
|
|
|
|
Weighted-average
limited partner units outstanding (i):
|
|
|
|
|
|
|
|
|
Common units -
basic
|
60,279,287
|
|
|
42,231,119
|
|
|
54,748,755
|
|
|
42,176,202
|
|
Common units -
diluted
|
60,364,347
|
|
|
42,294,616
|
|
|
54,776,257
|
|
|
42,190,136
|
|
|
|
|
|
|
|
|
|
Cash distribution
declared per unit (e)
|
$
|
0.5150
|
|
|
$
|
0.4950
|
|
|
$
|
1.0250
|
|
|
$
|
0.9850
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (continued)
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2018
|
|
|
PBF
Logistics
|
|
Development
Assets*
|
|
Consolidated
Results
|
Revenue:
|
|
|
|
|
|
|
Affiliate
|
|
$
|
63,785
|
|
|
$
|
—
|
|
|
$
|
63,785
|
Third-party
|
|
3,613
|
|
|
701
|
|
|
4,314
|
Total
revenue
|
|
67,398
|
|
|
701
|
|
|
68,099
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
Operating and
maintenance expenses
|
|
19,111
|
|
|
1,613
|
|
|
20,724
|
General and
administrative expenses
|
|
6,488
|
|
|
—
|
|
|
6,488
|
Depreciation and
amortization
|
|
6,919
|
|
|
172
|
|
|
7,091
|
Total costs and
expenses
|
|
32,518
|
|
|
1,785
|
|
|
34,303
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
34,880
|
|
|
(1,084)
|
|
|
33,796
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
Interest expense,
net
|
|
(10,029)
|
|
|
—
|
|
|
(10,029)
|
Amortization of loan
fees and debt premium
|
|
(396)
|
|
|
—
|
|
|
(396)
|
Net income
(loss)
|
|
24,455
|
|
|
(1,084)
|
|
|
23,371
|
Less: Net loss
attributable to Predecessor
|
|
—
|
|
|
(1,084)
|
|
|
(1,084)
|
Less: Net income
attributable to noncontrolling interest (g)
|
|
4,363
|
|
|
—
|
|
|
4,363
|
Net income
attributable to the partners
|
|
20,092
|
|
|
—
|
|
|
20,092
|
Less: Net income
attributable to the IDR holder
|
|
3,415
|
|
|
—
|
|
|
3,415
|
Net income
attributable to PBF Logistics LP unitholders
|
|
$
|
16,677
|
|
|
$
|
—
|
|
|
$
|
16,677
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
*Reflects the results of the Development Assets prior to our
acquisition on July 31, 2018.
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (continued)
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2018
|
|
|
PBF
Logistics
|
|
Development
Assets*
|
|
Consolidated
Results
|
Revenue:
|
|
|
|
|
|
|
Affiliate
|
|
$
|
124,649
|
|
|
$
|
—
|
|
|
$
|
124,649
|
Third-party
|
|
6,788
|
|
|
1,402
|
|
|
8,190
|
Total
revenue
|
|
131,437
|
|
|
1,402
|
|
|
132,839
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
Operating and
maintenance expenses
|
|
37,159
|
|
|
3,445
|
|
|
40,604
|
General and
administrative expenses
|
|
10,779
|
|
|
—
|
|
|
10,779
|
Depreciation and
amortization
|
|
13,414
|
|
|
320
|
|
|
13,734
|
Total costs and
expenses
|
|
61,352
|
|
|
3,765
|
|
|
65,117
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
70,085
|
|
|
(2,363)
|
|
|
67,722
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
Interest expense,
net
|
|
(19,614)
|
|
|
—
|
|
|
(19,614)
|
Amortization of loan
fees and debt premium
|
|
(759)
|
|
|
—
|
|
|
(759)
|
Net income
(loss)
|
|
49,712
|
|
|
(2,363)
|
|
|
47,349
|
Less: Net loss
attributable to Predecessor
|
|
—
|
|
|
(2,363)
|
|
|
(2,363)
|
Less: Net income
attributable to noncontrolling interest (g)
|
|
8,385
|
|
|
—
|
|
|
8,385
|
Net income
attributable to the partners
|
|
41,327
|
|
|
—
|
|
|
41,327
|
Less: Net income
attributable to the IDR holder
|
|
6,370
|
|
|
—
|
|
|
6,370
|
Net income
attributable to PBF Logistics LP unitholders
|
|
$
|
34,957
|
|
|
$
|
—
|
|
|
$
|
34,957
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
*Reflects the results of the Development Assets prior to our
acquisition on July 31, 2018.
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
KEY OPERATING AND
FINANCIAL INFORMATION
|
(Unaudited,
amounts in thousands except as indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Transportation and
Terminaling Segment
|
|
|
|
|
|
|
|
|
|
Terminals
|
|
|
|
|
|
|
|
|
|
Total throughput
(barrels per day ("bpd")) (b)(d)
|
|
|
275,076
|
|
|
268,430
|
|
|
262,772
|
|
|
255,973
|
Lease tank capacity
(average lease capacity barrels per
month)
|
|
|
2,185,882
|
|
|
1,589,784
|
|
|
2,300,813
|
|
|
1,869,693
|
Pipelines
|
|
|
|
|
|
|
|
|
|
Total throughput
(bpd) (b)(d)
|
|
|
161,809
|
|
|
166,900
|
|
|
154,520
|
|
|
159,868
|
Lease tank capacity
(average lease capacity barrels per
month)
|
|
|
1,500,714
|
|
|
1,574,740
|
|
|
1,338,769
|
|
|
1,555,930
|
|
|
|
|
|
|
|
|
|
|
Storage
Segment
|
|
|
|
|
|
|
|
|
|
Storage capacity
reserved (average shell capacity
barrels per month)
|
|
|
8,053,983
|
|
|
4,412,673
|
|
|
7,993,338
|
|
|
4,445,714
|
|
|
|
|
|
|
|
|
Cash Flow
Information:
|
|
|
|
|
|
|
|
Net cash provided by
(used in):
|
|
|
|
|
|
|
|
Operating activities
|
$
|
17,677
|
|
|
$
|
22,402
|
|
|
$
|
55,886
|
|
|
$
|
65,327
|
Investing activities
|
(3,932)
|
|
|
(61,718)
|
|
|
(15,152)
|
|
|
(65,671)
|
Financing activities
|
(10,191)
|
|
|
36,988
|
|
|
(40,642)
|
|
|
361
|
Net change in
cash
|
|
|
$
|
3,554
|
|
|
$
|
(2,328)
|
|
|
$
|
92
|
|
|
$
|
17
|
|
|
|
|
|
|
|
|
Other Financial
Information:
|
|
|
|
|
|
|
|
EBITDA
attributable to PBFX (c)
|
$
|
42,534
|
|
|
$
|
36,070
|
|
|
$
|
79,356
|
|
|
$
|
72,387
|
Adjusted
EBITDA (c)
|
$
|
48,336
|
|
|
$
|
39,402
|
|
|
$
|
91,293
|
|
|
$
|
77,036
|
Distributable
cash flow (c)
|
$
|
34,123
|
|
|
$
|
28,100
|
|
|
$
|
59,536
|
|
|
$
|
54,346
|
Quarterly
distribution declared per unit (e)
|
$
|
0.5150
|
|
|
$
|
0.4950
|
|
|
$
|
1.0250
|
|
|
$
|
0.9850
|
Distributions
(e):
|
|
|
|
|
|
|
|
Common units
|
$
|
32,398
|
|
|
$
|
22,800
|
|
|
$
|
64,481
|
|
|
$
|
43,770
|
IDR holder - PBF LLC
(h)
|
—
|
|
|
3,415
|
|
|
—
|
|
|
6,370
|
Total
distributions
|
$
|
32,398
|
|
|
$
|
26,215
|
|
|
$
|
64,481
|
|
|
$
|
50,140
|
Coverage
ratio (c)
|
|
|
1.05x
|
|
1.07x
|
|
0.92x
|
|
1.08x
|
Capital expenditures,
including the Knoxville Terminals
Purchase
|
|
$
|
3,932
|
|
|
$
|
61,718
|
|
|
$
|
15,152
|
|
|
$
|
65,671
|
|
|
|
|
|
|
|
|
|
|
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:
|
|
2019
|
|
2018
|
Cash and
cash equivalents (f)
|
$
|
20,000
|
|
$
|
19,908
|
Property, plant and equipment, net
|
855,958
|
|
862,117
|
Total
assets
|
959,573
|
|
956,353
|
Total
debt (f)
|
769,219
|
|
673,324
|
Total
liabilities
|
852,579
|
|
763,163
|
Partners' equity
|
106,994
|
|
23,718
|
Noncontrolling interest (g)
|
—
|
|
169,472
|
Total
liabilities and equity
|
959,573
|
|
956,353
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
|
|
|
|
|
|
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
TO EBITDA AND
DISTRIBUTABLE CASH FLOW
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Reconciliation of
net income to EBITDA and
distributable cash flow (c):
|
|
|
|
|
|
|
|
Net
Income
|
$
|
25,328
|
|
|
$
|
23,371
|
|
|
$
|
47,404
|
|
|
$
|
47,349
|
Interest expense,
net
|
11,216
|
|
|
10,029
|
|
|
22,129
|
|
|
19,614
|
Amortization of loan fees
and debt premium
|
446
|
|
|
396
|
|
|
895
|
|
|
759
|
Accretion on discounted
liabilities
|
773
|
|
|
—
|
|
|
1,533
|
|
|
—
|
Depreciation and
amortization
|
8,854
|
|
|
7,091
|
|
|
17,575
|
|
|
13,734
|
EBITDA
|
46,617
|
|
|
40,887
|
|
|
89,536
|
|
|
81,456
|
Less: Predecessor
EBITDA
|
—
|
|
|
(912)
|
|
|
—
|
|
|
(2,043)
|
Less: Noncontrolling
interest EBITDA (g)
|
4,083
|
|
|
5,729
|
|
|
10,180
|
|
|
11,112
|
EBITDA
attributable to
PBFX
|
42,534
|
|
|
36,070
|
|
|
79,356
|
|
|
72,387
|
Non-cash unit-based
compensation expense
|
3,387
|
|
|
2,663
|
|
|
4,351
|
|
|
3,497
|
Cash interest
|
(11,290)
|
|
|
(10,049)
|
|
|
(22,426)
|
|
|
(19,629)
|
Maintenance capital
expenditures attributable to PBFX
|
(508)
|
|
|
(584)
|
|
|
(1,745)
|
|
|
(1,909)
|
Distributable cash flow
|
$
|
34,123
|
|
|
$
|
28,100
|
|
|
$
|
59,536
|
|
|
$
|
54,346
|
|
|
|
|
|
|
|
|
Reconciliation of
net cash provided by operating activities
to EBITDA and distributable cash flow (c):
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities
|
$
|
17,677
|
|
|
$
|
22,402
|
|
|
$
|
55,886
|
|
|
$
|
65,327
|
|
Change in operating
assets and liabilities
|
21,111
|
|
|
11,119
|
|
|
15,872
|
|
|
12
|
|
|
Interest expense,
net
|
11,216
|
|
|
10,029
|
|
|
22,129
|
|
|
19,614
|
|
|
Non-cash unit-based
compensation expense
|
(3,387)
|
|
|
(2,663)
|
|
|
(4,351)
|
|
|
(3,497)
|
|
EBITDA
|
46,617
|
|
|
40,887
|
|
|
89,536
|
|
|
81,456
|
|
|
Less: Predecessor
EBITDA
|
—
|
|
|
(912)
|
|
|
—
|
|
|
(2,043)
|
|
|
Less: Noncontrolling
interest EBITDA (g)
|
4,083
|
|
|
5,729
|
|
|
10,180
|
|
|
11,112
|
|
EBITDA
attributable to PBFX
|
42,534
|
|
|
36,070
|
|
|
79,356
|
|
|
72,387
|
|
|
Non-cash unit-based
compensation expense
|
3,387
|
|
|
2,663
|
|
|
4,351
|
|
|
3,497
|
|
|
Cash
interest
|
(11,290)
|
|
|
(10,049)
|
|
|
(22,426)
|
|
|
(19,629)
|
|
|
Maintenance capital
expenditures attributable to PBFX
|
(508)
|
|
|
(584)
|
|
|
(1,745)
|
|
|
(1,909)
|
|
Distributable cash flow
|
$
|
34,123
|
|
|
$
|
28,100
|
|
|
$
|
59,536
|
|
|
$
|
54,346
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
RECONCILIATION OF
AMOUNTS REPORTED UNDER U.S. GAAP
|
TO ADJUSTED
EBITDA
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Reconciliation of
net income to EBITDA and Adjusted
EBITDA (c):
|
|
|
|
|
|
|
|
Net
income
|
$
|
25,328
|
|
|
$
|
23,371
|
|
|
$
|
47,404
|
|
|
$
|
47,349
|
Interest expense,
net
|
11,216
|
|
|
10,029
|
|
|
22,129
|
|
|
19,614
|
Amortization of loan fees
and debt premium
|
446
|
|
|
396
|
|
|
895
|
|
|
759
|
Accretion on discounted
liabilities
|
773
|
|
|
—
|
|
|
1,533
|
|
|
—
|
Depreciation and
amortization
|
8,854
|
|
|
7,091
|
|
|
17,575
|
|
|
13,734
|
EBITDA
|
46,617
|
|
|
40,887
|
|
|
89,536
|
|
|
81,456
|
Less: Predecessor
EBITDA
|
—
|
|
|
(912)
|
|
|
—
|
|
|
(2,043)
|
Less: Noncontrolling
interest EBITDA (g)
|
4,083
|
|
|
5,729
|
|
|
10,180
|
|
|
11,112
|
EBITDA attributable to PBFX
|
42,534
|
|
|
36,070
|
|
|
79,356
|
|
|
72,387
|
Acquisition and transaction
costs
|
955
|
|
|
669
|
|
|
3,108
|
|
|
1,152
|
Non-cash unit-based
compensation expense
|
3,387
|
|
|
2,663
|
|
|
4,351
|
|
|
3,497
|
East Coast Terminals
environmental remediation costs
|
1,460
|
|
|
—
|
|
|
3,596
|
|
|
—
|
PNGPC tariff true-up
adjustments
|
—
|
|
|
—
|
|
|
882
|
|
|
—
|
Adjusted EBITDA
|
$
|
48,336
|
|
|
$
|
39,402
|
|
|
$
|
91,293
|
|
|
$
|
77,036
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
SEGMENT FINANCIAL
INFORMATION
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2019
|
|
|
Transportation
and
Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total revenue
(a)
|
|
$
|
69,656
|
|
|
$
|
13,094
|
|
|
$
|
—
|
|
|
$
|
82,750
|
Depreciation and
amortization
|
|
6,879
|
|
|
1,975
|
|
|
—
|
|
|
8,854
|
Income (loss) from
operations
|
|
40,529
|
|
|
4,814
|
|
|
(7,580)
|
|
|
37,763
|
Interest expense,
net, amortization of loan
fees and debt premium and accretion on
discounted liabilities
|
|
—
|
|
|
—
|
|
|
12,435
|
|
|
12,435
|
Capital
expenditures
|
|
1,689
|
|
|
2,243
|
|
|
—
|
|
|
3,932
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2018
|
|
|
Transportation
and
Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total revenue
(a)
|
|
$
|
61,133
|
|
|
$
|
6,966
|
|
|
$
|
—
|
|
|
$
|
68,099
|
Depreciation and
amortization
|
|
6,166
|
|
|
925
|
|
|
—
|
|
|
7,091
|
Income (loss) from
operations
|
|
36,234
|
|
|
4,050
|
|
|
(6,488)
|
|
|
33,796
|
Interest expense,
net and amortization of loan fees and debt premium
|
|
—
|
|
|
—
|
|
|
10,425
|
|
|
10,425
|
Capital
expenditures, including the Knoxville Terminals
Purchase
|
|
61,716
|
|
|
2
|
|
|
—
|
|
|
61,718
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2019
|
|
|
Transportation
and
Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total revenue
(a)
|
|
$
|
135,615
|
|
|
$
|
25,980
|
|
|
$
|
—
|
|
|
$
|
161,595
|
Depreciation and
amortization
|
|
13,780
|
|
|
3,795
|
|
|
—
|
|
|
17,575
|
Income (loss) from
operations
|
|
77,080
|
|
|
8,471
|
|
|
(13,590)
|
|
|
71,961
|
Interest expense,
net, amortization of loan fees and debt premium and accretion on
discounted liabilities
|
|
—
|
|
|
—
|
|
|
24,557
|
|
|
24,557
|
Capital
expenditures
|
|
12,233
|
|
|
2,919
|
|
|
—
|
|
|
15,152
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2018
|
|
|
Transportation
and
Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total revenue
(a)
|
|
$
|
118,804
|
|
|
$
|
14,035
|
|
|
$
|
—
|
|
|
$
|
132,839
|
Depreciation and
amortization
|
|
11,884
|
|
|
1,850
|
|
|
—
|
|
|
13,734
|
Income (loss) from
operations
|
|
70,460
|
|
|
8,041
|
|
|
(10,779)
|
|
|
67,722
|
Interest expense,
net and amortization of loan fees and debt premium
|
|
—
|
|
|
—
|
|
|
20,373
|
|
|
20,373
|
Capital
expenditures, including the Knoxville Terminals
Purchase
|
|
65,583
|
|
|
88
|
|
|
—
|
|
|
65,671
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
SEGMENT FINANCIAL
INFORMATION (continued)
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Balance at June
30, 2019
|
|
|
Transportation
and
Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total
assets
|
|
$
|
730,250
|
|
|
$
|
220,030
|
|
|
$
|
9,293
|
|
|
$
|
959,573
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31, 2018
|
|
|
Transportation
and
Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total
assets
|
|
$
|
731,505
|
|
|
$
|
219,326
|
|
|
$
|
5,522
|
|
|
$
|
956,353
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
FOOTNOTES TO
EARNINGS RELEASE TABLES
|
(Unaudited, in
thousands, except per unit data)
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
See discussion of the
factors affecting comparability noted on page 5. Our results of
operations may not be comparable to
the historical results of operations for the reasons described
below:
.
Revenue - On May 1, 2019, we closed the TVPC Acquisition in which
we acquired the remaining 50% equity interest in
TVPC. As such, we now own 100% of the equity interest in TVPC and
no longer record a noncontrolling interest related to
our ownership of
TVPC.
.
On October 1, 2018, we closed the East Coast Storage Assets
Acquisition, which was accounted for as a business
combination. As such, there was no revenue associated with the East
Coast Storage Assets prior to our acquisition.
On July 31, 2018, we closed the Development Assets Acquisition with
PBF LLC. Commercial agreements with PBF
Holding for the Development Assets commenced subsequent to our
acquisition, with the exception of an existing
commercial agreement associated with the Paulsboro Lube Oil
Terminal.
.
On April 16, 2018, our wholly-owned subsidiary, PLPT, closed the
Knoxville Terminals Purchase, which was accounted for
as a business combination. As such, there was no revenue associated
with the Knoxville Terminals prior to our acquisition.
Operating and maintenance expenses - As a result of our
acquisitions and the completion of certain organic growth
projects,
our operating expenses are not comparative to prior periods due to
expenses associated with these assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
Calculated as the sum
of the average throughput per day for each asset group for the
period presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
See "Non-GAAP
Financial Measures" on page 6 for definitions of EBITDA, EBITDA
attributable to PBFX, Adjusted
EBITDA, distributable cash flow and coverage ratio.
|
|
|
|
|
|
|
|
|
|
|
|
|
(d)
|
|
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.
|
|
|
|
(e)
|
|
On August 1, 2019, we
announced a quarterly cash distribution of $0.5150 per limited
partner unit based on the results of the
second quarter of 2019. The distribution is payable on August 30,
2019 to PBFX unitholders of record at the close of
business on August 15, 2019. The total distribution amounts include
the expected distributions to be made related to second
quarter earnings.
|
|
|
|
(f)
|
|
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, 2019
and December 31, 2018 was $749,219 and $653,416,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
(g)
|
|
Prior to the TVPC
Acquisition, our wholly-owned subsidiary, PBFX Operating Company
LLC ("PBFX Op Co"), held a 50%
controlling interest in TVPC, with the other 50% equity interest in
TVPC owned by TVP Holding, a subsidiary of PBF
Holding. PBFX Op Co was the sole managing member of TVPC. We,
through our ownership of PBFX Op Co, consolidated
the financial results of TVPC and recorded a noncontrolling
interest for the economic interest in TVPC held by TVP
Holding. Noncontrolling interest on the condensed consolidated
statements of operations included the portion of net income
or loss attributable to the economic interest in TVPC held by TVP
Holding. Noncontrolling interest on the condensed
consolidated balance sheets included the portion of net assets of
TVPC attributable to TVP
Holding.
.
Subsequent to the TVPC Acquisition, we own 100% of the equity
interest in TVPC and no longer record a noncontrolling
interest related to TVPC.
|
|
|
|
|
|
|
|
|
|
|
|
|
(h)
|
|
Subsequent to the
closing of the IDR Restructuring, the IDRs were canceled and
exchanged for 10,000,000 newly issued
PBFX common units. No distributions were made to PBF LLC with
respect to the IDRs for the three or six months ended
June 30, 2019, and the newly issued PBFX common units are entitled
to normal distributions.
|
|
|
|
(i)
|
|
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 and
IDR holders (prior to the IDR Restructuring) for that reporting
period.
|
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SOURCE PBF Logistics LP