PARSIPPANY, N.J., Feb. 15, 2018 /PRNewswire/ -- PBF Logistics
LP (NYSE: PBFX, the "Partnership") announced today fourth quarter
2017 net income attributable to the partners of $23.6 million, or $0.50 per common unit (net of IDRs). During the
fourth quarter, the Partnership generated cash from operations of
approximately $21.5 million, earnings
before interest, income taxes, depreciation, and amortization
(EBITDA) of $39.2 million and
distributable cash flow of $28.5
million. Included in our depreciation and amortization
expense for the fourth quarter is approximately $1.5 million, or $0.04 per common unit, of additional depreciation
related to the capitalization of our 2017 growth projects. Included
in our interest expense for the fourth quarter is approximately
$2.0 million, or $0.05 per common unit, of additional interest
related to our October $175.0 million
bond offering.
For the year-ended December 31,
2017, the Partnership reported net income attributable to
the partners of $100.4 million, or
$2.17 per common unit (net of IDRs),
and $152.1 million of EBITDA.
As of December 31, 2017, the Partnership had liquidity of
$346.4 million, including
$19.7 million in cash and cash
equivalents and $326.7 million of
capacity under its existing revolving credit facility.
"We are pleased to announce our multi-year organic growth plan
in conjunction with our solid fourth quarter results. We have
developed a robust pipeline of projects which we will implement
over the next several years. We fully expect our organic growth to
be augmented by third-party transactions and further drop-down
acquisitions from our supportive sponsor," said PBF Logistics GP
LLC Chief Executive Officer, Tom
Nimbley. "To aid in the continued development of the
Partnership, we believe that a disciplined and measured
distribution growth strategy will, importantly, continue to reward
unit-holders while simultaneously increasing distribution coverage
and internally fund our growth," concluded Mr. Nimbley.
PBF Logistics Announces Multi-year Growth Initiative
The Partnership announces today a four-year organic growth plan
comprised of more than $100 million
of EBITDA to be contributed by a number of projects across the
terminaling, storage and pipeline segments. The projects will focus
on providing PBF Energy's refineries with access to crude oil
and feedstocks and increasing product distribution channels. We
expect these strategic projects to be supported by long-term
commitments from our sponsor and other third-parties. Additionally,
we expect to augment the organic growth of the Partnership through
third-party acquisitions and further drop-down transactions with
our sponsor.
PBF Logistics Announces Quarterly Distribution
The
Board of Directors of PBF Logistics GP LLC, the Partnership's
general partner, declared a regular quarterly cash distribution of
$0.4850 per unit. The distribution is
payable on March 14, 2018, to
unitholders of record at the close of business on February 28, 2018.
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, income tax
expense, depreciation and amortization expense. EBITDA is a
non-GAAP (U.S. Generally Accepted Accounting Principles)
supplemental financial measure that management and external users
of our 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 financing methods;
- the ability of our assets to generate sufficient cash flow to
make distributions to our unit holders;
- our ability to incur and service debt and fund capital
expenditures; and
- the viability of acquisitions and other capital expenditure
projects and the returns on investment of various investment
opportunities.
The Partnership's management believes that the presentation of
EBITDA provides useful information to investors in assessing our
financial condition and results of operations. EBITDA should not be
considered an alternative to net income, operating income, cash
from operations or any other measure of financial performance or
liquidity presented in accordance with GAAP. EBITDA has important
limitations as an analytical tool because it excludes some but not
all items that affect net income. Additionally, because EBITDA may
be defined differently by other companies in our industry, our
definition of EBITDA may not be comparable to similarly titled
measures of other companies, thereby diminishing its utility.
(1) Due to the forward-looking nature of forecasted EBITDA,
information to reconcile forecasted EBITDA to forecasted earnings
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.
Furthermore, this earnings release, and the discussion during
the management conference call, may include references to non-GAAP
financial measures including, but not limited to, EBITDA, EBITDA
attributable to PBFX and Distributable Cash Flow. PBFX's management
believes that non-GAAP financial measures provide useful
information about the Partnership's operating performance,
financial results and the amount of cash generated by the
Partnership's operations and the amount available for distribution
to its unitholders. However, these measures have important
limitations as analytical tools and should not be viewed in
isolation or considered as alternatives for, or superior to,
comparable GAAP financial measures. PBFX's non-GAAP financial
measures may also differ from similarly named measures used by
other companies. See the accompanying tables and footnotes in this
release for additional information on the non-GAAP financial
measures used in this release and reconciliations to the most
directly comparable GAAP measures.
Conference Call Information
The Partnership's senior
management will host a conference call and webcast regarding
earnings results and other business matters on Thursday, February 15, 2018, at 11:00 a.m. ET. The call can also be heard by
dialing (866) 342-8591 or (203) 518-9822, conference ID: PBFXQ417.
The audio replay will be available two hours after the end of the
call through March 1, 2018, by
dialing (800) 283-7928 or (402) 220-0866. The call is being webcast
and can be accessed at PBF Logistics' website,
http://www.pbflogistics.com.
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 and other risks
inherent in PBFX's business including but not limited to ability to
consummate pending acquisitions, the timing for the closing of any
such acquisition and our plans for financing any acquisition;
unforeseen liabilities associated with any pending acquisition;
inability to successfully integrate acquired assets or other
acquired businesses or operations; effects of existing and future
laws and governmental regulations, including environmental, health
and safety regulations; and various other factors. 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. Forward-looking statements
reflect information, facts and circumstances only as of the date
they are made. PBFX 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 and distributable
cash flows (both as defined below) of PBFX for the three months and
years ended December 31, 2017 and 2016. The financial
information presented contains the financial results of PBFX, PNGPC
(as defined below) prior to our acquisition on February 28, 2017 and the Torrance Valley
Pipeline (as defined below) prior to our acquisition on
August 31, 2016.
On April 17, 2017, our
wholly-owned subsidiary, PBF Logistics Products Terminals LLC
("PLPT"), acquired the Toledo,
Ohio refined products terminal assets (the "Toledo Products
Terminal") from Sunoco Logistics Partners L.P. (the "Toledo
Products Terminal Acquisition"). The Toledo Products Terminal is
directly connected to, and currently supplied by, PBF Holding
Company LLC's ("PBF Holding") Toledo Refinery. The Toledo Products
Terminal is comprised of a ten-bay truck rack and over 110,000
barrels of chemicals, clean product and additive storage
capacity.
On February 28, 2017, our
wholly-owned subsidiary, PBFX Operating Company LP ("PBFX Op Co"),
acquired from PBF Energy Company LLC ("PBF LLC"), a subsidiary of
PBF Energy Inc. ("PBF Energy"), all of the issued and outstanding
limited liability company interests of Paulsboro Natural Gas
Pipeline Company LLC ("PNGPC") (the "PNGPC Acquisition"). PNGPC
owns and operates an existing interstate natural gas pipeline. In
connection with the PNGPC Acquisition, we constructed a new 24"
pipeline to replace the existing pipeline, which commenced services
in August 2017 (the "Paulsboro
Natural Gas Pipeline"). Concurrent with commencement of operations
of the Paulsboro Natural Gas Pipeline, a new service agreement was
entered into between PNGPC and Paulsboro Refining Company LLC
("PRC").
The PNGPC Acquisition was a transfer of assets between entities
under common control. Accordingly, PBFX's financial information
contained herein has been retrospectively adjusted to include the
historical results of PNGPC for all periods presented. The results
of PNGPC are included in our Transportation and Terminaling
segment.
On February 15, 2017, PBF Holding
and PBFX Op Co entered into a ten-year storage services agreement
(the "Chalmette Storage Agreement") under which we, through PBFX Op
Co, began providing storage services to PBF Holding, commencing on
November 1, 2017, upon the completion
of the construction of a new crude tank with a shell capacity of
625,000 barrels at PBF Holding's Chalmette Refinery (the "Chalmette
Storage Tank"). PBFX Op Co and Chalmette Refining, L.L.C.
("Chalmette Refining") entered into a twenty-year lease for the
premises upon which the tank is located (the "Lease") and a project
management agreement pursuant to which Chalmette Refining managed
the construction of the tank. The Lease can be extended by PBFX Op
Co for two additional ten-year periods. Under the Chalmette Storage
Agreement, we provide PBF Holding with storage services in
return for storage fees. The storage services require us to accept,
redeliver and store all products tendered by PBF Holding in the
tank and PBF Holding pays a monthly fee of $0.60 per barrel of shell capacity. The Chalmette
Storage Agreement can be extended by PBF Holding for two additional
five-year periods.
On August 31, 2016, our
wholly-owned subsidiary, PBFX Op Co, acquired a 50% equity interest
in Torrance Valley Pipeline Company LLC ("TVPC") from PBF LLC (the
"TVPC Acquisition"), with the other 50% equity interest continuing
to be held by a subsidiary of PBF LLC, TVP Holding Company LLC
("TVP Holding"). TVPC owns the 189-mile San Joaquin Valley pipeline system (the
"Torrance Valley Pipeline") with capacity of approximately 110,000
barrels per day ("bpd"), which supports PBF Holding's Torrance
Refinery. The Torrance Valley Pipeline consists of the M55, M1 and
M70 pipeline systems, including 11 pipeline stations with storage
capacity and truck unloading capability at two of the stations. We
consolidate the financial results of TVPC, and record a
noncontrolling interest for the 50% economic interest in TVPC held
by TVP Holding.
On April 29, 2016, our
wholly-owned subsidiary, PLPT, purchased four refined product
terminals (the "East Coast Terminals") from an affiliate of Plains
All American Pipeline, L.P. (the "Plains Asset Purchase"). The East
Coast Terminals have subsequently generated third-party revenues.
Prior to the Plains Asset Purchase, we did not record third-party
revenue for the periods presented.
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 interest expense,
income tax expense, depreciation and amortization expense. We
define EBITDA attributable to PBFX as net income (loss)
attributable to PBFX before net interest expense, 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
distributable cash flow as EBITDA attributable to PBFX plus
non-cash unit-based compensation expense, less net cash paid for
interest, maintenance capital expenditures 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 distributable
cash flow divided by total distribution declared. EBITDA, EBITDA
attributable to PBFX and distributable cash flow are not financial
measures prescribed by U.S. generally accepted accounting
principles ("GAAP").
While EBITDA, EBITDA attributable to PBFX and distributable cash
flow are not financial measures prescribed by GAAP ("non-GAAP"),
they are supplemental financial measures that management and
external users of our 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 returns on investment of various investment
opportunities.
We believe that the presentation of EBITDA and EBITDA
attributable to PBFX provides useful information to investors in
assessing our financial condition and results of operations. 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, as it provides investors with an enhanced perspective
of the operating performance of our assets and the cash our
business is generating. However, EBITDA, EBITDA attributable to
PBFX and distributable cash flow should not be considered
alternatives to net income, operating income, cash from operations
or any other measure of financial performance or liquidity
presented in accordance with GAAP.
EBITDA, EBITDA attributable to PBFX 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 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
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited, in
thousands, except unit and per unit data)
|
|
|
|
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Revenue
(a):
|
|
|
|
|
|
|
|
|
Affiliate
|
$
|
63,738
|
|
|
$
|
57,092
|
|
|
$
|
240,654
|
|
|
$
|
175,448
|
|
|
Third-party
|
2,775
|
|
|
4,602
|
|
|
14,159
|
|
|
11,887
|
|
Total
revenue
|
66,513
|
|
|
61,694
|
|
|
254,813
|
|
|
187,335
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Operating and
maintenance expenses (a)
|
19,280
|
|
|
17,678
|
|
|
66,483
|
|
|
44,563
|
|
|
General and
administrative expenses
|
3,337
|
|
|
3,071
|
|
|
16,284
|
|
|
16,967
|
|
|
Depreciation and
amortization
|
7,159
|
|
|
5,440
|
|
|
23,831
|
|
|
14,983
|
|
Total costs and
expenses
|
29,776
|
|
|
26,189
|
|
|
106,598
|
|
|
76,513
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
36,737
|
|
|
35,505
|
|
|
148,215
|
|
|
110,822
|
|
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
(9,382)
|
|
|
(7,457)
|
|
|
(31,875)
|
|
|
(28,755)
|
|
|
Amortization of loan
fees and debt premium
|
(363)
|
|
|
(417)
|
|
|
(1,488)
|
|
|
(1,678)
|
|
Net
income
|
26,992
|
|
|
27,631
|
|
|
114,852
|
|
|
80,389
|
|
|
Less: Net loss
attributable to Predecessor
|
—
|
|
|
(1,165)
|
|
|
(150)
|
|
|
(6,250)
|
|
|
Less: Net income
attributable to noncontrolling interest (g)
|
3,347
|
|
|
4,058
|
|
|
14,565
|
|
|
5,679
|
|
Net income
attributable to the partners
|
23,645
|
|
|
24,738
|
|
|
100,437
|
|
|
80,960
|
|
|
Less: Net income
attributable to the IDR holder
|
2,736
|
|
|
1,266
|
|
|
9,055
|
|
|
4,031
|
|
Net income
attributable to PBF Logistics LP unitholders
|
$
|
20,909
|
|
|
$
|
23,472
|
|
|
$
|
91,382
|
|
|
$
|
76,929
|
|
|
|
|
|
|
|
|
|
Net income per
limited partner unit (h):
|
|
|
|
|
|
|
|
|
Common units -
basic
|
$
|
0.50
|
|
|
$
|
0.57
|
|
|
$
|
2.17
|
|
|
$
|
2.01
|
|
|
Common units -
diluted
|
0.50
|
|
|
0.57
|
|
|
2.17
|
|
|
2.01
|
|
|
Subordinated units -
basic and diluted
|
—
|
|
|
0.57
|
|
|
2.15
|
|
|
2.01
|
|
|
|
|
|
|
|
|
|
Weighted-average
limited partner units outstanding (h):
|
|
|
|
|
|
|
|
|
Common units -
basic
|
42,123,770
|
|
|
25,843,839
|
|
|
35,505,446
|
|
|
22,288,118
|
|
|
Common units -
diluted
|
42,185,666
|
|
|
25,993,145
|
|
|
35,568,760
|
|
|
22,338,784
|
|
|
Subordinated units -
basic and diluted
|
—
|
|
|
15,886,553
|
|
|
6,572,245
|
|
|
15,886,553
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited, in
thousands)
|
|
|
|
|
|
Year ended
December 31, 2017
|
|
|
PBF
Logistics LP
|
|
PNGPC
(1)
|
|
Consolidated
Results
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
Affiliate
|
|
$
|
240,654
|
|
|
$
|
—
|
|
|
$
|
240,654
|
|
Third-party
|
|
14,159
|
|
|
—
|
|
|
14,159
|
|
Total
revenue
|
|
254,813
|
|
|
—
|
|
|
254,813
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
Operating and
maintenance expenses
|
|
66,443
|
|
|
40
|
|
|
66,483
|
|
General and
administrative expenses
|
|
16,284
|
|
|
—
|
|
|
16,284
|
|
Depreciation and
amortization
|
|
23,721
|
|
|
110
|
|
|
23,831
|
|
Total costs and
expenses
|
|
106,448
|
|
|
150
|
|
|
106,598
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
148,365
|
|
|
(150)
|
|
|
148,215
|
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
Interest expense,
net
|
|
(31,875)
|
|
|
—
|
|
|
(31,875)
|
|
Amortization of loan
fees and debt premium
|
|
(1,488)
|
|
|
—
|
|
|
(1,488)
|
|
Net income
(loss)
|
|
115,002
|
|
|
(150)
|
|
|
114,852
|
|
Less: Net loss
attributable to Predecessor
|
|
—
|
|
|
(150)
|
|
|
(150)
|
|
Less: Net income
attributable to noncontrolling interest (g)
|
|
14,565
|
|
|
—
|
|
|
14,565
|
|
Net income
attributable to the partners
|
|
100,437
|
|
|
—
|
|
|
100,437
|
|
Less: Net income
attributable to the IDR holder
|
|
9,055
|
|
|
—
|
|
|
9,055
|
|
Net income
attributable to PBF Logistics LP unitholders
|
|
$
|
91,382
|
|
|
$
|
—
|
|
|
$
|
91,382
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reflects the
results of PNGPC prior to our acquisition on February 28,
2017.
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited, in
thousands)
|
|
|
|
|
|
Three months ended
December 31, 2016
|
|
|
PBF
Logistics LP
|
|
PNGPC
(1)
|
|
Consolidated
Results
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
Affiliate
|
|
$
|
57,092
|
|
|
$
|
—
|
|
|
$
|
57,092
|
|
Third-party
|
|
4,602
|
|
|
—
|
|
|
4,602
|
|
Total
revenue
|
|
61,694
|
|
|
—
|
|
|
61,694
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
Operating and
maintenance expenses
|
|
17,607
|
|
|
71
|
|
|
17,678
|
|
General and
administrative expenses
|
|
3,069
|
|
|
2
|
|
|
3,071
|
|
Depreciation and
amortization
|
|
5,234
|
|
|
206
|
|
|
5,440
|
|
Total costs and
expenses
|
|
25,910
|
|
|
279
|
|
|
26,189
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
35,784
|
|
|
(279)
|
|
|
35,505
|
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
Interest expense,
net
|
|
(7,457)
|
|
|
—
|
|
|
(7,457)
|
|
Amortization of loan
fees
|
|
(417)
|
|
|
—
|
|
|
(417)
|
|
Net income
(loss)
|
|
27,910
|
|
|
(279)
|
|
|
27,631
|
|
Less: Net loss
attributable to Predecessor
|
|
(886)
|
|
|
(279)
|
|
|
(1,165)
|
|
Less: Net income
attributable to noncontrolling interest (g)
|
|
4,058
|
|
|
—
|
|
|
4,058
|
|
Net income
attributable to the partners
|
|
24,738
|
|
|
—
|
|
|
24,738
|
|
Less: Net income
attributable to the IDR holder
|
|
1,266
|
|
|
—
|
|
|
1,266
|
|
Net income
attributable to PBF Logistics LP unitholders
|
|
$
|
23,472
|
|
|
$
|
—
|
|
|
$
|
23,472
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Reflects the results of PNGPC prior to our acquisition on
February 28, 2017.
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited, in
thousands)
|
|
|
|
|
|
Year ended
December 31, 2016
|
|
|
PBF
Logistics LP
|
|
PNGPC
(1)
|
|
Torrance
Valley
Pipeline
Company
LLC (2)
|
|
Consolidated
Results
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Affiliate
|
|
$
|
175,448
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
175,448
|
|
Third-party
|
|
11,887
|
|
|
—
|
|
|
—
|
|
|
11,887
|
|
Total
revenue
|
|
187,335
|
|
|
—
|
|
|
—
|
|
|
187,335
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Operating and
maintenance expenses
|
|
41,317
|
|
|
401
|
|
|
2,845
|
|
|
44,563
|
|
General and
administrative expenses
|
|
16,609
|
|
|
5
|
|
|
353
|
|
|
16,967
|
|
Depreciation and
amortization
|
|
12,337
|
|
|
827
|
|
|
1,819
|
|
|
14,983
|
|
Total costs and
expenses
|
|
70,263
|
|
|
1,233
|
|
|
5,017
|
|
|
76,513
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
117,072
|
|
|
(1,233)
|
|
|
(5,017)
|
|
|
110,822
|
|
|
|
|
|
|
|
|
|
|
Other
expense:
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(28,755)
|
|
|
—
|
|
|
—
|
|
|
(28,755)
|
|
Amortization of loan
fees
|
|
(1,678)
|
|
|
—
|
|
|
—
|
|
|
(1,678)
|
|
Net income
(loss)
|
|
86,639
|
|
|
(1,233)
|
|
|
(5,017)
|
|
|
80,389
|
|
Less: Net loss
attributable to Predecessor
|
|
—
|
|
|
(1,233)
|
|
|
(5,017)
|
|
|
(6,250)
|
|
Less: Net income
attributable to noncontrolling interest (g)
|
|
5,679
|
|
|
—
|
|
|
—
|
|
|
5,679
|
|
Net income
attributable to the partners
|
|
80,960
|
|
|
—
|
|
|
—
|
|
|
80,960
|
|
Less: Net income
attributable to the IDR holder
|
|
4,031
|
|
|
—
|
|
|
—
|
|
|
4,031
|
|
Net income
attributable to PBF Logistics LP unitholders
|
|
$
|
76,929
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
76,929
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reflects the results of PNGPC
prior to our acquisition on February 28, 2017.
|
(2)
Reflects the results of TVPC for the period from July 1, 2016
(the date on which PBF Energy acquired the Torrance Valley
Pipeline) through August 31, 2016 (our acquisition
date).
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
KEY OPERATING AND
FINANCIAL INFORMATION
|
(Unaudited,
amounts in thousands except as indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
December 31,
|
|
Year ended
December 31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
Transportation and
Terminaling Segment
|
|
|
|
|
|
|
|
|
|
Terminals
|
|
|
|
|
|
|
|
|
|
Total throughput
(bpd) (b)(d)
|
|
|
210,334
|
|
|
167,028
|
|
|
204,833
|
|
|
164,210
|
|
Lease tank capacity
(average lease capacity barrels per
month)
|
|
|
1,935,033
|
|
|
1,979,133
|
|
|
2,089,529
|
|
|
2,023,304
|
|
Pipelines
|
|
|
|
|
|
|
|
|
|
Total throughput
(bpd) (b)(d)
|
|
|
158,339
|
|
|
153,033
|
|
|
140,900
|
|
|
149,831
|
|
Lease tank capacity
(average lease capacity barrels per month)
|
|
|
1,603,474
|
|
|
1,427,922
|
|
|
1,250,930
|
|
|
1,439,846
|
|
|
|
|
|
|
|
|
|
|
|
Storage
Segment
|
|
|
|
|
|
|
|
|
|
Storage capacity
reserved (average shell capacity barrels per month)
|
|
|
4,376,698
|
|
|
3,656,833
|
|
|
4,363,630
|
|
|
3,635,236
|
|
|
|
|
|
|
|
|
|
Cash Flow
Information:
|
|
|
|
|
|
|
|
Net cash provided by
(used in):
|
|
|
|
|
|
|
|
Operating activities
|
$
|
21,480
|
|
|
$
|
30,927
|
|
|
$
|
142,445
|
|
|
$
|
99,212
|
|
Investing activities
|
(18,098)
|
|
|
5,032
|
|
|
(49,515)
|
|
|
72,893
|
|
Financing activities
|
(23,138)
|
|
|
(16,009)
|
|
|
(137,487)
|
|
|
(126,562)
|
|
Net change in
cash
|
|
|
$
|
(19,756)
|
|
|
$
|
19,950
|
|
|
$
|
(44,557)
|
|
|
$
|
45,543
|
|
|
|
|
|
|
|
|
|
Other Financial
Information:
|
|
|
|
|
|
|
|
|
EBITDA attributable
to PBFX (c)
|
$
|
39,190
|
|
|
$
|
36,436
|
|
|
$
|
152,084
|
|
|
$
|
121,911
|
|
|
Distributable cash
flow (c)
|
$
|
28,541
|
|
|
$
|
27,949
|
|
|
$
|
119,783
|
|
|
$
|
94,507
|
|
|
Quarterly
distribution declared per unit (e)
|
$
|
0.4850
|
|
|
$
|
0.4500
|
|
|
$
|
1.8950
|
|
|
$
|
1.7400
|
|
|
Distribution
(e):
|
|
|
|
|
|
|
|
|
|
|
Common
units
|
$
|
20,634
|
|
|
$
|
11,884
|
|
|
$
|
73,322
|
|
|
$
|
42,232
|
|
|
|
Subordinated units -
PBF LLC
|
—
|
|
|
7,149
|
|
|
7,308
|
|
|
27,642
|
|
|
|
IDR holder - PBF
LLC
|
2,736
|
|
|
1,266
|
|
|
9,055
|
|
|
4,031
|
|
|
|
|
Total
distribution
|
$
|
23,370
|
|
|
$
|
20,299
|
|
|
$
|
89,685
|
|
|
$
|
73,905
|
|
|
|
|
Coverage ratio
(c)
|
|
|
1.22x
|
|
1.38x
|
|
1.34x
|
|
1.28x
|
|
Capital expenditures,
including acquisitions
|
$
|
18,098
|
|
|
$
|
14,935
|
|
|
$
|
89,539
|
|
|
$
|
121,351
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
KEY OPERATING AND
FINANCIAL INFORMATION
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
Balance Sheet
Information:
|
|
2017
|
|
2016
|
|
|
|
|
|
|
Cash, cash
equivalents and marketable securities (f)
|
$
|
19,664
|
|
|
$
|
104,245
|
|
|
Property, plant and
equipment, net
|
673,823
|
|
|
608,802
|
|
|
Total
assets
|
737,550
|
|
|
756,861
|
|
|
Total debt
(f)
|
548,793
|
|
|
571,675
|
|
|
Total
liabilities
|
580,455
|
|
|
604,290
|
|
|
Partners'
equity
|
(14,808)
|
|
|
(27,311)
|
|
|
Noncontrolling
interest (g)
|
171,903
|
|
|
179,882
|
|
|
Total liabilities and
equity
|
737,550
|
|
|
756,861
|
|
|
|
|
|
|
|
|
|
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
December 31,
|
|
Year ended
December 31,
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net income to EBITDA and distributable cash flow
(c):
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
26,992
|
|
|
$
|
27,631
|
|
|
$
|
114,852
|
|
|
$
|
80,389
|
|
|
|
Interest expense,
net
|
9,382
|
|
|
7,457
|
|
|
31,875
|
|
|
28,755
|
|
|
|
Amortization of loan
fees and debt premium
|
363
|
|
|
417
|
|
|
1,488
|
|
|
1,678
|
|
|
|
Depreciation and
amortization
|
7,159
|
|
|
5,440
|
|
|
23,831
|
|
|
14,983
|
|
|
EBITDA
|
43,896
|
|
|
40,945
|
|
|
172,046
|
|
|
125,805
|
|
|
|
Less: Predecessor
EBITDA
|
—
|
|
|
(922)
|
|
|
(40)
|
|
|
(3,604)
|
|
|
|
Less: Noncontrolling
interest EBITDA (g)
|
4,706
|
|
|
5,431
|
|
|
20,002
|
|
|
7,498
|
|
|
EBITDA
attributable to PBFX
|
39,190
|
|
|
36,436
|
|
|
152,084
|
|
|
121,911
|
|
|
|
Non-cash unit-based
compensation expense
|
830
|
|
|
687
|
|
|
5,345
|
|
|
4,360
|
|
|
|
Cash
interest
|
(9,428)
|
|
|
(7,546)
|
|
|
(33,050)
|
|
|
(28,844)
|
|
|
|
Maintenance capital
expenditures
|
(2,051)
|
|
|
(1,628)
|
|
|
(4,596)
|
|
|
(2,920)
|
|
|
Distributable cash flow
|
$
|
28,541
|
|
|
$
|
27,949
|
|
|
$
|
119,783
|
|
|
$
|
94,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net cash provided by operating activities to EBITDA and
distributable cash flow (c):
|
|
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
21,480
|
|
|
$
|
30,927
|
|
|
$
|
142,445
|
|
|
$
|
99,212
|
|
|
|
Change in operating
assets and liabilities
|
13,864
|
|
|
3,248
|
|
|
3,071
|
|
|
2,198
|
|
|
|
Interest expense,
net
|
9,382
|
|
|
7,457
|
|
|
31,875
|
|
|
28,755
|
|
|
|
Non-cash unit-based
compensation expense
|
(830)
|
|
|
(687)
|
|
|
(5,345)
|
|
|
(4,360)
|
|
|
EBITDA
|
43,896
|
|
|
40,945
|
|
|
172,046
|
|
|
125,805
|
|
|
|
Less: Predecessor
EBITDA
|
—
|
|
|
(922)
|
|
|
(40)
|
|
|
(3,604)
|
|
|
|
Less: Noncontrolling
interest EBITDA (g)
|
4,706
|
|
|
5,431
|
|
|
20,002
|
|
|
7,498
|
|
|
EBITDA
attributable to PBFX
|
39,190
|
|
|
36,436
|
|
|
152,084
|
|
|
121,911
|
|
|
|
Non-cash unit-based
compensation expense
|
830
|
|
|
687
|
|
|
5,345
|
|
|
4,360
|
|
|
|
Cash
interest
|
(9,428)
|
|
|
(7,546)
|
|
|
(33,050)
|
|
|
(28,844)
|
|
|
|
Maintenance capital
expenditures
|
(2,051)
|
|
|
(1,628)
|
|
|
(4,596)
|
|
|
(2,920)
|
|
|
Distributable cash flow
|
$
|
28,541
|
|
|
$
|
27,949
|
|
|
$
|
119,783
|
|
|
$
|
94,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Footnotes to
Earnings Release Tables
|
PBF LOGISTICS
LP
|
EARNINGS RELEASE
TABLES
|
SEGMENT FINANCIAL
INFORMATION
|
(Unaudited, in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2017
|
|
|
Transportation
and Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total revenue
(a)
|
|
$
|
60,114
|
|
|
$
|
6,399
|
|
|
$
|
—
|
|
|
$
|
66,513
|
|
Depreciation and
amortization expense
|
|
6,247
|
|
|
912
|
|
|
—
|
|
|
7,159
|
|
Income (loss) from
operations
|
|
36,689
|
|
|
3,385
|
|
|
(3,337)
|
|
|
36,737
|
|
Interest expense,
net and amortization of
loan fees and debt premium
|
|
—
|
|
|
—
|
|
|
9,745
|
|
|
9,745
|
|
Capital
expenditures
|
|
1,804
|
|
|
16,294
|
|
|
—
|
|
|
18,098
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2016
|
|
|
Transportation
and Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total revenue
(a)
|
|
$
|
56,209
|
|
|
$
|
5,485
|
|
|
$
|
—
|
|
|
$
|
61,694
|
|
Depreciation and
amortization expense
|
|
4,842
|
|
|
598
|
|
|
—
|
|
|
5,440
|
|
Income (loss) from
operations
|
|
35,631
|
|
|
2,945
|
|
|
(3,071)
|
|
|
35,505
|
|
Interest expense,
net and amortization of loan fees and debt premium
|
|
—
|
|
|
—
|
|
|
7,874
|
|
|
7,874
|
|
Capital
expenditures
|
|
13,468
|
|
|
1,467
|
|
|
—
|
|
|
14,935
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31, 2017
|
|
|
Transportation
and Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total revenue
(a)
|
|
$
|
231,563
|
|
|
$
|
23,250
|
|
|
$
|
—
|
|
|
$
|
254,813
|
|
Depreciation and
amortization expense
|
|
21,077
|
|
|
2,754
|
|
|
—
|
|
|
23,831
|
|
Income (loss) from
operations
|
|
151,639
|
|
|
12,860
|
|
|
(16,284)
|
|
|
148,215
|
|
Interest expense,
net and amortization of loan fees and debt premium
|
|
—
|
|
|
—
|
|
|
33,363
|
|
|
33,363
|
|
Capital
expenditures
|
|
58,400
|
|
|
31,139
|
|
|
—
|
|
|
89,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31, 2016
|
|
|
Transportation
and Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total revenue
(a)
|
|
$
|
165,524
|
|
|
$
|
21,811
|
|
|
$
|
—
|
|
|
$
|
187,335
|
|
Depreciation and
amortization expense
|
|
12,555
|
|
|
2,428
|
|
|
—
|
|
|
14,983
|
|
Income (loss) from
operations
|
|
117,094
|
|
|
10,695
|
|
|
(16,967)
|
|
|
110,822
|
|
Interest expense,
net and amortization of
loan fees and debt premium
|
|
—
|
|
|
—
|
|
|
30,433
|
|
|
30,433
|
|
Capital
expenditures
|
|
118,592
|
|
|
2,759
|
|
|
—
|
|
|
121,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31, 2017
|
|
|
Transportation
and Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total
assets
|
|
$
|
639,310
|
|
|
$
|
86,760
|
|
|
$
|
11,480
|
|
|
$
|
737,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
December 31, 2016
|
|
|
Transportation
and Terminaling
|
|
Storage
|
|
Corporate
|
|
Consolidated
Total
|
Total
assets
|
|
$
|
606,898
|
|
|
$
|
57,375
|
|
|
$
|
92,588
|
|
|
$
|
756,861
|
|
|
|
|
|
|
|
|
|
|
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 4. Our results of
operations may not be comparable to the historical results of
operations for the reasons described
below:
.
Revenues - On April 17, 2017, our wholly-owned subsidiary,
PLTP, acquired the Toledo Products Terminal, which is accounted for
as a business combination. As such, there is no revenue associated
with the terminal prior to our acquisition.
In August 2017, the Paulsboro Natural Gas Pipeline commenced
service. Concurrent with the commencement of operations, a new
service agreement was entered into between PNGPC and PRC regarding
the Paulsboro Natural Gas Pipeline.
In November 2017, the Chalmette Storage Tank was completed, and, as
a result, the Chalmette Storage Agreement commenced. As such,
there is no revenue associated with the tank prior to its
completion.
.
The Torrance Valley Pipeline was acquired by PBF Energy on July 1,
2016 in connection with the acquisition of the Torrance Refinery
and related logistical assets and was not operated by PBF Energy
prior to its acquisition. Commercial agreements with PBF Energy for
the Torrance Valley Pipeline commenced subsequent to the closing of
the TVPC Acquisition on August 31,
2016.
.
On April 29, 2016, our wholly-owned subsidiary, PLPT, purchased the
East Coast Terminals, which have subsequently generated third-party
revenues. Prior to the Plains Asset Purchase, we did not record
third-party revenue in the periods presented.
Operating and maintenance expenses - As a result of the Toledo
Products Terminal Acquisition, the PNGPC Acquisition, the TVPC
Acquisition, the Plains Asset Purchase and commencement of
operations of the Chalmette Storage Tank, our operating expenses
are not comparative to prior periods due to expenses associated
with these acquired 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 5 for a definition of EBITDA, EBITDA
attributable to PBFX, distributable cash flow and coverage
ratio.
|
|
|
|
|
|
|
|
|
|
|
|
|
(d)
|
|
Operating information
pertains to assets which are included in our Transportation and
Terminaling segment. Throughput information reflects activity
subsequent to execution of the commercial agreements in connection
with the acquisitions of the Toledo Products Terminal, the
Paulsboro Natural Gas Pipeline and the Torrance Valley Pipeline and
activity subsequent to the Plains Asset Purchase.
|
|
|
|
(e)
|
|
On February 15, 2018,
we declared a quarterly cash distribution of $0.4850 per common
unit for the fourth quarter of 2017.
|
|
|
|
(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 and marketable securities 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 December 31, 2017 and 2016 was
$529,129 and $467,430, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
(g)
|
|
Our wholly-owned
subsidiary, PBFX Op Co, holds a 50% controlling interest in TVPC,
with the other 50% interest in TVPC owned by TVP Holding, an
indirect subsidiary of PBF Holding. PBFX Op Co is also the sole
managing member of TVPC. We, through our ownership of PBFX Op Co,
consolidate the financial results of TVPC and record a
noncontrolling interest for the economic interest in TVPC held by
TVP Holding. Noncontrolling interest on the consolidated statements
of operations includes the portion of net income or loss
attributable to the economic interest in TVPC held by TVP Holding.
Noncontrolling interest on the consolidated balance sheets includes
the portion of net assets of TVPC attributable to TVP
Holding.
|
|
|
|
|
|
|
|
|
|
|
|
|
(h)
|
|
PBFX bases its
calculation of net income per limited partner unit on the
weighted-average number of limited partner units outstanding during
the period. The weighted-average number of common and subordinated
units reflects the conversion of all of the outstanding
subordinated units on a one-to-one basis to common units on June 1,
2017.
|
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SOURCE PBF Logistics LP