PBF Logistics Increases Quarterly Cash Distribution to $0.41 per Unit and Announces Fourth Quarter Earnings Results

-- Fifth consecutive quarterly distribution increase to $0.41 per unit

-- Fourth quarter distributable cash flow of $20.3 million

-- Total liquidity of $317.2 million, including $18.7 million in cash

-- East Coast Terminals acquisition expected to generate $15.0 million of pro forma EBITDA

11 Feb, 2016, 06:30 ET from PBF Logistics LP

PARSIPPANY, N.J., Feb. 11, 2016 /PRNewswire/ -- PBF Logistics LP (NYSE: PBFX, the "Partnership") announced today fourth quarter 2015 net income attributable to the partnership of $17.3 million, or $0.50 per limited partner unit. During the fourth quarter, the Partnership generated earnings before interest, income taxes, depreciation, and amortization (EBITDA) of $26.1 million, which includes a one-time charge of $1.0 million related to employee expenses, and distributable cash flow of $20.3 million. For the year-ended December 31, 2015, the Partnership reported net income of $73.8 million, or $2.18 per limited partner unit.

"The fourth quarter was a solid operational quarter for PBFX and we are pleased to announce our fifth consecutive distribution increase since our initial public offering which we believe demonstrates our commitment to the longer-term growth of the Partnership. Despite the overall market turbulence in 2015, PBF Logistics performed well and we executed on our goals. In particular, we successfully put in place a long-term capital structure by issuing $350 million in senior notes and diversified the revenue base of the Partnership through the Delaware City Products Pipeline and Truck Rack acquisition," said PBF Logistics GP LLC Chief Executive Officer, Tom Nimbley.

As of December 31, 2015, the Partnership had liquidity of $317.2 million, including $18.7 million in cash and cash equivalents and $298.5 million of capacity under its existing revolving credit facility.  The Partnership intends to use its financial resources to fund organic growth projects at the Partnership and future acquisitions.

East Coast Terminals Acquisition On February 2, 2016, the Partnership announced that a wholly-owned subsidiary has entered into an agreement to acquire four refined product terminals located in the greater Philadelphia region (the "East Coast Terminals") from an affiliate of Plains All American Pipeline, L.P. for a total consideration of $100.0 million. The acquisition is expected to close in the second quarter of 2016, subject to customary closing conditions.

"The acquisition of the East Coast Terminals is PBFX's first third-party acquisition, will add meaningful third-party, fee-based revenue and represents an attractive acquisition multiple. The addition of the East Coast Terminals will increase the Partnership's total capacity by over 100% to approximately 8.1 million shell barrels and diversify its customer and asset base. We expect the acquisition to be accretive to distributable cash flow upon closing," commented Mr. Nimbley. "PBF Logistics has been able to execute its strategy and deliver growth to our unitholders."

The East Coast Terminals are expected to allow PBF Logistics to leverage its expanded footprint and capitalize on commercial opportunities with new customers and leverage opportunities with PBF Energy due to the close proximity of PBF Energy's East Coast refining system. In conjunction with the transaction, the Partnership expects to invest approximately $5 million, from cash on hand, to improve infrastructure in order to increase throughput capability at the East Coast Terminals. Based on a total transaction cost of $105 million, including the $5 million investment and synergy opportunities, the Partnership expects the East Coast Terminals to generate approximately $15 million of pro forma EBITDA, of which approximately two-thirds is expected to be from third-party customers.

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 $0.41 per unit. The distribution is payable on March 8, 2016, to unitholders of record at the close of business on February 22, 2016.

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 PBF Logistics LP Reconciliation of Amounts under US GAAP to Forecasted EBITDA (unaudited, in millions)

Reconciliation of East Coast Terminals Forecasted Net Income to pro forma EBITDA:

Forecasted net income

$

8.7

Add: Depreciation and amortization expense

5.3

Add: Interest expense, net and other financing costs

1.0

Pro forma EBITDA

$

15.0

This earnings release, and the discussion during the management conference call, may include references to non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures including, but not limited to, EBITDA (Earnings before Interest, Income Taxes, Depreciation and Amortization) 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 11, 2016, at 11:00 a.m. ET. The call can also be heard by dialing (877) 876-9177 or (785) 424-1666, conference ID: PBFXQ415. The audio replay will be available two hours after the end of the call through February 27, 2016, by dialing (800) 388-5895 or (402) 220-1110. 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 EBITDA (as defined below) and related operational information of PBF Logistics LP ("PBFX" or the "Partnership") for the three months and years ended December 31, 2015 and 2014. The financial information presented contains the financial results of PBF MLP Predecessor (the "Predecessor"), our predecessor for accounting purposes, for periods presented through May 13, 2014. The Predecessor includes the financial results of a light crude oil rail unloading terminal at PBF Energy Inc.'s Delaware City refinery (which we refer to as the "DCR Rail Terminal"), and a crude oil truck unloading terminal at the PBF Energy Inc.'s Toledo refinery (which we refer to as the "Toledo Truck Terminal") which were acquired from subsidiaries of PBF Energy Inc. ("PBF Energy") during our initial public offering, completed on May 14, 2014 (the "Offering").

The financial information contained herein of the Predecessor and PBFX has been retrospectively adjusted to include the historical results of a heavy crude oil rail unloading terminal at PBF Energy's Delaware City refinery (which we refer to as the "DCR West Rack") prior to its acquisition by PBFX on September 30, 2014, a tank farm and related facilities located at PBF Energy's Toledo refinery, including a propane storage and loading facility (which we collectively refer to as the "Toledo Storage Facility") prior to its acquisition by PBFX on December 11, 2014, and a products pipeline (the "Delaware City Products Pipeline"), truck rack and related facilities located at PBF Energy's Delaware city refinery (which we collectively refer to as the "Delaware City Products Pipeline and Truck Rack") prior to its acquisition by PBFX on May 14, 2015. The DCR West Rack, Toledo Storage Facility, and Delaware City Products Pipeline and Truck Rack were acquired from subsidiaries of our indirect parent company, PBF Energy (the acquisitions are collectively referred to as the "Acquisitions from PBF"). The results of the DCR Rail Terminal, Toledo Truck Rack, DCR West Rack, the propane loading facility at the Toledo Storage Facility and the Delaware City Products Pipeline and Truck Rack are included in the Transportation and Terminaling segment. The tank farm and related facilities at the Toledo Storage Facility are included in the Storage segment.

Our Predecessor generally recognized only the costs and did not record revenue for transactions with PBF Energy prior to completion of the Offering and Acquisitions from PBF, with the exception of the Delaware City Products Pipeline. Affiliate revenues have been recorded for all of our assets subsequent to the commencement of the commercial agreements with PBF Energy upon completion of the Offering and Acquisitions from PBF. As a result, 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 distributable cash flow as EBITDA 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. Distributable cash flow and EBITDA are not measures prescribed by U.S. generally accepted accounting principles ("GAAP").

While EBITDA and distributable cash flow are not measures prescribed by U.S. 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 provides useful information to investors in assessing our financial condition and results of operations. EBITDA 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 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.

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. EBITDA and distributable cash flow are reconciled to their most directly comparable financial measures calculated and presented in accordance with GAAP.

These non-GAAP financial metrics 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 metrics 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,

2015

2014*

2015

2014

Revenue from affiliates (a)

$

37,306

$

29,994

$

142,102

$

59,403

Costs and expenses:

Operating and maintenance expenses

7,090

9,331

25,255

26,215

General and administrative expenses (a) (b)

4,091

3,073

13,889

8,201

Depreciation and amortization expense

1,663

1,567

6,582

4,473

12,844

13,971

45,726

38,889

Income from operations

24,462

16,023

96,376

20,514

Other income (expense):

Interest expense, net

(6,765)

(1,339)

(19,939)

(2,307)

Amortization of loan fees

(424)

(150)

(1,315)

(365)

Net income

17,273

14,534

75,122

17,842

Less: Net (loss) income attributable to Predecessor

(705)

1,274

(12,122)

Limited partners' interest in net income attributable to the Partnership

$

17,273

$

15,239

$

73,848

$

29,964

Net income per limited partner unit:

Common units - basic

$

0.50

$

0.47

$

2.18

$

0.94

Common units - diluted

$

0.50

$

0.47

$

2.18

$

0.94

Subordinated units - basic and diluted

$

0.50

$

0.47

$

2.18

$

0.93

Weighted-average limited partner units outstanding:

Common units - basic

18,466,598

16,611,075

17,956,152

16,167,802

Common units - diluted

18,466,855

16,611,952

17,956,152

16,169,827

Subordinated units - basic and diluted

15,886,553

15,886,553

15,886,553

15,886,553

See Footnotes to Earnings Release Tables

* Prior-period financial information has been retrospectively adjusted for the acquisition of the Delaware City Products Pipeline and Truck Rack.

 

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited, in thousands)

Year Ended December 31, 2015

PBF Logistics LP

Delaware City Products Pipeline and Truck Rack

Consolidated Results

Revenue from affiliates (a)

$

138,719

$

3,383

$

142,102

Costs and expenses:

Operating and maintenance expenses

23,890

1,365

25,255

General and administrative expenses (a) (b)

13,408

481

13,889

Depreciation and amortization expense

6,306

276

6,582

43,604

2,122

45,726

Income from operations

95,115

1,261

96,376

Other income (expense):

Interest expense, net

(19,952)

13

(19,939)

Amortization of loan fees

(1,315)

(1,315)

Net income

73,848

1,274

75,122

Less: Net income attributable to Predecessor

1,274

1,274

Limited partners' interest in net income attributable to the Partnership

$

73,848

$

$

73,848

See Footnotes to Earnings Release Tables

 

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

CONSOLIDATING STATEMENTS OF OPERATIONS

(Unaudited, in thousands)

Three months ended December 31, 2014

PBF Logistics LP**

DCR West Rack

Toledo Storage Facility

Delaware City Products Pipeline and Truck Rack

Consolidated Results

Revenue from affiliates (a)

$

27,304

$

$

$

2,690

$

29,994

Costs and expenses:

Operating and maintenance expenses

6,712

1,563

1,056

9,331

General and administrative expenses (a) (b)

2,943

25

105

3,073

Depreciation and amortization expense

917

465

185

1,567

10,572

2,053

1,346

13,971

Income (loss) from operations

16,732

(2,053)

1,344

16,023

Other income (expense):

Interest expense, net

(1,343)

4

(1,339)

Amortization of loan fees

(150)

(150)

Net income (loss)

15,239

(2,053)

1,348

14,534

Less: Net (loss) income attributable to Predecessor

(2,053)

1,348

(705)

Limited partners' interest in net income attributable to the Partnership

$

15,239

$

$

$

$

15,239

Year Ended December 31, 2014

PBF Logistics LP**

DCR West Rack

Toledo Storage Facility

Delaware City Products Pipeline and Truck Rack

Consolidated Results

Revenue from affiliates (a)

$

49,830

$

$

$

9,573

$

59,403

Costs and expenses:

Operating and maintenance expenses

11,710

2,305

8,349

3,851

26,215

General and administrative expenses (a) (b)

7,527

111

128

435

8,201

Depreciation and amortization expense

1,815

263

1,653

742

4,473

21,052

2,679

10,130

5,028

38,889

Income (loss) from operations

28,778

(2,679)

(10,130)

4,545

20,514

Other income (expense):

Interest expense, net

(2,312)

5

(2,307)

Amortization of loan fees

(365)

(365)

Net income (loss)

26,101

(2,679)

(10,130)

4,550

17,842

Less: Net (loss) income attributable to Predecessor

(3,863)

(2,679)

(10,130)

4,550

(12,122)

Limited partners' interest in net income attributable to the Partnership

$

29,964

$

$

$

$

29,964

See Footnotes to Earnings Release Tables

** The information presented includes the results of operations of the Predecessor for periods presented through May 13, 2014 and of PBFX for the period beginning May 14, 2014, the date PBFX commenced operations.

 

 

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,

2015

2014*

2015

2014

Key Operating Information:

Throughput (barrels per day ("bpd")) (d)

Delaware City Rail Terminal

13.1

75.6

33.3

74.4

DCR West Rack

25.1

51.2

20.1

51.2

Toledo Truck Terminal

21.1

6.6

15.0

9.2

Toledo Storage Facility (Propane Loading)

4.7

3.9

4.4

3.9

Delaware Products Pipeline

48.1

56.1

46.1

51.3

Delaware Truck Rack

31.5

N/A

33.2

N/A

Total Throughput (barrels) (d)

Delaware City Rail Terminal

1,204.1

6,952.9

12,150.5

17,265.8

DCR West Rack

2,310.0

4,708.9

7,342.8

4,708.9

Toledo Truck Terminal

1,939.2

604.9

5,490.1

2,131.0

Toledo Storage Facility (Propane Loading)

436.1

78.4

1,604.8

78.4

Delaware Products Pipeline

4,420.8

5,163.1

16,815.4

18,741.6

Delaware Truck Rack

2,902.1

N/A

7,679.9

N/A

Total

13,212.3

17,508.2

51,083.5

42,925.7

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

3,522.2

3,713.1

3,558.7

3,713.1

Cash Flow Information:

Net cash provided by (used in):

Operating activities

$

15,157

$

12,187

$

78,546

$

12,887

Investing activities

(864)

23,169

(1,349)

(282,734)

Financing activities

(13,851)

(33,276)

(72,684)

283,937

Net increase (decrease) in cash

$

442

$

2,080

$

4,513

$

14,090

Other Financial Information:

EBITDA attributable to PBFX (c)

$

26,125

$

17,649

$

101,421

$

34,027

Distributable cash flow (c)

$

20,347

$

16,739

$

83,922

$

32,801

Quarterly distribution declared per unit (f)

$

0.41

$

0.33

$

1.52

$

0.79

Distribution declared (f):

Common units - public

$

6,694

$

5,309

$

24,843

$

12,706

Common units - PBF

1,055

424

3,911

635

Subordinated units - PBF

6,514

5,243

24,148

12,551

IDR Holders - PBF LLC

583

1,118

Total distribution declared

$

14,846

$

10,976

$

54,020

$

25,892

Coverage ratio (c)

1.37x

1.53x

1.55x

1.27x

Capital expenditures

$

864

$

6,812

$

2,046

$

47,805

See Footnotes to Earnings Release Tables

* Prior-period financial information has been retrospectively adjusted for the acquisition of the Delaware City Products Pipeline and Truck Rack.

 

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

KEY OPERATING AND FINANCIAL INFORMATION

(Unaudited, amounts in thousands)

December 31,

 December 31,

Balance Sheet Information:

2015

2014

Cash, cash equivalents and marketable securities

$

252,936

$

249,095

Property, plant and equipment, net

145,548

146,867

Total assets

422,902

407,989

Total debt

599,635

507,848

Total liabilities

608,577

512,569

Net investment - Predecessor

15,713

Partners' equity

(185,675)

(104,580)

Total liabilities and equity

422,902

407,989

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,

2015

2014*

2015

2014

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

 Net income

$

17,273

$

14,534

$

75,122

$

17,842

Add: Interest expense, net

6,765

1,339

19,939

2,307

Add: Amortization of loan fees

424

150

1,315

365

Add: Depreciation and amortization

1,663

1,567

6,582

4,473

 EBITDA

26,125

17,590

102,958

24,987

Less: Predecessor EBITDA

(59)

1,537

(9,040)

 EBITDA attributable to PBFX

26,125

17,649

101,421

34,027

Add: Non-cash unit-based compensation expense

1,851

433

4,279

1,086

Less: Interest expense, net

(6,765)

(1,343)

(19,952)

(2,312)

Less: Maintenance capital expenditures

(864)

(1,826)

 Distributable cash flow

$

20,347

$

16,739

$

83,922

$

32,801

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

 Net cash provided by operating activities

$

15,157

$

12,187

$

78,546

$

12,887

Add: Change in current assets and liabilities

6,054

4,497

8,752

10,879

Add: Interest expense, net

6,765

1,339

19,939

2,307

Less: Non-cash unit-based compensation expense

(1,851)

(433)

(4,279)

(1,086)

 EBITDA

26,125

17,590

102,958

24,987

Less: Predecessor EBITDA

(59)

1,537

(9,040)

 EBITDA attributable to PBFX

26,125

17,649

101,421

34,027

Add: Non-cash unit-based compensation expense

1,851

433

4,279

1,086

Less: Interest expense, net

(6,765)

(1,343)

(19,952)

(2,312)

Less: Maintenance capital expenditures

(864)

(1,826)

 Distributable cash flow

$

20,347

$

16,739

$

83,922

$

32,801

See Footnotes to Earnings Release Tables

* Prior-period financial information has been retrospectively adjusted for the acquisition of the Delaware City Products Pipeline and Truck Rack.

 

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

SEGMENT FINANCIAL INFORMATION

(Unaudited, in thousands)

Three months ended December 31, 2015

Transportation and Terminaling

Storage

Corporate

Consolidated Total

Revenues (a)

$

32,023

$

5,283

$

$

37,306

Depreciation and amortization expense

979

684

1,663

Income (loss) from operations

26,592

1,961

(4,091)

24,462

Interest expense, net and amortization of loan fees

7,189

7,189

Capital expenditures

21

843

864

Three months ended December 31, 2014*

Transportation and Terminaling

Storage

Corporate

Consolidated Total

Revenues (a)

$

28,796

$

1,198

$

$

29,994

Depreciation and amortization expense

974

593

1,567

Income (loss) from operations

20,149

(1,053)

(3,073)

16,023

Interest expense, net and amortization of loan fees

1,489

1,489

Capital expenditures

2,719

4,093

6,812

Year ended December 31, 2015

Transportation and Terminaling

Storage

Corporate

Consolidated Total

Revenues (a)

$

120,750

$

21,352

$

$

142,102

Depreciation and amortization expense

3,943

2,639

6,582

Income (loss) from operations

99,730

10,535

(13,889)

96,376

Interest expense, net and amortization of loan fees

21,254

21,254

Capital expenditures

246

1,800

2,046

Year ended December 31, 2014

Transportation and Terminaling

Storage

Corporate

Consolidated Total

Revenues (a)

$

58,205

$

1,198

$

$

59,403

Depreciation and amortization expense

2,694

1,779

4,473

Income (loss) from operations

36,655

(7,940)

(8,201)

20,514

Interest expense, net and amortization of loan fees

2,672

2,672

 Capital expenditures

32,279

15,526

47,805

Balance at December 31, 2015

Transportation and Terminaling

Storage

Corporate

Consolidated Total

Total assets

$

112,826

$

56,846

$

253,230

$

422,902

Balance at December 31, 2014

Transportation and Terminaling

Storage

Corporate

Consolidated Total

Total assets

$

105,631

$

53,038

$

249,320

$

407,989

See Footnotes to Earnings Release Tables

* Prior-period financial information has been retrospectively adjusted for the acquisition of the Delaware City Products Pipeline and Truck Rack.

 

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

FOOTNOTES TO EARNINGS RELEASE TABLES

(Unaudited)

(a)

See discussion of the factors affecting comparability noted on page 4. The Partnership's results of operations may not be comparable to the Predecessor's historical results of operations for the reasons described below:   Revenues -  There are differences in the way our Predecessor recorded revenues and the way the Partnership records revenues after completion of the Offering and Acquisitions from PBF as discussed under "Factors Affecting Comparability."   General and Administrative Expenses -  Our Predecessor's general and administrative expenses included direct charges for the management and operation of our logistics assets and certain expenses allocated by PBF Energy for general corporate services, such as treasury, accounting and legal services. These expenses were charged, or allocated, to our Predecessor based on the nature of the expenses. PBF Energy continues to charge the Partnership a combination of direct charges for the management and operation of our logistics assets and a fixed annual fee for general corporate services, such as treasury, accounting and legal services. We also incur additional incremental general and administrative expenses as a result of being a separate publicly-traded partnership.

(b)

General and administrative expenses include transaction costs related to the Acquisitions from PBF of $0.3 million and $0.5 million in the three months ended December 31, 2015 and 2014, respectively, and $0.8 million and $1.1 million in the years ended December 31, 2015 and 2014, respectively.

(c)

See "Non-GAAP Financial Measures" on page 4 for a definition of EBITDA, distributable cash flow and coverage ratio.

(d)

Operating information pertains to assets which are included in the Transportation and Terminaling segment. Throughput information reflects activity subsequent to execution of the commercial agreements in connection with the Offering and Acquisitions from PBF, with the exception of the Delaware City Products Pipeline which recognized revenue prior to its acquisition by PBFX.

(e)

Operating information pertains to assets which are included in the Storage segment. Shell capacity information reflects activity subsequent to execution of the commercial agreements in connection with the Toledo Storage Facility acquisition.

(f)

On February 11, 2016, we declared a quarterly cash distribution of $0.41 per limited partner unit for the fourth quarter of 2015.

                                                               

 

SOURCE PBF Logistics LP



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