PR Newswire | Feb 11, 2021 06:31AM EST

Distribution of $0.30 per Unit

02/11 05:30 CST

PBF Logistics Announces Fourth Quarter 2020 Results and Quarterly Cash Distribution of $0.30 per Unit- Fourth quarter net income attributable to the limited partners of $31.0 million, or $0.50 per common unit, EBITDA attributable to PBFX of $55.5 million and Adjusted EBITDA of $58.6 million- Full year 2020 net income attributable to the limited partners of $147.4 million, or $2.36 per common unit, EBITDA attributable to PBFX of $230.0 million and Adjusted EBITDA of $237.0 million- Announces quarterly distribution of $0.30 per unit PARSIPPANY, N.J., Feb. 11, 2021

PARSIPPANY, N.J., Feb. 11, 2021 /PRNewswire/ -- PBF Logistics LP (NYSE:PBFX, the "Partnership") announced today fourth quarter 2020 net income attributable to the limited partners of $31.0 million, or $0.50 per common unit. During the fourth quarter, the Partnership generated cash from operations of $45.2 million, EBITDA attributable to PBFX of $55.5 million, Adjusted EBITDA of $58.6 million and distributable cash flow of $45.5 million. Included in reported results for the fourth quarter are $3.0 million, or $0.05 per common unit, of transaction-related expenses, non-cash unit-based compensation and environmental remediation costs associated with the East Coast Terminals.

For the year-ended December 31, 2020, the Partnership reported net income attributable to the limited partners of $147.4 million, or $2.36 per common unit, generated cash from operations of $186.6 million, EBITDA attributable to PBFX of $230.0 million, Adjusted EBITDA of $237.0 million and distributable cash flow of $181.7 million. Included in reported results for the year-ended December 31, 2020 are $7.0 million, or $0.11 per common unit, of transaction-related expenses, non-cash unit-based compensation and environmental remediation costs associated with the East Coast Terminals.

As of December 31, 2020, the Partnership had approximately $331.4 million of liquidity, including approximately $36.3 million in cash and cash equivalents and access to approximately $295.1 million under its revolving credit facility.

PBF Logistics GP LLC Executive Vice President Matt Lucey said, "PBF Logistics' assets finished the year with another solid quarter of operating performance. The Partnership successfully navigated the challenges of 2020 during which we experienced respective increases and decreases in our revenues based on the COVID impacts to our business counterparties." Mr. Lucey continued, "Heading into 2021, we expect the Partnership's revenues to remain strong, allowing us to maintain high distribution coverage while reducing debt and strengthening the balance sheet."

PBF Logistics Announces Quarterly DistributionThe board of directors of PBF Logistics GP LLC, the Partnership's general partner, declared a regular quarterly cash distribution of $0.30 per unit. The distribution is payable on March 17, 2021, to PBFX unitholders of record at the close of business on February 25, 2021.

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

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

Conference Call InformationThe Partnership's senior management will host a conference call and webcast regarding earnings results and other business matters on Thursday, February 11, 2021, at 11:00 a.m. ET. The call is being webcast and can be accessed at PBF Logistics' website, http://www.pbflogistics.com. The call can also be accessed by dialing (877) 407-8029 or (201) 689-8029. The audio replay will be available approximately two hours after the end of the call and will be available through the Partnership's website.

Forward-Looking StatementsThis 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 our ability to consummate potential acquisitions, the timing for the closing of any such acquisition and our plans for financing any acquisition; unforeseen liabilities associated with any potential 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 LPPBF 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.

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Results of Operations (Unaudited)

Business Developments

COVID-19

The outbreak of the coronavirus disease 2019 ("COVID-19") pandemic continues to negatively impact worldwide economic and commercial activity and financial markets, as well as global demand for petroleum and petrochemical products. The COVID-19 pandemic and resulting governmental and consumer responses have also resulted in significant business and operational disruptions, including business and school closures, supply chain disruptions, travel restrictions, stay-at-home orders and limitations on the availability of workforces. Such impacts have resulted in revenue declines due to lower demand and throughput volumes across certain of our facilities, which may continue to affect our business for the foreseeable future. In response to the COVID-19 pandemic, we have taken, and are continuing to take, steps to mitigate potential adverse impacts on our business and operations by limiting capital expenditures, reducing discretionary activities and third-party services and lowering our quarterly distribution to our minimum quarterly distribution of $0.30 per unit. This distribution reduction, effective with the distribution for the first quarter of 2020 that was paid on June 17, 2020, represents a strategic shift to build our cash flow coverage, de-lever our business and increase our financial resources as we continue to identify potential organic growth projects or strategic acquisitions. In addition, our parent sponsor and largest customer, PBF Energy Inc. ("PBF Energy"), has endeavored to take the necessary steps to preserve liquidity and solidify its operations under the adverse market conditions caused by the COVID-19 pandemic. Despite the measures we and PBF Energy have taken, we and PBF Energy have been, and likely will continue to be, adversely impacted by the COVID-19 pandemic. We are unable to predict the ultimate outcome of the economic impact and can provide no assurance that measures taken to mitigate the impact of the COVID-19 pandemic will be effective.

The full extent to which the COVID-19 pandemic impacts our business and operations, or that of PBF Energy, is unknown and will depend on the severity, location and duration of the effects and spread of COVID-19, the effectiveness of the vaccine programs and the other actions undertaken by national, regional and local governments and health officials to contain the virus or treat its effects, related consumer responses and how quickly and to what extent economic conditions improve and normal business and operating conditions resume.

Factors Affecting Comparability

The following tables present our results of operations, related operational information and reconciliations of net income and net cash provided by operating activities to our EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow (each as defined below) for the three months and years ended December 31, 2020 and 2019.

On October 1, 2018, we acquired from Crown Point International, LLC, its wholly-owned subsidiary, CPI Operations LLC ("CPI"), whose assets include a storage facility with multi-use storage capacity, an Aframax-capable marine facility, a rail facility, a truck terminal, equipment, contracts and certain other idled assets (the "East Coast Storage Assets") located on the Delaware River near Paulsboro, New Jersey (the "East Coast Storage Assets Acquisition"). In connection with the acquisition, the purchase and sale agreement included an earn-out provision related to an existing commercial agreement with a third party, based on the future results of certain of the acquired idled assets, which recommenced operations in October 2019. Pursuant to the terms of the commercial agreement, in the third quarter of 2020, the counterparty exercised its right to terminate the contract at the conclusion of the current contract year, resulting in an adjustment to the contingent consideration (as defined below). In addition, as a result of the contract termination, we recorded an impairment charge of $7.0 million to write-down the related processing unit assets and customer contract intangible asset of $3.0 million and $4.0 million, respectively. The impairment charge represents a write-down of the CPI assets due to the reduction of future earnings as a result of the contract termination. These are nonrecurring impairment events that have a fair value measurement and are classified in level 3 of the fair value hierarchy. The fair values of the assets were determined using the income approach and was based on the expected undiscounted future net cash flows over the remaining contractual period.

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.

On April 24, 2019, we entered into subscription agreements to sell an aggregate of 6,585,500 common units to certain institutional investors in a registered direct public offering (the "2019 Registered Direct Offering") for gross proceeds of approximately $135.0 million. The 2019 Registered Direct Offering closed on April 29, 2019.

In addition, our results in the current year have been negatively affected by the impact of the COVID-19 pandemic on our business, including lower throughput volumes at our terminals, as the industry reacts to the related economic downturn and volatile commodity markets.

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

While EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are not presentations made in accordance with GAAP, they are supplemental financial measures that management and external users of our 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

CONSOLIDATED STATEMENTS OF OPERATIONS

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

Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019



Revenue (a):

Affiliate $70,725 $76,863 $289,406 $300,877

Third-party 18,362 15,377 70,849 39,335

Total revenue 89,087 92,240 360,255 340,212



Costs and expenses:

Operating and maintenance24,467 31,789 99,852 118,614 expenses (a)

General and 5,950 6,373 18,748 24,515 administrative expenses

Depreciation and 16,886 11,947 53,707 38,601 amortization

Impairment expense - - 7,000 -

Change in contingent (155) (790) (14,390) (790) consideration

Total costs and expenses 47,148 49,319 164,917 180,940



Income from operations 41,939 42,921 195,338 159,272



Other expense:

Interest expense, net (10,448) (12,196) (44,377) (46,555)

Amortization of loan fees(432) (441) (1,741) (1,780) and debt premium

Accretion on discounted (62) (513) (1,788) (2,768) liabilities

Net income 30,997 29,771 147,432 108,169

Less: Net income attributable to - - - 7,881 noncontrolling interest (g)

Net income attributable to PBF Logistics LP $30,997 $29,771 $147,432 $100,288 unitholders



Net income per limited partner unit (h):

Common units - basic $0.50 $0.48 $2.36 $1.71

Common units - diluted 0.49 0.48 2.36 1.71



Weighted-average limited partner units outstanding (h):

Common units - basic 62,611,89962,360,00262,535,96458,583,231

Common units - diluted 62,699,66162,486,99662,543,70058,687,945



See Footnotes to Earnings Release Tables

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

KEY OPERATING AND FINANCIAL INFORMATION

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

Three Months Ended Year Ended December December 31, 31, 2020 2019 2020 2019

Transportation and Terminaling Segment

Terminals

Total throughput (barrels 200,409 312,466 230,167 293,504 per day ("bpd")) (b)(d)

Lease tank capacity (average lease capacity 2,555,0012,087,642 2,396,4782,194,328barrels per month) (d)

Pipelines

Total throughput (bpd) (b)134,576 179,337 149,049 163,608 (d)

Lease tank capacity (average lease capacity 1,110,3341,442,524 1,136,2221,377,544barrels per month) (d)



Storage Segment

Storage capacity reserved (average shell capacity 7,620,0057,546,327 7,630,6997,891,670barrels per month) (d)

Total throughput (bpd) (b)(d) 17,757 29,056 22,958 29,056



Cash Flow Information:

Net cash provided by (used in):

Operating activities $45,213 $53,364 $186,642$149,007

Investing activities (2,673) (8,566) (12,308) (31,746)

Financing activities (34,107) (62,410) (173,016)(102,203)

Net change in cash $8,433 $(17,612)$1,318 $15,058 and cash equivalents



Other Financial Information:

EBITDA attributable to PBFX $55,538 $51,982 $229,995$184,807(c)

Adjusted EBITDA (c) $58,551 $54,244 $237,010$200,988

Distributable cash flow (c) $45,507 $37,976 $181,740$137,050

Quarterly distribution $0.3000 $0.5200 $1.2000 $2.0650 declared per unit (e)

Distributions (e):

Common units $18,940 $32,704 $75,578 $129,892

Total distributions $18,940 $32,704 $75,578 $129,892

Coverage ratio (c) 2.40x 1.16x 2.40x 1.06x

Capital expenditures $2,673 $8,566 $12,308 $31,746



See Footnotes to Earnings Release Tables

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

KEY OPERATING AND FINANCIAL INFORMATION (continued)

(Unaudited, in thousands)



December 31, December 31, 2020 2019 Balance Sheet Information:



Cash and cash equivalents (f) $ 36,284 $34,966

Property, plant and equipment, net820,174 854,610

Total assets 933,552 973,002

Total debt (f) 720,845 802,104

Total liabilities 766,335 867,919

Partners' equity 167,217 105,083

Total liabilities and equity 933,552 973,002



See Footnotes to Earnings Release Tables

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

RECONCILIATION OF AMOUNTS REPORTED UNDER GAAP

TO EBITDA AND DISTRIBUTABLE CASH FLOW

(Unaudited, in thousands)



Three Months Ended Year Ended December December 31, 31,

2020 2019 2020 2019

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

Net income $30,997$29,771$147,432$108,169

Interest expense, net 10,448 12,196 44,377 46,555

Amortization of loan fees and432 441 1,741 1,780 debt premium

Accretion on discounted 62 513 1,788 2,768 liabilities

Change in contingent (155) (790) (14,390) (790) consideration

Impairment expense - - 7,000 -

Depreciation and amortization16,886 11,947 53,707 38,601

EBITDA 58,670 54,078 241,655 197,083

Less: Noncontrolling interest- - - 10,180 EBITDA (g)

Less: Earnings attributable 3,132 2,096 11,660 2,096 to the CPI earn-out

EBITDA attributable to PBFX 55,538 51,982 229,995 184,807

Non-cash unit-based 1,697 1,143 4,939 6,765 compensation expense

Cash interest (10,607)(12,321)(45,088) (47,081)

Maintenance capital expenditures attributable to (1,121) (2,828) (8,106) (7,441) PBFX

Distributable cash flow $45,507$37,976$181,740$137,050



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

Net cash provided by operating$45,213$53,364$186,642$149,007activities

Change in operating assets 4,706 (10,339)15,575 8,286 and liabilities

Interest expense, net 10,448 12,196 44,377 46,555

Non-cash unit-based (1,697) (1,143) (4,939) (6,765) compensation expense

EBITDA 58,670 54,078 241,655 197,083

Less: Noncontrolling interest- - - 10,180 EBITDA (g)

Less: Earnings attributable 3,132 2,096 11,660 2,096 to the CPI earn-out

EBITDA attributable to PBFX 55,538 51,982 229,995 184,807

Non-cash unit-based 1,697 1,143 4,939 6,765 compensation expense

Cash interest (10,607)(12,321)(45,088) (47,081)

Maintenance capital expenditures attributable to (1,121) (2,828) (8,106) (7,441) PBFX

Distributable cash flow $45,507$37,976$181,740$137,050



See Footnotes to Earnings Release Tables

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

RECONCILIATION OF AMOUNTS REPORTED UNDER GAAP

TO EBITDA AND ADJUSTED EBITDA

(Unaudited, in thousands)

Three Months Ended Year Ended December December 31, 31, 2020 2019 2020 2019

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

Net income $30,997$29,771$147,432$108,169

Interest expense, net 10,448 12,196 44,377 46,555

Amortization of loan fees and 432 441 1,741 1,780 debt premium

Accretion on discounted 62 513 1,788 2,768 liabilities

Change in contingent (155) (790) (14,390) (790) consideration

Impairment expense - - 7,000 -

Depreciation and amortization 16,886 11,947 53,707 38,601

EBITDA 58,670 54,078 241,655 197,083

Less: Noncontrolling interest - - - 10,180 EBITDA (g)

Less: Earnings attributable to 3,132 2,096 11,660 2,096 the CPI earn-out

EBITDA attributable to PBFX 55,538 51,982 229,995 184,807

Acquisition and transaction 1,266 453 1,382 3,842 costs

Non-cash unit-based 1,697 1,143 4,939 6,765 compensation expense

East Coast Terminals 50 666 694 4,692 environmental remediation costs

PNGPC tariff true-up adjustment- - - 882

Adjusted EBITDA $58,551$54,244$237,010$200,988



See Footnotes to Earnings Release Tables

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

SEGMENT FINANCIAL INFORMATION

(Unaudited, in thousands)



Three Months Ended December 31, 2020

Transportation and Storage Corporate Consolidated Terminaling Total

Total revenue (a) $67,079 $22,008$ - $89,087

Depreciation and 7,203 9,683 - 16,886 amortization

Income (loss) from 41,707 6,182 (5,950) 41,939 operations

Other expense - - 10,942 10,942

Capital 1,865 808 - 2,673 expenditures



Three Months Ended December 31, 2019

Transportation and Storage Corporate Consolidated Terminaling Total

Total revenue (a) $73,861 $18,379$ - $92,240

Depreciation and 6,995 4,952 - 11,947 amortization

Income (loss) from 42,360 6,934 (6,373) 42,921 operations

Other expense - - 13,150 13,150

Capital 1,872 6,694 - 8,566 expenditures



Year Ended December 31, 2020

Transportation and Storage Corporate Consolidated Terminaling Total

Total revenue (a) $271,023 $89,232$ - $360,255

Depreciation and 28,308 25,399 - 53,707 amortization

Income (loss) from 169,264 44,822 (18,748) 195,338 operations

Other expense - - 47,906 47,906

Capital 8,334 3,974 - 12,308 expenditures



Year Ended December 31, 2019

Transportation and Storage Corporate Consolidated Terminaling Total

Total revenue (a) $282,745 $57,467$ - $340,212

Depreciation and 27,826 10,775 - 38,601 amortization

Income (loss) from 163,036 20,751 (24,515) 159,272 operations

Other expense - - 51,103 51,103

Capital 16,886 14,860 - 31,746 expenditures



See Footnotes to Earnings Release Tables

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

SEGMENT FINANCIAL INFORMATION (continued)

(Unaudited, in thousands)



Balance at December 31, 2020

Transportation and Storage CorporateConsolidated Terminaling Total

Total $ 715,308 $200,130$18,114$ 933,552 assets



Balance at December 31, 2019

Transportation and Storage CorporateConsolidated Terminaling Total

Total $ 726,374 $228,495$18,133$ 973,002 assets

PBF LOGISTICS LP

EARNINGS RELEASE TABLES

FOOTNOTES TO EARNINGS RELEASE TABLES

(Unaudited, in thousands, except per unit data)



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: Revenue - On October 1, 2018, we closed the East Coast Storage Assets Acquisition, which was accounted for as a business combination. In October 2019, we recommenced operations of certain of the acquired idled assets, which began revenue generating activities. As such, there was no revenue associated with the acquired idled assets prior to their recommencement. On May 31, 2019, we closed the TVPC Acquisition in which we acquired (a)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. 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. In addition, our results in the current year have been negatively affected by the impact of the COVID-19 pandemic on our business, including lower throughput at our terminals, as the industry reacts to the related economic downturn and volatile commodity markets.



(b)Calculated as the sum of the average throughput per day for each asset group for the period presented.



See "Non-GAAP Financial Measures" on page 5 for definitions of (c)EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA, distributable cash flow and coverage ratio.



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



On February 11, 2021, we announced a quarterly cash distribution of $0.30 per common unit based on the results of the fourth quarter of (e)2020. The distribution is payable on March 17, 2021 to PBFX unitholders of record at the close of business on February 25, 2021. The total distribution amount includes the expected distributions to be made related to fourth quarter earnings.



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 (f)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, 2020 and 2019 was $684,561 and $767,138, respectively.



Prior to the TVPC Acquisition, our wholly-owned subsidiary, PBFX Operating Company LLC ("PBFX Op Co"), held a 50% controlling equity 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(g)Holding. Noncontrolling interest on the 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 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.



We base our calculation of net income per limited partner unit on the(h)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 for that reporting period.

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SOURCE PBF Logistics LP