PBF Logistics LP (PBFX): history, ownership, mission, how it works & makes money

A Brief History of PBF Logistics LP (PBFX)

Formation and Initial Public Offering

PBF Logistics LP was formed in 2013 as a subsidiary of PBF Energy Inc., which specializes in providing logistics services related to the transportation and storage of crude oil and refined petroleum products. The company went public on February 7, 2014, raising approximately $250 million during its initial public offering (IPO). The shares were priced at $21.00 per unit.

Acquisitions and Expansion

In 2015, PBF Logistics expanded its operations significantly by acquiring various assets from third parties. The purchase included a network of terminals, pipelines, and storage facilities. The total value of the acquisitions was about $230 million.

• Acquired assets included:
• Pipelines in the Gulf Coast region
• Refined products terminals in the Midwest
• Crude oil transportation infrastructure

Financial Performance

As of Q2 2023, PBF Logistics reported revenues exceeding $386 million, marking a significant increase from $300 million in 2022. The company maintained a net income of approximately $80 million for the same quarter.

Distributions and Dividends

PBF Logistics LP has consistently returned capital to its unitholders through distributions. In 2022, the company declared total distributions of $2.10 per unit, with quarterly distributions averaging $0.525. For the first half of 2023, distributions were maintained at $0.525 per unit.

Current Operations and Market Position

The company operates a comprehensive logistics network that includes:

• Over 500 miles of pipelines
• Multiple terminal facilities located strategically across major markets
• Storage capacity exceeding 11 million barrels of crude oil and refined products

PBF Logistics has positioned itself as a vital player in the logistics sector of the energy industry, effectively serving major refineries and distribution networks across the United States.

Financial Overview (2022-2023)

Future Outlook

Looking ahead, PBF Logistics is focused on enhancing its operational efficiencies and expanding its footprint in the logistics sector of the energy market. The company aims to explore additional asset acquisition opportunities that could further cement its market position.

A Who Owns PBF Logistics LP (PBFX)

Corporate Structure

PBF Logistics LP (PBFX) operates as a publicly traded limited partnership on the New York Stock Exchange. As of the latest data, PBF Logistics is primarily owned by PBF Energy Inc., which holds a significant interest in the partnership.

Ownership Breakdown

The ownership structure of PBF Logistics is composed of both institutional investors and individual shareholders. As of September 30, 2023, the following table illustrates the major shareholders and their respective ownership stakes:

Insider Ownership

Insider ownership is also notable. Key executives within PBF Logistics and PBF Energy hold a considerable portion of shares, which contributes to aligning their interests with those of the shareholders. The table below summarizes the insider holdings as of the most recent report:

Market Performance

PBF Logistics LP has shown variable market performance. As of October 2023, the market capitalization of PBFX was approximately $1.2 billion, with a share price fluctuating around $14.50. The following table presents key financial metrics:

Institutional Ownership Trends

The ownership by institutional investors continues to grow as more funds recognize PBF Logistics as a potential income-generating investment, particularly due to its attractive dividend yield. As of Q3 2023, institutional ownership stood at approximately 60%, indicating strong confidence from these entities.

Shareholder Meetings and Voting Rights

Shareholders of PBF Logistics LP participate in annual meetings where critical decisions regarding the partnership are made, including the election of Board members and approval of major corporate transactions. Voting rights are proportionate to the number of units held, giving significant voice to larger shareholders.

PBF Logistics LP (PBFX) Mission Statement

Mission Statement Overview

PBF Logistics LP (PBFX) aims to provide safe, reliable, and efficient transportation and logistics solutions for the petroleum and related industries. The mission emphasizes a commitment to integrity, operational excellence, and customer satisfaction.

Core Values

• Safety: Prioritizing the safety of employees, customers, and the environment.
• Integrity: Conducting business with transparency and accountability.
• Operational Excellence: Striving for efficiency and effectiveness in all operations.
• Customer Focus: Meeting and exceeding customer expectations.

Strategic Goals

PBF Logistics LP's strategic goals include:

• Expanding terminal infrastructure.
• Increasing throughput capacity.
• Enhancing service offerings.
• Improving customer relationships.

Financial Performance

According to the latest financial reports for 2023, PBF Logistics LP reported:

Market Position

PBF Logistics LP operates in a competitive market, ranking among the key players in the logistics sector. As of Q3 2023, the company held approximately:

• 15% market share in logistics services for refined products.
• 18% market share in terminal and tankage services.

Service Offerings

The company provides a range of services including:

• Terminaling Services
• Transportation Services
• Distribution and Pipeline Services
• Logistics Management

Investment in Technology

PBF Logistics LP has invested significantly in technology to enhance operational efficiency. In 2023, the investments amounted to:

Community Engagement

The company is dedicated to community engagement, with investments in local initiatives totaling:

• $2 million for educational programs.
• $1 million for environmental sustainability efforts.

Conclusion

This chapter provides a comprehensive overview of PBF Logistics LP's mission statement, core values, strategic goals, financial performance, market position, service offerings, technology investments, and community engagement initiatives, reflecting the company's commitment to excellence and responsibility in logistics and transportation services.

How PBF Logistics LP (PBFX) Works

Overview of PBF Logistics LP

PBF Logistics LP (PBFX) operates as a master limited partnership and is primarily engaged in the transportation, storage, and handling of crude oil and refined petroleum products. The partnership is a subsidiary of PBF Energy Inc., providing critical logistical services across the United States.

Business Segments

• Transportation
• Storage
• Handling of refined products

Financial Performance

As of Q2 2023, PBF Logistics LP reported the following financial metrics:

Transportation Services

PBF Logistics focuses on transporting crude oil and refined products through pipelines and trucking services. They operate an extensive network that includes:

• Approximately 1,000 miles of pipeline
• Logistics facilities strategically located near refineries
• Tank trucks for regional distribution

Storage Facilities

The company owns and operates various storage facilities, providing significant capacity for crude oil and refined product storage:

Market Position

As of 2023, PBF Logistics holds a competitive position in the logistics sector, with operations concentrated in key U.S. markets:

• East Coast
• Gulf Coast
• Midwest

Growth Strategy

The company’s growth strategy is focused on:

• Acquisition of additional logistics assets
• Expansion of existing pipeline systems
• Enhancement of storage capabilities

Recent Developments

In 2023, PBF Logistics announced an expansion project aimed at increasing its transportation capacity:

• Investment amount: $50 million
• Expected completion: Q1 2024
• Projected increase in capacity: 5 million barrels

Regulatory Environment

PBF Logistics operates under stringent regulations set by various federal and state agencies:

• Pipelines regulated by the Department of Transportation (DOT)
• Environmental compliance under the Environmental Protection Agency (EPA)
• Storage safety regulations enforced by local agencies

Partnership in the Supply Chain

PBF Logistics plays a significant role in the supply chain, linking production to distribution:

• Collaboration with refineries for seamless logistics
• Coordination with local and federal transport authorities
• Engagement with industry stakeholders for regulatory compliance

Risk Management

The company employs a robust risk management framework to mitigate operational and financial risks:

• Insurance policies covering liabilities
• Hedging strategies for price volatility
• Regular safety audits and compliance checks

How PBF Logistics LP (PBFX) Makes Money

Core Business Segments

PBF Logistics LP operates primarily in the logistics and transportation sector, providing services to the refining and marketing segments of PBF Energy Inc. The company primarily generates revenue through the following core business segments:

• Logistics Services
• Terminal Services
• Pipeline Transportation
• Storage Services

Revenue Streams

The revenue streams of PBF Logistics LP are diverse, relying on both contractual agreements and market dynamics.

• Long-term contracts account for approximately 80% of revenue.
• Spot market transactions contribute around 20% of revenue.

Financial Performance Metrics

As of Q2 2023, PBF Logistics reported significant financial metrics that exemplify its revenue-generating capability:

Asset Ownership and Utilization

PBF Logistics LP owns and operates multiple assets critical for its business model:

• Approximately 1,300 miles of pipelines.
• 8 terminals with a combined capacity of over 15 million barrels of storage.
• Strategic locations near major refining centers in the U.S.

Market Dynamics

The company's profitability is influenced by various market factors:

• Crude oil and refined product price fluctuations impact revenue.
• Transportation demand influenced by refinery utilization rates.
• Regulatory environment and compliance costs.

Cost Structure

PBF Logistics LP’s operational costs include:

• Labor Costs: Approximately $30 million annually.
• Maintenance and Repairs: Around $25 million annually.
• Depreciation: Estimated at $20 million annually.
• Administrative Expenses: About $15 million annually.

Long-term Growth Strategy

PBF Logistics focuses on several strategic initiatives to enhance revenue:

• Expansion of existing terminal capacity by 20% by 2025.
• Increasing pipeline throughput through infrastructure upgrades.
• Acquisitions of complementary logistics assets.

Distribution and Dividends

The company maintains a policy of returning value to shareholders:

• Annual Dividend: $1.85 per share.
• Dividend Yield: 10.6% as of October 2023.

Recent Developments

Recent developments affecting the company's revenue generation include:

• Completion of a $50 million expansion project at a key terminal.
• New contracts secured with multiple independent refiners.

Market Position

PBF Logistics LP holds a substantial market position in the logistics sector:

• Market Share: Approximately 10% in the U.S. logistics industry.
• Competes with major players like Plains All American Pipeline and Magellan Midstream.