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Investor Presentation
January 2018
2
Safe Harbor Statements
This presentation contains forward-looking statements made by PBF Logistics LP (“PBFX”), PBF Energy Inc. (“PBF Energy” and together
with PBFX, the “Companies”), PBF Holding Company LLC, and their subsidiaries, and their management teams. 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 that could cause the Companies’ actual performance or results to differ materially from those expressed
in such statements. Factors that could impact such differences include, but are not limited to, changes in general economic conditions;
volatility of crude oil and other feedstock prices; fluctuations in the prices of refined products; the impact of disruptions to crude or
feedstock supply to any of our refineries, including disruptions due to problems with third party logistics infrastructure; effects of
litigation and government investigations; the timing and announcement and successful closing of any potential acquisitions and
subsequent impact of any future acquisitions on our capital structure, financial condition or results of operations; changes or proposed
changes in laws or regulations or differing interpretations or enforcement thereof affecting our business or industry, including any lifting
by the federal government of the restrictions on exporting U.S. crude oil; actions taken or non-performance by third parties, including
suppliers, contractors, operators, transporters and customers; adequacy, availability and cost of capital; work stoppages or other labor
interruptions; operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control;
inability to complete capital expenditures, or construction projects that exceed anticipated or budgeted amounts; unforeseen liabilities
associated with any acquisition; inability to successfully integrate any acquired businesses or operations; effects of existing and future
laws and governmental regulations, including environmental, health and safety regulations; and, various other factors.
Forward-looking statements reflect information, facts and circumstances only as of the date they are made. The Companies assume no
responsibility or obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other
factors affecting forward-looking information after such date.
See the Appendix for reconciliations of the differences between the non-GAAP financial measures used in this presentation, including
various estimates of EBITDA, and their most directly comparable GAAP financial measures.
3
Over 90% of revenue supported by long-term, take-
or-pay agreements
No direct commodity price exposure
Highly integrated assets
Focused on movement and storage of refinery
feedstocks and finished products
Strong alignment with PBF Energy
Financial Flexibility
Long-term capital structure with ample
liquidity for growth
Solid growth potential
Pipeline of organic projects
Target independent assets that complement
existing relationships
Partner with PBF Energy to maximize value of
embedded logistics assets
PBF Logistics LP Overview
4
$10.2
$65.5
Revenue Growth
Revenue Growth and Diversification
Storage
Transportation and Terminaling
Storage
Transportation and Terminaling
2014 Segment Revenue
Current Segment Revenue
5
$0.260
$0.310
$0.360
$0.410
$0.460
$0.510
Q2-14* Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17
MQD Incremental
Delivering Strong Distribution Growth
*Represents the annualized minimum quarterly distribution (MQD) for Q2-14, actual distribution of $0.16 equal to prorated MQD based on May 14, 2014 IPO
1.40x coverage as of Q3-17
6
PBFX Growing Asset Base is Ideally Situated
PBFX is targeting logistics assets for
feedstock movement and product
distribution that complement its existing
operations
Developing organic growth opportunities to
enhance asset base and diversify revenue
streams
Strategic third-party acquisitions allow PBF
Logistics to independently grow its revenue
base
Drop-downs from PBF Energy, as it grows,
remain a valuable source of future growth
Mid-Continent Assets
Toledo Storage Facility
Toledo LPG Truck Rack
Toledo Truck Terminal
Toledo Terminal
East Coast Assets
Paulsboro NG Pipeline
East Coast Terminals
DC Products Pipeline
DC Truck Rack (Products)
DC Truck Rack (LPG)
DC Rail Terminal
DC West Rack
Paulsboro
Toledo
Chalmette
Torrance
PADD
2
PADD
3
PADD
5
Delaware City
PADD
4
PADD
1
West Coast Assets
Torrance Valley Pipeline
Gulf Coast Assets
Chalmette Storage Facility
7
Organic Projects Deliver Incremental Growth
Two organic projects
Total project costs of ~$82 million
Expected to contribute ~$12 million in
annualized EBITDA
625,000 barrel crude oil storage tank being
constructed at PBF Energy’s Chalmette
Refinery
In service as of November 1, 2017
24-inch Paulsboro natural gas pipeline
(“PNGPL”) will connect PBF Energy’s
Paulsboro Refinery to natural gas sourced
from Marcellus and Utica regions
In-service as of August 2017
8
Third-party transactions diversify PBFX asset and
customer base
Provide synergy opportunities with PBF Energy
Extends PBF Logistics growth path by supplementing
drop-down inventory
Acquired the East Coast Terminals from Plains All
American in April 2016 at a pro forma EBITDA
multiple of ~7x
Purchase price of $100 million, plus an upfront
capital investment of ~$5 million
Acquired the Toledo Terminal from Sunoco Logistics
in April 2017 at a pro forma EBITDA multiple of less
than ~3x
Purchase price of $10 million, with
approximately ~$1 million of additional capital
investment
Directly linked to and supplied by PBF Energy’s
Toledo Refinery
Third-Party Acquisitions Expand Asset Base
9
Drop-down transactions remain one of the pillars of
PBF Logistics future growth trajectory
Completed acquisition of a controlling 50% interest
in the Torrance Valley Pipeline Company LLC
(“TVPC”) from PBF Energy at a pro forma EBITDA
multiple of ~8.75x
Purchase price of ~$175 million partially financed
through a successful ~$80 million public equity
offering
Primary crude gathering and transportation lines
that feed PBF Energy’s Torrance Refinery
TVPC owns:
189-mile San Joaquin Valley Pipeline system with
a throughput capacity of approximately 110,000
barrels per day
11 pipeline stations positioned between Belridge
and the Torrance Refinery with heavy crude
heating, pumping and storage capabilities
Torrance Valley Pipeline Drop-Down Acquisition
10
PBF's core strategy is to operate safely and
responsibly and grow and diversify
through acquisitions
Fifth largest and second most complex
independent refiner in the United States
Diversified asset base with five refineries
and 884,000 barrels per day of processing
capacity
PBF indirectly owns 100% of the general
partner and ~44% of the limited partner
interests of PBF Logistics LP (NYSE: PBFX),
and 100% of the PBFX incentive distribution
rights (“IDRs”)
Region
Throughput Capacity
(bpd)
Nelson
Complexity
Mid-continent 170,000 9.2
East Coast 370,000 12.2
Gulf Coast 189,000 12.7
West Coast 155,000 14.9
Total 884,000 12.2
Paulsboro
Toledo
Chalmette
Torrance
PADD
2
PADD
3
PADD
5
Delaware City
PADD
4
PADD
1
PBF Energy as Sponsor
11
Strong Connection with PBF Energy
Fee-based, long-term contracts provide PBFX with stable earnings
Conservative financial profile with strong liquidity provides
flexibility to grow
Demonstrated access to capital markets
Experienced management team
Focused on safety and operational excellence
PBFX’s assets are integrated with PBF’s refineries
Strategic
Midstream growth is a key component of PBF’s strategy
PBF owns ~44% of PBF Logistics and 100% of the GP
PBFX provides PBF with an additional growth vehicle to enhance
investor returns
Financial
Operational
12
PBFX’s Investment Highlights
Focus on Stable,
Take-or-Pay
Business
Maintain stable cash flow generation through predominantly long-term
contracts with minimum volume commitments
Commitment to safe and reliable operations
No direct commodity price exposure
Target 1.15x annual coverage ratio
Financial flexibility for continued distribution growth
Maintain attractive long-term distribution growth rate
Financial Flexibility
Distributable
Cash Flow
Grow the Business
Pursue third-party acquisitions focused on traditional MLP assets
Invest in organic projects and asset optimization
Support growth of PBF through additional drop-down transactions
Conservative financial profile with an emphasis on liquidity
Demonstrated ability to access capital markets
Long-term net debt-to-EBITDA target of between 3x and 4x
Appendix
14
PBFX 2018 Initial Guidance
Initial guidance provided constitutes forward-looking information and is based on current PBF Logistics operating plans using
minimum volume commitments, assumptions and configuration. Revenues, operating expenses, general and administrative
expenses, depreciation and amortization and interest expense figures include amounts related to the portion of the Torrance
Valley Pipeline Company that are currently owned by a subsidiary of PBF Energy Inc. These amounts are consolidated in the
PBF Logistics financial statements and the ownership interest of PBF Energy is reflected in non-controlling Interest. All figures
are subject to change based on market and macroeconomic factors, as well as management’s strategic decision-making and
overall Partnership performance.
($ in millions) FY 2018
Initial Guidance
Revenues $276.2
Operating expenses $86.5
SG&A (includes stock-based comp. expense for outstanding awards) $16.2
D&A $26.0
Interest expense, net $39.4
Net Income $108.1
EBITDA attributable to non-controlling interest $22.7
EBITDA to the Partnership $150.8
Maintenance capital expenditures $11.0
Regulatory capital expenditures $5.9
Units outstanding(1) 42.5 million
___________________________
1. Units outstanding at 12/31/2017 represents the fully-diluted number of units issued during the IPO, subsequent transactions and under partnership compensation
programs
15
Non-GAAP Financial Measures
The Partnership defines EBITDA as net income (loss) before net 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 attributable to noncontrolling interests and acquisitions
from affiliate companies under common control prior to the effective dates of such transactions. EBITDA is a non-GAAP 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 and EBITDA attributable to PBFX provides useful information to investors
in assessing our financial condition and results of operations. These measures 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. Due to the forward-looking nature of forecasted EBITDA, information to reconcile forecasted EBITDA
to forecasted cash flow from operating activities is not available as management is unable to project working capital changes for future periods
at this time.
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, including our affiliate note payable. We believe this measurement is also useful to
investors since our marketable securities fully collateralize our Term Loan and 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 U.S. 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.
16
Non-GAAP Financial Measures
PBF Logistics LP reconciliation of amounts under U.S. GAAP to estimated run-rate annualized EBITDA (unaudited, in millions)
Reconciliation of combined Toledo Terminal and announced organic projects estimated annualized net income to estimated run-rate EBITDA:
Estimated net income $9.3
Add: Depreciation and amortization expense 4.7
Add: Interest expense, net and other financing costs 1.0
Forecasted annualized EBITDA $15.0
Reconciliation of East Coast Terminal estimated annualized net income to estimated run-rate annualized EBITDA:
Estimated net income $8.7
Add: Depreciation and amortization expense 5.3
Add: Interest expense, net and other financing costs 1.0
Forecasted annualized EBITDA $15.0
Reconciliation of TVPC estimated annualized net income to forecasted estimated run-rate EBITDA:
Estimated net income $9.4
Add: Depreciation and amortization expense 9.0
Add: Interest expense, net and other financing costs 1.6
Forecasted annualized EBITDA $20.0
17
Segment Assets
Transportation and Terminaling Capacity Products Handled
DCR Rail Terminal 130,000 bpd unloading capacity Crude
Toledo Truck Terminal 22,500 bpd unloading capacity Crude
DCR West Rack 40,000 bpd throughput capacity Crude
Toledo Storage Facility - loading
facility
11,000 bpd throughput capacity Propane
Delaware City Products Pipeline 125,000 bpd pipeline capacity Petroleum products
Delaware City Truck Rack 76,000 bpd throughput capacity Gasoline, distillates and LPGs
East Coast Terminals ~4.2 million barrel aggregate shell capacity Refined products
Torrance Valley Pipeline 110,000 bpd pipeline capacity Crude
Toledo Terminal 10-bay truck rack and ~110,000 barrels of storage Petroleum products
Paulsboro Natural Gas Pipeline 60,000 dthpd 24” natural gas pipeline Natural gas
Storage Capacity Products Handled
Toledo Storage Facility ~3.9 million barrel aggregate shell capacity (a)
Crude, refined products and
intermediates
Chalmette Storage Tank 625,000 barrel shell capacity Crude
(a) Of the approximately 3.9 million barrel aggregate shell capacity, approximately 1.3 million barrels are dedicated to crude and approximately 2.6 million barrels are allocated
to refined products and intermediates
18
Commercial Agreements with PBF Energy
(a) PBF Holding has the option to extend the agreements for up to two additional five-year terms
(b) The Toledo Storage Facility Storage and Terminaling Services Agreement- Terminaling Facility and the Toledo Storage Facility Storage and Terminaling Services Agreement- Storage Facility are referred
to herein collectively as the “Toledo Storage Facility Storage and Terminaling Services Agreement”
(c) The Delaware City Truck Loading Services Agreement- Gasoline and the Delaware City Truck Loading Services Agreement- LPGs are referred to herein collectively as the “Delaware City Truck Loading
Services Agreement”
(d) Reflects the overall capacity of the storage facility. The storage MVC is subject to effective operating capacity of each tank which can be impacted by routine tank maintenance and other factors
(e) Maximum daily quantity of 60,000 dekatherm per day
Service Agreements
Initiation
Date Initial Term
Renewals
(a) MVC
Transportation and Terminaling
Delaware City Rail Terminaling Services Agreement 5/8/2014 7 years, 8 months 2 x 5 85,000 bpd
Toledo Truck Unloading & Terminaling Services Agreement 5/8/2014 7 years, 8 months 2 x 5 5,500 bpd
Delaware West Ladder Rack Terminaling Services Agreement 10/1/2014 7 years, 3 months 2 x 5 40,000 bpd
Toledo Storage Facility Storage and Terminaling Services Agreement- Terminaling Facility (b) 12/12/2014 10 years 2 x 5 4,400 bpd
Delaware Pipeline Services Agreement 5/15/2015 10 years, 8 months 2 x 5 50,000 bpd
Delaware Pipeline Services Agreement- Magellan Connection 11/1/2016 2 years, 5 months N/A 14,500 bpd
Delaware City Truck Loading Services Agreement- Gasoline (c) 5/15/2015 10 years, 8 months 2 x 5 30,000 bpd
Delaware City Truck Loading Services Agreement- LPGs (c) 5/15/2015 10 years, 8 months 2 x 5 5,000 bpd
Torrance Valley Pipeline Transportation Services Agreement- North Pipeline 8/31/2016 10 years 2 x 5 50,000 bpd
Torrance Valley Pipeline Transportation Services Agreement- South Pipeline 8/31/2016 10 years 2 x 5 70,000 bpd
Torrance Valley Pipeline Transportation Services Agreement- Midway Storage Tank 8/31/2016 10 years 2 x 5 55,000 barrels (d)
Torrance Valley Pipeline Transportation Services Agreement- Emido Storage Tank 8/31/2016 10 years 2 x 5
900,000 barrels per
month
Torrance Valley Pipeline Transportation Services Agreement- Belridge Storage Tank 8/31/2016 10 years 2 x 5
770,000 barrels per
month
Paulsboro Natural Gas Pipeline Services Agreement 8/3/2017 15 years Evergreen Note (e)
Toledo Terminal Services Agreement 5/1/2016 1 year Evergreen N/A
Storage
Toledo Storage Facility Storage and Terminaling Services Agreement- Storage Facility (b) 12/12/2014 10 years 2 x 5 3,849,271 barrels (d)
Chalmette Storage Agreement 2/15/2017 10 years 2 x 5 625,000 barrels
