Earnings Update
Rating: Buy, Increasing Price Target by $2 to $17
PBF Logistics (NYSE:PBFX) reported third-quarter 2020 adjusted EPS of $.71 per common unit, beating consensus by $.16 per share. Revenues for the third quarter totaled $89.01 million, unchanged from the prior quarter.
The solid financial performance was driven by the Partnership’s strong minimum volume commitments (MVC) and base-load region demand.
Adjusted EBITDA attributable to PBFX was $59.3 million, sequentially higher by .7%. The Partnership reported Adjusted EBITDA attributable to PBFX that was $2.6 million higher than consensus. For the third quarter of 2020, the Partnership reported DCF of $48.5 million and total distributions of $18.8 million. DCF coverage ratio of 2.57x for the quarter.
Quarterly Cash Distribution
The board of Directors of PBFX declared a regular quarterly cash distribution of $.30 per common unit, payable on November 30, 2020. Currently, the yield on PBFX is 15.3%.
Balance Sheet
As of Sept. 30, 2020, the Partnership had total liquidity of $310 million, comprised of $27.9 million in cash and $282.1 million available under its revolving credit facility.
We are maintaining our Buy rating but increasing our price target by $2 to $17 per common unit for PBFX. Our higher price target is based on our new 2021 estimated Adjusted EBITDA of $236 versus our prior estimate of $222 million.