UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)



x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: ~~September~~June 30, ~~2017~~2018



¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-36446

PBF LOGISTICS LP

(Exact name of registrant as specified in its charter)



DELAWARE		35-2470286
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

One Sylvan Way, Second Floor Parsippany, New Jersey		07054
(Address of principal executive offices)		(Zip Code)

(973) 455-7500

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer o	Accelerated filer þ	Non-accelerated filer o	Smaller reporting company o Emerging growth company oþ

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

As of ~~October~~July 31, ~~2017,~~2018, there were ~~41,894,846~~45,344,668 common units outstanding.

PBF LOGISTICS LP

TABLE OF CONTENTS

EXPLANATORY NOTE

PBF Logistics LP (“PBFX” or the “Partnership”) is a Delaware limited partnership formed in February 2013. PBF Logistics GP LLC (“PBF GP” or “our general partner”) serves as the general partner of PBFX. PBF GP is wholly-owned by PBF Energy Company LLC (“PBF LLC”). PBF Energy Inc. (“PBF Energy”) is the sole managing member of PBF LLC, and as of ~~September~~June 30, ~~2017,~~2018, owned ~~96.6%~~99.0% of the total economic interest in PBF LLC. In addition, PBF LLC is the sole managing member of PBF Holding Company LLC (“PBF Holding”), a Delaware limited liability company and affiliate of PBFX. PBF LLC owns 18,459,497 of PBFX’s common units constituting an aggregate ~~44.1%~~43.9% limited partner interest in PBFX and owns all of PBFX’s incentive distribution rights (“IDRs”), with the remaining ~~55.9%~~56.1% limited partner interest owned by public unitholders as of ~~September~~June 30, ~~2017.~~2018.

Unless the context otherwise requires, references in this Quarterly Report on Form 10-Q (this “Form 10-Q”) to “Predecessor,” and “we,” “our,” “us,” or like terms, when used in the context of periods prior to ~~PBFX’s initial public offering, which closed on May 14, 2014 (the “Offering”),~~the completion of certain acquisitions from PBF LLC, refer to PBF MLP Predecessor, our predecessor for accounting purposes (our “Predecessor”), which includes assets, liabilities and results of operations of certain crude oil, refined products, natural gas and ~~refined product~~intermediates transportation, terminaling and storage assets, previously operated and owned by certain of PBF Holding’s ~~subsidiaries, Delaware City Refining Company LLC (“DCR”), Toledo Refining Company LLC (“TRC”),~~currently and ~~PBF Holding’s~~ previously held ~~subsidiaries, Delaware Pipeline Company LLC (“DPC”), Torrance Valley Pipeline Company LLC (“TVPC”), and Paulsboro Natural Gas Pipeline Company LLC (“PNGPC”).~~subsidiaries. As of ~~September~~June 30, ~~2017,~~2018, PBF Holding, together with its subsidiaries, owns and operates five oil refineries and related

facilities in North America. PBF Energy, through its ownership of PBF LLC, controls all of the business and affairs of PBFX and PBF Holding.

References in this Form 10-Q to “PBF Logistics LP,” “PBFX,” the “Partnership” and “we,” “our,” “us,” or like terms used in the context of periods on or after ~~May 14, 2014,~~the completion of certain acquisitions from PBF LLC, refer to PBF Logistics LP and its subsidiaries.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Form 10-Q (including information incorporated by reference) contains certain “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995, which involve risks and uncertainties. You can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” or “anticipates” or similar expressions that relate to our strategy, plans or intentions. All statements we make relating to our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results or to our expectations regarding future industry trends are forward-looking statements. In addition, we, through our senior management, from time to time, make forward-looking public statements concerning our expected future operations and performance and other developments. These forward-looking statements are subject to risks and uncertainties that may change at any ~~time, and,~~time; therefore, our actual results may differ materially from those that we expected. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors that could affect our actual results.

Important factors that could cause actual results to differ materially from our expectations, which we refer to as “cautionary statements,” are disclosed under “Item 1A. Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Form 10-Q; in our Annual Report on Form 10-K for the year ended December 31, ~~2016,~~2017, which we refer to as our ~~2016~~2017 Form ~~10-K; in our Form 8-K issued May 11, 2017, which retrospectively adjusted items 6, 7 and 8 of our 2016 Form~~ 10-K ~~to give effect to the acquisition of PNGPC,~~ and in our other filings with the U.S. Securities and Exchange Commission (“SEC”). All forward-looking information in this Form 10-Q and subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements. Some of the factors that we believe could affect our results include:

our limited operating history as a separate public partnership;

changes in general economic conditions;

our ability to make, complete and integrate acquisitions from affiliates or third parties;

our ability to have sufficient cash from operations to enable us to pay the minimum quarterly distribution;

competitive conditions in our industry;

actions taken by our customers and competitors;

the supply of, and demand for, crude oil, refined products, natural gas and logistics services;

our ability to successfully implement our business plan;

our dependence on PBF Energy for a substantial majority of our revenues ~~which~~ subjects us to the business risks of PBF Energy, which includes the possibility that contracts will not be renewed because they are no longer beneficial for PBF Energy;

a substantial majority of our revenue is generated at certain of PBF Energy’s facilities, and any adverse development at any of these facilities could have a material adverse effect on us;

our ability to complete internal growth projects on time and on budget;

the price and availability of debt and equity financing;

operating hazards and other risks incidental to handling crude oil, petroleum products and natural gas;

natural disasters, weather-related delays, casualty losses and other matters beyond our control;

interest rates;

labor relations;

changes in the availability and cost of capital;

the effects of existing and future laws and governmental regulations, including those related to the shipment of crude oil by trains;

changes in insurance markets impacting costs and the level and types of coverage available;

the timing and extent of changes in commodity prices and demand for PBF Energy’s refined products and natural gas and the differential in the prices of different crude oils;

the suspension, reduction or termination of PBF Energy’s obligations under our commercial agreements;

disruptions due to equipment interruption or failure at our facilities, PBF Energy’s facilities or third-party facilities on which our business is dependent;

incremental costs as a separate public partnership;

our general partner and its affiliates, including PBF Energy, have conflicts of interest with us and limited duties to us and our unitholders, and they may favor their own interests to the detriment of us and our other common unitholders;

our partnership agreement restricts the remedies available to holders of our common units for actions taken by our general partner that might otherwise constitute breaches of fiduciary duty;

holders of our common units have limited voting rights and are not entitled to elect our general partner or its directors;

our tax treatment depends on our status as a partnership for U.S. federal income tax purposes, as well as our not being subject to a material amount of entity level taxation by individual states;

changes at any time (including on a retroactive basis) in the tax treatment of publicly traded partnerships, including related impacts on potential dropdown transactions with PBF LLC, or an investment in our common units;

our unitholders will be required to pay taxes on their share of our taxable income even if they do not receive any cash distributions from us;

the effects of future litigation; and

other factors discussed elsewhere in this Form 10-Q.

We caution you that the foregoing list of important factors may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this Form 10-Q may not in fact occur. Accordingly, investors should not place undue reliance on those statements.

Our forward-looking statements speak only as of the date of this Form 10-Q. Except as required by applicable law, including the securities laws of the United States, we undertake no obligation to update or revise any forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing.

PART 1 - FINANCIAL INFORMATION

Item 1. Financial Statements

PBF LOGISTICS LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except unit data)


	September 30, 2017			December 31, 2016			June 30, 2018			December 31, 2017
ASSETS
Current assets:
Cash and cash equivalents	$	39,420		$	64,221		$	19,681		$	19,664
Marketable securities - current	—			40,024
Accounts receivable - affiliates	36,045			37,863			31,473			40,817
Accounts receivable	1,106			4,294			2,500			1,423
Prepaid expenses and other current assets	2,083			1,657
Prepaids and other current assets							1,551			1,793
Total current assets	78,654			148,059			55,205			63,697
Property, plant and equipment, net	675,793			608,802			710,412			673,823
Goodwill							6,332			—
Other non-current assets	30			—			5,807			30
Total assets	$	754,477		$	756,861		$	777,756		$	737,550

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable - affiliates	$	19,938		$	7,631		$	6,745		$	8,352
Accounts payable and accrued liabilities	29,917			20,871			13,709			19,794
Current portion of long-term debt	—			39,664
Affiliate note payable	11,600			—
Deferred revenue	991			952			1,152			1,438
Total current liabilities	62,446			69,118			21,606			29,584
Long-term debt	533,136			532,011			603,581			548,793
Other long-term liabilities	2,070			3,161			1,825			2,078
Total liabilities	597,652			604,290			627,012			580,455

Commitments and contingencies (Note 9)

Equity:
Net Investment - Predecessor	—			6,231
Common unitholders (41,894,846 and 25,844,118 units issued and outstanding, as of September 30, 2017 and December 31, 2016, respectively)⁽¹⁾	(18,453		)	241,275
Subordinated unitholder - PBF LLC (0 and 15,886,553 units issued and outstanding, as of September 30, 2017 and December 31, 2016, respectively)	—			(276,083		)
Common unitholders (42,073,062 and 41,900,708 units issued and outstanding, as of June 30, 2018 and December 31, 2017, respectively)							(21,709		)	(17,544		)
IDR holder - PBF LLC	2,526			1,266			3,415			2,736
Total PBF Logistics LP equity	(15,927		)	(27,311		)	(18,294		)	(14,808		)
Noncontrolling interest	172,752			179,882			169,038			171,903
Total equity	156,825			152,571			150,744			157,095
Total liabilities and equity	$	754,477		$	756,861		$	777,756		$	737,550

(1) Subsequent to the conversion of the PBFX subordinated units held by PBF LLC, common units held by the public and PBF LLC are shown in total. Refer to Notes 6 “Equity” and 8 “Net Income per Unit” in the accompanying Notes to Condensed Consolidated Financial Statements for further discussion regarding the subordinated units’ conversion.

See Notes to Condensed Consolidated Financial Statements.

PBF LOGISTICS LP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

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


	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016*			2017			2016*			2018			2017			2018			2017
Revenue:
Affiliate	$	62,359		$	43,842		$	176,916		$	118,356		$	63,785		$	58,355		$	124,649		$	114,557
Third-party	3,135			4,591			11,384			7,285			3,613			3,974			6,788			8,249
Total revenue	65,494			48,433			188,300			125,641			67,398			62,329			131,437			122,806

Costs and expenses:
Operating and maintenance expenses	15,930			12,903			47,203			26,885			19,111			15,504			37,159			31,273
General and administrative expenses	3,534			4,420			12,947			13,896			6,488			6,098			10,779			9,413
Depreciation and amortization	5,610			5,347			16,672			9,543			6,919			5,710			13,414			11,062
Total costs and expenses	25,074			22,670			76,822			50,324			32,518			27,312			61,352			51,748

Income from operations	40,420			25,763			111,478			75,317			34,880			35,017			70,085			71,058

Other expense:
Interest expense, net	(7,416		)	(7,280		)	(22,493		)	(21,298		)	(10,029		)	(7,509		)	(19,614		)	(15,077		)
Amortization of loan fees	(332		)	(416		)	(1,125		)	(1,261		)
Amortization of loan fees and debt premium													(396		)	(377		)	(759		)	(793		)
Net income	32,672			18,067			87,860			52,758			24,455			27,131			49,712			55,188
Less: Net loss attributable to Predecessor	—			(4,428		)	(150		)	(5,085		)	—			—			—			(150		)
Less: Net income attributable to noncontrolling interest	3,799			1,621			11,218			1,621			4,363			3,820			8,385			7,419
Net income attributable to the partners	28,873			20,874			76,792			56,222			20,092			23,311			41,327			47,919
Less: Net income attributable to the IDR holder	2,526			1,125			6,319			2,765			3,415			2,107			6,370			3,793
Net income attributable to PBF Logistics LP unitholders	$	26,347		$	19,749		$	70,473		$	53,457		$	16,677		$	21,204		$	34,957		$	44,126

Net income per limited partner unit⁽¹⁾:
Net income per limited partner unit:
Common units - basic	$	0.63		$	0.50		$	1.69		$	1.44		$	0.39		$	0.49		$	0.83		$	1.04
Common units - diluted	0.63			0.50			1.69			1.44			0.39			0.49			0.83			1.04
Subordinated units - basic and diluted	—			0.50			1.61			1.45			—			0.52			—			1.07

Weighted-average limited partner units outstanding⁽¹⁾:
Weighted-average limited partner units outstanding:
Common units - basic	42,127,288			23,492,796			33,280,957			21,094,154			42,231,119			31,428,577			42,176,202			28,784,479
Common units - diluted	42,161,008			23,571,691			33,309,555			21,103,919			42,294,616			31,485,563			42,190,136			28,788,463
Subordinated units - basic and diluted	—			15,886,553			8,787,068			15,886,553			—			10,649,228			—			13,253,423

Cash distributions declared per unit	$	0.48		$	0.44		$	1.41		$	1.29
Cash distribution declared per unit													$	0.4950		$	0.4700		$	0.9850		$	0.9300

* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition (as defined in Note 1 “Description of the Business and Basis of Presentation” in the accompanying Notes to Condensed Consolidated Financial Statements).

(1) PBFX bases its calculation of net income per limited partner unit on the weighted-average number of limited partner units outstanding during the period. The weighted-average number of common and subordinated units reflects the conversion of the subordinated units to common units on June 1, 2017. Refer to Notes 6 “Equity” and 8 “Net Income per Unit” in the accompanying Notes to Condensed Consolidated Financial Statements for further discussion.

See Notes to Condensed Consolidated Financial Statements.

PBF LOGISTICS LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)


	Nine Months Ended September 30,						Six Months Ended June 30,
	2017			2016*			2018			2017
Cash flows from operating activities:
Net income	$	87,860		$	52,758		$	49,712		$	55,188
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	16,672			9,543			13,414			11,062
Amortization of deferred financing fees	1,125			1,261
Amortization of loan fees and debt premium							759			793
Unit-based compensation expense	4,515			3,673			3,497			3,708
Changes in operating assets and liabilities:
Accounts receivable - affiliates	818			(6,322		)	9,344			5,454
Accounts receivable	3,188			(3,981		)	(1,077		)	2,412
Prepaid expenses and other current assets	(329		)	2,234
Prepaids and other current assets							242			(595		)
Accounts payable - affiliates	500			(1,077		)	(1,607		)	7,051
Accounts payable and accrued liabilities	7,705			9,563			(5,326		)	6,412
Deferred revenue	39			889			(286		)	277
Other assets and liabilities	(1,128		)	(256		)	(1,302		)	(1,109		)
Net cash provided by operations	120,965			68,285
Net cash provided by operating activities							67,370			90,653

Cash flows from investing activities:
Plains Asset Purchase	—			(98,373		)
Toledo Terminal Acquisition	(10,097		)	—
Knoxville Terminals Purchase							(58,000		)	—
Toledo Products Terminal Acquisition							—			(10,097		)
Expenditures for property, plant and equipment	(61,344		)	(8,043		)	(5,521		)	(46,288		)
Purchase of marketable securities	(75,036		)	(1,779,997		)
Purchases of marketable securities							—			(75,036		)
Maturities of marketable securities	115,060			1,954,274			—			115,060
Net cash (used in) provided by investing activities	(31,417		)	67,861
Net cash used in investing activities							(63,521		)	(16,361		)

Cash flows from financing activities:
Proceeds from issuance of common units, net of underwriters’ discount and commissions	—			138,255
Distribution to PBF LLC related to Acquisitions from PBF	—			(175,000		)
Distributions to unitholders	(62,794		)	(48,043		)	(46,611		)	(40,998		)
Distributions to TVPC members	(17,348		)	—			(11,250		)	(12,254		)
Contribution from parent	5,457			4,076			—			5,457
Proceeds from revolving credit facility	—			174,700			64,000			—
Repayment of revolving credit facility	—			(30,000		)	(9,700		)	—
Repayment of term loan	(39,664		)	(174,536		)	—			(39,664		)
Deferred financing costs	—			(5		)	(271		)	—
Net cash used in financing activities	(114,349		)	(110,553		)	(3,832		)	(87,459		)

Net change in cash and cash equivalents	(24,801		)	25,593			17			(13,167		)
Cash and cash equivalents at beginning of year	64,221			18,678			19,664			64,221
Cash and cash equivalents at end of period	$	39,420		$	44,271		$	19,681		$	51,054

Supplemental disclosure of non-cash investing and financing activities:
Contribution of net assets from PBF LLC	$	—		$	15
Accrued capital expenditures	14,859			738			$	24		$	12,943
Issuance of affiliate note payable	11,600			—			—			11,600

See Notes to Condensed Consolidated Financial Statements.

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM,~~ UNIT AND PER UNIT DATA)

1. DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION

PBFX engages in the receiving, handling, storage and transferring of crude oil, refined products, natural gas and intermediates. The Partnership does not take ownership of or receive any payments based on the value of the crude oil, products, natural gas or intermediates that it handles and does not engage in the trading of any commodities. PBFX’s assets are integral to the operations of PBF Holding’s ~~refineries.~~

~~On February 28, 2017, the Partnership’s wholly-owned subsidiary, PBFX Operating Company LP (“PBFX Op Co”), acquired from PBF LLC all the issued~~refineries, and outstanding limited liability company interests of Paulsboro Natural Gas Pipeline Company LLC (“PNGPC”) for an aggregate purchase price of $11,600 (the “PNGPC Acquisition”). PNGPC owns and operates an existing interstate natural gas pipeline which serves PBF Holding’s Paulsboro Refinery (the “Paulsboro Natural Gas Pipeline”) and is subject to regulation by the Federal Energy Regulatory Commission (“FERC”). In connection with the PNGPC Acquisition, the Partnership constructed a new pipeline (the “New Pipeline”) to replace the existing pipeline, which commenced services in August 2017. This acquisition was accounted for as a transfer of assets between entities under common control under U.S. generally accepted accounting principles (“GAAP”). Refer to Note 2 “Acquisitions” of the Notes to Condensed Consolidated Financial Statements for further discussion regarding the PNGPC Acquisition.

Effective February 2017, PBFX Op Co assumed construction of a crude oil storage tank at PBF Holding’s Chalmette Refinery (the “Chalmette Storage Tank”), which is expected to be in service and operational during the fourth quarter of 2017. PBFX Op Co and Chalmette Refining, L.L.C. (“Chalmette Refining”), a wholly-owned subsidiary of PBF Holding, have entered into a twenty-year lease for the premises upon which the tank will be located and the Project Management Agreement (as defined in Note 10 “Related Party Transactions” of the Notes to Condensed Consolidated Financial Statements) pursuant to which Chalmette Refining has managed the construction of the tank.

On April 17, 2017, the Partnership’s wholly-owned subsidiary, PBF Logistics Products Terminals LLC (“PLPT”), acquired the Toledo, Ohio refined products terminal assets (the “Toledo Terminal”) from Sunoco Logistics Partners L.P. (the “Seller”) for an aggregate purchase price of $10,000, plus working capital (the “Toledo Terminal Acquisition”). The Toledo Terminal is directly connected to, and currently supplied by, PBF Holding’s Toledo Refinery. This acquisition was accounted for as a business combination under GAAP. Refer to Note 2 “Acquisitions” of the Notes to Condensed Consolidated Financial Statements for further discussion regarding the Toledo Terminal Acquisition.

Subsequent to the Partnership’s initial public offering (the “Offering”), the Acquisitions from PBF (as defined below), the purchase of the four refined product terminals located in and around Philadelphia (the “East Coast Terminals”) and the Toledo Terminal Acquisition,result, the Partnership continues to generate a substantial majority of its revenue from transactions with PBF Holding. Additionally, certain of PBFX’s assets also generate revenue from third-party transactions.

On April 16, 2018, the Partnership’s wholly-owned subsidiary, PBF Logistics Products Terminals LLC (“PLPT”), completed the purchase of two refined product terminals located in Knoxville, Tennessee, which include product tanks, pipeline connections to the Colonial and Plantation pipeline systems and truck loading facilities (the “Knoxville Terminals”) from Cummins Terminals, Inc. (“Cummins”) for total cash consideration of approximately $58,000, excluding working capital adjustments (the “Knoxville Terminals Purchase”). This acquisition was accounted for as a business combination under U.S. generally accepted accounting principles (“GAAP”). Refer to Note 3 “Acquisitions” of the Notes to Condensed Consolidated Financial Statements for further discussion regarding the Knoxville Terminals Purchase.

Principles of Combination and Consolidation and Basis of Presentation

In connection with, ~~the Offering, PBF LLC contributed the assets, liabilities~~ and ~~results of operations of certain crude oil terminaling assets~~subsequent to, ~~the Partnership. The assets consisted of a double loop track with ancillary~~

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~

~~pumping and unloading equipment (the “DCR Rail Terminal”~~PBFX’s initial public offering (“IPO”) ~~and a crude truck unloading terminal consisting of lease automatic custody transfer (“LACT”) units (the “Toledo Truck Terminal”).~~

~~Subsequent to the Offering,~~, the Partnership has acquired certain assets from PBF LLC a heavy crude oil rail unloading facility at the Delaware City Refinery (the “DCR West Rack”), a tank farm and related facilities, which included a propane storage and loading facility (the “Toledo Storage Facility”), an interstate petroleum products pipeline (the “Delaware City Products Pipeline”) and truck loading rack (the “Delaware City Truck Rack”), which are collectively(collectively referred to as the ~~“Delaware City Products Pipeline and Truck Rack,”~~“Contributed Assets”). The acquisitions completed subsequent to the ~~San Joaquin Valley pipeline system, which consists~~IPO were made through a series of ~~the M55, M1 and M70 crude pipeline systems including pipeline stations~~drop-down transactions with ~~storage capacity and truck unloading capacity (the “Torrance Valley Pipeline”), and the Paulsboro Natural Gas Pipeline. These transactions are collectively~~PBF LLC (collectively referred to as the “Acquisitions from PBF.” Subsequent to the Acquisitions from PBF, the DCR Rail Terminal, the Toledo Truck Terminal, the DCR West Rack, the Toledo Storage Facility, the Delaware City Products Pipeline and Truck Rack, the Torrance Valley Pipeline and the Paulsboro Natural Gas Pipeline are collectively referred to as the “Contributed Assets.”PBF”). The assets, liabilities and results of operations of the Contributed Assets prior to their acquisition by PBFX are collectively referred to as the “Predecessor.” The transactions through which PBFX acquired the Contributed Assets were transfers of assets between entities under common control. Accordingly, the accompanying condensed consolidated financial statements and related notes present the results of operations and cash ~~flow~~flows of our Predecessor for all periods presented prior to the effective date of each transaction. The financial statements of our Predecessor have been prepared from the separate records maintained by PBF Energy and may not necessarily be indicative of the conditions that would have existed or the results of operations if the Predecessor had been operated as an unaffiliated entity. See ~~(i)~~ the Annual Report on Form 10-K for the year ended December 31, ~~2016~~2017 (the ~~“2016~~“2017 Form 10-K”) ~~and Form 8-K issued May 11, 2017, which retrospectively adjusted items 6, 7 and 8 of the 2016 Form 10-K to give effect to the acquisition of PNGPC~~ for additional information regarding the Acquisitions from PBF and the commercial agreements and amendments to other agreements with related parties executed in connection with these ~~acquisitions, and (ii) Note 2 “Acquisitions” of the Notes to Condensed Consolidated Financial Statements for further discussion regarding the PNGPC Acquisition.~~acquisitions.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, PBFX has included all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and the results of operations and cash flows of PBFX for the periods presented. The results of operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 are not necessarily indicative of the results that may be expected for the full year.

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

The Predecessor generally did not historically operate its respective assets for the purpose of generating revenues independent of other PBF Energy businesses prior to ~~the Offering~~PBFX’s IPO or for assets acquired in the Acquisitions from PBF, ~~with the exception of the Delaware City Products Pipeline,~~ prior to the effective dates of each transaction. All intercompany accounts and transactions have been eliminated.

~~Recent~~Summary of Significant Accounting ~~Pronouncements~~Policies

Goodwill

Goodwill, related to an acquisition, is calculated as the excess of the purchase price over the fair value of the identifiable net assets and is carried at cost. Goodwill is not amortized for financial reporting purposes; however, it is subject to annual assessment to determine if an impairment of goodwill has occurred. The Partnership intends to perform this impairment review annually in the second half of the calendar year, or in any period prior to the annual assessment, in which the Partnership experiences any circumstances that would indicate an impairment exists, such as disruptions in its business or other significant declines in results. An impairment loss is recorded if the implied fair value of the reporting unit is less than the carrying value. Reporting units are based on a component of the business with discrete financial information that management reviews on a regular basis. The Partnership reviews its reporting units on an annual basis. During the three and six months ended June 30, 2018, there have been no impairment indicators, or changes in the Partnership’s business, that would cause the Partnership to perform a goodwill impairment assessment.

Intangibles

The Partnership’s intangibles are comprised of customer relationships, which were acquired in connection with the Knoxville Terminals Acquisition and were recorded at estimated fair value at the date of acquisition.

Intangibles with definite lives are amortized using the straight-line method over their relative estimated useful life, or the period of which they provide an economic benefit. The customer relationships estimated useful life for the Knoxville Terminals Acquisition were determined to be 10 years.

Recently Adopted Accounting Guidance

In ~~August 2015,~~May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. ~~2015-14, “Revenue from Contracts with Customers~~2014-09 (Topic 606)~~: Deferral of the Effective Date” (“ASU 2015-14”)~~, ~~which defers the effective date of ASU No. 2014-09,~~ “Revenue from Contracts with Customers” (“ASU 2014-09”) for all entities by one year. Additional ASUs have been issued in 2016 and 2017 that provide certain implementation guidance related to ASU 2014-09 (collectively, the Partnership refers to ASU 2014-09 and these additional ASUs as the “Updated Revenue Recognition Guidance”ASC 606”). ~~The Updated Revenue Recognition Guidance will replace most existing~~ASC 606 supersedes the revenue recognition ~~guidance~~requirements in ~~GAAP~~Accounting Standards Codification 605 “Revenue Recognition” (“ASC 605”), and requires entities to recognize revenue when ~~it becomes effective. Under ASU 2015-14, this guidance becomes effective~~control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for ~~interim and annual periods beginning after December 15, 2017 and permits the use of either the retrospective~~those goods or ~~modified retrospective transition method. Under ASU 2015-14, early adoption is permitted only as of annual reporting periods beginning after December 15, 2016,~~

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~

~~including interim reporting periods within that reporting period.~~services. The Partnership has established a working group to assess the Updated Revenue Recognition Guidance, including its impact on the Partnership’s business processes, accounting systems, controls and financial statement disclosures. The Partnership will adopt this new standard effectiveadopted ASC 606 as of January 1, 2018 using the modified retrospective application. Under that method, the cumulative effect of initially applying the standard is recognized as an adjustment to the opening balance of retained earnings, and revenues reported in the periods prior to the date of adoption are not changed. The working group is progressing through its implementation plan and continues to evaluate the impact of this new standard on the Partnership’s consolidated financial statements and related disclosures. Additionally, the Partnership has begun training the relevant staff at its corporate headquarters and at PBF Holding's refineries on the Updated Revenue Recognition Guidance, including potential impacts on internal reporting and disclosure requirements. Although the Partnership’s analysistransition method. See Note 2 “Revenue” of the ~~new standard is still in process and interpretative and industry specific guidance is still developing, based on the results~~Notes to ~~date, we have reached tentative conclusions~~Condensed Consolidated Financial Statements for most contract types and do not believe revenue recognition patterns will change materially. However, it is expected that the new standard will have some impact on presentation and disclosures in its financial statements and internal controls.further details.

Recent Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), to increase the transparency and comparability about leases among entities. Additional ASUs have been issued subsequent to ASU 2016-02 to provide additional clarification and implementation guidance for leases related to ASU 2016-02 related to, among other things, the application of certain practical expedients, the rate implicit in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments (collectively, the Partnership refers to ASU 2016-02 and these additional ASUs as the “Updated Lease Guidance”). The ~~new guidance~~Updated Lease Guidance requires lessees to recognize a lease liability and a corresponding lease asset for virtually all lease contracts. It also requires additional disclosures about leasing arrangements. ~~ASU 2016-02~~The Updated Lease Guidance is effective for interim and annual

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

periods beginning after December 15, 2018, and requires a modified retrospective approach to adoption. ~~Early~~While early adoption is ~~permitted.~~permitted, the Partnership will not early adopt the Updated Lease Guidance. The Partnership has established a working group to study and lead the ~~new guidance in ASU 2016-02. This working group was formed during 2016~~implementation of the Updated Lease Guidance and has instituted a task plan designed to meet the requirements and implementation deadline. The Partnership has also evaluated and purchased a lease software system, completed software design and configuration of the system, and begun ~~the process of compiling a central repository for all leases the Partnership and its subsidiaries entered into for further analysis as~~testing the implementation ~~project progresses. It is not anticipated that~~of the ~~Partnership will early adopt this new guidance.~~selected system. The working group continues to evaluate the impact of ~~this new standard~~the Updated Lease Guidance on the Partnership’s ~~Consolidated Financial Statements~~consolidated financial statements and related ~~disclosures. At~~disclosures and the impact on its business processes and controls. While the assessment of this ~~time,~~standard is ongoing, the Partnership has identified that the most significant impacts of ~~this new guidance~~the Updated Lease Guidance will be to bring nearly all leases ononto its balance sheet with “right of use assets” and “lease obligation liabilities” as well as accelerating recognition of the interest expense component of financing leases. The ~~working group is in the early stages of its implementation plan and continues to evaluate the impact of this~~ new standard ~~including certain industry specific issues on the Partnership’s consolidated financial statements~~will also require additional disclosures for financing and ~~related disclosures.~~operating leases.

In January 2017, the FASB issued ASU No. ~~2017-01, “Business Combinations (Topic 805): Clarifying~~2017-04, “Simplifying the ~~Definition of a Business”~~Test for Goodwill Impairment” (“ASU ~~2017-01”~~2017-04”)~~, which provides~~ to provide updated guidance ~~to assist entities with evaluating when a set of transferred assets and activities is a business.~~on goodwill impairment testing. Under ASU ~~2017-01, it~~2017-04, goodwill impairment Step 2 would be eliminated. This step required a comparison of the implied fair value and carrying value of goodwill of the reporting unit. Subsequent to the effective date of ASU 2017-04, during the annual, or if applicable, interim goodwill impairment assessment, entities would perform the test by comparing the fair value of the reporting unit with the carrying value of the reporting unit. The impairment charge would be the excess amount carrying value is ~~expected that~~greater than fair value, with the ~~definition~~total amount limited to the carrying value of ~~a business will be narrowed and more consistently applied.~~goodwill. ASU ~~2017-01~~2017-04 is effective for annual ~~periods~~or, if applicable, interim goodwill impairment assessments beginning after December 15, ~~2017, including interim periods within those periods. The amendments in ASU 2017-01 should be applied prospectively on or after the effective date.~~2019. Early adoption is ~~permitted, and~~permitted. The Partnership is currently evaluating the ~~Partnership early adopted the~~impact of this new standard inon its consolidated financial statements and related ~~disclosures effective~~disclosures.

2. REVENUE

Adoption of ASC 606

Prior to January 1, ~~2017.~~2018, the Partnership recognized revenue from customers when all of the following criteria were met: (i) persuasive evidence of an exchange arrangement existed, (ii) delivery had occurred or services had been rendered, (iii) the buyer’s price was fixed or determinable and (iv) collectability was reasonably assured. Amounts billed in advance of the period in which the service was rendered or product delivered were recorded as deferred revenue.

~~In May 2017,~~Effective January 1, 2018, the FASB issued ASU No. 2017-09, “Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”), which provides guidance to provide clarity and reduce both diversity in practice and cost and complexity when applyingPartnership adopted ASC 606. As a result, the ~~guidance in Topic 718, Compensation—Stock Compensation, to a change to~~Partnership has changed the ~~terms or conditions of a share-based payment award. The amendments in ASU 2017-09 require an entity to account~~accounting policy for the ~~effects~~recognition of revenue from contracts with customers as detailed below.

The Partnership adopted ASC 606 using the modified retrospective method, which has been applied for the three and six months ended June 30, 2018. The Partnership has applied ASC 606 only to those contracts that were not complete as of January 1, 2018. As such, the financial information for prior periods has not been adjusted and continues to be reported under ASC 605. The Partnership did not record a ~~modification unless all~~cumulative effect adjustment upon initially applying ASC 606 as there was not a significant impact upon adoption; however, the ~~following~~details of significant qualitative and quantitative disclosure changes upon implementing ASC 606 are ~~met: (i) the fair value~~discussed below.

Revenue Recognition

Revenue is recognized when control of the ~~modified award~~promised goods or services is transferred to our customers, in an amount that reflects the ~~same as~~consideration the ~~fair value~~Partnership expects to be entitled to in exchange for those goods or services.

As noted in Note 11 “Segment Information” of the ~~original award immediately before~~Notes to Condensed Consolidated Financial Statements, the ~~original award is modified. If the modification does not affect any~~Partnership’s business consists of ~~the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before~~two reportable segments: (i) Transportation and ~~after the modification;~~Terminaling and (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The guidance in ASU 2017-09 should be applied prospectively. The amendments in this ASU are effective for annual periods beginning after December 15, 2017, including interim periods withinStorage.

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM,~~ UNIT AND PER UNIT DATA)

~~those annual periods.~~

The following table provides information relating to the Partnership’s revenues for each service category by segment for the periods presented:



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Transportation and Terminaling Segment
Terminaling	$	29,410	$	32,169	$	56,461	$	62,847
Pipeline	19,217		15,679		37,706		31,577
Other	11,805		8,755		23,235		17,118
Total	60,432		56,603		117,402		111,542
Storage Segment
Storage	6,966		5,726		14,035		11,264
Total	6,966		5,726		14,035		11,264
Total Revenue	$	67,398	$	62,329	$	131,437	$	122,806

PBFX recognizes revenue by charging fees for crude oil and refined products terminaling, storing and pipeline services based on the greater of contractual minimum volume commitments (“MVCs”), as applicable, or the delivery of actual volumes transferred or stored based on contractual rates applied to throughput or storage volumes.

Minimum Volume Commitments

Transportation and Terminaling

The Partnership’s Transportation and Terminaling segment consists of product terminals, pipelines, crude unloading facilities and other facilities capable of handling barges and ships. Certain of these commercial agreements contain MVCs. Under these commercial agreements, if the Partnership’s customer fails to transport its minimum throughput volumes during any specified period, the customer will pay the Partnership a deficiency payment equal to the volume of the deficiency multiplied by the contractual rate then in effect. The deficiency payment is initially recorded as deferred revenueon the Partnership’s balance sheets for all contracts in which the MVC deficiency makeup period is contractually longer than a fiscal quarter.

Certain of the Partnership’s customers may apply the amount of any such deficiency payments as a credit for volumes transported on the applicable pipeline or terminal system in excess of its MVC during the following quarters under the terms of the applicable agreement. The Partnership ~~will apply~~recognizes operating revenues for the ~~guidance prospectively~~deficiency payments when credits are used for ~~any modifications to its stock compensation plans occurring after~~volumes transported in excess of MVCs or at the ~~effective date~~end of the ~~new standard.~~contractual period. If the Partnership determines, based on all available information, that it is remote that the Partnership’s customer will utilize these deficiency payments, the amount of the expected unused credits will be recognized as operating revenues in the period when that determination is made. The use or recognition of the credits is recorded as a reduction to deferred revenue.

Storage

The Partnership earns storage revenue under the crude oil and refined products storage contracts through capacity reservation agreements, where the Partnership collects a fee for reserving storage capacity for customers in its facilities. Customers generally pay reservation fees based on the level of storage capacity reserved rather than the actual volumes stored.

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

As of June 30, 2018, future fees for MVCs to be received related to noncancelable commercial terminaling, pipeline and storage agreements were as follows:



2018	$	106,840
2019	209,975
2020	210,737
2021	210,477
2022	127,393
Thereafter	449,875
Total MVC payments to be received	$	1,315,297

Leases

Certain of the Partnership’s commercial agreements are considered operating leases. Under these leasing agreements, the Partnership provides access to storage tanks and/or use of throughput assets that convey the right to control the use of an identified asset to the customer. The Partnership accounts for these transactions under ASC 840 “Leases.” These lease arrangements accounted for $29,448 and $58,523 of the Partnership’s revenue for the three and six months ended June 30, 2018, respectively.

Deferred Revenue

The Partnership records deferred revenues when cash payments are received or due in advance of performance, including amounts which are refundable. Deferred revenue was $1,152 and $1,438 as of June 30, 2018 and December 31, 2017, respectively. The decrease in the deferred revenue balance as of June 30, 2018 is primarily driven by the timing and extent of cash payments received in advance of satisfying the Partnership’s performance obligations for the comparative periods.

The Partnership’s payment terms vary by the type and location of our customer and the services offered. The period between invoicing and when payment is due is not significant (i.e., generally within two months). For certain services and customer types, the Partnership requires payment before the services are performed for the customer.

Significant Judgment and Practical Expedients

For performance obligations, the Partnership determined that customers are able to obtain control of these services over time. The Partnership determined that these performance obligations, which are satisfied over time, are considered a series that generally have the same pattern of transfer to customers. For stand ready performance obligations, the Partnership generally recognizes revenue over time on a straight-line basis under the time-elapsed output method as the Partnership believes this is a reasonable basis in determining how customers obtain the benefits of the Partnership’s services. For non-stand ready performance obligations, the Partnership generally recognizes revenue over time based on actual performance (current period volumes multiplied by the applicable rate per unit of volume) as the Partnership believes this accurately depicts the transfer of benefits to customers.

The Partnership did not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Partnership recognizes revenue at the amount to which the Partnership has the right to invoice for services performed.

2.3. ACQUISITIONS

PNGPC Acquisition

On February 28, 2017, the Partnership closed the PNGPC Acquisition, which had been contemplated by a contribution agreement dated as of February 15, 2017 between the Partnership and PBF LLC (the “PNGPC Contribution Agreement”). Pursuant to the PNGPC Contribution Agreement, the Partnership, through itsPartnership’s wholly-owned subsidiary, PBFX Operating Company LP (“PBFX Op ~~Co,~~Co”), acquired from PBF LLC all of the issued and outstanding limited liability company ~~interests~~interest of Paulsboro

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

Natural Gas Pipeline Company LLC (“PNGPC”) for an aggregate purchase price of $11,600 (the “PNGPC Acquisition”). PNGPC ~~which~~ owns and operates ~~the Paulsboro Natural Gas Pipeline,~~ an ~~existing~~ interstate natural gas pipeline which serves PBF Holding’s Paulsboro ~~Refinery and is subject to regulation by the FERC.~~Refinery. In connection with the PNGPC Acquisition, ~~the Partnership~~PBFX constructed ~~the New Pipeline to replace the existing~~a new pipeline, which commenced services in August ~~2017.~~2017 (the “Paulsboro Natural Gas Pipeline”).

In consideration for the PNGPC limited liability company interests, the Partnership delivered to PBF LLC (i) an $11,600 intercompany promissory note in favor of Paulsboro Refining Company LLC, ~~(“PRC”),~~ a wholly-owned subsidiary of PBF Holding (the “Affiliate Note Payable”), (ii) an expansion rights and right of first refusal agreement in favor of PBF LLC with respect to the ~~New~~Paulsboro Natural Gas Pipeline and (iii) an assignment and assumption agreement with respect to certain outstanding litigation involving PNGPC and the existing pipeline. As the PNGPC Acquisition was considered a transfer of assets between entities under common control, the PNGPC assets and liabilities were transferred at their historical carrying value, whose net value was $11,538 as of February 28, 2017. The financial information contained herein of PBFX has been retrospectively adjusted to include the historical results of PNGPC as if it was owned by the Partnership for all periods presented. Net loss attributable to the PNGPC Acquisition prior to the effective date was allocated entirely to PBF GP as if only PBF GP had rights to that net loss; therefore, there is no retrospective adjustment to net income per unit.

The following tables present the Partnership’s statement of financial position and results of operations giving retrospective effect to the PNGPC Acquisition. For the nine months ended September 30, 2017, and the three and nine months ended September 30, 2016, respectively, the results of PNGPC prior to the PNGPC Acquisition are included under “PNGPC.” Results of PNGPC subsequent to the acquisition are included in “PBF Logistics LP.”

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~

December 31, 2016
PBF Logistics LP PNGPC Consolidated
ASSETS
Current assets:
Cash and cash equivalents $ 64,221
$ —
$ 64,221
Marketable securities - current 40,024
—
40,024
Accounts receivable - affiliates 37,863
—
37,863
Accounts receivable 4,294
—
4,294
Prepaid expenses and other current assets 1,657
—
1,657
Total current assets 148,059
—
148,059
Property, plant and equipment, net 600,071
8,731
608,802
Total assets $ 748,130
$ 8,731
$ 756,861
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable - affiliates $ 7,631
$ —
$ 7,631
Accounts payable and accrued liabilities 18,371
2,500
20,871
Current portion of long-term debt 39,664
—
39,664
Deferred revenue 952
—
952
Total current liabilities 66,618
2,500
69,118
Long-term debt 532,011
—
532,011
Other long-term liabilities 3,161
—
3,161
Total liabilities 601,790
2,500
604,290

Commitments and contingencies

Equity:
Net investment - Predecessor —
6,231
6,231
Common unitholders⁽¹⁾
241,275
—
241,275
Subordinated unitholder - PBF LLC (276,083 ) —
(276,083 )
IDR holder - PBF LLC 1,266
—
1,266
Total PBF Logistics LP equity (33,542 ) 6,231
(27,311 )
Noncontrolling interest 179,882
—
179,882
Total equity 146,340
6,231
152,571
Total liabilities and equity $ 748,130
$ 8,731
$ 756,861

(1) Subsequent to the conversion of the PBFX subordinated units held by PBF LLC, common units held by the public and PBF LLC are shown in total. Refer to Notes 6 “Equity” and 8 “Net Income per Unit” in the Notes to Condensed Consolidated Financial Statements for further discussion regarding the subordinated units’ conversion.

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~

Nine Months Ended September 30, 2017
PBF Logistics LP PNGPC Consolidated Results
Revenue:
Affiliate $ 176,916
$ —
$ 176,916
Third-party 11,384
—
11,384
Total revenue 188,300
—
188,300

Costs and expenses:
Operating and maintenance expenses 47,163
40
47,203
General and administrative expenses 12,947
—
12,947
Depreciation and amortization 16,562
110
16,672
Total costs and expenses 76,672
150
76,822

Income (loss) from operations 111,628
(150 ) 111,478

Other expense:
Interest expense, net (22,493 ) —
(22,493 )
Amortization of loan fees (1,125 ) —
(1,125 )
Net income (loss) 88,010
(150 ) 87,860
Less: Net loss attributable to Predecessor —
(150 ) (150 )
Less: Net income attributable to noncontrolling interest 11,218
—
11,218
Net income attributable to the partners 76,792
—
76,792
Less: Net income attributable to the IDR holder 6,319
—
6,319
Net income attributable to PBF Logistics LP unitholders $ 70,473
$ —
$ 70,473

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~

Three Months Ended September 30, 2016
PBF Logistics LP PNGPC Consolidated Results
Revenue:
Affiliate $ 43,842
$ —
$ 43,842
Third-party 4,591
—
4,591
Total revenue 48,433
—
48,433

Costs and expenses:
Operating and maintenance expenses 12,814
89
12,903
General and administrative expenses 4,419
1
4,420
Depreciation and amortization 5,140
207
5,347
Total costs and expenses 22,373
297
22,670

Income (loss) from operations 26,060
(297 ) 25,763

Other expense:
Interest expense, net (7,280 ) —
(7,280 )
Amortization of loan fees (416 ) —
(416 )
Net income (loss) 18,364
(297 ) 18,067
Less: Net loss attributable to Predecessor (4,131 ) (297 ) (4,428 )
Less: Net income attributable to noncontrolling interest 1,621
—
1,621
Net income attributable to the partners 20,874
—
20,874
Less: Net income attributable to the IDR holder 1,125
—
1,125
Net income attributable to PBF Logistics LP unitholders $ 19,749
$ —
$ 19,749

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~

Nine Months Ended September 30, 2016
PBF Logistics LP PNGPC Consolidated Results
Revenue:
Affiliate $ 118,356
$ —
$ 118,356
Third-party 7,285
—
7,285
Total revenue 125,641
—
125,641

Costs and expenses:
Operating and maintenance expenses 26,555
330
26,885
General and administrative expenses 13,893
3
13,896
Depreciation and amortization 8,922
621
9,543
Total costs and expenses 49,370
954
50,324

Income (loss) from operations 76,271
(954 ) 75,317

Other expense:
Interest expense, net (21,298 ) —
(21,298 )
Amortization of loan fees (1,261 ) —
(1,261 )
Net income (loss) 53,712
(954 ) 52,758
Less: Net loss attributable to Predecessor (4,131 ) (954 ) (5,085 )
Less: Net income attributable to noncontrolling interest 1,621
—
1,621
Net income attributable to the partners 56,222
—
56,222
Less: Net income attributable to the IDR holder 2,765
—
2,765
Net income attributable to PBF Logistics LP unitholders $ 53,457
$ —
$ 53,457

~~Toledo Terminal Acquisition~~Knoxville Terminals Purchase

On April ~~17, 2017,~~16, 2018, the Partnership’s wholly-owned subsidiary, PLPT, completed the ~~Toledo Terminal Acquisition.~~third-party Knoxville Terminals Purchase. The ~~Toledo Terminal is directly connected~~Knoxville Terminals consist of two refined product terminals located in Knoxville, Tennessee, which include product tanks, pipeline connections to the Colonial and ~~currently supplied by, PBF Holding’s Toledo Refinery.~~Plantation pipeline systems and truck loading facilities.

The aggregate purchase price for the ~~Toledo Terminal Acquisition~~Knoxville Terminals Purchase was ~~$10,000,~~$58,000, plus working ~~capital.~~capital adjustments. The consideration was ~~funded in full with~~financed through a combination of cash on ~~hand.~~hand and borrowings under the Partnership’s Revolving Credit Facility (as defined in Note 6 “Debt” of the Notes to Condensed Consolidated Financial Statements).

PBFX accounted for the ~~Toledo Terminal Acquisition~~Knoxville Terminals Purchase as a business combination under GAAP whereby the Partnership recognizes assets acquired and liabilities assumed at their estimated fair values as of the date of acquisition. Any excess consideration transferred over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. The ~~entire~~fair value allocation is subject to adjustment pending completion of the final purchase valuation which was in process as of June 30, 2018.

The total purchase consideration ~~of $10,000 was allocated to Property, plant~~ and ~~equipment.~~

~~Acquisition Expenses~~

~~PBFX incurred acquisition related costs of $28 and $533 for~~ the three and nine months ended September 30, 2017, respectively, and $1,310 and $3,888 for the three and nine months ended September 30, 2016, respectively. These costs consisted primarily of consulting and legal expenses related to the acquisitionsestimated fair values of the ~~East Coast Terminals,~~assets and liabilities at the ~~Torrance Valley Pipeline, PNGPC and the Toledo Terminal,~~acquisition date were as ~~well as other pending and non-consummated acquisitions. These costs are included in General and administrative expenses.~~follows:



	Purchase Price
Gross purchase price	$	58,000
Working capital	356
Total consideration	$	58,356



	Fair Value Allocation
Prepaids and other current assets	$	356
Property, plant and equipment	45,768
Intangibles	5,900
Goodwill	6,332
Estimated fair value of net assets acquired	$	58,356

1513

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM,~~ UNIT AND PER UNIT DATA)

3.The Partnership’s condensed consolidated financial statements for the three and six months ended June 30, 2018 include the results of operations of the Knoxville Terminals since April 16, 2018, during which period the Knoxville Terminals contributed affiliate revenue of $159, third-party revenue of $1,580 and net income of $707. On an unaudited pro forma basis, the revenues and net income of PBFX assuming the acquisition had occurred on January 1, 2017, for the periods indicated, are shown below. The unaudited pro forma information does not purport to present what PBFX’s actual results would have been had the Knoxville Terminals Purchase occurred on January 1, 2017, nor is the financial information indicative of the results of future operations. The unaudited pro forma financial information includes the depreciation and amortization expense related to the acquisition and interest expense associated with the Knoxville Terminals Purchase financing.



	Six Months Ended June 30, 2018		Six Months Ended June 30, 2017
	Six Months Ended June 30, 2018		Six Months Ended June 30, 2017
Pro forma revenues	$	134,967	$	129,940
Pro forma net income attributable to PBF Logistics LP unitholders:	35,153		43,688
Pro forma net income available per limited partner units:
Common units - basic	$	0.83	$	1.03
Common units - diluted	0.83		1.03
Subordinated units - basic and diluted	—		1.06

Acquisition Expenses

PBFX incurred acquisition related costs of $669 and $1,152 for the three and six months ended June 30, 2018, respectively, primarily consisting of consulting and legal expenses related to the Knoxville Terminals Purchase and other pending and nonconsummated acquisitions. PBFX incurred acquisition related costs of $331 and $505 for the three and six months ended June 30, 2017, respectively, primarily consisting of consulting and legal expenses related to the PNGPC Acquisition and the purchase of the Toledo, Ohio refined products terminal assets from Sunoco Logistics Partners L.P. (the “Toledo Products Terminal Acquisition”). These costs are included in “General and administrative expenses.”

4. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net consisted of the following:


	September 30, 2017			December 31, 2016			June 30, 2018			December 31, 2017
Land	$	99,707		$	99,497		$	101,857		$	99,707
Pipelines	338,512			288,867			334,897			333,609
Terminals and equipment	194,632			165,234			245,139			200,630
Storage facilities	59,275			62,238			89,921			89,417
Construction in progress	33,821			26,448			6,239			4,810
	725,947			642,284			778,053			728,173
Accumulated depreciation	(50,154		)	(33,482		)	(67,641		)	(54,350		)
Property, plant and equipment, net	$	675,793		$	608,802		$	710,412		$	673,823

Depreciation expense was $13,291 and $11,062 for the six months ended June 30, 2018 and 2017, respectively.

4.5. GOODWILL AND INTANGIBLES

Goodwill

On April 16, 2018, the Partnership’s wholly-owned subsidiary, PLPT, completed the Knoxville Terminals Purchase. As a result of the preliminary purchase price allocation, goodwill was recorded. Refer to Note 3

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

“Acquisitions” of the Notes to Condensed Consolidated Financial Statements for further discussion regarding the Knoxville Terminals Purchase and the preliminary purchase price allocation.

As of June 30, 2018, the carrying amount of goodwill was $6,332, all of which was allocated to the Transportation and Terminaling segment.

Intangibles

As a result of the preliminary purchase price allocation of the Knoxville Terminals Purchase, a customer relationship intangible was recorded. Refer to Note 3 “Acquisitions” of the Notes to Condensed Consolidated Financial Statements for further discussion regarding the Knoxville Terminals Purchase and the preliminary purchase price allocation.

As of June 30, 2018, intangibles consisted of the following:



	June 30, 2018			December 31, 2017
Customer relationships	$	5,900		$	—
Accumulated amortization	(123		)	—
Total intangibles	$	5,777		$	—

Amortization expense was $123 and $0 for the six months ended June 30, 2018 and 2017, respectively. The Partnership estimates amortization expense of $590 a year for the next five years.

6. DEBT

Total debt was comprised of the following:

September 30,
2017 December 31,
2016
6.875% Senior Notes due 2023 (a) $ 350,000
$ 350,000
Term Loan —
39,664
Revolving Credit Facility (b) 189,200
189,200
Total debt outstanding 539,200
578,864
Unamortized debt issuance costs (6,064 ) (7,189 )
Net carrying value of debt 533,136
571,675
Less: Current maturities (c) —
39,664
Long-term debt $ 533,136
$ 532,011



	June 30, 2018			December 31, 2017
2023 Notes	$	525,000		$	525,000
Revolving Credit Facility (a)	84,000			29,700
Total debt outstanding	609,000			554,700
Unamortized debt issuance costs	(8,520		)	(9,281		)
Unamortized 2023 Notes premium	3,101			3,374
Net carrying value of debt	$	603,581		$	548,793

____________________

(a) On October 6, 2017, PBFX issued $175,000 in aggregate principal amount of 6.875% Senior Notes due 2023 (the “new 2023 Notes”). The new 2023 Notes were issued under the indenture governing the 6.875% Senior Notes due 2023 issued on May 12, 2015 (the “initial 2023 Notes,” together with the new 2023 Notes, the “2023 Notes”).

~~(b)~~ PBFX had ~~$3,610~~$4,010 outstanding letters of credit and ~~$167,190~~$271,990 available under ~~our~~its five-year $360,000 revolving credit facility (the “Revolving Credit Facility”) as of ~~September~~June 30, ~~2017.~~2018. During the six months ended June 30, 2018, PBFX ~~used~~paid down $9,700 and subsequently borrowed $64,000 to fund the ~~net proceeds~~Knoxville Terminals Purchase and other capital expenditures and working capital requirements. On July 30, 2018, PBFX entered into an amended and restated revolving credit facility (the “A&R Revolving Credit Facility”), that among other things, extended the maturity date from ~~the new 2023 Notes offering~~May 2019 to ~~pay down~~July 2023; as a result, the Revolving Credit ~~Facility.~~

~~(c)~~Facility is classified as long-term on PBFX’s three-year $300,000 term loan facility with Wells Fargo Bank, National Association, as administrative agent, and a syndicate of lenders (the “Term Loan”) matured in May 2017. During March 2017, PBFX repaid in full the remaining outstanding balance sheet. Refer to Note 12 “Subsequent Events” of the ~~Term Loan. The Term Loan was classified as current on~~Notes to Condensed Consolidated Financial Statements for further discussion regarding the balance sheet as of December 31, 2016. Additionally, marketable securities were also classified as current on the balance sheet as of December 31, 2016 as such securities collateralized the Term Loan. As of September 30, 2017, PBFX has liquidated the remaining marketable securities.A&R Revolving Credit Facility.

Fair Value Measurement

A fair value hierarchy (Level 1, Level 2, or Level 3) is used to categorize fair value amounts based on the quality of inputs used to measure fair value. Accordingly, fair values derived from Level 1 inputs utilize quoted

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~

prices in active markets for identical assets or liabilities. Fair values derived from Level 2 inputs are based on quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are either

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

directly or indirectly observable for the asset or liability. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

Debt or equity securities are classified into the following reporting categories: held-to-maturity, trading or available-for-sale securities. While PBFX does not routinely sell marketable securities prior to their scheduled maturity dates, some of PBFX’s investments may be held and restricted for the purpose of funding future capital expenditures and acquisitions. Such investments are classified as available-for-sale marketable securities as they may occasionally be sold prior to their scheduled maturity dates due to the unexpected timing of cash needs. The carrying value of these marketable securities approximates fair value and is measured using Level 1 inputs. The terms of the marketable securities range from one to three months and are classified on the balance sheet as current assets. The gross unrecognized holding gains and losses as of September 30, 2017 and December 31, 2016 were not material. As of September 30, 2017, PBFX has liquidated the remaining marketable securities.

The estimated fair ~~values~~value of the Revolving Credit Facility ~~and Term Loan approximate their~~approximates its carrying ~~values,~~value, categorized as a Level 2 measurement, as ~~these borrowings bear~~this borrowing bears interest based upon short-term floating market interest rates. The estimated fair value of the Partnership’s ~~initial~~6.875% Senior Notes due 2023 ~~Notes,~~(the “2023 Notes”), categorized as a Level 2 measurement, was calculated based on the present value of future expected payments utilizing implied current market interest rates based on quoted prices of the ~~initial~~ 2023 Notes and was approximately ~~$362,148~~$532,956 and ~~$346,135~~$544,118 at ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016,~~2017, respectively. The carrying value and fair value of PBFX’s debt, exclusive of unamortized debt issuance costs and unamortized premium on the 2023 Notes, was approximately ~~$539,200~~$609,000 and ~~$551,348~~$616,956 as of ~~September~~June 30, ~~2017~~2018 and ~~$578,864~~$554,700 and ~~$574,999~~$573,818 as of December 31, ~~2016,~~2017, respectively.

~~5. AFFILIATE NOTE PAYABLE~~

~~PNGPC Acquisition~~

In connection with the PNGPC Acquisition, on February 28, 2017, the Partnership, through its newly acquired subsidiary, PNGPC, entered into the $11,600 Affiliate Note Payable in favor of PRC, a wholly-owned subsidiary of PBF Holding, as consideration for the PNGPC Acquisition. The Affiliate Note Payable, including accrued interest, is payable on the later of October 1, 2017 or the date upon which the New Pipeline project is completed, which is currently expected to be in the fourth quarter of 2017. The outstanding principal shall bear interest at a rate equal to the lesser of (i) the per annum rate charged on the Partnership’s Revolving Credit Facility and (ii) 8% per annum.

6.7. EQUITY

PBFX had ~~23,435,349~~23,613,565 common units held by the public outstanding as of ~~September~~June 30, ~~2017.~~2018. PBF LLC owns 18,459,497 of PBFX’s common units constituting an aggregate ~~44.1%~~43.9% limited partner interest in PBFX as of ~~September~~June 30, ~~2017. On June 1, 2017, the requirements under~~ 2018.

Share Activity

PBFX’s partnership agreement, for the conversion of all subordinated units into common units were satisfied and the subordination period ended. As a result, each of the Partnership’s 15,886,553 outstanding subordinated units converted into common units and began participating pro rata with the other common units in distributions of available cash. The conversion did not impact the amount of the cash distribution paid or the total number of the Partnership’s outstanding units representing limited partner interests.

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~

~~Issuance of Additional Interests~~

~~The partnership agreement~~as amended, authorizes PBFX to issue an unlimited number of additional partnership interests for the consideration and on the terms and conditions determined by PBFX’s general partner without the approval of the unitholders. It is possible that PBFX will fund future acquisitions through the issuance of additional common units, subordinated units or other partnership interests.

The following table presents changes in PBFX common and subordinated units outstanding:



	Three Months Ended June 30,
	2018	2017
	Common Units	Common Units	Subordinated Units - PBF LLC
Balance at beginning of period	41,900,708	25,876,472	15,886,553
Vesting of phantom units, net of forfeitures	172,354	127,462	—
Conversion of subordinated units	—	15,886,553	(15,886,553	)
Balance at end of period	42,073,062	41,890,487	—



	Six Months Ended June 30,
	2018	2017
	Common Units	Common Units	Subordinated Units - PBF LLC
Balance at beginning of period	41,900,708	25,844,118	15,886,553
Vesting of phantom units, net of forfeitures	172,354	159,816	—
Conversion of subordinated units	—	15,886,553	(15,886,553	)
Balance at end of period	42,073,062	41,890,487	—

Additionally, ~~211,309 and 115,224~~217,171 of the Partnership’s phantom units issued under the PBFX 2014 Long-Term Incentive Plan (“LTIP”) vested and were converted into common units held by certain directors, officers and current and former employees of our general partner or its affiliates during the ~~nine months~~year ended ~~September 30, 2017 and 2016, respectively.~~December 31, 2017.

Holders of any additional common units PBFX issues will be entitled to share equally with the then-existing common unitholders in PBFX’s distributions of available cash.

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

Noncontrolling Interest

PBFX’s wholly-owned subsidiary, PBFX Op Co, holds a 50% controlling interest in Torrance Valley Pipeline Company LLC (“TVPC”), with the other 50% interest in TVPC held by TVP Holding Company LLC (“TVP Holding”), a subsidiary of PBF Holding. PBFX Op Co is the sole managing member of TVPC. PBFX, through its ownership of PBFX Op Co, consolidates the financial results of TVPC, and records a noncontrolling interest for the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the ~~Condensed Consolidated Statements~~condensed consolidated statements of ~~Operations~~operations includes the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated balance sheets includes the portion of net assets of TVPC attributable to TVP Holding.

Equity Activity

The following tables summarize the changes in the carrying amount of the Partnership’s equity during the six months ended June 30, 2018 and 2017:



	Common Units			IDR Holder			Noncontrolling Interest			Total
Balance at December 31, 2017	$	(17,544	)	$	2,736		$	171,903		$	157,095
Quarterly distributions to unitholders (including IDRs)	(41,560		)	(5,691		)	—			(47,251		)
Distributions to TVPC members	—			—			(11,250		)	(11,250		)
Net income attributable to the partners	34,957			6,370			8,385			49,712
Unit-based compensation expense	3,497			—			—			3,497
Other	(1,059		)	—			—			(1,059		)
Balance at June 30, 2018	$	(21,709	)	$	3,415		$	169,038		$	150,744

1817

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM,~~ UNIT AND PER UNIT DATA)

~~Equity Activity~~

~~The summarized changes in the carrying amount of our equity during the nine months ended September 30, 2017 are as follows:~~

Net Investment Common Units Subordinated Units - PBF IDR Noncontrolling Interest Total
Balance at
December 31, 2016 $ 6,231
$ 241,275
$ (276,083 ) $ 1,266
$ 179,882
$ 152,571
Net loss attributable to PNGPC (150 ) —
—
—
—
(150 )
Contributions to PNGPC 5,457
—
—
—
—
5,457
Allocation of PNGPC assets acquired to unitholders (11,538 ) 11,592
(54 ) —
—
—
Distributions to PBF LLC related to the PNGPC Acquisition —
(11,600 ) —
—
—
(11,600 )
Quarterly distributions to unitholders (including IDRs) —
(44,108 ) (14,457 ) (5,058 ) —
(63,623 )
Distribution to TVPC members —
—
—
—
(17,348 ) (17,348 )
Net income attributable to the partners —
56,310
14,163
6,319
11,218
88,010
Unit-based compensation expense —
4,515
—
—
—
4,515
Subordinated units conversion to common units —
(276,433 ) 276,433

—

—

—
Other —
(4 ) (2 ) (1 ) (1,000 ) (1,007 )
Balance at September 30, 2017 $ —
$ (18,453 ) $ —
$ 2,526
$ 172,752
$ 156,825

~~Allocations of Net Income~~

PBFX’s partnership agreement contains provisions for the allocation of net income and loss to the unitholders. For purposes of maintaining partner capital accounts, PBFX’s partnership agreement specifies that items of income and loss shall be allocated among the partners in accordance with their respective percentage interest. Normal allocations according to percentage interests are made after giving effect, if any, to priority income allocations in an amount equal to incentive cash distributions allocated 100% to PBF LLC.

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~



	Net Investment			Common Units			Subordinated Units - PBF			IDR Holder			Noncontrolling Interest			Total
Balance at December 31, 2016	$	6,231		$	241,275		$	(276,083	)	$	1,266		$	179,882		$	152,571
Net loss attributable to PNGPC	(150		)	—			—			—			—			(150		)
Contributions to PNGPC	5,457			—			—			—			—			5,457
Allocation of PNGPC assets acquired to unitholders	(11,538		)	11,592			(54		)	—			—			—
Distributions to PBF LLC related to the PNGPC Acquisition	—			(11,600		)	—			—			—			(11,600		)
Quarterly distributions to unitholders (including IDRs)	—			(24,129		)	(14,457		)	(2,951		)	—			(41,537		)
Distributions to TVPC members	—			—			—			—			(12,254		)	(12,254		)
Net income attributable to the partners	—			29,963			14,163			3,793			7,419			55,338
Unit-based compensation expense	—			3,708			—			—			—			3,708
Subordinated unit conversion to common units	—			(276,433		)	276,433			—			—			—
Other	—			(4		)	(2		)	(1		)	(1,000		)	(1,007		)
Balance at June 30, 2017	$	—		$	(25,628	)	$	—		$	2,107		$	174,047		$	150,526

Cash Distributions

PBFX’s partnership agreement, as amended, sets forth the calculation to be used to determine the amount and priority of cash distributions that the common and subordinated unitholders and general partner will receive.

During the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, PBFX made distribution payments as follows:


Related Earnings Period:	Q4 2016		Q1 2017		Q2 2017		Q4 2017		Q1 2018
Distribution date	March 13, 2017		May 31, 2017		August 31, 2017		March 14, 2018		May 30, 2018
Record date	February 27, 2017		May 16, 2017		August 15, 2017		February 28, 2018		May 15, 2018
Per unit	$	0.45	$	0.46	$	0.47	$	0.4850	$	0.4900
Public	$	10,487	$	10,760	$	11,014
PBF LLC	9,572		10,178		10,783
To public common unitholders							$	11,369	$	11,553
To PBF LLC							11,689		12,000
Total distribution	$	20,059	$	20,938	$	21,797	$	23,058	$	23,553

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

The allocation of total quarterly distributions to general and limited partners for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~2016, respectively,~~2017 is shown in the table below. The Partnership’s distributions are declared subsequent to quarter end (distributions of ~~$0.48~~$0.4950 and ~~$0.44 per unit declared for the three months ended September 30, 2017 and 2016, respectively, $0.47 and $0.43~~$0.4700 per unit declared for the three months ended June 30, ~~2017~~2018 and ~~2016,~~2017, respectively, and ~~$0.46~~$0.4900 and ~~$0.42~~$0.4600 per unit declared for the three months ended March 31, ~~2017~~2018 and ~~2016,~~2017, respectively); therefore, the table represents total estimated distributions applicable to the period in which the distributions are earned:


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016		2018		2017		2018		2017
IDR - PBF LLC	$	2,526	$	1,125	$	6,319	$	2,765	$	3,415	$	2,107	$	6,370	$	3,793
Limited partners’ distributions:
Common	20,417		11,621		52,687		30,348		22,800		20,000		43,770		32,272
Subordinated - PBF LLC	—		6,990		7,308		20,493		—		—		—		7,308
Total distributions	22,943		19,736		66,314		53,606		26,215		22,107		50,140		43,373
Total cash distributions ~~(a)~~(1)	$	22,636	$	19,486	$	65,371	$	52,849	$	25,866	$	21,797	$	49,419	$	42,735

~~____________________~~

~~(a)~~(1) Excludes phantom unit distributions which are accrued and paid upon vesting.

~~7. UNIT-BASED COMPENSATION~~

PBF GP’s board of directors adopted the LTIP in connection with the completion of the Offering. The LTIP is for the benefit of employees, consultants, service providers and non-employee directors of the general partner and its affiliates.

Under the LTIP, PBFX issues phantom unit awards to certain directors, officers, and seconded employees of our general partner or its affiliates and its employees as compensation. The fair value of each phantom unit on the grant date is equal to the market price of PBFX’s common units on that date. The estimated fair value of PBFX’s phantom units is generally amortized over the vesting period of four years, using the straight-line method.

Unit-based compensation expense related to the Partnership that was included in general and administrative expense in the Partnership’s condensed consolidated statements of operations was $807 and $4,515 for the three

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~

~~and nine months ended September 30, 2017, respectively, and $963 and $3,673 for the three and nine months ended September 30, 2016, respectively.~~

8. NET INCOME PER UNIT

Earnings in excess of distributions are allocated to the limited partners based on their respective percentage interests. Payments made to PBFX’s unitholders are determined in relation to actual distributions declared and are not based on the net income (loss) allocations used in the calculation of net income (loss) per unit.

Diluted net income per unit includes the effects of potentially dilutive units of PBFX’s common units that consist of unvested phantom units. There were ~~13,375~~146,065 and ~~84,750~~429,503 anti-dilutive phantom units for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, respectively, compared to 74,750 and ~~257,104 and 521,130~~393,439 anti-dilutive phantom units for the three and ~~nine~~six months ended ~~September~~June 30, ~~2016,~~2017, respectively. Basic and diluted net income per unit applicable to subordinated limited partners are the same because there are no potentially dilutive subordinated units outstanding.

In addition to the common and subordinated units, PBFX has also identified the general partner interest and IDRs as participating securities and uses the two-class method when calculating the net income per unit applicable to limited partners that is based on the weighted-average number of common units outstanding during the period.

On June 1, 2017, following the May 31, 2017 payment of the cash distribution attributable to the second quarter of 2017, the requirements under ~~the~~PBFX’s partnership agreement, as amended, for the conversion of all subordinated units into common units were satisfied and the subordination period for such subordinated units ended. As a result, in the second quarter of 2017, each of the Partnership’s 15,886,553 outstanding subordinated units converted into common units and began participating pro rata with the other common units in distributions of available cash. The conversion did not impact the amount of the cash distribution paid or the total number of the Partnership’s outstanding units representing limited partner interests. The Partnership’s net income was allocated to the general partner, the limited partners, including the holders of the subordinated units through May 31, 2017 and IDR holders, in accordance with the partnership agreement.

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

When calculating basic earnings per unit under the two-class method for a master limited partnership, net income for the current reporting period is reduced by the amount of available cash that has been or will be distributed to the general partner, limited partners, and IDR holders for that reporting period. The following table shows the calculation of earnings less distributions:



	Three Months Ended June 30, 2018
	Limited Partner Common Units			IDRs - PBF LLC		Total
Net income attributable to the partners:
Distributions declared	$	22,800		$	3,415	$	26,215
Earnings less distributions	(6,123		)	—		(6,123		)
Net income attributable to the partners	$	16,677		$	3,415	$	20,092

Weighted-average units outstanding - basic	42,231,119
Weighted-average units outstanding - diluted	42,294,616

Net income per limited partner unit - basic	$	0.39
Net income per limited partner unit - diluted	$	0.39



	Three Months Ended June 30, 2017
	Limited Partner Common Units			Limited Partner Subordinated Units - PBF LLC		IDRs - PBF LLC		Total
Net income attributable to the partners:
Distributions declared	$	20,000		$	—	$	2,107	$	22,107
Earnings less distributions	(4,241		)	5,445		—		1,204
Net income attributable to the partners	$	15,759		$	5,445	$	2,107	$	23,311

Weighted-average units outstanding - basic	31,428,577			10,649,228
Weighted-average units outstanding - diluted	31,485,563			10,649,228

Net income per limited partner unit - basic	$	0.49		$	0.52
Net income per limited partner unit - diluted	$	0.49		$	0.52

2120

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM,~~ UNIT AND PER UNIT DATA)

Three Months Ended September 30, 2017
Limited Partner Common Units Limited Partner Subordinated Units - PBF LLC IDRs - PBF LLC Total
Net income attributable to the partners:
Distributions declared $ 20,417
$ —
$ 2,526
$ 22,943
Earnings less distributions 5,930
—
—
5,930
Net income attributable to the partners $ 26,347
$ —
$ 2,526
$ 28,873

Weighted-average units outstanding - basic ⁽¹⁾
42,127,288
—

Weighted-average units outstanding - diluted ⁽¹⁾
42,161,008
—

Net income per limited partner unit - basic ⁽²⁾
$ 0.63
$ —

Net income per limited partner unit - diluted ⁽²⁾
$ 0.63
$ —

(1) On June 1, 2017, each of the Partnership’s 15,886,553 outstanding subordinated units converted into common units and began participating pro rata with the other common units in distributions of available cash. Distributions and the Partnership’s net income were allocated to the subordinated units through May 31, 2017.

(2) PBFX bases the calculation of net income per unit on the weighted-average number of common and subordinated limited partner units outstanding during the period. The weighted-average number of common and subordinated units reflects the conversion of the subordinated units to common units on June 1, 2017.

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~



	Six Months Ended June 30, 2018
	Limited Partner Common Units			IDRs - PBF LLC		Total
Net income attributable to the partners:
Distributions declared	$	43,770		$	6,370	$	50,140
Earnings less distributions	(8,813		)	—		(8,813		)
Net income attributable to the partners	$	34,957		$	6,370	$	41,327

Weighted-average units outstanding - basic	42,176,202
Weighted-average units outstanding - diluted	42,190,136

Net income per limited partner unit - basic	$	0.83
Net income per limited partner unit - diluted	$	0.83

Three Months Ended September 30, 2016
Limited Partner Common Units Limited Partner Subordinated Units - PBF LLC IDRs - PBF LLC Total
Net income attributable to the partners:
Distributions declared $ 11,621
$ 6,990
$ 1,125
$ 19,736
Earnings less distributions 202
936
—
1,138
Net income attributable to the partners $ 11,823
$ 7,926
$ 1,125
$ 20,874

Weighted-average units outstanding - basic 23,492,796
15,886,553

Weighted-average units outstanding - diluted 23,571,691
15,886,553

Net income per limited partner unit - basic $ 0.50
$ 0.50

Net income per limited partner unit - diluted $ 0.50
$ 0.50

Nine Months Ended September 30, 2017
Limited Partner Common Units Limited Partner Subordinated Units - PBF LLC IDRs - PBF LLC Total
Net income attributable to the partners:
Distributions $ 52,687
$ 7,308
$ 6,319
$ 66,314
Earnings less distributions 3,623
6,855
—
10,478
Net income attributable to the partners $ 56,310
$ 14,163
$ 6,319
$ 76,792

Weighted-average units outstanding - basic ⁽¹⁾
33,280,957
8,787,068

Weighted-average units outstanding - diluted ⁽¹⁾
33,309,555
8,787,068

Net income per limited partner unit - basic ⁽²⁾
$ 1.69
$ 1.61

Net income per limited partner unit - diluted ⁽²⁾
$ 1.69
$ 1.61

(2) PBFX bases the calculation of net income per unit on the weighted-average number of common and subordinated limited partner units outstanding during the period. The weighted average number of common and subordinated units reflects the conversion of the subordinated units to common units on June 1, 2017.

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~


	Nine Months Ended September 30, 2016								Six Months Ended June 30, 2017
	Limited Partner Common Units		Limited Partner Subordinated Units – PBF LLC		IDRs - PBF LLC		Total		Limited Partner Common Units			Limited Partner Subordinated Units - PBF LLC		IDRs - PBF LLC		Total
Net income attributable to the partners:
Distributions declared	$	30,348	$	20,493	$	2,765	$	53,606	$	32,272		$	7,308	$	3,793	$	43,373
Earnings less distributions	125		2,491		—		2,616		(2,309		)	6,855		—		4,546
Net income attributable to the partners	$	30,473	$	22,984	$	2,765	$	56,222	$	29,963		$	14,163	$	3,793	$	47,919

Weighted-average units outstanding - basic	21,094,154		15,886,553						28,784,479			13,253,423
Weighted-average units outstanding - diluted	21,103,919		15,886,553						28,788,463			13,253,423

Net income per limited partner unit - basic	$	1.44	$	1.45					$	1.04		$	1.07
Net income per limited partner unit - diluted	$	1.44	$	1.45					$	1.04		$	1.07

9. COMMITMENTS AND CONTINGENCIES

~~The DCR Rail Terminal and the DCR West Rack~~Certain of PBFX’s assets are collocated with ~~the~~PBF Holding’s Delaware City Refinery, and are located in Delaware’s coastal zone where certain activities are regulated under the Delaware Coastal Zone ~~Act. In 2013,~~Act (the “CZA”). Therefore, determinations regarding the CZA that impact the Delaware City Refinery ~~obtained~~may potentially adversely impact the Partnership’s assets even if the Partnership is not directly involved. The Delaware City Refinery is appealing a ~~permit to allow loading~~Notice of Penalty Assessment and Secretary’s Order issued in March 2017 (the “2017 Secretary’s Order”), including a $150 fine, alleging violation of a 2013 Secretary’s Order authorizing crude oil ~~onto barges.~~shipment by barge (the “2013 Secretary’s Order”). The ~~issuance of the permit was appealed by environmental interest groups and the~~ Delaware Department of Natural Resources and Environmental Control’s (“DNREC”) issuance was ultimately upheld. On December 23, 2016, Delaware City Refinery received a Notice of Violation (“NOV”) from DNREC concerning a potential violation of the DNREC order authorizing the shipment of crude oil by barge from the Delaware City Refinery. The NOV alleges that Delaware City Refinery made shipments to locations other than the Paulsboro Refinery in violation of the order and requests certain additional information. On February 7, 2017, the Delaware City Refinery responded to the NOV. On March 10, 2017, DNREC issued a $150 fine in a Notice of Penalty Assessment and Secretary’s Order to the Delaware City Refinery for violating the 2013 Secretary’s Order. DNREC’s investigation found that PBF Energy violated the 2013 Secretary’s Order throughout 2014, when it made 17 barge shipments of crude oil over 15 days to locations other than the Paulsboro Refinery. DNREC determined that the Delaware City Refinery had violated the ~~order~~2013 Secretary’s Order by failing to make timely and full disclosure to DNREC about the nature and extent of ~~those~~certain shipments and had misrepresented the number of shipments that went to other facilities. The ~~penalty assessment~~Notice of Penalty Assessment and 2017 Secretary’s Order conclude that the 2013 Secretary’s Order was violated by the ~~Paulsboro~~Delaware City Refinery by shipping crude oil from the Partnership’s Delaware City ~~terminal~~assets to three locations other than ~~the~~PBF Holding’s Paulsboro Refinery, on 15 days in 2014, making a total of 17 separate barge shipments containing approximately 35,700,000 gallons of crude oil in total. On April 28, 2017, ~~DCR~~the Delaware City Refinery appealed the Notice of Penalty Assessment and 2017

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

Secretary’s Order. On March 5, 2018, the Notice of Penalty Assessment was settled by DNREC, the Delaware Attorney General and the Delaware City Refinery for $100. The ~~hearing of~~Delaware City Refinery made no admissions with respect to the ~~appeal is scheduled for February 2018. To~~alleged violations and agreed to request a CZA status decision prior to making crude oil shipments to destinations other than Paulsboro. The Delaware City Refinery has paid the ~~extent that the penalty and Secretary’s Order are upheld, there will not be a material adverse effect on the Partnership’s financial position, results of operations or cash flows.~~penalty.

On December 28, 2016, DNREC issued a ~~Coastal Zone Act~~CZA permit (the “Ethanol Permit”) to the Delaware City Refinery allowing the utilization of existing tanks and existing marine loading equipment at their existing facilities to enable denatured ethanol to be loaded from storage tanks to marine vessels and shipped to offsite facilities. On January 13, 2017, the issuance of the Ethanol Permit was appealed by two environmental groups. On February 27, 2017, the Coastal Zone Industrial Board (the “Coastal Zone Board”) held a public hearing and dismissed the appeal, determining that the

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~

appellants did not have standing. The appellants filed an appeal of the Coastal Zone Board’s decision with the Delaware Superior Court (the “Superior Court”) on March 30, 2017. On January 19, 2018, the Superior Court rendered an Opinion regarding the decision of the Coastal Zone Board to dismiss the appeal of the Ethanol Permit for the ethanol project. The ~~filing~~Judge determined that the record created by the Coastal Zone Board was insufficient for the Superior Court to make a decision, and therefore remanded the case back to the Coastal Zone Board to address the deficiency in the record. Specifically, the Superior Court directed the Coastal Zone Board to address any evidence concerning whether the appellants’ claimed injuries would be affected by the increased quantity of ~~briefs has been scheduled~~ethanol shipments. During the hearing before the Coastal Zone Board on standing, one of the appellants’ witnesses made a reference to the flammability of ethanol, without any indication of the significance of flammability/explosivity to specific concerns. Moreover, the appellants did not introduce at hearing any evidence of the relative flammability of ethanol as compared to other materials shipped to and from the refinery. However, the sole dissenting opinion from the Coastal Zone Board focused on the flammability/explosivity issue, alleging that the appellants’ testimony raised the issue as a distinct basis for ~~October~~potential harms. Once the Coastal Zone Board responds to the remand, it will go back to the Superior Court to complete its analysis and ~~November 2017.~~issue a decision.

On October 19, 2017, the Delaware City Refinery received approval from DNREC for the construction and operation of the ethanol marketing project to allow for a combined total loading of up to 10,000 ~~bpd,~~barrels per day, on an annual average basis, of ethanol on to marine vessels at the marine piers and the terminal truck loading rack, subject to certain operational and emissions limitations as well as other conditions. On the same date, Delaware City Logistics Company LLC (“DCLC”) received DNREC approval for the construction of (i) four additional loading arms for each of lanes 4, 10 and 11 for purposes of loading ethanol at its truck loading rack and (ii) a vapor vacuum control system for loading lanes connected to the existing vapor recovery unit located at its terminal in Delaware City. This approval is also subject to certain operational and emission limitations as well as other conditions.

Environmental Matters

PBFX’s assets, along with PBF Energy’s refineries, are subject to extensive and frequently changing federal, state and local laws and regulations, including, but not limited to, those relating to the discharge of materials into the environment or that otherwise relate to the protection of the environment, waste management and the characteristics and the composition of fuels. Compliance with existing and anticipated laws and regulations can increase the overall cost of operating the Partnership’s assets, including remediation, operating costs and capital costs to construct, maintain and upgrade equipment and facilities.

In connection with PBF Holding’s acquisition of the Delaware City ~~Refining Company LLC (“DCR”)~~Refinery assets, Valero Energy Corporation (“Valero”) remains responsible for certain pre-acquisition environmental obligations up to $20,000 and the predecessor to Valero in ownership of the refinery retains other historical obligations.

In connection with its acquisition of the ~~DCR~~Delaware City Refinery assets and the Paulsboro Refinery, PBF Holding and Valero purchased ten-year, $75,000 environmental insurance policies to insure against unknown environmental liabilities at each site. In connection with PBF Holding’s Toledo Refinery acquisition, Sunoco Inc.

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

(R&M) remains responsible for environmental remediation for conditions that existed on the closing date for twenty years from March 1, 2011, subject to certain limitations.

In connection with its purchase of the ~~East Coast Terminals,~~four refined product terminals from Plains All American Pipeline, L.P. (“Plains”), the Partnership is responsible for the environmental remediation costs for conditions that existed on the closing date up to a maximum of $250 per year for ten years, with Plains ~~All American Pipeline, L.P.~~ remaining responsible for any and all additional costs above such amounts during such period. The environmental liability of ~~$2,049~~$1,668 recorded as of ~~September~~June 30, ~~2017~~2018 ($~~2,173~~1,923 as of December 31, ~~2016)~~2017) represents the present value of expected future costs discounted at a rate of 1.83%. At ~~September~~June 30, ~~2017,~~2018, the undiscounted liability is ~~$2,224~~$1,815 and the Partnership expects to make aggregate payments for this liability of $1,250 over the next five years. The current portion of the environmental liability is recorded in “Accounts payable and accrued liabilities” and the non-current portion is recorded in “Other long-term liabilities.”

In connection with PBF Holding’s acquisition of the Torrance Refinery and related logistics assets, PBF Holding is responsible for all known and unknown environmental liabilities at each site acquired in connection with the acquisition. The total estimated liability of known environmental obligations associated with the ~~Torrance~~San Joaquin Valley ~~Pipeline~~pipeline system, which consists of the M55, M1 and M70 crude pipeline systems including pipeline stations with storage capacity and truck unloading capacity (the “Torrance Valley Pipeline”), was approximately ~~$50~~$192 as of ~~September~~June 30, ~~2017~~2018 ($~~1,402~~256 as of December 31, ~~2016)~~2017). In accordance with the contribution agreement associated with the Partnership’s acquisition of a 50% equity interest in TVPC from PBF LLC (the “TVPC Acquisition”), PBF Holding has indemnified the Partnership for any and all costs associated with environmental remediation for obligations that existed on or before August 31, 2016, including all known or unknown events, which includes the recorded liability of approximately ~~$50.~~$192. At ~~September~~June 30, ~~2017,~~2018, the Partnership expects to make the full aggregate payment for this liability within the next five years. PBFX has recorded a receivable from PBF Holding in “Accounts receivable - affiliates” for such anticipated payments related to the known pre-existing Torrance Valley Pipeline environmental obligations for which PBFX is indemnified.

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~

In connection with the ~~Partnership’s~~ purchase of the Toledo, ~~Terminal,~~Ohio refined products terminal assets from Sunoco Logistics Partners L.P. (“Sunoco”) by the Partnership’s wholly-owned subsidiary, PLPT, the Partnership did not assume and is currently not aware of any pre-existing environmental obligations. If pre-acquisition environmental obligations are identified, ~~the Seller~~Sunoco is responsible for any liabilities up to $2,000 identified to have occurred since 2002. For liabilities arising prior to 2002, ~~the Seller~~Sunoco is indemnified by the prior owner under an agreement between ~~the Seller~~Sunoco and the prior owner, and the Partnership is entitled to be reimbursed for all amounts paid related to such liabilities on a full pass-through basis.

In connection with the Knoxville Terminals Purchase, the Partnership did not assume, and is currently not aware of, any pre-existing environmental obligations. Additionally, the Partnership and Cummins purchased a ten-year, $30,000 environmental insurance policy against unknown environmental liabilities. For items not covered by the insurance policy, Cummins remains responsible for pre-acquisition environmental obligations up to $5,800.

10. RELATED PARTY TRANSACTIONS

Commercial Agreements

PBFX currently derives the majority of its revenue from long-term, fee-based, ~~minimum volume commitment (“MVC”)~~MVC agreements with PBF Holding, supported by contractual fee escalations for inflation adjustments and certain increases in operating costs. PBFX believes the terms and conditions under these agreements, as well as the Omnibus Agreement (as defined below) and the Services Agreement (as defined below) each with PBF Holding, are generally no less favorable to either party than those that could have been negotiated with unaffiliated parties with respect to similar services.

~~These commercial agreements (as defined in the table below) with PBF Holding include:~~



~~Agreements~~	~~Initiation Date~~	~~Initial Term~~	~~Renewals (a)~~	~~MVC~~	~~Force Majeure~~
~~Transportation and Terminaling~~
~~Delaware City Rail Terminaling Services Agreement~~	~~5/8/2014~~	~~7 years,~~ ~~8 months~~	~~2 x 5~~	~~85,000 barrels per day (“bpd”)~~	~~PBFX or PBF Holding can declare~~
~~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~~	~~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~~	~~5/15/2015~~	~~10 years,~~ ~~8 months~~	~~2 x 5~~	~~30,000 bpd~~
~~Delaware City Truck Loading Services Agreement- LPGs~~	~~5/15/2015~~	~~10 years,~~ ~~8 months~~	~~2 x 5~~	~~5,000 bpd~~
~~East Coast Terminals Terminaling Services Agreements~~	~~5/1/2016~~	~~Various (f)~~	~~Evergreen~~	~~15,000 bpd (e)~~
~~East Coast Terminals Tank Lease Agreements~~	~~5/1/2016~~	~~Various (f)~~	~~Evergreen~~	~~350,000 barrels (c)~~
~~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 (c)~~

2623

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM,~~ UNIT AND PER UNIT DATA)

See the 2017 Form 10-K for a more complete description of PBFX’s commercial agreements with PBF Holding, including those identified as leases, that were entered into prior to 2018. The following are commercial agreements entered into between PBFX and PBF Holding during 2018:

Amended and Restated Rail Agreements - The Delaware City Rail Terminaling Services Agreement and the Delaware West Ladder Rack Terminaling Services Agreement between Delaware City Terminaling Company LLC and PBF Holding were amended effective as of January 1, 2018 (collectively, the “Amended and Restated Rail Agreements”) with the service fees thereunder being adjusted, including the addition of an ancillary fee paid by PBF Holding on an actual cost basis. In determining payments due under the Amended and Restated Rail Agreements, excess volumes throughput under the agreements shall apply against required payments in respect to the minimum throughput commitments on a quarterly basis and, to the extent not previously applied, on an annual basis against the MVCs.



~~Agreements~~	~~Initiation Date~~	~~Initial Term~~	~~Renewals (a)~~	~~MVC~~	~~Force Majeure~~
~~Transportation and Terminaling (continued)~~
~~Torrance Valley Pipeline Transportation Services Agreement- Emidio Storage Tank~~	~~8/31/2016~~	~~10 years~~	~~2 x 5~~	~~900,000 barrels per month~~	~~PBFX or PBF Holding can declare~~
~~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 (b)~~	~~8/4/2017~~	~~15 years~~	~~Evergreen~~	~~60,000 dekatherms per day~~
~~Toledo Terminal Services Agreement (g)~~	~~5/1/2016~~	~~1 year~~	~~Evergreen~~	~~N/A~~
~~Storage~~
~~Toledo Storage Facility Storage and Terminaling Services Agreement- Storage Facility~~	~~12/12/2014~~	~~10 years~~	~~2 x 5~~	~~3,849,271 barrels (c)~~	~~PBFX or PBF Holding can declare~~
~~Chalmette Storage Agreement (d)~~	~~See note (d)~~	~~10 years~~	~~2 x 5~~	~~625,000 barrels~~	~~PBFX or PBF Holding can declare~~

~~___________________~~

Knoxville Terminals Agreement - In connection with the Knoxville Terminals Purchase, the Partnership and PBF Holding entered into a terminal throughput and storage agreement (the “Knoxville Terminals Agreement”) wherein the Partnership, through it’s wholly-owned subsidiary, PLPT, provides PBF Holding with terminaling and storage services at the Knoxville Terminals. The initial term of the Knoxville Terminals Agreement is five years with automatic one-year renewals unless canceled by either party through written notice. Under the Knoxville Terminals Agreement, PBF Holding has a minimum volume commitment for storage and a minimum revenue commitment for throughput. The minimum throughput revenue commitment is $894 for year one, $1,788 for year two and $2,683 for year three and thereafter. The minimum storage commitment is equal to the available shell capacity for the dedicated PBF Holding tanks. If PBF Holding does not throughput or store the aggregate amounts equal to the minimum throughput revenue or available shell capacity described above, PBF Holding will be required to pay a shortfall payment equal to the shortfall revenue or capacity. The throughput and storage services fees are subject to increase or decrease effective as of January 1 of each year, beginning on January 1, 2019, by the amount of any change in the Consumer Price Index, provided that the fee may not be adjusted below the initial amount. The storage commitment under the Knoxville Terminals Agreement is considered a lease.


~~(a)~~	~~PBF Holding has the option to extend the agreements for up to two additional five-year terms, as applicable.~~


~~(b)~~	~~In August 2017, the New Pipeline commenced service. Concurrent with the commencement of operations, a new service agreement was entered into between PNGPC and PRC regarding the New Pipeline.~~


~~(c)~~	Reflects the overall capacity as stipulated by the storage agreement. The storage MVC is subject to effective operating capacity of each tank which can be impacted by routine tank maintenance and other factors.


~~(d)~~	The Chalmette Storage Agreement was entered into on February 15, 2017 and commences at the earlier of November 1, 2017 or the completion of the Chalmette Storage Tank, which is currently expected to be completed in November 2017.


~~(e)~~	The East Coast Terminals Terminaling Service Agreements have no MVCs and are billed based on actual volumes throughput, other than a terminaling services agreement between the East Coast Terminals’ Paulsboro, New Jersey location and PBF Holding with a 15,000 bpd MVC.


~~(f)~~	~~The East Coast Terminal related party agreements include varying term lengths, ranging from~~ ~~one~~ to ~~five~~ ~~years.~~


~~(g)~~	~~Subsequent to the Toledo Terminal Acquisition, the Toledo Terminal was added to the East Coast Terminals Terminaling Service Agreements.~~

Other Agreements

In addition to the commercial agreements described above, ~~at the closing of the Offering,~~ PBFX has entered into an omnibus agreement with PBF GP, PBF LLC and PBF Holding, which has been amended and restated in connection with certain of the Acquisitions from PBF (as amended, the “Omnibus Agreement”). The Omnibus Agreement addresses the payment of an annual fee for the provision of various general and administrative services and reimbursement of salary and benefit costs for certain PBF Energy employees. ~~The annual fee was increased to $6,900 per year effective as of January 1, 2017.~~

~~In connection with the Offering,~~Additionally, PBFX ~~also~~has entered into an operation and management services and secondment agreement with PBF Holding and certain of its subsidiaries (the “Services Agreement”), pursuant to which PBF Holding and its subsidiaries provide PBFX with the personnel necessary for the Partnership to perform its obligations under its commercial agreements. PBFX reimburses PBF Holding for the use of such employees and the provision of certain infrastructure-related services to the extent applicable to its operations, including storm water discharge and waste

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~

water treatment, steam, potable water, access to certain roads and grounds, sanitary sewer access, electrical power, emergency response, filter press, fuel gas, API solids treatment, fire water and compressed air. On February 28, 2017, the Partnership entered into the Fifth Amended and Restated Operation and Management Services and Secondment Agreement (as amended, the “Services Agreement”) in connection with the PNGPC Acquisition resulting in an increase to the annual fee to $6,696. The Services Agreement will terminate upon the termination of the Omnibus Agreement, provided that the Partnership may terminate any service on ~~30 days’~~30-days’ notice.

In connection with the Chalmette Storage Agreement, PBFX Op Co and Chalmette Refining have entered into a twenty-year lease for the premises upon which the tank will be located (the “Lease”) and a project management agreement (the “Project Management Agreement”) pursuant to which Chalmette Refining has managed the construction of the tank. The Lease can be extended by PBFX Op Co for two additional ten-year periods.

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

Summary of Transactions

A summary of revenue and expense transactions with the Partnership’s affiliates, including expenses directly charged and allocated to the Partnership, is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016		2018		2017		2018		2017
Revenues	$	62,359	$	43,842	$	176,916	$	118,356
Revenue									$	63,785	$	58,355	$	124,649	$	114,557
Operating and maintenance expenses	1,639		1,280		4,918		3,523		1,674		1,661		3,348		3,279
General and administrative expenses	1,890		1,201		5,174		3,460		1,737		1,630		3,437		3,284

11. SEGMENT INFORMATION

The Partnership’s operations are consolidated into operating segments, which are strategic business units that offer different services in various geographical locations. PBFX has evaluated the performance of each operating segment based on its respective operating income. The operating segments adhere to the accounting polices used for the consolidated financial statements, as described in Note 2 “Summary of Accounting Policies” of the Notes to Consolidated Financial Statements in the 2017 Form 10-K.

The Partnership’s operating segments are organized into two reportable segments, Transportation and Terminaling and Storage. Operations that are not included in either the Transportation and Terminaling or the Storage segments are included in Corporate.

~~Our~~The Partnership’s Transportation and Terminaling segment consists of ~~the following assets:~~

~~the DCR Rail Terminal, which serves PBF Holding’s Delaware City and Paulsboro refineries, consisting of a double loop track with ancillary pumping and unloading equipment;~~

~~the DCR West Rack, which serves PBF Holding’s Delaware City Refinery, consisting of a heavy crude oil rail unloading facility;~~

~~the Toledo Truck Terminal, which serves PBF Holding’s Toledo Refinery, comprised of~~operating segments that include product terminals, pipelines, crude unloading ~~LACT units;~~

~~a propane truck loading facility, located within the Toledo Storage Facility, located at PBF Holding’s Toledo Refinery;~~

~~the Delaware City Products Pipeline, which consists of an interstate petroleum products pipeline supporting PBF Holding’s Delaware City Refinery;~~

~~the Delaware City Truck Rack, which consists of a truck loading rack utilized to distribute gasoline, distillates~~facilities and ~~liquefied petroleum gases (“LPGs”) located at PBF Holding’s Delaware City Refinery;~~

~~the East Coast Terminals, which consist of product tanks, pipeline connections to the Colonial Pipeline Company, Buckeye Partners, Sunoco Logistics Partners and~~ other ~~proprietary pipeline systems, truck loading lanes and marine~~ facilities capable of ~~handling barges~~transporting and ~~ships;~~

~~the Torrance Valley Pipeline, which consists of the M55, M1 and M70 crude pipelines and pipeline stations supporting PBF Holding’s Torrance Refinery;~~

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~

~~the Paulsboro Natural Gas Pipeline, which consists of an interstate natural gas pipeline which serves PBF Holding’s Paulsboro Refinery; and~~

~~the Toledo Terminal, which is located adjacent to PBF Holding’s Toledo Refinery and is comprised of a ten-bay truck rack and chemicals, clean product and additive storage capacity.~~

~~Our Storage segment consists of the following assets:~~

~~the Toledo Storage Facility, excluding the propane truck loading facility, which services PBF Holding’s Toledo Refinery and consists of tanks for storing~~handling crude oil, refined products and ~~intermediates; and~~

~~the Chalmette~~natural gas. The Partnership’s Storage ~~Tank, a~~segment consist of operating segments that include storage facilities capable of handling crude oil, ~~storage tank currently under construction located at PBF Holding’s Chalmette Refinery.~~refined products and intermediates.

Revenues are generated from third-party transactions as well as commercial agreements entered into with PBF Holding under which the Partnership receives fees for transportation, terminaling and storage of crude oil, refined products and natural gas. The ~~commercial agreements with PBF Holding are described in Note 10 “Related Party Transactions” of the Notes to Condensed Consolidated Financial Statements. The~~ Partnership does not have any foreign operations.

The operating segments adhere to the accounting polices used for the consolidated financial statements, as described in Note 2 “Summary of Accounting Policies” of the Notes to Consolidated Financial Statements in the 2016 Form 10-K. The Partnership’s operating segments are strategic business units that offer different services in different geographical locations. PBFX has evaluated the performance of each operating segment based on its respective operating income. Certain general and administrative expenses and interest and financing costs are included in Corporate as they are not directly attributable to a specific ~~operating~~reporting segment. Identifiable assets are those used by the operating segment, whereas assets included in Corporate are principally cash, deposits and other assets that are not associated with operations specific to a ~~specific operating~~reporting segment.

Three Months Ended September 30, 2017
Transportation and Terminaling Storage Corporate Consolidated Total
Total revenue $ 59,907
$ 5,587
$ —
$ 65,494
Depreciation and amortization expense 4,989
621
—
5,610
Income (loss) from operations 41,056
2,898
(3,534 ) 40,420
Interest expense, net and amortization of loan fees —
—
7,748
7,748
Capital expenditures 8,763
6,293
—
15,056

Three Months Ended September 30, 2016*
Transportation and Terminaling Storage Corporate Consolidated Total
Total revenue $ 42,951
$ 5,482
$ —
$ 48,433
Depreciation and amortization expense 4,752
595
—
5,347
Income (loss) from operations 27,848
2,335
(4,420 ) 25,763
Interest expense, net and amortization of loan fees —
—
7,696
7,696
Capital expenditures 4,511
92
—
4,603



	Three Months Ended June 30, 2018
	Transportation and Terminaling		Storage		Corporate			Consolidated Total
Total revenue	$	60,432	$	6,966	$	—		$	67,398
Depreciation and amortization expense	5,994		925		—			6,919
Income (loss) from operations	37,318		4,050		(6,488		)	34,880
Interest expense, net and amortization of loan fees and debt premium	—		—		10,425			10,425
Capital expenditures, including the Knoxville Terminals Purchase	59,566		2		—			59,568

2925

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM,~~ UNIT AND PER UNIT DATA)

* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition.



	Three Months Ended June 30, 2017
	Transportation and Terminaling		Storage		Corporate			Consolidated Total
Total revenue	$	56,603	$	5,726	$	—		$	62,329
Depreciation and amortization expense	5,090		620		—			5,710
Income (loss) from operations	37,788		3,327		(6,098		)	35,017
Interest expense, net and amortization of loan fees and debt premium	—		—		7,886			7,886
Capital expenditures, including the Toledo Products Terminal Acquisition	32,540		4,378		—			36,918


	Nine Months Ended September 30, 2017									Six Months Ended June 30, 2018
	Transportation and Terminaling		Storage		Corporate			Consolidated Total		Transportation and Terminaling		Storage		Corporate			Consolidated Total
Total revenue	$	171,449	$	16,851	$	—		$	188,300	$	117,402	$	14,035	$	—		$	131,437
Depreciation and amortization expense	14,830		1,842		—			16,672		11,564		1,850		—			13,414
Income (loss) from operations	114,950		9,475		(12,947		)	111,478		72,823		8,041		(10,779		)	70,085
Interest expense, net and amortization of loan fees	—		—		23,618			23,618
Capital expenditures, including the Toledo Terminal Acquisition	56,596		14,845		—			71,441
Interest expense, net and amortization of loan fees and debt premium										—		—		20,373			20,373
Capital expenditures, including the Knoxville Terminals Purchase										63,433		88		—			63,521

Nine Months Ended September 30, 2016*
Transportation and Terminaling Storage Corporate Consolidated Total
Total revenue $ 109,315
$ 16,326
$ —
$ 125,641
Depreciation and amortization expense 7,713
1,830
—
9,543
Income (loss) from operations 81,463
7,750
(13,896 ) 75,317
Interest expense, net and amortization of loan fees —
—
22,559
22,559
Capital expenditures, including the Plains Asset Purchase 105,124
1,292
—
106,416

* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition.



	Six Months Ended June 30, 2017
	Transportation and Terminaling		Storage		Corporate			Consolidated Total
Total revenue	$	111,542	$	11,264	$	—		$	122,806
Depreciation and amortization expense	9,841		1,221		—			11,062
Income (loss) from operations	73,894		6,577		(9,413		)	71,058
Interest expense, net and amortization of loan fees and debt premium	—		—		15,870			15,870
Capital expenditures, including the Toledo Products Terminal Acquisition	47,833		8,552		—			56,385

Balance at September 30, 2017
Transportation and Terminaling Storage Corporate Consolidated Total
Total assets $ 664,251
$ 70,306
$ 19,920
$ 754,477

Balance at December 31, 2016
Transportation and Terminaling Storage Corporate Consolidated Total
Total assets $ 606,898
$ 57,375
$ 92,588
$ 756,861

~~12. SUBSEQUENT EVENTS~~

~~Senior Notes Offering~~

On October 6, 2017, PBFX issued $175,000 in aggregate principal amount of 6.875% Senior Notes due 2023. The new 2023 Notes were issued under the indenture governing the initial 2023 Notes issued on May 12, 2015. The new 2023 Notes are expected to be treated as a single series with the initial 2023 Notes and will have the same terms as those initial notes except that (i) the new 2023 Notes will be subject to a separate registration rights agreement and (ii) the new 2023 Notes will be issued initially under CUSIP numbers different from the initial 2023 Notes. PBFX used the net proceeds of the new 2023 Notes to repay a portion of its existing Revolving Credit Facility and for general partnership purposes.



	Balance at June 30, 2018
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total assets	$	684,582	$	84,489	$	8,685	$	777,756

3026

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM,~~ UNIT AND PER UNIT DATA)



	Balance at December 31, 2017
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total assets	$	639,310	$	86,760	$	11,480	$	737,550

12. SUBSEQUENT EVENTS

Cash distribution

On ~~November~~August 2, ~~2017,~~2018, PBF GP’s board of directors announced a cash distribution, based on the results of the ~~third~~second quarter of ~~2017,~~2018, of ~~$0.48~~$0.4950 per unit. The distribution is payable on ~~November 29, 2017~~August 30, 2018 to PBFX unitholders of record at the close of business on ~~November 13, 2017.~~August 15, 2018.

East Coast Storage Assets Acquisition

On July 16, 2018, PBFX entered into an agreement with Crown Point International, LLC, formerly known as Axeon Specialty Products LLC, to purchase its wholly-owned subsidiary, CPI Operations LLC (the “East Coast Storage Assets Acquisition”) for total consideration of $107,000, which is comprised of an initial payment at closing of $75,000 with the balance being payable one year after closing. The East Coast Storage Assets Acquisition is expected to close in the fourth quarter of 2018, subject to customary regulatory and other approvals.

Registered Direct Offering

On July 16, 2018, the Partnership entered into a common unit purchase agreement with certain funds managed by Tortoise Capital Advisors, L.L.C. providing for the issuance and sale in a registered direct offering (the “Registered Direct Offering”) of an aggregate of 1,775,750 common units for gross proceeds of approximately $35,000. The Registered Direct Offering closed on July 30, 2018.

Development Assets Acquisition

On July 16, 2018, PBFX entered into contribution agreements with subsidiaries of PBF LLC pursuant to which PBF Energy has agreed to contribute to PBFX certain of its subsidiaries (the “Development Assets Acquisition”), whose assets include the Toledo Rail Products Facility, an unloading and loading rail facility; the Chalmette Truck Rack, a truck loading rack facility; the Chalmette Rosin Yard, a rail yard facility; the Paulsboro Lube Oil Terminal, a lubes oil terminal facility; and the Delaware Ethanol Storage Facility, an ethanol storage facility (collectively, the “Development Assets”). The Development Assets Acquisition closed on July 31, 2018 for total consideration of $31,586 consisting of 1,494,134 common units of PBFX issued to PBF LLC.

A&R Revolving Credit Facility

On July 30, 2018, PBFX amended and restated its Revolving Credit Facility dated May 14, 2014. Among other things, the A&R Revolving Credit Facility increases the maximum commitment available to PBFX from $360,000 to $500,000 and extends the maturity date to July 2023. The commitment fees on the unused portion, the interest rate on advances and the fees for letters of credit are consistent with the Revolving Credit Facility. The A&R Revolving Credit Facility contains representations, warranties and covenants by PBFX, as well as customary events of default and indemnification obligations that are consistent with, or more favorable to PBFX, than those in the Revolving Credit Facility.

3127

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM,~~ UNIT AND PER UNIT DATA)

13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF LOGISTICS

DCLC, Delaware Pipeline Company LLC, Delaware City Terminaling Company LLC, Toledo Terminaling Company LLC, PLPT, PBFX Op Co, TVPC and PNGPC serve as guarantors of the obligations under the ~~initial~~ 2023 Notes. These guarantees are full and unconditional and joint and several. For purposes of the following footnote, the Partnership is referred to as “Issuer.” The indenture dated May 12, 2015, among the Partnership, PBF Logistics Finance Corporation (“PBF Logistics Finance”), the guarantors party thereto and Deutsche Bank Trust Company Americas, as Trustee, governs subsidiaries designated as “Guarantor Subsidiaries.” In addition, PBF LLC provides a limited guarantee of collection of the principal amount of the 2023 Notes, but is not otherwise subject to the covenants of the Indenture. Refer to PBF LLC’s condensed consolidated interim financial statements, which are included in its Quarterly Report on Form 10-Q.

The ~~initial~~ 2023 Notes were co-issued by PBF Logistics Finance. For purposes of the following footnote, PBF Logistics Finance is referred to as “Co-Issuer.” The Co-Issuer has no independent assets or operations.

The following supplemental combining and condensed consolidating financial information reflects the Issuer’s separate accounts, the combined accounts of the Guarantor Subsidiaries, the combining and consolidating adjustments and eliminations and the Issuer’s consolidated accounts for the dates and periods indicated. For purposes of the following combining and consolidating information, the Issuer’s investment in its subsidiaries and the Guarantor Subsidiaries’ investment in its subsidiaries are accounted for under the equity method of accounting.

3228

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM,~~UNIT AND PER UNIT DATA)

13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF LOGISTICS CONDENSED CONSOLIDATING BALANCE SHEET



	June 30, 2018
	Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Combining and Consolidating Adjustments			Total
ASSETS
Current assets:
Cash and cash equivalents	$	8,116		$	11,565	$	—	$	—		$	19,681
Accounts receivable - affiliates	1			31,472		—		—			31,473
Accounts receivable	—			2,500		—		—			2,500
Prepaids and other current assets	568			983		—		—			1,551
Due from related parties	130,174			473,191		—		(603,365		)	—
Total current assets	138,859			519,711		—		(603,365		)	55,205
Property, plant and equipment, net	—			710,412		—		—			710,412
Goodwill	—			6,332		—		—			6,332
Other non-current assets	—			5,807		—		—			5,807
Investment in subsidiaries	929,576			—		—		(929,576		)	—
Total assets	$	1,068,435		$	1,242,262	$	—	$	(1,532,941	)	$	777,756

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable - affiliates	$	2,322		$	4,423	$	—	$	—		$	6,745
Accounts payable and accrued liabilities	7,635			6,074		—		—			13,709
Deferred revenue	—			1,152		—		—			1,152
Due to related parties	473,191			130,174		—		(603,365		)	—
Total current liabilities	483,148			141,823		—		(603,365		)	21,606
Long-term debt	603,581			—		—		—			603,581
Other long-term liabilities	—			1,825		—		—			1,825
Total liabilities	1,086,729			143,648		—		(603,365		)	627,012

Commitments and contingencies (Note 9)

Equity:
Net Investment - Predecessor	—			929,576		—		(929,576		)	—
Common unitholders	(21,709		)	—		—		—			(21,709		)
IDR holder - PBF LLC	3,415			—		—		—			3,415
Total PBF Logistics LP equity	(18,294		)	929,576		—		(929,576		)	(18,294		)
Noncontrolling interest	—			169,038		—		—			169,038
Total equity	(18,294		)	1,098,614		—		(929,576		)	150,744
Total liabilities and equity	$	1,068,435		$	1,242,262	$	—	$	(1,532,941	)	$	777,756

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF LOGISTICS

CONDENSED CONSOLIDATING BALANCE SHEET



	December 31, 2017
	Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Combining and Consolidating Adjustments			Total
ASSETS
Current assets:
Cash and cash equivalents	$	10,909		$	8,755	$	—	$	—		$	19,664
Accounts receivable - affiliates	1			40,816		—		—			40,817
Accounts receivable	—			1,423		—		—			1,423
Prepaids and other current assets	571			1,222		—		—			1,793
Due from related parties	64,162			388,737		—		(452,899		)	—
Total current assets	75,643			440,953		—		(452,899		)	63,697
Property, plant and equipment, net	—			673,823		—		—			673,823
Other non-current assets	—			30		—		—			30
Investment in subsidiaries	856,257			—		—		(856,257		)	—
Total assets	$	931,900		$	1,114,806	$	—	$	(1,309,156	)	$	737,550

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable - affiliates	$	2,022		$	6,330	$	—	$	—		$	8,352
Accounts payable and accrued liabilities	7,156			12,638		—		—			19,794
Deferred revenue	—			1,438		—		—			1,438
Due to related parties	388,737			64,162		—		(452,899		)	—
Total current liabilities	397,915			84,568		—		(452,899		)	29,584
Long-term debt	548,793			—		—		—			548,793
Other long-term liabilities	—			2,078		—		—			2,078
Total liabilities	946,708			86,646		—		(452,899		)	580,455

Commitments and contingencies (Note 9)

Equity:
Net Investment - Predecessor	—			856,257		—		(856,257		)	—
Common unitholders	(17,544		)	—		—		—			(17,544		)
IDR holder - PBF LLC	2,736			—		—		—			2,736
Total PBF Logistics LP equity	(14,808		)	856,257		—		(856,257		)	(14,808		)
Noncontrolling interest	—			171,903		—		—			171,903
Total equity	(14,808		)	1,028,160		—		(856,257		)	157,095
Total liabilities and equity	$	931,900		$	1,114,806	$	—	$	(1,309,156	)	$	737,550

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF LOGISTICS

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

September 30, 2017
Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Combining and Consolidating Adjustments Total
ASSETS
Current assets:
Cash and cash equivalents $ 19,014
$ 20,406
$ —
$ —
$ 39,420
Accounts receivable - affiliates 1
36,044
—
—
36,045
Accounts receivable —
1,106
—
—
1,106
Prepaid expenses and other current assets 905
1,178
—
—
2,083
Due from related parties 33,328
339,093
—
(372,421 ) —
Total current assets 53,248
397,827
—
(372,421 ) 78,654

Property, plant and equipment, net —
675,793
—
—
675,793
Other non-current assets —
30
—
—
30
Investment in subsidiaries 818,481
—
—
(818,481 ) —
Total assets $ 871,729
$ 1,073,650
$ —
$ (1,190,902 ) $ 754,477

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable - affiliates $ 3,062
$ 16,876
$ —
$ —
$ 19,938
Accounts payable and accrued liabilities 12,365
17,552
—
—
29,917
Affiliate note payable —
11,600
—
—
11,600
Deferred revenue —
991
—
—
991
Due to related parties 339,093
33,328
—
(372,421 ) —
Total current liabilities 354,520
80,347
—
(372,421 ) 62,446

Long-term debt 533,136
—
—
—
533,136
Other long-term liabilities —
2,070
—
—
2,070
Total liabilities 887,656
82,417
—
(372,421 ) 597,652

Commitments and contingencies

Equity:
Net Investment - Predecessor —
818,481
—
(818,481 ) —
Common unitholders ⁽¹⁾
(18,453 ) —
—
—
(18,453 )
IDR holder - PBF LLC 2,526
—
—
—
2,526
Total PBF Logistics LP equity (15,927 ) 818,481
—
(818,481 ) (15,927 )
Noncontrolling interest —
172,752
—
—
172,752
Total equity (15,927 ) 991,233
—
(818,481 ) 156,825
Total liabilities and equity $ 871,729
$ 1,073,650
$ —
$ (1,190,902 ) $ 754,477



	Three Months Ended June 30, 2018
	Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Combining and Consolidating Adjustments			Total
Revenue:
Affiliate	$	—		$	63,785	$	—	$	—		$	63,785
Third-party	—			3,613		—		—			3,613
Total revenue	—			67,398		—		—			67,398

Costs and expenses:
Operating and maintenance expenses	—			19,111		—		—			19,111
General and administrative expenses	6,488			—		—		—			6,488
Depreciation and amortization	—			6,919		—		—			6,919
Total costs and expenses	6,488			26,030		—		—			32,518

Income (loss) from operations	(6,488		)	41,368		—		—			34,880

Other income (expense):
Equity in earnings of subsidiaries	41,368			—		—		(41,368		)	—
Interest expense, net	(10,029		)	—		—		—			(10,029		)
Amortization of loan fees and debt premium	(396		)	—		—		—			(396		)
Net income	24,455			41,368		—		(41,368		)	24,455
Less: Net income attributable to noncontrolling interest	—			4,363		—		—			4,363
Net income attributable to the partners	24,455			37,005		—		(41,368		)	20,092
Less: Net income attributable to the IDR holder	3,415			—		—		—			3,415
Net income attributable to PBF Logistics LP unitholders	$	21,040		$	37,005	$	—	$	(41,368	)	$	16,677

~~(1) Subsequent to the conversion of the PBFX subordinated units held by~~

PBF ~~LLC, common units held by the public and~~LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF LLC are shown in total. Refer to Notes 6 “Equity” and 8 “Net Income per Unit” of the Notes to Condensed Consolidated Financial Statements for further discussion regarding the subordinated units’ conversion.LOGISTICS

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS



	Three Months Ended June 30, 2017
	Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Combining and Consolidating Adjustments			Total
Revenue:
Affiliate	$	—		$	58,355	$	—	$	—		$	58,355
Third-party	—			3,974		—		—			3,974
Total revenue	—			62,329		—		—			62,329

Costs and expenses:
Operating and maintenance expenses	—			15,504		—		—			15,504
General and administrative expenses	6,098			—		—		—			6,098
Depreciation and amortization	—			5,710		—		—			5,710
Total costs and expenses	6,098			21,214		—		—			27,312

Income (loss) from operations	(6,098		)	41,115		—		—			35,017

Other income (expense):
Equity in earnings of subsidiaries	41,115			—		—		(41,115		)	—
Interest expense, net	(7,509		)	—		—		—			(7,509		)
Amortization of loan fees	(377		)	—		—		—			(377		)
Net income	27,131			41,115		—		(41,115		)	27,131
Less: Net income attributable to noncontrolling interest	—			3,820		—		—			3,820
Net income attributable to the partners	27,131			37,295		—		(41,115		)	23,311
Less: Net income attributable to the IDR holder	2,107			—		—		—			2,107
Net income attributable to PBF Logistics LP unitholders	$	25,024		$	37,295	$	—	$	(41,115	)	$	21,204

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, UNIT AND PER UNIT DATA)

13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF LOGISTICS

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS



	Six Months Ended June 30, 2018
	Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Combining and Consolidating Adjustments			Total
Revenue:
Affiliate	$	—		$	124,649	$	—	$	—		$	124,649
Third-party	—			6,788		—		—			6,788
Total revenue	—			131,437		—		—			131,437

Costs and expenses:
Operating and maintenance expenses	—			37,159		—		—			37,159
General and administrative expenses	10,779			—		—		—			10,779
Depreciation and amortization	—			13,414		—		—			13,414
Total costs and expenses	10,779			50,573		—		—			61,352

Income (loss) from operations	(10,779		)	80,864		—		—			70,085

Other income (expense):
Equity in earnings of subsidiaries	80,864			—		—		(80,864		)	—
Interest expense, net	(19,614		)	—		—		—			(19,614		)
Amortization of loan fees and debt premium	(759		)	—		—		—			(759		)
Net income	49,712			80,864		—		(80,864		)	49,712
Less: Net income attributable to noncontrolling interest	—			8,385		—		—			8,385
Net income attributable to the partners	49,712			72,479		—		(80,864		)	41,327
Less: Net income attributable to the IDR holder	6,370			—		—		—			6,370
Net income attributable to PBF Logistics LP unitholders	$	43,342		$	72,479	$	—	$	(80,864	)	$	34,957

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM,~~ UNIT AND PER UNIT DATA)

13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF LOGISTICS

CONDENSED CONSOLIDATING ~~BALANCE SHEET~~

STATEMENT OF OPERATIONS

December 31, 2016
Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Combining and Consolidating Adjustments Total
ASSETS
Current assets:
Cash and cash equivalents $ 52,133
$ 12,088
$ —
$ —
$ 64,221
Marketable securities - current 40,024
—
—
—
40,024
Accounts receivable - affiliates 125
37,738
—
—
37,863
Accounts receivable —
4,294
—
—
4,294
Prepaid expenses and other current assets 306
1,351
—
—
1,657
Due from related parties 5,168
246,870
—
(252,038 ) —
Total current assets 97,756
302,341
—
(252,038 ) 148,059

Property, plant and equipment, net —
608,802
—
—
608,802
Investment in subsidiaries 694,636
—
—
(694,636 ) —
Total assets $ 792,392
$ 911,143
$ —
$ (946,674 ) $ 756,861

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable - affiliates $ 1,670
$ 5,961
$ —
$ —
$ 7,631
Accounts payable and accrued liabilities 5,719
15,152
—
—
20,871
Current portion of long-term debt 39,664
—
—
—
39,664
Deferred revenue —
952
—
—
952
Due to related parties 246,870
5,168
—
(252,038 ) —
Total current liabilities 293,923
27,233
—
(252,038 ) 69,118

Long-term debt 532,011
—
—
—
532,011
Other long-term liabilities —
3,161
—
—
3,161
Total liabilities 825,934
30,394
—
(252,038 ) 604,290

Commitments and contingencies

Equity:
Net Investment - Predecessor —
700,867
—
(694,636 ) 6,231
Common unitholders 241,275
—
—
—
241,275
Subordinated unitholder - PBF LLC (276,083 ) —
—
—
(276,083 )
IDR holder - PBF LLC 1,266
—
—
—
1,266
Total PBF Logistics LP equity (33,542 ) 700,867
—
(694,636 ) (27,311 )
Noncontrolling interest —
179,882
—
—
179,882
Total equity (33,542 ) 880,749
—
(694,636 ) 152,571
Total liabilities and equity $ 792,392
$ 911,143
$ —
$ (946,674 ) $ 756,861



	Six Months Ended June 30, 2017
	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Combining and Consolidating Adjustments			Total
Revenue:
Affiliate	$	—		$	114,557		$	—	$	—		$	114,557
Third-party	—			8,249			—		—			8,249
Total revenue	—			122,806			—		—			122,806

Costs and expenses:
Operating and maintenance expenses	—			31,273			—		—			31,273
General and administrative expenses	9,413			—			—		—			9,413
Depreciation and amortization	—			11,062			—		—			11,062
Total costs and expenses	9,413			42,335			—		—			51,748

Income (loss) from operations	(9,413		)	80,471			—		—			71,058

Other income (expense):
Equity in earnings of subsidiaries	80,471			—			—		(80,471		)	—
Interest expense, net	(15,077		)	—			—		—			(15,077		)
Amortization of loan fees	(793		)	—			—		—			(793		)
Net income	55,188			80,471			—		(80,471		)	55,188
Less: Net loss attributable to Predecessor	—			(150		)	—		—			(150		)
Less: Net income attributable to noncontrolling interest	—			7,419			—		—			7,419
Net income attributable to the partners	55,188			73,202			—		(80,471		)	47,919
Less: Net income attributable to the IDR holder	3,793			—			—		—			3,793
Net income attributable to PBF Logistics LP unitholders	$	51,395		$	73,202		$	—	$	(80,471	)	$	44,126

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM,~~ UNIT AND PER UNIT DATA)

13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF LOGISTICS

CONDENSED CONSOLIDATING STATEMENT OF ~~OPERATIONS~~

CASH FLOWS

Three Months Ended September 30, 2017
Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Combining and Consolidating Adjustments Total
Revenue:
Affiliate $ —
$ 62,359
$ —
$ —
$ 62,359
Third-party —
3,135
—
—
3,135
Total revenue —
65,494
—
—
65,494

Costs and expenses:
Operating and maintenance expenses —
15,930
—
—
15,930
General and administrative expenses 3,534
—
—
—
3,534
Depreciation and amortization —
5,610
—
—
5,610
Total costs and expenses 3,534
21,540
—
—
25,074

(Loss) income from operations (3,534 ) 43,954
—
—
40,420

Other income (expenses)
Equity in earnings of subsidiaries 43,954
—
—
(43,954 ) —
Interest expense, net (7,416 ) —
—
—
(7,416 )
Amortization of loan fees (332 ) —
—
—
(332 )
Net income 32,672
43,954
—
(43,954 ) 32,672
Less: Net income attributable to noncontrolling interest —
3,799
—
—
3,799
Net income attributable to the partners 32,672
40,155
—
(43,954 ) 28,873
Less: Net income attributable to the IDR holder 2,526
—
—
—
2,526
Net income attributable to PBF Logistics LP unitholders $ 30,146
$ 40,155
$ —
$ (43,954 ) $ 26,347



	Six Months Ended June 30, 2018
	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Combining and Consolidating Adjustments			Total
Cash flows from operating activities:
Net income	$	49,712		$	80,864		$	—	$	(80,864	)	$	49,712
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	—			13,414			—		—			13,414
Amortization of loan fees and debt premium	759			—			—		—			759
Unit-based compensation expense	3,497			—			—		—			3,497
Equity in earnings of subsidiaries	(80,864		)	—			—		80,864			—
Changes in operating assets and liabilities:
Accounts receivable - affiliates	—			9,344			—		—			9,344
Accounts receivable	—			(1,077		)	—		—			(1,077		)
Prepaids and other current assets	3			239			—		—			242
Accounts payable - affiliates	300			(1,907		)	—		—			(1,607		)
Accounts payable and accrued liabilities	(161		)	(5,165		)	—		—			(5,326		)
Amounts due to (from) related parties	18,442			(18,442		)	—		—			—
Deferred revenue	—			(286		)	—		—			(286		)
Other assets and liabilities	(1,049		)	(253		)	—		—			(1,302		)
Net cash (used in) provided by operating activities	(9,361		)	76,731			—		—			67,370

Cash flows from investing activities:
Knoxville Terminals Purchase	—			(58,000		)	—		—			(58,000		)
Expenditures for property, plant and equipment	—			(5,521		)	—		—			(5,521		)
Investment in subsidiaries	(850		)	—			—		850			—
Net cash used in investing activities	$	(850	)	$	(63,521	)	$	—	$	850		$	(63,521	)

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM,~~ UNIT AND PER UNIT DATA)

13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF LOGISTICS

CONDENSED CONSOLIDATING STATEMENT OF ~~OPERATIONS~~

CASH FLOWS (Continued)

Three Months Ended September 30, 2016*
Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Combining and Consolidating Adjustments Total
Revenue:
Affiliate $ —
$ 38,112
$ 5,730
$ —
$ 43,842
Third-party —
4,591
—
—
4,591
Total revenue —
42,703
5,730
—
48,433

Costs and expenses:
Operating and maintenance expenses —
9,311
3,592
—
12,903
General and administrative expenses 4,066
1
353
—
4,420
Depreciation and amortization —
2,674
2,673
—
5,347
Total costs and expenses 4,066
11,986
6,618
—
22,670

(Loss) income from operations (4,066 ) 30,717
(888 ) —
25,763

Other income (expenses)
Equity in earnings of subsidiaries 29,829
—
—
(29,829 ) —
Interest expense, net (7,280 ) —
—
—
(7,280 )
Amortization of loan fees (416 ) —
—
—
(416 )
Net income (loss) 18,067
30,717
(888 ) (29,829 ) 18,067
Less: Net loss attributable to Predecessor —
(297 ) (4,131 ) —
(4,428 )
Less: Net income attributable to noncontrolling interest —
—
1,621
—
1,621
Net income attributable to the partners 18,067
31,014
1,622
(29,829 ) 20,874
Less: Net income attributable to the IDR holder 1,125
—
—
—
1,125
Net income attributable to PBF Logistics LP unitholders $ 16,942
$ 31,014
$ 1,622
$ (29,829 ) $ 19,749

* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition.



	Six Months Ended June 30, 2018
	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Combining and Consolidating Adjustments			Total
Cash flows from financing activities:
Distributions to unitholders	$	(46,611	)	$	—		$	—	$	—		$	(46,611	)
Contribution from parent	—			850			—		(850		)	—
Distributions to TVPC members	—			(11,250		)	—		—			(11,250		)
Proceeds from revolving credit facility	64,000			—			—		—			64,000
Repayment of revolving credit facility	(9,700		)	—			—		—			(9,700		)
Deferred financing costs and other	(271		)	—			—		—			(271		)
Net cash provided by (used in) financing activities	7,418			(10,400		)	—		(850		)	(3,832		)

Net change in cash and cash equivalents	(2,793		)	2,810			—		—			17
Cash and cash equivalents at beginning of year	10,909			8,755			—		—			19,664
Cash and cash equivalents at end of period	$	8,116		$	11,565		$	—	$	—		$	19,681

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM, UNIT AND PER UNIT DATA)~~

~~13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF LOGISTICS~~

~~CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS~~

Nine Months Ended September 30, 2017
Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Combining and Consolidating Adjustments Total
Revenue:
Affiliate $ —
$ 176,916
$ —
$ —
$ 176,916
Third-party —
11,384
—
—
11,384
Total revenue —
188,300
—
—
188,300

Costs and expenses:
Operating and maintenance expenses —
47,203
—
—
47,203
General and administrative expenses 12,947
—
—
—
12,947
Depreciation and amortization —
16,672
—
—
16,672
Total costs and expenses 12,947
63,875
—
—
76,822

(Loss) income from operations (12,947 ) 124,425
—
—
111,478

Other income (expenses)
Equity in earnings of subsidiaries 124,425
—
—
(124,425 ) —
Interest expense, net (22,493 ) —
—
—
(22,493 )
Amortization of loan fees (1,125 ) —
—
—
(1,125 )
Net income 87,860
124,425
—
(124,425 ) 87,860
Less: Net loss attributable to Predecessor —
(150 ) —
—
(150 )
Less: Net income attributable to noncontrolling interest —
11,218
—
—
11,218
Net income attributable to the partners 87,860
113,357
—
(124,425 ) 76,792
Less: Net income attributable to the IDR holder 6,319
—
—
—
6,319
Net income attributable to PBF Logistics LP unitholders $ 81,541
$ 113,357
$ —
$ (124,425 ) $ 70,473

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM, UNIT AND PER UNIT DATA)~~

~~13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF LOGISTICS~~

~~CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS~~

Nine Months Ended September 30, 2016*
Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Combining and Consolidating Adjustments Total
Revenue:
Affiliate $ —
$ 112,626
$ 5,730
$ —
$ 118,356
Third-party —
7,285
—
—
7,285
Total revenue —
119,911
5,730
—
125,641

Costs and expenses:
Operating and maintenance expenses —
23,293
3,592
—
26,885
General and administrative expenses 13,540
3
353
—
13,896
Depreciation and amortization —
6,870
2,673
—
9,543
Total costs and expenses 13,540
30,166
6,618
—
50,324

(Loss) income from operations (13,540 ) 89,745
(888 ) —
75,317

Other income (expenses)
Equity in earnings of subsidiaries 88,857
—
—
(88,857 ) —
Interest expense, net (21,298 ) —
—
—
(21,298 )
Amortization of loan fees (1,261 ) —
—
—
(1,261 )
Net income (loss) 52,758
89,745
(888 ) (88,857 ) 52,758
Less: Net loss attributable to Predecessor —
(954 ) (4,131 ) —
(5,085 )
Less: Net income attributable to noncontrolling interest —
—
1,621
—
1,621
Net income attributable to the partners 52,758
90,699
1,622
(88,857 ) 56,222
Less: Net income attributable to the IDR holder 2,765
—
—
—
2,765
Net income attributable to PBF Logistics LP unitholders $ 49,993
$ 90,699
$ 1,622
$ (88,857 ) $ 53,457

* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition.

~~PBF LOGISTICS LP~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

~~(IN THOUSANDS, EXCEPT BARREL, DEKATHERM,~~ UNIT AND PER UNIT DATA)

13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF LOGISTICS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


	Nine Months Ended September 30, 2017														Six Months Ended June 30, 2017
	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Combining and Consolidating Adjustments			Total			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Combining and Consolidating Adjustments			Total
Cash flows from operating activities:
Net income	$	87,860		$	124,425		$	—	$	(124,425	)	$	87,860		$	55,188		$	80,471		$	—	$	(80,471	)	$	55,188
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	—			16,672			—		—			16,672			—			11,062			—		—			11,062
Amortization of deferred financing fees	1,125			—			—		—			1,125
Amortization of loan fees															793			—			—		—			793
Unit-based compensation expense	4,515			—			—		—			4,515			3,708			—			—		—			3,708
Equity in earnings of subsidiaries	(124,425		)	—			—		124,425			—			(80,471		)	—			—		80,471			—
Changes in operating assets and liabilities:
Accounts receivable - affiliates	124			694			—		—			818			29			5,425			—		—			5,454
Accounts receivable	—			3,188			—		—			3,188			—			2,412			—		—			2,412
Prepaid expenses and other current assets	(599		)	270			—		—			(329		)
Prepaids and other current assets															(644		)	49			—		—			(595		)
Accounts payable - affiliates	1,392			(892		)	—		—			500			7,642			(591		)	—		—			7,051
Accounts payable and accrued liabilities	5,817			1,888			—		—			7,705			2,284			4,128			—		—			6,412
Amounts due to (from) related parties	64,063			(64,063		)	—		—			—			30,409			(30,409		)	—		—			—
Deferred revenue	—			39			—		—			39			—			277			—		—			277
Other assets and liabilities	(7		)	(1,121		)	—		—			(1,128		)	(7		)	(1,102		)	—		—			(1,109		)
Net cash provided by operating activities	39,865			81,100			—		—			120,965			18,931			71,722			—		—			90,653

Cash flows from investing activities:
Toledo Terminal Acquisition	—			(10,097		)	—		—			(10,097		)
Toledo Products Terminal Acquisition															—			(10,097		)	—		—			(10,097		)
Expenditures for property, plant and equipment	—			(61,344		)	—		—			(61,344		)	—			(46,288		)	—		—			(46,288		)
Purchase of marketable securities	(75,036		)	—			—		—			(75,036		)	(75,036		)	—			—		—			(75,036		)
Maturities of marketable securities	115,060			—			—		—			115,060			115,060			—			—		—			115,060
Investment in subsidiaries	(10,550		)	—			—		10,550			—			(4,072		)	—			—		4,072			—
Net cash provided by (used in) investing activities	29,474			(71,441		)	—		10,550			(31,417		)	$	35,952		$	(56,385	)	$	—	$	4,072		$	(16,361	)

Cash flows from financing activities:
Distribution to unitholders	(62,794		)	—			—		—			(62,794		)
Distribution to TVPC members	—			(17,348		)	—		—			(17,348		)
Contribution from parent	—			16,007			—		(10,550		)	5,457
Repayment of term loan	(39,664		)	—			—		—			(39,664		)
Net cash used in financing activities	(102,458		)	(1,341		)	—		(10,550		)	(114,349		)

Net change in cash and cash equivalents	(33,119		)	8,318			—		—			(24,801		)
Cash and equivalents, beginning of period	52,133			12,088			—		—			64,221
Cash and equivalents, end of period	$	19,014		$	20,406		$	—	$	—		$	39,420

3937

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT BARREL, ~~DEKATHERM,~~ UNIT AND PER UNIT DATA)

13. CONDENSED CONSOLIDATING FINANCIAL STATEMENTS OF PBF LOGISTICS

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Continued)

Nine Months Ended September 30, 2016*
Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Combining and Consolidating Adjustments Total
Cash flows from operating activities:
Net income (loss) $ 52,758
$ 89,745
$ (888 ) $ (88,857 ) $ 52,758
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization —
6,870
2,673
—
9,543
Amortization of deferred financing fees 1,261
—
—
—
1,261
Unit-based compensation expense 3,673
—
—
—
3,673
Equity in earnings of subsidiaries (88,857 ) —
—
88,857
—
Changes in operating assets and liabilities:
Accounts receivable - affiliates (82 ) (510 ) (5,730 ) —
(6,322 )
Accounts receivable —
(3,981 ) —
—
(3,981 )
Prepaid expenses and other current assets (150 ) 2,384
—
—
2,234
Accounts payable - affiliates (20 ) (1,345 ) 288
—
(1,077 )
Accounts payable and accrued liabilities 6,817
(558 ) 3,304
—
9,563
Amounts due to (from) related parties 88,935
(88,935 ) —
—
—
Deferred revenue —
889
—
—
889
Other assets and liabilities (271 ) 15
—
—
(256 )
Net cash provided by (used in) operating activities 64,064
4,574
(353 ) —
68,285

Cash flows from investing activities:
Plains Asset Purchase (98,373 ) —
—
—
(98,373 )
Expenditures for property, plant and equipment —
(8,043 ) —
—
(8,043 )
Purchase of marketable securities (1,779,997 ) —
—
—
(1,779,997 )
Maturities of marketable securities 1,954,274
—
—
—
1,954,274
Investment in subsidiaries (1,157 ) —
—
1,157
—
Net cash provided by (used in) investing activities 74,747
(8,043 ) —
1,157
67,861

Cash flows from financing activities:
Proceeds from issuance of common units, net of underwriters’ discount and commissions 138,255
—
—
—
138,255
Distribution to PBF LLC related to Acquisitions from PBF (175,000 )
—
—
(175,000 )
Distribution to unitholders (48,043 ) —
—
—
(48,043 )
Contribution from parent —
4,880
353
(1,157 ) 4,076
Proceeds from revolving credit facility 174,700
—
—
—
174,700
Repayment of revolving credit facility (30,000 ) —
—
—
(30,000 )
Repayment of term loan (174,536 ) —
—
—
(174,536 )
Deferred financing costs and other (5 ) —
—
—
(5 )
Net cash (used in) provided by financing activities (114,629 ) 4,880
353
(1,157 ) (110,553 )

Net change in cash and cash equivalents 24,182
1,411
—
—
25,593
Cash and equivalents, beginning of period 18,678
—
—
—
18,678
Cash and equivalents, end of period $ 42,860
$ 1,411
$ —
$ —
$ 44,271



	Six Months Ended June 30, 2017
	Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Combining and Consolidating Adjustments			Total
Cash flows from financing activities:
Distributions to unitholders	$	(40,998	)	$	—		$	—	$	—		$	(40,998	)
Distributions to TVPC members	—			(12,254		)	—		—			(12,254		)
Contribution from parent	—			9,529			—		(4,072		)	5,457
Repayment of term loan	(39,664		)	—			—		—			(39,664		)
Net cash used in financing activities	(80,662		)	(2,725		)	—		(4,072		)	(87,459		)

Net change in cash and cash equivalents	(25,779		)	12,612			—		—			(13,167		)
Cash and cash equivalents at beginning of year	52,133			12,088			—		—			64,221
Cash and cash equivalents at end of period	$	26,354		$	24,700		$	—	$	—		$	51,054

* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition.

4038

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations together with the unaudited condensed consolidated financial statements and the notes thereto included elsewhere in this Form 10-Q. The following information and such unaudited condensed consolidated financial statements should also be read in conjunction with the audited consolidated financial statements and related notes, together with our discussion and analysis of financial condition and results of operations in our ~~2016~~2017 Form ~~10-K and in our Form 8-K issued May 11, 2017, which retrospectively adjusted items 6, 7 and 8 of our 2016 Form 10-K to give retrospective effect to the acquisition of PNGPC.~~10-K. This discussion contains forward-looking statements that are based on management’s current expectations, estimates and projections about our business and operations. The cautionary statements made in this report should be read as applying to all related forward-looking statements wherever they appear in this Form 10-Q. Our actual results may differ materially from those currently anticipated and expressed in such forward-looking statements as a result of a number of factors. You should read “Risk Factors” in our ~~2016~~2017 Form 10-K and “Cautionary Note Regarding Forward-Looking Statements” in this Form 10-Q. In this Item 2, all references to “we,” “us,” “our,” the “Partnership,” “PBFX” or similar terms for periods prior to the ~~Offering refer to the Predecessor or for assets acquired in the~~ Acquisitions from PBF (as defined below) prior to the effective date of each ~~acquisition.~~acquisition refer to the Predecessor. For periods subsequent to the ~~Offering or~~ effective dates of each of the Acquisitions from PBF, these terms refer to the Partnership and its subsidiaries.

Overview

PBFX is a fee-based, growth-oriented, Delaware master limited partnership formed in February 2013 by subsidiaries of PBF Energy to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets. PBF GP is our general partner and is wholly-owned by PBF LLC. PBF Energy is the sole managing member of PBF LLC and, as of ~~September~~June 30, ~~2017,~~2018, owned ~~96.6%~~99.0% of the total economic interest in PBF LLC. PBF LLC owns 18,459,497 of PBFX’s common units constituting an aggregate ~~44.1%~~43.9% limited partner interest in PBFX and owns all of PBFX’s IDRs, with the remaining ~~55.9%~~56.1% limited partner interest owned by public unitholders.

The Partnership includes the assets, liabilities and results of operations of certain crude oil, refined products, natural gas and intermediates transportation, terminaling ~~pipeline,~~ and storage assets, which include assets previously operated and owned by certain of PBF Holding’s ~~subsidiaries, DCR, TRC~~currently and ~~PBF Holding’s~~ previously held subsidiaries, ~~DPC, TVPC, and PNGPC,~~ which were acquired in ~~the Acquisitions~~a series of acquisitions from ~~PBF during~~ 2014 through ~~2017.~~2018.

~~2017~~2018 Business Developments

~~Senior Notes Offering~~

On October 6, 2017, we issued $175.0 million in aggregate principal amount of 6.875% Senior Notes due 2023 (the “new 2023 Notes”). The new 2023 Notes were issued under the indenture governing the 6.875% Senior Notes due 2023 issued on May 12, 2015 (the “initial 2023 Notes,” together with the new 2023 Notes, the “2023 Notes”). The new 2023 Notes are expected to be treated as a single series with the initial 2023 Notes and will have the same terms as those initial notes except that (i) the new 2023 Notes will be subject to a separate registration rights agreement and (ii) the new 2023 Notes will be issued initially under CUSIP numbers different from the initial 2023 Notes. We used the net proceeds of the new 2023 Notes to repay a portion of our existing Revolving Credit Facility (as defined below) and for general partnership purposes.

~~Expiration of Subordination Period~~

On June 1, 2017, the requirements under our partnership agreement for the conversion of all subordinated units into common units were satisfied and the subordination period ended. As a result, each of our 15,886,553 outstanding subordinated units converted into common units and began participating pro rata with the other common

units in distributions of available cash. The conversion did not impact the amount of the cash distribution paid or the total number of our outstanding units representing limited partner interests. Refer to Notes 6 “Equity” and 8 “Net Income per Unit” in our Notes to Condensed Consolidated Financial Statements included in “Item 1. Financial Statements” for additional information.

~~Toledo Terminal Acquisition~~Knoxville Terminals Purchase

On April ~~17, 2017,~~16, 2018, our wholly-owned subsidiary, PBF Logistics Products Terminals LLC (“PLPT”), ~~acquired~~completed the ~~Toledo, Ohio~~purchase of two refined ~~products terminal assets~~product terminals located in Knoxville, Tennessee, which include product tanks with a total shell capacity of approximately 0.5 million barrels, pipeline connections to the Colonial and Plantation pipeline systems and two truck loading facilities with nine loading bays (the ~~“Toledo Terminal”~~“Knoxville Terminals”) from ~~Sunoco Logistics Partners L.P.~~Cummins Terminals, Inc. (“Cummins”) for ~~an aggregate purchase price~~total cash consideration of ~~$10.0~~approximately $58.0 million, ~~plus~~excluding working capital adjustments (the ~~“Toledo Terminal Acquisition”~~“Knoxville Terminals Purchase”). The ~~Toledo Terminal is directly connected to,~~transaction was financed through a combination of cash on hand and ~~currently supplied by, PBF Holding’s Toledo Refinery. The Toledo Terminal is comprised of a ten-bay truck rack and over 110,000 barrels of chemicals, clean product and additive storage capacity.~~borrowings under our five-year $360.0 million revolving credit facility (“Revolving Credit Facility”).

~~PNGPC~~East Coast Storage Assets Acquisition

On ~~February 28, 2017,~~July 16, 2018, we ~~closed the transaction contemplated by the contribution agreement (the “PNGPC Contribution Agreement”)~~ entered into an agreement with ~~PBF~~Crown Point International, LLC, ~~dated~~formerly known as ~~of February 15, 2017. Pursuant~~Axeon Specialty Products LLC, to ~~the PNGPC Contribution Agreement, our~~purchase its wholly-owned subsidiary, ~~PBFX Operating Company~~CPI Operations LLC ~~(“PBFX Op Co”~~(the “East Coast Storage Assets Acquisition”)~~, acquired from PBF LLC all~~ for total consideration of ~~the issued and outstanding limited liability company interests~~$107.0 million, which is comprised of ~~PNGPC (the “PNGPC Acquisition”). PNGPC owns and operates~~ an ~~existing interstate natural gas pipeline (the “Paulsboro Natural Gas Pipeline”) and is subject to regulation by the Federal Energy Regulatory Commission (“FERC”). In connection~~initial payment at closing of $75.0 million with the ~~PNGPC~~balance being payable one year after closing. The East Coast Storage Assets Acquisition we constructed a new 24” pipeline (the “New Pipeline”) to replace the existing pipeline, which commenced services in August 2017. In consideration for the PNGPC limited liability company interests, we delivered to PBF LLC (i) an $11.6 million intercompany promissory note in favor of Paulsboro Refining Company LLC (“PRC”), a wholly owned subsidiary of PBF Holding (the “Affiliate Note Payable”), (ii) an expansion rights and right of first refusal agreement in favor of PBF LLC with respect to the New Pipeline and (iii) an assignment and assumption agreement with respect to certain outstanding litigation involving PNGPC and the existing pipeline. This acquisition is accounted for as a transfer of assets between entities under common control under U.S. generally accepted accounting principles (“GAAP”). Refer to Note 2 “Acquisitions” in our Notes to Condensed Consolidated Financial Statements included in “Item 1. Financial Statements” for further discussion regarding the PNGPC Acquisition.

~~Chalmette Storage Agreement~~

On February 15, 2017, PBF Holding and PBFX Op Co entered into a ten-year storage services agreement (the “Chalmette Storage Agreement”) under which we, through PBFX Op Co, will provide storage services to PBF Holding commencing upon the earlier of November 1, 2017 or the completion of construction of a new tank, which is expected to be completed in November 2017, with a shell capacity of 625,000 barrels at PBF Holding’s Chalmette Refinery. PBFX Op Co and Chalmette Refining, L.L.C. (“Chalmette Refining”) have entered into a twenty-year lease for the premises upon which the tank will be located (the “Lease”) and a project management agreement (the “Project Management Agreement”) pursuant to which Chalmette Refining has managed the construction of the tank. The Chalmette Storage Agreement can be extended by PBF Holding for two additional five-year periods. Under the Chalmette Storage Agreement, PBFX will provide PBF Holding with storage services in return for storage fees. The storage services require PBFX to accept, redeliver and store all products tendered by PBF Holdingclose in the ~~tank~~fourth quarter of 2018, subject to customary regulatory and ~~PBF Holding will pay a monthly fee of $0.60 per barrel of shell capacity. The Lease can be extended by PBFX Op Co for two additional ten-year periods.~~

other approvals.

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Registered Direct Offering

On July 16, 2018, we entered into a common unit purchase agreement with certain funds managed by Tortoise Capital Advisors, L.L.C. providing for the issuance and sale in a registered direct offering (the “Registered Direct Offering”) of an aggregate of 1,775,750 common units for gross proceeds of approximately $35.0 million. The Registered Direct Offering closed on July 30, 2018.

Development Assets Acquisition

On July 16, 2018, we entered into contribution agreements with subsidiaries of PBF LLC pursuant to which PBF Energy has agreed to contribute to us certain of its subsidiaries (the “Development Assets Acquisition”), whose assets include the Toledo Rail Products Facility, an unloading and loading rail facility; the Chalmette Truck Rack, a truck loading rack facility; the Chalmette Rosin Yard, a rail yard facility; the Paulsboro Lube Oil Terminal, a lubes oil terminal facility; and the Delaware Ethanol Storage Facility, an ethanol storage facility (collectively, the “Development Assets”). The Development Assets Acquisition closed on July 31, 2018 for total consideration of $31.6 million consisting of 1,494,134 common units of PBFX issued to PBF LLC.

A&R Revolving Credit Facility

On July 30, 2018, we amended and restated our Revolving Credit Facility dated May 14, 2014 (the “A&R Revolving Credit Facility”). Among other things, the A&R Revolving Credit Facility increases the maximum commitment available to us from $360.0 million to $500.0 million and extends the maturity date to July 2023. The commitment fees on the unused portion, the interest rate on advances and the fees for letters of credit are consistent with the Revolving Credit Facility. The A&R Revolving Credit Facility contains representations, warranties and covenants by us, as well as customary events of default and indemnification obligations that are consistent with, or more favorable to us, than those in the Revolving Credit Facility.

Principles of Combination and Consolidation and Basis of Presentation

Our Predecessor generally did not historically operate its assets for the purpose of generating revenues independent of other PBF Energy ~~businesses that~~businesses. In connection with, and subsequent to, our initial public offering (“IPO”), we ~~support,~~have acquired certain assets from PBF LLC (collectively referred to as the “Contributed Assets”). The acquisitions completed subsequent to the IPO were made through a series of drop-down transactions with PBF LLC (collectively referred to as the ~~exception of third-party revenue generated by Delaware City Products Pipeline (as defined below) prior to August 2013.~~“Acquisitions from PBF”). Upon the closing of ~~the Offering~~our IPO and the Acquisitions from PBF, we entered into commercial and service agreements with subsidiaries of PBF Energy under which we operate our assets for the purpose of generating fee-based revenues. We receive, handle and transfer crude oil, refined products and natural gas from sources located throughout the United States and Canada and store crude oil, refined products and intermediates for PBF Energy in support of its refineries. In ~~connection with~~addition, we generate third-party revenue from certain of our assets, including the ~~Offering, PBF LLC contributed the assets, liabilities and results of operations of certain crude oil terminaling assets~~Knoxville Terminals subsequent to us. The assets consisted of a double loop track with ancillary pumping and unloading equipment (the “DCR Rail Terminal”), and crude unloading lease automatic custody transfer (“LACT”) units (the “Toledo Truck Terminal”). Subsequent to the Offering, we acquired from PBF LLC a heavy crude oil rail unloading facility at the Delaware City Refinery (the “DCR West Rack”), a tank farm and related facilities, which included a propane storage and loading facility (the “Toledo Storage Facility”), an interstate petroleum products pipeline (the “Delaware City Products Pipeline”) and truck loading rack (the “Delaware City Truck Rack”) which are collectively referred to as the “Delaware City Products Pipeline and Truck Rack,” the 189-mile San Joaquin Valley pipeline system which consists of the M55, M1 and M70 crude pipeline systems including pipeline stations with storage capacity and truck unloading capacity (the “Torrance Valley Pipeline”), and the Paulsboro Natural Gas Pipeline. These transactions are collectively referred to as the “Acquisitions from PBF.” Subsequent to the Acquisitions from PBF, the DCR Rail Terminal, the Toledo Truck Terminal, the DCR West Rack, the Toledo Storage Facility, the Delaware City Products Pipeline and Truck Rack, the Torrance Valley Pipeline and the Paulsboro Natural Gas Pipeline are collectively referred to as the “Contributed Assets.”

~~The condensed consolidated financial statements presented~~our acquisition in this Form 10-Q include our consolidated financial results as of and for the period ending September 30, 2017. We have retrospectively adjusted our financial information contained herein to include the historical results of PNGPC prior to the PNGPC Acquisition.April 2018.

Agreements with PBF Energy

Commercial Agreements

We currently derive the majority of our revenue from long-term, fee-based, minimum volume commitment (“MVC”) agreements with PBF Holding, supported by contractual fee escalations for inflation adjustments and certain increases in operating costs. We believe the terms and conditions under these agreements, as well as the Omnibus Agreement (as defined below) and the Services Agreement (as defined below) each with PBF Holding, are generally no less favorable to either party than those that could have been negotiated with unaffiliated parties with respect to similar services.

~~These commercial agreements (as defined in the table below) with PBF Holding include:~~



~~Agreements~~	~~Initiation Date~~	~~Initial Term~~	~~Renewals (a)~~	~~MVC~~	~~Force Majeure~~
~~Transportation and Terminaling~~
~~Delaware City Rail Terminaling Services Agreement~~	~~5/8/2014~~	~~7 years,~~ ~~8 months~~	~~2 x 5~~	~~85,000 barrels per day (“bpd”)~~	~~PBFX or PBF Holding can declare~~
~~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~~

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See the 2017 Form 10-K for a more complete description of our commercial agreements with PBF Holding, including those identified as leases. The following are commercial agreements we entered into with PBF Holding during 2018:



~~Agreements~~	~~Initiation Date~~	~~Initial Term~~	~~Renewals (a)~~	~~MVC~~	~~Force Majeure~~
~~Transportation and Terminaling (continued)~~
~~Toledo Storage Facility Storage and Terminaling Services Agreement- Terminaling Facility~~	~~12/12/2014~~	~~10 years~~	~~2 x 5~~	~~4,400 bpd~~	~~PBFX or PBF Holding can declare~~
~~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~~	~~5/15/2015~~	~~10 years,~~ ~~8 months~~	~~2 x 5~~	~~30,000 bpd~~
~~Delaware City Truck Loading Services Agreement- LPGs~~	~~5/15/2015~~	~~10 years,~~ ~~8 months~~	~~2 x 5~~	~~5,000 bpd~~
~~East Coast Terminals Terminaling Services Agreements~~	~~5/1/2016~~	~~Various (f)~~	~~Evergreen~~	~~15,000 bpd (e)~~
~~East Coast Terminals Tank Lease Agreements~~	~~5/1/2016~~	~~Various (f)~~	~~Evergreen~~	~~350,000 barrels (c)~~
~~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 (c)~~
~~Torrance Valley Pipeline Transportation Services Agreement- Emidio 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 (b)~~	~~8/4/2017~~	~~15 years~~	~~Evergreen~~	~~60,000 dekatherms per day~~
~~Toledo Terminal Services Agreement (g)~~	~~5/1/2016~~	~~1 year~~	~~Evergreen~~	~~N/A~~
~~Storage~~
~~Toledo Storage Facility Storage and Terminaling Services Agreement- Storage Facility~~	~~12/12/2014~~	~~10 years~~	~~2 x 5~~	~~3,849,271 barrels (c)~~	~~PBFX or PBF Holding can declare~~
~~Chalmette Storage Agreement (d)~~	~~See note (d)~~	~~10 years~~	~~2 x 5~~	~~625,000 barrels~~	~~PBFX or PBF Holding can declare~~

~~____________________~~


~~(a)~~	~~PBF Holding has the option to extend the agreements for up to two additional five-year terms, as applicable.~~


~~(b)~~	~~In August 2017, the New Pipeline commenced service. Concurrent with the commencement of operations, a new service agreement was entered into between PNGPC and PRC regarding the New Pipeline.~~


~~(c)~~	Reflects the overall capacity as stipulated by the storage agreement. The storage MVC is subject to effective operating capacity of each tank which can be impacted by routine tank maintenance and other factors.


~~(d)~~	The Chalmette Storage Agreement was entered into on February 15, 2017 but commences at the earlier of November 1, 2017 or the completion of the Chalmette Storage Tank, which is currently expected to be completed in November 2017.


~~(e)~~	The East Coast Terminals terminaling service agreements have no MVCs and are billed based on actual volumes throughput, other than a terminaling services agreement between the East Coast Terminals’ Paulsboro, New Jersey location and PBF Holding with a 15,000 bpd MVC.


~~(f)~~	~~The East Coast Terminals related party agreements include varying term lengths, ranging from one to five years.~~


~~(g)~~	~~Subsequent to the Toledo Terminal Acquisition, the Toledo Terminal was added to the East Coast Terminals Terminaling Service Agreements.~~

Knoxville Terminals Agreement - In connection with the Knoxville Terminals Purchase, we entered into a terminal throughput and storage agreement with PBF Holding (the “Knoxville Terminals Agreement”) wherein we, through the our wholly-owned subsidiary, PLPT, provide PBF Holding with terminaling and storage services at the Knoxville Terminals. The initial term of the Knoxville Terminals Agreement is five years with automatic one-year renewals unless canceled by either party through written notice. Under the Knoxville Terminals Agreement, PBF Holding has a minimum volume commitment for storage and a minimum revenue commitment for throughput. The minimum throughput revenue commitment is $0.9 million for year one, $1.8 million for year two and $2.7 million for year three and thereafter. The minimum storage commitment is equal to the available shell capacity for the dedicated PBF Holding tanks. If PBF Holding does not throughput or store the aggregate amounts equal to the minimum throughput revenue or available shell capacity described above, PBF Holding will be required to pay a shortfall payment equal to the shortfall revenue or capacity. The throughput and storage services fees are subject to increase or decrease effective as of January 1 of each year, beginning on January 1, 2019, by the amount of any change in the Consumer Price Index, provided that the fee may not be adjusted below the initial amount. The storage commitment under the Knoxville Terminals Agreement is considered a lease.

Other Agreements

In addition to the commercial agreements described above, ~~at the closing of the Offering,~~ we have entered into an omnibus agreement with PBF GP, PBF LLC and PBF Holding, which has been amended and restated in connection with certain of the Acquisitions from PBF (as amended, the “Omnibus Agreement”). The Omnibus Agreement addresses the payment of an annual fee for the provision of various general and administrative services and reimbursement of salary and benefit costs for certain PBF Energy employees. ~~The annual fee was increased to $6.9 million per year effective as of January 1, 2017.~~

~~In connection with the Offering,~~Additionally, we have entered into an operation and management services and secondment agreement with PBF Holding and certain of its subsidiaries, ~~pursuant~~which has been amended and restated in connection with certain of the Acquisitions from PBF (as amended, the “Services Agreement”). Pursuant to ~~which~~the Services Agreement, PBF Holding and its subsidiaries ~~provides~~provide us with the personnel necessary for us to perform ~~its~~our obligations under ~~its~~our commercial agreements. We reimburse PBF Holding for the use of such employees and the provision of certain infrastructure-related services to the extent applicable to its operations, including storm water discharge and waste water treatment, steam, potable water, access to certain roads and grounds, sanitary sewer access, electrical power, emergency response, filter press, fuel gas, API solids treatment, fire water and compressed air. On February 28, 2017, we entered into the Fifth Amended and Restated Operation and Management Services and Secondment Agreement (as amended, the “Services Agreement”) in connection with the PNGPC Acquisition resulting in an increase to the annual fee to $6.7 million. The Services Agreement will terminate upon the termination of the Omnibus Agreement, provided that we may terminate any service on 30 days’ notice.

In connection with the Chalmette Storage Agreement, PBFX Op Co and Chalmette Refining entered into the Lease and the Project Management Agreement. The Lease can be extended by PBFX Op Co for two additional ten-year periods.

Factors Affecting the Comparability of Our Financial Results

Our results of operations may not be comparable to our historical results of operations for the reasons described below:

~~Revenues~~Revenue.. Our reported logistics assets revenues are fee-based and a majority are subject to contractual MVCs. These fees are indexed for inflation in accordance with either the ~~FERC~~Federal Energy Regulatory Commission indexing methodology, the U.S. Producer Price Index or the U.S. Consumer Price Index for All Urban Consumers.

Revenues reported by us prior to the ~~acquisitions~~acquisition of ~~TVPC and PNGPC~~Paulsboro Natural Gas Pipeline Company LLC (“PNGPC”) in February 2017 did not include ~~commercial contracts~~revenue under the services agreement associated with the ~~Torrance Valley Pipeline or~~new 24” interstate natural gas pipeline we built to replace the existing PNGPC pipeline servicing PBF Holding’s Paulsboro Refinery (the “Paulsboro Natural Gas ~~Pipeline. Concurrent with commencement of operations of the New Pipeline~~Pipeline”), which commenced in August 2017 (the “Paulsboro Natural Gas Pipeline Services Agreement”).

In addition, the Amended and Restated Rail Agreements, which effectively combine the MVCs associated with our Delaware City rail unloading assets with a ~~new service agreement was entered into between PNGPC~~blended throughput rate and ~~PRC in regards to the New Pipeline.~~a directly billed ancillary fee, were executed effective as of January 1, 2018.

~~Financing~~Financing.. Historically, we have financed our operations through proceeds generated by equity offerings, internally generated cash flows, and borrowings under our ~~five-year $360.0 million revolving credit facility (“~~Revolving Credit ~~Facility”)~~Facility to satisfy capital expenditure requirements. In connection with the purchase of the East Coast Terminals, we borrowed an additional $98.5 million under our Revolving Credit Facility, which was used to repay $98.3 million of our three-year $300.0 million term loan facility (“Term Loan”) in order to release

$98.3 million in marketable securities that had collateralized the Term Loan. In connection with the acquisition of TVPC, we borrowed an additional $76.2 million under our Revolving Credit Facility, which was used to repay $76.2 million of our Term Loan in order to release $76.2 million in marketable securities that had collateralized the Term Loan. The maximum amount of the Revolving Credit Facility was increased from $325.0 million to $360.0 million in May 2016. In connection with the PNGPC Acquisition, through our newly acquired subsidiary, PNGPC, we entered into the $11.6 million Affiliate Note Payable with PRC, a wholly owned subsidiary of PBF Holding. During March 2017, we fully repaid the remaining outstanding balance of ~~the Term Loan.~~

~~Plains Asset Purchase.~~our three-year $300.0 million term loan facility with Wells Fargo Bank, National Association, as administrative agent, and a syndicate of lenders (the “Term Loan”). On ~~April 29, 2016, our wholly-owned subsidiary, PLPT, purchased the East Coast Terminals from an affiliate~~October 6, 2017, we issued $175.0 million in aggregate principal amount of ~~Plains All American Pipeline, L.P.~~6.875% Senior Notes due 2023 (the ~~“Plains Asset Purchase”). The East Coast Terminals have subsequently generated third-party revenues. Prior to the purchase, we did not record third-party revenue,~~“new 2023 Notes,” and along with the ~~exception~~$350.0 million in aggregate principal amount of ~~third-party revenue generated by Delaware City Products Pipeline prior~~6.875% Senior Notes due 2023 issued in May 2015, the “2023 Notes”). During the six months ended June 30, 2018, we had net borrowings of $54.3 million to ~~August 2013. Additionally, our results may not be comparable due to additional affiliate revenue, operating~~fund the Knoxville Terminals Purchase and ~~maintenance expenses~~other capital expenditures and ~~general and administrative expenses associated with the East Coast Terminals.~~working capital requirements.

Toledo Products Terminal Acquisition. On April 17, 2017, our wholly-owned subsidiary, PLPT, acquired the Toledo, ~~Terminal~~Ohio refined products terminal assets (the “Toledo Products Terminal”) from Sunoco Logistics Partners L.P. ~~The transaction is accounted for as a third-party acquisition, and as~~(the “Toledo Products Terminal Acquisition”). As a result, our results may not be comparable due to additional affiliate revenue, operating and maintenance expenses and general and administrative expenses associated with the Toledo Products Terminal.

Chalmette Storage Tank. On November 1, 2017, we, through our wholly-owned subsidiary, PBFX Operating Company LLC (“PBFX Op Co”), began providing storage services to PBF Holding in November 2017 at PBF Holding’s Chalmette Refinery (the “Chalmette Storage Tank”) under a ten-year storage service agreement (the “Chalmette Storage Agreement”).

Knoxville Terminals Purchase. On April 16, 2018, we, through our wholly-owned subsidiary, PLPT, acquired the Knoxville Terminals from Cummins and subsequently entered into the Knoxville Terminals Agreement. As a result, our results may not be comparable due to additional revenue, operating and maintenance expenses and general and administrative expenses associated with the Knoxville Terminals.

Other Factors That Will Significantly Affect Our Results

Supply and Demand for Crude Oil, Refined Products and Natural ~~Gas~~Gas.. We generate revenue by charging fees for receiving, handling, transferring, storing and throughputting crude oil, refined products and natural gas. The majority of our revenues are derived from fee-based commercial agreements with subsidiaries of PBF Energy with initial terms ranging from approximately seven to ten years and including MVCs, which enhance the stability of our cash flows. The volume of crude oil, refined products and natural gas that is throughput or stored depends

substantially on PBF Energy’s refining margins. Refining margins are dependent mostly upon the price of crude oil or other refinery feedstocks and the price of refined products.

Factors driving the prices of petroleum-based commodities include supply and demand in crude oil, gasoline and other refined products. Supply and demand for these products depend on numerous factors outside of our control, including changes in domestic and foreign economies, weather conditions, domestic and foreign political affairs, production levels, logistics constraints, availability of imports, marketing of competitive fuels, crude oil price differentials and government regulation. Please read “Risk Factors” included in “Item 1A.” of our ~~2016~~2017 Form 10-K.

Acquisition and Organic Growth Opportunities. We may acquire additional logistics assets from PBF Energy or third parties. Under our Omnibus Agreement, ~~with PBF GP, PBF LLC and PBF Holding,~~ subject to certain exceptions, we have a right of first offer on certain logistics assets owned by PBF Energy to the extent PBF Energy decides to sell, transfer or otherwise dispose of any of those assets. We also have a right of first offer to acquire additional logistics assets that PBF Energy may construct or acquire in the future. Our commercial agreements provide us with options to purchase certain assets at PBF Holding’s refineries related to our business in the event PBF Energy permanently shuts down ~~the~~ PBF Holding’s refineries. In addition, our commercial agreements provide us with the right to use certain assets at PBF Holding’s refineries in the event of a temporary shutdown. Furthermore, we may pursue strategic asset acquisitions from third parties or organic growth projects to the extent such acquisitions or projects complement our or PBF Energy’s existing asset base or provide attractive potential returns. We believe that we are well-positioned to acquire logistics assets from PBF Energy and third parties should such opportunities arise, and identifying and executing acquisitions and organic growth projects is a key part of our strategy. However, if we do not ~~make~~complete acquisitions or organic growth projects on economically acceptable terms, our future growth will be limited, and the acquisitions or projects we do ~~make~~complete may reduce, rather than increase, our cash available for distribution. These acquisitions and organic growth projects could also affect the comparability of our results from period to period. We expect to fund future growth capital expenditures primarily from a combination of cash-on-hand, borrowings under our

Revolving Credit Facility and the issuance of additional equity or debt securities. To the extent we issue additional units to fund future acquisitions or expansion capital expenditures, the payments of distributions on those additional units may increase the risk that we will be unable to maintain or increase our per unit distribution level.

Third-Party Business. As of ~~September~~June 30, ~~2017,~~2018, PBF Holding accounts for the substantial majority of our revenues and we continue to expect the majority of our revenue for the foreseeable future will be derived from operations supporting PBF Energy’s refineries. We are examining further diversification of our customer base by potentially developing additional third-party throughput volumes in our existing system and continuing to expand our asset portfolio to service third-party customers. Unless we are successful in attracting additional third-party customers, our ability to increase volumes will be dependent on PBF Holding, which has no obligation under our commercial agreements to supply our facilities with additional volumes in excess of its ~~minimum volume commitments.~~MVCs. If we are unable to increase throughput or storage volumes, future growth may be limited.

Noncontrolling ~~Interest~~Interest.. As a result of PBFX Op Co’s acquisition from PBF LLC of 50% of the issued and outstanding limited liability company interests of ~~TVPC~~Torrance Valley Pipeline Company LLC (“TVPC”) (the “TVPC Acquisition”), PBFX Op Co became the managing member of TVPC and fully consolidates TVPC. With respect to the consolidation of TVPC, we record a noncontrolling interest for the remaining 50% economic interest in TVPC held by TVP Holding Company LLC (“TVP Holding”). Noncontrolling interest on the condensed consolidated statements of operations includes the portion of net income or loss attributable to the economic interest in TVPC held by TVP Holding. Noncontrolling interest on the condensed consolidated balance sheets includes the portion of net assets of TVPC attributable to TVP Holding.

How We Evaluate Our Operations

Our management uses a variety of financial and operating metrics to analyze our business and segment performance. These metrics are significant factors in assessing our operating results and profitability and include

but are not limited to volumes, including terminal and pipeline throughput and storage capacity; operating and maintenance expenses; and EBITDA, EBITDA attributable to PBFX and distributable cash flow. We define EBITDA, EBITDA attributable to PBFX and distributable cash flow below.

Volumes. The amount of revenue we generate primarily depends on the volumes of crude oil, refined products and natural gas that we throughput at our terminaling and pipeline operations and our available storage capacity. These volumes are primarily affected by the supply of and demand for crude oil and refined products in the markets served directly or indirectly by our assets. Although PBF Energy has committed to minimum volumes under the commercial agreements described above, our results of operations will be impacted by:

PBF Energy’s utilization of our assets in excess of the MVCs;

our ability to identify and execute accretive acquisitions and organic expansion projects, and capture PBF Energy’s incremental volumes or third-party volumes; and

our ability to increase throughput volumes at our facilities and provide additional ancillary services at those terminals and pipelines.

Operating and Maintenance Expenses. Our management seeks to maximize the profitability of our operations by effectively managing operating and maintenance expenses. These expenses are comprised primarily of labor expenses, outside contractor expenses, utility costs, insurance premiums, repairs and maintenance expenses and related property taxes. These expenses generally remain relatively stable across broad ranges of throughput volumes but can fluctuate from period to period depending on the mix of activities performed during that period and the timing of these expenses. We will seek to manage our maintenance expenditures on our assets by scheduling maintenance over time to avoid significant variability in our maintenance expenditures and to minimize their impact on our cash flow.

EBITDA, EBITDA attributable to PBFX and Distributable Cash Flow. We define 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 of Acquisitions from PBF prior to the effective dates of such transactions. We define distributable cash flow as EBITDA attributable to PBFX 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. EBITDA, EBITDA attributable to PBFX and distributable cash flow are not presentations made in accordance with ~~GAAP.~~U.S. generally accepted accounting principles (“GAAP”).

EBITDA, EBITDA attributable to PBFX and distributable cash flow are non-GAAP 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 and EBITDA attributable to PBFX provides useful information to investors in assessing our financial condition and results of operations. We believe that the presentation of distributable cash flow ~~will provide~~provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance and provides investors with ~~an enhanced~~another perspective of the operating

performance of our assets and the cash our business is generating. EBITDA, EBITDA attributable to PBFX 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, EBITDA attributable to PBFX 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. Additionally, because EBITDA, EBITDA attributable to PBFX and distributable cash flow may be defined differently by other companies in our industry, our definition of such matters may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. EBITDA, EBITDA attributable to PBFX and distributable cash flow are reconciled to net income and net cash provided by operating activities in “—Results of Operations” below.

4845

Results of Operations

A discussion and analysis of the factors contributing to our results of operations is presented below. The financial statements, together with the following information, are intended to provide investors with a reasonable basis for assessing our historical operations, but should not serve as the only criteria for predicting our future performance.

Combined Overview. The following tables summarize our results of operations and financial data for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~2016.~~2017. The following data should be read in conjunction with our Condensed Consolidated Financial Statements and the Notes thereto included in “Item 1. Financial Statements.”


	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016*			2017			2016*			2018			2017			2018			2017
	(In thousands)												(In thousands)
Revenue:
Affiliate	$	62,359		$	43,842		$	176,916		$	118,356		$	63,785		$	58,355		$	124,649		$	114,557
Third-Party	3,135			4,591			11,384			7,285			3,613			3,974			6,788			8,249
Total revenue	65,494			48,433			188,300			125,641			67,398			62,329			131,437			122,806

Costs and expenses:
Operating and maintenance expenses	15,930			12,903			47,203			26,885			19,111			15,504			37,159			31,273
General and administrative expenses	3,534			4,420			12,947			13,896			6,488			6,098			10,779			9,413
Depreciation and amortization	5,610			5,347			16,672			9,543			6,919			5,710			13,414			11,062
Total costs and expenses	25,074			22,670			76,822			50,324			32,518			27,312			61,352			51,748

Income from operations	40,420			25,763			111,478			75,317			34,880			35,017			70,085			71,058

Other expense:
Interest expense, net	(7,416		)	(7,280		)	(22,493		)	(21,298		)	(10,029		)	(7,509		)	(19,614		)	(15,077		)
Amortization of loan fees	(332		)	(416		)	(1,125		)	(1,261		)
Amortization of loan fees and debt premium													(396		)	(377		)	(759		)	(793		)
Net income	32,672			18,067			87,860			52,758			24,455			27,131			49,712			55,188
Less: Net loss attributable to Predecessor	—			(4,428		)	(150		)	(5,085		)	—			—			—			(150		)
Less: Net income attributable to noncontrolling interest	3,799			1,621			11,218			1,621			4,363			3,820			8,385			7,419
Net income attributable to the partners	28,873			20,874			76,792			56,222			20,092			23,311			41,327			47,919
Less: Net income attributable to the IDR holder	2,526			1,125			6,319			2,765			3,415			2,107			6,370			3,793
Net income attributable to PBF Logistics LP unitholders	$	26,347		$	19,749		$	70,473		$	53,457		$	16,677		$	21,204		$	34,957		$	44,126

Other Data:
EBITDA attributable to PBFX	$	40,873		$	31,482		$	112,894		$	85,475		$	36,070		$	35,552		$	72,387		$	72,022
Distributable cash flow	32,169			25,073			91,242			66,558			28,100			30,543			54,346			59,137
Capital expenditures, including acquisitions	15,056			4,603			71,441			106,416			59,568			36,918			63,521			56,385

* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition.

4946

Reconciliation of Non-GAAP Financial Measures

As described in “How We Evaluate Our Operations,” our management uses EBITDA, EBITDA attributable to PBFX and distributable cash flow to analyze our performance. The following table presents a reconciliation of EBITDA, EBITDA attributable to PBFX and distributable cash flow to net income, the most directly comparable GAAP financial measure of operating performance on a historical basis, for the periods indicated.

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016* 2017 2016*
(In thousands)
Net income $ 32,672
$ 18,067
$ 87,860
$ 52,758
Interest expense, net 7,416
7,280
22,493
21,298
Amortization of loan fees 332
416
1,125
1,261
Depreciation and amortization 5,610
5,347
16,672
9,543
EBITDA 46,030
31,110
128,150
84,860
Less: Predecessor EBITDA —
(2,439 ) (40 ) (2,682 )
Less: Noncontrolling interest EBITDA 5,157
2,067
15,296
2,067
EBITDA attributable to PBFX 40,873
31,482
112,894
85,475
Non-cash unit-based compensation expense 807
963
4,515
3,673
Cash interest (8,006 ) (7,280 ) (23,622 ) (21,298 )
Maintenance capital expenditures (1,505 ) (92 ) (2,545 ) (1,292 )
Distributable cash flow $ 32,169
$ 25,073
$ 91,242
$ 66,558

* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition.



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(In thousands)
Net income	$	24,455		$	27,131		$	49,712		$	55,188
Interest expense, net	10,029			7,509			19,614			15,077
Amortization of loan fees and debt premium	396			377			759			793
Depreciation and amortization	6,919			5,710			13,414			11,062
EBITDA	41,799			40,727			83,499			82,120
Less: Predecessor EBITDA	—			—			—			(40		)
Less: Noncontrolling interest EBITDA	5,729			5,175			11,112			10,138
EBITDA attributable to PBFX	36,070			35,552			72,387			72,022
Non-cash unit-based compensation expense	2,663			3,028			3,497			3,708
Cash interest	(10,049		)	(7,866		)	(19,629		)	(15,617		)
Maintenance capital expenditures attributable to PBFX	(584		)	(171		)	(1,909		)	(976		)
Distributable cash flow	$	28,100		$	30,543		$	54,346		$	59,137

The following table presents a reconciliation of EBITDA, EBITDA attributable to PBFX and distributable cash flow to net cash provided by operating activities, the most directly comparable GAAP financial measure of liquidity on a historical basis, for the periods indicated.


	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016*			2017			2016*			2018			2017			2018			2017
	(In thousands)												(In thousands)
Net cash provided by operating activities:	$	30,312		$	25,686		$	120,965		$	68,285		$	23,314		$	36,856		$	67,370		$	90,653
Change in operating assets and liabilities	9,109			(893		)	(10,793		)	(1,050		)	11,119			(610		)	12			(19,902		)
Interest expense, net	7,416			7,280			22,493			21,298			10,029			7,509			19,614			15,077
Non-cash unit-based compensation expense	(807		)	(963		)	(4,515		)	(3,673		)	(2,663		)	(3,028		)	(3,497		)	(3,708		)
EBITDA	46,030			31,110			128,150			84,860			41,799			40,727			83,499			82,120
Less: Predecessor EBITDA	—			(2,439		)	(40		)	(2,682		)	—			—			—			(40		)
Less: Noncontrolling interest EBITDA	5,157			2,067			15,296			2,067			5,729			5,175			11,112			10,138
EBITDA attributable to PBFX	40,873			31,482			112,894			85,475			36,070			35,552			72,387			72,022
Non-cash unit-based compensation expense	807			963			4,515			3,673			2,663			3,028			3,497			3,708
Cash interest	(8,006		)	(7,280		)	(23,622		)	(21,298		)	(10,049		)	(7,866		)	(19,629		)	(15,617		)
Maintenance capital expenditures	(1,505		)	(92		)	(2,545		)	(1,292		)
Maintenance capital expenditures attributable to PBFX													(584		)	(171		)	(1,909		)	(976		)
Distributable cash flow	$	32,169		$	25,073		$	91,242		$	66,558		$	28,100		$	30,543		$	54,346		$	59,137

* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition.

The following table presents a reconciliation of net income attributable to noncontrolling interest and noncontrolling interest EBITDA for informational purposes.


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016*		2017		2016*		2018		2017		2018		2017
	(In thousands)								(In thousands)
Net income attributable to noncontrolling interest	$	3,799	$	1,621	$	11,218	$	1,621	$	4,363	$	3,820	$	8,385	$	7,419
Depreciation and amortization related to noncontrolling interest (*)	1,358		446		4,078		446
Depreciation and amortization related to noncontrolling interest*									1,366		1,355		2,727		2,719
Noncontrolling interest EBITDA	$	5,157	$	2,067	$	15,296	$	2,067	$	5,729	$	5,175	$	11,112	$	10,138

* Represents 50% of depreciation and amortization for TVPC for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~2016.~~2017.

Three Months Ended ~~September~~June 30, ~~2017~~2018 Compared to the Three Months Ended ~~September~~June 30, ~~2016~~2017

Summary. Our net income for the three months ended ~~September~~June 30, ~~2017 increased~~2018 decreased approximately ~~$14.6~~$2.7 million to ~~$32.7~~$24.5 million from ~~$18.1~~$27.1 million for the three months ended ~~September~~June 30, ~~2016.~~2017. The ~~increase~~decrease in net income was primarily due to the following:

an increase in ~~total revenues~~operating and maintenance expenses of approximately ~~$17.1~~$3.6 million, or ~~35.2%~~23.3%, ~~primarily attributable to~~as a ~~new service agreement entered into between PNGPC~~result of increased utilities expenses within our Transportation and ~~PRC upon the commencement of the New Pipeline in August 2017, the Toledo Terminal operations, increased throughput at the East Coast Terminals~~Terminaling segment, higher insurance and

~~commercial agreements with PBF Energy~~ regulatory expenses and expenses related to the ~~Torrance Valley Pipeline entered into in September 2016;~~Knoxville Terminals subsequent to the Knoxville Terminals Purchase;

~~a decrease~~an increase in general and administrative expenses of approximately ~~$0.9~~$0.4 million, or ~~20.0%~~6.4%, as a result of ~~lower~~higher acquisition related costs and higher outside services expenses, partially offset by lower unit-based compensation ~~expense, partially offset by higher fees associated with the Omnibus Agreement;~~

~~partially offset by the following:~~

an increase in operating and maintenance expenses of approximately $3.0 million, or 23.5%, as a result of increased operating and maintenance expense for the Torrance Valley Pipeline and the East Coast Terminals and expenses related to the Toledo Terminal subsequent to our acquisition, partially offset by decreases in outside services and maintenance and materials expenses mainly due to lower throughput at our other assets and timing of maintenance activities;expense;

an increase in depreciation and amortization expenses of approximately ~~$0.3~~$1.2 million, or ~~4.9%~~21.2%, ~~as a result of the additions to property, plant and equipment~~ related to the ~~the Torrance Valley Pipeline~~timing of acquisitions and ~~the Paulsboro Natural Gas Pipeline; and~~new assets being placed in service;

an increase in interest expense, net of approximately ~~$0.1~~$2.5 million, or ~~1.9%~~33.6%, attributable to the interest costs associated with the ~~Affiliate Note Payable.~~new 2023 Notes, partially offset by lower borrowings under our Revolving Credit Facility;

partially offset by the following:

an increase in total revenue of approximately $5.1 million, or 8.1%, primarily attributable to operations of recently acquired or constructed assets and inflation rate adjustments implemented in accordance with certain of our commercial agreements (the “Inflation Rate Increase”), partially offset by decreases in throughput fees resulting from the Amended and Restated Rail Agreements.

EBITDA attributable to PBFX for the three months ended ~~September~~June 30, ~~2017~~2018 increased approximately ~~$9.4~~$0.5 million to ~~$40.9~~$36.1 million from ~~$31.5~~$35.6 million for the three months ended ~~September~~June 30, ~~2016~~2017 due to the factors noted above, excluding the impact of depreciation, ~~and~~ interest and ~~the~~ noncontrolling interest.

~~Nine~~Six Months Ended ~~September~~June 30, ~~2017~~2018 Compared to the ~~Nine~~Six Months Ended ~~September~~June 30, ~~2016~~2017

Summary. Our net income for the ~~nine~~six months ended ~~September~~June 30, ~~2017 increased~~2018 decreased approximately ~~$35.1~~$5.5 million to ~~$87.9~~$49.7 million from ~~$52.8~~$55.2 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2017. The ~~increase~~decrease in net income was primarily due to the following:

an increase in ~~total revenues~~operating and maintenance expenses of approximately ~~$62.7~~$5.9 million, or ~~49.9%~~18.8%, ~~primarily attributable to~~as a ~~new service agreement entered into between PNGPC~~result of increased utilities expenses within our Transportation and ~~PRC upon the commencement of the New Pipeline in August 2017, the Toledo Terminal operations, the East Coast Terminals operations~~ Terminaling segment, higher maintenance

and ~~commercial agreements with PBF Energy~~materials expenses and expenses related to ~~the Torrance Valley Pipeline entered into~~operations of recently acquired or constructed assets, partially offset by a decrease in ~~September 2016;~~outside services costs;

~~a decrease~~an increase in general and administrative expenses of approximately ~~$0.9~~$1.4 million, or ~~6.8%~~14.5%, as a result of ~~lower~~higher acquisition related costs and higher outside services expenses, partially offset by ~~higher~~lower unit-based compensation ~~expense and higher fees associated with the Omnibus Agreement;~~

~~partially offset by the following:~~

an increase in operating and maintenance expenses of approximately $20.3 million, or 75.6%, as a result of increased operating and maintenance expense for the Torrance Valley Pipeline and the East Coast Terminals and expenses related to the Toledo Terminal subsequent to our acquisition, partially offset by decreases in outside services and maintenance and materials expenses mainly due to lower throughput at our other assets and timing of maintenance activities;expense;

an increase in depreciation and amortization expenses of approximately ~~$7.1~~$2.4 million, or ~~74.7%~~21.3%, ~~as a result of the additions to property, plant and equipment~~ related to the ~~East Coast Terminals, the Torrance Valley Pipeline~~timing of acquisitions and ~~the Paulsboro Natural Gas Pipeline; and~~new assets being placed in service;

an increase in interest expense, net of approximately ~~$1.2~~$4.5 million, or ~~5.6%~~30.1%, attributable to the interest costs associated with the ~~Affiliate Note Payable and higher~~new 2023 Notes, partially offset by lower borrowings under our Revolving Credit ~~Facility.~~Facility;

partially offset by the following:

an increase in total revenue of approximately $8.6 million, or 7.0%, primarily attributable to operations of recently acquired or constructed assets and the Inflation Rate Increase, partially offset by decreases in throughput fees resulting from the Amended and Restated Rail Agreements.

EBITDA attributable to PBFX for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 increased approximately ~~$27.4~~$0.4 million to ~~$112.9~~$72.4 million from ~~$85.5~~$72.0 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017 due to the factors noted above, excluding the impact of depreciation, ~~and~~ interest and ~~the~~ noncontrolling interest.

~~Operating Segments~~Segment Information

Our operations are consolidated into operating segments, which are strategic business units that offer different services in various geographical locations. We review operating ~~results~~segments in two reportable segments: (i) Transportation and Terminaling; and (ii) Storage. Decisions concerning the allocation of resources and assessment of operating performance are made based on this segmentation. Management measures the operating performance of each of its reportable segments based on the segment operating income. Segment operating income is defined as net ~~sales~~revenue less operating expenses and depreciation and amortization. General and administrative expenses and interest expenses not included in the Transportation and Terminaling and Storage segments are included in Corporate. Segment reporting is further discussed in Note 11 “Segment Information” in our Notes to Condensed Consolidated Financial Statements included in “Item 1. Financial Statements.”

Transportation and Terminaling Segment

The following table and discussion is an explanation of our results of operations of the Transportation and Terminaling segment for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~2016:~~2017:

Three Months Ended September 30, Nine Months Ended September 30,
2017 2016* 2017 2016*
(In thousands)
Revenue:
Affiliate $ 56,772
$ 38,360
$ 160,065
$ 102,030
Third-Party 3,135
4,591
11,384
7,285
Total revenue 59,907
42,951
171,449
109,315

Costs and expenses:
Operating and maintenance expenses 13,862
10,351
41,669
20,139
Depreciation and amortization 4,989
4,752
14,830
7,713
Total costs and expenses 18,851
15,103
56,499
27,852
Transportation and Terminaling Segment Operating Income $ 41,056
$ 27,848
$ 114,950
$ 81,463

Key Operating Information
Transportation and Terminaling Segment
Terminals
Total throughput (bpd) ⁽¹⁾
196,985
154,466
202,896
158,789
Lease tank capacity (average lease capacity barrels per month) 1,922,453
2,036,599
2,141,027
2,045,556
Pipelines
Total throughput (bpd) ⁽¹⁾
137,262
130,063
134,951
128,434
Lease tank capacity (average lease capacity barrels per month) 1,273,634
1,475,619
1,132,124
1,475,619

* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition.



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
	(In thousands)
Revenue:
Affiliate	$	56,819	$	52,629	$	110,614	$	103,293
Third-Party	3,613		3,974		6,788		8,249
Total revenue	60,432		56,603		117,402		111,542

Costs and expenses:
Operating and maintenance expenses	17,120		13,725		33,015		27,807
Depreciation and amortization	5,994		5,090		11,564		9,841
Total costs and expenses	23,114		18,815		44,579		37,648
Transportation and Terminaling Segment Operating Income	$	37,318	$	37,788	$	72,823	$	73,894

Key Operating Information
Transportation and Terminaling Segment
Terminals
Total throughput (barrels per day) ⁽¹⁾	268,430		223,639		255,973		209,618
Lease tank capacity (average lease capacity barrels per month)	1,589,784		2,374,420		1,869,693		2,250,314
Pipelines
Total throughput (barrels per day) ⁽¹⁾	166,900		121,532		159,868		133,694
Lease tank capacity (average lease capacity barrels per month)	1,574,740		750,597		1,555,930		1,060,197

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

Three Months Ended ~~September~~June 30, ~~2017~~2018 Compared to the Three Months Ended ~~September~~June 30, ~~2016~~2017

~~Revenue~~.Revenue. Revenue increased approximately ~~$17.0~~$3.8 million, or ~~39.5%~~6.8%, to ~~$59.9~~$60.4 million for the three months ended ~~September~~June 30, ~~2017~~2018 compared to ~~$43.0~~$56.6 million for the three months ended ~~September~~June 30, ~~2016.~~2017. The increase in revenue was primarily attributable to ~~the effects~~operations of ~~a new service agreement entered into between PNGPC and PRC upon the commencement of the New Pipeline in August 2017, the Toledo Terminal operation~~recently acquired ~~through the Toledo Terminal Acquisition,~~or constructed assets, increased throughput in excess of MVC levels at ~~the East Coast Terminals and commercial agreements with PBF Energy related to the Torrance Valley Pipeline entered into in September 2016. Prior to the acquisition~~certain of ~~the Torrance Valley Pipeline, those~~our assets ~~were a part of the integrated operations of PBF Energy~~ and the ~~operation of those assets did not generate third-party or inter-entity revenue. Following~~Inflation Rate Increase, partially offset by decreases in throughput fees resulting from the ~~closing of the TVPC Acquisition, revenues were generated from commercial agreements with PBF Energy. Additionally, subsequent to the closing of the Plains Asset Purchase~~Amended and ~~Toledo Terminal Acquisition, we have begun to generate third-party revenue related to the East Coast Terminals as well as incremental affiliate revenue.~~Restated Rail Agreements.

Operating and maintenance expenses. Operating and maintenance expenses increased approximately ~~$3.5~~$3.4 million, or ~~33.9%~~24.7%, to ~~$13.9~~$17.1 million for the three months ended ~~September~~June 30, ~~2017~~2018 compared to ~~$10.4~~$13.7 million for the three months ended ~~September~~June 30, ~~2016.~~2017. The increase in operating and maintenance expenses was primarily attributable to ~~the increased expenses for the Torrance Valley Pipeline and the East Coast Terminals and~~operations of recently acquired or constructed assets, higher utilities expenses related to ~~the Toledo Terminal subsequent to~~increased throughput volumes on our ~~acquisition, partially offset by a decrease in outside services costs mainly due to lower throughput across our other assets.~~pipeline assets and higher insurance and regulatory costs.

Depreciation and amortization. Depreciation and amortization expense increased approximately ~~$0.2~~$0.9 million, or ~~5.0%~~17.8%, to ~~$5.0~~$6.0 million for the three months ended ~~September~~June 30, ~~2017~~2018 compared to ~~$4.8~~$5.1 million for the three months ended ~~September~~June 30, ~~2016.~~2017. The increase in depreciation and amortization expense was primarily attributable to ~~the New Pipeline commencing operations in the three months ended September 30, 2017.~~

the timing of the Toledo Products Terminal Acquisition and the Knoxville Terminals Purchase, as well as new assets being placed in service including the Paulsboro Natural Gas Pipeline.

~~Nine~~Six Months Ended ~~September~~June 30, ~~2017~~2018 Compared to the ~~Nine~~Six Months Ended ~~September~~June 30, ~~2016~~2017

~~Revenue~~.Revenue. Revenue increased approximately ~~$62.1~~$5.9 million, or ~~56.8%~~5.3%, to ~~$171.4~~$117.4 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 compared to ~~$109.3~~$111.5 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2017. The increase in revenue was primarily attributable to the effects of a new service agreement entered into between PNGPC and PRC upon the commencement of the New Pipeline in August 2017, the Toledo Terminal operation acquired through the Toledo Terminal Acquisition, the East Coast Terminals operation acquired in connection with the Plains Asset Purchase and commercial agreements with PBF Energy related to the Torrance Valley Pipeline entered into in September 2016. Prior to the acquisition of the Torrance Valley Pipeline, those assets were a part of the integrated operations of ~~PBF Energy~~recently acquired or constructed assets, increased throughput in excess of MVC levels at certain of our assets and the ~~operation of those assets did not generate third-party or inter-entity revenue. Following~~Inflation Rate Increase, partially offset by decreases in throughput fees resulting from the ~~closing of the TVPC Acquisition, revenues were generated from commercial agreements with PBF Energy. Additionally, subsequent to the closing of the Plains Asset Purchase~~Amended and ~~the Toledo Terminal Acquisition, we have begun to generate third-party revenue related to the East Coast Terminals as well as incremental affiliate revenue.~~Restated Rail Agreements.

Operating and maintenance expenses. Operating and maintenance expenses increased approximately ~~$21.5~~$5.2 million, or ~~106.9%~~18.7%, to ~~$41.7~~$33.0 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 compared to ~~$20.1~~$27.8 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2017. The increase in operating and maintenance expenses was primarily attributable to ~~the increased expenses for the Torrance Valley Pipeline and the East Coast Terminals and~~operations of recently acquired or constructed assets, higher utilities expenses related to ~~the Toledo Terminal subsequent to~~increased throughput volumes on our ~~acquisition,~~pipeline assets, higher insurance and regulatory costs and higher maintenance and materials expenses, partially offset by a decrease in outside services ~~costs mainly due to lower throughput across our other assets.~~costs.

Depreciation and amortization. Depreciation and amortization expense increased approximately ~~$7.1~~$1.7 million, or ~~92.3%~~17.5%, to ~~$14.8~~$11.6 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 compared to ~~$7.7~~$9.8 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2017. The increase in depreciation and amortization expense was primarily attributable to ~~increased depreciation~~the timing of the Toledo Products Terminal Acquisition and ~~amortization expense of $1.7 million associated with~~ the ~~East Coast~~

Knoxville Terminals ~~acquired~~Purchase, as well as new assets being placed in ~~April 2016, $5.5 million associated with the Torrance Valley Pipeline acquired in August 2016 and $0.3 million associated with~~service including the Paulsboro Natural Gas ~~Pipeline, partially offset by decreased depreciation and amortization expense of $0.4 million in aggregate across our other assets.~~Pipeline.

Storage Segment

The following table and discussion is an explanation of our results of operations of the Storage segment for the three and ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~2016:~~2017:


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016		2018		2017		2018		2017
	(In thousands)								(In thousands)
Revenue:
Affiliate	$	5,587	$	5,482	$	16,851	$	16,326	$	6,966	$	5,726	$	14,035	$	11,264
Third-Party	—		—		—		—		—		—		—		—
Total revenue	5,587		5,482		16,851		16,326		6,966		5,726		14,035		11,264

Costs and expenses:
Operating and maintenance expenses	2,068		2,552		5,534		6,746		1,991		1,779		4,144		3,466
Depreciation and amortization	621		595		1,842		1,830		925		620		1,850		1,221
Total costs and expenses	2,689		3,147		7,376		8,576		2,916		2,399		5,994		4,687
Storage Segment Operating Income	$	2,898	$	2,335	$	9,475	$	7,750	$	4,050	$	3,327	$	8,041	$	6,577

Key Operating Information
Storage Segment
Storage capacity reserved (average shell capacity barrels per month) ⁽¹⁾	3,709,693		3,654,916		3,729,789		3,628,037		4,412,673		3,787,736		4,445,714		3,739,838

(1) Storage capacity is based on tanks in service and average shell capacity available during the period.

Three Months Ended ~~September~~June 30, ~~2017~~2018 Compared to the Three Months Ended ~~September~~June 30, ~~2016~~2017

Revenue. Revenue increased approximately ~~$0.1~~$1.2 million, or ~~1.9%~~21.7%, to ~~$5.6~~$7.0 million for the three months ended ~~September~~June 30, ~~2017~~2018 compared to ~~$5.5~~$5.7 million for the three months ended ~~September~~June 30, ~~2016.~~2017. The increase in revenue was primarily attributable to the Chalmette Storage Agreement commencing in November 2017, higher available storage capacity atand the ~~Toledo Storage Facility.~~Inflation Rate Increase.

Operating and maintenance expenses. Operating and maintenance expenses ~~decreased~~increased approximately ~~$0.5~~$0.2 million, or ~~19.0%~~11.9%, to ~~$2.1~~$2.0 million for the three months ended ~~September~~June 30, ~~2017~~2018 compared to ~~$2.6~~$1.8 million for the three months ended ~~September~~June 30, ~~2016.~~2017. The ~~decrease~~increase in operating and maintenance expenses was primarily attributable to ~~lower maintenance activity.~~higher outside services costs, as well as expenses associated with the Chalmette Storage Tank.

Depreciation and amortization. Depreciation and amortization expense ~~remained relatively consistent at~~increased approximately ~~$0.6~~$0.3 million, or 49.2%, to $0.9 million for ~~both~~ the three months ended ~~September~~June 30, ~~2017~~2018 compared to $0.6 million for the three months ended June 30, 2017. The increase in depreciation and ~~2016.~~amortization expense was primarily attributable to the Chalmette Storage Tank commencing service in November 2017.

~~Nine~~Six Months Ended ~~September~~June 30, ~~2017~~2018 Compared to the ~~Nine~~Six Months Ended ~~September~~June 30, ~~2016~~2017

Revenue. Revenue increased approximately ~~$0.5~~$2.8 million, or ~~3.2%~~24.6%, to ~~$16.9~~$14.0 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 compared to ~~$16.3~~$11.3 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2017. The increase in revenue was primarily attributable to the Chalmette Storage Agreement commencing in November 2017, higher available storage capacity atand the ~~Toledo Storage Facility.~~Inflation Rate Increase.

Operating and maintenance expenses. Operating and maintenance expenses ~~decreased~~increased approximately ~~$1.2~~$0.7 million, or ~~18.0%~~19.6%, to ~~$5.5~~$4.1 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 compared to ~~$6.7~~$3.5 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2017. The ~~decrease~~increase in operating and maintenance expenses was primarily attributable to ~~lower~~higher maintenance ~~activity.~~activity and higher outside services costs, as well as expenses associated with the Chalmette Storage Tank.

Depreciation and amortization. Depreciation and amortization expense ~~remained relatively consistent at~~increased approximately ~~$1.8~~$0.6 million, or 51.5%, to $1.9 million for ~~both~~ the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 compared to $1.2 million for the six months ended June 30, 2017. The increase in depreciation and ~~2016.~~amortization expense was primarily attributable to the Chalmette Storage Tank commencing service in November 2017.

Liquidity and Capital Resources

We expect our ongoing sources of liquidity to include cash generated from operations, reimbursement by PBF Energy for certain capital expenditures, borrowings under our A&R Revolving Credit Facility, and issuances of additional debt and equity securities. We believe that cash generated from these sources will be sufficient to meet our short-term working capital requirements, long-term capital expenditure requirements and minimum quarterly cash distributions.

We have paid, and intend to continue to pay, a quarterly distribution of at least $0.30 per unit per quarter, or $1.20 per unit on an annualized basis, which equates to approximately $12.8 million per quarter, or approximately $51.2 million per year, based on the ~~current~~ number of common units and associated IDRs ~~outstanding.~~outstanding as of June 30, 2018. We do not have a legal obligation to pay this distribution.

During the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, we made cash distribution payments as follows (in thousands except per unit data):

Related Earnings Period: Q4 2016
Q1 2017
Q2 2017
Distribution date March 13, 2017
May 31, 2017
August 31, 2017
Record date February 27, 2017
May 16, 2017
August 15, 2017
Per unit $ 0.45
$ 0.46
$ 0.47
Public $ 10,487
$ 10,760
$ 11,014
PBF LLC 9,572
10,178
10,783
Total distribution $ 20,059
$ 20,938
$ 21,797

~~Expiration of Subordination Period~~

On June 1, 2017, each of our 15,886,553 outstanding subordinated units converted into common units and began participating pro rata with the other common units in distributions of available cash. Refer to Notes 6 “Equity” and 8 “Net Income per Unit” in our Notes to Condensed Consolidated Financial Statements included in “Item 1. Financial Statements” for additional information.



Related Earnings Period:	Q4 2017		Q1 2018
Distribution date	March 14, 2018		May 30, 2018
Record date	February 28, 2018		May 15, 2018
Per unit	$	0.4850	$	0.4900
To public common unitholders	$	11,369	$	11,553
To PBF LLC	11,689		12,000
Total distribution	$	23,058	$	23,553

Credit Facilities

The Revolving Credit Facility is available to fund working capital, acquisitions, distributions and capital expenditures and for other general partnership purposes. The maximum ~~amount of~~availability under the Revolving Credit Facility ~~was increased from $325.0 million to~~is $360.0 ~~million in May 2016. The Partnership has the ability to further increase the maximum amount of~~million. Obligations under the Revolving Credit Facility are guaranteed by ~~an additional $240.0 million, to~~its restricted subsidiaries, and are secured by a ~~total facility size~~first priority lien on the Partnership’s assets and those of ~~$600.0 million, subject to receiving increased commitments~~the Partnership’s restricted subsidiaries other than excluded assets and a guaranty of collection from ~~lenders or other financial institutions and satisfaction of certain conditions.~~PBF LLC. See Note 46 “Debt” in our Notes to Condensed Consolidated Financial Statements included in “Item 1. Financial Statements” for further information regarding the Revolving Credit ~~Facility and the Term Loan.~~Facility. We are in compliance with our covenants under the Revolving Credit Facility as of ~~September~~June 30, ~~2017. During March 2017, we fully repaid our Term Loan.~~

2018.

On ~~May 12, 2015,~~July 30, 2018, we ~~completed~~entered into the ~~offering~~A&R Revolving Credit Facility, which increased the maximum commitment available to us from $360.0 million to $500.0 million and extended the maturity date to July 2023. The Partnership has the ability to further increase the maximum availability by an additional $250.0 million, to a total facility size of $750.0 million, subject to receiving increased commitments from lenders or other financial institutions and satisfaction of certain conditions.

During the ~~initial 2023 Notes. We pay interest on~~six months ended June 30, 2018, we utilized our Revolving Credit Facility to fund the ~~initial~~Knoxville Terminals Purchase and other capital expenditures and working capital requirements.

Our 2023 Notes have an aggregate principal amount of $525.0 million with interest payable semi-annually on May 15 and November ~~15 with our first interest payment taking place on November 15, 2015.~~15. The ~~initial~~ 2023 Notes mature on May 15, 2023. ~~On October 6, 2017, we issued $175.0 million in aggregate principal amount of the new 2023 Notes.~~ The ~~new 2023 Notes were issued under the indenture governing the initial 2023 Notes.~~

~~The initial~~ 2023 Notes contain customary terms, events of default and covenants for an issuer of non-investment grade debt securities. These covenants include limitations or restrictions on us and our restricted subsidiaries’ ability to, among other things, make distributions. These covenants are subject to a number of important limitations and exceptions. As of ~~September~~June 30, ~~2017,~~2018, we are in compliance with all covenants under the ~~initial~~ 2023 Notes.

The new 2023 Notes included a registration rights arrangement whereby we agreed, no later than 365 days after the date of the original issuance of the new 2023 Notes, to file a registration statement with the SEC and use commercially reasonable efforts to consummate an offer to exchange the new 2023 Notes for an issue of registered notes with terms substantially identical to the notes. This registration statement was declared effective on April 2, 2018, and the exchange was finalized in May 2018.

Cash Flows

The following table sets forth our cash flows for the periods indicated:

Nine Months Ended September 30,
2017 2016*
(In thousands)
Net cash provided by operating activities $ 120,965
$ 68,285
Net cash (used in) provided by investing activities (31,417 ) 67,861
Net cash used in financing activities (114,349 ) (110,553 )
Net change in cash and cash equivalents $ (24,801 ) $ 25,593

* Prior-period financial information has been retrospectively adjusted for the PNGPC Acquisition.



	Six Months Ended June 30,
	2018			2017
	(In thousands)
Net cash provided by operating activities	$	67,370		$	90,653
Net cash used in investing activities	(63,521		)	(16,361		)
Net cash used in financing activities	(3,832		)	(87,459		)
Net change in cash and cash equivalents	$	17		$	(13,167	)

Cash Flows from Operating Activities

Net cash provided by operating activities ~~increased~~decreased approximately ~~$52.7~~$23.3 million to ~~$121.0~~$67.4 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 compared to ~~$68.3~~$90.7 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2017. The ~~increase~~decrease in net cash provided by operating activities was primarily the result of lower net income and non-cash charges relating to depreciation and amortization, amortization of ~~deferred financing~~loan fees and debt premium and unit-based compensation of approximately ~~$110.2~~$67.4 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017,~~2018, compared to approximately ~~$67.2~~$70.8 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016~~2017, and a ~~net increase~~decrease in the net changes in operating assets and liabilities of approximately ~~$9.7~~$19.9 million primarily driven by the timing of collection of accounts receivables and liability payments.

Cash Flows from Investing Activities

Net cash used in investing activities ~~changed by~~increased approximately ~~$99.3~~$47.2 million to ~~$31.4~~$63.5 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 compared to net cash ~~provided by~~used in investing activities of ~~$67.9~~$16.4 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~2017. The ~~change~~increase in net cash used in investing activities was primarily due to the ~~Toledo Terminal Acquisition for $10.1 million, an increase in capital expenditures~~Knoxville Terminals Purchase of ~~approximately $53.3~~$58.0 million and a decrease in net sales and maturities of marketable securities of ~~approximately $134.3~~$40.0 million, partially offset by the ~~Plains Asset Purchase~~Toledo Products Terminal Acquisition for ~~$98.4~~$10.1 million in April ~~2016.~~2017 and a decrease in capital expenditures of approximately $40.8 million related to the construction of the Paulsboro Natural Gas Pipeline and the Chalmette Storage Tank in 2017.

Cash Flows from Financing Activities

Net cash used in financing activities ~~increased~~decreased approximately ~~$3.8~~$83.6 million to ~~$114.3~~$3.8 million for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 compared to ~~$110.6~~$87.5 million for the ~~nine~~six months ended ~~September~~June 30, ~~2016.~~

2017. The cash outflows for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 were primarily driven by distributions to unitholders of ~~$62.8~~$46.6 million, distributions to TVPC members of $11.3 million and deferred financing costs of $0.3 million, partially offset by net borrowings from our Revolving Credit Facility of $54.3 million. Net cash used in financing activities for the six months ended June 30, 2017 consisted of repayment of our Term Loan of $39.7 million, distributions to unitholders of $41.0 million and distributions to TVPC members of ~~$17.3~~$12.3 million, partially offset by a contribution from ~~the Partnership’s parent~~PBF LLC of $5.5 million related to the 2017 pre-acquisition activities of PNGPC. Net cash used in financing activities for the nine months ended September 30, 2016 consisted of distributions to PBF LLC related to Acquisitions from PBF of $175.0 million, repayment of our Term Loan of $174.5 million and distributions to unitholders of $48.0 million, partially offset by net borrowings under our Revolving Credit Facility of $144.7 million, net proceeds from the issuance of commons units of $138.3 million and a contribution from the Partnership’s parent of $4.1 million related to the pre-acquisition activities of PNGPC.

Capital Expenditures

Our capital requirements have consisted of and are expected to continue to consist of maintenance capital expenditures, expansion capital expenditures and ~~expansion~~regulatory capital expenditures. Maintenance capital expenditures are expenditures (including expenditures for the addition or improvement to, or the replacement of, our capital assets, and for the acquisition of existing, or the construction or development of new, capital assets) made to maintain our long-term operating income or operating capacity. Examples of maintenance capital expenditures are expenditures for the refurbishment and replacement of terminals and to maintain equipment reliability, integrity

and ~~safety and to address environmental laws and regulations.~~safety. Expansion capital expenditures are expenditures incurred for acquisitions or capital improvements that we expect will increase our operating income or operating capacity over the long term. Examples of expansion capital expenditures include the acquisition of equipment and the construction, development or acquisition of unloading equipment or other equipment at our facilities or additional throughput or storage capacity to the extent such capital expenditures are expected to expand our operating capacity or increase our operating income. Regulatory capital expenditures are expenditures made to attain or maintain compliance with regulatory standards. Examples of regulatory capital expenditures are expenditures incurred to address environmental laws or regulations.

Capital expenditures for the ~~nine~~six months ended ~~September~~June 30, ~~2017~~2018 and ~~2016~~2017 were as follows:


	Nine Months Ended September 30,				Six Months Ended June 30,
	2017		2016*		2018		2017
	(In thousands)				(In thousands)
Expansion	$	68,896	$	105,124
Expansion*					$	61,432	$	55,345
Regulatory					29		—
Maintenance	2,545		1,292		2,060		1,040
Total capital expenditures	$	71,441	$	106,416	$	63,521	$	56,385

* ~~Prior-period financial information has been retrospectively adjusted~~Expansion capital expenditures include our acquisitions for the ~~PNGPC Acquisition.~~periods presented.

We currently expect to spend an additional aggregate of between approximately ~~$110.0~~$20.0 million and ~~$120.0~~$24.0 million ~~during 2017~~for the remainder of 2018 for capital expenditures, ~~inclusive~~ of which between approximately $14.0 million and $18.0 million relate to maintenance or regulatory capital expenditures (including capital expenditures related to the ~~Paulsboro Natural Gas Pipeline, the Chalmette Storage Tank and the Toledo Terminal Acquisition,~~Knoxville Terminals). We currently expect to spend an additional aggregate of ~~which~~ between approximately ~~$5.0~~$32.0 million and ~~$10.0~~$37.0 million ~~relate to maintenance capital expenditures.~~in 2018 for projects associated with our recently closed Development Assets Acquisition. We anticipate the forecasted capital expenditures will be funded primarily with cash from operations and through ~~the liquidation of marketable securities during the year.~~

We have sold our U.S. Treasury or other investment grade securities over time to fund our capital expenditures. In March 2017, we fully repaid our Term Loan and, as a result, such securities were no longer used to secure our obligation. We may also rely on external sources including other borrowings under our A&R Revolving Credit Facility ~~and issuances of equity and debt securities to fund any significant future expansion.~~as needed.

Under the Omnibus Agreement, PBF Energy has agreed to reimburse us for any costs up to $20.0 million per event (net of any insurance recoveries) that we incur for repairs required due to the failure of any Contributed Asset to operate in substantially the same manner and condition as such asset was operating prior to the closing of ~~the Offering~~our IPO and the Acquisitions from PBF during the first five years after the closing of ~~the Offering~~our IPO and the Acquisitions from PBF, and any matters related thereto.

On July 16, 2018, we entered into an agreement with Crown Point International, LLC, formerly known as Axeon Specialty Products LLC, to purchase its wholly-owned subsidiary, CPI Operations LLC for total consideration of $107.0 million, which is comprised of an initial payment at closing of $75.0 million with the balance being payable one year after closing. The East Coast Storage Assets Acquisition is expected to close in the fourth quarter of 2018, subject to customary regulatory and other approval.

On July 16, 2018, we entered into contribution agreements with subsidiaries of PBF LLC pursuant to which PBF Energy has agreed to contribute to us certain of its subsidiaries, whose assets consist of the Development Assets. The Development Assets Acquisition closed on July 31, 2018 for total consideration of $31.6 million consisting of 1,494,134 common units of PBFX issued to PBF LLC.

Contractual Obligations

With the exception of the ~~debt activity in connection with the PNGPC Acquisition, repayment of our Term Loan and the issuance~~closing of the ~~new 2023 Notes (and subsequent pay down~~A&R Revolving Credit Facility, repayments made during the first quarter of 2018 on the Revolving Credit ~~Facility),~~Facility and subsequent borrowings under the Revolving Credit Facility to fund the Knoxville Terminals Purchase and other capital expenditures and working capital requirements, there have been no significant changes in our ~~debt~~contractual obligations since those reported in our ~~2016~~2017 Form 10-K. Refer to Note 46 “Debt” and Note 12 “Subsequent Events” in our Notes to Condensed Consolidated Financial Statements

included in “Item 1. Financial Statements” for additional information regarding our debt ~~obligations.~~obligations and subsequent events.

Off-Balance Sheet Arrangements

We have not entered into any transactions, agreements or other contractual arrangements that would result in off-balance sheet liabilities, other than outstanding letters of credit in the amount of approximately ~~$3.6~~$4.0 million and operating leases.

Environmental and Other Matters

Environmental Regulation

Our operations are subject to extensive and frequently changing federal, state and local laws, regulations and ordinances relating to the protection of the environment. Among other things, these laws and regulations govern the emission or discharge of pollutants into or onto the land, air and water, the handling and disposal of solid and hazardous wastes and the remediation of contamination. As with the industry generally, compliance with existing and anticipated environmental laws and regulations increases our overall cost of business, including our capital costs to develop, maintain, operate and upgrade equipment and facilities. While these laws and regulations affect our ~~maintenance~~regulatory capital expenditures and net income, we believe they do not necessarily affect our competitive position, as the operations of our competitors are similarly affected. We believe our facilities are in substantial compliance with applicable environmental laws and regulations. However, these laws and regulations are subject to changes, or to changes in the interpretation of such laws and regulations, by regulatory authorities, and continued and future compliance with such laws and regulations may require us to incur significant expenditures. Additionally, violation of environmental laws, regulations and permits can result in the imposition of significant administrative, civil and criminal penalties, injunctions limiting our operations, investigatory or remedial liabilities or construction bans or delays in the development of additional facilities or equipment. Furthermore, a release of hydrocarbons or hazardous substances into the environment could, to the extent the event is not insured, subject us to substantial expenses, including costs to comply with applicable laws and regulations and to resolve claims by third parties for personal injury or property damage, or by the U.S. federal government or state governments for natural resources damages. These impacts could directly and indirectly affect our business and have an adverse impact on our financial position, results of operations and liquidity. We cannot currently determine the amounts of such future impacts.

Environmental Liabilities

Contamination resulting from spills of crude oil or petroleum products is not unusual within the petroleum terminaling or transportation industries. Historic spills at truck and rail racks, and terminals as a result of past operations have resulted in contamination of the environment, including soils and groundwater.

Pursuant to the contribution agreements entered into in connection with ~~the Offering~~our IPO and the Acquisitions from PBF, PBF Energy has agreed to indemnify us for certain known and unknown environmental liabilities that are based on conditions in existence at our Predecessor’s properties and associated with the ownership or operation of our assets and arising from the conditions that existed prior to the closings of ~~the Offering~~our IPO and the Acquisitions from PBF. In addition, we have agreed to indemnify PBF Energy for certain events and conditions associated with the ownership or operation of our assets that occur after the closings of ~~the Offering~~our IPO and the Acquisitions from PBF, and for environmental liabilities related to our assets to the extent PBF Energy is not required to indemnify us for such liabilities or if the environmental liability is the result of the negligence, willful misconduct or criminal

conduct of PBF Energy or its employees, including those seconded to us. As a result, we may incur the type of expenses described above in the future, which may be substantial.

As of ~~September~~June 30, ~~2017,~~2018, we have recorded a total liability related to environmental remediation costs of approximately ~~$2.1~~$1.9 million related to ~~the Plains Asset Purchase and the TVPC Acquisition.~~existing environmental liabilities. Refer to Note 9 “Commitments and

Contingencies” in our Notes to Condensed Consolidated Financial Statements included in “Item 1. Financial Statements” for additional information.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of loss arising from adverse changes in market rates and prices. Because we do not generally own the crude oil, refined products or natural gas that is distributed through our facilities, and because all of our commercial agreements with PBF Energy require PBF Energy to bear the risk of any material volume loss relating to the services we provide, we have minimal direct exposure to risks associated with fluctuating commodity prices.

We experience modest volume gains and losses, which we sometimes refer to as imbalances, within our assets as a result of variances in tank storage meter readings and volume fluctuations within certain of our terminals. We use a year-to-date weighted-average market price to value our assets and liabilities related to product imbalances. For the three and six months ended ~~September~~June 30, ~~2017,~~2018, the impact from our imbalances was not material to our results. In practice, we expect to settle positive refined product imbalances at the end of each year by selling excess volumes at current market prices. We may be required to purchase refined product volumes in the open market to make up negative imbalances, or settle through cash payments.

Debt that we incur under our A&R Revolving Credit Facility bears interest at a variable rate and exposes us to interest rate risk. At ~~September~~June 30, ~~2017,~~2018, we had ~~$189.2~~$84.0 million outstanding in variable interest ~~debt under this facility.~~debt. A 1.0% change in the interest rate associated with the borrowings outstanding under this facility would result in a ~~$2.9~~$3.6 million change in our interest expense, assuming we were to borrow all ~~$360.0~~$500.0 million available under our A&R Revolving Credit Facility.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures.

~~PBFX maintains~~We maintain a system of disclosure controls and procedures that is designed to provide reasonable assurance that information which is required to be disclosed is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to management in a timely manner. Under the supervision and with the participation of ~~PBFX’s~~our management, including ~~PBFX’s~~our principal executive officer and ~~the~~our principal financial officer, ~~PBFX has~~we have evaluated the effectiveness of our system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of ~~September~~June 30, ~~2017.~~2018. Based on that evaluation, ~~PBFX’s~~our principal executive officer and ~~the~~our principal financial officer have concluded that ~~PBFX’s~~our disclosure controls and procedures are effective as of ~~September~~June 30, ~~2017.~~2018.

Changes in Internal Control Over Financial Reporting

On April 16, 2018, our wholly-owned subsidiary, PLPT, completed the Knoxville Terminals Purchase, which consisted of the Knoxville Terminals. We are in the process of integrating the Knoxville Terminals’ operations, including internal controls over financial reporting. There have been no other changes in ~~PBFX’s~~our internal controls over financial reporting during the three months ended ~~September~~June 30, ~~2017~~2018 that have materially affected, or are reasonably likely to materially affect, ~~its~~our internal controls over financial reporting.

6057

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

Although from time to time we may be involved in litigation and claims arising out of our operations in the normal course of business, we do not believe that we are a party to any litigation that will have a material adverse impact on our financial condition, results of operations or statements of cash flows. We are not aware of any material legal or governmental proceedings against us, or contemplated to be brought against us.

Item 1A. Risk Factors

There have been no significant changes from the risk factors previously disclosed in “Item 1A. Risk Factors” of our ~~2016~~2017 Form 10-K.

6158

Item 6. Exhibits

The exhibits listed in the accompanying Exhibit Index are filed or incorporated by reference as part of this report and such Exhibit Index is incorporated herein by reference.

EXHIBIT INDEX



Exhibit Number		Description
10.1*2.1		~~Firm Transportation Service~~Purchase Agreement dated as of ~~August 3, 2017,~~April 16, 2018 by and between ~~Paulsboro Natural Gas Pipeline Company~~PBF Logistics Products Terminals LLC and ~~Paulsboro Refining Company LLC.~~Cummins Terminals, Inc. (incorporated by reference herein to Exhibit 2.1 to the Current Report on Form 8-K (File No. 001-36446) filed on April 20, 2018).
31.1*		Certification of Thomas J. Nimbley, Chief Executive Officer of PBF Logistics LP pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification of Erik Young, Chief Financial Officer of PBF Logistics LP pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1/*		Certification of Thomas J. Nimbley, Chief Executive Officer of PBF Logistics LP pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2/*		Certification of Erik Young, Chief Financial Officer of PBF Logistics LP pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
99.1*		Supplemental Financial Information of Torrance Valley Pipeline Company LLC.
101.INS		XBRL Instance Document.
101.SCH		XBRL Taxonomy Extension Schema Document.
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB		XBRL Taxonomy Extension Label Linkbase Document.
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document.

——————

* Filed herewith.

** Furnished, not filed.

6259

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



			PBF Logistics LP
		By:	PBF Logistics GP LLC, its general partner

Date:	~~November~~August 2, ~~2017~~2018		By:	/s/ Erik Young
				Erik Young Senior Vice President, Chief Financial Officer and Director (Duly Authorized Officer and Principal Financial Officer)

6360

~~EXHIBIT INDEX~~



~~Exhibit Number~~		~~Description~~
10.1*		~~Firm Transportation Service Agreement dated as of August 3, 2017, by and between Paulsboro Natural Gas Pipeline Company LLC and Paulsboro Refining Company LLC.~~
31.1*		~~Certification of Thomas J. Nimbley, Chief Executive Officer of PBF Logistics LP pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.~~
31.2*		~~Certification of Erik Young, Chief Financial Officer of PBF Logistics LP pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.~~
32.1/*		~~Certification of Thomas J. Nimbley, Chief Executive Officer of PBF Logistics LP pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.~~
32.2/*		~~Certification of Erik Young, Chief Financial Officer of PBF Logistics LP pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.~~
~~101.INS~~		~~XBRL Instance Document.~~
~~101.SCH~~		~~XBRL Taxonomy Extension Schema Document.~~
~~101.CAL~~		~~XBRL Taxonomy Extension Calculation Linkbase Document.~~
~~101.DEF~~		~~XBRL Taxonomy Extension Definition Linkbase Document.~~
~~101.LAB~~		~~XBRL Taxonomy Extension Label Linkbase Document.~~
~~101.PRE~~		~~XBRL Taxonomy Extension Presentation Linkbase Document.~~

~~——————~~

* Filed herewith.

** Furnished, not filed.



PART I - FINANCIAL INFORMATION	5

Item 1. Financial Statements (Unaudited)	5
Condensed Consolidated Balance Sheets as of ~~September~~June 30, ~~2017~~2018 and December 31, ~~2016~~2017	5
Condensed Consolidated Statements of Operations for the Three and ~~Nine~~Six Months Ended ~~September~~June 30, ~~2017~~2018 and ~~2016~~2017	6
Condensed Consolidated Statements of Cash Flows for the ~~Nine~~Six Months Ended ~~September~~June 30, ~~2017~~2018 and ~~2016~~2017	7
Notes to Condensed Consolidated Financial Statements	8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	4139

Item 3. Quantitative and Qualitative Disclosures About Market Risk	6057

Item 4. Controls and Procedures	6057

PART II - OTHER INFORMATION	6158

Item 1. Legal Proceedings	6158

Item 1A. Risk Factors	6158

Item 6. Exhibits	6259

Signatures	6360



	December 31, 2016
	PBF Logistics LP			PNGPC		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	64,221		$	—	$	64,221
Marketable securities - current	40,024			—		40,024
Accounts receivable - affiliates	37,863			—		37,863
Accounts receivable	4,294			—		4,294
Prepaid expenses and other current assets	1,657			—		1,657
Total current assets	148,059			—		148,059
Property, plant and equipment, net	600,071			8,731		608,802
Total assets	$	748,130		$	8,731	$	756,861
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable - affiliates	$	7,631		$	—	$	7,631
Accounts payable and accrued liabilities	18,371			2,500		20,871
Current portion of long-term debt	39,664			—		39,664
Deferred revenue	952			—		952
Total current liabilities	66,618			2,500		69,118
Long-term debt	532,011			—		532,011
Other long-term liabilities	3,161			—		3,161
Total liabilities	601,790			2,500		604,290

Commitments and contingencies

Equity:
Net investment - Predecessor	—			6,231		6,231
Common unitholders⁽¹⁾	241,275			—		241,275
Subordinated unitholder - PBF LLC	(276,083		)	—		(276,083		)
IDR holder - PBF LLC	1,266			—		1,266
Total PBF Logistics LP equity	(33,542		)	6,231		(27,311		)
Noncontrolling interest	179,882			—		179,882
Total equity	146,340			6,231		152,571
Total liabilities and equity	$	748,130		$	8,731	$	756,861



	Three Months Ended September 30, 2016
	PBF Logistics LP			PNGPC			Consolidated Results
Revenue:
Affiliate	$	43,842		$	—		$	43,842
Third-party	4,591			—			4,591
Total revenue	48,433			—			48,433

Costs and expenses:
Operating and maintenance expenses	12,814			89			12,903
General and administrative expenses	4,419			1			4,420
Depreciation and amortization	5,140			207			5,347
Total costs and expenses	22,373			297			22,670

Income (loss) from operations	26,060			(297		)	25,763

Other expense:
Interest expense, net	(7,280		)	—			(7,280		)
Amortization of loan fees	(416		)	—			(416		)
Net income (loss)	18,364			(297		)	18,067
Less: Net loss attributable to Predecessor	(4,131		)	(297		)	(4,428		)
Less: Net income attributable to noncontrolling interest	1,621			—			1,621
Net income attributable to the partners	20,874			—			20,874
Less: Net income attributable to the IDR holder	1,125			—			1,125
Net income attributable to PBF Logistics LP unitholders	$	19,749		$	—		$	19,749



	September 30, 2017			December 31, 2016
6.875% Senior Notes due 2023 (a)	$	350,000		$	350,000
Term Loan	—			39,664
Revolving Credit Facility (b)	189,200			189,200
Total debt outstanding	539,200			578,864
Unamortized debt issuance costs	(6,064		)	(7,189		)
Net carrying value of debt	533,136			571,675
Less: Current maturities (c)	—			39,664
Long-term debt	$	533,136		$	532,011



	Three Months Ended September 30, 2017
	Limited Partner Common Units		Limited Partner Subordinated Units - PBF LLC		IDRs - PBF LLC		Total
Net income attributable to the partners:
Distributions declared	$	20,417	$	—	$	2,526	$	22,943
Earnings less distributions	5,930		—		—		5,930
Net income attributable to the partners	$	26,347	$	—	$	2,526	$	28,873

Weighted-average units outstanding - basic ⁽¹⁾	42,127,288		—
Weighted-average units outstanding - diluted ⁽¹⁾	42,161,008		—

Net income per limited partner unit - basic ⁽²⁾	$	0.63	$	—
Net income per limited partner unit - diluted ⁽²⁾	$	0.63	$	—



	Three Months Ended September 30, 2016*
	Transportation and Terminaling		Storage		Corporate			Consolidated Total
Total revenue	$	42,951	$	5,482	$	—		$	48,433
Depreciation and amortization expense	4,752		595		—			5,347
Income (loss) from operations	27,848		2,335		(4,420		)	25,763
Interest expense, net and amortization of loan fees	—		—		7,696			7,696
Capital expenditures	4,511		92		—			4,603



	Nine Months Ended September 30, 2016*
	Transportation and Terminaling		Storage		Corporate			Consolidated Total
Total revenue	$	109,315	$	16,326	$	—		$	125,641
Depreciation and amortization expense	7,713		1,830		—			9,543
Income (loss) from operations	81,463		7,750		(13,896		)	75,317
Interest expense, net and amortization of loan fees	—		—		22,559			22,559
Capital expenditures, including the Plains Asset Purchase	105,124		1,292		—			106,416



	Balance at September 30, 2017
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total assets	$	664,251	$	70,306	$	19,920	$	754,477



	September 30, 2017
	Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Combining and Consolidating Adjustments			Total
ASSETS
Current assets:
Cash and cash equivalents	$	19,014		$	20,406	$	—	$	—		$	39,420
Accounts receivable - affiliates	1			36,044		—		—			36,045
Accounts receivable	—			1,106		—		—			1,106
Prepaid expenses and other current assets	905			1,178		—		—			2,083
Due from related parties	33,328			339,093		—		(372,421		)	—
Total current assets	53,248			397,827		—		(372,421		)	78,654

Property, plant and equipment, net	—			675,793		—		—			675,793
Other non-current assets	—			30		—		—			30
Investment in subsidiaries	818,481			—		—		(818,481		)	—
Total assets	$	871,729		$	1,073,650	$	—	$	(1,190,902	)	$	754,477

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable - affiliates	$	3,062		$	16,876	$	—	$	—		$	19,938
Accounts payable and accrued liabilities	12,365			17,552		—		—			29,917
Affiliate note payable	—			11,600		—		—			11,600
Deferred revenue	—			991		—		—			991
Due to related parties	339,093			33,328		—		(372,421		)	—
Total current liabilities	354,520			80,347		—		(372,421		)	62,446

Long-term debt	533,136			—		—		—			533,136
Other long-term liabilities	—			2,070		—		—			2,070
Total liabilities	887,656			82,417		—		(372,421		)	597,652

Commitments and contingencies

Equity:
Net Investment - Predecessor	—			818,481		—		(818,481		)	—
Common unitholders ⁽¹⁾	(18,453		)	—		—		—			(18,453		)
IDR holder - PBF LLC	2,526			—		—		—			2,526
Total PBF Logistics LP equity	(15,927		)	818,481		—		(818,481		)	(15,927		)
Noncontrolling interest	—			172,752		—		—			172,752
Total equity	(15,927		)	991,233		—		(818,481		)	156,825
Total liabilities and equity	$	871,729		$	1,073,650	$	—	$	(1,190,902	)	$	754,477