10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

 

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

For the quarterly period ended: September 30, 2021

or

☐ 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)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Units Representing Limited Partner Interests	PBFX	New York Stock Exchange

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 ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☑ No ☐

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	Accelerated filer	Non-accelerated filer	Smaller reporting company	Emerging growth company
☐	☑	☐	☐	☐

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 ☐ No ☑

As of October 22, 2021, there were 62,517,137 common units outstanding.

PBF LOGISTICS LP

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION	6
Item 1. Financial Statements (Unaudited)	6
Condensed Consolidated Balance Sheets as of September 30, 2021 and December 31, 2020	6
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2021 and 2020	7
Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2021 and 2020	8
Notes to Condensed Consolidated Financial Statements	10
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3. Quantitative and Qualitative Disclosures About Market Risk	45
Item 4. Controls and Procedures	45
PART II - OTHER INFORMATION	46
Item 1. Legal Proceedings	46
Item 1A. Risk Factors	47
Item 6. Exhibits	47
Signatures	48

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 30, 2021, owned 99.2% 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 owned 29,953,631 PBFX common units constituting an aggregate of 47.9% limited partner interest in PBFX, with the remaining 52.1% limited partner interest owned by public unitholders as of September 30, 2021.

Unless the context otherwise requires, references in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 (this “Form 10-Q”) to “Predecessor,” and “we,” “our,” “us,” or like terms, when used in the context of periods prior to 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 intermediates transportation, terminaling, storage and processing assets previously operated and owned by PBF Holding’s subsidiaries and PBF Holding’s previously held subsidiaries. As of September 30, 2021, PBF Holding, together with its subsidiaries, owns and operates six oil refineries (two of which are operated as a single unit) 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.

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References in this Form 10-Q to “PBF Logistics LP,” “PBFX,” the “Partnership,” “we,” “our,” or “us,” or like terms used in the context of periods on or after 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; 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 on 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” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” elsewhere in this Form 10-Q, in our Annual Report on Form 10-K for the year ended December 31, 2020 (our “2020 Form 10-K”) 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:

•changes in general economic conditions, including market and macro-economic disruptions resulting from pandemics, including the coronavirus disease 2019 (“COVID-19”) pandemic and the Delta and other variants thereof, as well as related governmental and consumer responses thereto;

•our ability to make, complete and integrate acquisitions from affiliates or third parties, and to realize the benefits from such acquisitions;

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

•competitive conditions in our industry;

•political pressure and influence of environmental groups and other stakeholders on decisions and policies related to the refining, processing and storing of crude oil and refined petroleum products;

•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 revenue subjects us to the business risks of PBF Energy, which include 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 PBF Energy’s facilities, particularly associated with PBF Energy’s Delaware City, Toledo and Torrance refineries, and any adverse developments at any of these facilities could have a material adverse effect on us;

4

•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 the processing of crude oil and the receiving, handling, storage and transferring of crude oil, refined products, natural gas and intermediates;

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

•the threat of cyber-attacks;

•our and PBF Energy’s increased dependence on technology;

•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 rail or in response to the potential impacts of climate change;

•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 various 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;

•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 qualifying income requirements and our status as a partnership for U.S. federal income tax purposes, as well as 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 U.S., 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.

5

PART 1 - FINANCIAL INFORMATION

Item 1. Financial Statements

PBF LOGISTICS LP

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in thousands, except unit data)

	September 30, 2021		December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	28,647	$	36,284
Accounts receivable - affiliates	63,244		53,220
Accounts receivable	6,009		11,382
Prepaids and other current assets	4,383		2,590
Total current assets	102,283		103,476
Property, plant and equipment, net	798,832		820,174
Goodwill	6,332		6,332
Other non-current assets	3,132		3,570
Total assets	$	910,579	$	933,552
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable - affiliates	$	3,962	$	4,940
Accounts payable	3,887		4,602
Accrued liabilities	26,311		32,224
Deferred revenue	2,741		2,117
Total current liabilities	36,901		43,883
Long-term debt	647,124		720,845
Other long-term liabilities	1,377		1,607
Total liabilities	685,402		766,335
Commitments and contingencies (Note 9)
Equity:
Common unitholders (62,517,137 and 62,364,838 units issued and outstanding, as of September 30, 2021 and December 31, 2020, respectively)	225,177		167,217
Total equity	225,177		167,217
Total liabilities and equity	$	910,579	$	933,552

See Notes to Condensed Consolidated Financial Statements.

6

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,
	2021		2020		2021		2020
Revenue:
Affiliate	$	75,464	$	70,716	$	226,504	$	218,681
Third-party	13,389		18,294		39,692		52,487
Total revenue	88,853		89,010		266,196		271,168
Costs and expenses:
Operating and maintenance expenses	27,265		22,730		77,760		75,385
General and administrative expenses	3,902		4,112		14,592		12,798
Depreciation and amortization	9,787		14,305		28,468		36,821
Impairment expense	—		7,000		—		7,000
Change in contingent consideration	761		(14,765)		2,565		(14,235)
Total costs and expenses	41,715		33,382		123,385		117,769
Income from operations	47,138		55,628		142,811		153,399
Other expense:
Interest expense, net	(10,027)		(10,544)		(30,526)		(33,929)
Amortization of loan fees and debt premium	(423)		(328)		(1,278)		(1,309)
Accretion on discounted liabilities	(6)		(594)		(18)		(1,726)
Net income attributable to PBF Logistics LP unitholders	$	36,682	$	44,162	$	110,989	$	116,435
Net income per limited partner unit:
Common units - basic	$	0.58	$	0.71	$	1.77	$	1.87
Common units - diluted	0.58		0.71		1.76		1.87
Weighted-average limited partner units outstanding:
Common units - basic	62,887,914		62,519,105		62,820,193		62,424,217
Common units - diluted	62,997,487		62,529,489		62,934,116		62,429,475

See Notes to Condensed Consolidated Financial Statements.

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PBF LOGISTICS LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in thousands)

	Nine Months Ended September 30,
	2021		2020
Cash flows from operating activities:
Net income	$	110,989	$	116,435
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	28,468		36,821
Impairment expense	—		7,000
Amortization of loan fees and debt premium	1,278		1,309
Accretion on discounted liabilities	18		1,726
Unit-based compensation expense	4,658		3,242
Change in contingent consideration	2,565		(14,235)
Changes in operating assets and liabilities:
Accounts receivable - affiliates	(10,024)		(7,846)
Accounts receivable	5,373		(2,059)
Prepaids and other current assets	(1,793)		(565)
Accounts payable - affiliates	(978)		115
Accounts payable	(639)		(5,674)
Accrued liabilities	3,382		7,748
Deferred revenue	624		2,314
Other assets and liabilities	(217)		(4,902)
Net cash provided by operating activities	143,704		141,429
Cash flows from investing activities:
Expenditures for property, plant and equipment	(6,892)		(9,635)
Net cash used in investing activities	$	(6,892)	$	(9,635)

See Notes to Condensed Consolidated Financial Statements.

8

PBF LOGISTICS LP

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(unaudited, in thousands)

	Nine Months Ended September 30,
	2021		2020
Cash flows from financing activities:
Distributions to unitholders	$	(56,216)	$	(69,718)
Proceeds from revolving credit facility	—		100,000
Repayment of revolving credit facility	(75,000)		(170,000)
Payment of contingent consideration	(12,176)		—
Deferred financing costs and other	(1,057)		809
Net cash used in financing activities	(144,449)		(138,909)
Net change in cash and cash equivalents	(7,637)		(7,115)
Cash and cash equivalents, beginning of period	36,284		34,966
Cash and cash equivalents, end of period	$	28,647	$	27,851
Supplemental disclosure of non-cash investing and financing activities:
Accrued and unpaid capital expenditures	$	504	$	843
Contribution of net assets from PBF LLC	316		—

See Notes to Condensed Consolidated Financial Statements.

9

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

1. DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION

PBF Logistics LP (“PBFX” or the “Partnership”) is a Delaware master 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 30, 2021, owned 99.2% 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 owned 29,953,631 PBFX common units constituting an aggregate of 47.9% limited partner interest in PBFX, with the remaining 52.1% limited partner interest owned by public unitholders as of September 30, 2021.

PBFX engages in the processing of crude oil and the receiving, handling, storage and transferring of crude oil, refined products, natural gas and intermediates. The Partnership generally 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, and, as a result, the Partnership continues to generate a substantial majority of its revenue from transactions with PBF Holding. Additionally, certain of PBFX’s assets generate revenue from third-party transactions.

Principles of Combination and Consolidation and Basis of Presentation

In connection with, and subsequent to, PBFX’s initial public offering (“IPO”), the Partnership has acquired certain assets from PBF LLC (collectively referred to as the “Contributed Assets”). Such acquisitions completed subsequent to the IPO were made through a series of dropdown transactions with PBF LLC (collectively referred to as the “Acquisitions from 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. The accompanying condensed consolidated financial statements and related notes present solely the consolidated financial position and consolidated financial results of PBFX. Refer to the Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”) for additional information regarding the Acquisitions from PBF and the agreements that were entered into or amended with related parties in connection with these acquisitions.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, these unaudited condensed consolidated financial statements 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, results of operations and cash flows of PBFX for the periods presented. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the full year.

The Predecessor generally did not operate its respective assets for the purpose of generating revenue independent of other PBF Energy businesses prior to the IPO or the effective dates of the Acquisitions from PBF. All intercompany accounts and transactions have been eliminated.

10

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

Recently Issued Accounting Pronouncements

In March 2020, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying GAAP to contracts, hedging relationships and other transactions affected by the expected market transition from London Interbank Offering Rate (“LIBOR”) and other interbank rates if certain criteria are met. The amendments in ASU 2020-04 are effective for all entities at any time beginning on March 12, 2020 through December 31, 2022 and may be applied from the beginning of an interim period that includes the issuance date of ASU 2020-04. The Partnership does not expect that the adoption of this guidance will have a material impact on its condensed consolidated financial statements and related disclosures.

2. REVENUE

Revenue Recognition

In accordance with FASB Accounting Standards Codification Topic 606 “Revenue from Contracts with Customers,” revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration to which the Partnership expects to be entitled in exchange for those goods or services.

As disclosed in Note 11 “Segment Information” of the Notes to Condensed Consolidated Financial Statements, the Partnership’s business consists of two reportable segments: (i) Transportation and Terminaling and (ii) Storage.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Transportation and Terminaling Segment
Terminaling	$	37,628	$	35,468	$	114,849	$	108,196
Pipeline	20,980		19,974		62,667		60,732
Other	11,110		11,550		34,387		35,016
Total	69,718		66,992		211,903		203,944
Storage Segment
Storage	14,550		13,815		42,443		41,366
Other	4,585		8,203		11,850		25,858
Total	19,135		22,018		54,293		67,224
Total Revenue	$	88,853	$	89,010	$	266,196	$	271,168

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

11

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

Minimum Volume Commitments

Transportation and Terminaling Segment

The Partnership’s Transportation and Terminaling segment consists of product terminals, pipelines, crude unloading facilities and other facilities capable of transporting and handling crude oil, refined products and natural gas. Certain of the affiliate and third-party Transportation and Terminaling 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 an amount equal to the difference in actual volumes transported and/or throughput and the minimum volumes required under the agreement multiplied by the applicable contractual rate (each a “deficiency payment”). Deficiency payments are initially recorded as deferred revenue on 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 deficiency payment amounts as a credit against volumes throughput in excess of its MVC, as applicable, during subsequent quarters under the terms of the applicable agreement. The Partnership recognizes operating revenue for the deficiency payments when credits are used for volumes transported in excess of MVCs or at the end of the contractual period. Unused credits determined to have a remote chance of being utilized by customers in the future are recognized as operating revenue in the period when that determination is made. The use or recognition of the credits is recorded as a reduction to deferred revenue.

Storage Segment

The Partnership earns storage revenue under crude oil and refined products storage contracts. In addition, the Partnership earns storage revenue under its processing agreement at its East Coast storage facility. Certain of these affiliate and third-party contracts contain capacity reservation agreements, under which 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.

MVC Payments to be Received

As of September 30, 2021, MVC payments to be received, based on future performance obligations of the Partnership, related to noncancellable commercial terminaling, pipeline and storage agreements were as follows:

Remainder of 2021	$	30,021
2022	92,567
2023	89,204
2024	87,175
2025	86,937
Thereafter	—
Total MVC payments to be received (1)(2)	$	385,904

(1) All fixed consideration from contracts with customers is included in the amounts presented above. Variable consideration that is constrained or not required to be estimated is excluded.

(2) Arrangements deemed leases are excluded from this table.

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PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

Leases

Lessor Disclosures

The Partnership has leased certain of its assets under lease agreements with varying terms up to fifteen years, including leases of storage, terminaling, pipeline and processing assets. Certain of these leases include options to extend or renew the lease for one or more years. These options are included in the lease term when it is reasonably certain that the option will be exercised. The Partnership’s lease agreements generally do not provide an option for the lessee to purchase the leased equipment at the end of the lease term. However, in connection with the affiliate lease agreement for the interstate natural gas pipeline at PBF Holding’s Paulsboro Refinery (the “Paulsboro Natural Gas Pipeline”), the Partnership granted a right of first refusal in favor of PBF LLC such that the Partnership would be required to give PBF Holding the first opportunity to purchase the Paulsboro Natural Gas Pipeline at market value prior to selling to an unrelated third party.

At inception, the Partnership determines if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. As of September 30, 2021, all of the Partnership’s leases have been determined to be operating leases. Some of the Partnership’s lease arrangements contain lease components (e.g., MVCs) and non-lease components (e.g., maintenance, labor charges, etc.). The Partnership accounts for the lease and non-lease components as a single lease component for every asset class.

Certain of the Partnership’s lease agreements include MVCs that are adjusted periodically based on a specified index or rate. The leases are initially measured using the projected payments adjusted for the index or rate in effect at the commencement date. The Partnership’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Partnership expects to derive significant future benefits from its leased assets following the end of the lease term, as the remaining useful life would be sufficient to allow the Partnership to enter into new leases for such assets.

In the normal course of business, the Partnership enters into contracts with PBF Holding and its refineries whereby PBF Holding and its refineries lease certain of the Partnership’s storage, terminaling and pipeline assets. The Partnership believes the terms and conditions under these leases are generally no less favorable to either party than those that could have been negotiated with unaffiliated parties with respect to similar services. The terms of these affiliate leases range from one to fifteen years. Leases with affiliates represent approximately 96% of the undiscounted contractual future rental income from the Partnership’s leased assets.

The table below quantifies lease revenue for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Affiliate	$	38,305	$	36,212	$	112,275	$	112,600
Third-party	9,508		13,449		26,303		40,173
Total lease revenue	$	47,813	$	49,661	$	138,578	$	152,773

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PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

Undiscounted Cash Flows

The table below presents the fixed component of the undiscounted cash flows to be received for each of the periods presented for the Partnership’s operating leases with customers as of September 30, 2021:

Remainder of 2021	$	36,059
2022	134,791
2023	133,090
2024	131,874
2025	105,186
Thereafter	128,339
Total undiscounted cash flows to be received	$	669,339

Assets Under Lease

The Partnership’s assets that are subject to lease are included in “Property, plant and equipment, net” within the Partnership’s condensed consolidated balance sheets. The table below quantifies, by category within property, plant and equipment, the assets that are subject to lease as of September 30, 2021 and December 31, 2020:

	September 30, 2021		December 31, 2020
Land	$	98,337	$	98,337
Pipelines	321,998		321,254
Terminals and equipment	83,387		83,387
Storage facilities and processing units	182,819		182,600
	686,541		685,578
Accumulated depreciation	(127,853)		(109,153)
Net assets subject to lease	$	558,688	$	576,425

Deferred Revenue

The Partnership records deferred revenue when cash payments are received or due in advance of performance, including amounts which are refundable. Deferred revenue was $2,741 and $2,117 as of September 30, 2021 and December 31, 2020, respectively. The increase in the deferred revenue balance as of September 30, 2021 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 the 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.

14

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

3. CURRENT EXPECTED CREDIT LOSSES

Credit Losses

The Partnership has exposure to credit losses through its collection of fees charged to customers for terminaling, pipeline, storage and processing services. The Partnership evaluates creditworthiness on an individual customer basis. The Partnership utilizes a financial review model for purposes of evaluating creditworthiness, which is based on information from financial statements and credit reports. The financial review model enables the Partnership to assess the customer’s risk profile and determine credit limits on the basis of their financial strength, including but not limited to, their liquidity, leverage, debt serviceability, longevity and how they pay their bills. The Partnership may require security in the form of letters of credit or cash payments in advance of product and services delivery for certain customers that are deemed higher risk. Additionally, the Partnership may hold customers’ product in storage at its facilities as collateral and/or deny access to its facilities, as allowable under commercial law or its contractual agreements, should payment not be received.

The Partnership reviews each customer’s credit risk profile at least annually, or more frequently if warranted. Following the widespread market disruption that has resulted from the coronavirus disease 2019 (“COVID-19”) pandemic and related governmental and consumer responses, the Partnership has been performing ongoing credit reviews of its customers including monitoring for any negative credit events such as customer bankruptcy or insolvency events. Based on its credit assessments, the Partnership may adjust payment terms or limit available trade credit for customers, and customers within certain industries, which are deemed to be at a higher risk.

The Partnership performs a quarterly allowance for doubtful accounts analysis to assess whether an allowance needs to be recorded for any outstanding trade receivables. In estimating credit losses, management reviews accounts that are past due, have known disputes or have experienced any negative credit events that may result in future collectability issues. There was no allowance for doubtful accounts recorded as of September 30, 2021 or December 31, 2020.

4. PROPERTY, PLANT AND EQUIPMENT, NET

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

	September 30, 2021		December 31, 2020
Land	$	115,957	$	115,957
Pipelines	346,072		345,328
Terminals and equipment	324,908		319,861
Storage facilities and processing units	202,007		200,662
Construction in progress	2,697		3,761
	991,641		985,569
Accumulated depreciation	(192,809)		(165,395)
Property, plant and equipment, net	$	798,832	$	820,174

Depreciation expense was $28,092 and $31,065 for the nine months ended September 30, 2021 and 2020, respectively.

15

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

5. GOODWILL AND INTANGIBLES

The Partnership performed its annual goodwill impairment assessment as of July 1, 2021 and determined that the carrying value of goodwill was not impaired. As of September 30, 2021, the carrying amount of goodwill was $6,332, all of which was recorded within the Transportation and Terminaling segment.

The Partnership’s net intangibles consisted of the following:

	September 30, 2021		December 31, 2020
Customer contracts	$	9,300	$	9,300
Customer relationships	5,900		5,900
	15,200		15,200
Accumulated amortization	(12,272)		(11,896)
Total intangibles, net (1)	$	2,928	$	3,304

(1) Total intangibles, net are included in “Other non-current assets” within the Partnership’s condensed consolidated balance sheets.

Amortization expense was $376 and $5,756 for the nine months ended September 30, 2021 and 2020, respectively.

6. DEBT

Total debt was comprised of the following:

	September 30, 2021		December 31, 2020
2023 Notes	$	525,000	$	525,000
Revolving Credit Facility (1)(2)	125,000		200,000
Total debt outstanding	650,000		725,000
Unamortized debt issuance costs	(3,975)		(5,754)
Unamortized 2023 Notes premium	1,099		1,599
Net carrying value of debt	$	647,124	$	720,845

___________________

(1)PBFX had $4,008 of outstanding letters of credit and $370,992 available under its $500,000 amended and restated revolving credit facility with Wells Fargo Bank, National Association, as administrative agent and a syndicate of lenders (as amended, the “Revolving Credit Facility”) as of September 30, 2021.

(2)During the nine months ended September 30, 2021, PBFX made net repayments of $75,000 under the 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 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 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.

16

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

The estimated fair value of the Revolving Credit Facility approximates its carrying value, categorized as a Level 2 measurement, as this borrowing bears interest based on short-term floating market interest rates. The estimated fair value of the Partnership’s 6.875% Senior Notes due 2023 (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 2023 Notes and was approximately $511,442 and $503,025 at September 30, 2021 and December 31, 2020, 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 $650,000 and $636,442 as of September 30, 2021, respectively, and $725,000 and $703,025 as of December 31, 2020, respectively.

7. EQUITY

PBFX had 32,563,506 outstanding common units held by the public as of September 30, 2021. PBF LLC owns 29,953,631 PBFX common units constituting an aggregate of 47.9% of PBFX’s limited partner interest as of September 30, 2021.

Unit Activity

The partnership agreement authorizes PBFX to issue an unlimited number of additional partnership interests for the consideration of, 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 tables present changes in PBFX common units outstanding:

	Three Months Ended September 30, 2021
	2021	2020
Balance at beginning of period	62,510,376	62,349,592
Vesting of phantom units, net of forfeitures	6,761	10,932
Balance at end of period	62,517,137	62,360,524

	Nine Months Ended September 30, 2021
	2021	2020
Balance at beginning of period	62,364,838	62,130,035
Vesting of phantom units, net of forfeitures	152,299	230,489
Balance at end of period	62,517,137	62,360,524

Additionally, 325,384 of the Partnership’s phantom units issued under the PBFX 2014 Long-Term Incentive Plan 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 year ended December 31, 2020.

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. 

17

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

Equity Activity

The following tables summarize the changes in the carrying amount of the Partnership’s equity during the nine months ended September 30, 2021 and 2020:

	Common Units
Balance at December 31, 2020	$	167,217
Quarterly distributions to unitholders ($0.30 per unit)	(18,926)
Net income attributable to the partners	37,211
Unit-based compensation expense	989
Other	15
Balance at March 31, 2021	$	186,506
Quarterly distributions to unitholders ($0.30 per unit)	(19,023)
Net income attributable to the partners	37,096
Unit-based compensation expense	2,834
Other	(696)
Balance at June 30, 2021	$	206,717
Quarterly distributions to unitholders ($0.30 per unit)	(19,012)
Net income attributable to the partners	36,682
Unit-based compensation expense	835
Other	(45)
Balance at September 30, 2021	$	225,177

	Common Units
Balance at December 31, 2019	$	105,083
Quarterly distributions to unitholders ($0.52 per unit)	(32,703)
Net income attributable to the partners	34,813
Unit-based compensation expense (1)	1,302
Other	(6)
Balance at March 31, 2020	$	108,489
Quarterly distributions to unitholders ($0.30 per unit)	(18,843)
Net income attributable to the partners	37,460
Unit-based compensation expense	945
Other	(805)
Balance at June 30, 2020	$	127,246
Quarterly distributions to unitholders ($0.30 per unit)	(18,847)
Net income attributable to the partners	44,162
Unit-based compensation expense	995
Balance at September 30, 2020	$	153,556

(1) Inclusive of $201 of expense associated with the accelerated vesting of phantom units in March 2020 for nonretirement eligible employees in accordance with their grant agreements.

18

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

Cash Distributions

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

During the nine months ended September 30, 2021, PBFX made distribution payments as follows:

Related Earnings Period:	Q4 2020		Q1 2021		Q2 2021
Distribution date	March 17, 2021		May 27, 2021		August 26, 2021
Record date	February 25, 2021		May 13, 2021		August 12, 2021
Per unit	$	0.30	$	0.30	$	0.30
To public common unitholders	$	9,724	$	9,766	$	9,769
To PBF LLC	$	8,986	$	8,986	$	8,986
Total distribution	$	18,710	$	18,752	$	18,755

The quarterly distributions to limited partners for the three and nine months ended September 30, 2021 and 2020 are shown in the table below. The Partnership’s distributions are declared subsequent to quarter end (distributions of $0.30 per unit were declared for each of the three-month periods ended September 30, 2021 and 2020, distributions of $0.30 per unit were declared for each of the three-month periods ended June 30, 2021 and 2020, and distributions of $0.30 per unit were declared for each of the three-month periods ended March 31, 2021 and 2020); therefore, the table represents total estimated distributions applicable to the period in which the distributions were earned:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Limited partners’ distributions:
Common	$	19,015	$	18,848	$	57,060	$	56,541
Total distributions	$	19,015	$	18,848	$	57,060	$	56,541
Total cash distributions (1)	$	18,771	$	18,708	$	56,278	$	56,119

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

8. NET INCOME PER UNIT

Earnings in excess of distributions are allocated to the limited partners based on their respective ownership 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 effect of potentially dilutive units of PBFX’s common units that consist of unvested phantom units. There were 314,128 and 119,128 anti-dilutive phantom units for the three and nine months ended September 30, 2021, compared to 273,232 and 285,515 anti-dilutive phantom units for the three and nine months ended September 30, 2020.

19

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

The following table shows the calculation of net income per limited partner unit:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income attributable to the partners:
Distributions declared	$	19,015	$	18,848	$	57,060	$	56,541
Earnings less distributions	17,667		25,314		53,929		59,894
Net income attributable to the partners	$	36,682	$	44,162	$	110,989	$	116,435
Weighted-average units outstanding - basic	62,887,914		62,519,105		62,820,193		62,424,217
Weighted-average units outstanding - diluted	62,997,487		62,529,489		62,934,116		62,429,475
Net income per limited partner unit - basic	$	0.58	$	0.71	$	1.77	$	1.87
Net income per limited partner unit - diluted	0.58		0.71		1.76		1.87

9. COMMITMENTS AND CONTINGENCIES

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 (including in response to the potential impacts of climate change), 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.

PBFX recorded a total liability related to environmental remediation obligations at certain of its assets of $1,769 and $1,760 as of September 30, 2021 and December 31, 2020, respectively, related to existing environmental liabilities.

During the first quarter of 2019, the Partnership notified certain agencies of an oil sheen present in the Schuylkill River near one of its facilities. Clean-up, identification and mitigation of the source were immediately initiated. The Pennsylvania Department of Environmental Protection (“PADEP”) approved the Site Characterization Report submitted by the Partnership. A Remedial Action Plan was submitted to the PADEP in October 2020. The PADEP approved the Remedial Action Plan in January 2021, and the response activities are substantially complete. Future remediation costs and any potential penalties are currently not expected to be material to the Partnership.

20

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

Contingent Consideration

In connection with the Partnership’s acquisition of CPI Operations LLC from Crown Point International LLC (“Crown Point”) in October 2018, the purchase and sale agreement between the Partnership and Crown Point included an earn-out provision related to an existing commercial agreement with a third party, based on the future results of certain acquired idled assets (the “Contingent Consideration”). The Partnership and Crown Point agreed to share equally in the future operating profits of the restarted assets, as defined in the purchase and sale agreement, over a contractual term of up to three years starting in 2019. The Contingent Consideration recorded was $2,508 and $12,120 as of September 30, 2021 and December 31, 2020, respectively. The Contingent Consideration is included in “Accrued liabilities” within the Partnership’s condensed consolidated balance sheets.

The Contingent Consideration is categorized in Level 3 of the fair value hierarchy and is estimated using a discounted cash flow model based on management’s estimate of the future cash flows associated with the recommenced idled assets. The changes in fair value of the obligation during the three and nine months ended September 30, 2021 and 2020 were impacted primarily due to the changes in the estimated future cash flows of the assets, accretion on the discounted liability and settlement payments made by the Partnership.

Pursuant to the terms of the commercial agreement, the counterparty exercised its right to terminate the contract at the conclusion of the initial contract year, resulting in an adjustment in the fair value of the Contingent Consideration for the year ended December 31, 2020 of $16,429, reflecting the elimination of the estimated earn-out for years two and three of the performance period. Subsequent to the contract termination, the counterparty and the Partnership agreed to multiple extension agreements for certain of the originally contracted services on a limited basis through the third quarter of 2021. The operating profits resulting from the contract extension remain subject to the earn-out provision between the Partnership and Crown Point. As of the date of this Form 10-Q, the services with the counterparty have ceased. Any future agreements entered into related to the restarted processing unit assets could result in earn-out obligations for the Partnership during the three-year contractual period.

The following table summarizes the changes in fair value of the Contingent Consideration for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Balance at beginning of period	$	1,748	$	27,899	$	12,120	$	26,086
Accretion on discounted liabilities	—		587		—		1,706
Settlements	—		—		(12,176)		—
Unrealized charge (gain) included in earnings	760		(14,766)		2,564		(14,072)
Balance at end of period	$	2,508	$	13,720	$	2,508	$	13,720

21

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

10. RELATED PARTY TRANSACTIONS

Agreements with PBF Energy Entities

Commercial Agreements

PBFX currently derives a majority of its revenue from long-term, fee-based agreements with PBF Holding, which generally include MVCs and 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 and the Services Agreement (each 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. 

Refer to the 2020 Form 10-K for a more complete description of PBFX’s commercial agreements with PBF Holding, including those identified as leases, which were entered into prior to 2021. No new agreements or amendments were entered into during the nine months ended September 30, 2021.

Other Agreements

In addition to the commercial agreements described above, 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”). This 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.

Additionally, PBFX has entered into an operation and management services and secondment agreement with PBF Holding and certain of its subsidiaries (as amended, 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 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. The Services Agreement will terminate upon the termination of the Omnibus Agreement, provided that the Partnership may terminate any service upon 30-days’ notice.

Refer to the 2020 Form 10-K for a more complete description of the Omnibus Agreement and the Services Agreement.

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,
	2021		2020		2021		2020
Revenue	$	75,464	$	70,716	$	226,504	$	218,681
Operating and maintenance expenses	2,171		2,171		6,512		6,512
General and administrative expenses	1,816		1,895		5,531		5,843

22

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

11. SEGMENT INFORMATION

The Partnership’s operations are comprised of 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 2020 Form 10-K.

The Partnership’s operating segments are organized into two reportable segments: (i) Transportation and Terminaling and (ii) Storage. Operations that are not included in either the Transportation and Terminaling or the Storage segments are included in Corporate. The Partnership does not have any foreign operations.

The Partnership’s Transportation and Terminaling segment consists of operating segments that include product terminals, pipelines, crude unloading facilities and other facilities capable of transporting and handling crude oil, refined products and natural gas. The Partnership’s Storage segment consists of operating segments that include storage and other facilities capable of processing crude oil and handling crude oil, refined products and intermediates.

Revenue is generated from third-party transactions as well as commercial agreements entered into with PBF Holding under which the Partnership receives fees for transportation, terminaling, storage and processing services. The commercial agreements with PBF Holding are described in Note 10 “Related Party Transactions” of the Notes to Condensed Consolidated Financial Statements. Certain general and administrative expenses and interest and financing costs are included in Corporate as they are not directly attributable to a specific reporting segment. Identifiable assets are those used by the operating segments, whereas assets included in Corporate are principally cash, deposits and other assets that are not associated with operations.

	Three Months Ended September 30, 2021
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total revenue	$	69,718	$	19,135	$	—	$	88,853
Depreciation and amortization	7,613		2,174		—		9,787
Income (loss) from operations	42,744		8,296		(3,902)		47,138
Other expense	—		—		10,456		10,456
Capital expenditures	3,281		102		—		3,383

	Three Months Ended September 30, 2020
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total revenue	$	66,992	$	22,018	$	—	$	89,010
Depreciation and amortization	7,010		7,295		—		14,305
Income (loss) from operations	43,377		16,363		(4,112)		55,628
Other expense	—		—		11,466		11,466
Capital expenditures	1,438		325		—		1,763

23

PBF LOGISTICS LP

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(IN THOUSANDS, EXCEPT UNIT AND PER UNIT DATA)

	Nine Months Ended September 30, 2021
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total revenue	$	211,903	$	54,293	$	—	$	266,196
Depreciation and amortization	21,953		6,515		—		28,468
Income (loss) from operations	134,801		22,602		(14,592)		142,811
Other expense	—		—		31,822		31,822
Capital expenditures	6,590		302		—		6,892

	Nine Months Ended September 30, 2020
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total revenue	$	203,944	$	67,224	$	—	$	271,168
Depreciation and amortization	21,105		15,716		—		36,821
Income (loss) from operations	127,557		38,640		(12,798)		153,399
Other expense	—		—		36,964		36,964
Capital expenditures	6,469		3,166		—		9,635

	Balance at September 30, 2021
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total assets	$	686,222	$	195,058	$	29,299	$	910,579

	Balance at December 31, 2020
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total assets	$	715,308	$	200,130	$	18,114	$	933,552

12. SUBSEQUENT EVENTS

Cash Distribution

On October 28, 2021, PBF GP’s board of directors announced a cash distribution, based on the results of the third quarter of 2021, of $0.30 per unit. The distribution is payable on November 30, 2021 to PBFX unitholders of record at the close of business on November 12, 2021.

24

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 2020 Form 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 Form 10-Q 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 2020 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 effective dates of each of the Acquisitions from PBF (as defined below) refer to the Predecessor. For periods subsequent to the effective dates of each of the Acquisitions from PBF, these terms refer to the Partnership and its subsidiaries.

Overview

We are 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 30, 2021, owned 99.2% of the total economic interest in PBF LLC. As of September 30, 2021, PBF LLC owned 29,953,631 PBFX common units constituting an aggregate of 47.9% limited partner interest in PBFX, with the remaining 52.1% limited partner interest owned by public unitholders.

Our business includes the assets, liabilities and results of operations of certain crude oil, refined products, natural gas and intermediates terminaling, pipeline, storage and processing assets, including those previously operated and owned by PBF Holding’s subsidiaries and PBF Holding’s previously held subsidiaries.

25

Business Developments

COVID-19

The outbreak of the COVID-19 pandemic negatively impacted worldwide economic and commercial activity and financial markets, as well as global demand for petroleum and petrochemical products starting in the first quarter of 2020. The COVID-19 pandemic, the Delta variant and other variants thereof, and resulting governmental and consumer responses also resulted in significant business and operational disruptions, including business and school closures, supply chain disruptions, travel restrictions, stay-at-home orders and limitations on the availability of workforces. Such impacts resulted in revenue declines due to lower demand and throughput volumes across certain of our facilities. Demand has continued to improve in 2021 but remains below pre-pandemic levels. In response to the COVID-19 pandemic, we have taken and are continuing to take steps to mitigate potential adverse impacts on our business and operations by limiting capital expenditures, reducing discretionary activities and third-party services and lowering our quarterly distribution to our minimum quarterly distribution of $0.30 per unit. This distribution reduction, effective with the distribution for the first quarter of 2020 that was paid on June 17, 2020, represents a strategic shift to build our cash flow coverage, de-lever our business and increase our financial resources as we continue to identify potential organic growth projects or strategic acquisitions. In addition, our parent sponsor and largest customer, PBF Energy, has endeavored to take the necessary steps to preserve liquidity and solidify its operations under the adverse market conditions caused by the COVID-19 pandemic, including reducing the amount of crude oil processed at its refineries and temporary idling of various units at certain refineries. Despite the measures we and PBF Energy have taken and the gradual increases in demand and overall market conditions in the current year, we and PBF Energy have been, and likely will continue to be, adversely impacted by the COVID-19 pandemic. We are unable to predict the ultimate outcome of the economic impact and can provide no assurance that measures taken to mitigate the impact of the COVID-19 pandemic will be effective.

The full extent to which the COVID-19 pandemic impacts our business and operations, or that of PBF Energy, is unknown and will depend on the severity, location and duration of the effects and spread of COVID-19, and the Delta and other variants thereof, the effectiveness of the vaccine programs and the other actions undertaken by national, regional and local governments and health officials to contain the virus or treat its effects (including the ultimate efficacy of vaccine programs on new variants of the virus), related consumer responses and how quickly and to what extent economic conditions improve and normal business and operating conditions resume. As certain restrictions are lifted in various geographical locations throughout the U.S., we will continue to monitor and respond to the impacts that the COVID-19 pandemic has on our business and operations.

Principles of Combination and Consolidation and Basis of Presentation

In general, our Predecessor did not historically operate its assets for the purpose of generating revenue independent of other PBF Energy businesses that we support. In connection with, and subsequent to, our initial public offering (“IPO”), we have acquired certain assets from PBF LLC (collectively referred to as the “Contributed Assets”). Such acquisitions completed subsequent to the IPO were made through a series of dropdown transactions with PBF LLC (collectively referred to as the “Acquisitions from PBF”). Upon the closing of the 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 revenue. We receive, handle and transfer crude oil, refined products and natural gas from sources located throughout the U.S. and Canada and store crude oil, refined products and intermediates for PBF Energy in support of its refineries. In addition, we generate third-party revenue from certain of our assets.

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Agreements with PBF Energy Entities

Commercial Agreements

We currently derive a majority of our revenue from long-term, fee-based agreements with PBF Holding, which generally include minimum volume commitment (“MVC”) stipulations and 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 and the Services Agreement (each 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.

Refer to our 2020 Form 10-K and Note 10 “Related Party Transactions” of the Notes to Condensed Consolidated Financial Statements included in “Item 1. Financial Statements” in this Form 10-Q for a more complete description of our commercial agreements with PBF Holding, including those identified as leases.

Other Agreements

In addition to the commercial agreements described above, we 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”). This 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.

We have also entered into an operation and management services and secondment agreement with PBF Holding and certain of its subsidiaries (as amended, the “Services Agreement”), pursuant to which PBF Holding and its subsidiaries provide us with the personnel necessary for us to perform our obligations under 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 our operations. The Services Agreement will terminate upon the termination of the Omnibus Agreement, provided that we may terminate any service upon 30-days’ notice.

Refer to our 2020 Form 10-K for a more complete description of the Omnibus Agreement and the Services Agreement.

Factors Affecting the Comparability of Our Financial Results

Our results of operations may not be comparable to our historical results of operations due to certain debt transactions and our annual inflation adjustment to our commercial agreements.

Furthermore, our results of operations may not be comparable to our historical results of operations due to the termination of the CPI Processing Agreement (as defined below). In connection with the Partnership’s acquisition of CPI Operations LLC (“CPI”) from Crown Point International LLC, the purchase and sale agreement included an earn-out provision related to an existing commercial agreement (the “CPI Processing Agreement”), based on the future results of certain acquired idled assets, which recommenced operations in October 2019. In the third quarter of 2020, pursuant to the terms of the CPI Processing Agreement, the counterparty exercised its right to terminate the contract at the conclusion of the initial contract year, effective in the fourth quarter of 2020 (the “CPI Contract Termination”). While the counterparty and the Partnership subsequently agreed to extensions of certain of the originally contracted services under the CPI Processing Agreement through the third quarter of 2021, the limited nature of these services affected the comparability of our results of operations, specifically within our Storage segment, on a year-over-year basis. As of the date of this Form 10-Q, the services have ceased. Refer to “Results of Operations” below for further discussion.

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Other Factors That Will Significantly Affect Our Results

Supply and Demand for Crude Oil, Refined Products and Natural Gas. We generate revenue by charging fees for receiving, handling, transferring, storing, throughputting and processing crude oil, refined products and natural gas. A majority of our revenue is derived from MVC, fee-based commercial agreements with subsidiaries of PBF Energy with initial terms ranging from one to fifteen years, 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 operational needs which are largely impacted by refining margins. Refining margins are greatly dependent upon the price of crude oil or other refinery feedstocks, refined products and natural gas.

Factors driving the prices of petroleum-based commodities include supply and demand for 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. The impact of the unprecedented global health and economic crisis sparked by the COVID-19 pandemic was amplified late in the first quarter of 2020 due to movements made by the world’s largest oil producers to increase market share. This created simultaneous shocks in oil supply and demand resulting in an economic challenge to our industry which has not occurred since our formation. These factors have resulted in significant demand destruction for refined petroleum products and atypical volatility in oil commodity prices. Although the effects may be mitigated by MVC provisions in certain of our commercial contracts, this overall demand destruction and market environment could lead to lower storage or throughput volumes processed at our assets, which could negatively impact our results of operations and cash flows. Demand has continued to improve in 2021 but remains below pre-pandemic levels. While it is impossible to estimate the duration or complete financial impact of the COVID-19 pandemic, a significant portion of the negative impacts and risk to us may be mitigated through our MVCs within the commercial agreements with PBF Holding. Refer to “Risk Factors” included in “Item 1A.” of our 2020 Form 10-K.

Acquisition and Organic Growth Opportunities. We may acquire additional logistics assets from PBF Energy or third parties. Under our Omnibus Agreement, 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 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. Identifying and executing acquisitions and organic growth projects is a key part of our strategy, and we believe that we are well-positioned to acquire logistics assets from PBF Energy and third parties should such opportunities arise. However, there is no guarantee that we will be able to identify attractive organic growth projects or acquisitions in the future, or be able to consummate any such opportunities identified. Additionally, if we do not complete acquisitions or organic growth projects on economically acceptable terms, our future growth will be limited, and the acquisitions or projects we do 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 $500.0 million amended and restated revolving credit facility (as amended, the “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.

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Third-Party Business. As of September 30, 2021, PBF Holding accounts for a substantial majority of our revenue and we continue to expect that a majority of our revenue for the foreseeable future will be derived from operations supporting PBF Holding’s refineries. We continue to explore further diversification of our customer base by potentially developing additional third-party throughput volumes in our existing system and continuing to explore expanding 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 MVCs. If we are unable to increase throughput or storage volumes, future growth may be limited.

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, Adjusted EBITDA and distributable cash flow. We define EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA 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 and utilized storage capacity. These volumes are primarily affected by the supply of and demand for crude oil, refined products and natural gas in the markets served directly or indirectly by our assets. Although PBF Energy has committed to minimum volumes under certain commercial agreements, our results of operations will be impacted by:

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

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

•our ability to increase throughput or storage 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 and outside contractor costs, utilities, insurance premiums, repairs and maintenance charges 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.

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

EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are non-GAAP supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

•our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;

•the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;

•our ability to incur and service debt and fund capital expenditures; and

•the viability of acquisitions and other capital expenditure projects and the economic returns on various investment opportunities.

We believe that the presentation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA provides useful information to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance for current and comparative periods. We believe that the presentation of distributable cash flow provides useful information to investors as it is a widely accepted financial indicator used by investors to compare partnership performance and provides investors with another perspective of the operating performance of our assets and the cash our business is generating. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, income from operations, net cash provided by operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all, items that affect net income and net cash provided by operating activities. Additionally, because EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow may be defined differently by other companies in our industry, our definitions of such measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA and distributable cash flow are reconciled to net income and net cash provided by operating activities in “Results of Operations” below.

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Results of Operations

A discussion and analysis of the factors contributing to our results of operations are 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 months ended September 30, 2021 and 2020. 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,
	2021		2020		2021		2020
	(In thousands)
Revenue:
Affiliate	$	75,464	$	70,716	$	226,504	$	218,681
Third-party	13,389		18,294		39,692		52,487
Total revenue	88,853		89,010		266,196		271,168
Costs and expenses:
Operating and maintenance expenses	27,265		22,730		77,760		75,385
General and administrative expenses	3,902		4,112		14,592		12,798
Depreciation and amortization	9,787		14,305		28,468		36,821
Impairment expense	—		7,000		—		7,000
Change in contingent consideration	761		(14,765)		2,565		(14,235)
Total costs and expenses	41,715		33,382		123,385		117,769
Income from operations	47,138		55,628		142,811		153,399
Other expense:
Interest expense, net	(10,027)		(10,544)		(30,526)		(33,929)
Amortization of loan fees and debt premium	(423)		(328)		(1,278)		(1,309)
Accretion on discounted liabilities	(6)		(594)		(18)		(1,726)
Net income attributable to PBF Logistics LP unitholders	$	36,682	$	44,162	$	110,989	$	116,435
Other data:
EBITDA attributable to PBFX	$	56,839	$	59,281	$	171,778	$	174,457
Adjusted EBITDA	57,890		60,519		176,865		178,459
Distributable cash flow	46,782		48,486		143,495		136,233
Capital expenditures	3,383		1,763		6,892		9,635

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Reconciliation of Non-GAAP Financial Measures

As described in “How We Evaluate Our Operations,” our management uses EBITDA, EBITDA attributable to PBFX, Adjusted EBITDA 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, which is 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,
	2021		2020		2021		2020
	(In thousands)
Net income	$	36,682	$	44,162	$	110,989	$	116,435
Interest expense, net	10,027		10,544		30,526		33,929
Amortization of loan fees and debt premium	423		328		1,278		1,309
Accretion on discounted liabilities	6		594		18		1,726
Change in contingent consideration	761		(14,765)		2,565		(14,235)
Impairment expense	—		7,000		—		7,000
Depreciation and amortization	9,787		14,305		28,468		36,821
EBITDA	57,686		62,168		173,844		182,985
Less: Earnings attributable to the CPI earn-out	847		2,887		2,066		8,528
EBITDA attributable to PBFX	56,839		59,281		171,778		174,457
Non-cash unit-based compensation expense	835		995		4,658		3,242
Cash interest	(10,066)		(10,760)		(30,678)		(34,481)
Maintenance capital expenditures attributable to PBFX	(826)		(1,030)		(2,263)		(6,985)
Distributable cash flow	$	46,782	$	48,486	$	143,495	$	136,233

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The following table presents a reconciliation of EBITDA, EBITDA attributable to PBFX and distributable cash flow to net cash provided by operating activities, which is 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,
	2021		2020		2021		2020
	(In thousands)
Net cash provided by operating activities	$	53,419	$	61,741	$	143,704	$	141,429
Change in operating assets and liabilities	(4,925)		(9,122)		4,272		10,869
Interest expense, net	10,027		10,544		30,526		33,929
Non-cash unit-based compensation expense	(835)		(995)		(4,658)		(3,242)
EBITDA	57,686		62,168		173,844		182,985
Less: Earnings attributable to the CPI earn-out	847		2,887		2,066		8,528
EBITDA attributable to PBFX	56,839		59,281		171,778		174,457
Non-cash unit-based compensation expense	835		995		4,658		3,242
Cash interest	(10,066)		(10,760)		(30,678)		(34,481)
Maintenance capital expenditures attributable to PBFX	(826)		(1,030)		(2,263)		(6,985)
Distributable cash flow	$	46,782	$	48,486	$	143,495	$	136,233

The following table presents a reconciliation of EBITDA, EBITDA attributable to PBFX and Adjusted EBITDA to net income, which is 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,
	2021		2020		2021		2020
	(In thousands)
Net income	$	36,682	$	44,162	$	110,989	$	116,435
Interest expense, net	10,027		10,544		30,526		33,929
Amortization of loan fees and debt premium	423		328		1,278		1,309
Accretion on discounted liabilities	6		594		18		1,726
Change in contingent consideration	761		(14,765)		2,565		(14,235)
Impairment expense	—		7,000		—		7,000
Depreciation and amortization	9,787		14,305		28,468		36,821
EBITDA	57,686		62,168		173,844		182,985
Less: Earnings attributable to the CPI earn-out	847		2,887		2,066		8,528
EBITDA attributable to PBFX	56,839		59,281		171,778		174,457
Acquisition and transaction costs	—		6		—		116
Non-cash unit-based compensation expense	835		995		4,658		3,242
East Coast Terminals environmental remediation costs	216		237		429		644
Adjusted EBITDA	$	57,890	$	60,519	$	176,865	$	178,459

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Three Months Ended September 30, 2021 Compared to the Three Months Ended September 30, 2020

Summary

Our net income for the three months ended September 30, 2021 decreased by approximately $7.5 million to $36.7 million from $44.2 million for the three months ended September 30, 2020. The decrease in net income was primarily due to the following:

•an increase in change in contingent consideration of approximately $15.5 million due to the extension of certain services under the CPI Processing Agreement through the third quarter of 2021;

•an increase in operating and maintenance expenses of approximately $4.5 million, or 20.0%, as a result of higher outside services and other fees coinciding with increased throughput at certain of our assets, higher utilities expenses due to increased energy usage and increased maintenance activity; and

•a decrease in total revenue of approximately $0.2 million, or 0.2%, primarily attributable to the CPI Contract Termination, offset by inflation rate adjustments implemented in accordance with certain of our commercial agreements (the “Inflation Rate Increase”) and increased throughput at certain of our assets;

offset by the following:

•a decrease in impairment expense of approximately $7.0 million, or 100.0%, resulting from an impairment charge incurred in 2020;

•a decrease in depreciation and amortization of approximately $4.5 million, or 31.6%, due to certain CPI assets being fully depreciated and amortized in the fourth quarter of 2020 as a result of the CPI Contract Termination;

•a decrease in other expenses of approximately $1.0 million, or 8.8%, primarily related to a decrease in interest expense as a result of lower borrowings under our Revolving Credit Facility and a decrease in accretion on discounted liabilities due to lower outstanding applicable liabilities; and

•a decrease in general and administrative expenses of approximately $0.2 million, or 5.1%, due to decreased unit-based compensation expense.

EBITDA attributable to PBFX for the three months ended September 30, 2021 decreased by approximately $2.4 million to $56.8 million from $59.3 million for the three months ended September 30, 2020 due to the factors noted above, excluding the impact of depreciation and amortization, impairment expense, interest expense, net, amortization of loan fees and debt premium, accretion on discounted liabilities, change in contingent consideration and earnings attributable to the CPI earn-out.

Adjusted EBITDA for the three months ended September 30, 2021 decreased by approximately $2.6 million to $57.9 million from $60.5 million for the three months ended September 30, 2020 due to the factors noted above, excluding the impact of acquisition and transaction costs, unit-based compensation and certain environmental remediation costs.

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Nine Months Ended September 30, 2021 Compared to the Nine Months Ended September 30, 2020

Summary

Our net income for the nine months ended September 30, 2021 decreased by approximately $5.4 million to $111.0 million from $116.4 million for the nine months ended September 30, 2020. The decrease in net income was primarily due to the following:

•an increase in change in contingent consideration of approximately $16.8 million due to the extension of certain services under the CPI Processing Agreement through the third quarter of 2021;

•a decrease in total revenue of approximately $5.0 million, or 1.8%, primarily attributable to the CPI Contract Termination, offset by the Inflation Rate Increase, increased throughput at certain of our assets and affiliate product sales;

•an increase in operating and maintenance expenses of approximately $2.4 million, or 3.2%, as a result of higher utilities expenses due to increased energy usage and increased maintenance activity; and

•an increase in general and administrative expenses of approximately $1.8 million, or 14.0%, due to increased unit-based compensation expense;

offset by the following:

•a decrease in depreciation and amortization of approximately $8.4 million, or 22.7%, due to certain CPI assets being fully depreciated and amortized in the fourth quarter of 2020 as a result of the CPI Contract Termination;

•a decrease in impairment expense of approximately $7.0 million, or 100.0%, resulting from an impairment charge incurred in 2020; and

•a decrease in other expenses of approximately $5.1 million, or 13.9%, primarily related to a decrease in interest expense as a result of lower borrowings under our Revolving Credit Facility and a decrease in accretion on discounted liabilities due to lower outstanding applicable liabilities.

EBITDA attributable to PBFX for the nine months ended September 30, 2021 decreased by approximately $2.7 million to $171.8 million from $174.5 million for the nine months ended September 30, 2020 due to the factors noted above, excluding the impact of depreciation and amortization, impairment expense, interest expense, net, amortization of loan fees and debt premium, accretion on discounted liabilities, change in contingent consideration and earnings attributable to the CPI earn-out.

Adjusted EBITDA for the nine months ended September 30, 2021 decreased by approximately $1.6 million to $176.9 million from $178.5 million for the nine months ended September 30, 2020 due to the factors noted above, excluding the impact of acquisition and transaction costs, unit-based compensation and certain environmental remediation costs.

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Segment Information

Our operations are comprised of operating segments, which are strategic business units that offer different services in various geographical locations. We review operations 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 our reportable segments based on the segment operating income. Segment operating income is defined as net revenue less operating expenses, depreciation and amortization and change in contingent consideration. 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” of the Notes to Condensed Consolidated Financial Statements included in “Item 1. Financial Statements.”

Transportation and Terminaling Segment

The following table and discussion provide an explanation of our results of operations of the Transportation and Terminaling segment for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(in thousands, except for total throughput and lease tank capacity)
Revenue:
Affiliate	$	64,362	$	60,662	$	194,253	$	187,517
Third-party	5,356		6,330		17,650		16,427
Total revenue	69,718		66,992		211,903		203,944
Costs and expenses:
Operating and maintenance expenses	19,361		16,605		55,149		55,282
Depreciation and amortization	7,613		7,010		21,953		21,105
Total costs and expenses	26,974		23,615		77,102		76,387
Transportation and Terminaling Segment Operating Income	$	42,744	$	43,377	$	134,801	$	127,557
Key Operating Information
Transportation and Terminaling Segment
Terminals
Total throughput (bpd)(1)	263,389		199,139		247,167		240,159
Lease tank capacity (average lease capacity barrels per month)(2)	2,027,334		2,587,334		2,313,001		2,343,637
Pipelines
Total throughput (bpd)(1)	164,103		143,273		157,172		153,909
Lease tank capacity (average lease capacity barrels per month)(2)	1,175,380		1,123,864		1,080,644		1,144,915

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

(2) Lease capacity is based on tanks in service and average lease capacity available during the period.

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Three Months Ended September 30, 2021 Compared to the Three Months Ended September 30, 2020

Our Transportation and Terminaling operating income for the three months ended September 30, 2021 decreased by approximately $0.6 million to $42.7 million from $43.4 million for the three months ended September 30, 2020. The decrease in operating income was primarily due to the following:

•an increase in operating and maintenance expenses of approximately $2.8 million, or 16.6%, as a result of higher outside services and other fees coinciding with increased throughput at certain of our assets, higher utilities expenses due to increased energy usage and increased maintenance activity; and

•an increase in depreciation and amortization of approximately $0.6 million, or 8.6%, related to the timing of assets being placed in service;

offset by the following:

•an increase in total revenue of approximately $2.7 million, or 4.1%, primarily attributable to the Inflation Rate Increase and increased throughput at certain of our assets.

Nine Months Ended September 30, 2021 Compared to the Nine Months Ended September 30, 2020

Our Transportation and Terminaling operating income for the nine months ended September 30, 2021 increased by approximately $7.2 million to $134.8 million from $127.6 million for the nine months ended September 30, 2020. The increase in operating income was primarily due to the following:

•an increase in total revenue of approximately $8.0 million, or 3.9%, primarily attributable to the Inflation Rate Increase, increased throughput at certain of our assets and affiliate product sales;

offset by the following:

•an increase in depreciation and amortization of approximately $0.8 million, or 4.0%, related to the timing of assets being placed in service.

Operating and maintenance expenses were relatively consistent during the comparative periods with no significant fluctuation activity.

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Storage Segment

The following table and discussion provide an explanation of our results of operations of the Storage segment for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
(in thousands, except for storage capacity reserved and total throughput)
Revenue:
Affiliate	$	11,102	$	10,054	$	32,251	$	31,164
Third-party	8,033		11,964		22,042		36,060
Total revenue	19,135		22,018		54,293		67,224
Costs and expenses:
Operating and maintenance expenses	7,904		6,125		22,611		20,103
Depreciation and amortization	2,174		7,295		6,515		15,716
Impairment expense	—		7,000		—		7,000
Change in contingent consideration	761		(14,765)		2,565		(14,235)
Total costs and expenses	10,839		5,655		31,691		28,584
Storage Segment Operating Income	$	8,296	$	16,363	$	22,602	$	38,640
Key Operating Information
Storage Segment
Storage capacity reserved (average shell capacity barrels per month)(1)	7,727,436		7,687,505		7,667,832		7,634,264
Total throughput (bpd)(2)	19,227		21,835		16,779		24,704

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

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

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Three Months Ended September 30, 2021 Compared to the Three Months Ended September 30, 2020

Our Storage operating income for the three months ended September 30, 2021 decreased by approximately $8.1 million to $8.3 million from $16.4 million for the three months ended September 30, 2020. The decrease in operating income was primarily due to the following:

•an increase in change in contingent consideration of approximately $15.5 million due to the extension of certain services under the CPI Processing Agreement through the third quarter of 2021;

•a decrease in total revenue of approximately $2.9 million, or 13.1%, primarily attributable to the CPI Contract Termination; and

•an increase in operating and maintenance expenses of approximately $1.8 million, or 29.0%, due to higher utilities expenses as a result of increased energy usage and increased maintenance activity;

offset by the following:

•a decrease in impairment expense of $7.0 million, or 100.0%, resulting from an impairment charge incurred in 2020; and

•a decrease in depreciation and amortization of approximately $5.1 million, or 70.2%, due to certain CPI assets being fully depreciated and amortized in the fourth quarter of 2020 as a result of the CPI Contract Termination.

Nine Months Ended September 30, 2021 Compared to the Nine Months Ended September 30, 2020

Our Storage operating income for the nine months ended September 30, 2021 decreased by approximately $16.0 million to $22.6 million from $38.6 million for the nine months ended September 30, 2020. The decrease in operating income was primarily due to the following:

•an increase in change in contingent consideration of approximately $16.8 million due to the extension of certain services under the CPI Processing Agreement through the third quarter of 2021;

•a decrease in total revenue of approximately $12.9 million, or 19.2%, primarily attributable to the CPI Contract Termination; and

•an increase in operating and maintenance expenses of approximately $2.5 million, or 12.5%, due to higher utilities expenses as a result of increased energy usage and increased maintenance activity;

offset by the following:

•a decrease in depreciation and amortization of approximately $9.2 million, or 58.5%, due to certain CPI assets being fully depreciated and amortized in the fourth quarter of 2020 as a result of the CPI Contract Termination; and

•a decrease in impairment expense of $7.0 million, or 100.0%, resulting from an impairment charge incurred in 2020.

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Liquidity and Capital Resources

Due to the COVID-19 pandemic and the current challenging and volatile market conditions, starting in the first quarter of 2020, our business and operating results have been impacted by demand destruction for refined petroleum products as a result of the worldwide economic slowdown and governmental and consumer responses, including travel restrictions and stay-at-home orders. Such conditions have improved in 2021 but continue to affect our operations and financial condition due to changes in the usage and level of demand for our services, including a reduction in third-party and incremental affiliate revenue. We expect our ongoing sources of liquidity to include cash generated from operations (a significant portion of which are supported by MVCs in our commercial agreements), borrowings under our Revolving Credit Facility and issuances of additional debt and equity securities as appropriate given market conditions. Additionally, we remain focused on opportunities to support our financial position in the current environment, including limiting capital expenditures, reducing discretionary activities and third-party services and continually assessing our quarterly distribution level. While it is impossible to estimate the duration or complete financial impact of the COVID-19 pandemic and volatile market conditions, we expect that these sources of funds will be adequate to provide for our short-term and long-term liquidity needs, including our debt service, capital expenditures and distributions on our units. We may also pursue other strategic initiatives to strengthen our financial position, including debt and/or equity securities repurchases, to the extent such initiatives can be funded without impairing our liquidity. Refer to “Risk Factors” included in “Item 1A.” of our 2020 Form 10-K for further information.

Our largest customer is our affiliate, PBF Holding, a subsidiary of our parent sponsor. PBF Energy has initiated several steps as part of a strategic plan to navigate current volatile markets and preserve or enhance its liquidity, including asset sales, new debt issuances, temporarily idling various units at certain refineries to optimize production, reductions in capital and operating expenditures, suspension of its dividend and exploring other potential opportunistic financing activities. We believe such actions will allow PBF Energy to continue to honor its commercial agreements with us.

In response to the impacts of the COVID-19 pandemic, we reduced our quarterly distribution to our minimum quarterly distribution of $0.30 per unit effective with the distribution for the first quarter of 2020. This reduction represents a strategic shift to build our cash flow coverage, de-lever our business and increase our financial resources as we continue to pursue potential organic growth projects or strategic acquisition opportunities. However, we intend to continue to pay at least the minimum quarterly distribution of $0.30 per unit per quarter, or $1.20 per unit on an annualized basis, which aggregates to approximately $19.0 million per quarter or approximately $76.0 million on an annualized basis, based on the number of common units outstanding as of September 30, 2021.

As of September 30, 2021, we had approximately $399.6 million of liquidity, including approximately $28.6 million in cash and cash equivalents, and access to approximately $371.0 million under our Revolving Credit Facility.

During the nine months ended September 30, 2021, we made cash distribution payments as follows (in thousands, except per unit data):

Related Earnings Period:	Q4 2020		Q1 2021		Q2 2021
Distribution date	March 17, 2021		May 27, 2021		August 26, 2021
Record date	February 25, 2021		May 13, 2021		August 12, 2021
Per unit	$	0.30	$	0.30	$	0.30
To public common unitholders	$	9,724	$	9,766	$	9,769
To PBF LLC	$	8,986	$	8,986	$	8,986
Total distribution	$	18,710	$	18,752	$	18,755

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Credit Facilities

The Revolving Credit Facility is available to fund working capital, acquisitions, distributions and capital expenditures and for other general partnership purposes. We have the ability to increase the maximum amount of the Revolving Credit Facility by an aggregate amount of up to $250.0 million, to a total facility size of $750.0 million, subject to receiving increased commitments from the lenders or other financial institutions and satisfaction of certain conditions. Obligations under the Revolving Credit Facility are guaranteed by our restricted subsidiaries and secured by a first priority lien on our assets and those of our restricted subsidiaries. The maturity date of the Revolving Credit Facility is July 30, 2023 and may be extended for one year on up to two occasions, subject to certain customary terms and conditions. We are in compliance with the covenants under the Revolving Credit Facility as of September 30, 2021.

During the nine months ended September 30, 2021, we made net repayments of $75.0 million under the Revolving Credit Facility.

Our 6.875% Senior Notes due 2023 (the “2023 Notes”) have an aggregate principal amount of $525.0 million with interest payable semi-annually on May 15 and November 15. The 2023 Notes mature on May 15, 2023. The 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 30, 2021, we are in compliance with all covenants under the 2023 Notes.

Cash Flows

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

	Nine Months Ended September 30,
	2021		2020
	(In thousands)
Net cash provided by operating activities	$	143,704	$	141,429
Net cash used in investing activities	(6,892)		(9,635)
Net cash used in financing activities	(144,449)		(138,909)
Net change in cash and cash equivalents	$	(7,637)	$	(7,115)

Cash Flows from Operating Activities

Net cash provided by operating activities increased by approximately $2.3 million to $143.7 million for the nine months ended September 30, 2021 compared to $141.4 million for the nine months ended September 30, 2020. The increase in net cash provided by operating activities was primarily the result of an increase in the net changes in operating assets and liabilities of approximately $6.6 million primarily driven by the timing of collection of accounts receivables and liability payments and a net increase in non-cash charges relating to depreciation and amortization, impairment expense, amortization of loan fees and debt premium, accretion on discounted liabilities, unit-based compensation and change in contingent consideration of approximately $1.1 million, offset by a decrease in net income of approximately $5.4 million.

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Cash Flows from Investing Activities

Net cash used in investing activities decreased by approximately $2.7 million to $6.9 million for the nine months ended September 30, 2021 compared to $9.6 million for the nine months ended September 30, 2020. The decrease in net cash used in investing activities was due to a decrease in capital expenditures of approximately $2.7 million primarily related to continued reductions in capital spending in the current year in response to the COVID-19 pandemic.

Cash Flows from Financing Activities

Net cash used in financing activities increased by approximately $5.5 million to $144.4 million for the nine months ended September 30, 2021 compared to $138.9 million for the nine months ended September 30, 2020. Net cash used in financing activities for the nine months ended September 30, 2021 consisted of net repayments of $75.0 million under our Revolving Credit Facility, distributions to unitholders of $56.2 million, a $12.2 million earn-out payment under the CPI Processing Agreement and deferred financing costs and other costs of $1.1 million. Net cash used in financing activities for the nine months ended September 30, 2020 consisted of net repayments of $70.0 million under our Revolving Credit Facility and distributions to unitholders of $69.7 million, offset by deferred financing costs and other costs of $0.8 million.

Capital Expenditures

Our capital requirements have consisted of, and are expected to continue to consist of: expansion, maintenance and regulatory capital expenditures. 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 assets, the construction, development or acquisition of equipment at our facilities or projects that provide additional throughput or storage capacity to the extent such capital expenditures are expected to expand our operating capacity or increase our operating income. 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 our transportation, terminaling, storage and processing assets and to maintain equipment reliability, integrity and safety. Regulatory capital expenditures are expenditures made to attain or maintain compliance with regulatory standards (including in response to the potential impacts of climate change). Examples of regulatory capital expenditures are expenditures incurred to address environmental laws or regulations.

Capital expenditures for the nine months ended September 30, 2021 and 2020 were as follows:

	Nine Months Ended September 30,
	2021		2020
	(In thousands)
Expansion	$	3,888	$	1,789
Maintenance	2,263		6,985
Regulatory	741		861
Total capital expenditures	$	6,892	$	9,635

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We currently expect to spend approximately $3.0 million to $6.0 million for the remainder of 2021 for capital expenditures. Of the total expected remaining capital expenditures, approximately $2.5 million to $4.5 million relate to maintenance capital expenditures. We anticipate the forecasted maintenance capital expenditures will be funded primarily with cash from operations and through borrowings under the Revolving Credit Facility as needed. We currently have not included any potential future acquisitions in our forecasted capital expenditures for the remainder of 2021. We may rely on external sources including incremental borrowings under the Revolving Credit Facility and issuances of equity and debt securities to fund any significant future expansion.

Contractual Obligations

With the exception of activity under the Revolving Credit Facility, there have been no significant changes in our contractual obligations since those reported in our 2020 Form 10-K. Refer to Note 6 “Debt” of the Notes to Condensed Consolidated Financial Statements included in “Item 1. Financial Statements” for additional information regarding our debt obligations.

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 $4.0 million.

Environmental and Other Matters

Environmental Regulations

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 and 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, as well as the interpretation of such laws and regulations, are subject to changes 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

Contaminations resulting from spills of crude oil or petroleum products are not unusual within the petroleum terminaling or transportation industries, and, historically, spills at truck and rail racks and terminals have resulted in contamination of the environment, including soils and groundwater.

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Pursuant to the contribution agreements entered into in connection with the 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 the Contributed Assets and arising from the conditions that existed prior to the closings of the IPO and the Acquisitions from PBF. In addition, we have agreed to indemnify PBF Energy for (i) certain events and conditions associated with the ownership or operation of our assets that occur, as applicable, after the closing of each Acquisition from PBF (including the IPO) and (ii) environmental liabilities related to our assets if the environmental liability is the result of the negligence, willful misconduct or criminal conduct of us or our employees, including those seconded to us. As a result, we may incur environmental expenses in the future, which may be substantial.

As of September 30, 2021, we have recorded a total liability related to environmental remediation costs of $1.8 million related to existing environmental liabilities. Refer to Note 9 “Commitments and Contingencies” of the Notes to Condensed Consolidated Financial Statements included in “Item 1. Financial Statements” for additional information.

Supplemental Guarantor Financial Information

The following consolidated subsidiaries serve as guarantors of the obligations under the 2023 Notes:

•Delaware City Logistics Company LLC;

•Delaware Pipeline Company LLC;

•Delaware City Terminaling Company LLC;

•Toledo Terminaling Company LLC;

•PBF Logistics Products Terminals LLC;

•PBFX Operating Company LLC;

•Torrance Valley Pipeline Company LLC;

•Paulsboro Natural Gas Pipeline Company LLC;

•Toledo Rail Logistics Company LLC;

•Chalmette Logistics Company LLC;

•Paulsboro Terminaling Company LLC;

•DCR Storage and Loading Company LLC;

•CPI Operations LLC; and

•PBFX Ace Holdings LLC.

These guarantees are full and unconditional and joint and several.

PBF Logistics LP serves as “Issuer,” with PBF Logistics Finance Corporation (“PBF Finance”) as “Co-Issuer.” The indenture dated May 12, 2015, as supplemented, among us, PBF 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 restrictions included in the indenture. Refer to PBF LLC’s condensed consolidated financial statements, which are included in the combined Quarterly Report on Form 10-Q for the period ended September 30, 2021 filed by PBF LLC and PBF Energy.

The Co-Issuer has no independent assets or operations, and we do not have any subsidiaries designated as “Non-Guarantor Subsidiaries.” As such, the consolidated results of the Issuer and Guarantor Subsidiaries are reflected in our Condensed Consolidated Financial Statements included in “Item 1. Financial Statements.”

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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. We have minimal direct exposure to risks associated with fluctuating commodity 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 experience modest volume gains and losses, which we sometimes refer to as imbalances, through the operations of 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 nine months ended September 30, 2021, 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 the Revolving Credit Facility bears interest at a variable rate and exposes us to interest rate risk. At September 30, 2021, we had $125.0 million outstanding in variable interest debt. A 1.0% change in the interest rate associated with the borrowings outstanding under this facility would result in a $4.0 million change in our interest expense, assuming we were to borrow all $500.0 million available under the Revolving Credit Facility.

We continually monitor our market risk exposure, including the impact and developments related to the COVID-19 pandemic, which has introduced significant volatility in the financial markets.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

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 our management, including our principal executive officer and our principal financial officer, 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 amended) as of September 30, 2021. Based on that evaluation, our principal executive officer and our principal financial officer have concluded that our disclosure controls and procedures are effective as of September 30, 2021.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal controls over financial reporting during the three months ended September 30, 2021 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may be involved in litigation, legal or governmental proceedings and other claims arising out of or relating to our operations in the normal course of business. Except as set forth in our filings with the SEC or below, we do not believe that we are a party to any such matters that will have a material adverse impact on our financial condition, results of operations or statements of cash flows and we are not aware of any such matters contemplated to be brought against us.

On December 28, 2016, the Delaware Department of Natural Resources and Environmental Control issued a Coastal Zone Act permit for ethanol (the “Ethanol Permit”) to Delaware City Refining Company LLC (“DCR”) 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 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 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 ethanol shipments. On remand, the Coastal Zone Board met on January 28, 2019 and reversed its previous decision on standing, ruling that the appellants have standing to appeal the issuance of the Ethanol Permit. The parties to the action filed a joint motion with the Coastal Zone Board, requesting that the Coastal Zone Board concur with the parties’ proposal to secure from the Superior Court confirmation that all rights and claims are preserved for any subsequent appeal to the Superior Court, and that the matter then be scheduled for a hearing on the merits before the Coastal Zone Board. The Coastal Zone Board notified the parties in January of 2020 that it concurred with the parties’ proposed course of action. The appellants and DCR subsequently filed a motion with the Superior Court requesting relief consistent with what was described to the Coastal Zone Board. In March of 2020, the Superior Court issued a letter relinquishing jurisdiction over the matter and concurring with the parties’ proposal to allow the case to proceed to a hearing on the merits before the Coastal Zone Board. The parties must now jointly propose to the Coastal Zone Board a schedule for pre-hearing activity and a merits hearing to resolve the matter. The parties must, therefore, submit to the Coastal Zone Board a joint proposed schedule to govern future proceedings related to the merits hearing to resolve the matter.

On December 4, 2020, the Pennsylvania Department of Environmental Protection (the “PADEP”) issued a draft Consent Order and Agreement to the Partnership’s wholly-owned subsidiary, PBF Logistics Products Terminals LLC, with respect to two alleged violations at the Philadelphia terminal for failure to: 1) test and inspect regulated piping as required in accordance with industry standards; and 2) have a professional engineering certification that all above ground storage tanks meet the applicable performance standards and requirements as a result of an alleged release of oil on January 10, 2019 into the Schuylkill River resulting from a pipe leak that was not contained by emergency containment structure. The draft order included a proposed penalty of $0.8 million. The Partnership is currently communicating with the PADEP regarding the allegations and the settlement offer. As part of the ongoing communications, on October 22, 2021, the PADEP provided an updated draft order updating the corrective action items and explicitly reserving the PADEP’s right to bring an enforcement action under the Clean Streams Law for environmental damage allegedly caused by the release of oil that resulted from the alleged operational violations and capping the penalty amount for such violations at $0.3 million in addition to the original penalty amount.

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Item 1A. Risk Factors

There have been no significant changes from the risk factors previously disclosed in “Item 1A. Risk Factors” of our 2020 Form 10-K.

Item 6. Exhibits

The exhibits listed in the accompanying Exhibit Index are filed or incorporated by reference as part of this Form 10-Q, and such Exhibit Index is incorporated herein by reference.

EXHIBIT INDEX

Exhibit Number	Description
22.1*	List of Guarantor Subsidiaries.
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.
104	The cover page from the Partnership’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, formatted as Inline XBRL (included in Exhibit 101).

——————

* Filed herewith.

** This exhibit should not be deemed to be “filed” for purposes of Section 18 of the Exchange Act.

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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:	October 28, 2021		By:	/s/ Erik Young
				Erik Young Senior Vice President, Chief Financial Officer and Director (Duly Authorized Officer and Principal Financial Officer)

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EX-22.1

Exhibit 22.1

PBF Logistics LP
List of Guarantor Subsidiaries
The following subsidiaries of PBF Logistics LP (the “Partnership”) were, as of September 30, 2021, guarantors of the Partnership’s 6.875% Senior Notes due 2023:
Name:	Jurisdiction of Incorporation or Organization:
Delaware City Terminaling Company LLC	Delaware
Toledo Terminaling Company LLC	Delaware
Delaware City Logistics Company LLC	Delaware
Delaware Pipeline Company LLC	Delaware
PBF Logistics Products Terminals LLC	Delaware
PBFX Operating Company LLC	Delaware
Torrance Valley Pipeline Company LLC	Delaware
Paulsboro Natural Gas Pipeline Company LLC	Delaware
Toledo Rail Logistics Company LLC	Delaware
Chalmette Logistics Company LLC	Delaware
Paulsboro Terminaling Company LLC	Delaware
DCR Storage and Loading Company LLC	Delaware
CPI Operations LLC	Delaware
PBFX Ace Holdings LLC	Delaware

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Thomas J. Nimbley, certify that:

1. I have reviewed this quarterly report on Form 10-Q of PBF Logistics LP;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 28, 2021

/s/ Thomas J. Nimbley

Thomas J. Nimbley

Chief Executive Officer

PBF Logistics GP LLC,

the general partner of PBF Logistics LP

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Erik Young, certify that:

1. I have reviewed this quarterly report on Form 10-Q of PBF Logistics LP;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 28, 2021

/s/ Erik Young

Erik Young

Senior Vice President and Chief Financial Officer

PBF Logistics GP LLC,

the general partner of PBF Logistics LP

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of PBF Logistics LP on Form 10-Q for the quarter ended September 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas J. Nimbley, Chief Executive Officer of PBF Logistics GP LLC, the general partner of PBF Logistics LP, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of PBF Logistics LP.

/s/ Thomas J. Nimbley

Thomas J. Nimbley

Chief Executive Officer

PBF Logistics GP LLC,

the general partner of PBF Logistics LP

October 28, 2021

A signed original of the written statement required by Section 906 has been provided to PBF Logistics LP and will be retained by PBF Logistics LP and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of PBF Logistics LP on Form 10-Q for the quarter ended September 30, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Erik Young, Senior Vice President and Chief Financial Officer of PBF Logistics GP LLC, the general partner of PBF Logistics LP, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of PBF Logistics LP.

/s/ Erik Young

Erik Young

Senior Vice President and Chief Financial Officer

PBF Logistics GP LLC,

the general partner of PBF Logistics LP

October 28, 2021

A signed original of the written statement required by Section 906 has been provided to PBF Logistics LP and will be retained by PBF Logistics LP and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Oct. 22, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-36446
Entity Registrant Name	PBF LOGISTICS LP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	35-2470286
Entity Address, Address Line One	One Sylvan Way, Second Floor
Entity Address, City or Town	Parsippany,
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07054
City Area Code	973
Local Phone Number	455-7500
Title of 12(b) Security	Common Units Representing Limited Partner Interests
Trading Symbol	PBFX
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Smaller Reporting Company	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Units, Units Outstanding (in shares)		62,517,137
Entity Central Index Key	0001582568
Amendment Flag	false
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 28,647	$ 36,284
Accounts receivable - affiliates	63,244	53,220
Accounts receivable	6,009	11,382
Prepaids and other current assets	4,383	2,590
Total current assets	102,283	103,476
Property, plant and equipment, net	798,832	820,174
Goodwill	6,332	6,332
Other non-current assets	3,132	3,570
Total assets	910,579	933,552
Current liabilities:
Accounts payable - affiliates	3,962	4,940
Accounts payable	3,887	4,602
Accrued liabilities	26,311	32,224
Deferred revenue	2,741	2,117
Total current liabilities	36,901	43,883
Long-term debt	647,124	720,845
Other long-term liabilities	1,377	1,607
Total liabilities	685,402	766,335
Commitments and contingencies (Note 9)
Equity:
Common unitholders (62,517,137 and 62,364,838 units issued and outstanding, as of September 30, 2021 and December 31, 2020, respectively)	225,177	167,217
Total equity	225,177	167,217
Total liabilities and equity	$ 910,579	$ 933,552

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - Common Units [Member] - shares	Sep. 30, 2021	Dec. 31, 2020
Common units issued (in shares)	62,517,137	62,364,838
Common units outstanding (in shares)	62,517,137	62,364,838

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue:
Affiliate	$ 75,464	$ 70,716	$ 226,504	$ 218,681
Third-party	13,389	18,294	39,692	52,487
Total revenue	88,853	89,010	266,196	271,168
Costs and expenses:
Operating and maintenance expenses	27,265	22,730	77,760	75,385
General and administrative expenses	3,902	4,112	14,592	12,798
Depreciation and amortization	9,787	14,305	28,468	36,821
Impairment expense	0	7,000	0	7,000
Change in contingent consideration	761	(14,765)	2,565	(14,235)
Total costs and expenses	41,715	33,382	123,385	117,769
Income from operations	47,138	55,628	142,811	153,399
Other expense:
Interest expense, net	(10,027)	(10,544)	(30,526)	(33,929)
Amortization of loan fees and debt premium	(423)	(328)	(1,278)	(1,309)
Accretion on discounted liabilities	(6)	(594)	(18)	(1,726)
Net income	$ 36,682	$ 44,162	$ 110,989	$ 116,435
Common Units [Member]
Net income per limited partner unit:
Common units - basic (in dollars per share)	$ 0.58	$ 0.71	$ 1.77	$ 1.87
Common units - diluted (in dollars per share)	$ 0.58	$ 0.71	$ 1.76	$ 1.87
Weighted-average limited partner units outstanding:
Common units - basic (in shares)	62,887,914	62,519,105	62,820,193	62,424,217
Common units - diluted (in shares)	62,997,487	62,529,489	62,934,116	62,429,475

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Cash flows from operating activities:
Net income			$ 110,989	$ 116,435
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	$ 9,787	$ 14,305	28,468	36,821
Impairment expense	0	7,000	0	7,000
Amortization of loan fees and debt premium	423	328	1,278	1,309
Accretion on discounted liabilities	6	594	18	1,726
Unit-based compensation expense			4,658	3,242
Change in contingent consideration			2,565	(14,235)
Changes in operating assets and liabilities:
Accounts receivable - affiliates			(10,024)	(7,846)
Accounts receivable			5,373	(2,059)
Prepaids and other current assets			(1,793)	(565)
Accounts payable - affiliates			(978)	115
Accounts payable			(639)	(5,674)
Accrued liabilities			3,382	7,748
Deferred revenue			624	2,314
Other assets and liabilities			(217)	(4,902)
Net cash provided by operating activities			143,704	141,429
Cash flows from investing activities:
Expenditures for property, plant and equipment			(6,892)	(9,635)
Net cash used in investing activities			(6,892)	(9,635)
Cash flows from financing activities:
Distributions to unitholders			(56,216)	(69,718)
Proceeds from revolving credit facility			0	100,000
Repayment of revolving credit facility			(75,000)	(170,000)
Payment of contingent consideration			(12,176)	0
Deferred financing costs and other			(1,057)	809
Net cash used in financing activities			(144,449)	(138,909)
Net change in cash and cash equivalents			(7,637)	(7,115)
Cash and cash equivalents, beginning of period			36,284	34,966	$ 34,966
Cash and cash equivalents, end of period	$ 28,647	$ 27,851	28,647	27,851	$ 36,284
Supplemental disclosure of non-cash investing and financing activities:
Accrued and unpaid capital expenditures			504	843
Contribution of net assets from PBF LLC			$ 316	$ 0

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DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION

PBF Logistics LP (“PBFX” or the “Partnership”) is a Delaware master 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 30, 2021, owned 99.2% 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 owned 29,953,631 PBFX common units constituting an aggregate of 47.9% limited partner interest in PBFX, with the remaining 52.1% limited partner interest owned by public unitholders as of September 30, 2021.

PBFX engages in the processing of crude oil and the receiving, handling, storage and transferring of crude oil, refined products, natural gas and intermediates. The Partnership generally 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, and, as a result, the Partnership continues to generate a substantial majority of its revenue from transactions with PBF Holding. Additionally, certain of PBFX’s assets generate revenue from third-party transactions.

Principles of Combination and Consolidation and Basis of Presentation

In connection with, and subsequent to, PBFX’s initial public offering (“IPO”), the Partnership has acquired certain assets from PBF LLC (collectively referred to as the “Contributed Assets”). Such acquisitions completed subsequent to the IPO were made through a series of dropdown transactions with PBF LLC (collectively referred to as the “Acquisitions from 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. The accompanying condensed consolidated financial statements and related notes present solely the consolidated financial position and consolidated financial results of PBFX. Refer to the Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”) for additional information regarding the Acquisitions from PBF and the agreements that were entered into or amended with related parties in connection with these acquisitions.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, these unaudited condensed consolidated financial statements 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, results of operations and cash flows of PBFX for the periods presented. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the full year.

The Predecessor generally did not operate its respective assets for the purpose of generating revenue independent of other PBF Energy businesses prior to the IPO or the effective dates of the Acquisitions from PBF. All intercompany accounts and transactions have been eliminated.

Recently Issued Accounting PronouncementsIn March 2020, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying GAAP to contracts, hedging relationships and other transactions affected by the expected market transition from London Interbank Offering Rate (“LIBOR”) and other interbank rates if certain criteria are met. The amendments in ASU 2020-04 are effective for all entities at any time beginning on March 12, 2020 through December 31, 2022 and may be applied from the beginning of an interim period that includes the issuance date of ASU 2020-04. The Partnership does not expect that the adoption of this guidance will have a material impact on its condensed consolidated financial statements and related disclosures.

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REVENUE

9 Months Ended

Sep. 30, 2021

Revenues [Abstract]

REVENUE

2. REVENUE

Revenue Recognition

In accordance with FASB Accounting Standards Codification Topic 606 “Revenue from Contracts with Customers,” revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration to which the Partnership expects to be entitled in exchange for those goods or services.

As disclosed in Note 11 “Segment Information” of the Notes to Condensed Consolidated Financial Statements, the Partnership’s business consists of two reportable segments: (i) Transportation and Terminaling and (ii) Storage.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Transportation and Terminaling Segment
Terminaling	$	37,628	$	35,468	$	114,849	$	108,196
Pipeline	20,980		19,974		62,667		60,732
Other	11,110		11,550		34,387		35,016
Total	69,718		66,992		211,903		203,944
Storage Segment
Storage	14,550		13,815		42,443		41,366
Other	4,585		8,203		11,850		25,858
Total	19,135		22,018		54,293		67,224
Total Revenue	$	88,853	$	89,010	$	266,196	$	271,168

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

Minimum Volume Commitments

Transportation and Terminaling Segment

The Partnership’s Transportation and Terminaling segment consists of product terminals, pipelines, crude unloading facilities and other facilities capable of transporting and handling crude oil, refined products and natural gas. Certain of the affiliate and third-party Transportation and Terminaling 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 an amount equal to the difference in actual volumes transported and/or throughput and the minimum volumes required under the agreement multiplied by the applicable contractual rate (each a “deficiency payment”). Deficiency payments are initially recorded as deferred revenue on 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 deficiency payment amounts as a credit against volumes throughput in excess of its MVC, as applicable, during subsequent quarters under the terms of the applicable agreement. The Partnership recognizes operating revenue for the deficiency payments when credits are used for volumes transported in excess of MVCs or at the end of the contractual period. Unused credits determined to have a remote chance of being utilized by customers in the future are recognized as operating revenue in the period when that determination is made. The use or recognition of the credits is recorded as a reduction to deferred revenue.

Storage Segment

The Partnership earns storage revenue under crude oil and refined products storage contracts. In addition, the Partnership earns storage revenue under its processing agreement at its East Coast storage facility. Certain of these affiliate and third-party contracts contain capacity reservation agreements, under which 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.

MVC Payments to be Received

As of September 30, 2021, MVC payments to be received, based on future performance obligations of the Partnership, related to noncancellable commercial terminaling, pipeline and storage agreements were as follows:

Remainder of 2021	$	30,021
2022	92,567
2023	89,204
2024	87,175
2025	86,937
Thereafter	—
Total MVC payments to be received (1)(2)	$	385,904

(1) All fixed consideration from contracts with customers is included in the amounts presented above. Variable consideration that is constrained or not required to be estimated is excluded.

(2) Arrangements deemed leases are excluded from this table.

Leases

Lessor Disclosures

The Partnership has leased certain of its assets under lease agreements with varying terms up to fifteen years, including leases of storage, terminaling, pipeline and processing assets. Certain of these leases include options to extend or renew the lease for one or more years. These options are included in the lease term when it is reasonably certain that the option will be exercised. The Partnership’s lease agreements generally do not provide an option for the lessee to purchase the leased equipment at the end of the lease term. However, in connection with the affiliate lease agreement for the interstate natural gas pipeline at PBF Holding’s Paulsboro Refinery (the “Paulsboro Natural Gas Pipeline”), the Partnership granted a right of first refusal in favor of PBF LLC such that the Partnership would be required to give PBF Holding the first opportunity to purchase the Paulsboro Natural Gas Pipeline at market value prior to selling to an unrelated third party.

At inception, the Partnership determines if an arrangement contains a lease and whether that lease meets the classification criteria of a finance or operating lease. As of September 30, 2021, all of the Partnership’s leases have been determined to be operating leases. Some of the Partnership’s lease arrangements contain lease components (e.g., MVCs) and non-lease components (e.g., maintenance, labor charges, etc.). The Partnership accounts for the lease and non-lease components as a single lease component for every asset class.

Certain of the Partnership’s lease agreements include MVCs that are adjusted periodically based on a specified index or rate. The leases are initially measured using the projected payments adjusted for the index or rate in effect at the commencement date. The Partnership’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Partnership expects to derive significant future benefits from its leased assets following the end of the lease term, as the remaining useful life would be sufficient to allow the Partnership to enter into new leases for such assets.

In the normal course of business, the Partnership enters into contracts with PBF Holding and its refineries whereby PBF Holding and its refineries lease certain of the Partnership’s storage, terminaling and pipeline assets. The Partnership believes the terms and conditions under these leases are generally no less favorable to either party than those that could have been negotiated with unaffiliated parties with respect to similar services. The terms of these affiliate leases range from one to fifteen years. Leases with affiliates represent approximately 96% of the undiscounted contractual future rental income from the Partnership’s leased assets.

The table below quantifies lease revenue for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Affiliate	$	38,305	$	36,212	$	112,275	$	112,600
Third-party	9,508		13,449		26,303		40,173
Total lease revenue	$	47,813	$	49,661	$	138,578	$	152,773

Undiscounted Cash Flows

The table below presents the fixed component of the undiscounted cash flows to be received for each of the periods presented for the Partnership’s operating leases with customers as of September 30, 2021:

Remainder of 2021	$	36,059
2022	134,791
2023	133,090
2024	131,874
2025	105,186
Thereafter	128,339
Total undiscounted cash flows to be received	$	669,339

Assets Under Lease

The Partnership’s assets that are subject to lease are included in “Property, plant and equipment, net” within the Partnership’s condensed consolidated balance sheets. The table below quantifies, by category within property, plant and equipment, the assets that are subject to lease as of September 30, 2021 and December 31, 2020:

	September 30, 2021		December 31, 2020
Land	$	98,337	$	98,337
Pipelines	321,998		321,254
Terminals and equipment	83,387		83,387
Storage facilities and processing units	182,819		182,600
	686,541		685,578
Accumulated depreciation	(127,853)		(109,153)
Net assets subject to lease	$	558,688	$	576,425

Deferred Revenue

The Partnership records deferred revenue when cash payments are received or due in advance of performance, including amounts which are refundable. Deferred revenue was $2,741 and $2,117 as of September 30, 2021 and December 31, 2020, respectively. The increase in the deferred revenue balance as of September 30, 2021 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 the 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.

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CURRENT EXPECTED CREDIT LOSSES

9 Months Ended

Sep. 30, 2021

Credit Loss [Abstract]

CURRENT EXPECTED CREDIT LOSSES

CURRENT EXPECTED CREDIT LOSSES

Credit Losses

The Partnership has exposure to credit losses through its collection of fees charged to customers for terminaling, pipeline, storage and processing services. The Partnership evaluates creditworthiness on an individual customer basis. The Partnership utilizes a financial review model for purposes of evaluating creditworthiness, which is based on information from financial statements and credit reports. The financial review model enables the Partnership to assess the customer’s risk profile and determine credit limits on the basis of their financial strength, including but not limited to, their liquidity, leverage, debt serviceability, longevity and how they pay their bills. The Partnership may require security in the form of letters of credit or cash payments in advance of product and services delivery for certain customers that are deemed higher risk. Additionally, the Partnership may hold customers’ product in storage at its facilities as collateral and/or deny access to its facilities, as allowable under commercial law or its contractual agreements, should payment not be received.

The Partnership reviews each customer’s credit risk profile at least annually, or more frequently if warranted. Following the widespread market disruption that has resulted from the coronavirus disease 2019 (“COVID-19”) pandemic and related governmental and consumer responses, the Partnership has been performing ongoing credit reviews of its customers including monitoring for any negative credit events such as customer bankruptcy or insolvency events. Based on its credit assessments, the Partnership may adjust payment terms or limit available trade credit for customers, and customers within certain industries, which are deemed to be at a higher risk.

The Partnership performs a quarterly allowance for doubtful accounts analysis to assess whether an allowance needs to be recorded for any outstanding trade receivables. In estimating credit losses, management reviews accounts that are past due, have known disputes or have experienced any negative credit events that may result in future collectability issues. There was no allowance for doubtful accounts recorded as of September 30, 2021 or December 31, 2020.

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PROPERTY, PLANT AND EQUIPMENT, NET

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT, NET

PROPERTY, PLANT AND EQUIPMENT, NET

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

	September 30, 2021		December 31, 2020
Land	$	115,957	$	115,957
Pipelines	346,072		345,328
Terminals and equipment	324,908		319,861
Storage facilities and processing units	202,007		200,662
Construction in progress	2,697		3,761
	991,641		985,569
Accumulated depreciation	(192,809)		(165,395)
Property, plant and equipment, net	$	798,832	$	820,174

Depreciation expense was $28,092 and $31,065 for the nine months ended September 30, 2021 and 2020, respectively.

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GOODWILL AND INTANGIBLES

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLES

GOODWILL AND INTANGIBLES

The Partnership performed its annual goodwill impairment assessment as of July 1, 2021 and determined that the carrying value of goodwill was not impaired. As of September 30, 2021, the carrying amount of goodwill was $6,332, all of which was recorded within the Transportation and Terminaling segment.

The Partnership’s net intangibles consisted of the following:

	September 30, 2021		December 31, 2020
Customer contracts	$	9,300	$	9,300
Customer relationships	5,900		5,900
	15,200		15,200
Accumulated amortization	(12,272)		(11,896)
Total intangibles, net (1)	$	2,928	$	3,304

(1) Total intangibles, net are included in “Other non-current assets” within the Partnership’s condensed consolidated balance sheets.

Amortization expense was $376 and $5,756 for the nine months ended September 30, 2021 and 2020, respectively.

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DEBT

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

DEBT

DEBT

Total debt was comprised of the following:

	September 30, 2021		December 31, 2020
2023 Notes	$	525,000	$	525,000
Revolving Credit Facility (1)(2)	125,000		200,000
Total debt outstanding	650,000		725,000
Unamortized debt issuance costs	(3,975)		(5,754)
Unamortized 2023 Notes premium	1,099		1,599
Net carrying value of debt	$	647,124	$	720,845

___________________

(1)PBFX had $4,008 of outstanding letters of credit and $370,992 available under its $500,000 amended and restated revolving credit facility with Wells Fargo Bank, National Association, as administrative agent and a syndicate of lenders (as amended, the “Revolving Credit Facility”) as of September 30, 2021.

(2)During the nine months ended September 30, 2021, PBFX made net repayments of $75,000 under the 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 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 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.

The estimated fair value of the Revolving Credit Facility approximates its carrying value, categorized as a Level 2 measurement, as this borrowing bears interest based on short-term floating market interest rates. The estimated fair value of the Partnership’s 6.875% Senior Notes due 2023 (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 2023 Notes and was approximately $511,442 and $503,025 at September 30, 2021 and December 31, 2020, 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 $650,000 and $636,442 as of September 30, 2021, respectively, and $725,000 and $703,025 as of December 31, 2020, respectively.

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EQUITY

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

EQUITY

EQUITY

PBFX had 32,563,506 outstanding common units held by the public as of September 30, 2021. PBF LLC owns 29,953,631 PBFX common units constituting an aggregate of 47.9% of PBFX’s limited partner interest as of September 30, 2021.

Unit Activity

The partnership agreement authorizes PBFX to issue an unlimited number of additional partnership interests for the consideration of, 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 tables present changes in PBFX common units outstanding:

	Three Months Ended September 30, 2021
	2021	2020
Balance at beginning of period	62,510,376	62,349,592
Vesting of phantom units, net of forfeitures	6,761	10,932
Balance at end of period	62,517,137	62,360,524

	Nine Months Ended September 30, 2021
	2021	2020
Balance at beginning of period	62,364,838	62,130,035
Vesting of phantom units, net of forfeitures	152,299	230,489
Balance at end of period	62,517,137	62,360,524

Additionally, 325,384 of the Partnership’s phantom units issued under the PBFX 2014 Long-Term Incentive Plan 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 year ended December 31, 2020.

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. 

Equity Activity

The following tables summarize the changes in the carrying amount of the Partnership’s equity during the nine months ended September 30, 2021 and 2020:

	Common Units
Balance at December 31, 2020	$	167,217
Quarterly distributions to unitholders ($0.30 per unit)	(18,926)
Net income attributable to the partners	37,211
Unit-based compensation expense	989
Other	15
Balance at March 31, 2021	$	186,506
Quarterly distributions to unitholders ($0.30 per unit)	(19,023)
Net income attributable to the partners	37,096
Unit-based compensation expense	2,834
Other	(696)
Balance at June 30, 2021	$	206,717
Quarterly distributions to unitholders ($0.30 per unit)	(19,012)
Net income attributable to the partners	36,682
Unit-based compensation expense	835
Other	(45)
Balance at September 30, 2021	$	225,177

	Common Units
Balance at December 31, 2019	$	105,083
Quarterly distributions to unitholders ($0.52 per unit)	(32,703)
Net income attributable to the partners	34,813
Unit-based compensation expense (1)	1,302
Other	(6)
Balance at March 31, 2020	$	108,489
Quarterly distributions to unitholders ($0.30 per unit)	(18,843)
Net income attributable to the partners	37,460
Unit-based compensation expense	945
Other	(805)
Balance at June 30, 2020	$	127,246
Quarterly distributions to unitholders ($0.30 per unit)	(18,847)
Net income attributable to the partners	44,162
Unit-based compensation expense	995
Balance at September 30, 2020	$	153,556

(1) Inclusive of $201 of expense associated with the accelerated vesting of phantom units in March 2020 for nonretirement eligible employees in accordance with their grant agreements.

Cash Distributions

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

During the nine months ended September 30, 2021, PBFX made distribution payments as follows:

Related Earnings Period:	Q4 2020		Q1 2021		Q2 2021
Distribution date	March 17, 2021		May 27, 2021		August 26, 2021
Record date	February 25, 2021		May 13, 2021		August 12, 2021
Per unit	$	0.30	$	0.30	$	0.30
To public common unitholders	$	9,724	$	9,766	$	9,769
To PBF LLC	$	8,986	$	8,986	$	8,986
Total distribution	$	18,710	$	18,752	$	18,755

The quarterly distributions to limited partners for the three and nine months ended September 30, 2021 and 2020 are shown in the table below. The Partnership’s distributions are declared subsequent to quarter end (distributions of $0.30 per unit were declared for each of the three-month periods ended September 30, 2021 and 2020, distributions of $0.30 per unit were declared for each of the three-month periods ended June 30, 2021 and 2020, and distributions of $0.30 per unit were declared for each of the three-month periods ended March 31, 2021 and 2020); therefore, the table represents total estimated distributions applicable to the period in which the distributions were earned:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Limited partners’ distributions:
Common	$	19,015	$	18,848	$	57,060	$	56,541
Total distributions	$	19,015	$	18,848	$	57,060	$	56,541
Total cash distributions (1)	$	18,771	$	18,708	$	56,278	$	56,119

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

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NET INCOME PER UNIT

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

NET INCOME PER UNIT

NET INCOME PER UNIT

Earnings in excess of distributions are allocated to the limited partners based on their respective ownership 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 effect of potentially dilutive units of PBFX’s common units that consist of unvested phantom units. There were 314,128 and 119,128 anti-dilutive phantom units for the three and nine months ended September 30, 2021, compared to 273,232 and 285,515 anti-dilutive phantom units for the three and nine months ended September 30, 2020.

The following table shows the calculation of net income per limited partner unit:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income attributable to the partners:
Distributions declared	$	19,015	$	18,848	$	57,060	$	56,541
Earnings less distributions	17,667		25,314		53,929		59,894
Net income attributable to the partners	$	36,682	$	44,162	$	110,989	$	116,435
Weighted-average units outstanding - basic	62,887,914		62,519,105		62,820,193		62,424,217
Weighted-average units outstanding - diluted	62,997,487		62,529,489		62,934,116		62,429,475
Net income per limited partner unit - basic	$	0.58	$	0.71	$	1.77	$	1.87
Net income per limited partner unit - diluted	0.58		0.71		1.76		1.87

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

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 (including in response to the potential impacts of climate change), 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.

PBFX recorded a total liability related to environmental remediation obligations at certain of its assets of $1,769 and $1,760 as of September 30, 2021 and December 31, 2020, respectively, related to existing environmental liabilities.

During the first quarter of 2019, the Partnership notified certain agencies of an oil sheen present in the Schuylkill River near one of its facilities. Clean-up, identification and mitigation of the source were immediately initiated. The Pennsylvania Department of Environmental Protection (“PADEP”) approved the Site Characterization Report submitted by the Partnership. A Remedial Action Plan was submitted to the PADEP in October 2020. The PADEP approved the Remedial Action Plan in January 2021, and the response activities are substantially complete. Future remediation costs and any potential penalties are currently not expected to be material to the Partnership.

Contingent Consideration

In connection with the Partnership’s acquisition of CPI Operations LLC from Crown Point International LLC (“Crown Point”) in October 2018, the purchase and sale agreement between the Partnership and Crown Point included an earn-out provision related to an existing commercial agreement with a third party, based on the future results of certain acquired idled assets (the “Contingent Consideration”). The Partnership and Crown Point agreed to share equally in the future operating profits of the restarted assets, as defined in the purchase and sale agreement, over a contractual term of up to three years starting in 2019. The Contingent Consideration recorded was $2,508 and $12,120 as of September 30, 2021 and December 31, 2020, respectively. The Contingent Consideration is included in “Accrued liabilities” within the Partnership’s condensed consolidated balance sheets.

The Contingent Consideration is categorized in Level 3 of the fair value hierarchy and is estimated using a discounted cash flow model based on management’s estimate of the future cash flows associated with the recommenced idled assets. The changes in fair value of the obligation during the three and nine months ended September 30, 2021 and 2020 were impacted primarily due to the changes in the estimated future cash flows of the assets, accretion on the discounted liability and settlement payments made by the Partnership.

Pursuant to the terms of the commercial agreement, the counterparty exercised its right to terminate the contract at the conclusion of the initial contract year, resulting in an adjustment in the fair value of the Contingent Consideration for the year ended December 31, 2020 of $16,429, reflecting the elimination of the estimated earn-out for years two and three of the performance period. Subsequent to the contract termination, the counterparty and the Partnership agreed to multiple extension agreements for certain of the originally contracted services on a limited basis through the third quarter of 2021. The operating profits resulting from the contract extension remain subject to the earn-out provision between the Partnership and Crown Point. As of the date of this Form 10-Q, the services with the counterparty have ceased. Any future agreements entered into related to the restarted processing unit assets could result in earn-out obligations for the Partnership during the three-year contractual period.

The following table summarizes the changes in fair value of the Contingent Consideration for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Balance at beginning of period	$	1,748	$	27,899	$	12,120	$	26,086
Accretion on discounted liabilities	—		587		—		1,706
Settlements	—		—		(12,176)		—
Unrealized charge (gain) included in earnings	760		(14,766)		2,564		(14,072)
Balance at end of period	$	2,508	$	13,720	$	2,508	$	13,720

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RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

Agreements with PBF Energy Entities

Commercial Agreements

PBFX currently derives a majority of its revenue from long-term, fee-based agreements with PBF Holding, which generally include MVCs and 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 and the Services Agreement (each 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. 

Refer to the 2020 Form 10-K for a more complete description of PBFX’s commercial agreements with PBF Holding, including those identified as leases, which were entered into prior to 2021. No new agreements or amendments were entered into during the nine months ended September 30, 2021.

Other Agreements

In addition to the commercial agreements described above, 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”). This 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.

Additionally, PBFX has entered into an operation and management services and secondment agreement with PBF Holding and certain of its subsidiaries (as amended, 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 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. The Services Agreement will terminate upon the termination of the Omnibus Agreement, provided that the Partnership may terminate any service upon 30-days’ notice.

Refer to the 2020 Form 10-K for a more complete description of the Omnibus Agreement and the Services Agreement.

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,
	2021		2020		2021		2020
Revenue	$	75,464	$	70,716	$	226,504	$	218,681
Operating and maintenance expenses	2,171		2,171		6,512		6,512
General and administrative expenses	1,816		1,895		5,531		5,843

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SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Partnership’s operations are comprised of 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 2020 Form 10-K.

The Partnership’s operating segments are organized into two reportable segments: (i) Transportation and Terminaling and (ii) Storage. Operations that are not included in either the Transportation and Terminaling or the Storage segments are included in Corporate. The Partnership does not have any foreign operations.

The Partnership’s Transportation and Terminaling segment consists of operating segments that include product terminals, pipelines, crude unloading facilities and other facilities capable of transporting and handling crude oil, refined products and natural gas. The Partnership’s Storage segment consists of operating segments that include storage and other facilities capable of processing crude oil and handling crude oil, refined products and intermediates.

Revenue is generated from third-party transactions as well as commercial agreements entered into with PBF Holding under which the Partnership receives fees for transportation, terminaling, storage and processing services. The commercial agreements with PBF Holding are described in Note 10 “Related Party Transactions” of the Notes to Condensed Consolidated Financial Statements. Certain general and administrative expenses and interest and financing costs are included in Corporate as they are not directly attributable to a specific reporting segment. Identifiable assets are those used by the operating segments, whereas assets included in Corporate are principally cash, deposits and other assets that are not associated with operations.

	Three Months Ended September 30, 2021
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total revenue	$	69,718	$	19,135	$	—	$	88,853
Depreciation and amortization	7,613		2,174		—		9,787
Income (loss) from operations	42,744		8,296		(3,902)		47,138
Other expense	—		—		10,456		10,456
Capital expenditures	3,281		102		—		3,383

	Three Months Ended September 30, 2020
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total revenue	$	66,992	$	22,018	$	—	$	89,010
Depreciation and amortization	7,010		7,295		—		14,305
Income (loss) from operations	43,377		16,363		(4,112)		55,628
Other expense	—		—		11,466		11,466
Capital expenditures	1,438		325		—		1,763

	Nine Months Ended September 30, 2021
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total revenue	$	211,903	$	54,293	$	—	$	266,196
Depreciation and amortization	21,953		6,515		—		28,468
Income (loss) from operations	134,801		22,602		(14,592)		142,811
Other expense	—		—		31,822		31,822
Capital expenditures	6,590		302		—		6,892

	Nine Months Ended September 30, 2020
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total revenue	$	203,944	$	67,224	$	—	$	271,168
Depreciation and amortization	21,105		15,716		—		36,821
Income (loss) from operations	127,557		38,640		(12,798)		153,399
Other expense	—		—		36,964		36,964
Capital expenditures	6,469		3,166		—		9,635

	Balance at September 30, 2021
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total assets	$	686,222	$	195,058	$	29,299	$	910,579

	Balance at December 31, 2020
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total assets	$	715,308	$	200,130	$	18,114	$	933,552

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SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2021

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Cash Distribution

On October 28, 2021, PBF GP’s board of directors announced a cash distribution, based on the results of the third quarter of 2021, of $0.30 per unit. The distribution is payable on November 30, 2021 to PBFX unitholders of record at the close of business on November 12, 2021.

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DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Issued Accounting Pronouncements	Recently Issued Accounting PronouncementsIn March 2020, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional guidance to alleviate the burden in accounting for reference rate reform by allowing certain expedients and exceptions in applying GAAP to contracts, hedging relationships and other transactions affected by the expected market transition from London Interbank Offering Rate (“LIBOR”) and other interbank rates if certain criteria are met. The amendments in ASU 2020-04 are effective for all entities at any time beginning on March 12, 2020 through December 31, 2022 and may be applied from the beginning of an interim period that includes the issuance date of ASU 2020-04. The Partnership does not expect that the adoption of this guidance will have a material impact on its condensed consolidated financial statements and related disclosures.

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REVENUE (Tables)

9 Months Ended

Sep. 30, 2021

Revenues [Abstract]

Revenue from External Customers by Products and Services [Table Text Block]

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Transportation and Terminaling Segment
Terminaling	$	37,628	$	35,468	$	114,849	$	108,196
Pipeline	20,980		19,974		62,667		60,732
Other	11,110		11,550		34,387		35,016
Total	69,718		66,992		211,903		203,944
Storage Segment
Storage	14,550		13,815		42,443		41,366
Other	4,585		8,203		11,850		25,858
Total	19,135		22,018		54,293		67,224
Total Revenue	$	88,853	$	89,010	$	266,196	$	271,168

Schedule of Future Minimum Volume Commitments to be received [Table Text Block]

As of September 30, 2021, MVC payments to be received, based on future performance obligations of the Partnership, related to noncancellable commercial terminaling, pipeline and storage agreements were as follows:

Remainder of 2021	$	30,021
2022	92,567
2023	89,204
2024	87,175
2025	86,937
Thereafter	—
Total MVC payments to be received (1)(2)	$	385,904

(1) All fixed consideration from contracts with customers is included in the amounts presented above. Variable consideration that is constrained or not required to be estimated is excluded.

(2) Arrangements deemed leases are excluded from this table.

Operating Lease, Lease Income [Table Text Block]

The table below quantifies lease revenue for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Affiliate	$	38,305	$	36,212	$	112,275	$	112,600
Third-party	9,508		13,449		26,303		40,173
Total lease revenue	$	47,813	$	49,661	$	138,578	$	152,773

Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block]

The table below presents the fixed component of the undiscounted cash flows to be received for each of the periods presented for the Partnership’s operating leases with customers as of September 30, 2021:

Remainder of 2021	$	36,059
2022	134,791
2023	133,090
2024	131,874
2025	105,186
Thereafter	128,339
Total undiscounted cash flows to be received	$	669,339

Assets Under Lease [Table Text Block]

The table below quantifies, by category within property, plant and equipment, the assets that are subject to lease as of September 30, 2021 and December 31, 2020:

	September 30, 2021		December 31, 2020
Land	$	98,337	$	98,337
Pipelines	321,998		321,254
Terminals and equipment	83,387		83,387
Storage facilities and processing units	182,819		182,600
	686,541		685,578
Accumulated depreciation	(127,853)		(109,153)
Net assets subject to lease	$	558,688	$	576,425

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PROPERTY, PLANT AND EQUIPMENT, NET (Tables)

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Schedule of property, plant and equipment

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

	September 30, 2021		December 31, 2020
Land	$	115,957	$	115,957
Pipelines	346,072		345,328
Terminals and equipment	324,908		319,861
Storage facilities and processing units	202,007		200,662
Construction in progress	2,697		3,761
	991,641		985,569
Accumulated depreciation	(192,809)		(165,395)
Property, plant and equipment, net	$	798,832	$	820,174

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GOODWILL AND INTANGIBLES (Tables)

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of net intangible assets

The Partnership’s net intangibles consisted of the following:

	September 30, 2021		December 31, 2020
Customer contracts	$	9,300	$	9,300
Customer relationships	5,900		5,900
	15,200		15,200
Accumulated amortization	(12,272)		(11,896)
Total intangibles, net (1)	$	2,928	$	3,304

(1) Total intangibles, net are included in “Other non-current assets” within the Partnership’s condensed consolidated balance sheets.

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DEBT (Tables)

9 Months Ended

Sep. 30, 2021

Debt Disclosure [Abstract]

Schedule of long-term debt

Total debt was comprised of the following:

	September 30, 2021		December 31, 2020
2023 Notes	$	525,000	$	525,000
Revolving Credit Facility (1)(2)	125,000		200,000
Total debt outstanding	650,000		725,000
Unamortized debt issuance costs	(3,975)		(5,754)
Unamortized 2023 Notes premium	1,099		1,599
Net carrying value of debt	$	647,124	$	720,845

___________________

(1)PBFX had $4,008 of outstanding letters of credit and $370,992 available under its $500,000 amended and restated revolving credit facility with Wells Fargo Bank, National Association, as administrative agent and a syndicate of lenders (as amended, the “Revolving Credit Facility”) as of September 30, 2021.

(2)During the nine months ended September 30, 2021, PBFX made net repayments of $75,000 under the Revolving Credit Facility.

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EQUITY (Tables)

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Schedule of Stock by Class [Table Text Block]

The following tables present changes in PBFX common units outstanding:

	Three Months Ended September 30, 2021
	2021	2020
Balance at beginning of period	62,510,376	62,349,592
Vesting of phantom units, net of forfeitures	6,761	10,932
Balance at end of period	62,517,137	62,360,524

	Nine Months Ended September 30, 2021
	2021	2020
Balance at beginning of period	62,364,838	62,130,035
Vesting of phantom units, net of forfeitures	152,299	230,489
Balance at end of period	62,517,137	62,360,524

Schedule of Stockholders Equity

The following tables summarize the changes in the carrying amount of the Partnership’s equity during the nine months ended September 30, 2021 and 2020:

	Common Units
Balance at December 31, 2020	$	167,217
Quarterly distributions to unitholders ($0.30 per unit)	(18,926)
Net income attributable to the partners	37,211
Unit-based compensation expense	989
Other	15
Balance at March 31, 2021	$	186,506
Quarterly distributions to unitholders ($0.30 per unit)	(19,023)
Net income attributable to the partners	37,096
Unit-based compensation expense	2,834
Other	(696)
Balance at June 30, 2021	$	206,717
Quarterly distributions to unitholders ($0.30 per unit)	(19,012)
Net income attributable to the partners	36,682
Unit-based compensation expense	835
Other	(45)
Balance at September 30, 2021	$	225,177

	Common Units
Balance at December 31, 2019	$	105,083
Quarterly distributions to unitholders ($0.52 per unit)	(32,703)
Net income attributable to the partners	34,813
Unit-based compensation expense (1)	1,302
Other	(6)
Balance at March 31, 2020	$	108,489
Quarterly distributions to unitholders ($0.30 per unit)	(18,843)
Net income attributable to the partners	37,460
Unit-based compensation expense	945
Other	(805)
Balance at June 30, 2020	$	127,246
Quarterly distributions to unitholders ($0.30 per unit)	(18,847)
Net income attributable to the partners	44,162
Unit-based compensation expense	995
Balance at September 30, 2020	$	153,556

(1) Inclusive of $201 of expense associated with the accelerated vesting of phantom units in March 2020 for nonretirement eligible employees in accordance with their grant agreements.

Distributions Made to Limited Partner, by Distribution [Table Text Block]

During the nine months ended September 30, 2021, PBFX made distribution payments as follows:

Related Earnings Period:	Q4 2020		Q1 2021		Q2 2021
Distribution date	March 17, 2021		May 27, 2021		August 26, 2021
Record date	February 25, 2021		May 13, 2021		August 12, 2021
Per unit	$	0.30	$	0.30	$	0.30
To public common unitholders	$	9,724	$	9,766	$	9,769
To PBF LLC	$	8,986	$	8,986	$	8,986
Total distribution	$	18,710	$	18,752	$	18,755

Distributions Made to Unitholders

The quarterly distributions to limited partners for the three and nine months ended September 30, 2021 and 2020 are shown in the table below. The Partnership’s distributions are declared subsequent to quarter end (distributions of $0.30 per unit were declared for each of the three-month periods ended September 30, 2021 and 2020, distributions of $0.30 per unit were declared for each of the three-month periods ended June 30, 2021 and 2020, and distributions of $0.30 per unit were declared for each of the three-month periods ended March 31, 2021 and 2020); therefore, the table represents total estimated distributions applicable to the period in which the distributions were earned:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Limited partners’ distributions:
Common	$	19,015	$	18,848	$	57,060	$	56,541
Total distributions	$	19,015	$	18,848	$	57,060	$	56,541
Total cash distributions (1)	$	18,771	$	18,708	$	56,278	$	56,119

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

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NET INCOME PER UNIT (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share [Abstract]

Summary of calculation of net income per unit

The following table shows the calculation of net income per limited partner unit:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net income attributable to the partners:
Distributions declared	$	19,015	$	18,848	$	57,060	$	56,541
Earnings less distributions	17,667		25,314		53,929		59,894
Net income attributable to the partners	$	36,682	$	44,162	$	110,989	$	116,435
Weighted-average units outstanding - basic	62,887,914		62,519,105		62,820,193		62,424,217
Weighted-average units outstanding - diluted	62,997,487		62,529,489		62,934,116		62,429,475
Net income per limited partner unit - basic	$	0.58	$	0.71	$	1.77	$	1.87
Net income per limited partner unit - diluted	0.58		0.71		1.76		1.87

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COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table summarizes the changes in fair value of the Contingent Consideration for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Balance at beginning of period	$	1,748	$	27,899	$	12,120	$	26,086
Accretion on discounted liabilities	—		587		—		1,706
Settlements	—		—		(12,176)		—
Unrealized charge (gain) included in earnings	760		(14,766)		2,564		(14,072)
Balance at end of period	$	2,508	$	13,720	$	2,508	$	13,720

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RELATED PARTY TRANSACTIONS - SUMMARY OF TRANSACTIONS (Tables)

9 Months Ended

Sep. 30, 2021

Related Party Transactions [Abstract]

Schedule of related party 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,
	2021		2020		2021		2020
Revenue	$	75,464	$	70,716	$	226,504	$	218,681
Operating and maintenance expenses	2,171		2,171		6,512		6,512
General and administrative expenses	1,816		1,895		5,531		5,843

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SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Schedule of segment reporting

	Three Months Ended September 30, 2021
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total revenue	$	69,718	$	19,135	$	—	$	88,853
Depreciation and amortization	7,613		2,174		—		9,787
Income (loss) from operations	42,744		8,296		(3,902)		47,138
Other expense	—		—		10,456		10,456
Capital expenditures	3,281		102		—		3,383

	Three Months Ended September 30, 2020
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total revenue	$	66,992	$	22,018	$	—	$	89,010
Depreciation and amortization	7,010		7,295		—		14,305
Income (loss) from operations	43,377		16,363		(4,112)		55,628
Other expense	—		—		11,466		11,466
Capital expenditures	1,438		325		—		1,763

	Nine Months Ended September 30, 2021
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total revenue	$	211,903	$	54,293	$	—	$	266,196
Depreciation and amortization	21,953		6,515		—		28,468
Income (loss) from operations	134,801		22,602		(14,592)		142,811
Other expense	—		—		31,822		31,822
Capital expenditures	6,590		302		—		6,892

	Nine Months Ended September 30, 2020
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total revenue	$	203,944	$	67,224	$	—	$	271,168
Depreciation and amortization	21,105		15,716		—		36,821
Income (loss) from operations	127,557		38,640		(12,798)		153,399
Other expense	—		—		36,964		36,964
Capital expenditures	6,469		3,166		—		9,635

	Balance at September 30, 2021
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total assets	$	686,222	$	195,058	$	29,299	$	910,579

	Balance at December 31, 2020
	Transportation and Terminaling		Storage		Corporate		Consolidated Total
Total assets	$	715,308	$	200,130	$	18,114	$	933,552

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DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details)	Sep. 30, 2021 shares
PBF Energy [Member] | PBF LLC [Member]
Limited Partners' Capital Account [Line Items]
Percentage of total economic interest	99.20%
Limited Partner, Affiliate [Member] | PBF LLC [Member]
Limited Partners' Capital Account [Line Items]
Limited partner interest percentage	47.90%
Limited Partner, Public [Member]
Limited Partners' Capital Account [Line Items]
Limited partner interest percentage	52.10%
Common Units [Member] | Limited Partner, Affiliate [Member] | PBF LLC [Member]
Limited Partners' Capital Account [Line Items]
Units owned (in shares)	29,953,631

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REVENUE (Details) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Number of Operating Segments | segment				2
Total revenue		$ 88,853	$ 89,010	$ 266,196	$ 271,168
Remainder of 2021		30,021		30,021
2022		92,567		92,567
2023		89,204		89,204
2024		87,175		87,175
2025		86,937		86,937
Thereafter		0		0
Total MVC payments to be received	[1],[2]	$ 385,904		$ 385,904
Lessor, lease term (up to)		15 years		15 years
Lessor, lease term, option to extend or renew (or more)		1 year		1 year
Percentage of Total Undiscounted Future Rental Income from Leased Assets Represented by Affiliated Leases		96.00%		96.00%
Total lease revenue		$ 47,813	49,661	$ 138,578	152,773
Remainder of 2021		36,059		36,059
2022		134,791		134,791
2023		133,090		133,090
2024		131,874		131,874
2025		105,186		105,186
Thereafter		128,339		128,339
Total undiscounted cash flows to be received		669,339		669,339
Gross PP&E Assets Under Lease		991,641		991,641		$ 985,569
Accumulated depreciation		(192,809)		(192,809)		(165,395)
Net assets subject to lease		798,832		798,832		820,174
Deferred revenue		2,741		2,741		2,117
Transportation And Terminaling Segment [Member]
Total revenue		69,718	66,992	211,903	203,944
Storage
Total revenue		19,135	22,018	54,293	67,224
Property Subject to Operating Lease [Member]
Gross PP&E Assets Under Lease		686,541		686,541		685,578
Accumulated depreciation		(127,853)		(127,853)		(109,153)
Net assets subject to lease		558,688		558,688		576,425
Land [Member]
Gross PP&E Assets Under Lease		115,957		115,957		115,957
Land [Member] | Property Subject to Operating Lease [Member]
Gross PP&E Assets Under Lease		98,337		98,337		98,337
Pipelines [Member]
Gross PP&E Assets Under Lease		346,072		346,072		345,328
Pipelines [Member] | Property Subject to Operating Lease [Member]
Gross PP&E Assets Under Lease		321,998		321,998		321,254
Terminals and equipment [Member]
Gross PP&E Assets Under Lease		324,908		324,908		319,861
Terminals and equipment [Member] | Property Subject to Operating Lease [Member]
Gross PP&E Assets Under Lease		83,387		83,387		83,387
Storage Facilities and Processing Units [Member]
Gross PP&E Assets Under Lease		202,007		202,007		200,662
Storage Facilities and Processing Units [Member] | Property Subject to Operating Lease [Member]
Gross PP&E Assets Under Lease		182,819		182,819		$ 182,600
Lease with Affiliate [Member]
Total lease revenue		$ 38,305	36,212	$ 112,275	112,600
Lease with Affiliate [Member] | Minimum [Member]
Lessee, lease term		1 year		1 year
Lease with Affiliate [Member] | Maximum [Member]
Lessee, lease term		15 years		15 years
Third Party Lease [Member]
Total lease revenue		$ 9,508	13,449	$ 26,303	40,173
Terminaling Service [Member] | Transportation And Terminaling Segment [Member]
Total revenue		37,628	35,468	114,849	108,196
Pipeline Service [Member] | Transportation And Terminaling Segment [Member]
Total revenue		20,980	19,974	62,667	60,732
Other Service [Member] | Transportation And Terminaling Segment [Member]
Total revenue		11,110	11,550	34,387	35,016
Other Service [Member] | Storage
Total revenue		4,585	8,203	11,850	25,858
Storage Service [Member] | Storage
Total revenue		$ 14,550	$ 13,815	$ 42,443	$ 41,366

[1] All fixed consideration from contracts with customers is included in the amounts presented above. Variable consideration that is constrained or not required to be estimated is excluded.

[2] Arrangements deemed leases are excluded from this table.

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CURRENT EXPECTED CREDIT LOSSES (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Credit Loss [Abstract]
Allowance for doubtful accounts	$ 0	$ 0

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PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 991,641		$ 985,569
Accumulated depreciation	(192,809)		(165,395)
Property, plant and equipment, net	798,832		820,174
Depreciation	28,092	$ 31,065
Land [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	115,957		115,957
Pipelines [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	346,072		345,328
Terminals and equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	324,908		319,861
Storage Facilities and Processing Units [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	202,007		200,662
Construction in progress [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,697		$ 3,761

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GOODWILL AND INTANGIBLES (Details) - USD ($) $ in Thousands		9 Months Ended
		Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Goodwill [Line Items]
Intangible assets, gross (excluding goodwill)		$ 15,200		$ 15,200
Accumulated amortization		(12,272)		(11,896)
Total intangibles, net	[1]	2,928		3,304
Amortization expense		376	$ 5,756
Goodwill		6,332		6,332
Customer Contracts [Member]
Goodwill [Line Items]
Intangible assets, gross (excluding goodwill)		9,300		9,300
Customer Relationships [Member]
Goodwill [Line Items]
Intangible assets, gross (excluding goodwill)		$ 5,900		$ 5,900

[1] Total intangibles, net are included in “Other non-current assets” within the Partnership’s condensed consolidated balance sheets.

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DEBT - OUTSTANDING AMOUNTS (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021		Dec. 31, 2020	Jul. 30, 2018
Debt Instrument [Line Items]
Total debt outstanding	$ 650,000,000		$ 725,000,000
Unamortized debt issuance costs	(3,975,000)		(5,754,000)
Unamortized 2023 Notes premium	1,099,000		1,599,000
Net carrying value of debt	647,124,000		720,845,000
Repayments of line of credit	75,000,000
Senior Notes [Member]
Debt Instrument [Line Items]
Total debt outstanding	525,000,000		525,000,000
Line of Credit [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Total debt outstanding	125,000,000	[1],[2]	$ 200,000,000
Line of credit, outstanding	4,008,000
Remaining borrowing capacity	$ 370,992,000
Maximum borrowing capacity				$ 500,000,000

[1] During the nine months ended September 30, 2021, PBFX made net repayments of $75,000 under the Revolving Credit Facility.

[2] PBFX had $4,008 of outstanding letters of credit and $370,992 available under its $500,000 amended and restated revolving credit facility with Wells Fargo Bank, National Association, as administrative agent and a syndicate of lenders (as amended, the “Revolving Credit Facility”) as of September 30, 2021.

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DEBT (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Debt, fair value	$ 636,442	$ 703,025
Debt, carrying value	$ 650,000	725,000
Senior Notes [Member]
Debt Instrument [Line Items]
Debt, interest rate	6.875%
Debt, fair value	$ 511,442	503,025
Debt, carrying value	$ 525,000	$ 525,000

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EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended							9 Months Ended
	Aug. 12, 2021	May 13, 2021	Feb. 25, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020		Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance						$ 167,217					$ 167,217
Net income attributable to the partners											110,989	$ 116,435
Ending balance				$ 225,177							$ 225,177
Accelerated Vesting of Phantom Units for Nonretirement Eligible Employees in Accordance with grant agreements									$ 201
Cash distribution (in dollars per share)	$ 300	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.52
Limited Partner, Public [Member]
Capital Unit [Line Items]
Limited partner interest percentage				52.10%							52.10%
Limited Partner, Affiliate [Member] | PBF LLC [Member]
Capital Unit [Line Items]
Limited partner interest percentage				47.90%							47.90%
Common Units [Member]
Increase (Decrease) In Limited Partners' Capital [Roll Forward]
Balance at beginning of period (in shares)				62,510,376		62,364,838	62,349,592		62,130,035		62,364,838	62,130,035
Balance at end of period (in shares)				62,517,137	62,510,376		62,360,524	62,349,592			62,517,137	62,360,524
Common Units [Member] | Limited Partner [Member]
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance				$ 206,717	$ 186,506	$ 167,217	$ 127,246	$ 108,489	$ 105,083		$ 167,217	$ 105,083
Quarterly distributions to unitholders				(19,012)	(19,023)	(18,926)	(18,847)	(18,843)	(32,703)
Net income attributable to the partners				36,682	37,096	37,211	44,162	37,460	34,813
Unit-based compensation expense				835	2,834	989	995	945	1,302	[1]
Other				(45)	(696)	15		(805)	(6)
Ending balance				$ 225,177	$ 206,717	$ 186,506	$ 153,556	$ 127,246	$ 108,489		$ 225,177	$ 153,556
Common Units [Member] | Public Unit Holders [Member]
Capital Unit [Line Items]
Units owned (in shares)				32,563,506							32,563,506
Common Units [Member] | Limited Partner, Affiliate [Member] | PBF LLC [Member]
Capital Unit [Line Items]
Units owned (in shares)				29,953,631							29,953,631
Common Units [Member] | Phantom Unit Award [Member] | Limited Partner [Member]
Capital Unit [Line Items]
Shares, Issued (in shares)													325,384
Increase (Decrease) In Limited Partners' Capital [Roll Forward]
Vesting of phantom units, net of forfeitures (in shares)				6,761			10,932				152,299	230,489

[1] Inclusive of $201 of expense associated with the accelerated vesting of phantom units in March 2020 for nonretirement eligible employees in accordance with their grant agreements.

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EQUITY - CASH DISTRIBUTIONS (Details) - USD ($) $ / shares in Units, $ in Thousands					3 Months Ended						9 Months Ended
		Aug. 12, 2021	May 13, 2021	Feb. 25, 2021	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Distribution Made to Limited Partner [Line Items]
Cash distribution (in dollars per share)		$ 300	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.52
Cash distribution		$ 18,755	$ 18,752	$ 18,710
Cash distribution per unit (in dollars per share)					$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.30	$ 0.30
Distributions declared					$ 19,015			$ 18,848			$ 57,060	$ 56,541
Cash Distribution [Member]
Distribution Made to Limited Partner [Line Items]
Distributions declared	[1]				18,771			18,708			56,278	56,119
Common Units [Member]
Distribution Made to Limited Partner [Line Items]
Distributions declared					$ 19,015			$ 18,848			$ 57,060	$ 56,541
Limited Partner, Public [Member]
Distribution Made to Limited Partner [Line Items]
Cash distribution		9,769	9,766	9,724
Limited Partner, Affiliate [Member] | PBF LLC [Member]
Distribution Made to Limited Partner [Line Items]
Cash distribution		$ 8,986	$ 8,986	$ 8,986

[1] Excludes phantom unit distributions, which are accrued and paid upon vesting.  

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NET INCOME PER UNIT (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Distributions declared	$ 19,015	$ 18,848	$ 57,060	$ 56,541
Weighted-average units outstanding - basic (in shares)	62,887,914	62,519,105	62,820,193	62,424,217
Weighted-average units outstanding - diluted (in shares)	62,997,487	62,529,489	62,934,116	62,429,475
Net income per limited partner unit - basic (in dollars per share)	$ 0.58	$ 0.71	$ 1.77	$ 1.87
Net income per limited partner unit - diluted (in dollars per share)	$ 0.58	$ 0.71	$ 1.76	$ 1.87
Common Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Distributions declared	$ 19,015	$ 18,848	$ 57,060	$ 56,541
Earnings less distributions	17,667	25,314	53,929	59,894
Net income attributable to the partners	$ 36,682	$ 44,162	$ 110,989	$ 116,435
Phantom Unit Award [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)	314,128	273,232	119,128	285,515

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COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 01, 2018	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($) earn-outYear
Loss Contingencies [Line Items]
Accrual for Environmental Loss Contingencies		$ 1,769		$ 1,769		$ 1,760
Change in fair value of contingent consideration				(2,565)	$ 14,235
Contingent Consideration
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at beginning of period		1,748	$ 27,899	12,120	26,086	26,086
Accretion on discounted liabilities		0	587	0	1,706
Settlements		0	0	(12,176)	0
Unrealized charge (gain) included in earnings		760	(14,766)	2,564	(14,072)
Balance at end of period		2,508	$ 13,720	2,508	$ 13,720	12,120
East Coast Storage Assets Acquisition [Member]
Loss Contingencies [Line Items]
Term of Agreement	3 years
Business Combination, Contingent Consideration, Liability		$ 2,508		$ 2,508		12,120
Change in fair value of contingent consideration						$ 16,429
Contract termination, elimination of estimated earn-out year two | earn-outYear						2
Contract termination, elimination of estimated earn-out year three | earn-outYear						3

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RELATED PARTY TRANSACTIONS - SUMMARY OF TRANSACTION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Related Party Transactions [Abstract]
Revenue	$ 75,464	$ 70,716	$ 226,504	$ 218,681
Operating and maintenance expenses	2,171	2,171	6,512	6,512
General and administrative expenses	$ 1,816	$ 1,895	$ 5,531	$ 5,843

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SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) segment	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Segment Reporting Information [Line Items]
Reportable segments | segment			2
Total revenue	$ 88,853	$ 89,010	$ 266,196	$ 271,168
Depreciation and amortization	9,787	14,305	28,468	36,821
Income (loss) from operations	47,138	55,628	142,811	153,399
Other expense	10,456	11,466	31,822	36,964
Capital expenditures	3,383	1,763	6,892	9,635
Total assets	910,579		910,579		$ 933,552
Corporate
Segment Reporting Information [Line Items]
Total revenue	0	0	0	0
Depreciation and amortization	0	0	0	0
Income (loss) from operations	(3,902)	(4,112)	(14,592)	(12,798)
Other expense	10,456	11,466	31,822	36,964
Capital expenditures	0	0	0	0
Total assets	29,299		29,299		18,114
Transportation and Terminaling
Segment Reporting Information [Line Items]
Total revenue	69,718	66,992	211,903	203,944
Depreciation and amortization	7,613	7,010	21,953	21,105
Income (loss) from operations	42,744	43,377	134,801	127,557
Other expense	0	0	0	0
Capital expenditures	3,281	1,438	6,590	6,469
Total assets	686,222		686,222		715,308
Storage
Segment Reporting Information [Line Items]
Total revenue	19,135	22,018	54,293	67,224
Depreciation and amortization	2,174	7,295	6,515	15,716
Income (loss) from operations	8,296	16,363	22,602	38,640
Other expense	0	0	0	0
Capital expenditures	102	$ 325	302	$ 3,166
Total assets	$ 195,058		$ 195,058		$ 200,130

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SUBSEQUENT EVENTS (Details)	Oct. 28, 2021 $ / shares
Subsequent Event [Member]
Subsequent Event [Line Items]
Cash distribution (in dollars per share)	$ 0.30