PBF Logistics LP (NYSE:PBFX) announced today third quarter 2016 net income of $18.4 million, or $0.50 per common unit. During the quarter, the Partnership generated cash from operations of approximately $25.8 million, earnings before interest, income taxes, depreciation, and amortization (“EBITDA”) of $31.5 million and distributable cash flow of $25.1 million. Included in our general and administrative expenses for the third quarter are $1.3 million, or $0.03 per common unit, of transaction expenses related to asset acquisitions.

“The Partnership continued to execute its growth strategy with the acquisition of the Torrance Valley pipeline interests in September. The Torrance Valley pipeline is the primary crude oil supply delivery method for PBF Energy’s Torrance refinery and further diversifies and expands the Partnership’s revenue base,” said PBF Logistics GP LLC Chief Executive Officer, Tom Nimbley. “In light of our continued growth, we are pleased that the board of directors approved another increase in our quarterly distribution to $0.44 per common unit.”

Mr. Nimbley continued, “As announced today, our Chief Financial Officer, Erik Young, has been appointed to our general partner’s board of directors. Erik has contributed significantly to the Partnership’s growth and success and will be a valuable asset to the PBF Logistics GP board.”

As of September 30, 2016, the Partnership had approximately $231 million of liquidity, including $44 million in cash and cash equivalents and access to approximately $187 million under its existing revolving credit facility. The Partnership intends to use its financial resources to fund organic growth projects at the Partnership and future drop-down and third-party acquisitions.

Equity Offering and Torrance Valley Pipeline Company Acquisition

On August 11, 2016, the Partnership launched an underwritten public equity offering which resulted in the successful sale of 4,375,000 common units, including a partial exercise of the underwriter’s option to purchase additional common units. Total net proceeds (after underwriter’s discounts and commissions) of the offering were approximately $87 million. The offering closed on August 17, 2016. The Partnership used the net proceeds from this offering to fund a portion of the $175.0 million purchase price for the 50 percent interest in Torrance Valley Pipeline Company LLC (“TVPC”).

TVPC owns the 189-mile San Joaquin Valley Pipeline system with a throughput capacity of approximately 110,000 barrels per day. The system, segregated into two parts, Northern and Southern portions, is comprised of the M55, M1 and M70 pipelines which are the primary crude gathering and transportation lines that supply PBF Energy’s Torrance refinery. The assets also include 11 pipeline stations with approximately one million barrels of combined tankage and truck unloading capability at two of the stations. The Partnership has entered into a ten-year term transportation services agreement with a subsidiary of PBF Energy containing minimum volume throughput commitments (“MVCs”) of approximately 50,000 barrels per day for the Northern logistics system and MVCs of approximately 70,000 barrels per day for the Southern logistics system and the usage of certain tanks.

PBF Logistics Announces Increased Quarterly Distribution

The board of directors of PBF Logistics GP LLC, the Partnership’s general partner, declared a regular quarterly cash distribution of $0.44 per common unit. The distribution is payable on November 22, 2016, to unitholders of record at the close of business on November 8, 2016.

This release is intended to be a qualified notice to nominees under Treasury Regulations Section 1.1446-4(b). All of the Partnership’s distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, the Partnership’s distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate.

Non-GAAP Financial Measures

This earnings release, and the discussion during the management conference call, may include references to non-GAAP financial measures including, but not limited to, EBITDA, EBITDA attributable to PBFX and distributable cash flow. PBFX’s management believes that non-GAAP financial measures provide useful information about the Partnership’s operating performance, financial results and the amount of cash generated by the Partnership’s operations and the amount available for distribution to its unitholders. However, these measures have important limitations as analytical tools and should not be viewed in isolation or considered as alternatives for, or superior to, comparable GAAP financial measures. PBFX’s non-GAAP financial measures may also differ from similarly named measures used by other companies. See the accompanying tables and footnotes in this release for additional information on the non-GAAP financial measures used in this release and reconciliations to the most directly comparable GAAP measures.

Conference Call Information

The Partnership’s senior management will host a conference call and webcast regarding quarterly results and other business matters on Friday, October 28, 2016, at 11:00 a.m. ET. The call can also be heard by dialing (888) 632-3384 or (785) 424-1675, conference ID: PBFXQ316. The audio replay will be available two hours after the end of the call through November 13, 2016, by dialing (800) 283-4595 or (402) 220-0873. The call is being webcast and can be accessed on the Partnership’s website, http://www.pbflogistics.com.