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PBF Logistics: 8% Yield Poised For Growth After Solid Results, But Priced For Zero

May 05, 2021 11:30 AM ETPBF Energy Inc. (PBF)4 Comments
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  • PBF Logistics provided another set of solid financial results for the first quarter of 2021.
  • They are generating ample free cash to easily grow their already high 8% distribution yield, plus their financial position is healthy with only moderate leverage.
  • Despite being poised for distribution growth, their units currently are only approximately priced for zero future growth based upon my estimates for their intrinsic value.
  • If they began growing their distributions by even a small 2.50% per annum, my estimates for the intrinsic value of their units jumps to $27, which is a very impressive 71.76% above their current unit price.
  • My bullish rating is being maintained since they offer minimal potential long-term downside risk, but at the same time, still offer ample upside potential.

White oil tanks for storing fuel appear to be blank canvases
Photo by pejft/E+ via Getty Images


Now that the first quarter of 2021 reporting season is well and truly underway, another quarter has come and gone with PBF Logistics (PBFX) once again providing a set of solid

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I am no longer active, as I am taking a hiatus from finance to pursue business ventures in other sectors.  I hope that my analysis was helpful to investors across the years, thank you.

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Comments (4)

I see no reason for the dramatic price drop. Concerns about PBF bankruptcy? Any thoughts on this?
Hi, I liked your article , it gave lots of information to me. And its great that you discussed all possible scenarios . I also read with interest your article on PBF energy .
Almost half the company ( PBFX ) is owned by PBF Energy. And the PBFX has a guaranteed customer that is PBF Energy . Market cap of PBF at current price ( $ 15 ) is 1.8 Billion and that of PBFX is close to a Billion. The PBF energy owns 6 oil refineries plus about half billion worth of PBFX stock. Therefore PBF looks dirt cheap considering that an oil refinery of the average size that PBF energy owns is worth about a billion . To me both PBF and PBFX look very attractive. I wonder which of the too is a better buy , what do you think Daniel. Would appreciate if you can please reply my comments. Thank you for your article.
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