PBFX - PBF Logistics: Tough Times For Their Parent But Smooth Sailing For This Double-Digit Yielder

• PBF Logistics has once again produced solid results for the third quarter of 2020 and kept their very high distribution yield ticking along.
• Sadly, this relatively smooth sailing has not extended to their parent company, PBF Energy who is under notable stress, which may worry the unitholders of their subsidiary.
• Thankfully, management has addressed this issue and clearly stated that whilst "everything is on the table" at PBF Energy, there are no reasons to expect any changes at PBF Logistics.
• Whilst PBF Energy has very high leverage at the moment, they can outlast this downturn and thus they do not pose any risks to fulfilling their contractual commitments.
• Following another quarter of solid operating cash flow and decreasing leverage, it should be no surprise that my bullish rating is remaining unchanged.

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