Has anyone run the math on the value creation that this MLP is going to create for PBF? These assets should price at a 13.0x forward EBITDA multiple ($44M of EBITDA being contributed per the S-1). I assumed a 6.0% IPO pricing yield, which I think it will end up being south of but wanted to be conservative (I worked as an MLP investment banker so have taken many public in the past and believe this to be a fair value.)
Further, they have about at least $60M of midstream assets that will be later dropped down into this structure and they should also receive this same multiple uplift. With PBF currently trading at 4.0x 2014 EV/EBITDA, this is going to result in serious value creation when you look at a sum-of-parts valuation.
I have a spreadsheet with all the numbers but I am getting to a $35.00+ implied share price assuming the same multiple for the parent company. I'm waiting for the research community to release more commentary on this and not sure what I could be missing here. The IPO filed April 3rd and per the JOBS act they cannot launch a roadshow for 21 business days after a first public filing. I expect the MLP IPO to be completed in early May and hope others see how much possible value creation this MLP will provide.