PBFX - Earnings call transcript Q3 2017

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Operator

Welcome to the PBF Logistics Third Quarter 2017 Earnings Conference Call and Webcast. At this time, all participants have been placed in a listen-only mode, and the floor will open for questions, following the management’s prepared remarks [Operator Instructions]. Please note the conference is being recorded. It is now my pleasure to turn the floor over to Colin Murray of Investor Relations. Sir, you may begin.

Colin Murray

Lin. you, Thank welcome and call. Good to morning, today’s me Erik Young, are the senior Lucey, other Matt and President Partnership's team. Vice Executive management our of With members today CFO several and

earnings you’d release, Web If copy a of site. it available on like is our our

are begin, that the direct the covered including your management’s factors expectations, I'd to of SEC. this press There federal intended and statements by statement in results the forward-looking our the with attention many In future, release. statements securities conference to today’s those predictions state or to we’ve Safe on or that in are the expectations under contained press actual like from be the call summary, could described cause Harbor we in provisions differ to filings forward-looking Before disclaimer laws. our it Partnership’s that outlines release

I’ll Now, Matt call to turn the Lucey over

Matt Lucey

safely Energy’s, joining business what certainly approximately operate this active to consecutive today. the PBF to manage happy is complete, and e. intend and Partnership project by have call Pleased exact the to as and the $XX I’m the pipeline, morning, our will growing. focus EBITDA customer, Paulsboro strong natural reliably quarter Partnerships announce on today last contributing we to earning the another i. report increase million, this that thanks yesterday. distribution and on well. August, together of we our on importantly began call. operations. as earnings Partnership gas The to two the we and With point, future, increase projects Partnership’s Good day business the improve respect think In to And storage XX completed for on Chalmette our I call is of the tank

growth, up. focus dropdowns obviously, our acquisitions terms come sponsor. from In we they positioned And on well continue to party when third we’re for of

over that sponsor certainly To as in fourth barrels with of to we as both XXX barrels can turn I’ll year And result, these pie extent, any to crude move PBFX coming grows In over close to to a handle the million to for develop continues fiscal products. or will. look Eric. to our opportunity out is organic are companies. a be to economic. largest forward year to XXX,XXX equates more the as the we the a we We and quarter Our day that the quarter projects year. that, of going barrels whole by position or throughput expect in fourth trip increased seeing strong throughput out With regard, see and becoming rail XXXX. a in

Erik Young

depreciation and approximately attributable limited totalled of the and morning, $XX.X and expenses for This reported cash financing approximately times. million, to quarter million, and coverage amortization. the unit, of and distribution, for $XX.X we X.X $X.XX Partnership Revenue million. which per of or partner $X.X net to Interest were Total million we of expenses $XX.X $XX.X common including Matt. third and ratio maintenance expenses, million the cost operating EBITDA Partnership $XX a quarterly for Thanks, million. income third of represents increased approximately quarter generated available G&A and quarter

revolving $XXX We credit and projects $XX cash of including with approximately $XX.X spend organic we under quarter, million our approximately our the $X.X for quarter in $XXX million million and ended During $XX of liquidity, the facility. in includes which maintenance. million million availability CapEx, approximately for million

result, ratio a to our X.X on basis. times approximately debt As an was net EBITDA annualized

successfully the $XXX The Partnership of were closed IPO. proceeds quarterly through approximately the to senior raised Subsequent the rate quarter. of This annual the in since $X.XX repay to of and XX% consecutive week growth XX% through offering represents of quarter, October. per used to offering, minimum our majority pleased million end our unit compound announce a our distribution XX our We’re the the increase distribution a to notes outstanding first per which of on the increase revolver. balance

our million transaction, Operator, is the revolver Following increased concluded availability open million. we’ll for opening now, and pro questions. call our And we’ve $XXX $XXX approximately to liquidity forma our remarks. the

Operator

go call we In line open. our is Justin a with Instructions] question moment, James. from ahead, first ahead the we’ll And [Operator and Raymond will open for take questions. Please Jenkins go your

Justin Jenkins

I the on year. bit ramp including XQ. you seem acquisition the this CapEx growth that expectation, Chalmette million Is And of imply maybe and up PFB lumpiness maintenance just the a about earlier catch that Erik, would storage a completion bit on guess both mentioned maintenance? or a front the to in is of for starting and call, here, $XXX in of

Erik Young

if the be, to think, of I PBF bulk remember, the started at is vast you these going projects it level. of were couple

million end. transitioned still $XX call of is $XX were reimbursed they ultimately the between up Logistics, that they’re PBG to And let's over to be probably at and CapEx million catch so going as

the that quarter. So in through fourth come would

Justin Jenkins

to at organic think seems And this we call what But well PBF year, just you for if next for taking we’ll as from the I about similar sense a curious on seen maybe the that us guess get I’m what more projects early could year. spend capital as like side, directionally, can it least color year? we’ve we next give should see the

Erik Young

start we’ll -- first. maintenance from with think I

in we’ve with transactions probably the to maintenance Collective clearly, done. the million this standpoint, think ultimately call subsequent our the are as assets of all going had maintenance to $XX million range. project original I outlined we’ve probably be, year. we dropdowns organic year third-party an it $XX And as a from as $XX million $XX million and well numbers to that is organic

we opportunity the what as is year between as appears forward But our off exactly of as in next thinking driven that think early our today growth. PBFX help PBF. look to plan terms be well it’s Matt growth long-term back and I quantify said, as of the to we’re best

Justin Jenkins

Appreciate financial with there the period? up contribution us that ratable if terms Can I start And in costs of Are should up, ramp cash one associated Chalmette for then you storage. we how or think the in could flow here? Erik. this about last me, on about think help any

Erik Young

it’s I a to one-time on going quarter. year front for tank. during of should think, partial are Chalmette be total the really $X that the quarter, next ultimately, no we charges There end. be starting run-rate year, the ultimately, million a fourth in And

Operator

open. take We’ll with Levine you. Citi. your go Ryan next our Thank ahead, from line question Please

Ryan Levine

provide light the of opportunity assets that Jersey? market? that congestion we’re your in some existing the Would seeing extending you update around issues in New around of able an to be gas And in pipe

Erik Young

in completed counterparties as a that Phase is we’re Look, actively to certain internally, probably -- X to be going X extent. Happy implies working referred the pipeline to there our and a with we’ve August we is the we of Delaware how for that we it assessing small no terms anyone market But in it and view crosses to a River, in as the grow absolutely accomplish. business. feat which asset that Phase strategic

So the today. where possibilities I refinery has grow of beyond certainly ahead to think it is tremendous the asset

Ryan Levine

your that any impact Phase state Does have on the for utility front the outlook growth X? on transaction the recent in

Erik Young

I think it’s positive. all

Ryan Levine

the Is initiatives update provide And can crude organic product there side. growth you then looking around you’re elsewhere or the that either at any on side? on around,

Erik Young

multiples previous we full announce today. a working team And focused think. anything not But I third EBITDA as the as calls, same. But on acquisitions stated intend out is why don’t we’ve come I associated with simply to the are have the We the All projects created on full prepared we’re just time. that is, and part more said don’t in such. reason remarks, the so organic opportunities on on attractive.

too future projects our in and but be able the list. on hope and clear we’re not we And actively we’re more distant more to I so our prioritizing like working web, to And numerate prospects.

Ryan Levine

for are there Would remarks, by for and business? that mention rail. prepared to a in able crude seeing economics your potential you’re in your market then and around of be elaborate what you that improving And

Erik Young

up, at the barrels of moment rail all static. with moment them. as want the TI in avenues those go optionality have not sits assets economic a refining Delaware, it when importance outlook the come your just things our the looks speaks to and run refiner, obviously [mercer] time terms and at open for heavy is tremendous the where America down, things are think, refiners attractive to to I Obviously, only keep you predominantly in both we can companies I’ve crudes. become access North Brent where market WCS it to things at and what The barrels. to you become nothing crude looking of for learn economic, And access go Canadian differentials the for today,

be should assets the throughput through Delaware. increased it in rail So

Operator

to floor or further no have to we appears any time. Lucey Matt It would additional for the at Instructions]. [Operator over like remarks. turn I you Thank questions this back closing

Matt Lucey

everyone’s in interest Well, the soon. support look And Talk great. and appreciate Company. next to results you forward positive to quarter. I we

Operator

does program. This today’s conclude

your anytime may day. You line have the and disconnect wonderful

PBF Logistics (PBFX) 2 Nov 172017 Q3 Earnings call transcript