PBFX - Earnings call transcript Q1 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the PBF Logistics First Quarter 2018 Earnings Conference Call and Webcast. [Operator Instructions] And this conference may be recorded. It is now my pleasure to turn the floor over to Colin Murray of Investor Relations. Sir, you may begin.

Colin Murray

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

a it like If earnings of our on release, you'd website. is copy available our

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

release, in measures partnership's describing the our noted certain using As and non-GAAP press will while results. performance we operating be financial

non-GAAP appropriate today's press to of in For the provided please GAAP refer the tables release. reconciliations measures to supplemental figure,

turn I Matt over call Now Lucey. to the will

Matt Lucey

everyone, Good and for on the joining morning, call. Colin. Thanks, us thanks

year. next rate transactions rate the over years. weeks partnership X.X folds EBITDA and Before -- the Few acquisition the growth initiative April information Run to $XX EBITDA $XXX to how expected like add four expected an recap approximately million. February, ramp is Erik made growth in that a EBITDA on that of million provides to over annualized announcement a of efforts. of broader multiyear organic earnings, I'd into all number next In announced our that ago, we the that will generate announced run is

increase million expect For base $XX we EBITDA 'XX, million. the between remainder $X to and of

investment. third-party approximately million. totaled these year XXXX, and the to $XX and The for be acquired and the XXXX. for be over that facilitate acquired Terminals XX. of to assets, PBF in execution products facility, to will from The investment million Energy generate full quarter. EBITDA from include acquired the assets from $XX million assets Energy PBFX anticipate exports. second from EBITDA of $XX PBF additional Energy projects the Terminals acquired will the $XX acquired The we We occur closing the Cummins which Cummins on be were PBF be in in clean million For Toledo to of rail of April products over to expect assets definitive the agreements upgraded

loading Chalmette additional well ethanol EBITDA in project Oil will be Lube in dedicated early Rack upgrade come to distillate tankage being is the Paulsboro infrastructure Truck year. and expanded expect with to gasoline, as complete as The July onwards. The will QX. contribute We of which delivering from online to QX this Terminal, blending for

This LPG is on will two downs. marine and and online be fourth partnership has towards first come opportunities the quarter. avenues blend ethanol an earlier projects; growth Additionally, refinery projects: expected Logistics year. for acquisitions; unique third-party multiyear third independent City quarter; facility investing in the at growth refinery rail-unloading loading the Chalmette at in the Del to infrastructure in terminal and announced steps acquisitions drop the These executed plan the this of three represent growth: PBF as organic executing projects all expected

barrels and call turn to feedstocks With X proximity XXX partnership the our million to per are in of year finished refineries We products flow that I'll and from leveraging relationship nearly growing X that, committed over the Erik. and to our those -- sponsors to and assets. refinery

Erik Young

million amortization. and and and operating $XX the totaled was and approximately were and Thanks, unit, $X.XX million. expenses or morning, approximately quarter net maintenance Matt. quarter million partners of $XX.X first limited of including total IDRs depreciation EBITDA million, common financing we $X.X million. of the expense net This reported for $XX.X to attributable Interest expense, partnership costs $XX.X per and Revenue income G&A

spent maintenance capital. in and includes million projects we quarter, our for the approximately CapEx, During $X which $X.X million for $X.X million organic

we X.X will a available include for quarterly to X coverage result, cash first months. represents generated quarter that X is in million of which $XX.X It ratio reimbursed the of which items, times. distribution, nonrecurring to of a our note approximately of As $XXX,XXX approximately next important results approximately half expense be

for budget adjusted period. Excluding times, these slightly above which coverage items, is is the X.XX our corresponding

quarter, approximately Coast our XX,XXX unloaded East crude first at barrels we per day facilities. the During rail of

a unloading barrels utilization, rail the Given the this and day current Based between XX,XXX market we maintaining at year. combined the more barrels the sponsor aligning XXX,XXX in outlook, expects agreements, are and of have for on of increase of outlook, we per rail to targeting XX,XXX sponsor incenting the and our day amended remainder the utilization partnership MVCs per terms and assets. current closely our

increased with $XXX liquidity, our PBFX Importantly, and We $XXX million of that consistent insulate amendments credit provide million our $XX partnership approximately these stream potential and including earnings an the rail cost facility. with original revolving from expectations. cash will in with million ended increases is with utilization under associated quarter the approximately

and and our a EBITDA guidance to on should base business, increase assets the of expect million. As we PBF was projects that our cumulative result, times approximately confident contributions net acquired $XXX Energy ratio million an for annualized We debt-to-EBITDA in and basis. annual from Terminals, between $XXX our remain Cummins X.X the the XXXX

rate compound of per announce consecutive a our XX% XXth annual concluded our approximately we'll open IPO. Erica, questions. quarterly our We remarks. unit minimum increase pleased XX% for quarter. are $X.XX distribution the call we've per growth the opening and to our now represents And This date to of increase to since distribution a

Operator

from Instructions] [Operator first And question from Justin Jenkins your comes Raymond James.

Justin Jenkins

Are growth you seen organic all bolt-on a starting project of looks the sense maybe bolt-on today. details type the new just on I M&A the incremental M&A throughout the and the growth deals really deals you've those midstream definitely opportunities, type today? Tennessee partnership's announcements that's still here footprint guess maybe But with how appreciate of And it's few beyond M&A? see third-party focus the history to market the of for the great and again, gave the front, that the and terminals. here then general

Matt Lucey

All answer right. To yes. question, your

sponsor, working or but to our very we We’re quite it's been bidding operations sponsor it constantly and achievable conjunction is as where companies and our doing no and with with frankly, assets company realistic have always looking difficult grow. a position a a that refining on in probability our makes errand, logistics

to going forward similar we'll synergies able So context. the Cummins in other we're and with And no be I acquire us, facilities a able came create Terminal have to PBF. doubt to that

So was second your what question?

Justin Jenkins

general turmoil a today, given sense kind space. Just of of the this midstream market M&A in

Matt Lucey

think from a in and think MLP values little gone it's it's turmoil MLP the to a there's that is that be have seen The yields the executed get disconnected lag asset market is -- and space, I that. I itself -- reality to I be it bit seem we've going little probably under up. -- broader think to a

business, excited -- on So expect. we're I'd than result our expect forward. I a able a the to our the to business asset prospects bit simply values weather we been about being to decline would going little business and business operational and grow our focus It's of But as slower that.

Justin Jenkins

of the rest prepared That's that the I had Great. helpful. in covered we've remarks. most And then

broadly. kind you just even in and PBFX last how would I guess, the turmoil of MLP of the it's more made you're strategically, or bolt-on maybe IDRs MLP or in structure I to the thinking type whether comment that space So the assets

thinking the you're how curious Just about landscape MLP here?

Matt Lucey

makes I certainly the sense, a think one, still PBF. refining makes MLP think market for sense Yes, -- of the company like I construct

in we're and shareholders, we'll stable able grow evaluating time, flow doing the issues, our asset and that In operate IDRs to our interest expect be PBFX's investors what So continual to is on committed which cash we constantly flow that to generate do continue that. for we a and we'll we're other structural safely, a best cash do, over do and to of basis. regards what's

and the line sure track else than we'll make with So to track in we're where should I've other nothing continually and our announce be. market company -- we

Operator

Instructions] [Operator next comes question Ryan Our Levine Citi. with from

Ryan Levine

that be some or your joint -- opportunity? looking fund following of Is the around comment you market you help are on that to to growth ventures meaningful any dislocation, plan? Just more partner would willing your up a the of part

Matt Lucey

dismiss we hand. out anything of as don't company, a Just

won't if So we of that partnership or a the do some done haven't by we arrangement no sort there past, or nontraditional it was in future. it that that mean something the means does in is

to So we it to be perceive have we very when look entrepreneurial and everything, completely new and what at opportunities. mind a we comes open and anything

Ryan Levine

ethanol. and Or the into dive volumes? you structuring? Okay. LPG little that contracts could how And rail and the are color more around there to then provide a you highlighted just those try projects any more around two bit Is maybe

Matt Lucey

and in the full LPG capacity not Yes. products obviously, be And The going is, a Toledo I have day total day and allowing ethanol size a is think, barrels tank -- of LPG a is down clean to that out to capacity. PBF the is project XXX,XXX export XX,XXX to party. be of ethanol, on a about XX,XXX XX,XXX eventually the you being City tankage of capacity contracts, a That's the about X-year being lube which That barrels Chalmette. facility, contracts. the PBF barrels Canada at oil the There products over increased actually day. loading But Paulsboro is extent unloading -- there will projects. day. is at leased is the backstopping There barrels rail the third with to is of increase to then Del

cool. up. I all that think are we Musk, Elon it think Unlike wraps questions

we next So we your participation, quarter. appreciate speaking to to forward you look and

Operator

to line like call. feel participation any you. Thank disconnect free we'd at today's for conference Please to your And everybody their time. thank on

PBF Logistics (PBFX) 6 May 182018 Q1 Earnings call transcript