PBFX - Earnings call transcript Q2 2018

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Operator

Welcome to the PBF Logistics Second Quarter 2018 Earnings Conference Call and Webcast. At this time all participants have been placed in a listen-only mode and the floor will be open for your questions following management’s prepared remarks [Operator Instructions] And this call 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 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 partnerships 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 the

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 to appropriate today’s press to of in now the turn For the I’ll provided please over call GAAP refer the tables release. reconciliations measures Matt. to supplemental figure,

Matt Lucey

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

$XXX organic growth provides initiative as EBITDA recent I years. recap earnings, Before acquisition of coming growth expected on years. over to million the add we in EBITDA announced expect would to multiyear announcements that we like information Erik progress a our towards run-rate the and we next achieve our our February, to four In is

that growth which deliver pending stated. Storage acquired have this continue which multiple than pipeline, announced Axeon projects we announced are July, we transactions the next projects, Specialty few in are run-rate to quarter. will the opportunities is known the as $XXX will started develop EBITDA run-rate each projects East this The Assets, Coast subject Knoxville expected Products, as progress a comfortable is the of staged announced we total, of and be to to Terminals EBITDA closed around for and transactions. organic week. we close approximately $XX to and In million. that is the deal acquisition of growth years HSR we In formally of April, in million and While generate certain expected the fourth new more to In through cost on deliver total organic as achieved over the we

$XXX in For East Assets, to expect we add XXXX, run-rate are the the are million. projects consummated another in initial expect Investor These to full to we Knoxville EBITDA million. complete should year of executing complete Storage million generate should partnership. as Terminals to XXXX, XXXX, and to by at multiyear Beginning planned. increase as $XXX In earlier we expect very will $XX achieve $XX announced XXXX, Coast drop-downs an the the and $X our are assuming of In increase growth million projects steps indicated the our million, year EBITDA to to million incremental project EBITDA $XX May work meaningful for Presentation. full towards be plan and this we the year all transactions completed the

accretive EBITDA EBITDA per two our growth at on at delivered These million unit. executing are strategy. run which of times multiple, growth is times X.X packages growth a DCF $XX We announced to -- rate EBITDA X.X good

growing continued our commitment ability our partnership to of the the and demonstrated have benefit we Importantly, unitholders. for

strong available transactions of In to turn that, to environment, that Erik. the growth generate supportive, over fund we that PBF introduced to equity Our returns have financing equity the I’ll challenging capital it partnership. partners sponsor attractive the - further belief a Logistics. supports remains for and With new our is

Erik Young

expenses resulting financing stock Revenue the and acquisitions, per in limited IDRs total $X.XX based $XX.X of unit million of and of million to and we morning, recent Partnership was This common including $XX.X were approximately million. million million. amortization. which income net $X.XX issuances. per or reported to EBITDA related unit totaled impact $XX.X quarter expense partners and was Interest adjusted quarter Thank $X.X $XX.X the and G&A expenses $XX.X the compensation unit, EBITDA for of common or including Matt. of expense, you, maintenance includes million. million, second And common attributable operating is the and net depreciation $XX.X costs

During growth in and associated the maintenance CapEx of to Knoxville $XX.X acquisition the quarter, Terminals $XXX,XXX approximately we projects. the and spent approximately million related

million we a coverage ratio times. distribution quarterly approximately X.XX of available of which for cash As generated $XX.X result, represents a

was the effects coverage X.XX Excluding times. July forma pro unit common issuances, of the

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

the approximately liquidity, and Given utilization, of including third in of million level availability facility. the our unloading $XX.X in $XXX.X outlook, under increase credit to ended expects targeting cash market we quarter $XXX the are our current approximately with revolving sponsor that above million and rail million We quarter.

our As the continued announced The common to of we $XX the successfully lending upsized today recent million. credit upsized facility our million like to support thank growth. facility our issuance syndicate increases $XXX for unit release, future partnership I’d to in total our when have liquidity million. our and $XXX press their approximately combined with

consecutive XXth quarter. our we’ll concluded per now are per call our opening remarks. to a unit represents for Operator, announce to we This pleased distribution $X.XXX we’ve open the quarterly minimum And our to XX% questions. distribution. increase Lastly, increase

Operator

Thank Instructions] And James. ahead to we’ll Raymond from go you. [Operator Justin first go Jenkins Please

Justin Jenkins

Chalmette, It’s operations. announcements on appreciate But with additional the parent Chalmette the can beyond to color. we’ve guys. morning optimizing I help all and refinery the the seen see already? great is that of seemingly what I the do shifting focus to to incremental Great. recent the Thanks. there starting it’s mostly front. MLP anything growth Good know guess, But

Matt Lucey

we’re Yes, evaluating. and

We’ll grow, our how parent, big both we small. a is on where the that's strategy. nothing ground, of cash We frankly, stable there And integrated successfully for have with to creates capital and the partnership. PBFX a can -- - to is But quite flow working its opportunities to use to sort going announce. And birds employ look are create we're we because stream. it a there

so of absolutely, Chalmette. opportunities renewed focus expect And out this bear of on I sort to

Justin Jenkins

Perfect. front can the to any Appreciate is asset into that, given give? XXXX, incorporated big that And with or acquisition? IMO front, is Matt. opportunities such refining, Or East potential -- a related is opportunity on guidance you other on that Coast that the the for recent color in uplift there topic maybe logistics

Matt Lucey

There a heed have with X facility think barrels it’s storage to a world. post import of probably more Well, a long-term those of storage is some barrels incrementally of the tanks. – dedicated increase I assets million expect X of good contracts. is million you is X would million that asphalt storage, bid heeded. and And to in MARPOL We which

I think ability X barrels sulfur million handle of fuel existing and oil, any barrels high would number million would a We X have and of is the heeded. that, to the it increase projects.

think play Storage do IMO Assets. going Coast part the in East a I So to certainly is

Justin Jenkins

today. another I one me, last And in if Perfect. could. simplification We’ve got midstream transaction for

all. PBFX is if Just thoughts your at structure and how current latest what could that the curious of on evolve,

Matt Lucey

market. not pay partnership, and company market. grow only of we but the the continue to a to we consider to people And continue Well, the ourselves attention we

it, we we constantly it. at we And to But have so nothing and are looking evaluate announce.

Operator

Thank we from Ryan go Citi. you will next Please [Operator ahead. Instructions] And to go Levine

Ryan Levine

morning. Good

public you willing if host of wondering thoughts alternatives? Or still offering? on more the around deal. through recent Just or us of a strategy to in you Are equity update markets the light could your capital you equity evaluating placements are advancing private approach

Matt Lucey

it to of above. to but transactions. Erik, Good My answer answer - is I’ll turn yes the over all my

to... we somewhat. be to all we’ll Erik, be, it do It But capital explore think you any have finance I not possibilities. nontraditional, but and may may want

Erik Young

add we the what transaction we But to ultimately, appears future. deal to two to And the on transactions. that to waters. creative. banking how only This long definitely there’s still it the are the for parties. years what way navigate of of continues execute think seems time And recent a we’ll regular continue need comments, be think thing doesn’t equity Matt’s be transactions. to partners be is And in. most kind to I terms right that financing in nimble like in on that us, these markets, people in can least be possibility telling between feel was part very at The wade equity as sideways. to market try we we to will choppy our the the bit we’re a of of follow those investment negotiated we good reasonable now two do have more really better said We’ve very, I be follow to as and those

Ryan Levine

months, out in to In capital is laid there your anticipated your execute XX plan for plan? future any the you've on next what needs

Matt Lucey

capital Outside needs?

Ryan Levine

Yes.

Matt Lucey

No.

Ryan Levine

Okay. in And And can the in recent base that I highlighted you on it’s related assume highlighted then press opportunities. be East further your Coast Storage IMO. that the Well, issues to question, previous what’s regarding release, you what your then that upside? is? will in synergies some you the elaborate But acquisition, added contemplated some plan? all of

Matt Lucey

it’s think terminal I asset. mean, I a Yeah.

world. assets because So a commodity I the goes as taking But those said, we’re limited the of upside risks. in somewhat position or not post-XXXX on is import up

other our Paulsboro. a obviously in proximity is miles the in PBS it’s So refinery that PBS very It’s terminal down as miles XX in couple to close has City well proximity as It Delaware Delaware. of to refinery away. river the facility very close obviously a Paulsboro

has has I future rail. warming storage to can a parent. with the it’s be, opportunities going water, capabilities, potentially a there’s the to has that deep handle lot So And work think, in facility access to

So to within along and but facilities then optimize other be of that to I opportunities only going PBF. with plenty think is that working facility not PBFX with our there facility

Ryan Levine

may in around growth some your projects across progress? updated Okay. then color to as organic provide various Is previous pursuing those able opportunities any you provided you’re footprint. there quarters, update that that you’ve be And

Matt Lucey

bit is spent not talking I February, time only months projects, six a of transfer look, we grow of EBITDA an out EBITDA to ago where And guess, Yeah. not No, our for a partnership got on we’ve that back laid is. of our simply our projects I team. about, which for it’s developing a our or know sponsor. focus is active money, but in it focus And we it where where be transfer good continues

deliver of to in what projects. those some to on And continue We’ve said I develop we ability stand like we’ve on We comments, executed our behind them. said. my

or disclosure our track. around In and it’s But it, months argue fact, point, in so at six our right three months I we’re announcement and since on conservative. probably this would we’re in

Ryan Levine

been have may there months Are they six are that today any more focused ago? areas than

Matt Lucey

across think I No. I system, I are mentioned our do team there’ll on But down in opportunities our fair works we’ve in there. got amount our earlier sponsor work develop that and do done be so PBF team, it to and think a plentiful. California like mean, projects. goes closely with a dedicated I this the very Chalmette, being of there's and opportunities call,

a excited it's So pretty system and that about. well we're one working that's

Operator

to And over Lucey back at time, this closing I'd like for comments. turn it to Matt

Matt Lucey

I your We in today Have talking day. continued company. Well, you to appreciate forward quarter. listening look and a again good the next support

Operator

thank Please time, and conference your day. good at have participation call. a to free on any to like everybody line today's We'd for disconnect their feel

PBF Logistics (PBFX) 4 Aug 182018 Q2 Earnings call transcript