PBFX - Earnings call transcript Q3 2020

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Operator

Welcome to the PBF Logistics Third Quarter 2020 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 managements prepared remarks. [Operator Instructions] It is now my pleasure to turn the floor over to Colin Murray of Investor Relations. Sir, you may begin.

Colin Murray

Chloe. you, Thank welcome and call. Good to morning, today's me Young, our are partnership's management Lucey, members Matt Erik President; senior Vice Executive team. CFO; the With of today 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 statements 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, partnerships, 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 Lucey. provided please over call GAAP refer the tables release. reconciliations measures Matt to supplemental figure,

Matt Lucey

Despite can Thank challenges, to consistency to The pandemic routines. very Logistics for quarters. a environment PBF of everyone be the as seen Colin. earnings struggling in find operate our normal drive well with continues to several you, challenging continues these the past

throughput drop and much less but store be the decline than levels, we in nationally in demand We in have for modest an seen can seen the deliver. overall move, what products

support and for stable, result demand, our structure, a of provides as strong Our remained business. the relatively revenue has base our contract

as East partner, decrease. the major lower Energy Today, restructuring expected lower Operating flow be refinery Paulsboro their units corporate reductions will PBF its processing refining from refinery idling of throughputs will several cash expenses announced and came savings. quarter, EBITDA whereby Coast distributable system, and up the of strategic and to output were costs. sponsor provided versus and expense down our result Our a last

For impact partnership's to expect do partnership less impact XXXX, in the expected XXXX, is equate of not to the we X% this to EBITDA. earnings and than

current East Maersk Coast – will will for not always the flow Maersk or at be essentially from Another which be X.X terminaling fuel the on our impact materials no Storage lowers Maersk will agreement that acquisition Assets. $XX derived times pandemic which cash initially partnership times. the effectively net a acquired business been be elected longer times This processing arrangement renew has X.X forecast, and East of the Coast to multiple investment the year-to-year Storage our the a realized exit. due million to contract. EBITDA We The processing from has the the the environment million, multiple by $XXX following unchanged Assets based our agreement for X.X to remains reduced

– forward, Today, Going cash healthy to distributions remain per our and distribution of to maintain business. changes the we $X.XX ample I with just generating to coverage delever mentioned, flow distribution expect unit. continue of we

the company to review market turn use funds. now policy performance, of respect to I'll over We going call forward, will and to continue conditions, distribution Erik. with our alternative the

Erik Young

approximately to you, was $XX.X joining with call. remediation continued unit-based EBITDA quarter which environmental partnership Thank $X.X our partners compensation. for costs today's We morning, Adjusted of you terminals the everyone, non-cash million. reported income on thank associated million $XX.X Good us Coast net Matt. third of East attributable million, and and includes limited

maintenance $X.X in we approximately $X During and in CapEx. spent CapEx total million the million quarter,

range. approximately of With comments respect recognized non-cash net third Our $XX of in quarter, regarding total $XX year agreement, for CapEx the termination Maersk Matt's we expected the is benefit million to to the the a be the in to $X.X million million.

we with decommissioning, in expect $XXX the of credit unit expense quarter finalize million we and and roughly ended million balance be in depreciation will approximately facility. to included We non-cash revolving process under $X million approximately a availability $XXX QX amortization. our incur $XX.X million As incremental in that of the including of cash liquidity,

$XX During our adjusted Net the quarter revolving was we annualized times. repaid million facility. EBITDA to approximately debt on credit X.X

our We and expect for we've the to we'll sheet. to now ratios call cash balance continue improve leverage Operator, questions. using the excess and strengthen concluded remarks, open opening

Operator

Please will our we first take from go And from Suisse. Instructions] Dounis question Spiro [Operator Credit ahead.

Spiro Dounis

sounds impact guys. and flow the into sounds of material Coast just question, with with My still being to the assets system. of that East to the up lot first some like It the respect Hey, morning, there's to a on with also going and sponsor next more cash scenes a respect potentially preserve good optimization end not at level. decisions or the year. like rationalization But, might made going beyond it

impact So, pretty about just you're and going potential maybe forward, relationship MVC-protected. broadly, more obviously when sponsor with well the the the thinking

think what trying I figure reduce out to are we're And by And other be of to part impacts is expecting should some so, solution potential optimization. that from at asked costs going PBFX ultimately, here is factors the other the way of point forward what maybe renegotiation? of be to we what

Matt Lucey

the nothing every management PBF off continually call table, there's as the last the on on think PBFX, we're -- table. relates I last How to aspect that Everything call, report. is clear our PBF to were analyzing and nothing's we Look, of that the business.

now strong see mentioned, right contracts, regards you there's our in we of and changing As nothing as have to we business. that

some are regards we announcement Obviously, taking as there's the You reiterated just at big Delaware, down be PBFX. minutes impacts today some to that's just volumes comments but the from very it There to positives reconfiguration, my of East reduced. and a above impactful MVCs, modest, being negatives XXXX see Paulsboro, but couple in at Coast actually to the ago. will don't a

Spiro Dounis

are solid trading fairly about the on sort covered, well in end your balance to great like look I traded debt fairly be if then, Okay, it's obviously, sheet great. of at shape, $X.XX if in are vein, guess on off here things looks I October, And that the your actually dollar. dividends appears still in

So, as buckets. you you discount? open go Obviously are use the the and How of some talked to of as about out I assessing to guess purchase well one debt a market maybe deleveraging curious. ability the just at that capital

Matt Lucey

-- we'll We're market go. assess make but as comment, our can Erik, we opportunities and all decisions

Spiro Dounis

That’s me. it for guys. Great. Thanks,

Operator

time. appear it I for And Instructions] further any at call does now closing [Operator to will questions Matt this back no the turn remarks. have we Lucey

Matt Lucey

forward good a quarter. I next to again appreciate day. and time your Have speaking look today,

Operator

participation. This does conclude today's program. your Thank you for

You may time. disconnect at any

PBF Logistics (PBFX) 29 Oct 202020 Q3 Earnings call transcript