FTAI - Earnings call transcript Q3 2021

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Operator

Good day and thank you for standing by. Welcome to the Third Quarter 2021 Fortress Transportation and Infrastructure Investors LLC Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks there will be a question-and-answer session. [Operator Instructions] And now I would now like to turn the conference over to Mr. Andreini. Alan

sir. begin may You

Alan Andreini

you, Operator. the earnings welcome to like I Transportation and would Fortress XXXX to Infrastructure you Thank third call. quarter

Executive our here Adams, me are Officer; Chief and Joining Scott Financial Chief today Christopher, Officer. our Joe

is open in listen-only Also, We press webcast. our this please being you download note release encourage mode not have is our if have that we investor you which to already on in an to posted and the presentation public website, done call so.

In including of non-GAAP directly call to addition, be discussing measures financial some most supplement. can we will FAD. be found during the earnings in comparable the those today, GAAP measures reconciliations the The measures

certain to the release I forward-looking be call regarding regarding disclaimers earnings. statements, our may We will over the future turn including out in forward-looking with encourage results. from quarterly materially like and report to and press statements statements, are Before financial you uncertain non-GAAP factors that nature, review the made filed our by statements contained actual SEC. risk presentation differ their These I in review measures today investor Joe, would the to and to and point

to call turn I Now like would over to the Joe.

Joe Adams

XX of start dividend To on $X.XX company dividend a as per and XX. to will today, a based Alan. you, The of announce November share Thank paid public since shareholder dividend our pleased I'm our November on inception. XXth record XXst date be consecutive

Adjusted FAD to XXXX and of XXXX. QX was million XXXX of let's in versus million of us for FAD million $XX.X metrics QX XXXX funds are $XX.X for for to million QX $XX.X QX adjusted XXXX The distribution. and numbers. compared or $XX QX in million. key million $XX.X and QX Now EBITDA was in available $XX.X XXXX turn the EBITDA

from our the from other. $XX.X aviation $XX.X negative portfolio, infrastructure of million million quarter, million FAD business number corporate $XX.X leasing third negative the our from $X.X and During million and was comprised

our Turning resulting EBITDA Delta million now to in delays as $XXX approximately was across in continues some up the in QX. $XX $XX We improvement QX million, for with markets, and from narrowbody million QX, variant. Aviation. The aviation see broad demand recovery from

approximately example, we took the XX now engines signed in QX. an continuing As several leases travel actual part for restrictions, the that for regions XX of airlines but quarter have had as approximately most reopened been in delivery

lease XX delivered. CFMXX aggregate term fourths these from to XXX when backs months with the to today an of of XX and demand over Alitalia is six expect XXXs The have are XX a leases an million. signed of aircraft on of XX engines. engine brings years, engine XXX which new funding new start $XXX excellent addition which CFMXX We and strong and in to those leaseback an powered closing average three and in engines of have and are XX XX aircraft count already aircraft, and with backlog November of our with QX, for total Avianca on aircraft approximately investment range new months, XX been sale and transactions also ITA We're

few application and great forward. weeks. make On documentation the Aerospace part made strides CFMXX completed in has being complete activities the FAA final PMA three the next Our all to production assembled is next

or As organizations shock maintenance strong QX in own parts seeing for such, to are repair beginning in for XXXX multiple airlines engines use and our expect both XXXX. MROS for to party and interest able visits we third be

million shaping AAR and is long combined are to we or total material and few million used All progressing Business $XX supply On the the sales million be in USM serviceable activity airlines and $XXX XXXX. EBITDA in number expected three the the QX business module into million expected of year EBITDA module a negotiating a in with our be CFM for between approximately to momentum agreements. million. total for factory $XXX XXXX for growing sales we with of have well programmatic is with million swaps term EBITDA completed aviation really Elsewhere year XXXX are $XX with $XXX targeting expected for leasing to contribute $XXX to up XX Aerospace is and

XX-year refinery Texas in infrastructure, to footprints Port reshape of with the largest largest to Jefferson, has Jefferson starting mid-July, Terminal one U.S. two the Arthur extension transform the deal turn become Gulf the announced refineries of Coast, in and logistics now Exxon terminal Jefferson the of on remains heels in America, America. and Let’s the previously continues in with essential and the region. the This refinery North region Beaumont North in an options

near continue by Coast. Looking crude the economics Western of rail to specifically impact at the QX, U.S. Gulf term headwinds to Canada from

Enhanced increase positive and completed, partners with ramp to baseline seen with has to resulting Jefferson continues have increase XX% projects Exxon refined terminal channel these Jefferson XXXX, Motiva cross the quarter business refinery associated and rail business, by to the in However, Exxon Mexico pipeline EBITDA due to Jefferson in-service posting as and logistics another pipeline connecting been up in steadily to Mobil activity. the of an XXXX compared products in of infrastructure the improved to $X.X million. system, business

are logistics and look is Western and optimize crude New in we terminals new sources high prices for discounted markets [ph] demand refiners Local and of interbasin good products Jefferson refined and for XXXX, Canada lower costs. from to towards lining blends As Jefferson. up looking oil like for

Aframax Jefferson international this ever are first cargo month. receiving its be marine from the and flows inbound increasing Sea North will Additionally, oil

from and opportunities high for additional expectations line on of future. several inbound volumes marine sight overseas have in We have significant the near other

are discussions important not projects a dependent of making because spreads. two which barrels, on movement crude relating which progress they as to by pipeline. flow we trains, heavy well would of delivery are the unit upon lead DRU, Specifically, are move to discussions recovery as These wax radical cannot

we're of and integration seamless Finally, Repauno, would and movement supply products of into unique several Ridge a opportunities interesting other liquids regarding forward involve flexible chain. natural Long moving the with the which and gas Jefferson

for our Together term opportunities rise Repauno ready for capable export for local and excited and unparalleled for export with in increasing markets itself various hub Product winter. the Northeast, handled the end. enter And positioned firmly have to Region. beginning they and the distribution the season. the products this the the highly on security is Turning a of Repauno New Gulf and opportunities. of major from ships, for the various as phase propane of over the we're terminal simultaneously FTAIs for plans towards optionality providing butane at of Northeast and million in at XX facility customers. manufacturing LPG with Repauno outlined inbound movements market multimodal coast on and the at vessels hope barrels seas three under of all This we meeting underground with Repauno its we're plastic be is VLGCs. both is well one increased development or in the and By customer's stages the across long flexibility expanded year of eventually to several markets storage import port activity concluded Jersey, established for but will loading looking , variety the quarter, providing of with wind water to via with local on projects. the down entire handling blending markets complemented distribution waste XXX components States. staging by export development These and more not supply a to we including all rail the seaboard, the out type and further move available the advanced Delaware efficient docks, River rail, signal of Coast markets. deep international to also Beaumont plus Pushing only discussions needs Mid-Atlantic prime water new forward to and as XXX,XXX renewable in continue in vision, newest Texas, in truck premier and local also fall of terminal service a FTAI buy the regions. in by with of third to see of suite capacity, market producing wide multiple refined be conditions. North highly east available Rounding of gasoline recycling United outbound marine And terminals in high barrels acres movements by the size port strong also continued are was flexible levels products and by premium capacity first multimode plus Jefferson farm American distribution

basis the to as Long of into successfully power Ridge, which cash of being development in a XX.X by EBITDA our to utilized generate evidenced Long market. sold that million our is the QX was Ridge operating flowing to Turning now natural gas gas Most the electricity. on a attributable into plant natural QX. generated from business, the transitioned XXX% project has is now And was operating, production, EBITDA

is initially QX, to generate a are QX XXXX, recently, gas While taken underwrote expected the of $XX benefited Long $XX generating natural of even in result the market completing and and than QX a natural Ridge more ahead construction rallied we flow prices the gas $XX from economics in that project. is EBITDA million This month approximately have We together and million in of we electricity cash power in prices better. higher we anticipate higher schedule million today. nearly which of incremental than when

We’ve at year Our XX million generating like margin interests power locking an fixed from recently next for to years, industries price want properties EBITDA. also Long per that to in Ridge. seen seven in agreement intensive $XXX the of approximately commenced locate build and facilities new of power sales and attractive lots February, years

our power in we the blend be first into natural stream. to gas the Importantly, to track U.S. on hydrogen large frame plant remain

percentage to We will start X% over Hydrogen increase hope with in blend time. this December and a

American addition and a or with Transtar, Association. line is But I'll safety exceeding positioned to Transtar safety which is to win well rail start meeting Railroad President's start. his expectations. business are for Karns the line and and team safety from the and railroad our to short important continues Regional off now short to and metric an lead is already Transtar great Turning industry line the in Award short newest John another that

the be are expected Ocean deminimis July free tapering injury Transition million in and of off date, annual recordable number we to the XX to Since $XX EBITDA in company that the are All XXXX. railroads expenses to Transtar the and Transtar tracking acquisition closed, FRA XXXX. have projected. is

will next year furnace drive both to markets which shipments core, see us. steel to that profit Indiana increased material. improving at shipment As of segments support QX is margin and completed six raw steady could in Valley the steel strong is maintenance that we continue this for expected availability for robust the And and there to be believe business holding in sector Gary high November. running steel the plan are while number steel of a in year. shipments ship we Other which strong. auto, to full a finished of is outage Mon has And QX

we to grow party and new to we As million expect look EBITDA $XX number. the XXXX, multiple opportunities third

We third railcar acquisition name post hoped is had to and everything are just storage happening. In with two. car happen opportunities, opportunities short, the regarding discussions see in to we parties repair

considerable out we will be XXXX. debt and existing of assets Infrastructure of on to this two progress Transtar which the new will agreements Transtar refinancing $XXX approximately entity existing as and year entities debt down all million of infrastructure, In of in all entities we Alitalia entity an FTAI to completed trading aviation the comprised and to remit which focused Avianca are The related to Turning out the of and on on QX, SEC C completing us the spun of hope separation. finalized obligations as now project QX Corp totaling pre-acquisition made and December business fleets. the we and would the for part corps. a approximately and having infrastructure have be set conversion corporate retain filing level acquisition in spin-off before cash the and intends retain for of up year-end, or spin Jefferson, separate billion financing, sea Repauno, of corporate Long $X.X in documentation of Ridge those items

While financing to amount, we to this spin not be subject obligation the to monetize will at raising intend maximum the completion. additional

levels in conclusion, back So aviation progressing. in ramp to the up XXXX is

of lease to demand rates And shock from still we're AAR Lockheed straining rise. seeing our a continue Chromalloy, we're rise pass seeing for demand kilometers products for engine the well. leasebacks and well. the of And as Martin the result, Our growing revenue COVID-XX, as with as suite industry sale

are infrastructure to into company. infrastructure the ramp That these along restarted become projects full five with to we've us the three projects have give mode, years to spin now reality. up now planning Transtar As a about years which been ago vision is robust standalone ability for in

So customers. will at that in us to And to history, work FTAI’s inflection we're partnership this point for directors thank a the employees, to call and we're of at an with turn the lot time exciting of hard exciting cooperation that, the helping back outstanding point. some want everyone I great because I bring of Alan. and With and

Alan Andreini

call Q&A. now open may you Joe. Thanks, the Operator, to

Operator

comes with of first line from you, question the Stephens. [Operator Thank Instructions] Long Alan. Justin Our

is line open. Your

Justin Long

Thanks pricing on plans broadly you around announced maybe leverage start bridge for forward there, going for Joe, the deals the expectation morning. repayment talk more two to I a the financing could for aviation good well. balance and just as about and and wanted sheet and the the question with that the you

Joe Adams

so. Yes,

and wanted So to keep it flexible. financing, short, cheap that's we

XXX So will And a to any XXX, structured back that, that's which funding, one pre and facility, LIBOR year less I plus rate at that to time. little aviation. like from going the come a is to And, payable than XXX infrastructure over less goal of that than we less prepay LIBOR have XXX. our believe plus LIBOR million the be

So essentially a the basis spin on happens debt net at when reducing net a be Aviation. on

what immediately. to immediately that's so pre wanted we or And have that payable

very as we the wanted of spin, In of terms given business. maintain BB aerospace rating then stated and been that. on the we the the feedback leverage we've And aviation for companies for part good to

forward. of the think I capital we're I access outline And, said. shape, and have given to what companies going then in both good just would

fits I the of to part the So, and think sort out set requirements parameters it of with as the that we together all do spin.

Justin Long

the would aviation. level quarter think the assuming on get into Could utilization well love little and into you bit more And to XXXX, about Great. guidance as color talk you the a that fourth you as And about also of you're to to wanted also you next year, ramp XX next said on I that million the quarterly of going XXX cadence that's the it's still EBITDA. expected over how to non-leasing aviation understand million quarters couple know the just or to be but of so. provided?

Joe Adams

Yes, utilization. so the

had in to than we we started of ramp and a though, to up quarter. and we variant our little are engine it up XX% saw I equipment think was third And had October, we of mentioned, we primarily the exclusively in they which a lot started, I they utilization COVID. be. lot And driven really XX a to re-imposed on And we've but the sort being think who and almost it's airlines less got or and, of -- impacted gearing down what over by the Delta expect I engine in seeing lease. is We're slow take airlines the hoped additional and that activity QX, started a would lease activity. deals lot the market as of restrictions engines then signed, said and put now when November, the

think year or in engine a we're would we the every XX% next I talking to range XX% think to bring little really, that to and utilization year to utilization expect about airline and our up the higher XX% all bit throughout And with American come with Airlines, operate engine provide and importantly equipment expand and today to management engines our lot and Avianca, deals those relationships the did and of additional is we engines. ability I services. Alitalia, a looking for

very an we next to see are adding now So developing going market And businesses that integrated year. it's And growing signs people again the package. XXXX for be are and all nicely. their

also developed USM good we expect approved. the all not is because and exception of We've But very crude the year. the has nicely. our of businesses strong with yet of second terms In part products, momentum a had TMA

engines USM. largest down. have We year of are XX And one the of providers we and tear

yet. and ramp in think we when that surprising; for has not I that's visit up expect expect we of XXXX. And activity But the sales up that to USM. shop not strong see picked does, levels

So strong. think I that the be throughout quarter, there'll the think fairly year, it's growth but start XXXX but each throughout quarter, I to think going I

a ramp. it's not not it's it's So steep not a

the available, PMA, ourselves engine. from into are indications own the PMA is Airlines interested they're will in once of that In we our products, terms be those they're and our putting very

of airlines in shop us buy the are as with and others They now exchange returning shop. postponed a at to them that to and looking real three and be where real we is we out PMA, engines value and a they're could distress shop inventory filed, has modules number have probably storefront, today overhauled production airlines start also or products I've a scheduled. really or using our has of restructuring register. and will savings see begin of So parts to expect cash to by to factory the the all lessors opposed that ramp condition. through Chromalloy or upside, I as that's their combined, is are up a on we've application available. out before, QX said to then think year. the in have then we coming as individual visits selling our said in soon beginning big And are And preferring and of step we're it module significantly so can as airlines they run as that that's But we That's putting of number engines next because the number or providing airlines engines going of have

of So And module of three we margin. see together on products the a next as factory the all revenue be biggest we I a lot think upside bring contributor the will good by integrated. that those year

Justin Long

helpful. Very Joe. Thanks, the Appreciate time.

Operator

Sullivan Our is next from question Company. with Benchmark Josh

is Your line open.

Josh Sullivan

morning. good Hey

Joe Adams

morning. Good

Josh Sullivan

current the how just requested relative to are following a on first And the the Just just that PMA on as the guide and submission, moving pretty the forward has as curious parts tracking how's path? then of part kind what well? these FAA

Joe Adams

Yes, way. FAA that the similarly, the information being in very provided it's tracking is along

and review back engineering there's forth So a and data of lot of test information. and

So it's has there that's first these surprises been and Chromalloy no, at because that part no way then been very worked approaching there's way, products end. similar of that's, the and the it's should well the be

second part The is more than technically the complex part. first

that's probably data it's there's all more a little So signed all, it's reviewed we as and and manufacturing go. needed. bit engineering But off been

part the think I to first track, final had had should never similar a that didn't happened Chromalloy what they've the part get never approval and and very So that the submission confident, approved. is with should

so of early this, in engineering on it's, late So, are in terms in design XXXX. XXXX submitted and the and process to third, similar or would track and first I the, fifth part. to are say be very then the And fourth

those, Obviously, ones So started first. the higher those are and less more complex difficulty the parts. ones with we expensive

Josh Sullivan

allow those are? the you Got timing what it. in projects on And then EBITDA million elsewhere, $XX maybe crunch With mentioned remarks, infrastructure here in that and opportunities those maybe does the looking do on think side. those speed the to at one global auto the Transtar, supply And you up? then think the multiple I opportunities you're

Joe Adams

of driven of, provide out of be that be, new the every market over a serves service customer can about And We by are up. sort new project you occurred strong, many obviously, just can some locations. doing storage the U.S. dialogue grind could provide pretty adding a gradually a And it opportunities, step we them. industries different them have Steel good many quarter. repair rail get well. then had you if is, and see opportunities or is that you a right additional income Some away and core with spots development function rail in services and all and really that them We can it are

tend to up that rail did three you So happened when exactly And they them that, head. that's, to, that, come we pursue, is that's try sticky. XX the what and hopefully ideas and and four at can be tend to playbook those really with or sizable, to of America be

that's in it we're deja lot feels strong it moving So but but infrastructure provide, areas. going also of very with going be a coming macro industry Ridge. good for feels in companies around. Midwest, U.S. going it's good different factories in because like good stuff and it being and bill means what in have to the announced some who going which, that's and expand a they're vu to we environment like, of an a that to railroads, see Long see and We build is to And in be lot knows

good. And the got I So them. a is we're, playbook think on the we're going few we've of environment think I hit to and we're,

Josh Sullivan

time. the for you Thank

Joe Adams

Thanks.

Operator

Next, from Guiliano Bologna Point. with Compass

Your line is open.

Guiliano Bologna

the Good a I on question quick was, on side, part up to But I I approved. thing a different question about first have had PMA in of a kind curious topic. have have was on, jumping guess you follow the I one then a morning,

contribution to discussion you at a past And a bit orders do And on approved those general first first, think of sets to coming both those of one contingent that parts from second what sets. the being near of parties. And point of relatively that’s to after is have then order, probably you slow that's you're little that create third in part from in have I'm in and rollout perspective savings savings a can there are term? I you hopefully sense part airlines for lot sell the the is up just near get of two curious orders the going have of Second and of a if or a with parts lot lot come in, term. a the that

Joe Adams

you correctly engine, put put an point And to to shop, there through engine they an think want I airline's it so worthwhile. if out enough for are in Yes, make an the to PMA orders going it if sets.

part having particularly, were parts that parts, two program. important making, pretty second that we're is so And the to the the value high

so that airlines they sort think joined coming. of that know particularly I So, many they what's together because are for

than And the the without doing had to lot part rather decision it's part today why so one, and of and first if knowing second coming for say, putting they I'll wait a I shopping the not is to then a I'm make, in, so second easier don't just well decide.

So I think that's a the dynamic. and But It's every airline in big, to industry get and, a the knows very deal to, it's they're it's eager coming. it. big

is that of industry third think we is I are we as in So to it starting grow party backdrop as significantly think increase And will quite shop XXXX. most positive. and expect do the

inflation will if your also is there. delayed, potential and as some we can't an that'll get facilitate you alternative. shop parts drive at So significant metals have looking have out or because the also PMA you other that is And thing

experienced could price previously. have you bigger increases So see when OEMs from people

another I think dynamic So effort. could that's that help the

it's, I of all, shaping So savings I that's XX% provide. all think percentage, two the the parts up nicely. can then And that's that terms we the in of pretty think are first

parts of or cost the of of five this if half XX%, in So it. then total this the, is XX% are if XX% aircraft the

total the first is aircraft of So XX% two represented parts. in these cost

Guiliano Bologna

was move preferred or I That's get the about is to surging to one that. way if shares, judges of company if they And stay Got aviation, I'm great. the purchase to the That's so confirm to curious different one where thing great. about [Indiscernible], assuming invested you the topic. other, split intend it. with we a to but I'm

Joe Adams

Data correct. that's Aviation. Yes, It’s

Guiliano Bologna

the off as would of a some question being I -- structure a Corp. [Indiscernible] other to the think referred then And limited only using business you C not sort have assuming long was, I'm infrastructure offer that

Joe Adams

understand the I question. quite didn't

Guiliano Bologna

aviation using? And on is you the you're I'm mentioned what any going remove kind planning K-ones? structure legal assuming of the planning on side, legal to structure you're

Joe Adams

That a would non-U.S. a a it'll be Yes, be structure. corporation, Corporation. it'll be a corporate

Guiliano Bologna

perfect. great. much. Thank That's back And queue. I'll That's you the in jump very

Joe Adams

it So it does, K-ones. eliminates

a draw Just to line that. under

Guiliano Bologna

the queue. in you back jump so I'll much. Perfect. Thank

Joe Adams

Yes. Thanks.

Operator

with question Next Wetherbee Chris from is Citi.

line Your open. is

Chris Wetherbee

morning, touch want moment. Good Maybe to guys. thanks. for a Hey, Jefferson on

opportunity. you see the I sense the half sure I'm a some about some to about maybe of in get first mentioned there's DRU think ramped think spread we next And of opportunities how us or WTI the wanted year, of you business? Joe, of XQ, terms when dynamics that also then sense and probably we we as So kind EBITDA might pipelines. in what need to give of WCS, the But up consider kind FAD there. of is, here. outlook that

Joe Adams

we're, I Yes, we part so that, operating are to them function. obviously, mean, is getting getting into over, big pipelines everybody that And was of now the a operating, which great. we're and all And service try to them. use

numbers over water all of those and from refined just heavy them have mentioned, and or point comes of view, to world. we're groups we bring or So because sort of that they We need That to price wax it's discount improving in to utilization. Utah, try increasing and crudes two options multiple product or positioned And as train, we and point the Permian, blended from provide we whether oral obviously hit. our need, with all services to it to with Sea, the helps blend. looking from of the from it's optionality North by refineries the the and and getting an markets from to game that's, that's from pathways view, demand the one

on that's of And what this attention there. and that's, have of in of all get really all front getting two multiple And that. have question those of is we to to it's So that of, hit. everybody. a And our we focus of pathways couple or

on and So execute I'm need to when we'll, we is need going help environment we to we'll confident do it? to the get just there

Chris Wetherbee

be basis, bigger Alright, sort then at kind kind question. a that's of to given think on deployed capital us sense annual will think what the you of, of standalone, guess Okay. can what the picture just maybe get set to that the that as I I maybe helpful. size the want basis? has maybe this aviation of question When aviation split, a capital about a what rough post-split the we is is you ahead deploying give you be annual be an think of on of the And guys potential opportunity sense an you'd you a

Joe Adams

back, $XXX don't to don't year, we we look think I Yes, so consistently, say to tended million not XXX the because we've the about right budget if million anybody XX, been year, And beginning we historically, the and some of do on can way investing. engine focused between pretty of we're But we of transactions $XXX XXX million to what CapEx, the on, doing part to obviously. focused invest as although part you we that's want and really transaction. that's we've a we've the these CFM that what that always the is tell I focused we're on think think business we're now of add it's as

capital. Avianca, and that we on we're beyond and to our enhanced will be the going requiring not design leaseback enhance So, as additional follow mentioned have above believe I opportunities profitability Alitalia, American, sale relationship

degree most possible capital the capital. invest is goal try the the to to leverage not maximum So to to the

is invest million do a fee that keep other I'd any be a dollars $XXX we'd to getting strategic it billion capital, not capital. So than that million $XXX to business. of doesn't business that invest, the and and get service grow bring number rather and require year I'm and additional rather business

we about. way the that's were that's thinking So

is and goal in so based that. do think way I the capital to service efficient And the, use to degree as grow the possible that maximum businesses the the most to the non-asset

Chris Wetherbee

Appreciate it, guys. for the helpful. Okay, Thanks call. that's

Operator

question Next with Devin from Securities. JMP is Ryan

Your line open. is

Devin Ryan

but there Is their coming morning, good contribution that about just the of of higher I in of Thanks a first the business here. earlier dividend Hey, for to about term there? is sustain there obviously, back kind kind prices guess is taking segment? think a way been Joe. how kind lock kind one kind it, electricity some we of are question. where or they contribution was And on increased of the get volatility back there's Ridge. comments $XX that for now? that intermediate If to you increased with should reinvest longer, from the where parent, Long to that of the the then costs, million that to in the missed profitability I level to Great of hear can

Joe Adams

Yes.

is So initially, the Long And to incremental come the down $XX million debt. would cash into above view pay what and be will projected. beyond that we Ridge

debt. that that to going we're level, went more operational, refinance. the and look and think once look we the was to we'll live better always get rates And get debt. a may would I we we refinance At expected plant at

opportunity. there So and facilitated income additional is might having profitability. and by be a recap That is helped that

we always and out. right and it's is went we are at would, it's would we the look live, the We played time seriously And it's, rates good profitability and So refinancing expected debt that around lower Long at higher. Ridge.

So it's, things. good that's those are

of of all, first think we available. could everything capacity we of I in, In are we so to terms of contracted looking have we that's X% only do plants, XX% of locking at we

we capacity and megawatts increase up from XXX run level. at to We could XXX it'll believe also that potentially the

from we And So as production how gas megawatts. of another to increase looking there's monetize what we at can that some that. also XX have, well so then we're

incredible to don't of kind bit early. we a looking lucky -- take So an advantage until there try didn't, start what's little because we project February, we're market and amazing, to we timing, the opportunity the we at with got our everything hedges completed of

we through lucky not maybe is so. a to thinking of easy renewables the strong power people people the because environment. there clearly got And it's markets are pretty as were And that market that switchover as are the lot initially are positive beyond So with forward winter. the

So good it's a dynamic.

I advantage any more. think power to we'll we in and squeeze can take look look from to either refinance, opportunity and way add to that of out then gas

Devin Ryan

kind know then, you terrific. and working complicated are auditors. the also good closely Obviously of just it's businesses audience follow guys know the here process here. the up to with on with procedurally I see. Okay, And you the split another just I a of

is more have to done? it rolling to been that, of then And getting Are potential of that that from Or the one. sleeves more connected the from first the you Joe, kind run outside that So just timeline or decided it points of to the just and with things to the And that's both the can sticking following out? yet? it seems businesses? moving detail kind as infrastructure think going it and I up team? a the both there having be just has to smoothly. outside, management or guess or issues your going is you that, of some we're are about businesses, auditors gave of just kind could the like be related or lot same push are any seem others

Joe Adams

confident the question, Yes, more first debt we so issue we did biggest address probably we refinance are that QX. had Transtar the to the, we in which the certainly first was the acquisition

getting So, so transactional removes to done. the any, that spin impediment

because looking lawyers And so doing just it's he's at it's mentioned, as done. the And, we've now, and process, that you documents I'm Scott audits. the during and the

Fortress number an a issue detail has done on. or getting raised scans, I yet, otherwise a nobody lot has of be more wouldn't and

or So I that path good of there's to way no think on to there's would no, like it. it outside it's third getting And a any pretty execution. the get getting process party it's, in feels

that's good. So

likely a dividing me, Infrastructure not I that FTAI I and management we team. look of just and that There's hires, management that would will is otherwise. of the that of spin that terms around yet. define more Chairman In up somebody what detail have haven't was few know, indicated the I’ve that a but the CEO chairman which and for be disclosed is mean, spots be the But in will Chairman. I we it's some CEO discussion is will outside primarily in much

Devin Ryan

Yes.

Okay. much Terrific. for the Thanks so update.

Joe Adams

Yes.

Operator

Brandon We with question have Barclays. Oglenski a from

Your open. is line

Unidentified Analyst

on This Brandon. for is David

non-service little You expected about for you see acceleration talked bit a material. to the a

if could the think acceleration that you or you any that seeing earlier what do you do untethered think required Just to to And be early ultimately color would into this put orders XXXX? capital could business? you're more wondering some onto provide look like the beyond

Joe Adams

purely better I And think many our down. positions material of either Yes, our tear And generate how to initial think the in engines function services we is a teardown ability in that I or process. goal was new to we XX XX. have are want

So that we of that totally side control.

on have On programs three airlines that the USM sales side, we three probably have, for a I have have that would we And to say, are then or been so and we four done buying while. quite bidding. working large two

go you me airlines the say, serviceable price. you a and they used shop work then where with my maintenance we and And MRO we'll provide next with provide we'll and modules. will out shop to say So a and provide with and they for you with team up the five is material XX years give

independent be big, was the shooting of So progressing about we expect sort XXXX. consistent of OEMs been probably QX QX next be shop and what even referring have until think busy, ramp and you starting, those three, MROS year of to that's QX visits not we I it's is activity then up the pretty, what to And much nature visit have programmatic shop what and I say but to are the with saying we're would for. activity. too to see is which nicely. I pretty going And and are that of

next up and it and QX flywheel So year. it's think starting momentum we next, pick QX the is and of will moving

Unidentified Analyst

on specifically on talk split, think for the XXX it. in Thanks where the there? Could Awesome. I talked one. that going the are puts about how is about you funding the funding coming know million from you takes and you and And then

Joe Adams

debt. that from the be financing company, and the will of infrastructure corporate majority Yes be infrastructure, that all would vast

unleveraged. We Transtar, have which is we acquired, which

well. the infrastructure EBITDA the then as $XX of that's million of and businesses rest So

So it is also look invest asset be lot obviously there's a most some we the space, that, to infrastructure, capital sales, very raise funds good debt, of and will looking provide for potentially are infrastructure market at of a which to capital of that in so.

can look a things we don't can be have do and process and So of it, that in we and next QX run to stage it's, process the we'll coincide we'll But at to of so run to optimize months. in a look it. delivered sometime over we year. to next of other six had either and But spend preferreds all sort full

Unidentified Analyst

Joe. I appreciate Great. the Thanks, answers.

Operator

BTIG. from Lewis question is Next with Greg

Your line is open.

Gregory Lewis

a morning. little Joe, good touch was on could I And you. thank bit hoping more Yes, you you infrastructure. could

Like, in invested quantify guys of little capacity is like or seems kind way go spending markets Is built there. know think right to on more is there there inflection It way think of the revenues there don't a infrastructure any right is like about any we out and I lot without as right the the of the think have to As we of money oil Clearly, if Jefferson going incremental you a about actually about what's of word at Jefferson. utilization volumes with there, spare and driving demand. efficiency, to money? way now. starting finally, facility terms how much bit out like, kind the any in

Joe Adams

There’s probably there. storage right XX% is [ph] would utilization that I it’s availability XX% probably think say now. about XX%, utilization Rail, rail right? I Yes, is also, like

it utilization And probably what additional there's, XX% XX% is. pipeline is So there's availability. of an

that availability. And getting term to XX% is really we're what focused there's built. exactly that's So on, that that's, volumes, been fill infrastructure exists, already that's near that's

is that goal so without is that any up capital. additional And is to the fill to

Gregory Lewis

kind on And in spreads what is, I what really, North just the just going really throughout based driver crude to it's various sea. kicked that's around of whether mean, the you be of call are a

potential just Is tanker and growth mentioned, the that incoming WCS? thanks? at that feel way you mentioned or that kind of to you Aframax, that right the So

Joe Adams

steady that, coming in from is So part And basis. diluent mentioned you a other recovery unit a it. the that's volumes would of for so on be, part is DRU or Canada instance,

you you probably three can, that's XX,XXX bring with train today, one. terminal, additional in the barrels of or if you and could in pipelines, blend two if So rail that one to from DRU

a with ratable So those, get the and that's existing hammer to are from be the potentially a one, flow you move, of the trying like those day to out, the the particularly cover can, that's just to and one And a And deals that spread we're opportunistic that lot volumes XXX,XXX barrels then capacity. Aframax business. that leverage.

Gregory Lewis

Okay, much. great. Thank very you

Joe Adams

Thanks.

Operator

from is James. question with last Raymond Our Robert Dodd

open. Your line is

Robert Dodd

getting distribution deals. deal, we on ask this for etcetera. at funds On new when deals, put I'm these the going When congratulations and Transtar available development. to put the guys, we on aviation look aviation on new Hi, about

and spin of be off dividend. math, obviously time, heading At the about you into going changing two coverage one to the to know a You're next then by structure to same year. my the corporate we're

where would right? the give if that or dividends one appetite the on is from an relative what what plan us you'd it to the outline be gotten the compared those you different pieces given for dividends is pure both expect scale and you that for you've could the be single what So of to play maybe

Joe Adams

to each to maintain Aviation of balance distributions to Yes that's of -- right think of the now the or more order to the dividend look and guidance so not will can at and give FAD funds would $X.XX, than precise, dividend one the goal we come it's best the increase from is magnitude as that's, XX% our the you that that is, thinking. entity believe And to our existing we but of the going be so been we I XX% from point exceed available a, will coverage. one that each two infrastructure which two then so roughly FTAI of have roughly kind that's and for always entity to extent the extent then has out we

of split point. they'll entity have that a each So then attached grow and XX:XX then differently of the Infrastructure continuation different policy, being trajectories Aviation existing at roughly the obviously between and instead dividend will it's

Robert Dodd

really it. a Got Thanks I lot. appreciate that.

Joe Adams

Thanks.

Operator

the turn to like would I now call Alan back to Andreini. And

Alan Andreini

participating today's all updating conference We forward for Thank look in to QX. you you after call.

Operator

Thank you conference call. for today's participating. This concludes

disconnect. now may You

FTAI Aviation (FTAI) 29 Oct 212021 Q3 Earnings call transcript