FIP - Earnings call transcript Q1 2024 | FTAI Infrastructure Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Q1 2024 FTAI Infrastructure Earnings Conference Call.

[Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Alan Andreini, Investor Relations. Please go ahead.

Alan Andreini

Didi. you, Thank to First like all the to I XXXX welcome Earnings Infrastructure Quarter Call. FTAI would you

Joining me here FTAI today are Ken Nicholson, Scott the Infrastructure; the Christopher, company's CFO. and CEO of

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

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

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

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

Kenneth Nicholson

our good and the earnings of supplement, will for everyone. the I'll referring to Okay. XXXX. so, website. be to very much, first And our which financial Thank you recently Alan, This we quarter discussing morning, morning, be results in posted doing we

record the XX. $X.XX XX be into May on financials, to paid that a to of per the getting Before dividend authorized pleased May holders to Board quarterly report our I'm share has on

the results. to Now on

the with came in the Terminal. impact from up of first quarter exclude XXXX onetime at of several and you for EBITDA when the expenses line in $XX.X items at million, to fourth XXXX XX% First adjusted of Jefferson prior quarter our largely EBITDA quarter corporate

Ridge, which talk while was longer-than-expected at generator quarter by impacted steady Jefferson continued shortly. Long a the Motiva about strength flow results cash maintenance driven and I'll Transtar, refinery, operations more our for biggest at were by performance overhaul Our of the

to forward, Looking new we initiatives, implemented momentum year. business multiple companies last continued which as demonstrate result expect we across of wins QX a and our

forecast rate XXXX. $XXX excess of to EBITDA continue generating during run of million We in

at only business In $XX.X at Transtar each P&L the in terms receipt to year. our XXG already surcharge XXXX, several begun momentum Transtar year EBITDA generating after of fuel expect in the quarter come. the average EBITDA of and repair the in to each timing new facility, continue increases segment, revenue. tax and of the posted to records have which fourth adjusted an and quarter Operationally, of had having posted credits, highlights for in Transtar each rates million new would contribute Pricing carloads, excellent we in adjusting new hit of activities, so including railcar record

EBITDA million $XX for reflecting Jefferson, estimate have we Had $X.X Motiva refinery. stayed maintenance would million EBITDA steady, was overhaul the at At Motiva XX-day exceeded QX. the in operations the quarter,

and XX% the made we ever results reduced gas transform recent And will has Ridge revenues expansion significant behind given our as operations third-party well factor Phase Long and at consistent record QX. long-term environment price natural reflect gas. operations most X posted results our capacity project that than the case record on generation. sales lower volumes are a At and progress outage EBITDA us more finally, of Jefferson as the month on for With Repauno, post active in us, business April putting at

data the the Ridge, center from creating be is meter than particularly demand and for We about believe optimistic behind stronger prospects customers substantial our ever. Long continue to for extremely opportunity AI at value

was This fuels debt week, we unchanged the to of signed Repauno. was at debt quarter. units. $XXX segment last rest portion $XX South was XX dock at sheet. to site Total portion new our at continues balance was $XXX with the and the level, of year. debt the Transtar debt to long-term million proceeds on debt a Briefly from be of approximately financing at our used construction at connection with our at improvements to next while -- year was plan in Jefferson and million new while our contract launch finance million at Jefferson a last we March of our debt-free, debt the existing business billion corporate of $X.X clean refinance of completely due Jefferson coming

value tax-exempt aggregate allowing reduce part also our increasing bonds, of balance If we of Importantly, outstanding coupons. lower some will advantage a some carried to to our debt our incorporate tender offer a the offer equity financing, as enable us which successful, of the debt, of to cash existing in take discount flow-neutral of the plan Jefferson. ultimately us embedded upcoming opportunistically manner, tender the for Jefferson in

We expect May the close couple in or weeks late the over and of June. market early next be to financing in the

QX, with P&L to We're consistent Had our another impact rate I'll at of progress with last this making revenue versus adjusted every of QX received. year due opposed posted million expenses higher adjusted the segments, on spread the tax in car fuel million EBITDA $XX.X also of as record first $XX.X and which tax quarter credit been QX the the initiatives have in expenses Carload near and now Fuel diversify Southern it The on to slightly X Norfolk the supplement, experienced revenue commercial the revenue in additional customer with plan in million talk result. given dynamic our million a with turn would provides versus fuel our drive quarter. great extension various have over QX. way that new a all $XX.X in Transtar's revenue typical midterm. a extension Railroad. records QX our of Transtar these Starting our over entire to QX, we XX-mile of been positive and were to opportunities, meaningful X, with hit contribute and EBITDA in East through XXG then year credits, EBITDA total compared the In record came in lower commence being for we potential volumes, Slide in On Valley $XX the I'll incremental of June current year. which to Transport Transtar lag expense lease per surges average detailed results we and Ohio base. and questions. QX to to at of each EBITDA will of

an these at million basis. represent Transtar of together to ones similar We $XX opportunities railroads new with or million expect to million on $X other EBITDA approximately annualized quarterly $X

Now $XX.X of revenue of and and $XX.X QX. on in of million million of to Jefferson generated million EBITDA adjusted revenue million $XX.X $X.X EBITDA in versus Jefferson. QX

returned record quarter, QX the per over us putting record in large of the for to QX the have Has of barrels pace Jefferson's Jefferson, overhaul throughput the throughput undertook to adjusting driving During saw XXX,XXX lower EBITDA would volumes result and volumes normal, on at a the during end Motiva we of day quarter, for a revenue new By unit exceeded temporary and the of crude in XQ maintenance month when turnaround the gain its reduction distillation The Motiva crude for XX-day sale. volumes ahead. monthly was quarterly not been coker. record April, on and a overhaul.

well More Jefferson as both clean, as new remains advancing conventional for fuels. energy more products importantly, business opportunities environment the at we're robust, and hydrogen-based

commencing addition $XX transformational contract XXXX, for in EBITDA million progress to of new approximately ammonia projects will on we Jefferson. together in the ammonia year's last contract annual of advanced with and good made In the and export X negotiations, additional represent be for which, XX-year transloading

our wins, As we these far quarter, annual last $XX prior opportunities will of business million to in EBITDA. successful targets if of converting we said exceed we're

Briefly system. on with complete X our Repauno, with transloading nearly are operations in continuing our negotiations Phase Phase larger X connection

million terminal. Phase $XX annual and X construction tax-exempt immediately we in the first quarter thereafter. X approximately at X of confident of expect quadruple capacity second we'll with here In expect EBITDA build liquids once sign complete. the approximately entirely natural the debt to handled to gas our $XXX We for to customer Phase up cost start the and generated million I'm aggregate, Phase funded

EBITDA prices gas is to and environment. price the we ground. lower gas our keep at MMBtu, under meaningful, In to capacity XX% closing million QX versus out plant in million with down in Remember, third-party $X.X the sales the continued $XX.X profit $X.XX operations opt in quarter in during production QX. limit Power on Long gas Ridge. Ridge so Long per production of the gas be less excess managed at generated steady factor, were while and currently

at importantly, advancing will handful with power Most on-site Long we've which on actively significant impact have significant been positive a of Ridge, EBITDA. a opportunities customers

gigawatts of data for long-term capacity. currently LOI data what a nearly from On is power of property portion X our demand region intent the be we of next a and is X a to power We substantial of in center needs key binding of execution years. XX continue with expect agreement. center of over under a PJM alone level, projected a towards The developer to the letter gigawatts the macro go to X the step utilization the lease to

have of and continued sufficient demand the the over reflect gas call be modern our not expect the owners like this plants quarter with Ridge and ahead the turn benefit pleased years. simply will back quarters the we're potential resources wrap up, to I'll renewable To New to in greatly meet to momentum. QX Alan. coming to Long efficient and

Alan Andreini

now Didi, Ken. to Q&A. you, Thank the open you may call

Operator

Compass from Instructions] comes Giuliano question first [Operator Point. of Bologna Our

Giuliano Anderes-Bologna

It a progress guys of around looks new made initiatives. lot like

to great see. that's So

achieve be were I'd of what on Ken, terms end think the Jefferson up on you're stand to As and, curious that debt doing what the first to referring complete do little transaction. you more terms the trying transaction you of in new you that in financing end the if to discount you can kind capturing back question, a of

Kenneth Nicholson

some as financing near are some very, in term, financing coming their extend in as XX take left taxes our result, and have to say, prior to years X is due expect discount perspective. advantage to of that's of embedded maturities certainly market very But debt going the existing as that bonds. in bonds that them have low long a we Many have XX hold that today, those X.X%. a tranches trading and we of At Yes. Purpose as and of to in put X% The to yield debt year. I next -- just maturity. on here next a a a said, of to X% And launch let's number we're refinance of we part duration, at, a of tax-exempt so And days. the the few to coupons handle. are Jefferson very

discounts trade so And to they at X%. yield meaningful in order X% to or par

at tender So there's to amount. their bonds but for level, opportunity deep a trading for significant par discount a current to their premium still to us at those

tender Depending able million but is the the between we the raise the old And Jefferson, upon back million. effect so and all new issue be proceeds debt that what The it we to a flow might think lower at tender, we'll do from buy of impact price. $XX of debt. results cash debt the amount net the significant simply $XXX reduction discount in on is is much to capture X somewhere at to a and

Giuliano Anderes-Bologna

Long as center curious, Ohio, little a bit demand kind far epicenter data terms little the That Then to be seems meter for if of Long center demand potential behind been of helpful. the but curious I'd opportunities Virginia action as that taken at there's a over you're side. further. in of Ridge. with demand kind of appreciate new seeing is Ohio over of very move the in a for being data Ridge I it center lot that. like I'm data with stepping

Kenneth Nicholson

we multiple the a few into AI see from hour. would grid with infrastructure engaged generate We we're past today, is an companies at in months, we as of just activity power, kilowatt say users. big Ridge ultimate mean I per the calls well seen data or that sell significant Yes. definitely under extremely of I produce At got to as over the some pickup I and develop the and just it say in megawatts increase the $X.XX the definitely inbound centers. companies -- we've today parties, which encouraging. the XXX is math, compelling. Long The

AI Long a revenue give dose to rate at cost data behind-the-meter just $X.XX you of centers centers. Ridge. of economic today data hour of about the sense just generate impact per customers and kilowatt So power going of The for like under is $X.XX. We the

what material is of we today. generating Xx no are generation. in increase There cost almost the So

the math. just on or EBITDA. If power you that so is a kilowatt anything is an has million. to hour, Long on can annualized basis, $XX mean double $X.XX EBITDA And per impact do to massive I about close we at the get Ridge. triple today plant from EBITDA would $X.XX

obviously limited We we set Long available. it's a supply. It's and really macro, So has up, huge strong opportunity. like like to Ridge demand, great what

So it's the for a major priority company.

Giuliano Anderes-Bologna

That's then Jefferson. great. shifting over to And

when You with contracts opportunities, or any obviously you're look pulling on new have a at the of I'm on pretty additional those or that transloading I are related big there? opportunities curious pipeline new million those specific $XX focusing there opportunities. commodities

Kenneth Nicholson

are fuels, of and X in say, conventional Yes, X clean yes. fuels. crude X are There of oil are would them and I for for derivatives contracts, total terms

the In more terms materially of are volume. contracts volumes, clean fuel

percentage Jefferson of are with a basis, Those what are and carbon those pretty shift cleaner contracts does deals it X new fuels, Jefferson ammonia, contract terms product of at the terminal, of are But and existing and which One X at with whereas advancing ammonia, for South, good are at clean both blue the customers. main customers. new is -- with other are are crude has we derivatives. those free, signed in for the been their rapidly. contracts a products, those South generally toward to the on a thing. meaningful crude handle. mix like Jefferson So There's is

I a at months a it's final think a stage. where at from we're away that having point few

the will And ammonia will a gateway think largest of contract export the this is already blue just I do that. It It be ammonia promising signed first we're export. new so very with about Coast. the that excited Gulf Jefferson in for South for energy we've as clean be hub.

get we're so And to excited going. project that

Giuliano Anderes-Bologna

That's very And helpful. then to shifting Transtar. over

third-party then where when acquired 'XX. of business you on the working parties been end there. percentage contracts Transtar, that go curious, the I'd be third And obviously could by from of going You've what now? you originally is do versus think

Kenneth Nicholson

part any largely it of serving not the discouraged from third it was was customers existent I handling just not when of acquired mean was U.S. Steel. deeply do internal business for subsidiary U.S. company. Well, parties. or not any was work Transtar that an we This to Steel named

say parties. So of it was million single I -- somewhere and Today, $XX digits of parties. revenue it's we're between $XX annual at from to want third million revenue from third

long-term end we triple number. of the is or $XX revenue to about Our that third-party goal year, year. this had By every of million quadruple incremental

end $XX of year, So revenue. to million running this at about we by third-party should $XX of the million be

Giuliano Anderes-Bologna

remarks. it I That's curious, actually just very helpful. prepared quick was The just miss didn't thing a follow-up, in the one

around You anything mentioned that That Norfolk time there. I mentioned potential And was that. extension. curious a Southern the curious line if XX-mile I'm was only thing you around about about

Kenneth Nicholson

track. with East current NS -- is relatively Transtar's been a over for we've release the that connect short uncommon negotiating in with Junction, asset of this to in NS is and take short we Ohio and The hand Mingo lines -- or Class lower over lines we The Railroad and railroads. up their Yes. to some get Xs regional rail Valley density not to

in which already the the track thing. It's maintenance X, few own. be we expense. that we'll maintenance over rent obviously take portion we the and so no actually June minimal weeks, operating that itself over paying in line, take handle a line. handling just a It's will good a on We're that line on we'll of of just And is almost

of from trains Norfolk to actually freight large straightforward. negotiating And assembly important located development Southern. Junction, most new that we loading then track. the the been on a can off of in is we've to leased so there's transporting will trackage additional up the trains opportunity NS, a handle the for and where that's interest Mingo the with hence, hand that So counterparty, taking What's relatively over

track about several over it imminent, the So we'll the in is excited months, coming taking that been now It's it. for in and be works but weeks.

Giuliano Anderes-Bologna

very helpful. X-K contracts very a central one you are And or are you've final I'm And contracts Jefferson curious one, both enough That's that obviously large of release at Repauno. events the types large press if to seeing number discussed and of then events. be

Kenneth Nicholson

Yes. to Yes, generally things. wait until quarter the types announce of those

press reporting I think and these give rise by meaningful there to a a enough way them are of projects handful of probably that to X-K. are release intra-quarter

our the of I it's a and minimum contracts which the have. have with negotiate think volume the we today and just certainty the of all will all contracts of combination the size transactions commitments, duration,

think a some do that do it's likely described of the issue think to I make they're -- likely to upon a it's those earlier, we'll enough relates because execution as release so. we'll I press of I So it more projects agreements material

Operator

now Q&A to to This like Andreini remarks. Alan back concludes closing our for turn session. it I'd

Alan Andreini

and look joining you, updating We forward you thank today. Didi, after for to all QX. us Thank you

Operator

conference concludes may you call. for participating, today's This now and Thank disconnect. you

FTAI Infrastructure (FIP) 8 May 242024 Q1 Earnings call transcript