FIP - Earnings call transcript Q2 2024 | FTAI Infrastructure Inc.

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Operator

Good day, and thank you for standing by. Welcome to the Second Quarter 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 [ speakers ] today, Alan Andreini, Investor Relations. ahead. go Please

Alan Andreini

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

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

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

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

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

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

Kenneth Nicholson

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

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

results. the to on Now

of quarter slightly expectations adjusted $XX.X the up million, XX% performed or to quarter. expenses quarter up for from XXXX. continued corporate second momentum ahead and prior Each of We of businesses EBITDA in with the XXXX sequentially our first in line XX% recording the from strong XQ, of of our

continued capitalize underway demonstrate wins X as XXXX of the have half trends. series companies new expect a Looking forward, momentum second a to across result on of to we we business initiatives macro of all and

Repauno always spectrum has markets in to incremental thesis to new broad positions, with flow assets, a the of and today is or core of growth. inception of companies our infrastructure Our whether for Ridge control strategic at believe a at upon we data and and long-term opportunities center Jefferson of centers the Transtar, surging demand largest company. the flows to contracted strong and at growing since list drive Long energy portfolio opportunities act through it of our major opportunities been set power cash competitive of own is our

forecast of XXXX continue of million an annual that and EBITDA of result the exceed in We $XXX excess XXXX. by expect to end meaningfully rate to run generating

posting segment, each million while rates EBITDA. highlights of at of of strong another terms came the held quarter, steady, for Carloads adjusted In another $XX.X average delivered record. Transtar new the in quarter

The the second of railcar in full operations Pittsburgh. on a the repair facility quarter quarter Union at first represented Railroad

EBITDA meaningful handful number as new as grow business. development customers of to QX. we represent Also, car others customer continue facility this third-party expect a in at for growth in We to well a adding base the Transtar of repair our

oil we handled At averaging per and $XX.X quarter crude million Jefferson for EBITDA the barrels products. day refined was as of XXX,XXX record volumes

financing. At of is and when tax-exempt in refinancing to in offer multiple close at of positioning Jefferson third start the tender a we contracts preparing arranging financing Phase funding place accomplishing on During We're projects Jefferson's objectives, construction and landscape this commercial have the number maturities, are quarter, a discount we we completed bonds. near-term including a construction a existing of us for process X new Repauno, cryogenic financing quarter. favorable, the our tank at extremely in to the all some funding

finally, third-party week, coming not asset. capacity sales for in auction share driven higher surge for XXXX approximately to limited data the were the May at alone in a in current XXXX demand incremental asset by made of EBITDA million $XX for bit, and of reflecting the inherent season. include at in centers. maintenance talk XQ but public, represent Long detail or level in for the outage a do approximately in results and $XX capacity our power I'll results the Ridge reflect XXx but This for AI-focused capacity XX% of more million the results the capacity recent gas scheduled pricing Long And tremendous upside a than the Ridge auction

Briefly that accomplish million to $XX debt-free, us million refinanced on Transtar while at next debt of in and $XXX while the The We at the First, XX, at existing we approximately had the due balance financing sheet. Jefferson debt of billion completely $XX enabled of million at X portion Repauno. QX our total debt Jefferson rest and June was a our units. year. level, we've $X.X be to small continues completed was was at coming of corporate was business to debt of debt things:

outstanding which Second, Jefferson's discount we capturing coupons. funded X activity carry construction And and recently of third, lower we in of the with trading some bonds, funded in tender tax contracts. signed connection offer the

additional tender in more the quarters offers and discount to equity coming We Jefferson. capture to pursue our opportunistically increase expect value in

and carload. of QX Transtar it segments talk compared I'll to $XX.X of plan our revenue steady Starting the while of turn adjusted posted in new held adjusted then each with detailed the over questions. of volumes per EBITDA Carload $XX.X $XX.X a average supplement. to Transtar million Slide through X rates and record at on of registered of $XXX in results with QX. million million and EBITDA revenue $XX.X of million

stable material quarter. were Operating the unchanged fuel for strong of U.S. items activity expect were as steady for second overall and customer to remain year the expenses We levels other with steel the environment third-party largely this half during carload costs production and growing. cost

making quarter our at initiatives we're Railroad. our on various new customer facility our revenue railcar incremental good repair and operations union Transtar, our progress diversify of to drive on first our base. was At full

During the XXX of a total handled railcars. quarter, we

outlook, per Given X,XXX which second shift the demand to to facility, now quarter. cars introduce at handle the up provide will preparing we're a to capacity

the of we revenue quarter, more continued diversifying to During dozen our half add customers year, third-party to new add half expect further base. the a second and in this

in multiple for us, X, on for have opportunities a The a growth the parties. act With we're a finally, near midterm. of to platform the up is Norfolk front development extension would or June current our one hope extension provides organic engaging additional of the And EBITDA staffing lease good and on more strategic to quarters. contribute increasing Ohio acquisitions for XX-mile we Valley coming commercial we our East with other and potential excellent Transtar's assets, of path line to Transtar an opportunities with Southern commenced in team Transtar Railroad. the in short and on front, rail focus corporate regional with meaningful

the in with Now million in of X/X products Approximately the revenue on new rates was oil. and QX at X/X of million came the versus volume We refined other to of EBITDA crude was XX-XX. our mix million Jefferson. volume quarter in crude, higher Jefferson revenue million for records. generate approximately generated $XX.X $XX.X revenues for in so handling Both EBITDA throughput QX. adjusted revenue of $XX.X in and

We see bullish crude volumes continue future. to in a and waxy from about of pickup Utah the

the became to Jefferson United load XQ, the for export. In in first terminal States waxy crudes

gateway business occurred cargoes the ship create extremely Following attractive, more at with Jefferson in requested The fuels. opportunities that and through initial flows capabilities, that consistent waxy energy for and handling clean unique both as to producers our additional a exports, Uinta Basin customer international loading, well we major are to we're remains during markets. for the long-term opens X crude quarter. With successful the conventional Jefferson as products environment working Jefferson new advancing

long-term oil, the recently million flows our Southern relates EBITDA. of the contract will export and XXXX, Star of South pipeline. our Two $XX One commence terminal ammonia other executed annual relates clean through Jefferson to at to crude contracts in representing

revenue More Jefferson. are we contracts representing of currently now for additional will transformational approximately annual that million importantly, $XX negotiating be

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

Now Repauno. to on

Phase X Phase operations preparing transloading system. As larger continue, X we're construction much of to our start

for As of to have X that will day tax-exempt construction are costs XX,XXX at seeing, result we and accommodate higher million, are debt. capacity products. of $XXX to expect $XXX up entirely the gas a demand natural now Total transloading of be other butane increased scope propane, system we per funded barrels including million liquids, expected with which to provide expanded will Phase and Phase X volumes the

that X annual utilization $XX meaningfully contribute currently $XX on of full once million EBITDA with being of can contracts Assuming approximately expectation counterparties negotiating and are than finalized. more rates Phase based complete, million our initial we

out versus closing million Ridge, Long QX. in million Ridge Long In QX in $XX.X $X.X EBITDA generated with in

of have Our were for plant currently Ridge the for Long of through Gas environment. the the the continued quarter quarter went exceeded not scheduled down was power production as EBITDA the QX. month for during outage, be plant factor at price the capacity gas lower XX% the maintenance would bulk May, to managed maintenance in

results and current announced at to significantly have This Long of period XXXX flow the increase a capacity at experiencing X,XXX% potential nearly capacity mid auction More Ridge. importantly, the for reported a pricing. were pricing mid-XXXX with number we week, been at EBITDA developments increase cash to versus

new increase to centers in our Ridge in annual the factors, for just power for $XX retirements today, line. with is the To $XX under data demand to put Ridge AI perspective, of result incremental plants. capacity anticipated result bottom dropping of several million in our surge that annually. the million at environment, coal-fired the generates capacity pricing including XX the season in region revenue of as million will The $X a be revenue Under power XXXX Long a of entirely and pricing Long

environment, to or Ridge, remainder To projected the of continued PJM our directly lease potential gas data good available next benefit we're expect plant for plants we and center is coming X Data years. benefiting of Long quarter on landing exceed portion meter utilization power a we to in continue progress own the years. power efficient, the reflect adjacent to higher have XX pleased ample to center XXXX the acreage the the in of more demand readily Ridge property behind up, one and and on-site multiple tenants the generation. like momentum. been parties At price we're from greatly While the wrap over have gigawatts engage making region the Long our with also with projects. capacity to substantial of for and

the turn to Alan. I'll call back

Alan Andreini

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

Operator

first Our will Instructions] line from Point. Compass Giuliano from the [Operator Bologna question come of

Giuliano Anderes-Bologna

see It's great making continued all assets. progress performance to the

First third completed question on stand you revenue Transtar. I'm was the curious a we're compared party at where what acquisition first revenue third-party of to today? when percentage Transtar

Kenneth Nicholson

Yes. When revenue the of next revenue And U.S. came XXs. it of coming bought into Thanks, the Giuliano. business, About the from We're XX% we'll in base. we it was I largely was of -- Today, low we Steel Steel. below are year, down revenue Steel. think be entirely a by XX% out U.S. almost the XXs. U.S.

further our Our mid-XXs X/X business successful Obviously, U.S. focus which customers. the that making of something the acquisitions, Steel we'd is remaining the third-party ultimate goal increasing we're get from in from organically on, derived to is revenue business base. if something to and diversify we're the

Giuliano Anderes-Bologna

And helpful. [indiscernible] very thing. [ the That's Transtar ] then

for ]. ]. type Transtar curious of And talk looking any there's if [ particular into [ I'm mentioned to You Transtar potential shortline

Kenneth Nicholson

industrial liquids switching everything. we we've at is like on somewhat as is a we more in the focus in similar of are -- revenue -- that in tend because to further that of we've think that lines. asset I look energy nature. that differentiated overall some look nature do, Transtar we all we And at one concentration at have diversify that overlap such a properties to actually looking don't have are industrial mind in Steel switching that got of a base. Transtar assets a agricultural lines, But we amount rail may I course, the entirely regional nature would with ones that does buyer U.S. fair We're base We, individual whatever we're any or area businesses say which large is

concentrations higher And commodities, shy short-line from so slightly in better have may while others that away we more find that or for customers railroads us. fit actually

Giuliano Anderes-Bologna

[ the I'm having value switching you And That's then on Repauno. Can very to you curious helpful. ] [ think ] approvals? on caverns And then end update over up cabinet Repauno. impact of what the could us the approvals

Kenneth Nicholson

cavern there. half in cost definitely I maintenance the of the mean, a value for been of be huge lengthy we're eyes be process, driver. caverns. proposition going some well couple bigger of Well, of mean out I industry be half are storage that's year, during our caverns I no but the getting there's mean, the a of permits the new partners It's ] other build, Look, of players it's construction able right? significant. driver, the as in [ storage, particularly -- the we'll into to involved, some way the this to look, fall, aboveground the make value it's -- get takes those strategic and second some the a cavern it we start our -- will we'll storage years a permits to out of XXXX. versus the build aware value to massive on

So it's in priority us for a ways. many

upon can work. financial get ultimate the to that size making depend will sure we we we now, focused right final on permits, contribution cavern of The and we about timing just are the get build the

Giuliano Anderes-Bologna

-- very Long with a it's over auction. ideas sits if That's Ridge. curious impact are maybe capacity from that the factor having I'm then customers. you're helpful. results potential negotiations a that And last

Kenneth Nicholson

the of definitely. whether it's The leverage other it overall power or data cost throughout it's centers customer. with I behind-the-meter definitely, the sector, any increases Yes, negotiating our increases think customers, meter behind

the are other meter non-data We center behind talking customers. to

environment, thing for own given up, good going and that's are we they're because price go a to very us have not escalating unlikely costs, an our We gas up.

And a demand so price is environment of an very thing lot for with increasing power a efficient us. for good new

excited about we're So it.

Operator

Our from next come the will of Citizens Brian JMP. question from McKenna line

Brian Mckenna

Okay. Great.

kind you will online both $XX to have EBITDA. on generate of that year contracts that these a contracts? million for the initially commence? contracts of ramp then When $XX a on of coming next or come So earnings million these? average should Jefferson, X both we full of few ramp? questions fully first these will But what's on rate hear we about think it's great to How duration the And assume the Should through will we'll more take run quarter or this.

Kenneth Nicholson

both commence both -- next -- morning way Brian, They year. Yes. good by the they

of the through on minimum commences We of at The that representing have of -- next is contracts. project and annually. year, pipeline $X go EBITDA volumes contracted kind I'll X expansion April X million

and The EBITDA. at So to forward. we $X would expect report years of $X represents million volumes, the on million export project $XX that of year. And minimum Jefferson commences at XXXX then X million annual next ammonia in South in July

and $X to year So million years EBITDA we'll $XX the for then experience million the next of come. full that

those infrastructure the duration, very both is X-year we're out contract, The to they're we entire flows volumes project is under a pipeline at the contract great contracts a to the for build stipulated are the for the cash their required excited. compared capital XX-year export ammonia contract, is contracts, minimum low

we is as start in, no those up. soon It automatic. kick is there As ramp commitments

both we rate be EBITDA so place And next July in at million will run contracts X $XX the of by year. with

Brian Mckenna

debt a with there. You obviously the Okay. Switching the little of did Transtar balance gears in I where about no sheet? helpful. there. broader Jefferson But you bit. down know the are Super balance things I at terms of XXX% with refinancing of couple sheet? debt what guess a own you

-- are cost [ opportunity the of and over So preferreds time? thinking leverage you ] then there that the bring is to to down how asset an capital about

Kenneth Nicholson

Yes.

accretive and second the in in an XXXX. it's mapping good reduce provide more flows, the a of at would us as momentum a cash out costs, I are some contracted it, of we opportunity Strong here for mindful highly think half that point very are flexibility And very credit business, well. it's We borrowing lot story. refinancing a

a of from off we'd company restrictive structure FIP when than I a in like as capital capital result, was was put a looking more acquisitions. as growth Our slightly place at have And bunch to structure and spun a it's think FTAI.

an do more free And accretive so we ourselves really some and have things. up give some to flexibility capital opportunity to

is Transtar certainly is an leverageable. indeed, Yes, it and amazing asset,

very debt going the to [ a ], terms. us ton enjoy Transtar out of amount put don't of Transtar we're debt We you'll be prudent. attractive think see our there dividends down on Transtar. I have capacity pretty I to up But think seeing company. coming small of certainly is parent a at to

And do so August, the post something our But Day this typical likely of Day, certainly the between not But just we Labor in here and zone. that's the second may Labor the occur I will slowdown. month target of think that. half year. highly given it's holidays,

Brian Mckenna

it. Got

Okay. Great. one And then for me. just more

fire, across So just in you're the a working lot Ken, all clearly of irons assets. number a of on there's initiatives and different the

your you are priorities. months, I you the guess top do XX And these? looking see manage XX over allocating then next as what all how to to So of out time effectively the

Kenneth Nicholson

it's Well, therefore, things. continue are represent things the really making value look, in progress and most good and see across growth said, the revenue and meaningful be creation we consistent focused entire EBITDA X the on step growth think portfolio, functions to that everywhere. to I That good

railroads. accretive Transtar. is big of We're First of acquisitions fans freight

and that for I been there accretive. be years. X-plus have Transtar of acquisition We are some are presenting really would And think themselves here interesting an opportunities highly

in team to up professionals on make can earlier, my with some headway a the mentioned excited coming we who discussion I real to there. staffing handful we been as have so of so have And I'm

I think that's for a Transtar. mover big needle

indication, the I And our particularly mean are region, there assets demand is if mean I positioned on capacity development increasing wood, those an opportunities. things the power. team for all and got results is to the think our I our in we've is Long throughout X of nation, auction best that Ridge. Secondly, knock come. over at alone

things. it's ahead time, are at think X Repauno well. more my Ridge. they're us energy continue We've those accretive Jefferson, Long But obviously the all at Repauno acquisitions on Transtar incredibly construction big I more my and So of projects going developments at got a to big and focused meaningful. is

Operator

One question. next our moment for

from will next line Sherif Our question the from Elmaghrabi of come BTIG.

Sherif Elmaghrabi

I So a on Long Ridge. have couple

merchant tell your become you us could Long Ridge if XXX% off of do? does the First, run there once swaps at capacity they when and power

Kenneth Nicholson

And swaps -- remaining users And there to X of different number average depend years But of some we instrument. certainly we thing and situation. because a yes, more they we are years. that are -- They are be it instrument. power are specific to The the important the provide any actually in deliver we comes The financial to a different on will technically actually, they're free to years of an swaps, financial We're that's on in X others. plant. have but X us, power to Yes. swaps provide on behind-the-meter counterparty, The are yes, free X X that to to the swaps merchant not could the them. could by are years to to maturities, and when stay the committed a X or to to an come. today, today terminated place anyone a range swaps are of swaps, power in one

Sherif Elmaghrabi

] if I staying contract, things the there just helpful. backup you on behind face negotiate imagine power. you And issues center are related [ Ridge, to That's data Long like power meter

borne So FIP backup the by costs with those host. And can associated something the you like as power talk are factors? about

Kenneth Nicholson

been data of -- of It on gamut. transactions, announcements if and seeing kind recent center These run developments the depends. some Yes. you've they the

power big we at availability, income backup and would the likely Ridge, spending we think of our and like I those the higher been have costs yes, which amount on we solutions. more land past case, a bear priorities. a as We've would in months X power Things backup disconnection from result. generate or, then grid, yes, tremendous Long

I think solutions us. of are there for different a handful

network, power We good has [ are that's uncongested ] relatively in a a region and very a that thing.

and of when in into has. available to able not of backup do to it's key lot flexibility Ridge having the what flexibility a for we it The So Long have data times we might available it center a needed a be terms is component is making grid selling power really needed. of power during what

with It the more of mindful So, elements. Ridge a But of yes, in certainly our without a other of Long check and peers situations the work simply space, you there. we're detailed than boxes multiple all I think when streams. up marry those of not Ridge do out other lot number is Long

Operator

closing now any turn And to Alan for back I'll the remarks. over call Andreini

Alan Andreini

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

Operator

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

Everyone, great now have day. disconnect. may You a

FTAI Infrastructure (FIP) 2 Aug 242024 Q2 Earnings call transcript