Benjamin P. Cowart
relations on investor joining Early today refer today. the us we will throughout of Noel. you those that this company’s thank morning call. Good presentation the to Thank to our I materials you and posted website section
year-over-year decline economic of the were of available extended oil downtown margins in contributed Marrero second oil caused by and refined of quarter impacted feedstock used a Louisiana pandemic. decline historical in availability, activity for reduced collections. a the thereby which our The driving all product activity reducing related supply both Refinery quarter. second product changes economic demand expected activity As to to during our COVID-XX fewer the in refined combination attributable slowing performance by resulted in and activity decline a in COVID-XX and was at driving motor low
Given levels well to historical impacting the at particularly our product lack prices remain correlations spreads. feedstock UMO of elevated availability above pricing
across product were declined. in UMO for a as forced To the took decline to quarter that we During spreads. system the XX extended the products reduce at Refinery the Commercial offline utilization while period demand May maintenance Heartland our to second end refinery rates. reduced was we at collections days of in contributing weak refinery operated during for refined also Marrero
of economic business May bottomed the began showed orders in were place quarter and shelter activity eased indication Our second and improve. gradual as to improvement exiting in
XXXX basis While below increased month-to-month May U.S. more and remains April than levels. a between XX% the VMT XX% The XXXX, vehicle-miles-traveled May on
and collections XX% April During prior-year. versus the May respectively and declined XX% direct
However year-over-year. in continued July the to total of see stabilization operations. we in month In and UMO collection June collections our increase improvement X%
the have recovered Refinery. increased we at UMO Heartland and volumes Marrero both As utilization have
at is more production. During peak July costs capacity fixed barrels refinery across operating spreading of our
safe the between moving below versus be, ensuring viable [ph] we where to plant Marrero the sulfur closer while Operationally crude continued of Refinery and to levels. ensuring facility. job well the outstanding is at OII and business oil an of done Heartland has however, our want restart fuel historical spreads high team Our our reliability diesel remain
over the refining meaningfully are to near-term. would we to economic we see margins will That be margins here expect the activity said today that recover suboptimal For assuming recover.
being with during offset metals and other interest lower business the of second the X materials, Slide our contraction adjusted factors on lower XX% represented spreads in indicated decline our in our expense. presentation product of losses year-over-year by quarter volumes As the in EBITDA
with sequential XXXX. adjusted year quarter will second the EBITDA and the quarter in both expected expect We growth our third of of in the be quarter fourth weakest
quarter, second cash $X approximately total the was million. burn During our
and operate spreads mirror of refineries fourth XXXX in million the of on forward cash the our $X that $X continue per Assuming third expect strip to quarter to and million plan to respectively. quarter we burn would
positive We expect first cash to flow XXXX. return generation to free of quarter the beginning
our remains key management the team ahead, several year. as focused we into of current the Looking on transition areas remainder
growing remain First, we business. aggressively collection focused on our UMO
that to expanded geographic grow direct potential to while collect a markets tuck continuing We in of the of evaluate collections. where our we UMO opportunities have have small number radius the
focused capture maintenance, plants we plant the our our operating operating year, the us the throughout and Second, of of scale assuming on leverage organization. remain throughout to improved positioning capacity normal remainder at near economies peak
Third, we focused remain on cost reductions.
from quarter, second the XX% quarter. quarter our first reduced the second the we by SG&A to During
to Looking operating of to half this second $X year, realize reductions. annualized approximately expect million to additional million $X the we cost in
other that development the antifreeze and oil a we Together through process aggressive optimize opportunities expenditures discretionary these of to [ph]. investments similar pursuing that manage, expand activities. intended such further refiner We Four, capital ensuring non-essential streams established motor and a we opportunity model our of automotive as an new filters our reflect for our have portfolio processing apply market and see initiatives asset to also innovation waste reduced addressable used currently example, total to business are oil to commitment series of collector used postponed. as we're an
historical entire capital period our during discipline volatility, team. Finally, remains top a of for a priority
on remarks. over growth well our period for liquidity I'll and which years, support prepared more of his sheet than that we done turn business. call mind, in difficult business. to the has this the conserving before, the are during a Chris balance great cleaning to of Chris job team us focused has the our for With in served long-term finance Now, ever recent up
