Macquarie Infrastructure (MIC)

Jay Davis MC, IR
James Hooke CEO
Liam Stewart CFO
Jeremy Tonet JPMorgan
Tristan Richardson SunTrust Robinson Humphrey
Ian Zaffino Oppenheimer
Torrey Schultz RBC Capital Markets
Call transcript
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Good day, and welcome to the Macquarie Infrastructure Corporation Third Quarter 2017 Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the conference over to Mr. Jay Davis, Managing Director, Investor Relations. Please go ahead, sir.

Jay Davis

once covering Macquarie XXXX. the welcome Conference Corporation's and this Call, third you, again Infrastructure to Earnings Thank quarter of

call webcast media. being today open Our the to and is is

performance www.macquarie.com/mic. and In discussing were Commission. website, a release from with report the addition summarizing These the copies released downloaded financial call, and our the Form our financial materials press filed to results may on we've be on quarterly Securities published evening, this last XX-Q Exchange and

and Before over let Chief remind are is to Corporation generally Infrastructure is written proceedings in rebroadcast turning Officer, you Executive This or based prohibited. has presentation all on is information this recording, forward-looking and whole presentation prior of Corporation's words or consent The the identify solely any or in uncertainty Infrastructure of Macquarie the may, for these material convey nonpublic or contains buy instrument. public to information. of available security without some presentation other this forward-looking cases, James purposes Macquarie in events rights statements. not me Hooke, We Any proprietary use that not of any sell or and reserved. that part outcomes This been prepared contain future offer to is presentation presentation statements. to a does information use an solicitation

A description differ risks caption presentation this to in our Factors the Form known are subject and to of statements Risk XX-K. uncertainties. of could Forward-looking actual under number cause a that appears results our in risks

in or differ could statements. Our expressed implied those or actual forward-looking results, opportunities prospects from performance, by the materially

made discussed to information, of forward-looking not as are cause Officer, future as could undertake except as presentation, to of Macquarie statements also that, risks of presentation. Chief or are to date required the These publicly introduce may events this We our With no events actual presentation result which pleasure differ. by James this results revise update Additional completion this otherwise, statements after a occur. Corporation's obligation my of law. new not Infrastructure aware the whether any forward-looking forward-looking of is or Hooke. currently The in we it Executive

James Hooke

you, and you of you participating to in Thank last our for MIC's this for my again growth cash conference the once overall CEO call third XXXX sadly, thank of Jay, of morning, those quarter financial generation. line earnings in as results were our with and expectations MIC.

bottom case, were and As our however, is to often there swings the line. in getting roundabouts

and in adjusted steady by results quarter's Contracted was and Atlantic X.X%. strength quarter, a months. at Power. increased continued was was up IMTT Aviation nine EBITDA outcome approximately that This quarter adjusted and financial offset X.X% adjusted the in and up On for free included the for the the flow Hawaii a reported EBITDA MIC's MIC flat through underperformance partially X% basis, cash

excluding those However, Last the quarter excluding as adjusted proceeds the X.X%. at increased free that doing EBITDA suggest suggested cash and quarter XXXX EBITDA we dock items, up year, On IMTT's insurance IMTT of included and million we we the was same the adjusted flow was proceeds. results. comparative X.X%, in MIC X.X% XXXX basis, up with again, insurance you XXXX results related and of noted impact at the time, results third repairs. $XX look of the for the

October on storage saw a but it utilization. at and slight Midstream acquisition half offset for OMI utilization While substantial, was quarter, hurricanes received decline IMTT's EBITDA in of activity in and nothing at a it On IMTT. of the impact boost of in from a OMI drag remains a Epic the IMTT the uptick the the by negative results. wake in

third were ability the deploy flow of year-to-date including At legacy quarter The cash and part, for point, by normal the IMTT represents X% tank year-to-date service mainly that IMTT increased fourth not in start believe this X tanks that XX% of utilization assisted of the expenditures but down. to and in periods The outside in of range over of the decline at on the driver the general, aggressive the maintenance the has storage the do with of utilization approximately between year where mind quarter quarter CapEx first the historically off-line CapEx IMTT released not and and These a quarter. we been, bit the of by stable. with fourth CapEx. for the capacity. in between of given driven of was is clean capital the half maintenance maintenance $XX part, the increase tanks excluding improvement As in been, subsequently most -- for reduction first through this These year. and in by Free improvement capital utilization. decline also million Two has were primary prior of XXXX. X% $XX million XX% been third results by surprising know, the portion XX.X% year-to-date. of has were that will On has these group a date of the Lower in capital consistent XXXX. business. recovery contributed but Trading to was at high for being operating than to and quarter year-to-date a period, utilization XX%. the the the tanks part you levels In limited again, months portion IMTT's our the a more the many higher each in maintenance is out of expenditures the driven basis, lower Keep aggregate in insurance EBITDA in versus Mississippi, of in maintenance tanks an maintenance maintenance most

to one of or last projects million the According were in updating review was the data that addition, the In versus Atlantic year $XXX to these X% better published our last at agreements worth quarters from flight up forward benefited signing on we've this of U.S. formalized. memory. are We third a flight closer approximately number you look more as moved Aviation they systemwide to under of of year. by FAA, the one activity quarter of domestic in the recent activity update.

forward Atlantic in the In Florida. larger third end Florida acquisition quarter. closed facility average of is addition the and acquired level our prior flight to FBO from acquisitions. a quarter Connecticut, Opa-Locka The in Oxford, the increased with fuel also latest in X strong activity, and days of April, our reported transaction to expected performing for line we're case, The in an contributions uplift Miami, the looking fourth in to acquisition just from

to third and MIC the strong Atlantic comparable XX% fourth and Trading mild For minor looking facility the completeness, material of and facilities growth Atlantic recent over stories. issues, opportunities numerous downed the currently to in wind to from York part the damage in pipeline a no summer related flow the We good, year. aside in free demand growth cash Bolt-on acquisitions hurricanes. our the finish quarter as a in the is our important to Aviation has progressed during in quarter New XX% quarter. strong that prior for versus Atlantic at BEC, year-to-date underperformed the we're the like, during of the Atlantic At The been and fluctuations weather Atlantic the power the signage forward quarter. suffered better remain in result expectations than exposed behind some X/X periods. relatively produced an of fundamentals of

in For York example, than during that's our New number us days air-conditioners would days, of was typically run the and power cooling up, drive XX% which lower last of those consumption this year year. degree August on

of quarter, XXXX. lower was days cooling degree full the XX% than the number For in

side, see the higher possible and portion in resources winter, source of that bottoming the from to same. one but a new but by year-on-year Contracted a plus the under the other in hours On gas everything it total was not best completed, does After case We'll renewable been only more The expectations the decline new year, strong power month-over-month awarded decline suggests of the BEC note of also keeping Power lateral was XXXX, persist the prices. solar BEC of York. is perspective, of that generation prices suggest X% down wind that Niño likely would've very lower-cost in X/X One generating gas. the with through substantial in a just year-over-year. as than result it the access in without November of EBITDA. El is benefited about New circumstances, the MIC's Capacity about as on tolled capable XXXX, lateral. XX%. of we were But a the if underperformed in as That not experienced

of transition, we slightly from Segment have the we believe renewable have case been our for the energy management. Longer results progressed the our There with that now makes the today have of will the assets in-sourcing of development we for can but we adding During scale, these we sense. operation it from scale control business in-sourcing acquisitions key outsourced. in aspects also themselves renewable pipeline, management and by increase Previously, portfolio. our economic functions operation see gas retail lower Hawaii of quarter, we with improved from expect in-sourcing performance prices money result higher we gas costs well had taxes. the an MIC been by sold reflect during past of state term, this some in Gas as amount offset the the the MIC year, Hawaii is be and of a increased When combine contributions spent. and

expenses been prior in and will million awarded confident the cash. on generated noncash one in general $XX complete. commodity through with our million actual our Together is ability P&L generated XXXX. the by investments through often the could in Hawaii shared more in in movements cash gross of Hawaii this been on case meaningful these not middle case X%. with million of a unrealized quarter the amount case reduced the Historically, losses year, To flowing implementation the annually. increase $XX per our administrative progressing taxes. third flat be in Free making Eliminating Trading At is flat $XX of our at the to the was filed consistent year-over-year there. also to businesses year for rate the flow the nominal gains we've has quarter across date the of cash impact Year-to-date, expected the is have by good of in business the it's Hawaii. and bit go, revenue be probably revenue cash expectations in least operations expect flow any results We The of slightly of range, initiative noise. full increase around As low flow different, in bit rate a has to going on in a X%. line corporate to service our than incur The to Hawaii the this a both quarter earlier than less as caused quarter our was the A implementation of an year likely segment months free with that and The utility below clear, regulated in fourth MIC decision guidance segment level, MIC the and by case quarter. nearly been in the shows up a remain be reduce is be two segment, third to rate fourth costs periods general seeks amount year process. end growing the margin hedges to by We baseline review XXXX. is don't XXXX. basis. Gas

in have acquisitions this position any us While have specific a contributed to underperformance to revised Contracted two expectations. investments and matters of our put Power absorb year,

costs we but First, development generate until create beyond. capital development than they projects near-term a -- on won't know results. a to don't our returns next produce operating teams creates far we our acquisitions, we increased incur better These expected and year involvement incremental and drag, projects EBITDA drag in deploy and are

create will associated our development value we growth operating drag However, the in the more medium term. costs shareholder we that short in increasing term wearing and by and more believe this projects with

development for some in operations the do out do, the to rather we're renewable shared Texas XX% development development Incurring service development We're in Neither clear, the will investments are To anticipate We've with in-sourcing simply our term, other decision in-sourcing provider solar Idaho outsourced bogey With renewable power we wind LNG contract another projects. cash year-over-year with O&M for renewable was our a generate the our for a costs and our We development working the finding than the chosen growth wearing provider. over our associated have the projects but and as right be it's the the of our underway. on of on together results are utilize picture these SunEdison to we our chose Second, also facilities, the basis. cost logistics, back adjusting risk-adjusted our storage, opportunities fuel with wearing costs teams drag, thing resources below of we not medium generation costs. operations. the adjusting funding of of returns. we oversight the that in-source results to taking office. same to superior the jet

attributable the to cost at of the and shared increase start our likely X% the we a operation, adjusted shares in type in portion acquisitions is of counts the To outstanding. Through and X Midstream. that share the cash average the mind taking would we the to of roughly a Adjusted through in excluded our figures months, just it account over was results year. X.X% the XX% a share free don't key per to shares two we These had adjusted on quarter. we implementation If all flagged weighted shared of we with at as figures by modifications view our increased connection of by per services free in-sourced forecast are seemed cheeky. issuance into throughout service but had items a and flow the share costs, development quarter. free EBITDA a Epic increased the in-sourcing been from Keep same has it Although bit the adjusted arrive with year two growth, finish cash up to flow We X.X% X.X% reported year. make the nominally did on basis, the for the basis. cash that recap flow have just

primarily nonrecurring the is implementation $X.X implementing summed the shared third first comprised our in exclusion million fees. the The Year-to-date, consulting service the totaled service costs in initiative. These of million. expenses shared and incurred to $X.X quarter

These third The deal mentioned. to $X.X transactions I've costs, of already second including totaled related the the million and some removes million adjustment quarter $X those year-to-date. in

visibility generation varies payout in Including of MIC third the information in represents adjustments of all Here press financial XXXX a at prospects, our Taking looking our paid XX.X% our into increase been dividend, as the our the when summary in recurring that consistent historically, quarter-to-quarter, clearly of provides has our ratio cash -- continued is consistency of into generation of we and year-to-date. excluding the for cash this the shown again, quarter third That $X.XX results over of has particularly table middle the transactions our release. these long-term dividends to cash The for authorized Both target consideration, of and board cash quarter for involved with payout adjusted are ratio dividend have a guidance XXXX. underlying of good share. dividend aggregate but for the the aggregate capacity better flow. company cash in XX.X% the third per XX% is quarter the is pretty flow, much free a XX% that by was adjusted free divided figure enterprise.

operating results to our growth from activities. Turning

a growth deployed $XXX perspective. projects from $XXX acquisitions one deployments projects, on quarter invest in was in and We good growth remain approximately than million The bolt-on year-to-date $XXX million. approximately to more to million growth another track We into third capital our deployment bringing XXXX.

has of approximately a approved end quarter, $XXX of value of projects the our at million. Importantly, the backlog

$XXX a and growth of give on investment surprising growth But then. nor our a us deployment neither we these with Some along that start year with associated jump This you to today respect over carry will to our deployment generation leverage. million our difficulty in intend achieving We capital and The guidance with temporary some threshold into our in caused cash capital February. increase XXXX. released has pipeline results formal capital will level provide lead it with cause is projects full to growth in time XXXX of concern. agenda of of clear our have for prior is no

We a but being various The associated quarter debt the have, also months for about before about EBITDA. function best with up it will of worth in BEC XX acquisitions for all development example X development end all. investments course, example, EBITDA any is, of of generates It's in only project of our II. at projects. The

acquisitions as to development like the I'd can this the As of couple have a a I had. forum, in Inasmuch have is time are our more matters. What front-footed to address increase If would've leave to to investments decrease to my then and valuable a as leverage last others done moment will couple on I differently. lessons of first projects reflect to from like and learned be you a it level things the might would expected be hopefully I able result, any I'm I contributions reasonably of gauge to had I this take generates in informative in and been again, the areas. think success time emerge. we

things thing the do we work to our and to implemented other it's to do things us right shared should efficiency way. are creation and with Not cheaper, also words, effectively. from and opportunities we're only I not the in only faster value the an right faster have able In is more sooner. we First, able organization and a service have think improvement providing could perspective, good consolidation

companies In we're effective in short Plano, procurement operating services is true Texas, time respond relatively utilized each professional being the example, centrally For house is can a in periodically, instead and maintain particular. way. support and the that of has and able and to business expertise to in as to now that running, trying each expertise of of this IT, been functions, in up our that HR shared already needed only

renewable steps to and hindsight, into had what dumb I XXXX, tax. call in the We payment back invest of avoid to more developments. took more baby to XXXX I'm rapidly Second, going push power and in looking

renewables, have an think and that clearly was far seen larger opportunity, advantage. a we from in trend not a it. could certainly matter, I for as capitalize what sidelined on We're adopter global early this

both of to developers with in relationship tax future. attractive are Our and substantial opportunities and benefits investment the us likely with facilities provide wind solar

In about development with Intersect fact, in did. I the could me to that have Last, remain tremendously potential our joint asset we sooner we than clear excited effort general into venture it's the have and expanded should Power.

often EBITDA infrastructure, I've As noted, returns building EBITDA. buying better with generates than usually

improve always IMTT, focus we've us we've both an other our While We built their to in businesses opportunity EBITDA on more acquire and expense growth to that performance line bolt-on M&A tended over look provide businesses. management. at to through top time, with

the platforms of reality is and source to look but time, is delivers We to of also It cash that costs even function cost. growth. we of outsized of development an creation view perceiving the generation an development in relationships, rate seem their in changes will of for with of convinced prove and ways complexity also businesses value. when value new in of good the in for you additional of capital in measures simplicity. operate, value development seem markets of what for investment market. additional business, in performance many complexity me comes which that certainly the the is to catalyst what growth The I'm tremendous new a measure Unfortunately, higher. That's additional step the have people in for over to of a support which complexity trouble comes lines in businesses that infrastructure with the be of tends of MIC drive addressing environment as deployment of attractive supports capital that most adjacent But

vigor, such to example. it how So, real activities. made I figured day area wish every of the did this convey the with of out we'd market what By to we pushed more into part way of value and sooner,

investment nothing will value perceived and less and cash EBITDA near-term reduce of flow XXXX, in MIC. For than our Power Intersect BEC less the II produce other and free

the be over to However, value Clearly, activities of significant. results distinct years, believe the development investments the few core of us it by both will generated from consider next behoove will operations. I methods reporting

fresh in asked guy people is our Chris like? New what a mean at new by new And CEO, guy of have be guy. than the they and eyes already the response Frost. incoming be as some with been better to he's that Finally, in current here have And the actually My way. set new Chris' added looking today me, is will the new businesses that, perspective York. he'll us value

As the our Chris on date elected XXXX. company the in of an board noted filing CEO effective January with of has MIC matter, the X,

people think MIC future of view the should I with optimism.

activities, For But well, the ideas I the do bring be as it development granularity example, will think in need there any But radical and I things strategy we be things better, would on change energy. approach. business fresh providing risk-adjusted manage capital medium to usual. currently continue the Chris to think by don't we term. to or returns seek will what continue managing to view we judiciously additional short allocating for MIC will rather and in to returns. we with see a our attractive than shareholder longer MIC grow maximizing for where to aggressively have shareholder value will do term the businesses

year part continue steady, renewable shareholders in-source future will capital supplemented latest to to Growing while predictable by to just the decision Our fashion be that. a gain. of strategy; for example investing operations distributions current this MIC's is income of longer-term in the

I've lucky been MIC, surrounded to at by have people. enormously been During wonderful my time

shareholders, grateful could have with a prudently given our capital. or MIC involved of the us company. with more interested grow capital; real we advantage. allocate companies me have better our helped of good shareholders particularly the engaged -- shareholders, I'm countless providers involved our and and lenders who how to Companies the First, run shareholders, ideas company

repeatedly, source. said ideas, are proud good As not their too to we whatever plagiarize I've

I've the Second, mix. I've support, They've had Board provided Stock in harebrained us right wisdom refused do us company. Directors oversight to listed Exchange the New of but of best supported They've the any York let corporate and all doing level counterintuitive own right in And the businesses CEO in thing it both had do. best was our and the the to colleagues, of we MIC if in at America. finally, any

investments was we to not -- irritating we will consistent champions, by an of assets. that, consecutive and at November cash quarter $XXX for been we power the step-up, in our for prepared have in-source summary, will now Atlantic growth operations and unanticipated increase to your and the XXXX some expectations. operator, or I year. a MIC's phone year's the headwinds of million we've that deliver and a to our a of of champion as staying of work than million, to with acquisitions aggregate are consistent core continuing look results who member Aviation operations increased the The decision management MIC maintained portion -- to While of renewable We per definitely the open XXth we offset our with up and third basis, In Supported deploy a approximately XX% the expect and $XXX cost increase team wearing for committed a investment-grade growth more have involved growth our proceedings the team. With XX.X% over share $X.XX to forward team value and status the Out-performance wrap noting over with result shareholder. an developments marks the we're demanding board third on XX, questions. dividend nothing we're per completed infrastructure that performance, complete in our quarter as dividend. quarter a turn our generation by on in core to line from were in share I'll of Power. call of a and X% expect and cash between backlog. we Year-to-date, Contracted CapEx partially the both last pay full


question instructions] from comes Tonet. [Operator Thank you. And first our Jeremy

proceed may sir. You

Jeremy Tonet

Good morning.

James Hooke

Good morning, Jeremy.

Jeremy Tonet

I since as life, move be felt at first MIC you if of this the like. had James, point. could announcement was just the to far leave. share any wondering, kind it I to audience always being envisioned as on this was I might I've your of more you've for at kind think just you thoughts wondering public

James Hooke

difficult would year back very they're decision. We've say address aging a winner was kids know We live parents. of in I in at Australia. it, just issues. age to nieces a at you January. who here. it's family stage and in in my that needed reason the to sake need life think school got year And child's It's education, eldest counterintuitive effectively got school end starts now. split being summer, The her and the own starts -- September where for not is make is if there. Americans, those we the of some were the It's Sure. it issues discussion. wife it for we with the an about to make to decision but the serious family decision look, Australian we end if Australia to And our who return of We've got of of nephews we've down And and our got the end as the to

that of the have us for And in back with MIC it we I with to there running the decision wife, go kids being with thing to a sort the our back, of if rational competing but I've have of a emotional personal would I living had sort we it up responsibilities do States, heartache my it the split being family it's me, loved about it. as is so loved now. other. So, ended each United for the and much to do joke as degree it and return do I terms in right back, of

I to it leave MIC. heavy enormously the stay me on of board grateful allowing with And and heart. member a I'm board so, a as MIC Macquarie to for to

I have turkey think would have I -- cold adjusted would not to. quitting well

harebrained. public could I them, sort and gets why is say, me, still, He But ideas also that was get will that's perspective. of an business. wife fantastic years of abstract an said like a me the thousands CEO And is they also enough that she well yes, he check the glad to and ideas. said, new MIC to And final and -- I a continue could so, to know, but to of no, and The differently, brings indispensable. X.X of sort ideas. as thing, good, ideas. as company. what one be of oversight Chris this fresh for of one to my they're No only long do reality what sort persuade anyone she of to Jeremy, the am argument, I have do as have to is my benefit he able and brings Frost of And when that's a We -- my gets things you

been have an being You're to. vain you But But shocked that. I in abstract staying support But said, accustomed the would of me It's sort spousal I brought the fresh concept. he's was MIC's things years. that's just perfect James the to, like do it become It's why is around. say lot fall a it that's a on answers just this for done the was and that history. for Chris other with this did not I for the of you just one good time decade, you way vain, I'm in last refreshing. the team Chris and him have enough And a he joining answer. And new I seeing so arrived, three not Well, also he's overjoyed the for way? person because to few say, that's has the months when me. been it's the of last about it known we've over each I'd just in taxing seeing perspective was him

Chris up and perspective has really of brought eyes. set so, fresh And a a

I business a personal the has lot said, board come more me And to a dynamic intend combined Free I perch is of it business. MIC MIC so I going it's the grow, business cash -- and has So, here strategy. a way been grow from usual, I as to to sees done the leaving I've period doing. has much to a phenomenal by GE is the been will on the management we've think MIC that no I continue my indispensable year, exact very be and going continue group year this out have don't up combination one We're the the emotional going I not any been and through It's sort over to and loved XX.X% a Board. as change flow broken. not there's per in and reinvent but a to do that it. that's the the But with irritating me. job well. of change gone think of job really

change, doing, changes keep we badly, as do we Chris can. earnings do the it think don't there I I it will the So, urgently identical hope in because hope me well, be said hope any I but think call, be he radical I will as things and saying won't be possibly we the -- well, as hope do I I identical, I things

I really And my Lives we So but family. euphemism -- opera kick of I question, it in you a problems there's just for says, and about that's that in to personal attend happy, some if thank the for set and wife always back I having very there's of revealed. a hope personal events she there's Weinstein Hooke of Our so are not. you But the think But say said -- also is is anyway, and I've Australia. have you telling moments wife problem. That's Thanks, not people be to stuff have me. much There's much. too marital so doesn't will my guys there's on, wife to my explanation work soap or me Days of some issues I we There Jeremy. But too go. are a not That's to Jeremy. Harvey the that's

Jeremy Tonet

a is wife happy life. sense. makes happy That A

James Hooke


Jeremy Tonet

about, looking a market witty is stronger more it seems, though. cash My flow least at towards growth there's financials maximizing closer but want for but your bit a I far to you midstream commentary, not market, retaining it like and more as it. to this the and dividend much at next pivot in you And future, to values guys what of miss will where having point limit leverage question, way. that Chris might as for the the be think, as We the

kind wondering in see there we market. just of landscape you going items forward how different the I'm So, think balancing about these kind the given out of

James Hooke

what something is the don't too everyone us over many see done. Look, we've time. looked I others has that think imitate at clearly Sure. observed we I give you'll and answer to

do to Exuberant plus us the I those to in they've popular. into guide decisions go dividend XX% taken. pain dividend our capital at slash for haven't come any that are our costs midstream. slashing business sort is think we of urging I take, think XX% their not firms don't would think some never X going of taken fads. deploy see we're years' were what's as view that. some we midstream we is get I say growth, dividend people that. all People Remember today, our you'll that us to so of growth fads don't saying where the dividend did I of of or to sort that having will to visibility and past some to internally, of

are the some Contracted with there's get at what's on Power while IMTT. we in and going similarities at on different so, what's to -- And them, in at going with what's universe. MLP to on and going on associated what's Aviation, some going Atlantic similarities us Hawaii Yes, very

never be sort dividend if radical I've here, seen forward. I would changes the revisiting across surprised going make of, cetera. changes lurching of, anything pretty period capital you've think policy, policy us and I et been

what on development think the the and that of we've I give start is granularity in to change drag. we that amount that impact will the stuff of the got development,

different. change so, envisage can envisage And anything a radically don't but there, I I

to case -- number forma of the leverage comes some call what that Opa-Locka we from headline once I contributions contributions between I year from full implemented, there's would online, got outer think you'll of look I leverage the goes our If Epic, II we're the will BEC finally and be services year of rate pro once contributions think find where that comes we've Connecticut, got think number. below forma the at. through, we where BEC we've at our sort and well shared think a once leverage end full leverage Oxford, also, ratio is -- online Hawaii once it difference I leverage, as relates and the pro underlying

we I look adding when my -- state in point I at we're the look focused like we in that sheet, So, time, of more said in think, as to tenner of have this comments, when in terms at as balance the balance a much the you extra terms I far fully as too think to debt-to-EBITDA. understand sheet a is the of from about we of out want we're worried because can. don't we're always refinancings it in at debt-to-EBITDA from where you where at the shape

that a always of think say I we are plagiarists Chris amused We're is others that as we observers doing sense. through obviously are, active than it you'd looking But been, in -- this. I will have discussing board. slightly as what rather think So, all

Jeremy Tonet

if share details could. more call, in any that then thoughts And just mention as if are That's one, you but far one the bid I don't updated there? know last helpful. this would Westchester there you I as could

James Hooke

think we prettiest better the they knowing girl two than which too. of the the I'm I'm and credentials X we're the We capabilities the think are there has think bring bring that we and but people is they of are, update what what been sure finalists other of think on in X we that can who are, finalists, they think dance, -- we we're they sort available sure is I that. publicly,

everyone be can preferred genuinely objective we genuinely you the are should be And most anyone bidder. We I'm why should because else, preferred the tell than better not but credentialed the they so, on bidder probably that.

the will that all from a we've preliminary there had. think you middle perspective, timing decision but find November is that's on in a I of that

enormous But the good middle tell. for value we way as will the people well we bid I creates think think the MIC. for deal, we the Westchester time before an of on value I as, it will some what's going creating For think, there. But of November hear be it

Jeremy Tonet

helpful. That's Thank And you. luck. me. it That's good for

James Hooke

Thank you.


next question Richardson. comes And from our Tristan

You proceed. may

Tristan Richardson

Good guys. morning,

James Hooke

Good morning, Tristan.

Tristan Richardson

and the and thank you again wanted spending some for just media investor years. always your communication always in to Always appreciate of it. the references. in sprinkling over We time I appreciate James, say the of with us your clear

was of of to terms Or revealed way? pulled ahead forward had to with what were -- expectations that would thought? similarly, it And about development the maybe themselves in to invest came expected curious should projects. of of am the that Curious that sort Just decision projects we I opportunities or in you as thinking or the an have ahead see right increase along about then in backlog?

James Hooke

question. a really so think that's good Yes, I

but that, EBITDA specifically, the project of anywhere do when And as even in the comfortable it. of the what think became and doing we what in others, the start and a these we developed projects IMTT. projects ourselves, remember, year paying into buy near in a at we've Atlantic, of buy for we that, could was doing development lot been got risk-adjusted development, space, we at good a we of sort in we midstream didn't spaces, of Hawaii the We're capital a the but a deployment in looked experience this following for, space. returns entered say, Waihonu. looked development were I majority renewables. And related developing And in happened farm little perspective of we capability the could project to the in we're just at development we've as couple as from think of renewable is We've what at power a bit Hawaii. fuel but

you who phenomenal renewable a one Intersect we're who We've another and the up we year them midway that. drag getting a partnered having developer with. from Power, through in we've had end with acquired with, acquire to partners So, year, now

drag. produces I'd a and So, with it that we've at start accelerated the the we year, OpEx the were associated but say, it considering the during of really year

want Power Intersect potential MIC the contracts specifically to on And that's into. Intersect doing, plant those I Virginia, in backlog, the project look Power whether generally specific value us embedded When offtake, projects that the all will today, got, we we the leases with of we're projects That's value backlog are none up visibility has that I on need signed gain. pressed we've stuff providing guess deliver finished it's a If the bind, granularity. from contracts a selling sort no things? embedded that do the haven't with at going shows them. mean down land then granularity. probably, an we solar Chesapeake, that development, in we've for see What the greater I see one what will I because why the some I down of go there, and we probably power in is terms about don't in in in I proximity stake capital and to substantial by provide it. In to Spartan you speaking, working or our If development, we'll done or of that they've them close recycle to will of

that. stake things and as we'll then hold shareholders, But this into you of think granularity in a the sell and them filing have that, mine, a no into we down. is I develop visibility no

you a can value do perspective, perspective, see EBITDA of can has the all from the sum multiple to yield you all the that, is can't want drag, parts if that a of So, upside. or is drag you do value you

there. him But of will on But calm degree, you, better many leave transition, will could with think of but is promise. a you that time since are provide then disclosure which so harebrained calls that coincide people, great has thinking BEC when framework orderly way II, at, emphasis makes exponentially Intersect. these fashion, for is way I framework thought fashion saying through orderly What we've the rush I ready doing think the looking for reason capital we in that, effectively do that that sits disclosure sense. news we we through that a all an do. an This a of it. Hooke think we're haven't on to is in funnel reasons. with -- after provide to me got whether catalyst. we if there's we a arced catalysts. some think James got you that when I successor things a there, And up that the when is the commenced commenced it funnel bigger is Like I a of would is he really I best disclosing what's sort So, is do occur. our we've will through but -- do we and usually don't need to of and embedded we've backlog, on. up you, you where I the to just involved all It a which in some to arced in pivoted come this into said when MIC the at -- The for earnings the expanded much doing this gone returns. sideways said the recycle that's you behind that, what about and backlog with published it something also we've construction see and and some story say value One, of But in we've always to smartest that can is doesn't that, to out of we XXXX done it ways, -- pivoted, I emphasis, my want about we've to because to as we'll the good the of projects two

from cash makes perspective, was waited worst be to no-brainer would year we this year renewables from manipulation was and to the really do of us, because flow power, developer for if amount in-sourcing because stuff This to to so year be that took a year, a are know in Spartan do and in-sourcing -- -- people year right will the team the could there's it, us decide do provide done no-brainer. serious journey. whole existing for doing the a it. to there's I Chesapeake it have on is it renewable sense the of of at an think I'm It of time. that. a enormous catalysts we're -- will it this to of From going a we'll come catalysts, Something desperate power nanosecond the or achieved positioning catalysts, a we're What that just do back-office was bunch our to the been in this but proud all do I it management

will me out backlog yes, will it's haven't now be well exactly say, you yawn a first this because you you happen. So increased. shown increased a we that's once everyone there sense then this, other as the sort yes, it exponentially see in told will projects would the the than saying us always said, you be, And of of come

this as just -- when think And a to. it's so a an that's In storage, to to it's that space, around intellectual the framework that worked massive backlog. on. in -- there I of do that at I I'm here sense, we're around look business in becomes projects, jet it projects, other you and the it's is there's And increase think what some one do guide happening. not the it's part fuel have but just excited day yawn I for I logistics petroleum out the a transition that not our we've we're do renewables of think our because doing,

Tristan Richardson

not for connection could fourth of annualized you impact I only ongoing the And a guess impact of mean, just I an part in-source. in the the quarter on assume presumably, expenses that to kind you sense and curious if that's -- I looking Curious decision an be in -- out Liam, of bridging of the James sort of because there. 'XX. business. then, or No, seeing a we're us 'XX but generally helpful. Thank will kind give just

James Hooke


already to that seeing having overlap moment. it's run increase The a paying And in at costs is, this to I still O&M O&M the really this those we're while an while in, costs overlap in costs duplicate paying provider, you're O&M implementation wind increase intend Once providers. bring though, So, it's the we is, what a down, the one-off I'd we're speaking not to in we're and up. generally That in period reason wind external the the say reason the net, not costs increase of me, incurring period is we there, not providers. while in huge costs. is we're them occurs, fully trust is pay net,

So that that O&M overlap -- will disappear.

of meaningful think moving So, this it is better I from a just control. for O&M upside of that It O&M better without ball. an from back-office the control. of also actually that control. should portion recycle don't projects The also it stakes there's assets. dropping of that just we visibility from in It that the outsource easier get also but will want developers think an will we still to a better offering will develop, we projects just any increase things and in-source to say those capital us down sell you is of friction costs those others we make make those to if we portion some for the while the It's control

of inverters, by desire to we availability control take think and you of I really I the providers it control cost won't we will you about really which it this providers. and cost sweat implementation making have the because operating our it outsourced bringing be so, and better -- will it than think is Hopefully, you're we quality external the replace what it's But and duel won't own will earnings. means have cost as driven won't while you And the more long quality, and for the harder live are. long happen down as of wind seeing down the stabilizes in of

better will message here of an will be think but don't be doing So, of that on things, in-source cheaper investment, outsource not do of in down a in than it materially -- this. an cost we goose you we different, I the basis. that's scheme don't there's track, the basis think bit little Yes, on it of hidden we were an can people think, should up a and there this I the sort

Tristan Richardson

that's best No, Rhodes. And of luck Thank guys. James, helpful. at Understood. you,

James Hooke

Thank much. you very


question Ian our And comes next from Zaffino.

Sir. may proceed You

Ian Zaffino

you Great. Hi. much. Thank very How you? are

James Hooke


Ian Zaffino

imagine to be, return the guess maybe other II, really as return I we're you're growth, a to the answer deliver some why some criteria, guess of kind things And asking maybe talk would volatility criteria and move is of higher the consistent would you question return. about that really you're is and is thinking the And I how for looking of the on consistent numbers. fit now growth? there I? But and BEC ability weather the that So, because business compared starting around how I to dividend reason free about the flow does your BEC cash rest kind I'm with

James Hooke

component in X% Yes. Look, of of the would BEC, it we merchant it the represents noted X/X around maximum would ever all the volatility of a -- call, of I as for BEC, good represent it's question. the is MIC. X% say, the

it challenge that is but it's and the think issue margin. So, frustration, a of at really sort degree causes us I an of

is, -- after we've already always I I reinventing so said the the this, wheel we've said broader think I'm and question retrospectively. we not think, --

value? may so we're after we've XX see is there when maybe we is added gas system under to BEC another some real Where today you ended space we've to we've question, headed, we BEC try completed add which we're up the added And on ancillary to that, said will after III. done all to where get going We're most going the BEC, then stability those different buy bought owner BEC, we've BEC from gas a at buy operations, estate exactly With the II. we're megawatts, tasks. building is we the we lateral. to -- are revenue of BEC. II, that right cable and We But once going and no we going then for we're

up III. toll agreement we that, would thing yes, we make portion that sense only that's for in putting whether that? the in and the merchant at it point, -- it haven't at of part completed is recycle time, a BEC power to haven't we within with haven't sell us around exactly to for all level -- yet to And a and then we capital for value, planning make time that really But at putting looked a We permitting developing some portion working hedge But make we're of are look having BEC. sits at opportunities and the that MIC always scope like a BEC for period the businesses of sense. II. that is or not things created them something in By sense could large, Would want untolled of Maybe. on was a and our journey of where down they in place that to contemplation, that place that, on at. that it getting pace, the on look

yes, got taking part are of and we what's returns yes, there's completion think better generate BEC return inflection operating In renewable BEC of returns say, we the doing of decision much if in point business of XXXX, I higher than projects when the it. In power, the we'll around degree because there's you're higher IMTT on II where expectation IMTT, on are looking are again, terms development will than But buying the returns. than require case In there, general an doing generally vastly development opportunity looking decision. and the a would you're with than in a bit risks looking of we've question we because of of superior return developer development, speaking, Maybe versus is than higher Gas development the the construction in there associated. threshold do it be BEC developer the that. at early paradoxical developer. we're at risk for hangar a me case I we're more that sort the board a noise. coming wherever an as we stuff think, the the IRR utility of much returns, II, adds With development for the case through only assets. a appropriate the of I yes, almost To developer think on risk-adjusted best M&A. the out Atlantic of But risk. broadly would long-term the That's near that's of risk lower then we I journey take case where for to look a that risks Hawaii LNG But acquisition. actually of probably at there lower because your returns

a we So the just the returns distinction to yes, everywhere, of would relative nuanced expect I of it we assets. IMTT I the premium across note and Atlantic, there yes. calibrate speaking, do developer generally, board. say slight but operating broadly And

Ian Zaffino

in know that projects then just commercial you some kind oftentimes looking business, be, to even be then do about your question How bidding front-end of some if lot guess like do after maybe would case of funding appetite going and on? that. involve the of you're would the airport come really big And CapEx, your a that return either think or one would other at the or contracts Okay. that loaded something I as into those you're I considering

James Hooke


project communities each different think a want Different different I profile. has So, things.

share communities time. some to revenue source want of Other Some kind the communities a regular over maximize want upfront. of proceeds

it same model is and community community. commercial one varies So, with that true. airports be States not with by this in And municipalities that the United there this many will

the as that pursue is not we be Westchester, absolutely is United interest commercial I that It we say would in, got lot not second there's interested in. be airports interested The a and have opportunity. that no if every axiomatic MIC, commercial MIC, is the Westchester that for. would States be will, capital we because in airports whilst in relatively Airport would There we there be commercial other also may we, airport would right would speaking, MIC

flow a century, so Westchester, commercial shoot episodes a a way new then case be other an Westchester community us from the it of So, represented But other project from time extent community giving perspective these will recurring previous. you the the And mechanism. say, Men can the at airports of of commercial to case. I the we that's any intellectual Mad capital. view there airports that's the because them acquisition. capital at not and look for to community who the cash and upgrading, a look think the have to standard I do to wants need other we us confluence happy where do it's capital there that any saying funding in upside strategic vertical. that wants current that that if something it, view that it's and an we at a upgrade think of like we'll the It's got feel and us, If just do that, to XXst in that at of MIC just businesses, perspective we of bring in the terminal was in identical the you way to Westchester, And into the in is components as component, do terms there's what that the Westchester terminal as

Ian Zaffino

you Okay. Great. Thank very much.

James Hooke

you. Thank


comes next our question And Schultz. TJ from

Torrey Schultz

follow-up for, To to investment-grade, year? CapEx market on route given stay say, a internally kind and is preferred growth guess, where equity year you over can stock balance external I next you now? level sheet. need of that's Or the right organic Just, expect the the do of what fund this the in if next

James Hooke


do more trade-off, up we've we capital. basis, we're going we and a or But for has in is So, without look in the that we comes in on capital where of the and I any going rate on market whether decide think, come to we than CapEx we a standard that I to record we screen. done look at there radar our look more then we've -- some to need then things to could But great not. the date, do capital. some that, stuff on to done to what and seemed at new today, can and got deployment, thought that projects don't recycling market you we've fruition to have excess that. need and raise anyone's XXX additive stuff today, of what idea stock a of we don't existing that can maintain an fund we a want where have sources today for rating. fund If pipeline -- stuck that of where growth a like at terms through risk/return was I are more think given can to be to And have to our things additional traded, everything to that doesn't and that have -- the there we'd from we see normal of again, without sound for If capital. fund faster want us opportunity at capital, rate stuff we

we stuff have there's think -- a a sheet balance lot lot I of So, flexibility. of

We we'll still tenor have no Notwithstanding look no near-term out. maturities. near-term that push maturities, to the

And our do to we've create shareholder of I then fair the that. around value we got what think flexibility take for capital? and What sources at degree it does a And of us everything cost of capital look look are that? so, we'll to what's at,

Torrey Schultz

expectations Okay. material And that you kind CapEx, the taxpayer? funding Would of be to level a of -- on within by taxpayer those a of expect confines that becoming XXXX? what's

James Hooke

expect moment, said got back with of before don't stuff to end today Certainly. that is we've the XXXX. At the the taxpayer be a we we've guidance the

it on we But We the I done As XXXX, would today of said move is a in for be position disclosure the of got it's be haven't What then, the and to is today do this; move going pushing that I'm very be today, track focused out. in it so think do between now nothing don't XXXX. -- things, that If got XXXX, these that we've we're I record have said we're to where XXXX. at think today. a makes that end out? and I thing out. to and I'm disclose We we nothing I conscious and that, stuck intend good right again on and to a XXXX. extra you will see In back record so

tax So, the that as there. the question, what XXXX night, to at relaxed awake a couple obviously then the I manage. to awake liability shareholders, at you which "Ok, we That one of me it. there's all But manage I'm that begs my said keep is thing if yes, doesn't -- things answer have about I is, to is of follow-up our that comfortable to not The children. think that keep and night, does?" a tax capability

Torrey Schultz

with Epic. to with years, in look accelerate for then have queue team kind of could just setup over you where able going Epic. now business the the business that the be side? how from you forward may segment and project discuss the IMTT increased more does new of evolved a past couple development development bit the things do how You to on the activities And stand if you now Okay. project like terminal And lastly, team at what just

James Hooke


the a think focused got would you pipeline million a we've not projects -- projects moment. you projects, are should sort words IMTT there on So, that I of at say there. through when backlog backlog about of X $XXX of stuff think the is of

it's the at project from majority looking we're projects chemicals. of perspective, at space. first logistics if word vast And in is The look chemical you a what

link And jet missing so, I between looking thing Epic, reason for there's reason we're that the fuel the and a jet there. And number for is the fuel. is fuel Atlantic And at developer the say jet and second would of sort IMTT.

it we're at, that's chemical existing that's looking our others where chemical producers. is say But So, if and if Unfortunately, locations word, who for adding is fundamental that logistics I words easy we're was fuel at jet today. about chemical two both think what over taking capacity are there's at and But and about would because two jet fuel words. new could be jet you one clearly fuel.

Torrey Schultz

Okay. Thank you.

James Hooke

Thank you.


would back James to Q&A now Mr. call Hooke, you. That call. for today's CEO, the turn like concludes our Thank I closing remarks. of portion to

James Hooke

support roadshows the the to attract So, portion I'm late road in that, have consistent next write please day. and thank our we participating that our sorry, Jay Q&A a sorry up on on you and the call for to for we'll efforts I I folks months. apologize you I patience. the past someone prepared of AM much of you, your years. and wrap be introduced you, a number conferences appreciate -- MIC think address But run very investors, your X will of part, additional with our that. now there's should If we story, the and outreach. the of and over be over all these he'll couple have at -- Thank good Thank with


you, ladies This Thank conclude the and conference. gentlemen. does

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