Macquarie Infrastructure (MIC)

Jay Davis VP & Head, IR
Christopher Frost Chief Executive Officer
Liam Stewart Chief Financial Officer
Ian Zaffino Oppenheimer
Jeremy Tonet JP Morgan
TJ Schultz RBC Capital Markets
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.

Good day and welcome to the Macquarie Infrastructure Corporation's Third Quarter 2018 Earnings Conference Call. Today's call is being recorded. At this time, I would now like to turn the conference over to Mr. Jay Davis, Managing Director, Investor Relations. Please go ahead Sir.

Jay Davis

to third Corporation's quarter welcome this conference and the covering of you, Macquarie earnings Infrastructure call, Thank XXXX.

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

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

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

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

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

the not information, law. any as statements otherwise, also actual no this not a result by the These or non-GAAP We reference at The revise completion which new free occur. publicly date of obligation required or currently to whether after by today's Additional may of the forward-looking of forward-looking in discussed aware, are differ. and as risks this are In we make statements to as cause of presentation before update we made our depreciation, could or forward-looking events presentation. will results events of defined flow to and as cash us. EBITDA earnings times measures, future call this interest, taxes, presentation, amortization except various undertake

in the of such MIC's doubt For wide of adjusted to will Adjustments the to impact in interest. our the reflect of avoidance release in to Hawaiian business the businesses most have published evening. less our the of economic combined interest tables than results. our in the gamut the non-GAAP of segment. reconciliation primarily earnings measures Proportionally can measures measures proportionate our be be equity exclusion references either MIC GAAP measure last which to combined comparable we of reflect press found attached A XXX% value

Christopher In Infrastructure At Officer, to Infrastructure to call Frost, Financial time, participating pleasure this is Corporation's addition it my introduce in Christopher Frost. Liam Stewart. Corporation's Macquarie Macquarie Executive is Officer, Chief Chief today's

Christopher Frost

our you each to the and strategic morning of call momentum for those the joining like Thank this have strong to you, Jay, us developed we morning. key quarter. these priorities call few and a I'd begin our on thanks with third through our comments with this of

The that business. of of repositioning reinforcing to IMTT the have to continues be capacity priority the characteristic included key this initiatives first repurposing behind infrastructure Our of our business. and

XXXX. in we process million barrels expect in completed to approximately or Regarding repurposing, have X.X now

end. in should by Importantly, have of service we barrels all million X.X year XXX,XXX also to barrels be month. the re-contracted by end this Approximately expect of back these

combined value release relating repositioning, projects million. Regarding to three additional had with approximately our press announced into entered contracts we in a earnings $XX IMTT that of

construction new the IMTT's is behalf of Geismar Louisiana. capacity project Methanex storage on facility first of in at The

truck facility New dock automated second is third new an and is also Bayonne, a Geismar Jersey. in at the loading The

terminals Importantly, and customers of We out pipeline as to the IMTT products build growth now worth to the capacity IMTT of update $XXX continues develop from concept handle The in additional more connects infrastructure These markets. will move opportunities. to to contract. million than of projects investment enhance opportunities intend contains projects. that market to

managing Our involves more second priority capital even strategic efficiently. our

plus BEC to portfolio. cash growth balances on nearly Each the our of we over proceeds to couple revolving facilities of next redrawn Following repay across can $XXX approximately these facilities various closing applied our of program sale the for the fund be all of the on the net outstanding of hand million years. credit capital

strengthening addressed our We priority of increasing also sheet financial our our third and strategic balance flexibility. have

our end the the proceeds reduced the leverage end and leveraged times EBITDA of our from sale our debt approximately BEC times With target has of at approximately between X of been X below at to to low the and times X X.X substantially XXXX. net of

extending short, refinance we addition, to solid on our progress our Aviation tenure and made to we In with existing have liquidity facilities of overall increasing of debt the and view debt our IMTT a Atlantic intend strategic facilities. priorities. In

consistent approximately level, with third the Turning cash increase high flow produce million, consistent At results across for non-renewals for $XXX the IMTT utilization taxes. to our EBITDA consistent continued as over higher free third re-purposing to contract both offset substantially with results impact maintenance of expectations our lower IMTT CapEx consistent expectations. decline in expectations around finishing $XXX quarter our both Utilization XX%. a previously. generated the now averaged attributable the million and including XX.X% quarter quarter a flow and of the to discussed for MIC expense, of lower our year by for quarter, $XX forecast million with of generated the with interest and cash in free

our at deferred realization to attributable date a utilization In quarter has the lower and guidance fourth consistent driven decline movements of Unfortunately, the the available. for revenue. a consistent been the months first IMTT for the amount contribution by the prior comparable Trading in versus with the full increased year. two versus to of Atlantic data last period. for was of addition increased flight Aviation's full-year in from to year, XXXX. rental with expectations our performance for of quarter is the in portion yet approximately GA Domestic FAA X% IMTT hangar smaller the also was revenue the not quarter September by

X% the in You the quarter that the than events. growth the more decade. Gulf by last Coast recall by hurricanes average past will the twice on up other was year driven and was It of third

trend GA flight a had in comparable X.X% intact. Domestic of per roughly The is long-term of So growth period. difficult year activity this year

on As through first track with few quarter Aviation result with to Atlantic the deliver year is of full a our guidance. consistent first the is that IMTT weeks

of Our is during of as the aggregate results Contracted performance a period. expectations, the portfolio operating Power good reflect ahead result our a principally that contribution from across

We result have year its as Power outperformance. full a adjusted our outlook for for of Contracted the

at Hawaii segment performance expectations. MIC our the was below Lastly,

Hawaii principle rate the saw margins Our interim expenses utility partially resulting in Gas award better business, higher general offset June. margins and case nonutility by from lower

quarter. Pacific relative to Critchfield contractor, underperform or third expectations to continued the through our mechanical CPI, design-build Our

decisions discuss consequence we sell entered of us a of we most that quarter another to through believe to per financial continued a confidence will following business. agreement considerable third The XX. the in sort, Power segment. have into will to Board that and to that authorized expect the an proceeds quarter do down payment into the operating given of year. record Liam better the value Subsequently balance November our to not we in process segment the something been the impact appointed gives decided mechanical sustainability achieve the on payable options As consistent of on assets second The we strengthened the is to of will CPI the launched the market and of various write alternative contractor. our call next in current year. we dividend earlier rationalize with dividend. strategic of selling we in that provided share for difficult and our in acquisitions conclude support be though that We has smaller vein, we remainder do were robust XX, wholly to of we Advisors of capital. the of our dividend priority but of trying portfolio strategic our concluded have sale businesses In we'll Based through believe the last sale these consistent overall BEC. of in our non-core of MIC indicated a a on sheet's stable that a our scale cash the we performance businesses. see similar our moment, with $X.XX the flexibility, the cost shareholders the of assets the effectively quarter, Contracted our we can results, Early redeploying financial be in looking at In process November the be sale in in fourth what priorities. of we guidance renewable our the to served improvement

balance the Liam, over equity be waive external In provisions the market short, portion will Before the of less the the X% manager base management on company. has decision calculated base will our other debt. the management with I In on on by to I'd to by assessed sheet. No of like of be turn holding MIC. fees fees particular, the now its touch services agreement our one announcement fee a manager call yesterday, cash to capitalization two as management paid company waived made

entitled $XX today. Chief quarter third primary effecting with Liam I'll Financial shares. on assessed to color management At to Officer, third approximately The is our the impact fees continue turn is million. performance reduction additional expect who in changes point, deployment to a quarter provide capital changes We reinvest call the new will these anything which the activities. The in of on are a our financial to it over annualized Stewart, to compared our this and the of

Liam Stewart

Thank you, Chris.

approximately with consistent of performance flow business expectations. free $XXX anticipated that better Contracted produced third businesses and performance an Our our two IMTT $X.X than by quarter, decrease our utilization Power cash the in larger reflected A financial down million offset for MIC the the the from EBITDA of year-over-year, stable result contribution was million has overall quarter. the in although segment. Hawaii including expected That in

decline increases capital repurposing cash XX% capacity between XXXX. For free IMTT, difference EBITDA the taxes. September state was year-to-date approximately the XX, months to at anticipated nine the free higher higher and reflects nine compared related X% ended flow million cash in year-to-date first totaled with and expenditures, just decline interest expense, $XXX the months The of principally down of flow in in maintenance

in increased the noting of continue months more XX, cash. our what's to is provided think XXXX. million ended operating same that September businesses nine amount X.X% $XXX I in substantial than a versus Cash activities by the generate period by to

CPI As throughout we of support there of characteristics report the been building August contracting business mechanical objective services we business a have financial a businesses the of poor. mechanical noncore the that products that the channel infrastructure additional The been as which Chris and Hawaii, core with another pleased that XXXX of has strategic of business noted. of Gas. a In XXXX in reinforce and through part Hawaii I secure performance to principal of end nearing contracting to priority am in contracts we're divesting our initiative. businesses the acquired

we Consequently in an we sell nominal consideration. million. first negative business approximately agreement the the for of value subsequently to wrote-down months generated of entered have XXXX the into nine EBITDA For quarter the it $X third and of

million have sale third million $XX our in write-down and in we of a relation results of in as We $XX prospects disappointing expect approximately the of a in and have clearly of but is ways. early lockdowns sale business, on impacts CPI, quarter. quarter and our well fourth no divested impact several believe smaller incurring the thing noncore the outcome, to selling in cash CPI subsequent to businesses In The given of XXXX lockdowns aggregate some was it close right nature noncore the do. the performance to This CPI. couple raising The we liquidity.

actions these First, EBITDA our quarter million. for approximately by $XX reduce reported the

statements financial line Second, $XX depreciation our and amortization through of million noncash through the approximately of other flow items items. primarily

performance for outlook free of report quarter flow our Atlantic on guidance to EBITDA the to Turning updated and stable XXXX EBITDA our reaffirm Based our aggregate to with full our for and quarterly for in we last XXXX, cash am respect the with I second to August. IMTT year. guidance pleased Aviation, the for both continued

the the I underperformance performance There in and of we MIC EBITDA for prevent puts have have CPI the events will segments. the consequence The business that the from of this into a year. for of target takes segment discussed full the of view As delivering a smaller and are its Hawaii couple is year.

impact of have MIC by the lowered Excluding Hawaii the our guidance we $X write-down, million.

hand, other have remaining we development by from a $X increased each come EBITDA will The from million the approximately and segment of Power contribution $XX our the BEC Contracted million. expected EBITDA On renewable. platforms. contributions This of from operating included of

our As a consequence our be full-year to prior consistent around we the with outlook, of our results midpoint expect guidance.

$XX our had cash estimated million free expect we approximately higher last We than to flow be quarter.

flow. dealt the the in thought within capital closing have maintenance we that rather free these transaction cash would were of advance of expenditures the We however, incur of certain disposition BEC; improved

capital strategic deploy of XXXX projects The have more $XXX as That's have already the involved in or now capital characteristics Regarding to our year. been to we a projects is expect committed shifted in deployment million growth the which projects good we capital of repurposing has deployment year's certain These our IMTT. XXXX enhancing into have of of approximately XXXX. $XXX related timing priority million on on expect and $XXX the start backlog infrastructure primarily we million. this to the to majority that businesses. growth of of repositioning deploy The next

related an all particularly IMTT We than million more $XXX IMTT at We $XXX with opportunities this including a been into approximately total of at have are which IMTT which rate backlog. projects rate opportunities these to reposition under time been pleased have million XXXX at as well aggregate secured. the end contracts alone. that The at anticipate at entering consideration year progressing, to of has of number value to before as adding the

to our some to Chris, call over of activities. on would the on balance like touch management and I sheet Before turn our risk back the state provide color I financial

$XXX of has created capacity various of than means Our the more have of facilities tranche convertible are balance debt July strengthen would clearly we $X.X that our extend of million revolving of ample our that, Notwithstanding year. actively that paydown tenure and a billion. in mature With number credit undrawn further facilities. notes liquidity, sheet initiatives next refinancing debt our progressing the considerable we of of

our ensuring to the these that our the growth and to in incremental sustainable the fund I evaluate investing with of discussion potentially share distribution shareholders, a noted in constitute resources our related positively derisking also X.X our Our a significantly capital XXXX. safety a and returning proportion businesses, of employees, greater of In of allows the growth maintain and below the stronger means we that maintaining allocation in our tax internally sheet we to buyback. balancing. were capital generation to assets a balance form would cash benefits. generated of us shareholders, excess times capital business. of These of significant included and policy Last leverage of priorities discussed and Both that quarter I maintaining

up. resources to preserve share program of us the options is grow using the doing to the essential invest strategic these to hand it to have in businesses enhance Chris this tax that generate and the and to microphone that wrap possible incremental yield our so. we I'll we to infrastructure in internally available we generated priorities. future that extent things would characteristics back Any fund accommodate in repurchase However,

Christopher Frost

and prepared independent board continued Thanks strategic In held term directors, I'd our maximize senior concluded focused the opportunities shareholder to is we've with of of which during we prospects. last near board of our like near issues October minutes we annual to Liam. retreat our our morning. including [ph] discuss range our MIC to that event, our strategy most the wide the remain the In At review couple value. our remarks, this priorities appropriate over a medium discussing [indiscernible] key on the for of term to the been strategic

with way prospects to these focus a creates remaining continued improve may with and positive the different alternatives focused made earlier successfully in have practical to that a future. the respect are consider. path Indeed executing in on you and commitments preclude the of priorities not against By flexibility we priorities taking pleased Our optionality as the these followed does on year may we MIC. we momentum Overall, solid through we have prompt we this generated. appreciate,

illustrated are revenue streams our high-value IMTT. We MIC possible. infrastructure reinforcing locking clearly in and This assets the and is of characteristics efforts in repositioning contracted by investing repurposing physical by where at

divestments the core non-core financial $XXX sale net priority in million our balance These managing are address to increasing part have businesses. our generated efficiently, our smaller flexibility. proceeds. helped strengthening and from proceeds capital Year-to-date have and sheet capital us third in by redeploying approximately of businesses We our our

each to matters in in XXXX. are have executing and to the the Hawaii line fundamental continued we correlated our our the having continue the and XXXX to and is and We Atlantic and MIC efficiently substantial and are liquidity and IMO businesses. couple made with capital That said, related stable Aviation portion expectations notes we summary, watchful for including impact on our years. to Gas have drivers performance initiatives from over in with to well with of the in remain we to ample as of these. the segment of of We exit that financial of utilization the the aviation to deal next Atlantic's rates Flight storage In respect perspective. refinancing as a strategy with XXXX confident implementation program Hawaii growth potential CPI. the and operational both convertible performance decision clear IMTT remain of priorities flight benefit perform continues the we our activity general the economic continues to of monitor to from U.S. activity of factors fund activity growth a impact continue our monitor

We and to our of the will flow exploit EBITDA amount characteristics continue them. generated free cash enhance and of business the opportunities to infrastructure grow by

into participation capital to moving are And are your from Thank opportunities for of from to our strengthen that expansion to Thank performance. managing and efficiently lines result and our and we the We a economic Oppenheimer. today. mindful in increase And your rationalization [Operator continue of call long operator for business fact we that, remain look sheet portfolio Instructions] financial from of for questions. the again as optimization to our balance our I'll first comes you phone open And our flexibility. our once you. question ask our Ian with an Zaffino

Your open. is line now

Ian Zaffino

Hi guys? how question you be – very you thank great, would much. are One on just

Christopher Frost

you. thank Well,

Ian Zaffino

you Great, there the repurposing it? incremental decision question incremental repurposing do idea an would of what be think how us there more that that, of Can the criteria buying back se on is is and about per an or even you give do barrels. spending to the sort the opportunity of Thanks. stock the return money versus that to is

Christopher Frost

Thanks Ian.

of we contract and we will repurposing heavier will X.X barrels oil. to million prepared completed we pleased we that related And remarks announce as X residual currently be that targeted during million the the this XXX,XXX that principally November. final in the under recall, year you'll are said around lower be highlighted that the a If targeting Mississippi to at barrels we're

the our on that return to cost supplemental call was times generating. that recall around which materials spend the we earnings EBITDA of we're may the in You X repurposing indicated X second to included

incremental a to that is lower we see more as oil residual importantly clean the should it for storage growth heavy also IMTT tanks we're So the on certainly Coast. seeing IMTT capacity but as repurposing highly out we which see market being significant importantly Mississippi storage on to and Gulf converting it the taking of

Ian Zaffino

in idea you to and et on the go that areas could are returns capacity on targeting cetera, incremental Okay and there? then chemicals, also the that be gives an what you're going putting there the what's to of

Christopher Frost

is as mix Yes, additional both we already a going the with look repurposing, capital on I mentioned of particularly of construction a two we times EBITDA. where we barrels that was X.X we're as that have products for chemicals getting as that of to product from the learnings accretive like the indicated respect a sort to chemical we projects, getting the on terms in or as those year, previous in well that that times it's off clean stabilize to respect the to return three that spend million spend capital basis the and the with to of to this see slides the X own ag the we're XX that land into repositioning is more done

and So term projects the see are contract being as those of with a a again, accretive we recall long lot customers. that under those

Ian Zaffino

Okay. Thank you very much.


next Tonet our And Jeremy comes Morgan. you. from JP question from Thank

line now open. is Your

Christopher Frost

Good morning, Jeremy.

Jeremy Tonet

is this Hi, Jeremy. for on Joe

expect I also about to will So do a have see just in increase what then year it ask or there? wanted you wanted XXXX jumps IMTT more you've through utilization, the expected some how end about gradual and be a if you trending bit bit in little XXXX, talked a that to I

Liam Stewart

it’s a good that's Yes, question. a -

that XXX,XXX anticipate X.X% tick barrels will of up X.X X.X barrels get in finishing service from on and of barrels the, million As by we and we slight quarter But XX% having those a online. utilization. repurpose previous that we from Phase first the utilization anticipate and all calls, indicated at add we excluding X the the year the is sort prepared million remarks around the in around coming will

them to selling are sold around you we're respect to that good that And of increase is marketing on tandem implementation That I in utilization so we refinery a will we process XXXX around remarks, and to be come utilization the and next with currently in making capacity progress to then the there'll sale approach be but that is in IMO refinery the and we that's anticipate my million up, year. is settle in X.X working IMTT. that In storage I the live, refinery IMTT. utilization that of the limited extent process the capacity of at uses that barrels of addition, will with working which recall We're refinery owner with currently of that which expect online an they we and demand indeed importantly, as another or of as back be customers processed that think our will X.X% marine taken increased will storing to fuel. those be changes, for going simply of to are into storage for products blending to whether the products there, make how driven respond it feedstock clean compliant

Jeremy Tonet

Okay. That's Thank all have. you. I helpful. That's


And Thank Tristan from you. our next comes Richardson SunTrust. from question

now Your line is open.

Tristan Richardson

Good repurposing on morning really I of gents. the in as helpful appreciate XXXX. clarity more the kind and at look we

that on to contract is on that's the for capacity new as, should on new plus dependent the we tanks about quarter, during could you last think of XXX it new capacity XXX,XXX barrels so guys FID of XXXX? about Just the the talked repositioning, incremental come

Liam Stewart

announced, a with quarter. XXX,XXX the XXX,XXX that to projects project last at is Methanex that that is third announced we That's to are to night we a announced separate barrel XXX,XXX investment referred looking making their to from last facility that Methanex they correct decision we tank final The the sorry capacity that we add to tank respect subject Geismar. project projects

significant by in increase for relates investment a with production necessarily ahead to capacity coming case ethanol. their a to online. decision of it go So final as decision be will whether a it isn't that some The plant which Methanex would it

Tristan Richardson

of just a of timeframe a or size at give sense us then complex could general XXX,XXX the kind to And construct the of least That’s barrels? helpful. Chris, that

Christopher Frost

around Yes, construct. two something years to generally that like would take

Tristan Richardson

Helpful. the the the the sale? in of might reach taxpayer that at sometime renewables as look implications does on - the sort just on, guys Perfect thanks. last get and from I'm it then with kind close portfolio of you of talk XXXX, about kind just in you timing case of curious Liam, which And there status the just you portfolio NOL pulled cash me. of renewables could terms a in one and forward

Liam Stewart

good Tristan. a Yes, it's question

I how think with zero anticipate all of and would AC sort in to of of ultimately we end capital down the NOL NOL start the should that we absorb the much deploy actually pretty fourth year in on gain that on at terms the we the year will depend XXXX. this the would costs the had of NOL we quarter and much

structure you we deploy parts $XX in What that be would it's capital would if financial anticipate cash cash level only in advisors. the renewable some that that think we be for of tax there's There successful last think $XX next assuming roughly but million of taxes terms of And a successful top we were the million to transaction that, million moving incremental $XXX still said transaction. a to on federal will in which that across assets sold. year excess We've vicinity side. they at just would on figure. million about will what appointed taxes early of $XXX mean I the to quarter were extent we be, liability the it, too call cash some

Tristan Richardson

very guys much, you thank appreciate Helpful, I it.

Liam Stewart

the our that, point names it's Tristan structure look of sort $XX at you those assets, my it one is on liquidity. of back just operating of remarks thing million on to was this EBITDA the side, or notwithstanding I renewable of prepared divestiture the impact the little have divested businesses if think mean, the businesses the will in range renewable very I out important year. contribution and Those

just point So that out. want did to I

Tristan Richardson

you. thank Okay,


Markets. question next RBC And Capital Schultz TJ comes from from our Thank you.

open. Your line is now

TJ. Schultz

Great, thanks.

Christopher Frost

TJ. morning Good

TJ. Schultz

morning. Good

eventual what's First little that decrease offset that on for just distillates driving rates and in Harbor quantify rebound the gasoline XXXX, how the can expand in you and storage a the in in does utilization? much New York

Liam Stewart

certainly. Yes,

we continuing that it's and financial perform in for think to both from seeing distillate. important note case gasoline perspective. is Bayonne IMTT notably It line the from to the are with expectations in is and a softness I utilization that

of it's However, consistent respect not expectation, also in projects utilization number focused be that increase driving infrastructure that anticipate distribution that about increasing increases terminal. connectivity prepared Bayonne's recover. the it which our really to there And on then recover the Bayonne, in as market at pipeline talked we to multi-modal the increasing important but will is handling utilization storage also IMO in and simply the we we is With to a including that that storage of are as increase will our implementation at repositioning waiting rates, XXXX. capability also which we rack and terminal, capacity also expect looking we remarks to at the which are for will utilization a of case for a demand approach assist looking that truck we

an our that so, anticipate once half will in there gets next be recovery to capacity similar is anticipate of be demand currently of year of market, second there and the rates. we a most notably the increase out taken view we that And excess

TJ. Schultz

nearer Okay, to really half recover starting of next the back term and rate so pressure year? is you're then expecting rates

Liam Stewart

will rates gets follow utilization Yes, clearly taken capacity out. as excess in increases

customer’s ideally we're IMO high So infrastructure will plays utilization it's approach offering that projects is. sulfur therefore also finalize drive looking it's our to waiting or sort at to you that response simply to or to demand. we're Bayonne’s to these or will in recovery start is which customers. and on we enhance as rates respond But whether to their need recovery to be see then but And other clear, said, as whether appreciate low also follow. I customers of we We're XXXX, fuel to a quite how blending, anticipate placed out. not Bayonne storing that will whatever what But bunker

TJ. Schultz

at our Okay, Bayonne now what's excess capacity? the utilization

Liam Stewart

we you'd disclose Is reasons for not as a appreciate. that rate commercial

TJ. Schultz

any from If hands Pin view or you may Mississippi Oak the Mount Mississippi understood. lower dynamic look on on Terminal changed Okay impact competitive new recently, Lower capacity Airy ownership for on? bring on at the we the they

Liam Stewart

Yes, price of reported the the term expect think short the clearly I in impact paid are don't One noting. IMTT the which a But are contract there Marathon. on interesting structure. any is worth observations given we number by

to note. that think these value Rose Mississippi terminal infrastructure of sort inherent the the on underlying facilities and think I I has think when and interesting Lower you it’s terminal in superior St businesses our

privy other away what is the respond point increase for look important that that to going repositioning to as that fact at we acquisition. indicates by I seeing XXXX. storage refiners would we’re that that that they be it capacity IMO to of think from supported to us St. demand clearly it we're to I I strategy Rose indicates there, we're but not clearly Marathon's sort the and us the mean, through think take is Marathon's

TJ. Schultz

Okay, sense. it makes

active moving you and obviously Just within of options on longer there and IMTT just spent $XXX presented the on last of and know year of capital what deployment just but to it the next on board how specific lot just other think new term like focus were lines sounds think or then any other options, you a that's now, hold million I board, you business right met of are with forward mix term about options? could be the longer about trying to on the as kind repositioning.

Christopher Frost

said the on other our of order path being decided focus sort least That - to color. met is flow. focus the see add and will really Liam on our we We maximize was we core cash to with and strategy shareholder time our order one during three but clearly that as that forward retreat of prepared board to free enables at appropriate drive that and EBITDA then businesses. look in us at the growth verticals, in businesses core execution successful remarks the in for most to the that the and strategic the take I'll value potentially

Liam Stewart

it’s Liam. Yes TJ,

think we we $XXX existing that really if sit our done today, from backlog said all have over the the we've that non-core at the the of And for where about $XXX hand infrastructure for a in capital you as capital focus prepared that is we year, verticals divestitures businesses. roughly as if spent backlog course deployment and And the of year we spending perspective roughly businesses. look I this you reinforcing in characteristics for well. remarks is the then anticipating existing million existing with in our year of program of and $XXX hand million year goes our think the sort our year-to-date, million this next

growing any at any we existing other the on businesses before trajectory external focus businesses really of look So those seeing or verticals. and

TJ. Schultz

Okay, thank you.


for time. Christopher at this would like remarks. CEO closing I Thank you. turn Frost, further And questions call no back am to showing I now to the

Christopher Frost

for you our call participating conference Thank today. in

financial at meetings February. full ahead. on time and the be the update road this and analysts and We year speaking in we'll provide one-on-one in course on will with XXXX again XXXX weeks in update you our investors with in for of forward to the you performance meeting conferences on and guidance We look during our many of


you Ladies and program. in your concludes conference. today's thank participation gentlemen, This today's for

disconnect. Everyone all day. a great may You have