PBFX PBF Logistics

Colin Murray Investor Relations
Matt Lucey Executive Vice President
Erik Young Chief Financial Officer
Spiro Dounis Credit Suisse
Call transcript
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Good day, everyone and welcome to the PBF Logistics LP Third Quarter 2021 Earnings Conference Call Webcast. [Operator Instructions] Please note this conference is being recorded. It is now my pleasure to turn the floor over to Colin Murray of Investor Relations. Sir, you may begin.

Colin Murray

Thank you, Shamali. to welcome and morning today’s call. Good today Young, our me partnership’s management are members Matt Erik President; senior Vice Executive team. CFO; the Lucey, of With and other several

like release, would If our copy on website. available earnings you our it a is of

management’s of are by like would statements laws. this to the the the today’s we that to the the intended in direct Safe many those described your securities release. including press results or could have statements conference in are In state summary, with the SEC. expectations release federal I differ forward-looking begin, in attention or forward-looking disclaimer future expectations, on statements call filings be from cause we actual Harbor covered that provisions partnership’s to Before There our factors that and contained press under to predictions it outlines our

and measures certain the As partnership’s will be noted using performance results. release, we in while describing our financial non-GAAP press operating

For turn reconciliations now to today’s will the I figure, of Lucey. to press release. provided GAAP to supplemental Matt tables the non-GAAP call in over measures the please refer appropriate

Matt Lucey

the the consistent relationship call. third everyone you, us quarter. today’s Thank you strong sponsor. well XXXX highlight PBF of third quarter our results partnership’s during and for with Logistics of morning, thank The through business on XXXX operated the joining Colin. and Good and stability the our

the to the in our XXXX We guidance $XXX above for slightly $XXX range, continue range, previous the to partnership expect EBITDA million be million XXXX in revenues range.

announced financial to grow we our ability the the distribution maintaining unit. future. and to partnership preserving reducing the balance and In of debt make priorities. maintain per pay-down cash strengthening net to sheet, our revolver the healthy while balance coverage Today, near-term, partnership focus we and the are a $X.XX reducing continue the to meaningful revenues consistent are generation on Our liquidity flexibility, debt. By continuing strengthening in distribution to allow investments

We and to Erik. our policy review it that, going market respect distribution use conditions forward funds. alternate turn continue With with performance, to will will of over to company I

Erik Young

Good thank and us We million of compensation partnership remediation net to you, you income the Thank this for million, on everyone partners limited with East EBITDA the Terminals. attributable today’s quarter unit-based third morning. which environmental $XX.X of Matt. million joining $XX.X reported was non-cash roughly includes Adjusted costs associated and call. Coast $X.X morning,

million maintenance. total During the $XXX,XXX roughly $X.X approximately including quarter, we CapEx, in spent for

$XX to For during repaying of after XXXX, the $XX ended we roughly million currently $XXX.X million inclusive multiple strategic third in million $XX additional an small roughly with be $X million, million the expect liquidity to in in We capital expenditures quarter approximately quarter. debt projects.

availability $XXX of Our under of and of revolving balance debt a facility. was liquidity consists annualized approximately to $XX.X million Net million adjusted EBITDA our credit cash X.Xx.

continue balance for to open cash opening excess strengthen leverage We we And will improve our expect questions. to using the our concluded sheet. and Operator, remarks. we call have now, ratios the


your with from [Operator with Credit Instructions] Spiro question proceed Please question. Our Dounis is first Suisse.

Spiro Dounis

optionality around. forward you structure. Thanks, here structure I the structure up to Hey, of the with Eric. going the keeping for operator. is on growth to kind Hey, stay call and like MLP it around MLP participation They Matt. now, off sounds the start mention and want PBF but some in an come did

you is back of words, contingent growth capital specific lot was having In see kind thinking how here PBFX the this other can go a outline to that? examples to do growth and that you some PBFX of on issue presumption can to self-fund fund or yourselves about you how participate some that in curious, of markets? capital just that how can So are

Matt Lucey

but dynamic. dynamic business say on markets, of Part least. But environment are the now say the to it to leave is the I’ll is we is on always steroids capital to in Erik

of the the the the in news the to weeks, seen the expansion of of Over MLPs. MLPs elimination couple and qualified we are MLP that have last administration market considering the come Congress income out

in reasonable So, very what I believe over the seems the income week. expanded. That could do last qualified think the trying MLPs there what I to are is to regards is safe to now. be be is administration clear And a chance

which financial done believe we supposed going what over turn to to forward. will it’s flexibility We if operate have gives PBFX that’s which de-lever, necessary, will access has more operate, do, is I capital but So, that Erik. markets well, certainly us to

Erik Young


Matt’s right the to think done on I follow thing. comments we have

have we are in opportunities, markets. the are be we there or put growth partnership reliant position the a not if on incremental capital not now We on will relying where

financial where got we an have. our are there think flexibility we we if that However, into there quasi-rotation of a because qualifying opportunity that, becomes of will on the don’t leverage type If is necessarily balance existing suddenly sheet is, the that some opportunity biggest existing be I will growth us just be for ratios the income. can should by it be enough grow, the will assumption MLP happens, here and renewable require if well again we I use think base change markets. to equities the banking have ultimately below Xx, that

Spiro Dounis

Got guys. Thanks for it. That’s that helpful.

just next guidance year, just outlook for to – one, year for million I $XXX EBITDA. obviously, for but about this yet know thinking you are not improved yet the XXXX, Second providing

XXXX, going recovery And is items just lower. tailwind. a am Big recontracting. so thinking of put or ticket that takes drive Obviously, the either as in higher larger number maybe I we the are about it we to think in and buckets puts that’s

XXXX volumes demand and I than stronger talked Tom about think XXXX. being

of as think So, maybe outline year? some just those movers we about next big

Matt Lucey

we back – past, but have that wasn’t have the explore I’d has other had just PBFX mentioned years expect last going you extended parties. we opportunities forward. about. processing the Maersk and options tell that talked potentially consistent with demonstrated we we and going would X.X earnings that to as a providing I earnings service over In And to consistent deal

contemplated swings big than what’s market. other envision don’t I in already been So, the

Erik Young

the Yes. for million And City calls. $XX be contracts, that Delaware is math East by will down. ultimately down the at has is only based EBITDA. already It’s I concrete those is or contracts of This that thing outlined going previous stepping rail know we Coast this – in easy go think to in about been point

the we are that’s year, before of And going our will what concrete built next will and we early then But So, we sit of I as contract a budgeting. the the out already of by the guidance ‘XX come think for probably think then process in And stipulation board that’s of know in. today. we with I through year. year end that’s

Spiro Dounis

the Last notes pace sort end just around repay one have now I to guess coming of of it. credit of thing year. if debt, you by at you I of are with up the May in on Got next got this the could, pace XXXX facility, entire the XXXX. course, Then

view after think pretty Do of that So just happens going how that? the low and next or to keep point. debt, then curious want And for on then dealing the about of you as pay-down help what at Your balance to sort we lower is to sheet? XXXXs with just plan your going leverage be think maybe year? about think how ratable you about us the is the over trajectory it

Erik Young

the I and doesn’t and – of class we us what is slightly continues of really renewables queuing overall, availability and the we that to are would of market the be have the there shrink probably one think to going companies, tells of market path. occur the if the suddenly in just I interest say In market cap off is turn MLP event to asset market qualifying that, terms there numbers starts in as income, of MLP terms in a again, suddenly different path. overall also probably

now, been I reducing the leverage. have overall we think right

We of pay about we no you I in our are and bank pretty in to have a that that provision long-term don’t of revolver say bond. want feeling path, up all latter for probably call would with right, some type comfortable the relationships

things to have I a paper. shorter You interest through, it, call expense means to go. would to D.C. this of Washington, slightly want That we summer here But piece I – just as determine time at we are your which we are going clarity are think from possible. low And next think enough exactly as get some keep way point. to dated waiting

Spiro Dounis

Okay. guys. the That’s all time for I had. today, Thanks

Erik Young

Thank you.


now to will And we have call back for closing Matt questions. no turn I further this the at remarks. And time, Lucey

Matt Lucey

call speaking forward appreciate look great quarter. certainly next and listening everyone Have to again I a today’s day. to


for today’s concludes you time. and disconnect this And you at conference your this lines your participation. Thank may