Loading...
Docoh

Fortress Transportation and Infrastructure Investors (FTAI)

Participants
Alan Andreini Investor Relations
Joe Adams Chief Executive Officer
Scott Christopher Chief Financial Officer
Justin Long Stephens
Chris Wetherbee Citi
Rob Salmon Wolfe Research
Ariel Rosa Bank of America/Merrill Lynch
Devin Ryan JMP Securities
Robert Dodd Raymond James
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good day, ladies and gentlemen and welcome to the Fortress Transportation and Infrastructure’s First Quarter 2018 Earnings Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, today’s conference maybe recorded. I would now like to turn the call over to Mr. Andreini. Alan begin. may you Sir,

Alan Andreini

you. I Fortress call. you the to would and Infrastructure like Transportation earnings welcome first to Thank quarter XXXX

Joining Chief Joe and me are Chief here Officer Executive Adams, Scott Officer. Financial our our Christopher, today

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

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

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

turn to like over would call I Now, Joe. to the

Joe Adams

share record announce a start be I on the per you, May company Thank To paid Alan. dividend based am our pleased on of XX shareholder as our consecutive will call, dividend XX. dividend $X.XX The of to XXth XXth May and public a date since inception.

ever; Energy Aviation highest operating million, throughput million adjusted normalized current FAD $XXX is million; terminal, our of highlight $XX.X greater ever; FAD the few total first, a for company second, considering LOIs Before third, EBITDA our $XXX going million, to highest which projected over at FAD finally, our our million and X of than the dividend. entity, Aviation highest normalized barrels, now Jefferson run-rate I like each would numbers $XX.X them: ever;

XXXX metrics $XX.X XXXX key distribution. adjusted and detail. million the million of $XX.X QX in in to of QX EBITDA available QX and of $XX.X and review compared of Now, of was let for versus numbers $XX.X FAD million FAD was us XXXX. QX million $XX.X in or XXXX million of more The in for me million. QX $XX.X for QX EBITDA funds are XXXX Adjusted

FAD at the $XX.X improved & FAD numbers, During due normalize $XX.X portfolio, to QX first Corporate strength infrastructure from Quebec we negative largely equipment business comprised from transaction Maine did $XX transition again Railway overall The costs. we see from due infrastructure QX on quarter, million QX our adjusted the our to the million our Central was ability million and from EBITDA number and in XXXX end of generate number negative improved lower strong and or results run-rate acquisition million CMQR. $XX.X FAD we corporate. to continuing as and Once primarily at a the G&A corporate of lower leasing the basis.

accelerating. that see importantly, More both we and trend continuing

annum. continues strong. for macros setting also is turn to by growth be the continue projected traffic at Global e-commerce The impressive. continue X% backdrop of growing passenger to Let QX me first growing was industry the for to to now business. Aviation and increase demand very XXXX overall to X% X.X% a to due rapidly per for Freighter be

well $XXX up and outstanding. million is $XXX another QX. quarter, tired terrific annualized, are outlook get I performing Aviation million in annualized portfolio number or approximately the QX to never normalized saying. Aviation numbers Aviation in Here from was $XX.X had which the is million our QX. of FAD The very

in than we from million expect more to signed we QX and close intent $XX or letters deals. new have call, more had of on year million of in $XX end As plus additional million an $XXX year-to-date $XXX of new this closed investments at million the

I of new core should portfolio with engine XX and commercial and opportunity With the high approximately business, above in with that $XX engines million to that, XX-XB we large engines have Aviation by of another XX-XB of be on the which have CFM run CFM are the our the signed the part great LOIs barriers yet size and established very added average all growth engine our FAD entry. XXX XX-XB and year today and aircraft XXX been that team bringing and aircraft which our as XB by of expected we annum. XXX% close next a $XXX because have we of to AXXX talking QX rate major about, per have in also addition of to In still million space is of rates of powered QX engines come. aircraft those the CFM talented are to powered aviation family the XXX dedicated global XX% aftermarket a FTAI this engines. And best gen and is

these multiples. maintenance second, of there from market. every and aftermarket the to called are covered engines percentage these served largest that transition repair about XX,XXX or our commercial goes day, power which time by the and Today and CFM served half up. are the operator by engines agreements fourth total the or our those by MROs otherwise engine half of in over So provided aircraft by is Over are flying independent service by operators airline target market the third market that original our operator is as organizations by

CFM which average on $X been year projected to the average shop or opportunity is at is market sector and growing. in of above million there well increase every XX% rates X,XXX years major inflation, visit cost So annum, nearly for approximately and today today The year is going increasing has XX,XXX engines. over means X a huge this annual shop XX forward and so are per visits those engines every shop every go through visit aftermarket

our module swaps, the our we joint and the can three, for believe developing MROs. for used sourcing are; coordinating Those advanced engine our that our $X.X four, suite last through been distributor million Our visit. we years, shop between X venture, products lower one, per save million and $X repair products of partnership cost shop – preferred parts with concentrating visits material partnerships and two, with have

and earnings CFM expect saving offering this airlines and much operate products We be unique our beginning to believe who in can which cost XXXX XXXX. business add to services and year we accelerating to very engines, material

QX. three three be vessels the shorter offshore Turning for of vessels this while hire XXXX, on of most for of will run now the our the all few jobs lease and for Two market a the remains will likely have to a but offshore, All improving. year. of is of definitely Pride oversupplied, balance QX

market are have highly suited oversupplied year of converting intervention also market. specialized the well to the than for we The and is more exploring the construction much a is Pride in well intervention vessel less trading actively this Additionally, XXXX. significantly end We dedicated hope possibility well to vessel which asset. by that the profitable market

excellent needs they in to the to infrastructure The continues for for strengthen. throughput demands. to decades grow new been have and terms support Jefferson now are both quarter and for Jefferson, best of terminal macros in to refined with business barrels XXX,XXX and one storage Jefferson refining construction and had presently Turning Gulf an X including and continue the we through currently All product an handled of additional and crude. crude. barrels of and of barrels XXX,XXX constructing of are volume that XXX,XXX the is under barrels X of million ethanol, contract products million storage record barrels built starting we

and demand contracted believe and additional pipeline for storage of to per XX,XXX year development we – the the there go mapped to XXXX. to advanced of to around early of technical day refined barrels per system the us volume plans expect of commercial, secured our to additional rail and next are to Mexico this and day by rail and contracted from rail day XX,XXX capacity barrels Mexico. and QX engineering early per program XX,XXX have fourth, years. connectivity X We capacity we Third, by for additional is refined products volume doubling products barrels out And in our additional by

with refined plan capacity new Market year deepwater to have $XX in I be be the million use and in Link end approximately per investing and and for of an outbound one, customer mentioned. storage. this substantial at the $XX connections in of expect $XX of additional XXXX, this portion at the an invest EBITDA of expect investment online, for approximately barrels the million million X products we business approximately pipeline million additional Zydeco decision, inbound a crude; and will just making Prior to in we an barrels terminal two, $XXX our storage year three, XXXX, dock; the of XXX,XXX the to and In million is So to commitments run-rate annum. terminal additional that to

this $XX total expect million $XX add incremental $XXX expansion the per bringing $XX EBITDA We million annum. to the of to run-rate approximately to EBITDA of million end to annual XXXX approximately at million

have storage, pipeline two and connectivity. inbound outbound which terminal For docks, and million deepwater X a will barrels one dock of barge

all the by served railroads, of BN, Class this, to capability and three KCS. exceptional that will continue have to we being we In UP have addition X rail

of to docks, Beyond additional barrels two additional planning for pipeline additional begin expect connectivity. deepwater XXXX, million we XX and storage

million $XXX to million invested million capital approximately with phase, $XXX $XXX this of additional in annually. approximately should generate EBITDA For

Canadian can to and XXXX market. the a do most favorable added WTI rail capacity we market at year be likely very for to by and opportunity through wide briefly new the WCS pipeline least Canadian Turning crude before this market, expect spreads

We lined month running beginning XXXX. X XXXX committed November up trains and have for per X September through trains QX

EBITDA let’s $XX and turn for QX million. was million CMQR, $X.X was revenue adjusted to Now,

numbers these which that note a had While events had effect to in the the it’s ever, we two important quarter. are positive highest

tax $X.X credit booked of XXXX for we XXG a First, million.

benefited traffic, which is now ended. most lasted Second, short-term but we QX, of from detour

it excellent and are While and that, would quarter for these pleased that good. obviously we be said events place, business an a Having XXXX. was quarter to for took regular the annualize of QX unfair all are traffic pricing way

commence we Ryan car is terrific business, and doing cleaning operation Ratledge at to new are CMQR a bottom quarter job. this and to the that line expect As the the team

or taken developing of in to full forward the steps turn Repauno Repauno. let’s has significant liquids opportunity. the Now, natural gas NGL potential

barrel butane year, last cavern existing currently filling we $X approximately with are this XXX,XXX year. as we generate in which EBITDA did we expect million the will Firstly,

will dock Second, we are be reconstructing end XXXX. year operational which by the

the determine core Third, with and very positive. are the for development cavern of granite are the available was new done that needed to results we of sampling, mostly which size formation the

in we million caverns, $XXX rail from approximately to with has in built from full the annual this EBITDA made buyers numerous great XXXX more source and on numbers which facility load generate Fully dock X we in we export. be we international meaningful for mostly approximately XXXX. ships On Energy into butane from beginning to the storage Long call. capital our those potential of direct load known we and would most next to are expect front, are barrels Ridge working Long detail generate strides of then $XXX and and active have that and Ridge propane commercial forward and out, EBITDA likely Prior would and a Repauno XXXX Hannibal in terminal would ships Marcellus, to our discussions and rail require of able by completion of year. formerly the moved million hope to by as million

frac have we sand plant, power started now the a trans-loading business. to up addition In

barge We X-year good train invested sand coupled system make $X road customer site we in commitment and this usage actively area. a desirable the for have that many our with this for access in We have and million others stocks looking. one year unit and growing in loading minimum frack significant unloading the volume uniquely and the deal signed

a butane expect in unit minimum We ideal minimum be terminal and million direct which and in fractionators a pipeline, train this $X would is EBITDA are secure loading sand can use obviously for $X year million also propane we cost local generate to connection. effective frack that for for One to Repauno, to with of XXXX. and this We just trains capability these destination discussed. pipeline discussions our very by potentially of I volume in which

and plant, E&P local with On secured for have offtakers gas under a active fixed company the supply now in power power XX-year a contracts. are joint price with the the we gas negotiations venture we through

total will needed EBITDA of for a new one we and output the and the believe offtake our goal LOI, users be we capital on of Our to of plant million in is project generate to plant available other sell the securing half from attractive require industrial beginning half debt to this signed financing. datacenter annum amount substantial the have tenants our who users contracts, property. $XXX additionally power long-term project minimum per on power By will and negotiations believe Based $XXX power in non-recourse we a current million XXXX. capital be

Aviation remaining metrics is see conclude. inception positive had the be continues me strong to infrastructure EBITDA growing going Let with even to since more new significantly assets. growing for fact the we believe XXXX. every and in a we time importantly FTAI, first profitability as in we XXXX and outperform our year contributor to And number currently in that of

get flow X-to-X stronger positive me cash to for of of this be turn generation over call coverage. to infrastructure and every closer that, back quarter year quarter have the cash we the every had With result XXXX dividend a a objective turning FTAI As to year, going and our Alan. is we let

Alan Andreini

may you, to Operator, you Q&A. call Thank the now Joe. open

Operator

question And Justin of from [Operator Instructions] the from our first Stephens. Long comes line

You may begin.

Justin Long

in impact generate. I what bit be this was to you can Thanks. you the towards how and on numbers Good capital start of put expect there a plant finance on what wondering more can if power the Ridge morning EBITDA FTAI the that gave the on the question you that Long investment under give could quarter. on and the with Energy, EBITDA Maybe to actual clarify structure some you kind Joe, congrats anticipate? and facility little you would clarity to

Joe Adams

think are we it steps. looking I as of three sort at Well,

large months. now The right first which engaged then we have power, with few is step And to of the expect hopefully started we are offtake that conclude in that the purchasers also we in discussions next on those project off-take that to level of doing be is there high a of financing because degree finance against fixed debt, a at and we which purchase non-recourse agreements. leverage available price would

other market that’s think investors doable, believe differentiator of So, the with from from be deals allows that amount had the low with we that’s are FTAI that, already in to forward feedback to equity project. banks they investment a significant have project and which able I do and from unusually to us go that that

goal. our that’s So,

$XXX on to turning we more I for think multiples bring to should we would the contemplating sometime that, if look we up completing power on of be probably in worth an equity partner once between we million be construction XX%. part an outside of in plant that EBITDA, than – bringing complete EBITDA, And in beginning would and lock based substantially our basis. cost –

would so think equity own and take And some power we half the plants. that still enable to out us

timing to the got get that’s little less first step last the certain, goal. steps a So, the The because we done. is two of

Justin Long

million XXXX on the maybe shifting could Okay, Jefferson of $XXX potential that’s million, you And FAD that million front. mentioned of $XX place helpful. take in to investment questions couple that to the and a $XX

point the this start that of much And that committed? of FAD timing EBITDA then rolling about is contractually you that also at or incremental your visibility expect what’s curious on? to to how when First, FAD,

Joe Adams

primarily are users in to we be So, storage the would the talking out potential it form now market of in agreement. and

So got and term on out people have proposals actively we that. and sheets engaged

So, very reasonably market in the strong. good. The I is Gulf feel

of optionality it wants have storage As you as you lease the being and everyone today water. the build, can soon on

we in. X pipeline the I ever event and the pipeline been. million think better and I we mentioned so site us it’s with of rail married the together very connectivity, have visibility think number attractive the counterparties storage, and So, the a the And than of gives barrels think water capability, have I is I with a engaged will so rail

to good So XXXX. start wrap that’s we of kick until probably If that project, we and do in up. will not hope that it end the

So, effect the you in seen have of XXXX. of most that

Justin Long

year and mentioned? other amount that just And September by and to you the additional that is from that of the contracts any of this crude some on just contract or incremental opportunities in that based the run-rate, include clarify in, kicks rail these EBITDA Jefferson Okay. next on year. gave in coming one end you that’s Does at

Joe Adams

It because working we forward. still today, we we it on have speaks going rail, what assumption used is – today on what what is still but we the have are acquiring mostly have additional is

Justin Long

will I it time. great. Thanks leave Okay, at for that. the

Joe Adams

Thanks.

Operator

And our from next question Wetherbee Citi. comes from the line of Chris

You may begin.

Chris Wetherbee

of to magnitude are of of in opportunity fleet XX% JV hey, from of of they about of basis, Yes, join you the can guys. this this create of a out, future? terms maybe Joe, in or this in can as maybe how potential morning, bit over might mean, the business. the we talked to opportunity, for look in processes thanks. of you you are, Good add sort get past the engine through give little of just process service sense back like, you you terms the about market the an to on rollout perspective. to wanted timings need a kind carriers have want that potentially where some the rolling us color value that as getting more talked course some a I of the come partner service How annual you see the I the

Joe Adams

it doing are We actually right now. some of

that have number of to in which impact swaps XXXX, very worked year don’t parts long That’s pole So, we to is have see doesn’t in done four probably out we – we a XXXX, I one that it. do until have you is tent. well. The module and are an this the probably done the starting mentioned on the but JV the – –

see of what we in will a see acquired save those parts of will engine the we end – return or But us with engines, the sometimes use our participants from are just cost you our won’t sell this of quarter can we on happens lowering will in OEM own that the and a up also necessarily a our at until was and our acquired a parts higher shop you and because of and an parts in inventory. basis is see then a so one happening revenue we we inventory you And market today those significant per visit, equity. number had discounted. that There amount money that sometimes just actually them in own

So of to our deals with thick negotiate better have mentioned figure year. that I some and means power answer what the MROs, right, with deal this then was out that expect with the are that that that will trying would that, so what how we using of concrete buying part to fourth we in I now on and

and something partnership are to go four was the bigger then you I parts, factor modules expect happening and swaps this if swaps which on So back is and model And XXXX, the have JV, now fourth that on a cost the first year. which on. two parts was and and lower hope in I one it to the be XXXX three was the MRO

Chris Wetherbee

together and you when as potential could about you parts think think get think put you a you on And might what the Okay. do four any what sort from much I the market think you as perspective? is opportunity XXXX share beyond, of share opportunities, thoughts to

Joe Adams

Sure.

we to million visit, between and capture if That a of engine can and crazy assumption. million the operator X,XXX can of which I save X% think that’s shop of owner is or half visits to don’t the $XX capture an that, you can us. market an think million $X.X we or goal I if think XX% market, an So if per we $XXX if about shop and about million $X ultimate is for

Chris Wetherbee

Okay.

Joe Adams

fee we sort that’s of the And not that achieve or to a ultimate a asset tied can service hopefully the – it’s Grail. some as fee, so hopefully ownership, of Holy

Chris Wetherbee

Yes.

fiscal what back with of development then a you am of and whether perspective perspective, them of lot as not point? see of maybe be sort ‘XX can a multiple where give of maybe up would year run that from up that about end you an rattling step EBITDA and I it think the of sort at a adjusted interesting of us them sort Okay, tally are rate a how portfolio, investments line sense helpful. through FAD And parts to is the of of sort that’s you ran or take through in you from quick slight keep obvious you growth sort maybe enough and to

Joe Adams

happy it be Probably not do and you in but shouldn’t that. slowly, this more go we call, probably to I would help through

Chris Wetherbee

you, that. will to Thank that offline. Okay, following I guys. try fair appreciate enough, I up

Operator

our question Rob from of next line And from Salmon Research. comes the Wolfe

You may begin.

Rob Salmon

guys. morning good Hey,

Joe Adams

Good morning.

Rob Salmon

I engines, kind to overall from I these of guess would am to the engines following kind this there about your in business? guys to the of fixed just network if thinking the of be opportunity up you that service, are with from incremental leasing costs needing the regard market servicing aviation any add the

Joe Adams

Not team much, have and of people a this. very we scalable already we got increased have

lot a this or We have of or a people, up no have already a just XXX any engines. there any we we people manufacturing systems building office people are added got there is have needed. engines something It’s think few we plant a anything point isn’t or place. few in productive highly or since how they I at and to but many like we And – thing are

Rob Salmon

is then can And some for you there it. perspective? Got general engine from synergy leverage as the that kind this in of to probably also I well, imagine so would be overlap and business the you get leasing

Joe Adams

engine value look aircrafts of that XXX XX% mentioned Absolutely, and engines those is I I value the at but is I this – we have engine. it portfolio XXX, the mostly of our have I XX airplanes have have we XX really and odd are mean think airplanes, portfolio – when

tend to portfolio in go to up we value best has down overall, what value. the value XX% opposed always because engines and really is been as engine that’s airframes our go So about part in of just feel market, the

Rob Salmon

makes That sense. ton of a

timing quarters, because utilization at creep few rate seeing this of it’s engine kind actually I anomaly have portfolio last been coming can XXs. just we higher only optimize out the charge low was an you of customers? mid want off thought now XXs been I of Historically, and since or the kind of being the kind in of what some lease to the having have extended? you tracking max engines your the highest it Is you that Over around

Joe Adams

– Again, I still our at the XX% I keep XX%. assumptions wouldn’t would same to

I a market think of it’s a and good management. good combination

on wood, there knock numerous strong Pratt & demand you get is now, market it’s are XXXX So, for a as that. a very got in have you they Whitney number soon engine of that like high engines wanted XXX, people, things as

is very don’t but that a which of operate at continues, it’s we such fine the up passenger and we on utilization. traffic. and macros still Traffic market mentioned high hopefully because strong this both So, are I freight is demand if globally

Rob Salmon

exposure perspective don’t think business well a Got is your engine high final there aftermarket there FAA? is you ruling I that it. airline? Can from hop by is of is if to And as issue. I will what one in guess kind obviously the that as mean queue some profile there if of your sort the the an back with I any much and could for talk there

Joe Adams

was don’t what focused the moves the of of in the but section have on and FAA is are of most section most highest more the the happened an section. the cost in is fan of And – we call in front with exposure we the center has out most the – repairs which the air hot what airline, Sure. already it’s they broke that engine but in the more no, off AGA, any the engine, to fan blade come that what that

typically and category mandate blade I So, what think is have think XXX is inspections these landing. they engines flying said they engine the mandated that one did high cycles, more like has not some always and been in believe a takeoff item. do that But and one is has I over they they do want has will and them they I odd what come repairs. XX,XXX inspections what and for which inspected And they inspection more in and out But that defects. today found every fan more maintenance XXX is no of and they there FAA

better. that’s So, more do and good engines you how they engines – offering for if generally typically that, deal is with are which own you

is there more demand for spares. So

correlation So, trend don’t on event, line but the in general think been a it’s I this direct anyway. that’s

Rob Salmon

Got the it. Appreciate guys. color,

Joe Adams

Yes.

Operator

you. comes of Thank And from Rosa from America/Merrill our question of Ariel line Bank next Lynch. the

You may begin.

Ariel Rosa

morning good guys. Hey,

start raising So, looks need I capital balance, XXXX wanted could to you like Joe, at the address if the maybe what looking cash that? to how additional for look just would do in and you

Joe Adams

Yes.

think the Long the And And as additions second million will mentioned we so will time really through we driven that the of the we and quarter, last added months. be the Aviation the will debt Aviation – pretty As for going about of in next almost all the financing a think and financing be new amount. continues, now to a I shortly financing I finance all we and balance that debt to Ridge close significant need $XXX right power to I over year I had we of good look with as which debt investments $XXX similar market opportunities. few the debt then and or by plant of I other million with that primarily direct this mentioned of go to we mentioned into finance expect is both about have next do, access to will long-term and short-term are was will we pretty and able last if it year. for capital we the The run-rate only be

are pretty we So, in today. feel good we like shape

Ariel Rosa

then us a maybe do to of on little saw kind throughout quarter And through a see the the at bit operating Jefferson, you expense up or year? that you give that great. obviously guide step expect in can a you of year the continue Okay, as it where trends

Joe Adams

terminal. was in operators QX higher normal. We changed Well, the than

down step related that. of it So, after we costs one-time million had to $X.X should that, so

Ariel Rosa

million? Okay. to down And the is $X.X amount that about step expect you

Joe Adams

Yes.

Ariel Rosa

Okay, that’s to that maybe risk the product me, opportunity about you opportunity, think that or is you helpful. outcome for continues the is there? one see the – a that talk the could do refine to robust with be then election to could regard type you outcome Mexican just of if just posing still a do last And kind of binary that

Joe Adams

it and [indiscernible] why robust change while one today it’s think products, XX not so day think out the reason least biggest the of at for roughly Mexico imports, a has said barrels is a going world. years in quite refined to And of and XXX,XXX enormous, I to Well, come is it’s importers years. that X still the I he

can’t so Mexico City. to have off that shut And around they gasoline just have driving for people and

So going been to And of be if to of refined But will rate successful next probably yet refiners to a refinery going is refined lot take that but is the amount growth to there years happen, and capacity is whatever XX you publicly he likely build goal assume that be that is capacity. X they for It happen, in before to few invest will and years their have that’s happened years. over it so build capability. let’s comes online. has impediments saying would product probably years his look he whatever he not their said have is to equal build structural back to that history really XX hasn’t over what Mexican they up own and for

that short So – don’t net and know going they think don’t down I have that I substantially. really sees the

Ariel Rosa

for Okay, a sense. that lot makes time. the of Thanks

Operator

JMP line And Securities. of our from Devin the question next comes from Ryan

begin. may You

Devin Ryan

Great. quarter. the Good congrats morning on Joe and strong

kind and provided about Long the as we endpoint think think next am project will up, here, of you pinning guess kind so get Jefferson back and to kind starting come end step Ridge year of are achievement, sounds year, should spending as great the Jefferson then where a of a positive but positive as become should about is or and maybe earlier thinking forward, is we picking way, a kind about areas step think as incremental I am this you will especially Repauno area around all year about next some are the today, we the in you appreciate think even I the infrastructure see commentary progresses to down to development? number contributor are that and to here, offsetting I trajectory into maybe contribute I the more we and of all as about other of their be of activity think be that take going think from and of additional and I contribution a we growth kind the of this exact EBITDA that we that along just disclosure heavier at without heard I to how question of to the trying the will trying First maybe kind spending

Joe Adams

natural I we gas found No, mentioned the that we I water. commercial moving I the very for of Repauno, from natural think for the it very, gas EBITDA liquids get demand and product we And opportunity Repauno upside if to Ridge as that represents from and it be strong think can have Long to Long the will liquids biggest Ridge And positive. ‘XX ‘XX.

And – direct where move we you think short-term if out load hard mentioned to as business have move I so from is and and right long-term a could now we very figure build to that’s big easy we ship. we there working rail caverns build are a to

for which biggest activity based the I it’s meaningful, yet. market, XXXX are probably the going so don’t a to the hearing from on have from it’s that significant. And But upside be could ‘XX exact and we I what be is contribution think EBITDA on numbers

are So everywhere trying incremental we of add lot we to and we we a everything is have got are irons EBITDA think doing can fire. And incremental. I the that’s in

So I don’t see away. anything like going that’s

Devin Ryan

Got especially of on? potentially offshore business here becoming a to then or aviation the it, relative just going is more sales the by are follow-up the overall asset there are markets position portfolio like smaller higher driver on of am everything to just of helpful. process nature the I positive appreciate of putting but you in there. some that’s else smaller now curious And liquidity just return infrastructure kind perspective to opportunities the create this very where evaluating I a the in the guys businesses,

Joe Adams

prices enhancing and I driller in somewhat return asset. going our but I I is well company upside moving E&P on well. go is big offshore much it’s minds drilling people still intervention great an about better right market more a the as a that are highest existing significant still that the up, an It’s still in and this And the from the how to from Yes. again, oil what about It’s asset. oversupplied mentioned a – The it’s production that into obviously saying construction the think do oversupplied. when and that. be gets, market start for to getting the transcript would Pride along think development The is realizing

and dramatically activity price the asset will So, I very quickly get very that for once well-positioned in go we in capability think that the market. that, do you pickup that see up to earnings is into will

thing So, trigger that that that’s would think one possibility. I

Devin Ryan

color. the Got Appreciate it.

Joe Adams

Thanks.

Operator

from And our next Raymond of question comes James. line from Robert Dodd the

You may begin.

Robert Dodd

Question obviously on Any prospect is about capacity there Jefferson, limits? quarters the capacity for or guys. the on train told of kind of more you out overall color last to of constraints additional crude Canada because from getting because that on airlines. up of maybe still couple the us just blocked Hi, limits availability picking of

Joe Adams

yes, lined with we the CN. QX our X I in we still move trains, and trains are have know in starting have we don’t – We move, September, but up it. on starting the that’s a trains have month working then

getting couple have a customers in on are that CP still think are of got and that. capacity working from we we impressed We

it It’s clearly to stranded. be the getting out, to QX think will figure and So, I of it free it was pressuring in I better. railroads sort is that it’s the because and worst and think start everybody is crude up probably, will Canadian Canadian, government

Canadian So, money. government the it’s a lot of costing

it’s ever fast. better, getting happens but land nothing railroad in I’d So, say

Robert Dodd

issue to obviously, partner that point, to path, routes? capacity of kind constraints and mean, also to I And obviously Right. could get different that long you along are any a are you rail potential but an those there become talking very wished about the

Joe Adams

we have that’s most X, Actually, excess what people comes capacity. when East actually expect East and Mariner think it the Mariner will online, probably will, railroads because

to be the pipeline. of are to so that Ad eager will Some replace the volumes they very diverted volume.

right very So, market rail actually to we we think cost, there that, top that Jersey by quarter And the from see it got Eastern New costs New Ohio Jersey pipeline the of from good of there. could moving no that volumes capacity transportation actually, on is differential. is has to

Robert Dodd

Okay, I Thank you. it. appreciate

Joe Adams

Thanks.

Operator

[Operator Instructions] Our of next Salmon question Research. line Wolf comes from from Rob the

You may begin.

Rob Salmon

Hey, follow-up. Joe. Thanks for the

at if potential guys to EBITDA model the year. grown You guys positive be this have got I close curious the of infrastructure of obviously timing in I the increased changes you it’s that your a you of philosophy given terms coverage in if dividend the increase moving going the where have half second that turning ratio am X-to-X even to very, later guys year my in very dividend. all

have context and dividend your get the of investments on cash as the timings So improving flows? perspective I’d as to increases in potential curious you be the well

Joe Adams

Yes.

changed policy. not have We our

will dividend dividend. FAD we that, We are we when X-to-X and still hit to the coverage raise the targeting

Rob Solomon

a a helpful gears This cost be of unit? of about well Alright. is switching very here we pride, conversion that the intervention there. terms any there thinking dedicated little in And bit I guess should with is to

Joe Adams

like and an payback. from our about a million Yes, X $X investment it it’s capital year math looks

Rob Solomon

long what’s And timing the how does of long how it terms take? conversion the in and

Joe Adams

out So are of weeks, have to equipment. but equipment, so X it’s of right now the for ordering we to X service process only order in the you

be the would of in end it done QX. probably So,

Rob Solomon

you on with missed timing Perfect. those in pipeline, And I may your the final have it, it remarks? what’s one mentioned the is Aviation prepared but think the deliveries, I

Joe Adams

have will we million $XXX year-to-date. – closed we have So,

We in bring for million expect that will million year. the half QX the close of to first $XXX more $XX so

LOIs will over QX additional an have close We $XX and that million in QX.

Rob Solomon

Perfect. Very helpful.

Joe Adams

Yes.

Operator

am would this to further call the I time. showing like back And for at closing to Mr. remarks. now Alan I questions Andreini no turn

Alan Andreini

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

Operator

Ladies in conference. participating This and conclude gentlemen, for program. thank the you today’s does

have great Everyone day. disconnect. all a may You