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Fortress Transportation and Infrastructure Investors (FTAI)

Participants
Alan Andreini Investor Relations
Joe Adams Chief Executive Officer
Justin Long Stephens
Devin Ryan JMP Securities
Rob Salmon Wolfe Research
Ari Rosa Bank of America Merrill Lynch
Brandon Oglenski Barclays
Robert Dodd Raymond James
Call transcript
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Operator

Good day, ladies and gentlemen, and welcome to the Quarter Four 2018 Fortress Transportation and Infrastructure Investors LLC Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this call will be recorded. I would now like to introduce your host for today's conference, Alan Andreini. Please go ahead, sir.

Alan Andreini

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

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

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

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

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

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

Joe Adams

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

dividend times QX. to was times in X.X continues QX, Dividend improved improve. X.X coverage Our and in coverage to

of XXXX Adjusted $XX.X of of compared for $XX.X was some of discuss QX XXXX a QX $XX.X record QX million. XXXX of year. QX let's EBITDA XXXX So was a to of and and record quarter total numbers. million in XXXX was million now the

proceeds QX of projected, $XX.X versus and adjusted $XX.X was XXXX FAD of in we QX in $XX.X XXXX. QX million was $XX.X $XX.X sale of QX million $XX.X time positive million ever, generated of in XXXX. Normalized million EBITDA million in the infrastructure QX million in million for QX first in without in As $X.X QX. and FAD versus

related of During than million the expenses our primarily overall at full corporate from million the from by $XX.X business interest The Jefferson portfolio, the and from CMQR was significantly leasing equipment incremental and three from our activities. primarily year higher comprised a million fourth improved on Ports quarter, higher QX, million September $X.X in Railroad, million results from negative quarter the our was FAD $XXX revolving improved $XX.X to G&A million and due infrastructure number a on infrastructure $XX.X quarter infrastructure expense the prior due segments; $X.X impact million, negative notes number to all interest and expense overall in XXXX, of Terminals. of facility end FAD Corporate $XXX senior issued credit borrowings the to corporate.

in were of XXXX for FAD XXXX Adjusted improvement at look XX.X%. million more XXXX was million million versus EBITDA versus in XXX.X%. an Those million all was improvement now $XXX.X in versus for even numbers Normalized XXXX. all Let's XXXX XXXX, $XX.X impressive. $XXX.X in $XXX.X of of an of

into going is of several that not kind me forward predict next are the years period I'm growth is to we growth. clear these of a a While to numbers significant going year, going XXX% over every what now

me Aviation. Let now to turn

to business stable perform Our flows. cash and Aviation increasing generate continues and

coupled due Aviation timing differentiated the more and and quarter, every was to investments. was Our million, it last with profitability becomes our in remains fourth quarter. offering versus $XX.X million, EBITDA slightly quarter of of adjusted strong the $XX.X seasonality new down

had per investments in December now outstanding our be at a miles quarters, Aviation tight, high, new by of costs. down to with of start current on income and in EBITDA, have a off each Aviation in number remains $XXX the scrapping engine years extremely of strong. flown XX, in ones configuration acquired low, increased certain $XXX of are transaction, amortization, The quarter X% projected in $XXX of rate million, is more engines $X over macros closed of approximately most business due net million in of for with XXXX. the now the primarily the lasted rate, both to closing and million on $X.X investments is of $X.X XXXX aircraft keeping. stronger. for investments in of lease from non-cash depreciation than But million resulted Aviation engines and million. the rather XXXX. utilization QX even expenses approximately growth and is annualized sale, is to outlook million annum, higher basis, up due last to a aircraft lower in million XXX and that because X% for in was rising good excluding XXX depreciation the we gain both FAD business actual up We Passenger annual maintenance very approximately of the and has track QX, good overhaul and $X QX liabilities, We continue sale those engine the The $XXX Our after was Aviation that closed our for run from power quarter engines. out to run increase and them. two that lease December. in LOIs approximately the the loss in scrap We events. million due engines passenger to $X fluctuate closing timing which added last several is freighter and quarter. next and XXXX, maintenance on $XXX accruals larger to supply which portfolio we're LOIs transaction Availability expect $XXX overhaul due to XXXX, as out for late million of the over decision for certain than incentives the loss engines million sale an and fleet, to while new our these annual we million in On while over a is to in XX a

$X available are per engines year flying efficient first achieving shop engines which to swaps, And approximately duration joint Approximately its be first while the starting sourcing using is XX% four in module commercially year shop next in better. versus today and For demand. of fleet for we and and three years months visit years. for have which XB months supplies, the the not CFMXX-XB the even great next the shop engines which that's lock our outlook next coming managing yet a the should currently venture market surge of cost couldn't strategies XXXNG three is And a average visit of preferred relationships, the had today engine engine AXXXceo further parts over advanced double introduce capacity spare over aircraft, are first permanently number stressing the to five up a ago, projected shop savings parts in their repair to MRO to million our XX shop products, for the six in that in for eight will commercial is advantage visit. maintenance means visit and

supply. some spending, short-term. constrained offshore seen market repair of inspection, last and significant tighten XX% We've still since The turn flat industry space. the and let's after over the in years, a remains E&P rate are offshore But marine position three beginning maintenance work, offshore. to but over years in Now on several recent of XXXX, down is charters the improvement to

previously economics have mentioned, vessel. of front Until in equipment has and complete engineering day, use the process rates design work well our converting into end largest of QX the The day approximately charters. $XXX,XXX of of term will well we asset intervention are intervention and the complete we are is the IMR As Pride, that Pride in compelling. XXXX, short we per ordered. a quite With work work been on needed the is

X,XXX good versus of increase million QX, The XXXX QX were XXXX. and revenue Railroad Now in let's infrastructure. XX.X% increase XX.X% another a QX, turn to and had carloads $X.X versus to up Maine up a Central quarter, was QX to in Quebec net of

we received our several new commenced for regulatory weeks all car certifications operations ago. cleaning the business, which Importantly, finally

operation significant expect the rising growth Mexico; add particularly expected we We such always current have we drivers products by in of approximately were volume The said big rail, not to crude EBITDA refined volume expect Jefferson projected of as would. rail ramping, now; one, $X and that, approximately CMQR million two, one Canada; QX Jefferson's of car for versus first three by charges. the moving the improvement booking turning is QX revenues. moving $X it of barrels cleaning are; and from the $XX in of the Jefferson million compensation our to QX with of over current day deepening EBITDA time, some that XX,XXX saw had crude CMQR, would largest in America. to million and in of and for in drivers over three, refineries the one-time North generate expanding future infrastructure QX. growth and Jefferson substantial relationships positive $XX in year. a and We corporate EBITDA to have Having QX million positive in was Jefferson annually the this EBITDA at

through will the in reduced. government, be recent volumes QX market But - quite temporary intervention QX, are Alberta looking the With the strong. by and slightly QX

constraints storage construction this for Additionally, volume years, all be early production barrels online barrels with expansion to was which Mexico term increase will critically rail of a to X coming and million in and and April the of commitments year several we end volumes handle December. local year the and refined Important to of and capacity least us by total Western over Canada, Mexico for also a QX to shippers supply year expect major for year. Alberta at X.X connect refineries, and pipeline these seeing prospects, the growth day XX,XXX as And to approximately barrels to commenced XXXX. over in to even our evidence barrels the are X in takeaway products our expect strong part XXX,XXX projects finally crude million barrels volumes, higher see government, this. tangible end completed we in in have operational QX, due Gulf we long-term to next by from loading XX,XXX XXXX, at of QX and chain the to million crude this Jefferson three for and to interest barrels as day in the five a approximately double capacity ability producers, refiners, rail

So it's all together. coming

with non-recourse of and Kiewit and just with sale coincident Ridge, the We Long at signing the Ridge. Long agreements to agreements Power Turning EPC the and announced power financing Electric. of General closing Island the the

own and EBITDA plant. financing the of the already out in Long we $XXX that million equity have operation mentioned the million up terminal loading the $XX running, Now just EBITDA. for to annual $XXX which targeting signed, to million million sand, a we of Ridge our gas should capital to generate of $X have we proceeds interest in XXX% been while begun the XX% generate of have operations process natural will million all of is $X the $XX agreements Frac which and between all successful, If marketing us. of to of plant power are and will the liquids continuing XX% to million and

annual no of Getting the FID week in three million the was with step we're deal. on remaining $XX FTAI the power to putting million together, So big a to EBITDA $XX equity last process. plant projecting in this to

are European butane long-term on in $X from On revenue Repauno. liquids focused in and Repauno, through we offtakers terminal. to we QX now sales of gas natural securing Turning booked million the

[ph]. million operation seven-year XXXX. in We annual to in contracts X generate million finance And strong in $XXX are of that European are rail XXXX $XX capital should million of these allow EBITDA in EBITDA starting five to barrels for million demand loading we from million should will million improvements in and $XXX us offtakes seeing capital that generate underground storage targeting to starting $XX for debt to $XX that ship

So in our best year conclusion, we quarter ever just and best ever. completed our

our and every ROE differentiated Our yield. Aviation important continues Aviation is achieving grow, and that And unique business offering becoming to of XX% is maybe I make the about more impressive EBITDA while observation quarter. profitability can XX% most metrics

Infrastructure, the money. We is is lot leader aftermarket the and becoming engine which industry together ground has repairs. a worth the it's episodic development war which are platform, during period, long-term of building and in definition by is leasing come a and

our neighbors to macros and in position have with had at trade want with back convinced at if and Never XX and hydrocarbons North America XX our to the to we've those closer are liquid flows. access these value to we to strongest respect assets. properties. the working XX four been me strategic of in assets never the which can more better ever and multiple, and increasing we infrastructure of strategically had five counterparties In that let They turn relationship who are to developing short, we are been times. advantage the of the We With to we a of Alan. XX will take choose I flows call a those ports to in times, sell driving terminals at located cooperation three which

Alan Andreini

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

Operator

Justin with question comes first Stephens. our Instructions] [Operator from And Long

line now Your open. is

Justin Long

morning. good and Thanks

to goes that think start you with that And the that of to Joe, should announcement consider? you an aviation selling it's there wanted to have investment your million on we of that on received? question $XXX from stake. Should capital plant we this acquisitions all into a expect the mentioned million tune assume Can we of equity are that you or power $XXX for XX% I now opportunities once So deploying other front. talk something plans I about

Joe Adams

aviation assume investments. would I

I likely. think the that's most

Justin Long

segments thought getting the you the Where know along as thoughts are to lines capital I the this energy of of the offshore businesses. contemplated alternatives past. you've do on did at strategic CMQR And that process? door, in I stand point in those get kind Okay. updated your in want and that both

Joe Adams

Sure.

So I still think alternatives. we are evaluating

we the on think CMQR this something are I likely do to year.

we period we'll think forward evaluate. EBITDA, the likely, go this this number is year a mentioned, offshore This are number place interested, think year. million that also toward we'll with I something in I we our is make about that in think being think but I But once shortly, a will likely also have and solidly Pride I of which of would that on good the become of would think very the the think see But next get I parties - As that year generating say, likely. decision I more contracts, year, segment that we we end I $XX that. conversion, and I of that early

Justin Long

a JV Okay, the JV color lastly contribution then more maybe the the you year give that's that on get could helpful. away, XXXX with EBITDA on beyond? some And you repair engine from into horizon, about expect as we and

Joe Adams

Sure.

ways One that visit, So will a basis make of lower two have a engines off we managing will there in money and having cost a lower is by we is that. own shop assets. our

ultimately either So from the upside higher sell. or a we will that return assets more from we could have

million lot what achieving advanced we're shop Adding of a today, per today have million to $X on that savings we increase we'll think in mentioned, it module I product significant we'll the really I and which so engine is supplies. proprietary have parts $X that close a As basis. about million from will visit year, swaps available, do next it's repair a to $X

visits manage own And our so XX pretty there. we'll that year, XX of contribution probably engines a so to significant shop

on The started other is really to to airlines services have something explore offer to it's way basis. conversations fee that we've a that and to

of benefits million our we've XX% share EBITDA to estimated airlines, product could that we a if the of market generate And with potentially could share. $XX with so million we portfolio $XXX

longer month. reality that's of every But So closer bit little it's becoming objective. a a to

Justin Long

Appreciate helpful. time. great the Okay, that's really

Operator

Securities. question Thank JMP comes Devin Ryan you. next from And our with

line now open. Your is

Devin Ryan

morning Good Great. Joe.

Joe Adams

morning. Good

Devin Ryan

Okay.

deduce you to assets I just maybe starting couple potential then terms know on lease asset that similar of would the for leased believe and extending are which some questions sales I to capital, and further. here, sell Aviation. with looking guys So, a recycle and returns seem

about compelling should you. a there would what sizing so seem Are returns make maybe to be so would of the structures? some and on into lot to love for perspective of relative that get opportunity, we like. pretty just How of And sense think kind would that ABS look these and the

Joe Adams

Sure.

substantial five that aviation that leases. there's today flows to six-year contracted for So have cash and like being long-term demand assets

think We're created shop or effectively. managing And that number a cost and assets off I good we've the very lease at so assets need of visits buying those, maintenance.

a capital taken it doing assets, back value of again. put we've very them acquired of those then and so number over attractive all at And and we're prices the leases thinking on recycling that and good and long-term capturing

think could you over we higher And of that the for those appraise we book maybe at the taking create the every an end a appraised So We manufacture. magnitude of ROE by about this year $X.X of profits if year. it, about in value of can we billion fleet much out really $X.X had of some billion. our business

got about million we could those think a gain value own embedded market. higher we we've I So transact even $XXX in what appraised in today's or numbers at today. And

it we've there. to So irons and got fire sense makes that I in us some for the do think already

So I it's it. of more and think you'll it's we'll if see keep this doing something year successful, that

Devin Ryan

potential. Okay, then [indiscernible] some clearly terrific. pretty That's your so great stock, feel at where is like it strong and of doesn't equity your above would all public that And is somewhat reflecting if the at color. asset, marked it look stock momentum that that inflected asset And Jefferson, has levels. But value has it. behind I opinion just have kind interrelated really well and also the forward you seem momentum in it of

do strategic the that public premium will stake that you assuming that reflected selling to to with - just Obviously, But the the mark buyer to into given you a a you a strategic equity. would to, a of everything get could there, sense big stock about potentially that potential does about think make then take to think partner and big asset potential So trying have? pretty a would because going on for you the on it have think and public in I'm implications about there? it

Joe Adams

the Jefferson, very actually, from and all for attractive of it, - Yes, each thought developing they're maybe just have all we we view, three those. as but whole infrastructure about are point an terminals very all have plans not assets because we possibility of specific all they and a one -

the would higher around public much are I put of we values thinking very And market in set. so a infrastructure than can values private general, that So of assets it's numbers set concrete are opportunity market we today something say, about.

Devin Ryan

terrific. Okay, Joe. a lot, All there. good Thanks

Operator

you. And comes Thank next from question our Citi. Wetherbee Chris with

Your line is now open.

Unidentified Analyst

on Hi James to for Chris. dividend. the Wanted touch on guys,

do most forward, about Looking you could previously logical times the ask? think possible when could like happen a is talked two this quarter you You'd coverage. probably increase a this, with question

Just sense kind want of of to get that. a

Joe Adams

quarter We as this two of to the coverage probably think we've have of around And we will dividend coverage. said, second will reflect our maintain times year. the the times policy payouts then two increasing

Unidentified Analyst

also potential the you've would attach already what on it. contracted out you touch it plant. there? there and upside And there beyond moving built to wanted power out Is sort to forward, if what Got magnitude any were it, and of like

Joe Adams

Sure.

sell do power, fixed the contracts contracts. we've upside. but So substitute have terminate contracted higher in It's and that the be priced at we existing to power able to we to price, a option have the interesting for

realize $XX downside contracts the is, and that that's have we could and they costs, behind today. So megawatt we tenant meter, our for covered to versus we way megawatt site, we so a avoid if have roughly we is for bring power the the we transmission $XX a basically the charge upside. hour distribution hour our property a would on have which And

or megawatts So to were could megawatts that million there upside. EBITDA. XXX is million we If do able way, it of $XX additional be $XX meaningful XXX to

best it's of today centers, great the think world be the use structure, So a data today. in about highest parties would electricity the logical that's this and to for

So there's tremendous growing demand.

have buy FID, now tenants bringing we very electricity and committed look fixed is cost unique who have the electricity. And we offering would and going go So that it's we're also hard in to it's project that in price. low out the at

else So we are not really aware anyone of fixed offering price electricity.

an been on it's received. initial well basis, So

Unidentified Analyst

would would cycle sales if were there, when to for year what Given deal that, should be that the come it materialize, like about? a

Joe Adams

- wouldn't but I you likely would until have could contract most XXXX. revenues year, say you a probably have this

Unidentified Analyst

you. Thank it. got Okay,

Operator

Thank comes question Salmon Research. you. Rob from And Wolfe our next with

is now line open. Your

Rob Salmon

in to a Could lot the and Joe, kind months Jefferson. volumes question quick of I of throughout of down bit of be you're how think trend, you've of kind say trended with the would those during expecting sense of the be first three quarter helpful. you to you Obviously there was a regard I date what volumes to seen the terms heard the But really us in it regard a a little spreads to just the those with volatility more give volumes quarter? how slightly. quarter. context

Joe Adams

Sure.

WTI, right, spreads, you're few of came and versus out think saw into both a of it I the extremes barrel. months WCS a $XX last then So it $XX to in we barrel went

So we've too too high and was $XX was the $XX low. bookends, got

Canada. forward settle, to that spread If rail, have it's because QX. sweet at to QX, you committing to going are next the and where $XX to And be the think you reality make rail trending to out five look people all enough move government crude $XX to kind it's for it work. producers will out committing need is the to most in of of three Alberta the by is to years spot QX, $XX rail, markets, the The

So normalizing of QX what they're period that already. the in it of said back walking sort is which see ends, once already we Alberta government intervention this

out. started So spreads have to normalize

rail are by very QX, moving good. delay but producers volumes in looking QX for some seen we've So

us. people to very year, volumes think year I for so [ph] a impact going for for commitments, and five for a as don't mentioned think to the to about I that's outlook three The now significant I positive huge have term we're commitments So us. actually are importantly talking

Rob Salmon

capital optionality investment of then, an to with to that thinking regard those what the And which you cost work low of also guys are kind commitments, [ph] three as is having seeing capture kind to opportunity types are? the that by the about spreads are of investment or underpins the I crude, increase the pipelines, regardless putting this five ability more from guess of of to Definitely. year to you

Joe Adams

Yes, of so one three XXX,XXX on have deal barrels tanks with for have those we five April, storage the coming we in years user. on to a committed

So that's good.

once I is what think that, the to American horizon pipeline types for and some see with investments for we those consistent two that time year are are us connectivity, of refinery, that we're in to three them connect in the five of With you North what to to and wired respect largest we into expected example market. the near there's going market. that the right

cost, pipeline, couldn't $X barrel; river, it's by And instance you're one a wired refinery barge, move $X.XX. terminal in, products be our to better. if you into a refined it the hypothetically, by So it's once wanted for across the from

is advantage and So lot once you have lengthen the a more competitive to you you'll that relationships. a opportunities out have that hardwired with up come

happening. absolutely that see I So

could good Canada The its But that three second at that be removed for such crude crude XX five has to by rail also from or XX-year that looking years commitments. other crude as longer. we're clearly and to diluent the waxy thing is is maybe a products, market

going move we're with we much waxy in we in where Canadian in volumes other to good things the have fill rail in will are this best and to ultimately the So opportunity a in far take that the crude never that by because duration longer pipeline. the period be could think assets Gulf

those So of it's move always going things. rail, to types by

Rob Salmon

the time Appreciate sense. Makes guys.

Operator

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

open. is now Your line

Ari Rosa

certainly Good capacity congrats Jefferson. there Joe, looks I on for hear other in you exciting plan for seems story. guys, was But out region, the helpful is some for on extend we've target as beyond all of XXXX. to assets the it the Gulf the That to what momentum. what at build get from It's like infrastructure demand of seen kind your an storage certainly to laid morning like XXXX. out thoughts wanted the

out get your wanted might what just updated build Jefferson? Just an look So that great. term would on to longer target Thanks. thoughts like view a at be on

Joe Adams

Sure.

connectivity XX a bringing million barrels handle also should that I to pipeline I mean end be their to pretty another able good couple announced fair of amount development. about North that for I terminal So would mentioned assets. project fill And would the South the the Exxon two of out another If that then on, ties sight we're for could have we the they're as million which line be North into that, docks, have involve from new bring The really mentioned is of Beaumont and we a and terminal, XXXX, barrels connectivity, this at the so us a X that the looking six million working to good really pipeline in new by X year. next we'll up potential visibility terminal, chance barrels that. that which will beyond before. of and at we're on There's pretty Suezmax contract And we Permian. that has for pipeline

bring going be Beaumont million we're has to pipe TransCanada So a that pipe to that's a end terminal. in our as well expansion then X.X barrel bigger obviously And got hopeful a also. day plans up will at into

in America then and make that's volumes to XXX,XXX refinery over XXX,XXX largest will day day So gone North a expanding its a the and there's refinery it barrels barrels substantial FID. from Exxon

So the away. less miles which what is that's - second And Motiva, Exxon's than XX is refinery a is committed. largest mile the largest today refinery away.

as our refineries And two years. we closest to them. when time in America North could investments have the largest we'll be So, make the we'll XX is they and horizons, their be

have that need, good I we land, they have competitively that's So the feel we advantaged. to ability have that something offer pretty the connectivity we the

Ari Rosa

really That's great color.

that So process. as look not expected all talk you it what Maybe that as you're could sounds like out about you build like through you lacking storage. demand the for go returns at

Joe Adams

Yes.

million previously think storage barrels EBITDA. we've is $XX per a I annum million $XX typically of talked million to about

and the additional the with the really it you like the that's get or pipe. And uses if Then market we've So been is every is dock get. what is fee you consistent it base seeing. fees what use product the moves or storage time

So, you midstream base get business this the covered. of attractive is part your

You then ways also assets. different make of the to and have money on a the upside own lot you

barrel that can't about own when asset, differential have to the you [ph] on effectively. people dislocations $XX that if don't capitalize very you when you optionality like So had the love market a talk happen, that you

own do asset, you terminals quickly. I these of the XX times reason you a people value really very money to can make XX why the If that's think at EBITDA. And lot

not stable wonderful. So these they're are because it's things - thinking

your have on upside downside once a and every the you opportunities in covered while. got some exceptional You've

Ari Rosa

a of to Obviously, list in guess, at are infrastructure we've raise the considering be guys equity great. an And raise is are there this needs table? But table joint talked think the the that shifting then bit, talked to To bottom the the we've the some terms being gears in the right and ventures a of you safe table certainly here? is Okay, on something obviously lot extent, an that ways would of off the infrastructure that about with you completely Is do across I assets raise capital? capital about just now But the equity that a of in or it is say priority. portfolio. past. not what

Joe Adams

investment counterparties works of debt what now which I asset say capital so on that we've going to focus. we've planned. contracts long-term timing that I done something. you have different these expenditures. our additionally predict is the sales when to mentioned always I sell our then of and with really But to of have options mentioned. well And got is that's as right we number use would focus Ridge maximizing at The Long grade some when it's a harder actually that And Well, there's you're non-recourse finance Repauno

our those capital look markets, two at So are always We though. priorities.

asset off sales. the the is but non-recourse don't anything really so And debt take table, we focus on and

Ari Rosa

where me, a extended could place from around question extending if portfolio And then makes Got strategically a of I've thinking ago. it last has out in Aviation that the you the was noticed the sense. of you versus a you'd bit where right you're duration it. that see duration now be, the continues contracts that or Maybe year That talk portfolio just maybe to get those if built like as your at and to further about out? contracts

Joe Adams

engine portfolio. as us that is it's mentioned, increased now Well, assets good right for duration leverage. have demand of given so we Yes. And average the the the pretty strong I

time from I in months out we've and to practically and we an for think they went airlines done XX more leases us months begging it engine. green that call average XX have

Environment very good a market. up also rates it's push it's So too.

so that's So XX% raised like think rates on umbrella. a Whitney I Pratt leases pricing we just like & that, good

So we've got some leverage.

can they them there's feels said, and I haven't As that the at you I is is and if the then every. from taking and pretty Those XXX every where passenger presence. at the buying side, have no Amazon for you great. yet. all as demand I even XXX market market. XXX there tremendous of that replacement think up the engines and said, look assets, is shop the so look market And XX% big freight the we the XXX a been the outlook, find in AXXX And

that to next to like shop for cause parts. the bow there's wave not there's coming, not So shop to could three enough enough what that five not of see And it's years. stay capacity visits hard

appreciative. think it just also good. I feels but pretty we're It's And for So good going macro, like that's and structurally to a continue. that thankful it's obviously

of trade repair capacity, at talking be publications to and If and very likely maintenance about it's not and solved tight look the any it's people soon. you anytime

Ari Rosa

That's Thanks great color. for time. the

Operator

you. Oglenski with Barclays. Thank next comes our Brandon from And the line question of

Your now line open. is

Brandon Oglenski

year? double mean your going as I in $XX apologize if fourth quarter ground at here. this missed should check we have be going talked prepared quarter, minimum I the revenue where this the Jefferson But million guys of I we're throughput level like really of should remarks, to about you be the forward marking the now?

Joe Adams

very we And end rail the talk X.X But April, slowdown than the crude bit in at by XXX,XXX first softer QX. and in were customer, tanks looking that in a barrels on spreads year. QX. volumes some in had through has on be those intervention are have in QX didn't did caused [ph] crude strong it's of the we were specifically million then of going we attractive to about storage, the quarter I committed one very had the the little we they upward guidance to then quarter, fourth that. mention volumes Well, and

for the guidance. of give So timing is year, it good we feels all the very quarterly that don't exact

Brandon Oglenski

mean on I better you this a model contracted Sure. so volatile, just for in zero been pretty to maybe Jefferson I'm in mean, revenue trying how I have XXXX, question? much that's But has the here.

Joe Adams

we Well, our all the at storage is and volume storage fully look of pretty really contracted. much

look in you have available. XXX,XXX storage, incremental should as at X.X when I tanks April million comes and are increase as you So mentioned, storage then additions December. of online those And revenue in barrels

Brandon Oglenski

perspective, from Okay. quarter with did OpEx to expect this, this expenses because bit scale And we quite step-up a too? should then a an see how we

Joe Adams

arranged I book which gross the expenses. did Canada, the from and paid part, some then When we most crude We all we we in transportation moved mean, different chain the revenue up revenue tolling and booked full revenues don't a for for Well, logistics we you way. costs.

revenues up it's much EBITDA grossing we lower but expenses. both but you higher So are with up end a because margin, business, and

quite us. it's the are So is for But attractive. going that margin going of to to computation. economics change business of change The it your mix

Brandon Oglenski

just issuance. that other And offline. about we fully equity question the understand, back guess coming I Okay, to take can

XXXX your So cost like, in to detail your walk can through liabilities cash what be? uses you sources is more are and us what actual and going in

Joe Adams

question Well, LOIs, It's are a million starting which to Aviation, as we it's with discretionary. of going close. had don't mentioned, we liabilities, I have $XXX

addition with capital So debt, two Repauno based non-recourse fund next what is we're that Then, those in is looking said over financing at quarters. in I what we'll that the on contracts.

Jefferson really the year the So At storage it's primarily we of funded the level Repauno fully that and to in level being of announced then, that capital at also plant mentioned. we with tanks power Long Jefferson deal, would funded, that is so it's in this a fund most I sort Ridge, And debt we're just borrow now. that's CapEx. the at box investing just

Brandon Oglenski

guess I not So, then? a significant call equity on an

Joe Adams

No, it's very manageable.

Brandon Oglenski

Thank appreciate taking you. questions. I my Okay.

Operator

you. Dodd Thank question our from last with Raymond James. And Robert comes

Your line is open. now

Robert Dodd

it the you we at to year. because CMQR capital non-recourse, mean capital like may Long right mean, the individual units offshore. end you when may of versus But Aviation this FAD I and actually question business the itself. parent generate maybe parent, recycle the look And the - or with from plus potentially funding then the it in with need shipping even Aviation run the is, the each business with I then have the additional infrastructure of excess next in XXX stake questions. at assets, that's much the maybe at rate, My year not if coming the up potential but most can what sale covered sale looks Ridge, unit from you

go back business. is you So coming the could Aviation for that did the mention question Long I Ridge to guess well

business other capital. it's But to accelerate to arbitrage So Obviously, you development four at process the is in infrastructure? there put plan times of longer-term times XX looking growth that's or sale, you're can are the pretty opportunities obviously the a Aviation place well. to if a as good

you thoughts through there? can talk us the So

Joe Adams

Sure.

sometimes possible it's we are Aviation bad investigating to attractive. by them that if make portfolio we returns the the is, be the good. situation. we budget a more that capital investments, come don't of end there, two terms deals But at year, But is things only there excess so wouldn't are in that that the one are we up and going look are are have always capital expenditures of So

Aviation always find possible and market that bigger in opportunity you it's So a the could huge. is

CFMXX-XB the mentioned XX,XXX efficient assets I the best we in engines. owner XB and probably those of most As And are world.

So that's huge.

investments more look at make would we our valuable. Secondly, that terminals

we that Repauno, Jefferson find help in that. accretive, investment always we're So if of is or an that development accelerate can would interested

for So that's of threshold things. of sort at looking our filter or principal sort

Robert Dodd

you. Thank it. appreciate I Okay.

Operator

that and back call And question answer you. today's to does I any to Mr. Thank for remarks. now turn session. further the Andreini would conclude Alan like

Alan Andreini

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

Operator

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

may disconnect. You day. all great Everyone have a