Q2 2021 PBF Logistics LP Earnings Call

Yeah.

Good day everyone.

Welcome to the PBF Logistics LP second quarter, 'twenty, 'twenty, 1 and earnings conference call and webcast. At this time all participants have been placed in a listen only mode and the floor will be opened for your questions. Following management's prepared remarks, if anyone should require operator assistance during the conference.

And Walt Press Star Zero on your telephone keypad.

Please note this conference is being recorded and it.

Now my pleasure to turn the floor over to Colin Murray of Investor Relations. Sir you may begin.

Thank you Paul.

Good morning, and welcome to today's call with me today are Matt Lucey Executive Vice President Erik Young our C.

CFO and several other members of the Partnership's senior management team, if you'd like a copy of our earnings release. It is available on our website before we begin I'd.

Like to direct your attention to the forward looking statements disclaimer contained in today's press release and summary, it outlines that statements and the press release and on this conference call.

Please state the partnership's or management's expectations or predictions of the future are forward looking statements intended to be covered by the safe Harbor provisions under federal Securities laws. There are many factors that could cause actual results to differ from our expectations, including those we've described in our filings with the SEC.

As noted in our press.

This will be using certain non-GAAP measures, while describing the partnership's operating performance and financial results for reconciliations of non-GAAP measures for the appropriate GAAP figure. Please refer to the supplemental tables provided in today's press release.

Now I'll turn the call over to Matt.

Thank you Colin and good morning, everyone P b.

Yes, really just 6 operated well during the second quarter of 2021.

The partnership's consistent results through 2020, and now through the second quarter of 'twenty 1.

Continue to reflect the underlying strength of our business and relationship.

With our sponsor.

We continue to expect.

For the partnership revenues for 'twenty, 1 to be and the $330 million to $350 million range.

With 2021, EBITDA and the $220 million range.

Our consistent revenues and cash generations continue to allow the partnership to maintain healthy distribution coverage.

And reduced bad debt.

Maintaining financial flexibility debt paydown.

And strengthening liquidity are the priorities.

Today, we've maintained our distribution of 30 cents per unit will continue to review our distribution policy going forward with respect to company performance marketing conditions and alternate.

Part of use of funds.

With that I'll turn it over there.

Thank you Matt Good morning, everyone. Thanks for joining us on today's call. We reported second quarter net income attributable to the limited partners of $37.1 million.

Adjusted partnership EBITDA was $60 million, which includes approximately $3 million.

Of non cash unit based compensation and.

And environmental remediation costs associated with the east coast terminals.

During the quarter, we spent approximately $2.3 million and total capex, including $1 million for maintenance.

For 2021, we currently expect capital expenditures to be approximate.

<unk> 15 million inclusive of roughly $2 million and multiple small strategic projects we.

We ended the quarter with approximately $368.4 million and liquidity after repaying $25 million and debt during the second quarter.

Our liquidity consists of a cash balance of $32.4 million.

And approximately $336 million of availability under our revolving credit facility.

Net debt to annualized adjusted EBITDA was 2.7 times.

We expect to continue using excess cash to improve leverage ratios and shrink and the balance sheet.

Operator, we've concluded our opening remark.

And now we will open the call for questions.

Thank you.

If you would like to ask a question. Please press star 1 on your telephone keypad and confirmation tone will indicate your line is and the question queue. You May Press Star 2 and if you would like to turn Blue for your question from the queue for participants using speaker.

And it may be necessary to pick up your handset before pressing the star keys, 1 moment, please while we poll for questions.

Thank you. Our first question comes from Spiro <unk> with Credit Suisse. Please proceed with your question.

Equipment Hi, this is Chad on for Spiro just starting off on guidance you mentioned, the $220 million EBITDA range Guide and you previously pointed to some conservatism and the guide as we look at the first half of the year annualized debt to EBITDA level would kind of give us a range just below $240 million for EBITDA for the full year.

And it sounds like PBF is constructive on the outlook for the second half of the year as well are there any drivers and the second half of the year that would drive a meaningfully different outlook and the second half of the year versus first half.

Although our U you sided that we've generally been conservative and the PA. So I'd say, that's consistent going forward.

But certainly nothing that.

And.

Production.

Okay. That's helpful and then I guess just switching the growth.

On the PBF call it sounds like Youre progressing on Michelle and that project too soon.

Soon do you see any.

Capex for the for PBF FX related to the project and if so could that be meaningful spend or kind of.

A few million dollars of spend.

Uh huh.

Well if meaningful based on your words.

And all of the vision side of it.

A few million dollars, but.

<unk> gross certainly possible, although there is a lot of.

Job and certainly for hospital.

The FX.

Participate and such a project for US there is discussion in Washington now.

Those qualified income will qualify well what world.

Total specs.

Spectrum.

And B why didn't.

To come I don't know.

Of course PBF ex.

Today has zero non qualified income.

That's just the facts so we have some room.

Does it go that way too.

For PBF to for.

Something like that but.

It's too early to tell.

Okay understood. That's all I had thanks for the time guys.

Thanks.

Yeah.

We have reached the end of our question and answer session I will now turn the call over to Matt Lucey for any closing remarks.

Well I appreciate everyone listening in and look forward to speaking again next quarter and have a great day.

Yeah.

This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.