Q4 2021 PBF Logistics LP Earnings Call
Copy of our earnings release, it is available on our website before.
Before we begin I would like to direct your attention to the forward looking statements disclaimer contained in today's press release in summary, it outlines that statements in the press release and on this conference call.
The partnerships 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 a reminder, PBF logistics 10-K should be available in a week's time.
As noted in today's press release, we'll be using certain non-GAAP measures, while describing the partnership's operating performance and financial results for reconciliations of non-GAAP measures to the appropriate GAAP figure. Please refer to the supplemental tables provided in today's release I'll now turn the call over to Matt Lucey.
Colin Good morning, everyone and thank you for joining us on today's call.
PBF logistics operated well into 2021.
We finished the year with another strong operational quarter and continued to deliver consistent results.
We expect our strong relationship supported by contractual revenues will continue to deliver consistent results in 2022.
We expect partnership full year 2022 revenue to be approximately $320 million to $340 million.
Partnership revenues reflect a lower minimum volume commitments for the east coast rail facilities, which took effect as of January one of 'twenty two.
The contract extension and adjusted minimum volume commitments were originally announced in February of 2019.
Revenues in this range are expected to generate EBITDA of approximately 200.
To $210 million.
The partnership's consistent revenues and cash generations provides strong distribution coverage and the ability to continue reducing our net debt.
We will remain focused on our balance sheet.
In doing so we maintain flexibility.
To increase and increase our ability to potentially grow the partnership in the future.
Today, we announced a distribution of <unk> 30 per unit.
We will continue to review our distribution policy going forward with respect to company performance market conditions.
And alternate use of funds.
With that I'll turn it over to Eric. Thank you, Matt We reported fourth quarter net income attributable to the limited partners of $42 3 million adjust.
Adjusted partnership EBITDA was $60 8 million, which includes approximately 1 million of noncash unit based compensation and environmental remediation costs associated with the east coast terminals as well as the $2 $8 million gain on the sale of assets.
Partnership net income for the full year 2021 was $153 3 million with adjusted EBITDA of $237 7 million.
During the fourth quarter, we spent roughly $1 7 million and total capex, including approximately $1 1 million for maintenance.
In 2021 total capital expenditures were approximately $8 6 million for.
For 2022, we currently expect capital expenditures to be approximately $14 million, including 12 million for maintenance and $2 million of regulatory spend.
We ended the quarter with approximately $430 million in liquidity after repaying an additional $25 million in debt during the fourth quarter.
For a total of $100 million in debt repayments in calendar 2021.
Our liquidity consists of a cash balance of $34 million and just under $400 million of availability under our revolving credit facility.
Net debt to annualized adjusted EBITDA was two four times.
We expect to continue using excess cash to improve leverage ratios and strengthening the balance sheet.
Consistent with our commentary on the PBF energy earnings call. This morning.
Our near term finance efforts are focused on a successful refinancing and long term credit extension of the revolver and unsecured notes due in 2023.
Operator, we've concluded our opening remarks and now we'll open the call for questions.
Thank you and enrollment we will open the call to questions.
If I could ask a question. Please press star one on your telephone keypad.
The tone will indicate your line is in the question queue.
You May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star keys.
One moment, please while we pull for questions.
And our first question comes from the line of Spiro <unk> with credit Suisse. Please.
Please proceed with your question.
Hi, This is Chad on for Spiro just first question.
Pvs sanctioning the renewable diesel projects and moving forward with it I'm just trying to get your latest thoughts on if you plan to use the PBF FX entity to help fund the renewable diesel project.
Currently.
And part of.
Allowable income for the MLP does not include.
Normal seasonal.
Activity.
That being said PBF FX has zero.
Unqualified income so.
There is some room for PBF FX to participate in the project just using.
Wifi the income.
But theres also the prospect.
Legislation can change around what was defined as qualified it.
We will stay close to that but.
But.
Essentially summarizes where PBF.
<unk> can play in it today.
Okay. Thanks, that's helpful. And then just on the second question I'm, just curious I think the 2022 EBITDA guidance implies a little more than $30 million EBITDA decline.
From 2021 levels is that just the rail contract rolling off or are there any other factors that go into that guide.
I think the easy easy math is just to assume it's roughly $20 million associated with the rail step down and the remainder is primarily going to be driven by the reduction right forget this maersk contract historically over the past couple of years as that rolls off.
There was a portion of that to hit 2021 and that that is not in existence as we sit here today and thank you.
Okay. That's helpful. Thanks for the time.
And we have.
Reached the end of the question and answer session I will now turn the call over to Matt Lucey for closing remarks.
I appreciate everyone's time today have a great day.
This concludes today's conference and you may disconnect your lines at this time thank.
Thank you for your participation.
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Okay.
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