PBF Logistics LP
Q2 2019 Earnings Call Transcript

Published: 1 Aug 2019

[Operator:]

Welcome to the PBF Logistics Second Quarter 2019 Earnings Conference Call and Webcast. [Operator Instructions]. It is now my pleasure to turn the floor over to Colin Murray of investor relations. Sir, you may begin.

[Colin Murray:]

Thank you, Bree. Good morning and welcome to today's call. With me today are Matt Lucey, Executive Vice President; Erik Young, our CFO; and several other members of the partnership's senior management team. If you would like a copy of our earnings release, it is available on our website.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 that 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 release, we will be -- use 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 press release.Now I will turn the call over to Matt Lucey.

[Matthew Lucey:]

Thank you, Colin. Good morning, everyone, and thank you for joining us. On May 31, we completed our previously announced $200 million drop-down acquisition of the remaining 50% interest of the Torrance Valley Pipeline Company. This transaction is strategically important for PBF Logistics as we consolidate ownership of a major asset within the partnership and secure the partnership's near-term growth requirements. The transaction was primarily financed with a highly successful capital raise, and I want to highlight this point

[Erik Young:]

Thank you, Matt. This morning, we reported second quarter net income attributable to the limited partners of $22.2 million. Adjusted partnership EBITDA was $48.3 million, excluding $5.8 million of transaction costs associated with the Torrance Valley Pipeline acquisition, environmental remediation costs associated with our East Coast Terminals and noncash unit-based compensation.During the quarter, we spent approximately $640,000 in maintenance CapEx and approximately $3.2 million on the growth projects Matt mentioned a moment ago. Our total CapEx for 2019 is expected to be approximately $30 million to $35 million. Excluding onetime expenses, our second quarter coverage was 1.13x. We maintain our long-term outlook for targeted coverage of 1.15x and expect to meet and exceed this as contributions from both recent acquisitions and investments in organic projects provide incremental DCF over the next 12 to 18 months.We ended the quarter with over $265 million in liquidity, including $20 million of cash and roughly $245 million of availability under our revolving credit facility. Net debt-to-annualized adjusted EBITDA was 3.9x.Operator, we've concluded our opening remarks, and we'll open the call for questions.

[Matthew Lucey:]

We greatly appreciate you listening to today's call, and we look forward to speaking here again next quarter. Thanks much.

[Operator:]

This does conclude today's program. Thank you for your participation. You may now disconnect.