PBFX - PBF Logistics LP (PBFX) Q2 2022 Results - Earnings Call Transcript

PBF Logistics LP (PBFX)

Q2 2022 Earnings Conference Call

July 28, 2022, 11:00 AM ET

Company Participants

Colin Murray - Head, IR

Matthew Lucey - EVP

Erik Young - SVP & CFO

Conference Call Participants

Presentation

Operator

Good day, everyone, and welcome to the PBF Logistics Second Quarter 2022 Earnings Conference Call and Webcast. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following management's prepared remarks. [Operator Instructions] Please note that this conference is being recorded.

It is now my pleasure to turn the floor over to Colin Murray of Investor Relations. Sir, you may begin.

Colin Murray

Thank you, Doug. Good morning, and welcome to today's call. With me today are Matt Lucey and Erik Young and several other members of the partnership's senior management team. If you'd like to of our earnings release or 10-Q filings they are 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. In summary, it outlines the statements in the press release and on this conference call that state 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 noted in our press release, we'll be using certain non-GAAP measures while describing the partnership's results. For reconciliations of non-GAAP measures to the appropriate GAAP figure, please refer to the supplemental tables provided in today's press release.

I'll now turn the call over to Matt Lucey.

Matthew Lucey

Thanks, Colin. Good morning, everyone, and thank you for joining us on today's call. PBF Logistics operated the second quarter and for the first half of 2022. Our consistent financial performance continues to be driven by the reliability of our assets and our safety-oriented workforce.

We are on pace to meet or exceed the partnership's full year 2022 revenue guidance of approximately $320 million to $340 million. Revenues in this range are expected to generate EBITDA of approximately $200 million to $210 million.

The partnership's consistent revenues and cash generation provide strong distribution coverage and the ability to continue reducing our net debt. We will remain focused on our balance sheet. Today, the partnership also announced a distribution of $0.30 per unit.

Lastly, today, PBF Energy announced it has entered into an agreement to acquire all the outstanding common use of PBF Logistics LP. There is a separate press release out this morning, which provides additional details of the transaction. This press release and additional - and additional regulatory filings are available on our website and on sec.gov.

With that, I'll turn it over to Erik.

Erik Young

Thank you, Matt. We reported second quarter net income attributable to the limited partners of $39.2 million. Adjusted partnership EBITDA was $58.1 million, which includes roughly $2.9 million noncash unit-based compensation and environmental remediation costs associated with the East Coast terminals.

Additionally, net income was $3.5 million higher this quarter due to incremental onetime revenue related to certain East Coast storage operations. This revenue will not reoccur in future periods.

During the second quarter, we spent approximately $1.7 million in total CapEx, including approximately $1.5 million for maintenance. For the full year 2022 we currently expect capital expenditures to be roughly $14 million, including $12 million for maintenance and $2 million of regulatory spend.

We ended the quarter with just under $500 million in liquidity after repaying an additional $45 million in debt during the second quarter. Our liquidity consists of a cash balance of $31 million and approximately $467 million of availability under our revolver. Net debt to annualized adjusted EBITDA was 2.3 times

Operator, we've concluded our opening remarks, and now we'll open the call for questions.

Question-and-Answer Session

Operator

At this time, there are no questions. I will turn the call back to Matt Lucey for closing remarks.

Matthew Lucey

I appreciate everyone's time and attention today and look forward to talking to you in the future. Thanks so much.

Operator

Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.

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