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PBF Logistics LP Common Units representing limited partner interests
Q2 2022 Earnings Conference Call
7/28/2022
spk02: 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. If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. 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.
spk03: Thank you, Doug. Good morning and welcome to today's call. With me today are Matt Lucey and Eric Young and several other members of the partnership's senior management team. If you'd like a copy of our earnings release or 10-Q filing, 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 that 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 will 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 Lucie.
spk01: Thanks, Colin. Good morning, everyone, and thank you for joining us on today's call. PBF Logistics operated well in 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 to $340 million. Revenues in this range are expected to generate EBITDA of approximately $200 to $210 million. The partnership's consistent revenues and cash generations 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 30 cents per unit. Lastly, today, PBF Energy announced it has entered into an agreement to acquire all the outstanding common units 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 regulatory filings are available on our website and on SEC.gov.
spk00: With that, I'll turn it over to Eric. 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 of non-cash 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 one-time 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.
spk02: At this time, there are no questions. I will turn the call back to Matt Lucey for closing remarks.
spk01: I appreciate everyone's time and attention today and look forward to talking to you in the future. Thanks so much.
spk02: 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.
Disclaimer