PBF Logistics LP (NYSE:PBFX) Q4 2019 Earnings Conference Call - Final Transcript
Feb 14, 2020 • 11:00 am ET
Welcome to the PBF Logistics Fourth Quarter and Full Year 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.
Thank you, Berry. 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'd 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 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 press release.
I'll now turn the call over to Matt Lucey.
Matthew C. Lucey
Thank you, Colin. Good morning, everyone. We finished 2019 with a strong quarter, driven by solid operations, execution of our organic projects and contributions from the processing agreement on our East Coast Storage Assets, which began in October.
Our other East Coast assets continue to see increased local demand and incrementally higher volumes, as a result of the shutdown of the PES refinery. 2019 was a productive year for PBF Logistics.
Our adjusted EBITDA of just over $200 million, exceeded guidance for the year and was driven by solid performance across our entire asset base and solid execution from our employees. Early in the year, in response to the changing markets, we eliminated the Partnership's IDR structure at a LP unitholder friendly multiple of less than 11 times.
In April, we increased the Partnership's ownership of the Torrance Valley Pipeline to a 100% through a successful drop-down transaction that was facilitated through a widely supported public equity offering. Drop-down transactions and equity offerings were fairly rare currencies in the MLP space last year, and PBFX's success in these transactions was made possible by the strong support of our sponsor and our investors.
We remain committed to delivering growth through the continued execution of our ongoing and identified in-house projects, development of strategic partnerships and successful execution of third-party acquisitions.
Today, we are pleased to announce a quarterly distribution of $0.52 per unit. In January, we announced our guidance for 2020, and despite the challenging macro environment, we expect the partnership to deliver approximately $225 million in EBITDA for the year. This figure incorporates the pro-rated contributions of our ongoing organic projects, as they come online and