DKL Delek Logistics Partners LP

• Net income attributable to all partners of $41.1 million
• Quarterly EBITDA of $102.4 million
• Distributable cash flow of $67.8 million, DCF coverage ratio of 1.32x
• Following the end of the 2nd quarter we have made following strategic moves:
  • Announced the acquisition of H2O Midstream for $230 million. It increases Delek Logistics' capabilities to continue to provide full suite of services to Delek Logistics' Permian customers
  • Announced the acquisition of Delek US' interest in the Wink to Webster pipeline
  • Amended and extended agreements with Delek US for a period of up to seven years
  • Announced the final investment decision (FID) on a new gas processing plant adjacent to the existing Delaware plant
• Improved leverage ratio to 3.81x from 4.34x at year-end 2023
• Delivered distribution growth with recent increase to 1.090/unit

Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the second quarter 2024, with reported net income attributable to all partners of $41.1 million, or $0.87 per diluted common limited partner unit. This compares to net income attributable to all partners of $31.9 million, or $0.73 per diluted common limited partner unit, in the second quarter 2023. Net cash provided in operating activities was $87.6 million in the second quarter 2024 compared to $34.6 million in the second quarter 2023. Distributable cash flow was $67.8 million in the second quarter 2024, compared to $60.5 million in the second quarter 2023.

For the second quarter 2024, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $102.4 million compared to $92.8 million in the second quarter 2023.

“Delek Logistics made several strategic announcements today: (i) Delek Logistics & Delek US amended and extended certain contracts for a duration of up to seven years, (ii) The FID (final investment decision) on a new gas processing plant, (iii) Acquisition of H2O Midstream and (iv) Acquisition of Delek US' interest in the Wink to Webster pipeline. These strategic actions position Delek Logistics as a premier, full-service, midstream provider in the prolific Permian Basin,” said Avigal Soreq, President of Delek Logistics' general partner.

"These actions also move Delek Logistics toward becoming an independent, largely third-party cash flow company with a strong growth profile and extremely competitive distribution yield," Mr. Soreq continued.

“In July, the Board continued its commitment to return value to unitholders and approved the 46th consecutive increase in the quarterly distribution to $1.090 per unit," Mr. Soreq concluded.

For the H2O Midstream, transaction, Bank of America Securities, Inc. was the exclusive financial advisor and Baker Botts L.L.P. was the legal advisor to Delek Logistics.

For the intercompany transactions, Intrepid Partners, LLC was the exclusive financial advisor and Gibson, Dunn & Crutcher LLP was the legal advisor to the Conflicts Committee of Delek Logistics.

Distribution and Liquidity

On July 30, 2024, Delek Logistics declared a quarterly cash distribution of $1.090 per common limited partner unit for the second quarter 2024. This distribution will be paid on August 14, 2024 to unitholders of record on August 9, 2024. This represents a 1.9% increase from the first quarter 2024 distribution of $1.070 per common limited partner unit, and a 5.3% increase over Delek Logistics’ second quarter 2023 distribution of $1.035 per common limited partner unit. For the second quarter 2024, the total cash distribution declared to all partners was approximately $51.5 million, resulting in a distributable cash flow ("DCF") coverage ratio of 1.32x.

As of June 30, 2024, Delek Logistics had total debt of approximately $1.57 billion and cash of $5.1 million. Additional borrowing capacity, subject to certain covenants, under the $1.15 billion third party revolving credit facility was $819.8 million. The total leverage ratio as of June 30, 2024 of approximately 3.81x was within the requirements of the maximum allowable leverage ratio under the credit facility.

Consolidated Operating Results

Second quarter 2024, EBITDA was $102.4 million compared with $92.8 million in the second quarter 2023. The $9.6 million increase reflects higher contributions from the Delaware Gathering systems, terminalling and marketing rate increases, as well as continued strong throughput on joint venture pipelines.

Gathering and Processing Segment

EBITDA in the second quarter 2024 was $54.7 million compared with $52.7 million in the second quarter 2023. The increase was primarily due to higher throughput from Permian Basin assets.

Wholesale Marketing and Terminalling Segment

EBITDA in the second quarter 2024 was $30.2 million, compared with second quarter 2023 EBITDA of $28.0 million. The increase was primarily due to higher terminalling utilization.

Storage and Transportation Segment

EBITDA in the second quarter 2024 was $16.8 million, compared with $15.0 million in the second quarter 2023. The increase was primarily due to increased storage and transportation rates.

Investments in Pipeline Joint Ventures Segment

During the second quarter 2024, income from equity method investments was $7.9 million compared to $7.3 million in the second quarter 2023.

Corporate

EBITDA in the second quarter 2024 was a loss of $7.1 million compared to a loss of $10.1 million in the second quarter 2023.

Second Quarter 2024 Results | Conference Call Information

Delek Logistics will hold a conference call to discuss its second quarter 2024 results on Tuesday, August 6, 2024 at 12:30 p.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekLogistics.com. Participants are encouraged to register at least 15 minutes early to download and install any necessary software. An archived version of the replay will also be available at www.DelekLogistics.com for 90 days.

About Delek Logistics Partners, LP

Delek Logistics is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. Through its owned assets and joint ventures located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the Gulf Coast region, Delek Logistics provides gathering, pipeline and other transportation services primarily for crude oil and natural gas customers, storage, wholesale marketing and terminalling services primarily for intermediate and refined product customers, and water disposal and recycling services. Delek US Holdings, Inc. ("Delek US") owns the general partner interest as well as a majority limited partner interest in Delek Logistics, and is also a significant customer.

Safe Harbor Provisions Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or similar expressions, as well as statements in the future tense, and can be impacted by numerous factors, including the fact that a significant portion of Delek Logistics' revenue is derived from Delek US, thereby subjecting us to Delek US' business risks; risks relating to the securities markets generally; risks and costs relating to the age and operational hazards of our assets including, without limitation, costs, penalties, regulatory or legal actions and other effects related to releases, spills and other hazards inherent in transporting and storing crude oil and intermediate and finished petroleum products; the impact of adverse market conditions affecting the utilization of Delek Logistics' assets and business performance, including margins generated by its wholesale fuel business; risks and uncertainties with respect to the timing for closing and the possible benefits of the H2O Midstream transaction, as well as from integration post-closing; risks and uncertainties related to the integration of the 3 Bear business; uncertainties regarding future decisions by OPEC regarding production and pricing disputes between OPEC members and Russia; an inability of Delek US to grow as expected as it relates to our potential future growth opportunities, including dropdowns, and other potential benefits; projected capital expenditures, scheduled turnaround activity; the results of our investments in joint ventures; adverse changes in laws including with respect to tax and regulatory matters; and other risks as disclosed in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports and filings with the United States Securities and Exchange Commission. Forward-looking statements include, but are not limited to, statements regarding future growth at Delek Logistics; distributions and the amounts and timing thereof; potential dropdown inventory; projected benefits of the Delaware Gathering acquisition; expected earnings or returns from joint ventures or other acquisitions; expansion projects; ability to create long-term value for our unit holders; financial flexibility and borrowing capacity; and distribution growth. Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Delek Logistics undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof, except as required by applicable law or regulation.

Non-GAAP Disclosures:

Our management uses certain "non-GAAP" operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our GAAP financial information presented in accordance with U.S. GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include:

• Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income before net interest expense, income tax expense, depreciation and amortization expense, including amortization of customer contract intangible assets, which is included as a component of net revenues in our accompanying consolidated statements of income.
• Distributable cash flow - calculated as net cash flow from operating activities plus or minus changes in assets and liabilities, less maintenance capital expenditures net of reimbursements and other adjustments not expected to settle in cash. Delek Logistics believes this is an appropriate reflection of a liquidity measure by which users of its financial statements can assess its ability to generate cash.

Our EBITDA and distributable cash flow measures are non GAAP supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

• Delek Logistics' operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
• the ability of our assets to generate sufficient cash flow to make distributions to our unitholders on a current and on-going basis;
• Delek Logistics' ability to incur and service debt and fund capital expenditures; and
• the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

We believe that the presentation of EBITDA and distributable cash flow measures provide information useful to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance for current and comparative periods. EBITDA and distributable cash flow should not be considered alternatives to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all, items that affect net income and net cash provided by operating activities. Additionally, because EBITDA and distributable cash flow may be defined differently by other partnerships in our industry, our definitions of EBITDA and distributable cash flow may not be comparable to similarly titled measures of other partnerships, thereby diminishing their utility. For a reconciliation of EBITDA and distributable cash flow to their most directly comparable financial measures calculated and presented in accordance with U.S. GAAP, please refer to "Results of Operations" below. See the accompanying tables in this earnings release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.

Delek Logistics Partners, LP

Consolidated Balance Sheets (Unaudited)

(In thousands, except unit data)

 

June 30, 2024

 

December 31, 2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

5,111

 

 

$

3,755

 

Accounts receivable

 

48,968

 

 

 

41,131

 

Accounts receivable from related parties

 

39,584

 

 

 

28,443

 

Inventory

 

1,756

 

 

 

2,264

 

Other current assets

 

1,150

 

 

 

676

 

Total current assets

 

96,569

 

 

 

76,269

 

Property, plant and equipment:

 

 

 

Property, plant and equipment

 

1,343,356

 

 

 

1,320,510

 

Less: accumulated depreciation

 

(424,283

)

 

 

(384,359

)

Property, plant and equipment, net

 

919,073

 

 

 

936,151

 

Equity method investments

 

235,911

 

 

 

241,337

 

Customer relationship intangible, net

 

172,285

 

 

 

181,336

 

Marketing contract intangible, net

 

98,550

 

 

 

102,155

 

Rights-of-way, net

 

60,416

 

 

 

59,536

 

Goodwill

 

12,203

 

 

 

12,203

 

Operating lease right-of-use assets

 

16,574

 

 

 

19,043

 

Other non-current assets

 

11,721

 

 

 

14,216

 

Total assets

$

1,623,302

 

 

$

1,642,246

 

 

 

 

 

LIABILITIES AND DEFICIT

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

26,236

 

 

$

26,290

 

Current portion of long-term debt

 

—

 

 

 

30,000

 

Interest payable

 

25,557

 

 

 

5,805

 

Excise and other taxes payable

 

8,407

 

 

 

10,321

 

Current portion of operating lease liabilities

 

6,034

 

 

 

6,697

 

Accrued expenses and other current liabilities

 

3,794

 

 

 

11,477

 

Total current liabilities

 

70,028

 

 

 

90,590

 

Non-current liabilities:

 

 

 

Long-term debt, net of current portion

 

1,566,346

 

 

 

1,673,789

 

Operating lease liabilities, net of current portion

 

6,656

 

 

 

8,335

 

Asset retirement obligations

 

10,411

 

 

 

10,038

 

Other non-current liabilities

 

21,168

 

 

 

21,363

 

Total non-current liabilities

 

1,604,581

 

 

 

1,713,525

 

Total liabilities

 

1,674,609

 

 

 

1,804,115

 

Equity (Deficit):

 

 

 

Common unitholders - public; 12,918,673 units issued and outstanding at June 30, 2024 (9,299,763 at December 31, 2023)

 

287,195

 

 

 

160,402

 

Common unitholders - Delek Holdings; 34,311,278 units issued and outstanding at June 30, 2024 (34,311,278 at December 31, 2023)

 

(338,502

)

 

 

(322,271

)

Total deficit

 

(51,307

)

 

 

(161,869

)

Total liabilities and deficit

$

1,623,302

 

 

$

1,642,246

 

Delek Logistics Partners, LP

Consolidated Statement of Income and Comprehensive Income (Unaudited)

(In thousands, except unit and per unit data)

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net revenues:

 

 

 

 

 

 

 

Affiliate

$

156,828

 

 

$

132,993

 

 

$

296,453

 

 

$

257,992

 

Third-party

 

107,800

 

 

 

113,918

 

 

 

220,250

 

 

 

232,444

 

Net revenues

 

264,628

 

 

 

246,911

 

 

 

516,703

 

 

 

490,436

 

Cost of sales:

 

 

 

 

 

 

 

Cost of materials and other - affiliate

 

103,065

 

 

 

92,042

 

 

 

195,947

 

 

 

183,113

 

Cost of materials and other - third party

 

34,995

 

 

 

36,083

 

 

 

65,805

 

 

 

71,108

 

Operating expenses (excluding depreciation and amortization presented below)

 

29,454

 

 

 

28,476

 

 

 

61,149

 

 

 

52,691

 

Depreciation and amortization

 

22,746

 

 

 

22,469

 

 

 

47,913

 

 

 

42,233

 

Total cost of sales

 

190,260

 

 

 

179,070

 

 

 

370,814

 

 

 

349,145

 

Operating expenses related to wholesale business (excluding depreciation and amortization presented below)

 

174

 

 

 

480

 

 

 

395

 

 

 

1,005

 

General and administrative expenses

 

6,016

 

 

 

6,611

 

 

 

10,879

 

 

 

14,121

 

Depreciation and amortization

 

1,461

 

 

 

1,258

 

 

 

2,789

 

 

 

2,599

 

Other operating income, net

 

(1,744

)

 

 

(455

)

 

 

(1,177

)

 

 

(313

)

Total operating costs and expenses

 

196,167

 

 

 

186,964

 

 

 

383,700

 

 

 

366,557

 

Operating income

 

68,461

 

 

 

59,947

 

 

 

133,003

 

 

 

123,879

 

Interest expense, net

 

35,268

 

 

 

35,099

 

 

 

75,497

 

 

 

67,680

 

Income from equity method investments

 

(7,882

)

 

 

(7,285

)

 

 

(16,372

)

 

 

(13,601

)

Other income, net

 

(40

)

 

 

(19

)

 

 

(211

)

 

 

(21

)

Total non-operating expenses, net

 

27,346

 

 

 

27,795

 

 

 

58,914

 

 

 

54,058

 

Income before income tax expense

 

41,115

 

 

 

32,152

 

 

 

74,089

 

 

 

69,821

 

Income tax expense

 

57

 

 

 

256

 

 

 

383

 

 

 

558

 

Net income attributable to partners

$

41,058

 

 

$

31,896

 

 

$

73,706

 

 

$

69,263

 

Comprehensive income attributable to partners

$

41,058

 

 

$

31,896

 

 

$

73,706

 

 

$

69,263

 

 

 

 

 

 

 

 

 

Net income per limited partner unit:

 

 

 

 

 

 

 

Basic

$

0.87

 

 

$

0.73

 

 

$

1.61

 

 

$

1.59

 

Diluted

$

0.87

 

 

$

0.73

 

 

$

1.61

 

 

$

1.59

 

Weighted average limited partner units outstanding:

 

 

 

 

 

 

 

Basic

 

47,219,184

 

 

 

43,577,428

 

 

 

45,812,770

 

 

 

43,573,716

 

Diluted

 

47,232,507

 

 

 

43,597,282

 

 

 

45,829,522

 

 

 

43,591,726

 

Cash distribution per common limited partner unit

$

1.090

 

 

$

1.035

 

 

$

2.160

 

 

$

2.060

 

Delek Logistics Partners, LP

Condensed Consolidated Statements of Cash Flows (In thousands)

Three Months Ended June 30,

 

Six Months Ended June 30,

(Unaudited)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net cash provided by operating activities

$

87,639

 

 

$

34,612

 

 

$

131,497

 

 

$

63,802

 

Cash flows from investing activities

 

 

 

 

 

 

 

Net cash used in investing activities

 

(5,560

)

 

 

(27,914

)

 

 

(15,421

)

 

 

(54,893

)

Cash flows from financing activities

 

 

 

 

 

 

 

Net cash used in financing activities

 

(86,640

)

 

 

(9,947

)

 

 

(114,720

)

 

 

(9,164

)

Net increase (decrease) in cash and cash equivalents

 

(4,561

)

 

 

(3,249

)

 

 

1,356

 

 

 

(255

)

Cash and cash equivalents at the beginning of the period

 

9,672

 

 

 

10,964

 

 

 

3,755

 

 

 

7,970

 

Cash and cash equivalents at the end of the period

$

5,111

 

 

$

7,715

 

 

$

5,111

 

 

$

7,715

 

Delek Logistics Partners, LP

Reconciliation of Amounts Reported Under U.S. GAAP (Unaudited)

(In thousands)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Reconciliation of Net Income to EBITDA:

 

 

 

 

 

 

 

Net income

$

41,058

 

 

$

31,896

 

 

$

73,706

 

 

$

69,263

 

Add:

 

 

 

 

 

 

 

Income tax expense

 

57

 

 

 

256

 

 

 

383

 

 

 

558

 

Depreciation and amortization

 

24,207

 

 

 

23,727

 

 

 

50,702

 

 

 

44,832

 

Amortization of marketing contract intangible

 

1,802

 

 

 

1,802

 

 

 

3,605

 

 

 

3,605

 

Interest expense, net

 

35,268

 

 

 

35,099

 

 

 

75,497

 

 

 

67,680

 

EBITDA

$

102,392

 

 

$

92,780

 

 

$

203,893

 

 

$

185,938

 

 

 

 

 

 

 

 

 

Reconciliation of net cash from operating activities to distributable cash flow:

 

 

 

 

 

 

 

Net cash provided by operating activities

$

87,639

 

 

$

34,612

 

 

$

131,497

 

 

$

63,802

 

Changes in assets and liabilities

 

(24,305

)

 

 

27,259

 

 

 

1,482

 

 

 

64,929

 

Non-cash lease expense

 

38

 

 

 

(2,247

)

 

 

(1,901

)

 

 

(4,447

)

Distributions from equity method investments in investing activities

 

540

 

 

 

—

 

 

 

2,673

 

 

 

1,440

 

Regulatory and sustaining capital expenditures not distributable

 

(3,007

)

 

 

391

 

 

 

(4,286

)

 

 

(3,855

)

Reimbursement from Delek Holdings for capital expenditures

 

(4

)

 

 

674

 

 

 

282

 

 

 

1,011

 

Accretion of asset retirement obligations

 

(186

)

 

 

(176

)

 

 

(373

)

 

 

(352

)

Deferred income taxes

 

(103

)

 

 

(518

)

 

 

(204

)

 

 

(629

)

Gain on disposal of assets

 

7,197

 

 

 

455

 

 

 

6,630

 

 

 

313

 

Distributable Cash Flow

$

67,809

 

 

$

60,450

 

 

$

135,800

 

 

$

122,212

 

Delek Logistics Partners, LP

Distributable Coverage Ratio Calculation (Unaudited)

(In thousands)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Distributions to partners of Delek Logistics, LP

$

51,481

 

$

45,112

 

$

101,995

 

$

89,776

 

 

 

 

 

 

 

 

Distributable cash flow

$

67,809

 

 

$

60,450

 

 

$

135,800

 

 

$

122,212

 

Distributable cash flow coverage ratio (1)

1.32x

 

1.34x

 

1.33x

 

1.36x

(1)

Distributable cash flow coverage ratio is calculated by dividing distributable cash flow by distributions to be paid in each respective period.

Delek Logistics Partners, LP

Segment Data (Unaudited)

(In thousands)

 

 

Three Months Ended June 30, 2024

 

 

Gathering and Processing

 

Wholesale Marketing and Terminalling

 

Storage and Transportation

 

Investments in Pipeline Joint Ventures

 

Corporate and Other

 

Consolidated

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

$

51,529

 

$

70,899

 

$

34,400

 

$

—

 

$

—

 

 

$

156,828

Third party

 

 

41,114

 

 

 

64,701

 

 

 

1,985

 

 

 

—

 

 

 

—

 

 

 

107,800

 

Total revenue

 

$

92,643

 

 

$

135,600

 

 

$

36,385

 

 

$

—

 

 

$

—

 

 

$

264,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA

 

$

54,680

 

 

$

30,205

 

 

$

16,752

 

 

$

7,882

 

 

$

(7,127

)

 

$

102,392

 

Depreciation and amortization

 

 

19,062

 

 

 

1,635

 

 

 

2,522

 

 

 

—

 

 

 

988

 

 

 

24,207

 

Amortization of customer contract intangible

 

 

—

 

 

 

1,802

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,802

 

Interest expense, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

35,268

 

 

 

35,268

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

57

 

Net income

 

 

 

 

 

 

 

 

 

 

 

$

41,058

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital spending

 

$

7,351

 

 

$

105

 

 

$

2,731

 

 

$

—

 

 

$

—

 

 

$

10,187

 

 

 

Three Months Ended June 30, 2023

 

 

Gathering and Processing

 

Wholesale Marketing and Terminalling

 

Storage and Transportation

 

Investments in Pipeline Joint Ventures

 

Corporate and Other

 

Consolidated

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

$

49,182

 

$

52,076

 

 

$

31,735

 

$

—

 

$

—

 

 

$

132,993

Third party

 

 

44,055

 

 

 

66,751

 

 

 

3,112

 

 

 

—

 

 

 

—

 

 

 

113,918

 

Total revenue

 

$

93,237

 

 

$

118,827

 

 

$

34,847

 

 

$

—

 

 

$

—

 

 

$

246,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA

 

$

52,663

 

 

$

27,983

 

 

$

14,978

 

 

$

7,285

 

 

$

(10,129

)

 

$

92,780

 

Depreciation and amortization

 

 

18,801

 

 

 

1,880

 

 

 

2,304

 

 

 

—

 

 

 

742

 

 

 

23,727

 

Amortization of customer contract intangible

 

 

—

 

 

 

1,802

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,802

 

Interest expense, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

35,099

 

 

 

35,099

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

256

 

Net income

 

 

 

 

 

 

 

 

 

 

 

$

31,896

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital spending

 

$

18,877

 

 

$

(2,712

)

 

$

3,215

 

 

$

—

 

 

$

—

 

 

$

19,380

 

 

 

Six Months Ended June 30, 2024

 

 

Gathering and Processing

 

Wholesale Marketing and Terminalling

 

Storage and Transportation

 

Investments in Pipeline Joint Ventures

 

Corporate and Other

 

Consolidated

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

$

104,082

 

$

123,781

 

$

68,590

 

$

—

 

$

—

 

 

$

296,453

Third party

 

 

84,444

 

 

 

131,089

 

 

 

4,717

 

 

 

—

 

 

 

—

 

 

 

220,250

 

Total revenue

 

$

188,526

 

 

$

254,870

 

 

$

73,307

 

 

$

—

 

 

$

—

 

 

$

516,703

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA

 

$

112,439

 

 

$

55,479

 

 

$

34,879

 

 

$

16,372

 

 

$

(15,276

)

 

$

203,893

 

Depreciation and amortization

 

 

40,216

 

 

 

3,347

 

 

 

5,297

 

 

 

—

 

 

 

1,842

 

 

 

50,702

 

Amortization of customer contract intangible

 

 

—

 

 

 

3,605

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,605

 

Interest expense, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

75,497

 

 

 

75,497

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

383

 

Net income

 

 

 

 

 

 

 

 

 

 

 

$

73,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital spending

 

$

22,074

 

 

$

21

 

 

$

3,257

 

 

$

—

 

 

$

—

 

 

$

25,352

 

 

 

Six Months Ended June 30, 2023

 

 

Gathering and Processing

 

Wholesale Marketing and Terminalling

 

Storage and Transportation

 

Investments in Pipeline Joint Ventures

 

Corporate and Other

 

Consolidated

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

$

101,943

 

$

85,827

 

$

70,222

 

$

—

 

$

—

 

 

$

257,992

Third party

 

 

83,726

 

 

 

145,309

 

 

 

3,409

 

 

 

—

 

 

 

—

 

 

 

232,444

 

Total revenue

 

$

185,669

 

 

$

231,136

 

 

$

73,631

 

 

$

—

 

 

$

—

 

 

$

490,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segment EBITDA

 

$

108,108

 

 

$

49,937

 

 

$

28,400

 

 

$

13,601

 

 

$

(14,108

)

 

$

185,938

 

Depreciation and amortization

 

 

35,248

 

 

 

3,569

 

 

 

4,406

 

 

 

—

 

 

 

1,609

 

 

 

44,832

 

Amortization of customer contract intangible

 

 

—

 

 

 

3,605

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,605

 

Interest expense, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

67,680

 

 

 

67,680

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

558

 

Net income

 

 

 

 

 

 

 

 

 

 

 

$

69,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital spending

 

$

51,666

 

 

$

404

 

 

$

3,411

 

 

$

—

 

 

$

—

 

 

$

55,481

 

Delek Logistics Partners, LP

Segment Capital Spending

(In thousands)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

Gathering and Processing

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Regulatory capital spending

$

—

 

$

—

 

 

$

—

 

 

$

—

 

Sustaining capital spending

 

171

 

 

 

—

 

 

 

1,008

 

 

 

—

 

Growth capital spending

 

7,180

 

 

 

18,877

 

 

 

21,066

 

 

 

51,666

 

Segment capital spending

$

7,351

 

 

$

18,877

 

 

$

22,074

 

 

$

51,666

 

Wholesale Marketing and Terminalling

 

 

 

 

 

 

 

Regulatory capital spending

$

99

 

 

$

18

 

 

 

27

 

 

 

79

 

Sustaining capital spending

 

6

 

 

 

(3,856

)

 

 

(6

)

 

 

(925

)

Growth capital spending

 

—

 

 

 

1,126

 

 

 

—

 

 

 

1,250

 

Segment capital spending

$

105

 

 

$

(2,712

)

 

$

21

 

 

$

404

 

Storage and Transportation

 

 

 

 

 

 

 

Regulatory capital spending

$

322

 

 

$

1,124

 

 

$

322

 

 

$

1,148

 

Sustaining capital spending

 

2,409

 

 

 

2,091

 

 

 

2,935

 

 

 

2,263

 

Growth capital spending

 

—

 

 

 

—

 

 

$

—

 

 

$

—

 

Segment capital spending

$

2,731

 

 

$

3,215

 

 

$

3,257

 

 

$

3,411

 

Consolidated

 

 

 

 

 

 

 

Regulatory capital spending

$

421

 

 

$

1,142

 

 

$

349

 

 

$

1,227

 

Sustaining capital spending

 

2,586

 

 

 

(1,765

)

 

 

3,937

 

 

 

1,338

 

Growth capital spending

 

7,180

 

 

 

20,003

 

 

 

21,066

 

 

 

52,916

 

Total capital spending

$

10,187

 

 

$

19,380

 

 

$

25,352

 

 

$

55,481

 

Delek Logistics Partners, LP

 

 

 

 

Segment Operating Data (Unaudited)

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Gathering and Processing Segment:

 

 

 

 

 

 

 

Throughputs (average bpd)

 

 

 

 

 

 

 

El Dorado Assets:

 

 

 

 

 

 

 

Crude pipelines (non-gathered)

 

73,320

 

 

61,260

 

 

73,166

 

 

62,131

Refined products pipelines to Enterprise Systems

 

60,575

 

 

 

44,966

 

 

 

61,904

 

 

 

49,957

 

El Dorado Gathering System

 

13,024

 

 

 

13,041

 

 

 

13,005

 

 

 

13,509

 

East Texas Crude Logistics System

 

23,259

 

 

 

30,666

 

 

 

21,481

 

 

 

26,690

 

Midland Gathering System

 

206,933

 

 

 

221,876

 

 

 

210,196

 

 

 

221,993

 

Plains Connection System

 

210,033

 

 

 

255,035

 

 

 

233,438

 

 

 

247,856

 

Delaware Gathering Assets:

 

 

 

 

 

 

 

Natural Gas Gathering and Processing (Mcfd(1))

 

76,237

 

 

 

73,309

 

 

 

76,280

 

 

 

74,008

 

Crude Oil Gathering (average bpd)

 

123,927

 

 

 

117,017

 

 

 

123,718

 

 

 

110,408

 

Water Disposal and Recycling (average bpd)

 

116,916

 

 

 

127,195

 

 

 

118,592

 

 

 

107,848

 

 

 

 

 

 

 

 

 

Wholesale Marketing and Terminalling Segment:

 

 

 

 

 

 

 

East Texas - Tyler Refinery sales volumes (average bpd) (2)

 

71,082

 

 

 

69,310

 

 

 

68,779

 

 

 

52,158

 

Big Spring marketing throughputs (average bpd)

 

81,422

 

 

 

75,164

 

 

 

79,019

 

 

 

76,763

 

West Texas marketing throughputs (average bpd)

 

11,381

 

 

 

9,985

 

 

 

10,678

 

 

 

9,454

 

West Texas gross margin per barrel

$

2.99

 

 

$

7.01

 

 

$

2.60

 

 

$

6.27

 

Terminalling throughputs (average bpd) (3)

 

159,260

 

 

 

134,323

 

 

 

147,937

 

 

 

113,926

 

(1)

Mcfd - average thousand cubic feet per day.

(2)

Excludes jet fuel and petroleum coke.

(3)

Consists of terminalling throughputs at our Tyler, Big Spring, Big Sandy and Mount Pleasant, Texas, El Dorado and North Little Rock, Arkansas and Memphis and Nashville, Tennessee terminals.

Information about Delek Logistics Partners, LP can be found on its website (www.deleklogistics.com), investor relations webpage (https://www.deleklogistics.com/investor-relations), news webpage (https://www.deleklogistics.com/news-releases) and its X account (@DelekLogistics).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806637231/en/

Investor Relations and Media/Public Affairs Contact: investor.relations@delekus.com