Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today
announced its financial results for the fourth quarter 2019. For
the three months ended December 31, 2019, Delek Logistics reported
net income attributable to all partners of $21.6 million, or $0.52
per diluted common limited partner unit. This compares to net
income attributable to all partners of $21.3 million, or $0.58 per
diluted common limited partner unit, in the fourth quarter 2018.
Net cash from operating activities was $45.8 million in the fourth
quarter 2019 compared to $95.4 million in the fourth quarter
2018. Distributable cash flow was $33.0 million in the fourth
quarter 2019, compared to $27.6 million in the fourth quarter 2018.
Reconciliation of net cash from operating activities as reported
under U.S. GAAP to distributable cash flow is included in the
financial tables attached to this release.
For the fourth quarter 2019, earnings before
interest, taxes, depreciation and amortization ("EBITDA") was $43.3
million compared to $40.8 million in the fourth quarter 2018.
Despite spill related costs of $7.1 million in the fourth quarter
2019, results improved on a year-over-year basis. This was
primarily due to a $3.4 million increase to income from equity
method investments, as well as increased contributions from the
Paline Pipeline and Gathering Assets. This was partially offset by
lower West Texas gross margin on a year-over-year basis.
Reconciliation of net income attributable to all partners as
reported under U.S. GAAP to EBITDA is included in the financial
tables attached to this release.
Uzi Yemin, Chairman, President and Chief
Executive Officer of Delek Logistics' general partner, remarked:
"Delek Logistics delivered strong financial performance in fourth
quarter with EBITDA increasing approximately 23% excluding spill
related costs. Full-year 2019 distribution growth was over 10
percent on a year-over-year basis. The acquisition of the Red River
pipeline joint venture bolstered results in 2019. The pipeline
expansion, currently underway, should increase the contribution
into the second half of 2020. Looking forward, we are targeting
distribution growth of 5% in 2020. We are looking at
simplifying the capital structure and preparing the balance sheet
for potential asset drop-down options from our sponsor, Delek US
Holdings, Inc. (NYSE: DK) ("Delek US"). From a strategic
perspective, we remain focused on maintaining strong cash flow
coverage and flexibility."
Distribution and Liquidity
On January 24, 2020, Delek Logistics
declared a quarterly cash distribution of $0.885 per common limited
partner unit for the fourth quarter 2019, which equates to $3.54
per common limited partner unit on an annualized basis. This
distribution was paid on February 12, 2020 to unitholders of
record on February 4, 2020. This represents a 1.0 percent
increase from the third quarter 2019 distribution of $0.880 per
common limited partner unit, or $3.52 per common limited partner
unit on an annualized basis, and a 9.3% increase over Delek
Logistics’ fourth quarter 2018 distribution of $0.810 per common
limited partner unit, or $3.24 per common limited partner unit
annualized. For the fourth quarter 2019, the total cash
distribution declared to all partners, including incentive
distribution rights (IDRs), was approximately $30.6 million. Based
on the distribution for the fourth quarter 2019, the distributable
cash flow coverage ratio for the fourth quarter was 1.08x.
As of December 31, 2019, Delek Logistics
had total debt of approximately $833.1 million and cash of $5.5
million. Additional borrowing capacity, subject to certain
covenants, under the $850.0 million credit facility was $261.6
million. The total leverage ratio, calculated in accordance with
the credit facility, for the fourth quarter 2019 was approximately
4.43x, which is within the current requirements of the maximum
allowable leverage ratio of 5.25x and a decrease from the third
quarter 2019 level of 4.60x
Financial Results
Revenue for the fourth quarter 2019 was $138.6
million compared to $159.3 million in the prior-year period. The
decrease in revenue is primarily due to lower prices and volumes in
the west Texas wholesale business, partially offset by improved
performance from the Gathering Assets and Paline Pipeline. Total
operating expenses were $22.3 million in the fourth quarter 2019,
compared to $15.9 million in the fourth quarter 2018. The increase
was primarily due to spill related costs, higher maintenance and
repair and outside services. Total contribution margin was $42.5
million in the fourth quarter 2019 compared to $45.0 million in the
fourth quarter 2018. General and administrative expenses were $5.8
million for the fourth quarter 2019, compared to $7.4 million in
the prior-year period, with the decrease being primarily due to
services rendered in fourth quarter 2018 to support the development
and operations of the Big Spring Gathering project not occurring in
fourth quarter 2019.
Pipelines and Transportation
Segment
Contribution margin in the fourth quarter 2019
was $25.2 million compared to $26.3 million in the fourth quarter
2018. Operating expenses were $18.7 million in the fourth
quarter 2019 compared to $10.9 million in the prior-year period.
The increase was primarily driven by spill related costs.
Excluding those costs, the contribution margin would have increased
year-over-year due to strong performance from Paline and the
Gathering Assets.
Wholesale Marketing and Terminalling
Segment
During the fourth quarter 2019, contribution
margin was $17.3 million, compared to $18.8 million in the fourth
quarter 2018. This decrease was primarily due to lower gross margin
in west Texas. Operating expenses of $3.6 million in the fourth
quarter 2019 were lower than the $5.0 million in the prior-year
period.
In the west Texas wholesale business, average
throughput in the fourth quarter 2019 was 9,972 barrels per day
compared to 12,938 barrels per day in the fourth quarter 2018. The
west Texas gross margin per barrel decreased year-over-year to
$3.12 per barrel and included approximately $0.3 million, or $0.28
per barrel, from renewable identification numbers (RINs) generated
in the quarter. During the fourth quarter 2018, the west Texas
gross margin per barrel was $4.60 per barrel and included $0.2
million from RINs, or $0.14 per barrel.
Average terminalling throughput volume of
160,298 barrels per day during the fourth quarter 2019 decreased on
a year-over-year basis from 164,028 barrels per day in the fourth
quarter 2018. During the fourth quarter 2019, average volume
under the East Texas marketing agreement with Delek US was 73,016
barrels per day compared to 77,896 barrels per day during the
fourth quarter 2018.
Fourth Quarter 2019 Results | Conference
Call Information
Delek Logistics will hold a conference call to
discuss its fourth quarter 2019 results on Wednesday, February 26,
2020 at 7:30 a.m. Central Time. Investors will have the opportunity
to listen to the conference call live by going to www.Delek
Logistics.com. Participants are encouraged to register at least 15
minutes early to download and install any necessary software. For
those who cannot listen to the live broadcast, a telephonic replay
will be available through March 11, 2020 by dialing (855) 859-2056,
passcode 1297317. An archived version of the replay will also be
available at www.DelekLogistics.com for 90 days.
Investors may also wish to listen to Delek US’
(NYSE: DK) fourth quarter 2019 earnings conference call on
Wednesday, February 26, 2020 at 8:30 a.m. Central Time and review
Delek US’ earnings press release. Market trends and information
disclosed by Delek US may be relevant to Delek Logistics, as it is
a consolidated subsidiary of Delek US. Investors can find
information related to Delek US and the timing of its earnings
release online by going to www.DelekUS.com.
About Delek Logistics Partners,
LP
Delek Logistics Partners, LP, headquartered in
Brentwood, Tennessee, was formed by Delek US Holdings, Inc. (NYSE:
DK) to own, operate, acquire and construct crude oil and refined
products logistics and marketing assets.
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 substantial majority of Delek
Logistics' contribution margin 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; an inability of Delek US to grow as expected as it
relates to our potential future growth opportunities, including
dropdowns, and other potential benefits; the results of our
investments in joint ventures; the ability of the Red River joint
venture to complete the expansion to increase the Red River
pipeline capacity; 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 and the evaluation of incentive
distribution rights; 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 of 10% or at all.
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 condensed 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.
EBITDA and distributable cash flow are non-U.S.
GAAP supplemental financial measures that management and external
users of our condensed 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;
- 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.
Delek Logistics believes that the presentation
of EBITDA, distributable cash flow and distributable cash flow
coverage ratio provide useful information to investors in assessing
its financial condition, its results of operations and the cash
flow its business is generating. EBITDA, distributable cash flow
and distributable cash flow coverage ratio should not be considered
in isolation or as 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.
Non-GAAP measures 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. These measures should not be considered substitutes for
their most directly comparable U.S. GAAP financial measures.
Additionally, because EBITDA and distributable cash flow may be
defined differently by other partnerships in its industry, Delek
Logistics' definitions of EBITDA and distributable cash flow may
not be comparable to similarly titled measures of other
partnerships, thereby diminishing their utility. 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 |
Condensed
Consolidated Balance Sheets (Unaudited) |
(In
thousands, except unit and per unit
data) |
|
December 31, 2019 |
|
December 31, 2018 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
5,545 |
|
|
$ |
4,522 |
|
Accounts
receivable |
13,204 |
|
|
21,586 |
|
Inventory |
12,617 |
|
|
5,491 |
|
Other current assets |
2,204 |
|
|
969 |
|
Total current assets |
33,570 |
|
|
32,568 |
|
Property, plant and
equipment: |
|
|
|
Property, plant and equipment |
461,325 |
|
|
452,746 |
|
Less: accumulated depreciation |
(166,281 |
) |
|
(140,184 |
) |
Property, plant and equipment, net |
295,044 |
|
|
312,562 |
|
Equity method investments |
246,984 |
|
|
104,770 |
|
Operating lease right-of-use
assets |
3,745 |
|
|
— |
|
Goodwill |
12,203 |
|
|
12,203 |
|
Marketing Contract Intangible,
net |
130,999 |
|
|
138,210 |
|
Other non-current assets |
21,902 |
|
|
24,280 |
|
Total assets |
$ |
744,447 |
|
|
$ |
624,593 |
|
|
|
|
|
LIABILITIES AND
DEFICIT |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
12,471 |
|
|
$ |
14,226 |
|
Accounts payable to related parties |
8,898 |
|
|
7,833 |
|
Interest Payable |
2,572 |
|
|
2,664 |
|
Excise and other taxes payable |
3,941 |
|
|
4,069 |
|
Current portion of operating lease liabilities |
1,435 |
|
|
— |
|
Accrued expenses and other current liabilities |
5,765 |
|
|
7,713 |
|
Total current liabilities |
35,082 |
|
|
36,505 |
|
Non-current liabilities: |
|
|
|
Long-term debt |
833,110 |
|
|
700,430 |
|
Asset retirement obligations |
5,588 |
|
|
5,191 |
|
Deferred tax liabilities |
215 |
|
|
— |
|
Operating lease liabilities, net of current portion |
2,310 |
|
|
— |
|
Other non-current liabilities |
19,261 |
|
|
17,290 |
|
Total non-current liabilities |
860,484 |
|
|
722,911 |
|
Total liabilities |
895,566 |
|
|
759,416 |
|
Equity (Deficit): |
|
|
|
Common unitholders - public; 9,131,579 units issued and
outstanding at December 31, 2019 (9,109,807 at December 31,
2018) |
164,436 |
|
|
171,023 |
|
Common unitholders - Delek Holdings; 15,294,046 units issued and
outstanding at December 31, 2019 (15,294,046 at December 31,
2018) |
(310,513 |
) |
|
(299,360 |
) |
General partner - 498,482 units issued and outstanding at December
31, 2019 (498,038 at December 31, 2018) |
(5,042 |
) |
|
(6,486 |
) |
Total deficit |
(151,119 |
) |
|
(134,823 |
) |
Total liabilities and deficit |
$ |
744,447 |
|
|
$ |
624,593 |
|
Delek
Logistics Partners, LP |
Condensed
Consolidated Statements of Income (Unaudited) |
(In
thousands, except unit and per unit
data) |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net revenues: |
|
|
|
|
|
|
|
|
Affiliate |
|
$ |
69,484 |
|
|
$ |
62,250 |
|
|
$ |
261,014 |
|
|
$ |
240,809 |
|
Third-party |
|
69,126 |
|
|
97,048 |
|
|
322,978 |
|
|
416,800 |
|
Net revenues |
|
138,610 |
|
|
159,298 |
|
|
583,992 |
|
|
657,609 |
|
Cost of Sales: |
|
|
|
|
|
|
|
|
Cost of materials and other |
|
73,760 |
|
|
98,417 |
|
|
336,473 |
|
|
429,061 |
|
Operating expenses (excluding depreciation and amortization
presented below) |
|
22,023 |
|
|
15,423 |
|
|
71,341 |
|
|
55,924 |
|
Depreciation and amortization |
|
6,443 |
|
|
5,821 |
|
|
24,893 |
|
|
24,108 |
|
Total cost of sales |
|
102,226 |
|
|
119,661 |
|
|
432,707 |
|
|
509,093 |
|
Operating expenses related to wholesale business (excluding
depreciation and amortization presented below) |
|
314 |
|
|
432 |
|
|
2,816 |
|
|
2,820 |
|
General and administrative expenses |
|
5,769 |
|
|
7,367 |
|
|
20,815 |
|
|
17,166 |
|
Depreciation and amortization |
|
457 |
|
|
448 |
|
|
1,808 |
|
|
1,882 |
|
Other operating expense (income), net |
|
129 |
|
|
243 |
|
|
34 |
|
|
891 |
|
Total operating costs and expenses |
|
108,895 |
|
|
128,151 |
|
|
458,180 |
|
|
531,852 |
|
Operating income |
|
29,715 |
|
|
31,147 |
|
|
125,812 |
|
|
125,757 |
|
Interest expense, net |
|
12,164 |
|
|
11,167 |
|
|
47,328 |
|
|
41,263 |
|
Income from equity method
investments |
|
(4,972 |
) |
|
(1,549 |
) |
|
(19,832 |
) |
|
(6,230 |
) |
Other expense, net |
|
139 |
|
|
— |
|
|
600 |
|
|
8 |
|
Total non-operating expenses, net |
|
7,331 |
|
|
9,618 |
|
|
28,096 |
|
|
35,041 |
|
Income before income tax
expense |
|
22,384 |
|
|
21,529 |
|
|
97,716 |
|
|
90,716 |
|
Income tax expense
(benefit) |
|
746 |
|
|
249 |
|
|
967 |
|
|
534 |
|
Net income attributable to
partners |
|
$ |
21,638 |
|
|
$ |
21,280 |
|
|
$ |
96,749 |
|
|
$ |
90,182 |
|
Comprehensive income
attributable to partners |
|
$ |
21,638 |
|
|
$ |
21,280 |
|
|
$ |
96,749 |
|
|
$ |
90,182 |
|
|
|
|
|
|
|
|
|
|
Less: General partner's
interest in net income, including incentive distribution
rights |
|
8,834 |
|
|
7,065 |
|
|
33,080 |
|
|
25,543 |
|
Limited partners' interest in
net income |
|
$ |
12,804 |
|
|
$ |
14,215 |
|
|
$ |
63,669 |
|
|
$ |
64,639 |
|
|
|
|
|
|
|
|
|
|
Net income per limited
partner unit: |
|
|
|
|
|
|
|
|
Common units - basic |
|
$ |
0.52 |
|
|
$ |
0.58 |
|
|
$ |
2.61 |
|
|
$ |
2.65 |
|
Common units - diluted |
|
$ |
0.52 |
|
|
$ |
0.58 |
|
|
$ |
2.61 |
|
|
$ |
2.65 |
|
|
|
|
|
|
|
|
|
|
Weighted average
limited partner units outstanding: |
|
|
|
|
|
|
|
|
Common units - basic |
|
24,419,189 |
|
|
24,397,085 |
|
|
24,413,294 |
|
|
24,390,286 |
|
Common units - diluted |
|
24,424,715 |
|
|
24,405,661 |
|
|
24,418,641 |
|
|
24,396,881 |
|
|
|
|
|
|
|
|
|
|
Cash distribution per limited
partner unit |
|
$ |
0.885 |
|
|
$ |
0.810 |
|
|
$ |
3.440 |
|
|
$ |
3.120 |
|
Delek Logistics Partners, LP |
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited) |
|
|
|
|
|
|
|
(In
thousands) |
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, |
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows
from operating activities |
|
|
|
|
|
|
|
Net income |
$ |
96,749 |
|
|
$ |
90,182 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
26,701 |
|
|
25,990 |
|
Non-cash lease expense |
193 |
|
|
— |
|
Amortization of customer contract intangible assets |
7,211 |
|
|
6,009 |
|
Amortization of deferred revenue |
(1,688 |
) |
|
(1,497 |
) |
Amortization of deferred financing costs and debt discount |
2,629 |
|
|
2,577 |
|
Accretion of asset retirement obligations |
397 |
|
|
359 |
|
Income from equity method investments |
(19,832 |
) |
|
(6,230 |
) |
Dividends from equity method investments |
16,108 |
|
|
6,936 |
|
(Gain) loss on asset disposals |
(197 |
) |
|
891 |
|
Other non-cash adjustments |
1,557 |
|
|
826 |
|
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
8,382 |
|
|
1,427 |
|
Inventories and other current assets |
(7,702 |
) |
|
15,178 |
|
Accounts payable and other current liabilities |
(4,836 |
) |
|
(1,747 |
) |
Accounts receivable/payable to related parties |
1,065 |
|
|
9,038 |
|
Non-current assets and liabilities, net |
3,662 |
|
|
3,019 |
|
Changes in assets
and liabilities |
571 |
|
|
26,915 |
|
Net cash provided by operating activities |
130,399 |
|
|
152,958 |
|
Cash flows
from investing activities |
|
|
|
Asset
acquisitions, net of assumed asset retirement obligation
liabilities |
— |
|
|
(72,380 |
) |
Purchases of
property, plant and equipment |
(9,070 |
) |
|
(12,931 |
) |
Proceeds from
sales of property, plant and equipment |
144 |
|
|
502 |
|
Purchases of
intangible assets |
— |
|
|
(144,219 |
) |
Distributions from
equity method investments |
804 |
|
|
1,162 |
|
Equity method
investment contributions |
(139,294 |
) |
|
(173 |
) |
Net cash used in investing activities |
(147,416 |
) |
|
(228,039 |
) |
Cash flows
from financing activities |
|
|
|
Proceeds from
issuance of additional units to maintain 2% General Partner
interest |
8 |
|
|
26 |
|
Distributions to
general partner |
(31,654 |
) |
|
(23,698 |
) |
Distributions to
common unitholders - public |
(30,626 |
) |
|
(27,721 |
) |
Distributions to
common unitholders - Delek Holdings |
(51,388 |
) |
|
(46,417 |
) |
Distributions to
Delek Holdings unitholders and general partner related to Big
Spring Logistic Assets Acquisition |
— |
|
|
(98,798 |
) |
Proceeds from
revolving credit facility |
564,700 |
|
|
735,000 |
|
Payments on
revolving credit facility |
(433,000 |
) |
|
(458,200 |
) |
Deferred financing
costs paid |
— |
|
|
(5,264 |
) |
Net cash provided by (used in) financing
activities |
18,040 |
|
|
74,928 |
|
Net
increase (decrease) in cash and cash equivalents |
1,023 |
|
|
(153 |
) |
Cash and cash
equivalents at the beginning of the period |
4,522 |
|
|
4,675 |
|
Cash and cash
equivalents at the end of the period |
$ |
5,545 |
|
|
$ |
4,522 |
|
Supplemental disclosures of cash flow
information: |
|
|
|
Cash paid during
the period for: |
|
|
|
Interest |
$ |
44,791 |
|
|
$ |
38,959 |
|
Income taxes |
$ |
144 |
|
|
$ |
137 |
|
Non-cash investing
activities: |
|
|
|
Increase/(Decrease) in accrued capital expenditures |
$ |
917 |
|
|
$ |
(1,363 |
) |
Non-cash financing
activities: |
|
|
|
Sponsor contribution of fixed assets |
$ |
— |
|
|
$ |
154 |
|
Non-cash lease liability arising from obtaining right of use assets
during the period |
$ |
1,285 |
|
|
$ |
— |
|
Non-cash lease liability arising from recognition of right of
use assets upon adoption of ASU 2016-02 |
$ |
2,654 |
|
|
$ |
— |
|
Delek
Logistics Partners, LP |
Reconciliation of Amounts Reported Under U.S.
GAAP |
(In
thousands) |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Reconciliation of Net Income to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
21,638 |
|
|
$ |
21,280 |
|
|
$ |
96,749 |
|
|
$ |
90,182 |
|
Add: |
|
|
|
|
|
|
|
|
Income tax expense |
|
746 |
|
|
249 |
|
|
967 |
|
|
534 |
|
Depreciation and amortization |
|
6,900 |
|
|
6,269 |
|
|
26,701 |
|
|
25,990 |
|
Amortization of customer contract intangible assets |
|
1,803 |
|
|
1,803 |
|
|
7,211 |
|
|
6,009 |
|
Interest expense, net |
|
12,164 |
|
|
11,167 |
|
|
47,328 |
|
|
41,263 |
|
EBITDA |
|
$ |
43,251 |
|
|
$ |
40,768 |
|
|
$ |
178,956 |
|
|
$ |
163,978 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of net cash from operating activities to
distributable cash flow: |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
45,809 |
|
|
$ |
95,358 |
|
|
$ |
130,399 |
|
|
$ |
152,958 |
|
Changes in assets and liabilities |
|
(14,793 |
) |
|
(64,915 |
) |
|
(571 |
) |
|
(26,915 |
) |
Non-cash lease expense |
|
2,361 |
|
|
— |
|
|
(193 |
) |
|
— |
|
Distributions from equity method investments in investing
activities |
|
— |
|
|
205 |
|
|
804 |
|
|
1,162 |
|
Maintenance and regulatory capital expenditures |
|
(2,947 |
) |
|
(3,485 |
) |
|
(8,569 |
) |
|
(7,326 |
) |
Reimbursement from Delek Holdings for capital expenditures |
|
3,221 |
|
|
936 |
|
|
5,828 |
|
|
3,115 |
|
Accretion of asset retirement obligations |
|
(99 |
) |
|
(92 |
) |
|
(397 |
) |
|
(359 |
) |
Deferred income
taxes |
|
(611 |
) |
|
(152 |
) |
|
(496 |
) |
|
$ |
(152 |
) |
Gain (loss) on
asset disposals |
|
102 |
|
|
(243 |
) |
|
197 |
|
|
(891 |
) |
Distributable Cash Flow |
|
$ |
33,043 |
|
|
$ |
27,612 |
|
|
127,002 |
|
|
$ |
121,592 |
|
Delek
Logistics Partners, LP |
Distributable Coverage Ratio Calculation |
(In
thousands) |
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
Distributions to partners of Delek Logistics, LP |
|
2019 |
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Limited partners' distribution on common units |
|
$ |
21,616 |
|
|
$ |
19,770 |
|
|
$ |
83,873 |
|
|
$ |
76,113 |
|
General partner's distributions |
|
444 |
|
|
— |
|
|
$ |
1,711 |
|
|
$ |
1,553 |
|
General partner's incentive distribution rights |
|
8,573 |
|
|
6,775 |
|
|
$ |
31,781 |
|
|
$ |
24,224 |
|
Total distributions to be paid |
|
$ |
30,633 |
|
|
$ |
26,545 |
|
|
$ |
117,365 |
|
|
$ |
101,890 |
|
|
|
|
|
|
|
|
|
|
Distributable
cash flow |
|
$ |
33,043 |
|
|
$ |
27,612 |
|
|
$ |
127,002 |
|
|
$ |
121,592 |
|
Distributable
cash flow coverage ratio (1) |
|
|
|
|
|
|
|
|
1.08x |
|
|
|
|
|
1.04x |
|
|
|
|
|
|
|
|
|
1.08x |
|
|
|
|
|
1.19x |
|
(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 December 31, |
|
Twelve Months Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Pipelines and Transportation |
|
|
|
|
|
|
|
Net
revenues: |
|
|
|
|
|
|
|
Affiliate |
$ |
42,517 |
|
|
$ |
38,794 |
|
|
$ |
155,211 |
|
|
$ |
138,418 |
|
Third
party |
6,374 |
|
|
3,531 |
|
|
23,107 |
|
|
15,149 |
|
Total
pipelines and transportation |
48,891 |
|
|
42,325 |
|
|
178,318 |
|
|
153,567 |
|
Cost of sales: |
|
|
|
|
|
|
|
Cost of materials and other |
4,955 |
|
|
5,187 |
|
|
22,826 |
|
|
19,878 |
|
Operating expenses (excluding depreciation and amortization) |
18,718 |
|
|
10,880 |
|
|
54,827 |
|
|
39,934 |
|
Segment contribution margin |
$ |
25,218 |
|
|
$ |
26,258 |
|
|
$ |
100,665 |
|
|
$ |
93,755 |
|
Total
Assets |
$ |
537,580 |
|
|
$ |
387,333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale Marketing and Terminalling |
|
|
|
|
|
|
|
Net
revenues: |
|
|
|
|
|
|
|
Affiliates (1) |
$ |
26,967 |
|
|
$ |
23,456 |
|
|
$ |
105,803 |
|
|
$ |
102,391 |
|
Third
party |
62,752 |
|
|
93,517 |
|
|
299,871 |
|
|
401,651 |
|
Total
wholesale marketing and terminalling |
89,719 |
|
|
116,973 |
|
|
405,674 |
|
|
504,042 |
|
Cost of sales: |
|
|
|
|
|
|
|
Cost of materials and other |
68,805 |
|
|
93,230 |
|
|
313,647 |
|
|
409,183 |
|
Operating expenses (excluding depreciation and amortization) |
3,619 |
|
|
4,975 |
|
|
19,330 |
|
|
18,810 |
|
Segment contribution margin |
$ |
17,295 |
|
|
$ |
18,768 |
|
|
$ |
72,697 |
|
|
$ |
76,049 |
|
Total
Assets |
$ |
206,867 |
|
|
$ |
237,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
Net
revenues: |
|
|
|
|
|
|
|
Affiliates |
$ |
69,484 |
|
|
$ |
62,250 |
|
|
$ |
261,014 |
|
|
$ |
240,809 |
|
Third party |
69,126 |
|
|
97,048 |
|
|
322,978 |
|
|
416,800 |
|
Total consolidated |
138,610 |
|
|
159,298 |
|
|
583,992 |
|
|
657,609 |
|
Cost of sales: |
|
|
|
|
|
|
|
Cost of materials and other |
73,760 |
|
|
98,417 |
|
|
336,473 |
|
|
429,061 |
|
Operating expenses (excluding depreciation and amortization
presented below) |
22,337 |
|
|
15,855 |
|
|
74,157 |
|
|
58,744 |
|
Contribution margin |
42,513 |
|
|
45,026 |
|
|
173,362 |
|
|
169,804 |
|
General and administrative expenses |
5,769 |
|
|
7,367 |
|
|
20,815 |
|
|
17,166 |
|
Depreciation and amortization |
6,900 |
|
|
6,269 |
|
|
26,701 |
|
|
25,990 |
|
Loss (gain) on asset disposals |
129 |
|
|
243 |
|
|
34 |
|
|
891 |
|
Operating income |
$ |
29,715 |
|
|
$ |
31,147 |
|
|
$ |
125,812 |
|
|
$ |
125,757 |
|
Total
Assets |
$ |
744,447 |
|
|
$ |
624,593 |
|
|
|
|
|
(1) Affiliate revenue for the wholesale marketing and
terminalling segment is presented net of amortization expense
pertaining to the marketing contract intangible we acquired in
connection with the Big Spring acquisition.
Delek
Logistics Partners, LP |
Segment
Capital Spending |
(In
thousands) |
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
Pipelines
and Transportation |
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Maintenance capital spending |
|
2,434 |
|
|
|
1,084 |
|
|
|
6,435 |
|
|
|
3,669 |
|
Discretionary capital spending |
40 |
|
|
1,436 |
|
|
165 |
|
|
3,171 |
|
Segment capital spending |
$ |
2,474 |
|
|
$ |
2,520 |
|
|
$ |
6,600 |
|
|
$ |
6,840 |
|
Wholesale Marketing and Terminalling |
|
|
|
|
|
|
|
Maintenance capital spending |
$ |
1,199 |
|
|
$ |
1,429 |
|
|
2,588 |
|
|
$ |
2,880 |
|
Discretionary capital spending |
295 |
|
|
176 |
|
|
799 |
|
|
1,845 |
|
Segment capital spending |
$ |
1,494 |
|
|
$ |
1,605 |
|
|
$ |
3,387 |
|
|
$ |
4,725 |
|
Consolidated |
|
|
|
|
|
|
|
Maintenance capital spending |
$ |
3,633 |
|
|
$ |
2,513 |
|
|
$ |
9,023 |
|
|
$ |
6,549 |
|
Discretionary capital spending |
335 |
|
|
1,612 |
|
|
964 |
|
|
5,016 |
|
Total
capital spending |
$ |
3,968 |
|
|
$ |
4,125 |
|
|
$ |
9,987 |
|
|
$ |
11,565 |
|
Delek
Logistics Partners, LP |
|
|
|
|
Segment
Data (Unaudited) |
|
|
|
|
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Pipelines
and Transportation Segment: |
|
|
|
|
|
|
|
Throughputs
(average bpd) |
|
|
|
|
|
|
|
Lion Pipeline
System: |
|
|
|
|
|
|
|
Crude
pipelines (non-gathered) |
55,521 |
|
|
45,416 |
|
|
42,918 |
|
|
51,992 |
|
Refined
products pipelines to Enterprise Systems |
53,960 |
|
|
41,496 |
|
|
37,716 |
|
|
45,728 |
|
Gathering
Assets |
30,917 |
|
|
15,536 |
|
|
21,869 |
|
|
16,571 |
|
East Texas Crude
Logistics System |
16,612 |
|
|
13,602 |
|
|
19,927 |
|
|
15,696 |
|
|
|
|
|
|
|
|
|
Wholesale
Marketing and Terminalling Segment: |
|
|
|
|
|
|
|
East Texas - Tyler
Refinery sales volumes (average bpd) (1) |
73,016 |
|
|
77,896 |
|
|
74,206 |
|
|
77,487 |
|
Big Spring
marketing throughputs (average bpd) (2) |
79,985 |
|
|
84,135 |
|
|
82,695 |
|
|
81,117 |
|
West Texas
marketing throughputs (average bpd) |
9,972 |
|
|
12,938 |
|
|
11,075 |
|
|
13,323 |
|
West Texas gross
margin per barrel |
$ |
3.12 |
|
|
$ |
4.60 |
|
|
$ |
4.44 |
|
|
$ |
5.57 |
|
Terminalling
throughputs (average bpd) (3) |
160,298 |
|
|
164,028 |
|
|
160,075 |
|
|
161,284 |
|
(1) Excludes jet fuel and petroleum coke.
(2) Throughputs for the twelve months ended
December 31, 2018 are for the 306 days we marketed certain
finished products produced at or sold from the Big Spring Refinery
following the execution of the Big Spring Marketing Agreement,
effective March 31, 2018.
(3) Consists of terminalling throughputs at our
Tyler, Big Spring, Big Sandy and Mount Pleasant, Texas, our El
Dorado and North Little Rock, Arkansas and our Memphis and
Nashville, Tennessee terminals. Throughputs for the Big Spring
terminal for twelve months ended December 31, 2018 are for the
306 days we operated the terminal following its acquisition
effective March 1, 2018. Barrels per day are calculated
for only the days we operated each terminal. Total throughput for
the twelve months ended months ended December 31, 2018 was
56.6 million barrels, which averaged 155,193 bpd for the
period.
Investor/Media Relations Contacts:Blake
Fernandez, Senior Vice President of Investor Relations and Market
Intelligence, 615-224-1312Jeb Bachmann, Manager of Investor
Relations and Market Intelligence, 615-224-1118Lenny Raymond,
Manager of Investor Relations and Market Intelligence,
615-224-0828
Keith Johnson, Vice President of Investor Relations,
615-435-1366
Media/Public Affairs Contact:Michael P. Ralsky,
Vice President - Government Affairs, Public Affairs &
Communications, 615-435-1407
Delek US (NYSE:DK)
Historical Stock Chart
From Aug 2024 to Sep 2024
Delek US (NYSE:DK)
Historical Stock Chart
From Sep 2023 to Sep 2024