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

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