Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today
announced its financial results for the first quarter 2019. For the
three months ended March 31, 2019, Delek Logistics reported net
income attributable to all partners of $19.7 million, or $0.51 per
diluted common limited partner unit. This compares to net income
attributable to all partners of $20.0 million, or $0.59 per diluted
common limited partner unit, in the first quarter 2018. Net cash
from operating activities was $26.2 million in the first quarter
2019 compared to $23.7 million in the prior year period.
Distributable cash flow was $29.0 million in the first quarter
2019, compared to $28.0 million in the prior-year period.
Reconciliation of 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 first quarter 2019, earnings before
interest, taxes, depreciation and amortization ("EBITDA") was $39.4
million compared to $34.7 million in the prior-year period. This
increase was primarily due to the contribution from the Big Spring
logistics assets acquired from Delek US Holdings, Inc. (“Delek US”)
effective March 1, 2018 (the "Big Spring acquisition"). On a year
over year basis, lower throughputs primarily at assets supporting
Delek US' El Dorado, Arkansas refinery reduced gross margin by
approximately $1.2 million. 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 and Chief Executive Officer
of Delek Logistics' general partner, remarked: "Our EBITDA
increased by 13.5 percent on a year over year basis and we ended
the quarter with $389 million of availability on our credit
facility. This financial flexibility should support our growth
efforts as we evaluate the potential drop down of the Krotz Springs
logistics assets and explore third party opportunities. Also,
Delek US is pursuing midstream initiatives which should increase
potential drop down inventory that can provide future growth. The
increase in crude oil prices has continued to support demand in our
west Texas operations and the wider Brent-WTI differential is
supporting volumes on our Paline Pipeline. In addition, the
incentive tariff of $0.75 per barrel on Paline expired at the end
of February and the FERC tariff of $1.57 per barrel is in place,
which should add approximately $0.9 million per month of
EBITDA. We were pleased to announce the 9.3% year-over-year
increase in our first quarter distribution, and we remain committed
to grow our distribution per limited partner unit by at least 10%
annually through 2019."
Distribution and Liquidity
On April 26, 2019, Delek Logistics declared
a quarterly cash distribution of $0.82 per common limited partner
unit for the first quarter, which equates to $3.28 per common
limited partner unit on an annualized basis. This distribution is
to be paid on May 14, 2019 to unitholders of record on
May 7, 2019. This represents a 1.2 percent increase from the
fourth quarter 2018 distribution of $0.81 per common limited
partner unit, or $3.24 per common limited partner unit on an
annualized basis, and a 9.3 percent increase over Delek Logistics’
first quarter 2018 distribution of $0.75 per common limited partner
unit, or $3.00 per common limited partner unit annualized. For the
first quarter 2019, the total cash distribution declared to all
partners, including incentive distribution rights (IDRs), was
approximately $27.4 million. Based on the distribution for the
first quarter 2019, the distributable cash flow coverage ratio for
the first quarter was 1.06x.
As of March 31, 2019, Delek Logistics had
total debt of approximately $705.2 million and cash of $5.4
million. Additional borrowing capacity, subject to certain
covenants, under the $850.0 million credit facility was $388.8
million. The total leverage ratio, calculated in accordance with
the credit facility, for the first quarter 2019 was approximately
4.2x, which is within the current requirements of the maximum
allowable leverage ratio of 5.25x.
Financial Results
Revenue for the first quarter 2019 was $152.5
million compared to $167.9 million in the prior-year period. The
decrease in revenue is primarily due to lower prices in the west
Texas wholesale business, partially offset by the Big Spring
acquisition that was effective March 1, 2018. Total operating
expenses were $16.1 million in the first quarter 2019, compared to
$12.6 million in the first quarter 2018. This increase was
primarily due to the contribution from the acquired Big Spring
assets and outside services. Total segment contribution
margin was $40.2 million in the first quarter 2019 compared to
$36.3 million in the first quarter 2018. General and administrative
expenses were $4.5 million for the first quarter 2019, compared to
$3.0 million in the prior-year period. This increase was partially
due to employee expenses.
Pipelines and Transportation
Segment
Contribution margin in the first quarter 2019
was $24.2 million compared to $19.7 million in the first quarter
2018. This increase was primarily due to the contribution from the
Big Spring acquisition, partially offset by lower performance from
the Lion Oil Pipeline system due to lower throughput at Delek US'
El Dorado, Arkansas refinery. Operating expenses were $10.8 million
in the first quarter 2019 compared to $9.6 million in the
prior-year period, primarily due to the Big Spring acquisition.
Wholesale Marketing and Terminalling
Segment
During the first quarter 2019, contribution
margin was $15.9 million, compared to $16.7 million in the first
quarter 2018. This decrease was primarily due to a lower gross
margin in west Texas, which was partially offset by the
contribution from the Big Spring acquisition. Operating
expenses increased to $5.2 million in the first quarter 2019,
compared to $3.0 million in the prior-year period primarily due to
the Big Spring acquisition.
In the west Texas wholesale business, average
throughput in the first quarter 2019 was 13,314 barrels per day
compared to 15,942 barrels per day in the first quarter 2018. The
west Texas gross margin per barrel decreased year-over-year to
$3.56 per barrel and included approximately $0.3 million, or $0.27
per barrel, from renewable identification numbers (RINs) generated
in the quarter. During the first quarter 2018, the west Texas
gross margin per barrel was $5.16 per barrel and included $1.2
million from RINs, or $0.81 per barrel.
Average terminalling throughput volume of
152,469 barrels per day during the first quarter 2019 increased on
a year-over-year basis from 143,476 barrels per day in the first
quarter 2018 primarily due to the Big Spring acquisition.
During the first quarter 2019, average volume under the East Texas
marketing agreement with Delek US was 68,577 barrels per day
compared to 73,244 barrels per day during the first quarter
2018.
First Quarter 2019 Results | Conference
Call Information
Delek Logistics will hold a conference call to
discuss its first quarter 2019 results on Monday, May 6, 2019 at
7:30 a.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. For those who cannot listen to the live broadcast, a
telephonic replay will be available through August 6, 2019 by
dialing (855) 859-2056, passcode 3455428. 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) first quarter 2019 earnings conference call on Monday,
May 6, 2019 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; 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, including the Krotz Springs
logistics assets; 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) |
|
March 31, |
|
December 31, |
|
2019 |
|
2018 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash
equivalents |
$ |
5,356 |
|
|
$ |
4,522 |
|
Accounts
receivable |
21,538 |
|
|
21,586 |
|
Inventory |
6,669 |
|
|
5,491 |
|
Other
current assets |
629 |
|
|
969 |
|
Total
current assets |
34,192 |
|
|
32,568 |
|
Property, plant and
equipment: |
|
|
|
Property,
plant and equipment |
453,591 |
|
|
452,746 |
|
Less:
accumulated depreciation |
(146,712 |
) |
|
(140,184 |
) |
Property,
plant and equipment, net |
306,879 |
|
|
312,562 |
|
Equity method
investments |
107,830 |
|
|
104,770 |
|
Operating lease
right-of-use assets |
19,186 |
|
|
— |
|
Goodwill |
12,203 |
|
|
12,203 |
|
Marketing Contract
Intangible, net |
136,407 |
|
|
138,210 |
|
Other non-current
assets |
23,511 |
|
|
24,280 |
|
Total
assets |
$ |
640,208 |
|
|
$ |
624,593 |
|
|
|
|
|
LIABILITIES AND
DEFICIT |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
5,511 |
|
|
$ |
14,226 |
|
Accounts
payable to related parties |
10,522 |
|
|
7,833 |
|
Excise
and other taxes payable |
4,496 |
|
|
4,069 |
|
Pipeline
release liabilities |
3,293 |
|
|
4,419 |
|
Current
portion of operating lease liabilities |
4,258 |
|
|
— |
|
Accrued
expenses and other current liabilities |
10,940 |
|
|
5,958 |
|
Total
current liabilities |
39,020 |
|
|
36,505 |
|
Non-current
liabilities: |
|
|
|
Long-term
debt |
705,175 |
|
|
700,430 |
|
Asset
retirement obligations |
5,290 |
|
|
5,191 |
|
Operating
lease liabilities, net of current portion |
14,928 |
|
|
— |
|
Other
non-current liabilities |
17,700 |
|
|
17,290 |
|
Total
non-current liabilities |
743,093 |
|
|
722,911 |
|
Deficit: |
|
|
|
Common
unitholders - public; 9,113,359 units issued and outstanding
at March 31, 2019 (9,109,807 at December 31, 2018) |
168,389 |
|
|
171,023 |
|
Common
unitholders - Delek Holdings; 15,294,046 units issued and
outstanding at March 31, 2019 (15,294,046 at December 31,
2018) |
(303,902 |
) |
|
(299,360 |
) |
General
partner - 498,110 units issued and outstanding at March 31, 2019
(498,038 at December 31, 2018) |
(6,392 |
) |
|
(6,486 |
) |
Total
deficit |
(141,905 |
) |
|
(134,823 |
) |
Total
liabilities and deficit |
$ |
640,208 |
|
|
$ |
624,593 |
|
|
|
Delek Logistics Partners, LP |
Condensed Consolidated Statements of Income
(Unaudited) |
(In
thousands, except unit and per unit data) |
|
Three Months Ended March 31, |
|
2019 |
|
2018 (1) |
Net revenues: |
|
|
|
Affiliate |
$ |
62,965 |
|
|
$ |
61,644 |
|
Third-party |
89,518 |
|
|
106,277 |
|
Net revenues |
152,483 |
|
|
167,921 |
|
Operating costs and
expenses: |
|
|
|
Cost of
materials and other |
96,265 |
|
|
119,032 |
|
Operating
expenses (excluding depreciation and amortization presented
below) |
15,307 |
|
|
11,898 |
|
Depreciation and amortization |
6,124 |
|
|
5,464 |
|
Total
cost of sales |
117,696 |
|
|
136,394 |
|
Operating
expenses related to wholesale business (excluding depreciation and
amortization presented below) |
751 |
|
|
679 |
|
General
and administrative expenses |
4,473 |
|
|
2,975 |
|
Depreciation and amortization |
450 |
|
|
536 |
|
Loss on
asset disposals |
2 |
|
|
60 |
|
Total
operating costs and expenses |
123,372 |
|
|
140,644 |
|
Operating
income |
29,111 |
|
|
27,277 |
|
Interest expense,
net |
11,301 |
|
|
8,062 |
|
(Income) loss from
equity method investments |
(1,951 |
) |
|
(858 |
) |
Income before income
tax expense |
19,761 |
|
|
20,073 |
|
Income tax expense |
65 |
|
|
78 |
|
Net income attributable
to partners |
$ |
19,696 |
|
|
$ |
19,995 |
|
Comprehensive income
attributable to partners |
$ |
19,696 |
|
|
$ |
19,995 |
|
|
|
|
|
Less: General partner's
interest in net income, including incentive distribution
rights |
7,270 |
|
|
5,630 |
|
Limited partners'
interest in net income |
$ |
12,426 |
|
|
$ |
14,365 |
|
|
|
|
|
Net income per
limited partner unit: |
|
|
|
Common units -
(basic) |
$ |
0.51 |
|
|
$ |
0.59 |
|
Common units -
(diluted) |
$ |
0.51 |
|
|
$ |
0.59 |
|
|
|
|
|
Weighted
average limited partner units outstanding: |
|
|
|
Common units -
basic |
24,407,168 |
|
|
24,382,633 |
|
Common units -
diluted |
24,416,058 |
|
|
24,393,746 |
|
|
|
|
|
Cash distribution per
limited partner unit |
$ |
0.820 |
|
|
$ |
0.750 |
|
|
(1)
Certain changes to presentation of the prior period statements of
income have been made in order to conform to the current period
presentation, primarily relating to the addition of a subtotal
entitled 'cost of sales' which includes all costs directly
attributable to the generation of the related revenue, as defined
by GAAP, and the retitling of what was previously referred to as
'cost of goods sold' to 'cost of materials and other'. Operating
expenses and depreciation and amortization related to the wholesale
business and the retail business are excluded from cost of sales
because they primarily relate to costs associated with selling the
products. |
|
|
|
|
|
Delek Logistics
Partners, LP |
|
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited) |
|
|
|
(In
thousands) |
|
|
|
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
Cash flows from
operating activities |
|
|
|
Net income |
$ |
19,696 |
|
|
$ |
19,995 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
6,574 |
|
|
6,000 |
|
Non-cash
lease expense |
1,016 |
|
|
— |
|
Amortization of customer contract intangible assets |
1,803 |
|
|
601 |
|
Amortization of deferred revenue |
(402 |
) |
|
(350 |
) |
Amortization of deferred financing costs and debt discount |
905 |
|
|
656 |
|
Accretion
of asset retirement obligations |
99 |
|
|
78 |
|
Income
from equity method investments |
(1,951 |
) |
|
(858 |
) |
Dividends
from equity method investments |
1,488 |
|
|
1,033 |
|
Loss on
asset disposals |
2 |
|
|
60 |
|
Unit-based compensation expense |
144 |
|
|
147 |
|
Changes
in assets and liabilities: |
|
|
|
Accounts
receivable |
48 |
|
|
(2,352 |
) |
Inventories and other current assets |
(838 |
) |
|
7,977 |
|
Accounts
payable and other current liabilities |
(5,177 |
) |
|
7,091 |
|
Accounts
receivable/payable to related parties |
2,689 |
|
|
(15,790 |
) |
Non-current assets and liabilities, net |
109 |
|
|
(632 |
) |
Net cash
provided by operating activities |
26,205 |
|
|
23,656 |
|
Cash flows from
investing activities |
|
|
|
Asset acquisitions, net
of assumed asset retirement obligation liabilities |
— |
|
|
(72,376 |
) |
Purchases of property,
plant and equipment |
(1,181 |
) |
|
(3,253 |
) |
Proceeds from sales of
property, plant and equipment |
12 |
|
|
91 |
|
Purchases of intangible
assets |
— |
|
|
(144,219 |
) |
Distributions from
equity method investments |
804 |
|
|
660 |
|
Equity method
investment contributions |
(3,401 |
) |
|
— |
|
Net cash
(used in) provided by financing activities |
(3,766 |
) |
|
(219,097 |
) |
Cash flows from
financing activities |
|
|
|
Proceeds from issuance
of additional units to maintain 2% General Partner interest |
2 |
|
|
13 |
|
Distributions to
general partner |
(7,179 |
) |
|
(5,100 |
) |
Distributions to common
unitholders - public |
(7,352 |
) |
|
(6,590 |
) |
Distributions to common
unitholders - Delek Holdings |
(12,388 |
) |
|
(11,088 |
) |
Distributions to Delek
Holdings unitholders and general partner related to Big Spring
Logistic Assets Acquisition |
— |
|
|
(98,798 |
) |
Proceeds from revolving
credit facility |
119,000 |
|
|
409,200 |
|
Payments of revolving
credit facility |
(114,500 |
) |
|
(94,400 |
) |
Reimbursement of
capital expenditures by Delek Holdings |
812 |
|
|
2,316 |
|
Net cash
(used in) provided by financing activities |
(21,605 |
) |
|
195,553 |
|
Net increase in
cash and cash equivalents |
834 |
|
|
112 |
|
Cash and cash
equivalents at the beginning of the period |
4,522 |
|
|
4,675 |
|
Cash and cash
equivalents at the end of the period |
$ |
5,356 |
|
|
$ |
4,787 |
|
Supplemental
disclosures of cash flow information: |
|
|
|
Cash paid during the
period for: |
|
|
|
Interest |
$ |
5,997 |
|
|
$ |
3,009 |
|
Income
taxes |
$ |
58 |
|
|
$ |
— |
|
Non-cash investing
activities: |
|
|
|
Decrease
in accrued capital expenditures |
$ |
(276 |
) |
|
$ |
(1,004 |
) |
Non-cash financing
activities: |
|
|
|
Non-cash
lease liability arising from recognition of right of use
assets upon adoption of ASU 2016-02 |
$ |
20,202 |
|
|
$ |
— |
|
|
|
Delek Logistics Partners, LP |
Reconciliation of Amounts Reported Under U.S.
GAAP |
(In
thousands) |
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
Reconciliation
of net income to EBITDA: |
|
|
|
Net income |
$ |
19,696 |
|
|
$ |
19,995 |
|
Add: |
|
|
|
Income
tax expense |
65 |
|
|
78 |
|
Depreciation and amortization |
6,574 |
|
|
6,000 |
|
Amortization of customer contract intangible assets |
1,803 |
|
|
601 |
|
Interest
expense, net |
11,301 |
|
|
8,062 |
|
EBITDA |
$ |
39,439 |
|
|
$ |
34,736 |
|
|
|
|
|
Reconciliation
of net cash from operating activities to distributable cash
flow: |
|
|
|
Net cash
provided by operating activities |
$ |
26,205 |
|
|
$ |
23,656 |
|
Changes
in assets and liabilities |
3,169 |
|
|
3,706 |
|
Non-cash
lease expense |
(1,016 |
) |
|
$ |
— |
|
Distributions from equity method investments in investing
activities |
804 |
|
|
660 |
|
Maintenance and regulatory capital expenditures |
(818 |
) |
|
(324 |
) |
Reimbursement from Delek Holdings for capital expenditures |
714 |
|
|
391 |
|
Accretion
of asset retirement obligations |
(99 |
) |
|
(78 |
) |
Loss on
asset disposals |
(2 |
) |
|
(60 |
) |
Distributable
Cash Flow |
$ |
28,957 |
|
|
$ |
27,951 |
|
Delek Logistics Partners, LP |
Distributable Coverage Ratio Calculation |
(In thousands) |
|
Three Months Ended March 31, |
Distributions to
partners of Delek Logistics, LP |
2019 |
|
2018 |
Limited partners'
distribution on common units |
$ |
20,014 |
|
|
$ |
18,287 |
|
General
partner's distributions |
408 |
|
|
373 |
|
General
partner's incentive distribution rights |
7,016 |
|
|
5,337 |
|
Total distributions to
be paid |
$ |
27,438 |
|
|
$ |
23,997 |
|
|
|
|
|
Distributable cash
flow |
$ |
28,957 |
|
|
$ |
27,951 |
|
Distributable cash flow
coverage ratio (1) |
1.06x |
|
1.16x |
|
(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 March 31, |
|
2019 |
|
2018 |
Pipelines and Transportation |
|
|
|
Net
revenues: |
|
|
|
Affiliate |
$ |
36,659 |
|
|
$ |
29,462 |
|
Third
party |
3,974 |
|
|
4,251 |
|
Total
pipelines and transportation |
40,633 |
|
|
33,713 |
|
Cost of
sales: |
|
|
|
Cost of
materials and other |
5,567 |
|
|
4,441 |
|
Operating
expenses (excluding depreciation and amortization) |
10,834 |
|
|
9,622 |
|
Segment
contribution margin |
$ |
24,232 |
|
|
$ |
19,650 |
|
Total
Assets |
$ |
401,833 |
|
|
$ |
417,781 |
|
Wholesale Marketing and Terminalling |
|
|
|
Net
revenues: |
|
|
|
Affiliates (1) |
$ |
26,306 |
|
|
$ |
32,182 |
|
Third
party |
85,544 |
|
|
102,026 |
|
Total
wholesale marketing and terminalling |
111,850 |
|
|
134,208 |
|
Cost of
sales: |
|
|
|
Cost of
materials and other |
90,698 |
|
|
114,591 |
|
Operating
expenses (excluding depreciation and amortization) |
5,224 |
|
|
2,955 |
|
Segment
contribution margin |
$ |
15,928 |
|
|
$ |
16,662 |
|
Total
Assets |
$ |
238,375 |
|
|
$ |
248,165 |
|
Consolidated |
|
|
|
Net
revenues: |
|
|
|
Affiliates |
$ |
62,965 |
|
|
$ |
61,644 |
|
Third
party |
89,518 |
|
|
106,277 |
|
Total
consolidated |
152,483 |
|
|
167,921 |
|
Cost of
sales: |
|
|
|
Cost of
materials and other |
96,265 |
|
|
119,032 |
|
Operating
expenses (excluding depreciation and amortization presented
below) |
16,058 |
|
|
12,577 |
|
Contribution margin |
40,160 |
|
|
36,312 |
|
General
and administrative expenses |
4,473 |
|
|
2,975 |
|
Depreciation and amortization |
6,574 |
|
|
6,000 |
|
Loss
(gain) on asset disposals |
2 |
|
|
60 |
|
Operating
income |
$ |
29,111 |
|
|
$ |
27,277 |
|
Total Assets |
$ |
640,208 |
|
|
$ |
665,946 |
|
|
(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 March 31, |
Pipelines and Transportation |
2019 |
|
2018 |
Maintenance capital
spending |
$ |
410 |
|
|
$ |
517 |
|
Discretionary capital spending |
14 |
|
|
891 |
|
Segment
capital spending |
$ |
424 |
|
|
$ |
1,408 |
|
Wholesale Marketing and Terminalling |
|
|
|
Maintenance capital spending |
$ |
107 |
|
|
$ |
202 |
|
Discretionary capital spending |
373 |
|
|
587 |
|
Segment
capital spending |
$ |
480 |
|
|
$ |
789 |
|
Consolidated |
|
|
|
Maintenance capital spending |
$ |
517 |
|
|
$ |
719 |
|
Discretionary capital spending |
387 |
|
|
1,478 |
|
Total
capital spending |
$ |
904 |
|
|
$ |
2,197 |
|
Delek Logistics Partners, LP |
Segment Data (Unaudited) |
|
Three Months Ended March 31, |
|
2019 |
|
2018 |
Pipelines and
Transportation Segment: |
|
|
|
Throughputs (average
bpd) |
|
|
|
Lion Pipeline
System: |
|
|
|
Crude pipelines
(non-gathered) |
28,683 |
|
|
54,728 |
|
Refined products
pipelines to Enterprise Systems |
23,092 |
|
|
49,754 |
|
SALA Gathering
System |
16,998 |
|
|
16,672 |
|
East Texas Crude
Logistics System |
18,113 |
|
|
18,062 |
|
|
|
|
|
Wholesale
Marketing and Terminalling Segment: |
|
|
|
East Texas - Tyler
Refinery sales volumes (average bpd) (1) |
68,577 |
|
|
73,244 |
|
Big Spring marketing
throughputs (average bpd) (2) |
87,741 |
|
|
75,139 |
|
West Texas marketing
throughputs (average bpd) |
13,314 |
|
|
15,942 |
|
West Texas gross margin
per barrel |
$ |
3.56 |
|
|
$ |
5.16 |
|
Terminalling
throughputs (average bpd) (3) |
152,469 |
|
|
143,476 |
|
|
(1)
Excludes jet fuel and petroleum coke. |
|
(2)
Throughputs for the three months ended March 31, 2018 are for
the 31 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 three months ended
March 31, 2018 are for the 31 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 three months ended
March 31, 2018 was 11.3 million barrels, which averaged
125,639 bpd for the period. |
|
|
|
|
|
Reconciliation of Forecast Incremental U.S.
GAAP Net Income (Loss) to Forecast Incremental EBITDA for Paline
Pipeline Tariff Increase |
|
|
|
|
|
|
|
|
($ in millions) |
Annual |
Monthly |
|
|
|
|
|
|
|
|
|
Forecasted Incremental
Net Income |
$ |
10.8 |
|
$ |
0.9 |
|
|
|
|
Add Forecasted
Incremental Amounts for: |
|
|
|
|
|
Interest Expense,
net |
— |
|
— |
|
|
|
|
Depreciation and
amortization |
— |
|
— |
|
|
|
|
Forecasted
Incremental EBITDA |
$ |
10.8 |
|
$ |
0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investor / Media Relations Contact:Keith
JohnsonVice President of Investor
Relations
615-435-1366
Media/Public Affairs Contact:Michael P.
RalskyVice President - Government Affairs, Public Affairs &
Communications615-435-1407
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