Fourth Quarter
- Net income attributable to all partners of $22.1 million
- Quarterly EBITDA of $86.1
million, adjusted EBITDA of $100.9
million
- Distributable cash flow of $64.6
million, DCF coverage ratio of 1.40x
- Delivered 44 consecutive quarters of distribution growth
with recent increase to $1.055/unit
2023 Full Year
- Net income attributable to all partners of $126.2 million
- EBITDA of $370.3 million,
adjusted EBITDA of $385.1
million
- Distributable cash flow of $248.2
million, DCF coverage ratio of 1.37x
- Improved leverage ratio to 4.34x from 4.89x at year-end
2022
- Grew Midland gathering & processing volumes nearly
80%
- Rewarded unitholders with continued distribution
growth
2024 Capital Program
- 2024 capital expenditures are estimated to be approximately
$70 million
BRENTWOOD, Tenn., Feb. 27,
2024 /PRNewswire/ -- Delek Logistics Partners, LP
(NYSE: DKL) ("Delek Logistics") today announced its financial
results for the fourth quarter 2023, with reported net income
attributable to all partners of $22.1
million, or $0.51 per diluted
common limited partner unit. This compares to net income
attributable to all partners of $42.7
million, or $0.98 per diluted
common limited partner unit, in the fourth quarter 2022. The
decrease in net income attributable to all partners was driven by
higher interest expense and a fourth quarter 2023 goodwill
impairment. Net cash provided in operating activities was
$114.7 million in the fourth quarter
2023 compared to net cash used in operating activities of
$105.3 million in the fourth quarter
2022. Distributable cash flow was $64.6
million in the fourth quarter 2023, compared to $51.4 million in the fourth quarter
2022.
For the fourth quarter 2023, earnings before interest, taxes,
depreciation and amortization ("EBITDA") was $86.1 million. Excluding the goodwill
impairment, adjusted EBITDA was $100.9
million compared to $92.5
million in the fourth quarter 2022.
"I am pleased to say that Delek Logistics has exceeded quarterly
earnings goals, and surpassed last year's strong performance," said
Avigal Soreq, President of Delek Logistics' general partner. "We
saw substantial growth from new connections in our Midland
gathering operations, further validating our strong position in the
Permian Basin. The dedication of our workforce to having safe
and reliable operations also contributed to our success. I'm
proud of the team that has gone without a lost time injury 4-years
in a row and counting. We are excited for Delek Logistics'
future and numerous growth opportunities. The business looks to
utilize capital investments in 2024 to support customer growth and
expand upon existing assets."
"In January, the Board approved the 44th consecutive increase in
the quarterly distribution to $1.055
per unit. Delek Logistics has a strong track record of delivering
value to unitholders. We feel confident in our ability to maintain
competitive distributions to our investors as we head into 2024,"
Mr. Soreq concluded.
Distribution and Liquidity
On January 24, 2024, Delek Logistics declared a quarterly
cash distribution of $1.055 per
common limited partner unit for the fourth quarter 2023. This
distribution was paid on February 12, 2024 to unitholders of
record on February 5, 2024. This represents a 1.0% increase
from the third quarter 2023 distribution of $1.045 per common limited partner unit, and a
3.4% increase over Delek Logistics' fourth quarter 2022
distribution of $1.020 per common
limited partner unit. For the fourth quarter 2023, the total cash
distribution declared to all partners was approximately
$46.0 million, resulting in a
distributable cash flow ("DCF") coverage ratio of 1.40x.
As of December 31, 2023, Delek
Logistics had total debt of approximately $1.70 billion and cash of $3.8 million. Additional borrowing capacity,
subject to certain covenants, under the $1.05 billion third party revolving credit
facility was $269.5 million. The
total leverage ratio as of December 31,
2023 of approximately 4.34x was within the requirements of
the maximum allowable leverage ratio under the credit facility.
Consolidated Operating Results
Fourth quarter 2023 Adjusted EBITDA was $100.9 million compared with $92.5 million in the fourth quarter 2022. The
$8.4 million increase reflects higher
contributions from the Midland Gathering and Delaware Gathering
systems, terminalling and marketing rate increases, as well as
continued strong throughput on joint venture pipelines. The
increase was partially offset by higher operating expenses driven
by the growth in operations.
Gathering and Processing Segment
Adjusted EBITDA in the fourth quarter 2023 was $53.3 million compared with $48.1 million in the fourth quarter 2022. The
increase was primarily due to higher throughput from Permian Basin
assets.
During the fourth quarter 2023, Delek Logistics recorded a
$14.8 million impairment charge
related to the Delaware Gathering reporting unit within the
gathering and processing segment. The impairment was primarily
driven by the significant increase in interest rates and timing
effect of system connections with producer customers. The
Partnership's long-term outlook of its Delaware Gathering system
remains unchanged.
Wholesale Marketing and Terminalling Segment
Adjusted EBITDA in the fourth quarter 2023 was $28.4 million, compared with fourth quarter 2022
Adjusted EBITDA of $23.3 million. The
increase was primarily due to higher terminalling utilization.
Storage and Transportation Segment
Adjusted EBITDA in the fourth quarter 2023 was $17.5 million, compared with $16.1 million in the fourth quarter 2022. The
increase was primarily due to increased storage and transportation
rates.
Investments in Pipeline Joint Ventures Segment
During the fourth quarter 2023, income from equity method
investments was $8.5 million compared
to $9.0 million in the fourth quarter
2022.
Corporate
Adjusted EBITDA in the fourth quarter 2023 was a loss of
$6.9 million compared to a loss of
$4.0 million in the fourth quarter
2022.
Capital Program
Delek Logistics Partners expects the 2024 Capital Program to be
approximately $70 million, with
approximately $20 million for
sustaining and regulatory projects and $50
million for growth projects. The 2024 Capital Program
compares with the 2023 Capital Program of $74 million, which includes $7 million of capital partially funded by
producers. Excluding these proceeds, 2023 capital expenditures were
$81 million.
2024 growth capital will be to advance new connections in both
the Midland and Delaware gathering
systems, enabling continued volume growth at the Partnership.
($
millions)
|
Total
|
Delek
Logistics
|
|
Growth
|
$
50
|
Sustaining &
Regulatory
|
20
|
2024 Capital
Program
|
$
70
|
|
|
Fourth Quarter 2023 Results | Conference Call
Information
Delek Logistics will hold a conference call to discuss its
fourth quarter 2023 results on Tuesday,
February 27, 2024 at 11:30 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. An archived
version of the replay will also be available at
www.DelekLogistics.com for 90 days.
About Delek Logistics Partners, LP
Delek Logistics is a midstream energy master limited partnership
headquartered in Brentwood,
Tennessee. Through its owned assets and joint ventures
located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the
Gulf Coast region, Delek Logistics provides gathering, pipeline and
other transportation services primarily for crude oil and natural
gas customers, storage, wholesale marketing and terminalling
services primarily for intermediate and refined product customers,
and water disposal and recycling services. Delek US Holdings, Inc.
("Delek US") owns the general partner interest as well as a
majority limited partner interest in Delek Logistics, and is also a
significant customer.
Safe Harbor Provisions Regarding Forward-Looking
Statements
This press release contains forward-looking statements that are
based upon current expectations and involve a number of risks and
uncertainties. Statements concerning current estimates,
expectations and projections about future results, performance,
prospects, opportunities, plans, actions and events and other
statements, concerns, or matters that are not historical facts are
"forward-looking statements," as that term is defined under the
federal securities laws. These statements contain words such
as "possible," "believe," "should," "could," "would," "predict,"
"plan," "estimate," "intend," "may," "anticipate," "will,"
"if," "expect" or similar expressions, as well as statements
in the future tense, and can be impacted by numerous factors,
including the fact that a significant portion of Delek Logistics'
revenue is derived from Delek US, thereby subjecting us to
Delek US' business risks; risks relating to the securities markets
generally; risks and costs relating to the age and operational
hazards of our assets including, without limitation, costs,
penalties, regulatory or legal actions and other effects related to
releases, spills and other hazards inherent in transporting and
storing crude oil and intermediate and finished petroleum products;
the impact of adverse market conditions affecting the utilization
of Delek Logistics' assets and business performance, including
margins generated by its wholesale fuel business; risks and
uncertainties related to the integration of the 3 Bear business
following the recent acquisition; uncertainties regarding future
decisions by OPEC regarding production and pricing disputes between
OPEC members and Russia; an
inability of Delek US to grow as expected as it relates to our
potential future growth opportunities, including dropdowns, and
other potential benefits; projected capital expenditures, scheduled
turnaround activity; the results of our investments in joint
ventures; adverse changes in laws including with respect to tax and
regulatory matters; and other risks as disclosed in our Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and other
reports and filings with the United States Securities and Exchange
Commission. Forward-looking statements include, but are not limited
to, statements regarding future growth at Delek Logistics;
distributions and the amounts and timing thereof; potential
dropdown inventory; projected benefits of the Delaware Gathering
acquisition; expected earnings or returns from joint ventures or
other acquisitions; expansion projects; ability to create long-term
value for our unit holders; financial flexibility and borrowing
capacity; and distribution growth. Forward-looking statements
should not be read as a guarantee of future performance or results
and will not be accurate indications of the times at, or by, which
such performance or results will be achieved. Forward-looking
information is based on information available at the time and/or
management's good faith belief with respect to future events, and
is subject to risks and uncertainties that could cause actual
performance or results to differ materially from those expressed in
the statements. Delek Logistics undertakes no obligation to
update or revise any such forward-looking statements to reflect
events or circumstances that occur, or which Delek Logistics
becomes aware of, after the date hereof, except as required by
applicable law or regulation.
Non-GAAP Disclosures:
Our management uses certain "non-GAAP" operational measures to
evaluate our operating segment performance and non-GAAP financial
measures to evaluate past performance and prospects for the future
to supplement our GAAP financial information presented in
accordance with U.S. GAAP. These financial and operational non-GAAP
measures are important factors in assessing our operating results
and profitability and include:
- Earnings before interest, taxes, depreciation and amortization
("EBITDA") - calculated as net income before net interest expense,
income tax expense, depreciation and amortization expense,
including amortization of customer contract intangible assets,
which is included as a component of net revenues in our
accompanying consolidated statements of income.
- Adjusted Earnings before interest, taxes, depreciation and
amortization ("Adjusted EBITDA") - EBITDA adjusted to exclude the
impairment of goodwill associated with our Delaware Gathering
reporting unit.
- 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.
- Distributable cash flow, as adjusted for transaction costs, or
Distributable cash flow, as adjusted - distributable cash flow
adjusted to exclude significant, infrequently occurring transaction
costs.
Our EBITDA, Adjusted EBITDA and distributable cash flow measures
are non GAAP supplemental financial measures that management and
external users of our consolidated financial statements, such as
industry analysts, investors, lenders and rating agencies, may use
to assess:
- Delek Logistics' operating performance as compared to other
publicly traded partnerships in the midstream energy industry,
without regard to historical cost basis or, in the case of EBITDA
and Adjusted EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to
make distributions to our unitholders on a current and on-going
basis;
- Delek Logistics' ability to incur and service debt and fund
capital expenditures; and
- the viability of acquisitions and other capital expenditure
projects and the returns on investment of various investment
opportunities.
We believe that the presentation of EBITDA, Adjusted EBITDA and
distributable cash flow measures provide information useful to
investors in assessing our financial condition and results of
operations and assists in evaluating our ongoing operating
performance for current and comparative periods. EBITDA,
Adjusted EBITDA and distributable cash flow should not be
considered alternatives to net income, operating income, cash flow
from operating activities or any other measure of financial
performance or liquidity presented in accordance with U.S.
GAAP. EBITDA, Adjusted EBITDA and distributable cash flow
have important limitations as analytical tools because they exclude
some, but not all, items that affect net income and net cash
provided by operating activities. Additionally, because EBITDA,
Adjusted EBITDA and distributable cash flow may be defined
differently by other partnerships in our industry, our definitions
of EBITDA, Adjusted EBITDA and distributable cash flow may not be
comparable to similarly titled measures of other partnerships,
thereby diminishing their utility. For a reconciliation of
EBITDA, Adjusted EBITDA and distributable cash flow to their most
directly comparable financial measures calculated and presented in
accordance with U.S. GAAP, please refer to "Results of Operations"
below. See the accompanying tables in this earnings release
for a reconciliation of these non-GAAP measures to the most
directly comparable GAAP measures.
Delek Logistics
Partners, LP
|
Consolidated Balance
Sheets (Unaudited)
|
(In thousands,
except unit data)
|
|
December 31,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
3,755
|
|
$
7,970
|
Accounts
receivable
|
41,131
|
|
53,314
|
Accounts receivable
from related parties
|
28,443
|
|
—
|
Inventory
|
2,264
|
|
1,483
|
Other current
assets
|
676
|
|
2,463
|
Total current
assets
|
76,269
|
|
65,230
|
Property, plant and
equipment:
|
|
|
|
Property, plant and
equipment
|
1,320,510
|
|
1,240,684
|
Less: accumulated
depreciation
|
(384,359)
|
|
(316,680)
|
Property, plant and
equipment, net
|
936,151
|
|
924,004
|
Equity method
investments
|
241,337
|
|
257,022
|
Customer relationship
intangible, net
|
181,336
|
|
199,440
|
Marketing contract
intangible, net
|
102,155
|
|
109,366
|
Rights-of-way,
net
|
59,536
|
|
55,990
|
Goodwill
|
12,203
|
|
27,051
|
Operating lease
right-of-use assets
|
19,043
|
|
24,788
|
Other non-current
assets
|
14,216
|
|
16,408
|
Total
assets
|
$
1,642,246
|
|
$
1,679,299
|
|
|
|
|
LIABILITIES AND
DEFICIT
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
26,290
|
|
$
57,403
|
Accounts payable to
related parties
|
—
|
|
6,055
|
Current portion of
long-term debt
|
30,000
|
|
15,000
|
Interest
payable
|
5,805
|
|
5,308
|
Excise and other taxes
payable
|
10,321
|
|
8,230
|
Current portion of
operating lease liabilities
|
6,697
|
|
8,020
|
Accrued expenses and
other current liabilities
|
11,477
|
|
6,202
|
Total current
liabilities
|
90,590
|
|
106,218
|
Non-current
liabilities:
|
|
|
|
Long-term debt, net of
current portion
|
1,673,789
|
|
1,646,567
|
Operating lease
liabilities, net of current portion
|
8,335
|
|
12,114
|
Asset retirement
obligations
|
10,038
|
|
9,333
|
Other non-current
liabilities
|
21,363
|
|
15,767
|
Total non-current
liabilities
|
1,713,525
|
|
1,683,781
|
Total
liabilities
|
1,804,115
|
|
1,789,999
|
Equity
(Deficit):
|
|
|
|
Common unitholders -
public; 9,299,763 units issued and outstanding at December 31, 2023
(9,257,305 at
December 31, 2022)
|
160,402
|
|
172,119
|
Common unitholders -
Delek Holdings; 34,311,278 units issued and outstanding at December
31, 2023
(34,311,278 at December 31, 2022)
|
(322,271)
|
|
(282,819)
|
Total
deficit
|
(161,869)
|
|
(110,700)
|
Total liabilities and
deficit
|
$
1,642,246
|
|
$
1,679,299
|
|
Delek Logistics
Partners, LP
|
Consolidated
Statement of Income and Comprehensive Income
(Unaudited)
|
(In thousands,
except unit and per unit data)
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliate
|
$
149,400
|
|
$
104,141
|
|
$
563,803
|
|
$
479,411
|
Third-party
|
104,749
|
|
164,910
|
|
456,606
|
|
556,996
|
Net revenues
|
254,149
|
|
269,051
|
|
1,020,409
|
|
1,036,407
|
Cost of
sales:
|
|
|
|
|
|
|
|
Cost of materials and
other - affiliate
|
98,071
|
|
121,855
|
|
396,333
|
|
496,184
|
Cost of materials and
other - third party
|
29,707
|
|
39,213
|
|
136,294
|
|
145,179
|
Operating expenses
(excluding depreciation and amortization presented
below)
|
30,380
|
|
22,546
|
|
115,682
|
|
85,438
|
Depreciation and
amortization
|
21,642
|
|
18,334
|
|
87,136
|
|
60,210
|
Total cost of
sales
|
179,800
|
|
201,948
|
|
735,445
|
|
787,011
|
Operating expenses
related to wholesale business (excluding depreciation and
amortization presented
below)
|
1,022
|
|
764
|
|
2,419
|
|
2,869
|
General and
administrative expenses
|
5,100
|
|
3,355
|
|
24,766
|
|
34,181
|
Depreciation and
amortization
|
1,325
|
|
1,357
|
|
5,248
|
|
2,778
|
Impairment of
goodwill
|
14,848
|
|
—
|
|
14,848
|
|
—
|
(Gain) loss on
disposal of assets
|
(462)
|
|
6
|
|
(1,266)
|
|
(114)
|
Total operating costs
and expenses
|
201,633
|
|
207,430
|
|
781,460
|
|
826,725
|
Operating
income
|
52,516
|
|
61,621
|
|
238,949
|
|
209,682
|
Interest expense,
net
|
38,663
|
|
28,683
|
|
143,244
|
|
82,304
|
Income from equity
method investments
|
(8,536)
|
|
(9,017)
|
|
(31,433)
|
|
(31,683)
|
Other income,
net
|
(279)
|
|
(334)
|
|
(303)
|
|
(373)
|
Total non-operating
expenses, net
|
29,848
|
|
19,332
|
|
111,508
|
|
50,248
|
Income before income
tax expense
|
22,668
|
|
42,289
|
|
127,441
|
|
159,434
|
Income tax expense
(benefit)
|
520
|
|
(411)
|
|
1,205
|
|
382
|
Net income attributable
to partners
|
$
22,148
|
|
$
42,700
|
|
$
126,236
|
|
$
159,052
|
Comprehensive income
attributable to partners
|
$
22,148
|
|
$
42,700
|
|
$
126,236
|
|
$
159,052
|
|
|
|
|
|
|
|
|
Net income per
limited partner unit:
|
|
|
|
|
|
|
|
Basic
|
$
0.51
|
|
$
0.98
|
|
$
2.90
|
|
$
3.66
|
Diluted
|
$
0.51
|
|
$
0.98
|
|
$
2.89
|
|
$
3.66
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
Basic
|
43,599,670
|
|
43,517,906
|
|
43,583,938
|
|
43,487,910
|
Diluted
|
43,625,012
|
|
43,540,645
|
|
43,611,314
|
|
43,511,650
|
Cash distribution per
common limited partner unit
|
$
1.055
|
|
$
1.020
|
|
$
4.160
|
|
$
3.975
|
|
Delek Logistics
Partners, LP
|
Condensed
Consolidated Statements of Cash Flows (In thousands)
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
(Unaudited)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
$
114,689
|
|
$
(105,314)
|
|
$
225,319
|
|
$
192,168
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
(33,995)
|
|
(65,350)
|
|
(89,629)
|
|
(770,437)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Net cash (used in)
provided by financing activities
|
(81,121)
|
|
163,689
|
|
(139,905)
|
|
581,947
|
Net (decrease)
increase in cash and cash equivalents
|
(427)
|
|
(6,975)
|
|
(4,215)
|
|
3,678
|
Cash and cash
equivalents at the beginning of the period
|
4,182
|
|
14,945
|
|
7,970
|
|
4,292
|
Cash and cash
equivalents at the end of the period
|
$
3,755
|
|
$
7,970
|
|
$
3,755
|
|
$
7,970
|
|
Delek Logistics
Partners, LP
|
Reconciliation
of Amounts Reported Under U.S. GAAP
(Unaudited)
|
(In
thousands)
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Reconciliation of
Net Income to EBITDA:
|
|
|
|
|
|
|
|
Net income
|
$
22,148
|
|
$
42,700
|
|
$
126,236
|
|
$
159,052
|
Add:
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
520
|
|
(411)
|
|
1,205
|
|
382
|
Depreciation and
amortization
|
22,967
|
|
19,691
|
|
92,384
|
|
62,988
|
Amortization of
marketing contract intangible
|
1,803
|
|
1,803
|
|
7,211
|
|
7,211
|
Interest expense,
net
|
38,663
|
|
28,683
|
|
143,244
|
|
82,304
|
EBITDA
|
$
86,101
|
|
$
92,466
|
|
$
370,280
|
|
$
311,937
|
Impairment of
goodwill
|
14,848
|
|
—
|
|
14,848
|
|
—
|
Adjusted
EBITDA
|
$
100,949
|
|
$
92,466
|
|
$
385,128
|
|
$
311,937
|
|
|
|
|
|
|
|
|
Reconciliation of
net cash from operating activities to distributable cash
flow:
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
$
114,689
|
|
$
(105,314)
|
|
$
225,319
|
|
$
192,168
|
Changes in assets and
liabilities
|
(51,894)
|
|
164,781
|
|
29,474
|
|
49,423
|
Non-cash lease
expense
|
(2,142)
|
|
(2,670)
|
|
(9,549)
|
|
(16,254)
|
Distributions from
equity method investments in investing activities
|
4,525
|
|
—
|
|
9,002
|
|
1,737
|
Regulatory and
sustaining capital expenditures not distributable
|
(1,348)
|
|
(6,501)
|
|
(7,272)
|
|
(9,684)
|
Reimbursement from
Delek Holdings for capital expenditures
|
338
|
|
1,171
|
|
1,280
|
|
1,176
|
Accretion of asset
retirement obligations
|
(176)
|
|
(181)
|
|
(705)
|
|
(596)
|
Deferred income
taxes
|
115
|
|
71
|
|
(638)
|
|
(5)
|
Gain (loss) on disposal
of assets
|
462
|
|
(6)
|
|
1,266
|
|
114
|
Distributable Cash
Flow
|
$
64,569
|
|
$
51,351
|
|
$
248,177
|
|
$
218,079
|
Transaction
costs
|
—
|
|
—
|
|
—
|
|
10,604
|
Distributable Cash
Flow, as adjusted
|
$
64,569
|
|
$
51,351
|
|
$
248,177
|
|
$
228,683
|
|
Delek Logistics
Partners, LP
|
Distributable
Coverage Ratio Calculation (Unaudited)
|
(In
thousands)
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Distributions to
partners of Delek Logistics, LP
|
$
46,010
|
|
$
44,440
|
|
$
181,344
|
|
$
172,933
|
|
|
|
|
|
|
|
|
Distributable cash
flow
|
$
64,569
|
|
$
51,351
|
|
$
248,177
|
|
$
218,079
|
Distributable cash flow
coverage ratio (1)
|
1.40x
|
|
1.16x
|
|
1.37x
|
|
1.26x
|
Distributable cash
flow, as adjusted (2)
|
64,569
|
|
51,351
|
|
248,177
|
|
228,683
|
Distributable cash flow
coverage ratio, as adjusted (3)
|
1.40x
|
|
1.16x
|
|
1.37x
|
|
1.32x
|
|
|
(1)
|
Distributable cash flow
coverage ratio is calculated by dividing distributable cash flow by
distributions to be paid in each respective period.
|
(2)
|
Distributable cash flow
adjusted to exclude transaction costs associated with the Delaware
Gathering Acquisition (formerly 3 Bear).
|
(3)
|
Distributable cash flow
coverage ratio, as adjusted is calculated by dividing distributable
cash flow, as adjusted for transaction costs by distributions to be
paid in each respective period.
|
|
Delek Logistics
Partners, LP
Segment Data
(Unaudited)
(In
thousands)
|
|
|
|
Three Months Ended
December 31, 2023
|
|
|
Gathering and
Processing
|
|
Wholesale
Marketing and
Terminalling
|
|
Storage and
Transportation
|
|
Investments in
Pipeline Joint
Ventures
|
|
Corporate and
Other
|
|
Consolidated
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate
|
|
$
55,175
|
|
$
62,560
|
|
$
31,665
|
|
$
—
|
|
$
—
|
|
$
149,400
|
Third party
|
|
35,441
|
|
64,895
|
|
4,413
|
|
—
|
|
—
|
|
104,749
|
Total
revenue
|
|
$
90,616
|
|
$
127,455
|
|
$
36,078
|
|
$
—
|
|
$
—
|
|
$
254,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA
|
|
$
38,449
|
|
$
28,441
|
|
$
17,534
|
|
$
8,535
|
|
$
(6,858)
|
|
$
86,101
|
Depreciation and
amortization
|
|
17,670
|
|
1,717
|
|
2,730
|
|
—
|
|
850
|
|
22,967
|
Amortization of
customer contract intangible
|
|
—
|
|
1,803
|
|
—
|
|
—
|
|
—
|
|
1,803
|
Interest expense,
net
|
|
—
|
|
—
|
|
—
|
|
—
|
|
38,663
|
|
38,663
|
Income tax
expense
|
|
|
|
|
|
|
|
|
|
|
|
520
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
$
22,148
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
spending
|
|
$
12,515
|
|
$
(416)
|
|
$
615
|
|
$
—
|
|
$
—
|
|
$
12,714
|
|
|
|
Three Months Ended
December 31, 2023
|
|
|
Gathering and
Processing
|
|
Wholesale
Marketing and
Terminalling
|
|
Storage and
Transportation
|
|
Investments in
Pipeline Joint
Ventures
|
|
Corporate and
Other
|
|
Consolidated
|
Segment
EBITDA
|
|
$
38,449
|
|
$
28,441
|
|
$
17,534
|
|
$
8,535
|
|
$
(6,858)
|
|
$
86,101
|
Impairment of
goodwill
|
|
14,848
|
|
—
|
|
—
|
|
—
|
|
—
|
|
14,848
|
Segment Adjusted
EBITDA
|
|
$
53,297
|
|
$
28,441
|
|
$
17,534
|
|
$
8,535
|
|
$
(6,858)
|
|
$
100,949
|
|
|
|
Three Months Ended
December 31, 2022
|
|
|
Gathering and
Processing
|
|
Wholesale
Marketing and
Terminalling
|
|
Storage and
Transportation
|
|
Investments in
Pipeline Joint
Ventures
|
|
Corporate and
Other
|
|
Consolidated
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate
|
|
$
51,530
|
|
$
29,080
|
|
$
23,531
|
|
$
—
|
|
$
—
|
|
$
104,141
|
Third party
|
|
38,417
|
|
115,623
|
|
10,870
|
|
—
|
|
—
|
|
164,910
|
Total
revenue
|
|
$
89,947
|
|
$
144,703
|
|
$
34,401
|
|
$
—
|
|
$
—
|
|
$
269,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA
|
|
$
48,121
|
|
$
23,285
|
|
$
16,057
|
|
$
9,017
|
|
$
(4,014)
|
|
$
92,466
|
Depreciation and
amortization
|
|
14,946
|
|
1,634
|
|
2,228
|
|
—
|
|
883
|
|
19,691
|
Amortization of
customer contract intangible
|
|
—
|
|
1,803
|
|
—
|
|
—
|
|
—
|
|
1,803
|
Interest expense,
net
|
|
—
|
|
—
|
|
—
|
|
—
|
|
28,683
|
|
28,683
|
Income tax
benefit
|
|
|
|
|
|
|
|
|
|
|
|
(411)
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
$
42,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
spending
|
|
$
56,206
|
|
$
157
|
|
$
6,528
|
|
$
—
|
|
$
—
|
|
$
62,891
|
|
|
|
Year Ended December
31, 2023
|
|
|
Gathering and
Processing
|
|
Wholesale
Marketing and
Terminalling
|
|
Storage and
Transportation
|
|
Investments in
Pipeline Joint
Ventures
|
|
Corporate and
Other
|
|
Consolidated
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate
|
|
$
212,537
|
|
$
218,997
|
|
$
132,269
|
|
$
—
|
|
$
—
|
|
$
563,803
|
Third party
|
|
158,573
|
|
286,704
|
|
11,329
|
|
—
|
|
—
|
|
456,606
|
Total
revenue
|
|
$
371,110
|
|
$
505,701
|
|
$
143,598
|
|
$
—
|
|
$
—
|
|
$ 1,020,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA
|
|
$
199,463
|
|
$
106,512
|
|
$
63,850
|
|
$
31,424
|
|
$
(30,969)
|
|
$
370,280
|
Depreciation and
amortization
|
|
72,181
|
|
7,055
|
|
9,839
|
|
—
|
|
3,309
|
|
92,384
|
Amortization of
customer contract intangible
|
|
—
|
|
7,211
|
|
—
|
|
—
|
|
—
|
|
7,211
|
Interest expense,
net
|
|
—
|
|
—
|
|
—
|
|
—
|
|
143,244
|
|
143,244
|
Income tax
expense
|
|
|
|
|
|
|
|
|
|
|
|
1,205
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
$
126,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
spending
|
|
$
74,683
|
|
$
2,111
|
|
$
4,548
|
|
$
—
|
|
$
—
|
|
$
81,342
|
|
|
|
Year Ended December
31, 2023
|
|
|
Gathering and
Processing
|
|
Wholesale
Marketing and
Terminalling
|
|
Storage and
Transportation
|
|
Investments in
Pipeline Joint
Ventures
|
|
Corporate and
Other
|
|
Consolidated
|
Segment
EBITDA
|
|
$
199,463
|
|
$
106,512
|
|
$
63,850
|
|
$
31,424
|
|
$
(30,969)
|
|
$
370,280
|
Impairment of
goodwill
|
|
14,848
|
|
—
|
|
—
|
|
—
|
|
—
|
|
14,848
|
Segment Adjusted
EBITDA
|
|
$
214,311
|
|
$
106,512
|
|
$
63,850
|
|
$
31,424
|
|
$
(30,969)
|
|
$
385,128
|
|
|
|
Year Ended December
31, 2022
|
|
|
Gathering and
Processing
|
|
Wholesale
Marketing and
Terminalling
|
|
Storage and
Transportation
|
|
Investments in
Pipeline Joint
Ventures
|
|
Corporate and
Other
|
|
Consolidated
|
Net
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate
|
|
$
185,845
|
|
$
173,084
|
|
$
120,482
|
|
$
—
|
|
$
—
|
|
$
479,411
|
Third party
|
|
119,582
|
|
415,800
|
|
21,614
|
|
—
|
|
—
|
|
556,996
|
Total
revenue
|
|
$
305,427
|
|
$
588,884
|
|
$
142,096
|
|
$
—
|
|
$
—
|
|
$ 1,036,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
EBITDA
|
|
$
175,250
|
|
$
83,098
|
|
$
56,269
|
|
$
31,683
|
|
$
(34,363)
|
|
$
311,937
|
Depreciation and
amortization
|
|
47,206
|
|
6,308
|
|
8,591
|
|
—
|
|
883
|
|
62,988
|
Amortization of
customer contract intangible
|
|
—
|
|
7,211
|
|
—
|
|
—
|
|
—
|
|
7,211
|
Interest expense,
net
|
|
—
|
|
—
|
|
—
|
|
—
|
|
82,304
|
|
82,304
|
Income tax
expense
|
|
|
|
|
|
|
|
|
|
|
|
382
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
$
159,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
spending
|
|
$
122,594
|
|
$
1,548
|
|
$
6,528
|
|
$
—
|
|
$
—
|
|
$
130,670
|
Delek Logistics
Partners, LP
|
Segment Capital
Spending
|
(In
thousands)
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
Gathering and
Processing
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Regulatory capital
spending
|
$
—
|
|
$
163
|
|
$
31
|
|
$
2,855
|
Sustaining capital
spending
|
1,036
|
|
1,103
|
|
2,016
|
|
1,455
|
Growth capital
spending
|
11,479
|
|
54,940
|
|
72,636
|
|
118,284
|
Segment capital
spending
|
$
12,515
|
|
$
56,206
|
|
$
74,683
|
|
$
122,594
|
Wholesale Marketing
and Terminalling
|
|
|
|
|
|
|
|
Regulatory capital
spending
|
$
553
|
|
$
—
|
|
924
|
|
156
|
Sustaining capital
spending
|
(591)
|
|
5
|
|
163
|
|
24
|
Growth capital
spending
|
(378)
|
|
152
|
|
1,024
|
|
1,368
|
Segment capital
spending
|
$
(416)
|
|
$
157
|
|
$
2,111
|
|
$
1,548
|
Storage and
Transportation
|
|
|
|
|
|
|
|
Regulatory capital
spending
|
$
335
|
|
$
—
|
|
$
2,005
|
|
$
—
|
Sustaining capital
spending
|
280
|
|
6,528
|
|
2,543
|
|
6,528
|
Growth capital
spending
|
—
|
|
—
|
|
$
—
|
|
$
—
|
Segment capital
spending
|
$
615
|
|
$
6,528
|
|
$
4,548
|
|
$
6,528
|
Consolidated
|
|
|
|
|
|
|
|
Regulatory capital
spending
|
$
888
|
|
$
163
|
|
$
2,960
|
|
$
3,011
|
Sustaining capital
spending
|
725
|
|
7,636
|
|
4,722
|
|
8,007
|
Growth capital
spending
|
11,101
|
|
55,092
|
|
73,660
|
|
119,652
|
Total capital
spending
|
$
12,714
|
|
$
62,891
|
|
$
81,342
|
|
$
130,670
|
|
Delek Logistics
Partners, LP
|
|
|
|
|
Segment Operating
Data (Unaudited)
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Gathering and
Processing Segment:
|
|
|
|
|
|
|
|
Throughputs (average
bpd)
|
|
|
|
|
|
|
|
El Dorado
Assets:
|
|
|
|
|
|
|
|
Crude pipelines (non-gathered)
|
73,438
|
|
68,798
|
|
67,003
|
|
78,519
|
Refined products pipelines to Enterprise Systems
|
68,552
|
|
35,585
|
|
58,181
|
|
56,382
|
El Dorado Gathering
System
|
13,329
|
|
13,136
|
|
13,782
|
|
15,391
|
East Texas Crude
Logistics System
|
40,798
|
|
25,154
|
|
32,668
|
|
21,310
|
Midland Gathering
System (1)
|
229,179
|
|
191,119
|
|
230,471
|
|
128,725
|
Plains Connection
System
|
254,224
|
|
234,164
|
|
250,140
|
|
183,827
|
Delaware Gathering
Assets (2):
|
|
|
|
|
|
|
|
Natural Gas Gathering
and Processing (Mcfd(3))
|
67,292
|
|
60,669
|
|
71,239
|
|
60,971
|
Crude Oil Gathering
(average bpd)
|
112,522
|
|
91,526
|
|
111,335
|
|
87,519
|
Water Disposal and
Recycling (average bpd)
|
94,686
|
|
80,028
|
|
102,340
|
|
72,056
|
|
|
|
|
|
|
|
|
Wholesale Marketing
and Terminalling Segment:
|
|
|
|
|
|
|
|
East Texas - Tyler
Refinery sales volumes (average bpd) (4)
|
68,735
|
|
64,825
|
|
60,626
|
|
66,058
|
Big Spring marketing
throughputs (average bpd)
|
76,408
|
|
74,238
|
|
77,897
|
|
71,580
|
West Texas marketing
throughputs (average bpd)
|
10,511
|
|
10,835
|
|
10,032
|
|
10,206
|
West Texas gross margin
per barrel
|
$
4.73
|
|
$
5.64
|
|
$
5.18
|
|
$
4.45
|
Terminalling
throughputs (average bpd) (5)
|
105,933
|
|
127,277
|
|
113,803
|
|
132,262
|
|
|
(1)
|
Formerly known as the
Permian Gathering Assets.
|
(2)
|
Volumes for the year
ended December 31, 2022 are for the period from June 1 through
December 31, 2022, for which we owned the Delaware Gathering
Assets.
|
(3)
|
Mcfd - average thousand
cubic feet per day.
|
(4)
|
Excludes jet fuel and
petroleum coke.
|
(5)
|
Consists of
terminalling throughputs at our Tyler, Big Spring, Big Sandy and
Mount Pleasant, Texas, El Dorado and North Little Rock, Arkansas
and Memphis and Nashville, Tennessee terminals.
|
|
Information about Delek Logistics Partners, LP can be found on
its website (www.deleklogistics.com), investor relations webpage
(https://www.deleklogistics.com/investor-relations), news webpage
(https://www.deleklogistics.com/news-releases) and its Twitter
account (@DelekLogistics).
View original content to download
multimedia:https://www.prnewswire.com/news-releases/delek-logistics-reports-fourth-quarter-2023-results-and-2024-capital-program-302071923.html
SOURCE Delek Logistics Partners, LP