BRENTWOOD, Tenn., Aug. 3, 2021 /PRNewswire/ -- Delek
Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today
announced its financial results for the second quarter 2021. For
the three months ended June 30, 2021,
Delek Logistics reported net income attributable to all partners of
$43.2 million, or $1.00 per diluted common limited partner unit.
This compares to net income attributable to all partners of
$44.4 million, or $1.18 per diluted common limited partner unit, in
the second quarter 2020. Net cash from operating activities was
$85.8 million in the second quarter
2021 compared to $37.5 million in the
second quarter 2020. Distributable cash flow was $53.8 million in the second quarter 2021,
compared to $57.0 million in the
second quarter 2020.
For the second quarter 2021, earnings before interest, taxes,
depreciation and amortization ("EBITDA") was $66.8 million compared to $64.8 million in the second quarter
2020.
Uzi Yemin, Chairman, President
and Chief Executive Officer of Delek Logistics' general partner,
remarked: "Second quarter results improved sequentially based on
the absence of Winter Storm Uri
impacts and Paline pipeline maintenance both of which had
unfavorable impacts on the first quarter results. Major planned
turnaround activity for the year at Delek US is now complete,
paving the way for strong utilization of DKL owned
infrastructure."
Mr. Yemin continued, "Distribution growth in the quarter was
4.4% on a year-over-year basis and we remain committed to 5%
distribution growth on a full-year basis. Our leverage and coverage
ratios remain healthy providing flexibility to capitalize on growth
opportunities. During the quarter, we successfully raised
$400 million through a senior notes
offering. This offering increases balance sheet flexibility and
extends our debt maturities. DKL continues to perform well
operationally and is well positioned for the future."
Distribution and Liquidity
On July 26, 2021, Delek Logistics declared a quarterly cash
distribution of $0.94 per common
limited partner unit for the second quarter 2021, which equates to
$3.76 per common limited partner unit
on an annualized basis. This distribution will be paid on
August 11, 2021 to unitholders of record on August 5,
2021. This represents a 2.2% increase from the first quarter 2021
distribution of $0.92 per common
limited partner unit, or $3.68 per
common limited partner unit on an annualized basis, and a 4.4%
increase over Delek Logistics' second quarter 2020 distribution of
$0.90 per common limited partner
unit, or $3.60 per common limited
partner unit annualized. For the second quarter 2021, the total
cash distribution declared to all partners was approximately
$40.8 million, resulting in a
distributable cash flow coverage ratio of 1.32x.
As of June 30, 2021, Delek
Logistics had total debt of approximately $928.7 million and cash of $2.2 million. Additional borrowing capacity,
subject to certain covenants, under the $850.0 million credit facility was $561.2 million, which was enhanced by the recent
notes offering. The total leverage ratio was within the
requirements of the maximum allowable leverage ratio under the
credit facility.
Financial Results
Contribution margin in the second quarter 2021 was $64.3 million compared to $61.3 million in the second quarter 2020. Higher
refinery utilization, increased demand, contribution from the
trucking asset dropdown and a lack of pipeline maintenance resulted
in improved year-over-year performance in our assets.
Pipelines and Transportation Segment
Contribution margin in the second quarter 2021 was $45.2 million compared to $42.5 million in the second quarter 2020. This
increase was primarily attributable to the higher utilization at
the refineries, drop-down of the trucking assets (dropped on
May 1st, 2020) and improved Paline
pipeline performance.
Wholesale Marketing and Terminalling Segment
During the second quarter 2021, contribution margin was
$19.1 million compared to
$18.8 million in the second quarter
2020. This increase was primarily due to improved volumes and a
higher gross margin in our West
Texas wholesale business.
1
Second Quarter 2021 Results | Conference Call
Information
Delek Logistics will hold a conference call to discuss its
second quarter 2021 results on Wednesday,
August 4, 2021 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. 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) second
quarter 2021 earnings conference call on Wednesday, August 4, 2021 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; the impact of the COVID-19 outbreak on the demand for
crude oil, refined products and transportation and storage
services; 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;
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; 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 5% 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 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.
2
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.
3
Delek Logistics
Partners, LP
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(In thousands,
except unit and per unit data)
|
|
|
June 30,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,173
|
|
|
$
|
4,243
|
|
Accounts
receivable
|
|
18,065
|
|
|
15,676
|
|
Accounts receivable
from related parties
|
|
—
|
|
|
5,932
|
|
Inventory
|
|
1,988
|
|
|
3,127
|
|
Other current
assets
|
|
900
|
|
|
331
|
|
Total current
assets
|
|
23,126
|
|
|
29,309
|
|
Property, plant and
equipment:
|
|
|
|
|
Property, plant and
equipment
|
|
701,823
|
|
|
692,282
|
|
Less: accumulated
depreciation
|
|
(247,072)
|
|
|
(227,470)
|
|
Property, plant and
equipment, net
|
|
454,751
|
|
|
464,812
|
|
Equity method
investments
|
|
252,048
|
|
|
253,675
|
|
Operating lease
right-of-use assets
|
|
25,051
|
|
|
24,199
|
|
Goodwill
|
|
12,203
|
|
|
12,203
|
|
Marketing contract
intangible, net
|
|
120,182
|
|
|
123,788
|
|
Rights-of-way
|
|
36,991
|
|
|
36,316
|
|
Other non-current
assets
|
|
11,124
|
|
|
12,115
|
|
Total
assets
|
|
$
|
935,476
|
|
|
$
|
956,417
|
|
|
|
|
|
|
LIABILITIES AND
DEFICIT
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
4,836
|
|
|
$
|
6,659
|
|
Accounts payable to
related parties
|
|
36,847
|
|
|
—
|
|
Interest
payable
|
|
5,441
|
|
|
2,452
|
|
Excise and other taxes
payable
|
|
4,560
|
|
|
4,969
|
|
Current portion of
operating lease liabilities
|
|
8,014
|
|
|
8,691
|
|
Accrued expenses and
other current liabilities
|
|
7,829
|
|
|
5,529
|
|
Total current
liabilities
|
|
67,527
|
|
|
28,300
|
|
Non-current
liabilities:
|
|
|
|
|
Long-term
debt
|
|
928,728
|
|
|
992,291
|
|
Asset retirement
obligations
|
|
6,245
|
|
|
6,015
|
|
Operating lease
liabilities, net of current portion
|
|
16,976
|
|
|
15,418
|
|
Other non-current
liabilities
|
|
23,847
|
|
|
22,694
|
|
Total non-current
liabilities
|
|
975,796
|
|
|
1,036,418
|
|
Total
liabilities
|
|
1,043,323
|
|
|
1,064,718
|
|
Equity
(Deficit):
|
|
|
|
|
Common unitholders -
public; 8,707,565 units issued and outstanding at June 30, 2021
(8,697,468 at December
31, 2020)
|
|
164,678
|
|
|
164,614
|
|
Common unitholders -
Delek Holdings; 34,745,868 units issued and outstanding at June 30,
2021 (34,745,868 at
December 31, 2020)
|
|
(272,525)
|
|
|
(272,915)
|
|
Total
deficit
|
|
(107,847)
|
|
|
(108,301)
|
|
Total liabilities and
deficit
|
|
$
|
935,476
|
|
|
$
|
956,417
|
|
4
Delek Logistics
Partners, LP
|
Condensed
Consolidated Statements of Income (Unaudited)
|
(In thousands,
except unit and per unit data)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliate
|
$
|
88,722
|
|
|
$
|
87,629
|
|
|
$
|
184,916
|
|
|
$
|
194,328
|
|
Third-party
|
79,756
|
|
|
30,008
|
|
|
136,475
|
|
|
86,710
|
|
Net
revenues
|
168,478
|
|
|
117,637
|
|
|
321,391
|
|
|
281,038
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
Cost of materials and
other
|
88,695
|
|
|
43,892
|
|
|
169,866
|
|
|
145,185
|
|
Operating expenses
(excluding depreciation and amortization presented
below)
|
14,876
|
|
|
11,623
|
|
|
28,371
|
|
|
25,577
|
|
Depreciation and
amortization
|
9,480
|
|
|
8,223
|
|
|
19,727
|
|
|
14,026
|
|
Total cost of
sales
|
113,051
|
|
|
63,738
|
|
|
217,964
|
|
|
184,788
|
|
Operating expenses
related to wholesale business (excluding depreciation and
amortization presented below)
|
605
|
|
|
826
|
|
|
1,166
|
|
|
1,616
|
|
General and
administrative expenses
|
6,077
|
|
|
4,721
|
|
|
10,937
|
|
|
10,851
|
|
Depreciation and
amortization
|
487
|
|
|
471
|
|
|
979
|
|
|
967
|
|
Other operating
income, net
|
(136)
|
|
|
—
|
|
|
(219)
|
|
|
(107)
|
|
Total operating costs
and expenses
|
120,084
|
|
|
69,756
|
|
|
230,827
|
|
|
198,115
|
|
Operating
income
|
48,394
|
|
|
47,881
|
|
|
90,564
|
|
|
82,923
|
|
Interest expense,
net
|
11,658
|
|
|
10,670
|
|
|
21,395
|
|
|
22,494
|
|
Income from equity
method investments
|
(6,642)
|
|
|
(6,462)
|
|
|
(10,691)
|
|
|
(12,015)
|
|
Other expense,
net
|
(34)
|
|
|
(2)
|
|
|
(3)
|
|
|
(2)
|
|
Total non-operating
expenses, net
|
4,982
|
|
|
4,206
|
|
|
10,701
|
|
|
10,477
|
|
Income before income
tax expense (benefit)
|
43,412
|
|
|
43,675
|
|
|
79,863
|
|
|
72,446
|
|
Income tax expense
(benefit)
|
166
|
|
|
(740)
|
|
|
350
|
|
|
235
|
|
Net income
attributable to partners
|
$
|
43,246
|
|
|
$
|
44,415
|
|
|
$
|
79,513
|
|
|
$
|
72,211
|
|
Comprehensive income
attributable to partners
|
$
|
43,246
|
|
|
$
|
44,415
|
|
|
$
|
79,513
|
|
|
$
|
72,211
|
|
|
|
|
|
|
|
|
|
Less: General
partner's interest in net income, including incentive distribution
rights
|
—
|
|
|
9,647
|
|
|
—
|
|
|
18,724
|
|
Limited partners'
interest in net income
|
$
|
43,246
|
|
|
$
|
34,768
|
|
|
$
|
79,513
|
|
|
$
|
53,487
|
|
|
|
|
|
|
|
|
|
Net income per
limited partner unit:
|
|
|
|
|
|
|
|
Common units -
basic
|
$
|
1.00
|
|
|
$
|
1.18
|
|
|
$
|
1.83
|
|
|
$
|
1.98
|
|
Common units -
diluted
|
$
|
1.00
|
|
|
$
|
1.18
|
|
|
$
|
1.83
|
|
|
$
|
1.98
|
|
|
|
|
|
|
|
|
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
Common units -
basic
|
43,445,222
|
|
|
29,427,298
|
|
|
43,444,284
|
|
|
26,953,934
|
|
Common units -
diluted
|
43,460,366
|
|
|
29,430,555
|
|
|
43,453,806
|
|
|
26,956,523
|
|
|
|
|
|
|
|
|
|
Cash distribution per
limited partner unit
|
$
|
0.940
|
|
|
$
|
0.900
|
|
|
$
|
1.860
|
|
|
$
|
1.790
|
|
5
Delek Logistics
Partners, LP
|
Condensed
Consolidated Statements of Cash Flows (Unaudited) (In
thousands)
|
|
|
Six Months Ended
June 30,
|
|
|
2021
|
|
2020
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
|
$
|
79,513
|
|
|
$
|
72,211
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
20,706
|
|
|
14,993
|
|
Non-cash lease
expense
|
|
4,507
|
|
|
640
|
|
Amortization of
customer contract intangible assets
|
|
3,606
|
|
|
3,605
|
|
Amortization of
deferred revenue
|
|
(911)
|
|
|
(945)
|
|
Amortization of
deferred financing costs and debt discount
|
|
1,325
|
|
|
1,172
|
|
Income from equity
method investments
|
|
(10,691)
|
|
|
(12,015)
|
|
Dividends from equity
method investments
|
|
8,311
|
|
|
12,500
|
|
Other non-cash
adjustments
|
|
453
|
|
|
1,218
|
|
Changes in assets and
liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(2,389)
|
|
|
(2,703)
|
|
Inventories and other
current assets
|
|
524
|
|
|
12,182
|
|
Accounts payable and
other current liabilities
|
|
295
|
|
|
(11,890)
|
|
Accounts
receivable/payable to related parties
|
|
39,756
|
|
|
(17,653)
|
|
Non-current assets and
liabilities, net
|
|
2,519
|
|
|
(934)
|
|
Changes in assets and
liabilities
|
|
40,705
|
|
|
(20,998)
|
|
Net cash provided by
operating activities
|
|
147,524
|
|
|
72,381
|
|
Cash flows from
investing activities
|
|
|
|
|
Asset acquisitions
from Delek Holdings, net of assumed liabilities
|
|
—
|
|
|
(100,527)
|
|
Purchases of
property, plant and equipment
|
|
(8,762)
|
|
|
(4,997)
|
|
Proceeds from sales
of property, plant and equipment
|
|
219
|
|
|
107
|
|
Purchases of
intangible assets
|
|
(675)
|
|
|
—
|
|
Distributions from
equity method investments
|
|
5,400
|
|
|
1,690
|
|
Equity method
investment contributions
|
|
(1,393)
|
|
|
(10,515)
|
|
Net cash used in
investing activities
|
|
(5,211)
|
|
|
(114,242)
|
|
Cash flows from
financing activities
|
|
|
|
|
Proceeds from
issuance of additional units to maintain 2% General Partner
interest
|
|
—
|
|
|
10
|
|
Distributions to
general partner
|
|
—
|
|
|
(18,156)
|
|
Distributions to
common unitholders - public
|
|
(15,916)
|
|
|
(15,835)
|
|
Distributions to
common unitholders - Delek Holdings
|
|
(63,585)
|
|
|
(27,549)
|
|
Distributions to
Delek Holdings unitholders and general partner related to Trucking
Assets Acquisition
|
|
—
|
|
|
(47,558)
|
|
Proceeds from
revolving credit facility
|
|
148,300
|
|
|
413,000
|
|
Payments on revolving
credit facility
|
|
(606,100)
|
|
|
(251,400)
|
|
Proceeds from
issuance of senior notes
|
|
400,000
|
|
|
—
|
|
Deferred financing
costs paid in connection with debt issuances
|
|
(6,326)
|
|
|
—
|
|
Payments on finance
lease
|
|
(756)
|
|
|
—
|
|
Net cash (used in)
provided by financing activities
|
|
(144,383)
|
|
|
52,512
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(2,070)
|
|
|
10,651
|
|
Cash and cash
equivalents at the beginning of the period
|
|
4,243
|
|
|
5,545
|
|
Cash and cash
equivalents at the end of the period
|
|
$
|
2,173
|
|
|
$
|
16,196
|
|
Supplemental
disclosures of cash flow information:
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
Interest
|
|
$
|
17,081
|
|
|
$
|
21,298
|
|
Non-cash investing
activities:
|
|
|
|
|
Increase (decrease) in
accrued capital expenditures
|
|
$
|
1,557
|
|
|
$
|
(1,317)
|
|
Equity issuance to
Delek Holdings unitholders in connection with Big Spring Gathering
Assets Acquisition
|
|
$
|
—
|
|
|
$
|
109,514
|
|
Non-cash financing
activities:
|
|
|
|
|
Non-cash lease
liability arising from obtaining right of use assets during the
period
|
|
$
|
5,572
|
|
|
$
|
15,779
|
|
6
Delek Logistics
Partners, LP
|
Reconciliation
of Amounts Reported Under U.S. GAAP
|
(In
thousands)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Reconciliation of
Net Income to EBITDA:
|
|
|
|
|
|
|
|
Net income
|
$
|
43,246
|
|
|
$
|
44,415
|
|
|
$
|
79,513
|
|
|
$
|
72,211
|
|
Add:
|
|
|
|
|
|
|
|
Income tax
expense
|
166
|
|
|
(740)
|
|
|
350
|
|
|
235
|
|
Depreciation and
amortization
|
9,967
|
|
|
8,694
|
|
|
20,706
|
|
|
14,993
|
|
Amortization of
customer contract intangible assets
|
1,803
|
|
|
1,803
|
|
|
3,606
|
|
|
3,605
|
|
Interest expense,
net
|
11,658
|
|
|
10,670
|
|
|
21,395
|
|
|
22,494
|
|
EBITDA
|
$
|
66,840
|
|
|
$
|
64,842
|
|
|
$
|
125,570
|
|
|
$
|
113,538
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net cash from operating activities to distributable cash
flow:
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
|
85,792
|
|
|
$
|
37,545
|
|
|
$
|
147,524
|
|
|
$
|
72,381
|
|
Changes in assets and
liabilities
|
(29,842)
|
|
|
19,344
|
|
|
(40,705)
|
|
|
20,998
|
|
Non-cash lease
expense
|
(2,489)
|
|
|
(366)
|
|
|
(4,507)
|
|
|
(640)
|
|
Distributions from
equity method investments in investing activities
|
1,476
|
|
|
1,580
|
|
|
5,400
|
|
|
1,690
|
|
Maintenance and
regulatory capital expenditures
|
(1,133)
|
|
|
(98)
|
|
|
(2,862)
|
|
|
(726)
|
|
Reimbursement from
Delek Holdings for capital expenditures
|
4
|
|
|
16
|
|
|
1,577
|
|
|
55
|
|
Accretion of asset
retirement obligations
|
(115)
|
|
|
(107)
|
|
|
(230)
|
|
|
(214)
|
|
Deferred income
taxes
|
—
|
|
|
(943)
|
|
|
(65)
|
|
|
(943)
|
|
Other operating
income, net
|
136
|
|
|
—
|
|
|
219
|
|
|
107
|
|
Distributable Cash
Flow
|
$
|
53,829
|
|
|
$
|
56,971
|
|
|
$
|
106,351
|
|
|
$
|
92,708
|
|
|
|
|
Delek Logistics
Partners, LP
|
Distributable
Coverage Ratio Calculation
|
(In
thousands)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
Distributions to
partners of Delek Logistics, LP
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Limited partners'
distribution on common units
|
$
|
40,846
|
|
|
$
|
26,490
|
|
|
$
|
80,814
|
|
|
$
|
48,229
|
|
General partner's
distributions
|
—
|
|
|
542
|
|
|
—
|
|
|
986
|
|
General partner's
incentive distribution rights
|
—
|
|
|
8,937
|
|
|
—
|
|
|
17,632
|
|
Total distributions
to be paid (1)
|
$
|
40,846
|
|
|
$
|
35,969
|
|
|
$
|
80,814
|
|
|
$
|
66,847
|
|
|
|
|
|
|
|
|
|
Distributable cash
flow
|
$
|
53,829
|
|
|
$
|
56,971
|
|
|
$
|
106,351
|
|
|
$
|
92,708
|
|
Distributable cash
flow coverage ratio (2)
|
1.32x
|
|
1.58x
|
|
1.32x
|
|
1.39x
|
(1)
|
The distributions for
the three and six months ended June 30, 2020 reflect the impact of
the distribution waiver that waived all of the distributions for
the first quarter of 2020 on the 5.0 million Additional Units,
related to the Big Spring Gathering Assets transaction, with
respect to base distributions and the IDRs. In addition, the
distributions for the three months ended March 31, 2020 reflect the
waiver of distributions in respect of the IDRs associated with the
Additional Units for at least two years. Subsequently, the IDRs
were eliminated in the Restructuring Transaction on August 13,
2020.
|
(2)
|
Distributable cash
flow coverage ratio is calculated by dividing distributable cash
flow by distributions to be paid in each respective
period.
|
|
7
Delek Logistics
Partners, LP
|
Segment Data
(unaudited)
|
(In
thousands)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Pipelines and
Transportation
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliate
|
$
|
65,664
|
|
|
$
|
61,394
|
|
|
$
|
128,712
|
|
|
$
|
99,897
|
|
Third party
|
4,771
|
|
|
2,032
|
|
|
6,698
|
|
|
11,496
|
|
Total pipelines and
transportation
|
70,435
|
|
|
63,426
|
|
|
135,410
|
|
|
111,393
|
|
Cost of sales:
|
|
|
|
|
|
|
|
Cost of materials and
other
|
14,346
|
|
|
11,182
|
|
|
27,425
|
|
|
17,280
|
|
Operating expenses
(excluding depreciation and amortization)
|
10,858
|
|
|
9,731
|
|
|
21,030
|
|
|
21,187
|
|
Segment contribution
margin
|
$
|
45,231
|
|
|
$
|
42,513
|
|
|
$
|
86,955
|
|
|
$
|
72,926
|
|
Capital
spending
|
$
|
1,531
|
|
|
$
|
417
|
|
|
$
|
7,376
|
|
|
$
|
863
|
|
|
|
|
|
|
|
|
|
Wholesale Marketing
and Terminalling
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliates (1)
|
$
|
23,058
|
|
|
$
|
26,235
|
|
|
$
|
56,204
|
|
|
$
|
94,431
|
|
Third party
|
74,985
|
|
|
27,976
|
|
|
129,777
|
|
|
75,214
|
|
Total wholesale
marketing and terminalling
|
98,043
|
|
|
54,211
|
|
|
185,981
|
|
|
169,645
|
|
Cost of sales:
|
|
|
|
|
|
|
|
Cost of materials and
other
|
74,349
|
|
|
32,710
|
|
|
142,441
|
|
|
127,905
|
|
Operating expenses
(excluding depreciation and amortization)
|
4,623
|
|
|
2,718
|
|
|
8,507
|
|
|
6,006
|
|
Segment contribution
margin
|
$
|
19,071
|
|
|
$
|
18,783
|
|
|
$
|
35,033
|
|
|
$
|
35,734
|
|
Capital
spending
|
$
|
1,060
|
|
|
$
|
235
|
|
|
$
|
3,014
|
|
|
$
|
2,818
|
|
|
|
|
|
|
|
|
|
Consolidated
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliates
|
$
|
88,722
|
|
|
$
|
87,629
|
|
|
$
|
184,916
|
|
|
$
|
194,328
|
|
Third party
|
79,756
|
|
|
30,008
|
|
|
136,475
|
|
|
86,710
|
|
Total
consolidated
|
168,478
|
|
|
117,637
|
|
|
321,391
|
|
|
281,038
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
Cost of materials and
other
|
88,695
|
|
|
43,892
|
|
|
169,866
|
|
|
145,185
|
|
Operating expenses
(excluding depreciation and amortization presented
below)
|
15,481
|
|
|
12,449
|
|
|
29,537
|
|
|
27,193
|
|
Contribution
margin
|
64,302
|
|
|
61,296
|
|
|
121,988
|
|
|
108,660
|
|
General and
administrative expenses
|
6,077
|
|
|
4,721
|
|
|
10,937
|
|
|
10,851
|
|
Depreciation and
amortization
|
9,967
|
|
|
8,694
|
|
|
20,706
|
|
|
14,993
|
|
Other operating
income, net
|
(136)
|
|
|
—
|
|
|
(219)
|
|
|
(107)
|
|
Operating
income
|
$
|
48,394
|
|
|
$
|
47,881
|
|
|
$
|
90,564
|
|
|
$
|
82,923
|
|
Capital
spending
|
$
|
2,591
|
|
|
$
|
652
|
|
|
$
|
10,390
|
|
|
$
|
3,681
|
|
(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.
|
|
8
Delek Logistics
Partners, LP
|
Segment Capital
Spending
|
(In
thousands)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
Pipelines and
Transportation
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Maintenance capital
spending
|
$
|
449
|
|
|
$
|
119
|
|
|
$
|
926
|
|
|
$
|
430
|
|
Discretionary capital
spending
|
1,082
|
|
|
298
|
|
|
6,450
|
|
|
433
|
|
Segment capital
spending
|
$
|
1,531
|
|
|
$
|
417
|
|
|
7,376
|
|
|
863
|
|
Wholesale Marketing
and Terminalling
|
|
|
|
|
|
|
|
Maintenance capital
spending
|
$
|
681
|
|
|
$
|
232
|
|
|
720
|
|
|
1,362
|
|
Discretionary capital
spending
|
379
|
|
|
3
|
|
|
2,294
|
|
|
1,456
|
|
Segment capital
spending
|
$
|
1,060
|
|
|
$
|
235
|
|
|
3,014
|
|
|
2,818
|
|
Consolidated
|
|
|
|
|
|
|
|
Maintenance capital
spending
|
$
|
1,130
|
|
|
$
|
351
|
|
|
1,646
|
|
|
1,792
|
|
Discretionary capital
spending
|
1,461
|
|
|
301
|
|
|
8,744
|
|
|
1,889
|
|
Total capital
spending
|
$
|
2,591
|
|
|
$
|
652
|
|
|
$
|
10,390
|
|
|
$
|
3,681
|
|
|
|
|
Delek Logistics
Partners, LP
|
|
|
|
|
Segment Data
(Unaudited)
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Pipelines and
Transportation Segment:
|
|
|
|
|
|
|
|
Throughputs
(average bpd)
|
|
|
|
|
|
|
|
El Dorado
Assets:
|
|
|
|
|
|
|
|
Crude pipelines (non-gathered)
|
53,316
|
|
|
79,066
|
|
|
48,743
|
|
|
75,995
|
|
Refined products pipelines to Enterprise Systems
|
39,193
|
|
|
56,093
|
|
|
32,806
|
|
|
55,110
|
|
El Dorado Gathering
System
|
17,430
|
|
|
9,447
|
|
|
14,670
|
|
|
13,449
|
|
East Texas Crude
Logistics System
|
27,497
|
|
|
10,275
|
|
|
26,790
|
|
|
12,224
|
|
Big Spring Gathering
System
|
79,589
|
|
|
105,162
|
|
|
76,672
|
|
|
105,162
|
|
Plains Connection
System
|
122,529
|
|
|
—
|
|
|
115,484
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Wholesale
Marketing and Terminalling Segment:
|
|
|
|
|
|
|
|
East Texas - Tyler
Refinery sales volumes (average bpd) (1)
|
74,565
|
|
|
65,028
|
|
|
73,271
|
|
|
68,839
|
|
Big Spring marketing
throughputs (average bpd)
|
75,136
|
|
|
76,004
|
|
|
74,038
|
|
|
71,195
|
|
West Texas marketing
throughputs (average bpd)
|
9,395
|
|
|
9,143
|
|
|
9,765
|
|
|
12,612
|
|
West Texas gross
margin per barrel
|
$
|
4.24
|
|
|
$
|
0.64
|
|
|
$
|
3.81
|
|
|
$
|
1.96
|
|
Terminalling
throughputs (average bpd) (2)
|
139,987
|
|
|
138,593
|
|
|
142,250
|
|
|
136,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes jet fuel and
petroleum coke.
|
(2)
|
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
(ir.deleklogistics.com), news webpage
(www.deleklogistics.com/news) and its Twitter account
(@DelekLogistics).
9
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SOURCE Delek Logistics