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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Delek Logistics Partners LP | NYSE:DKL | NYSE | Common Stock |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 38.96 | 0 | 12:00:07 |
From May 2024 to Nov 2024
Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the second quarter 2024, with reported net income attributable to all partners of $41.1 million, or $0.87 per diluted common limited partner unit. This compares to net income attributable to all partners of $31.9 million, or $0.73 per diluted common limited partner unit, in the second quarter 2023. Net cash provided in operating activities was $87.6 million in the second quarter 2024 compared to $34.6 million in the second quarter 2023. Distributable cash flow was $67.8 million in the second quarter 2024, compared to $60.5 million in the second quarter 2023.
For the second quarter 2024, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $102.4 million compared to $92.8 million in the second quarter 2023.
“Delek Logistics made several strategic announcements today: (i) Delek Logistics & Delek US amended and extended certain contracts for a duration of up to seven years, (ii) The FID (final investment decision) on a new gas processing plant, (iii) Acquisition of H2O Midstream and (iv) Acquisition of Delek US' interest in the Wink to Webster pipeline. These strategic actions position Delek Logistics as a premier, full-service, midstream provider in the prolific Permian Basin,” said Avigal Soreq, President of Delek Logistics' general partner.
"These actions also move Delek Logistics toward becoming an independent, largely third-party cash flow company with a strong growth profile and extremely competitive distribution yield," Mr. Soreq continued.
“In July, the Board continued its commitment to return value to unitholders and approved the 46th consecutive increase in the quarterly distribution to $1.090 per unit," Mr. Soreq concluded.
For the H2O Midstream, transaction, Bank of America Securities, Inc. was the exclusive financial advisor and Baker Botts L.L.P. was the legal advisor to Delek Logistics.
For the intercompany transactions, Intrepid Partners, LLC was the exclusive financial advisor and Gibson, Dunn & Crutcher LLP was the legal advisor to the Conflicts Committee of Delek Logistics.
Distribution and Liquidity
On July 30, 2024, Delek Logistics declared a quarterly cash distribution of $1.090 per common limited partner unit for the second quarter 2024. This distribution will be paid on August 14, 2024 to unitholders of record on August 9, 2024. This represents a 1.9% increase from the first quarter 2024 distribution of $1.070 per common limited partner unit, and a 5.3% increase over Delek Logistics’ second quarter 2023 distribution of $1.035 per common limited partner unit. For the second quarter 2024, the total cash distribution declared to all partners was approximately $51.5 million, resulting in a distributable cash flow ("DCF") coverage ratio of 1.32x.
As of June 30, 2024, Delek Logistics had total debt of approximately $1.57 billion and cash of $5.1 million. Additional borrowing capacity, subject to certain covenants, under the $1.15 billion third party revolving credit facility was $819.8 million. The total leverage ratio as of June 30, 2024 of approximately 3.81x was within the requirements of the maximum allowable leverage ratio under the credit facility.
Consolidated Operating Results
Second quarter 2024, EBITDA was $102.4 million compared with $92.8 million in the second quarter 2023. The $9.6 million increase reflects higher contributions from the Delaware Gathering systems, terminalling and marketing rate increases, as well as continued strong throughput on joint venture pipelines.
Gathering and Processing Segment
EBITDA in the second quarter 2024 was $54.7 million compared with $52.7 million in the second quarter 2023. The increase was primarily due to higher throughput from Permian Basin assets.
Wholesale Marketing and Terminalling Segment
EBITDA in the second quarter 2024 was $30.2 million, compared with second quarter 2023 EBITDA of $28.0 million. The increase was primarily due to higher terminalling utilization.
Storage and Transportation Segment
EBITDA in the second quarter 2024 was $16.8 million, compared with $15.0 million in the second quarter 2023. The increase was primarily due to increased storage and transportation rates.
Investments in Pipeline Joint Ventures Segment
During the second quarter 2024, income from equity method investments was $7.9 million compared to $7.3 million in the second quarter 2023.
Corporate
EBITDA in the second quarter 2024 was a loss of $7.1 million compared to a loss of $10.1 million in the second quarter 2023.
Second Quarter 2024 Results | Conference Call Information
Delek Logistics will hold a conference call to discuss its second quarter 2024 results on Tuesday, August 6, 2024 at 12:30 p.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 with respect to the timing for closing and the possible benefits of the H2O Midstream transaction, as well as from integration post-closing; risks and uncertainties related to the integration of the 3 Bear business; 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:
Our 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:
We believe that the presentation of 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 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 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 and distributable cash flow may be defined differently by other partnerships in our industry, our definitions of 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 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)
June 30, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
5,111
$
3,755
Accounts receivable
48,968
41,131
Accounts receivable from related parties
39,584
28,443
Inventory
1,756
2,264
Other current assets
1,150
676
Total current assets
96,569
76,269
Property, plant and equipment:
Property, plant and equipment
1,343,356
1,320,510
Less: accumulated depreciation
(424,283
)
(384,359
)
Property, plant and equipment, net
919,073
936,151
Equity method investments
235,911
241,337
Customer relationship intangible, net
172,285
181,336
Marketing contract intangible, net
98,550
102,155
Rights-of-way, net
60,416
59,536
Goodwill
12,203
12,203
Operating lease right-of-use assets
16,574
19,043
Other non-current assets
11,721
14,216
Total assets
$
1,623,302
$
1,642,246
LIABILITIES AND DEFICIT
Current liabilities:
Accounts payable
$
26,236
$
26,290
Current portion of long-term debt
—
30,000
Interest payable
25,557
5,805
Excise and other taxes payable
8,407
10,321
Current portion of operating lease liabilities
6,034
6,697
Accrued expenses and other current liabilities
3,794
11,477
Total current liabilities
70,028
90,590
Non-current liabilities:
Long-term debt, net of current portion
1,566,346
1,673,789
Operating lease liabilities, net of current portion
6,656
8,335
Asset retirement obligations
10,411
10,038
Other non-current liabilities
21,168
21,363
Total non-current liabilities
1,604,581
1,713,525
Total liabilities
1,674,609
1,804,115
Equity (Deficit):
Common unitholders - public; 12,918,673 units issued and outstanding at June 30, 2024 (9,299,763 at December 31, 2023)
287,195
160,402
Common unitholders - Delek Holdings; 34,311,278 units issued and outstanding at June 30, 2024 (34,311,278 at December 31, 2023)
(338,502
)
(322,271
)
Total deficit
(51,307
)
(161,869
)
Total liabilities and deficit
$
1,623,302
$
1,642,246
Delek Logistics Partners, LP
Consolidated Statement of Income and Comprehensive Income (Unaudited)
(In thousands, except unit and per unit data)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Net revenues:
Affiliate
$
156,828
$
132,993
$
296,453
$
257,992
Third-party
107,800
113,918
220,250
232,444
Net revenues
264,628
246,911
516,703
490,436
Cost of sales:
Cost of materials and other - affiliate
103,065
92,042
195,947
183,113
Cost of materials and other - third party
34,995
36,083
65,805
71,108
Operating expenses (excluding depreciation and amortization presented below)
29,454
28,476
61,149
52,691
Depreciation and amortization
22,746
22,469
47,913
42,233
Total cost of sales
190,260
179,070
370,814
349,145
Operating expenses related to wholesale business (excluding depreciation and amortization presented below)
174
480
395
1,005
General and administrative expenses
6,016
6,611
10,879
14,121
Depreciation and amortization
1,461
1,258
2,789
2,599
Other operating income, net
(1,744
)
(455
)
(1,177
)
(313
)
Total operating costs and expenses
196,167
186,964
383,700
366,557
Operating income
68,461
59,947
133,003
123,879
Interest expense, net
35,268
35,099
75,497
67,680
Income from equity method investments
(7,882
)
(7,285
)
(16,372
)
(13,601
)
Other income, net
(40
)
(19
)
(211
)
(21
)
Total non-operating expenses, net
27,346
27,795
58,914
54,058
Income before income tax expense
41,115
32,152
74,089
69,821
Income tax expense
57
256
383
558
Net income attributable to partners
$
41,058
$
31,896
$
73,706
$
69,263
Comprehensive income attributable to partners
$
41,058
$
31,896
$
73,706
$
69,263
Net income per limited partner unit:
Basic
$
0.87
$
0.73
$
1.61
$
1.59
Diluted
$
0.87
$
0.73
$
1.61
$
1.59
Weighted average limited partner units outstanding:
Basic
47,219,184
43,577,428
45,812,770
43,573,716
Diluted
47,232,507
43,597,282
45,829,522
43,591,726
Cash distribution per common limited partner unit
$
1.090
$
1.035
$
2.160
$
2.060
Delek Logistics Partners, LP
Condensed Consolidated Statements of Cash Flows (In thousands)
Three Months Ended June 30,
Six Months Ended June 30,
(Unaudited)
2024
2023
2024
2023
Cash flows from operating activities
Net cash provided by operating activities
$
87,639
$
34,612
$
131,497
$
63,802
Cash flows from investing activities
Net cash used in investing activities
(5,560
)
(27,914
)
(15,421
)
(54,893
)
Cash flows from financing activities
Net cash used in financing activities
(86,640
)
(9,947
)
(114,720
)
(9,164
)
Net increase (decrease) in cash and cash equivalents
(4,561
)
(3,249
)
1,356
(255
)
Cash and cash equivalents at the beginning of the period
9,672
10,964
3,755
7,970
Cash and cash equivalents at the end of the period
$
5,111
$
7,715
$
5,111
$
7,715
Delek Logistics Partners, LP
Reconciliation of Amounts Reported Under U.S. GAAP (Unaudited)
(In thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Reconciliation of Net Income to EBITDA:
Net income
$
41,058
$
31,896
$
73,706
$
69,263
Add:
Income tax expense
57
256
383
558
Depreciation and amortization
24,207
23,727
50,702
44,832
Amortization of marketing contract intangible
1,802
1,802
3,605
3,605
Interest expense, net
35,268
35,099
75,497
67,680
EBITDA
$
102,392
$
92,780
$
203,893
$
185,938
Reconciliation of net cash from operating activities to distributable cash flow:
Net cash provided by operating activities
$
87,639
$
34,612
$
131,497
$
63,802
Changes in assets and liabilities
(24,305
)
27,259
1,482
64,929
Non-cash lease expense
38
(2,247
)
(1,901
)
(4,447
)
Distributions from equity method investments in investing activities
540
—
2,673
1,440
Regulatory and sustaining capital expenditures not distributable
(3,007
)
391
(4,286
)
(3,855
)
Reimbursement from Delek Holdings for capital expenditures
(4
)
674
282
1,011
Accretion of asset retirement obligations
(186
)
(176
)
(373
)
(352
)
Deferred income taxes
(103
)
(518
)
(204
)
(629
)
Gain on disposal of assets
7,197
455
6,630
313
Distributable Cash Flow
$
67,809
$
60,450
$
135,800
$
122,212
Delek Logistics Partners, LP
Distributable Coverage Ratio Calculation (Unaudited)
(In thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Distributions to partners of Delek Logistics, LP
$
51,481
$
45,112
$
101,995
$
89,776
Distributable cash flow
$
67,809
$
60,450
$
135,800
$
122,212
Distributable cash flow coverage ratio (1)
1.32x
1.34x
1.33x
1.36x
(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 June 30, 2024
Gathering and Processing
Wholesale Marketing and Terminalling
Storage and Transportation
Investments in Pipeline Joint Ventures
Corporate and Other
Consolidated
Net revenues:
Affiliate
$
51,529
$
70,899
$
34,400
$
—
$
—
$
156,828
Third party
41,114
64,701
1,985
—
—
107,800
Total revenue
$
92,643
$
135,600
$
36,385
$
—
$
—
$
264,628
Segment EBITDA
$
54,680
$
30,205
$
16,752
$
7,882
$
(7,127
)
$
102,392
Depreciation and amortization
19,062
1,635
2,522
—
988
24,207
Amortization of customer contract intangible
—
1,802
—
—
—
1,802
Interest expense, net
—
—
—
—
35,268
35,268
Income tax expense
57
Net income
$
41,058
Capital spending
$
7,351
$
105
$
2,731
$
—
$
—
$
10,187
Three Months Ended June 30, 2023
Gathering and Processing
Wholesale Marketing and Terminalling
Storage and Transportation
Investments in Pipeline Joint Ventures
Corporate and Other
Consolidated
Net revenues:
Affiliate
$
49,182
$
52,076
$
31,735
$
—
$
—
$
132,993
Third party
44,055
66,751
3,112
—
—
113,918
Total revenue
$
93,237
$
118,827
$
34,847
$
—
$
—
$
246,911
Segment EBITDA
$
52,663
$
27,983
$
14,978
$
7,285
$
(10,129
)
$
92,780
Depreciation and amortization
18,801
1,880
2,304
—
742
23,727
Amortization of customer contract intangible
—
1,802
—
—
—
1,802
Interest expense, net
—
—
—
—
35,099
35,099
Income tax expense
256
Net income
$
31,896
Capital spending
$
18,877
$
(2,712
)
$
3,215
$
—
$
—
$
19,380
Six Months Ended June 30, 2024
Gathering and Processing
Wholesale Marketing and Terminalling
Storage and Transportation
Investments in Pipeline Joint Ventures
Corporate and Other
Consolidated
Net revenues:
Affiliate
$
104,082
$
123,781
$
68,590
$
—
$
—
$
296,453
Third party
84,444
131,089
4,717
—
—
220,250
Total revenue
$
188,526
$
254,870
$
73,307
$
—
$
—
$
516,703
Segment EBITDA
$
112,439
$
55,479
$
34,879
$
16,372
$
(15,276
)
$
203,893
Depreciation and amortization
40,216
3,347
5,297
—
1,842
50,702
Amortization of customer contract intangible
—
3,605
—
—
—
3,605
Interest expense, net
—
—
—
—
75,497
75,497
Income tax expense
383
Net income
$
73,706
Capital spending
$
22,074
$
21
$
3,257
$
—
$
—
$
25,352
Six Months Ended June 30, 2023
Gathering and Processing
Wholesale Marketing and Terminalling
Storage and Transportation
Investments in Pipeline Joint Ventures
Corporate and Other
Consolidated
Net revenues:
Affiliate
$
101,943
$
85,827
$
70,222
$
—
$
—
$
257,992
Third party
83,726
145,309
3,409
—
—
232,444
Total revenue
$
185,669
$
231,136
$
73,631
$
—
$
—
$
490,436
Segment EBITDA
$
108,108
$
49,937
$
28,400
$
13,601
$
(14,108
)
$
185,938
Depreciation and amortization
35,248
3,569
4,406
—
1,609
44,832
Amortization of customer contract intangible
—
3,605
—
—
—
3,605
Interest expense, net
—
—
—
—
67,680
67,680
Income tax expense
558
Net income
$
69,263
Capital spending
$
51,666
$
404
$
3,411
$
—
$
—
$
55,481
Delek Logistics Partners, LP
Segment Capital Spending
(In thousands)
Three Months Ended June 30,
Six Months Ended June 30,
Gathering and Processing
2024
2023
2024
2023
Regulatory capital spending
$
—
$
—
$
—
$
—
Sustaining capital spending
171
—
1,008
—
Growth capital spending
7,180
18,877
21,066
51,666
Segment capital spending
$
7,351
$
18,877
$
22,074
$
51,666
Wholesale Marketing and Terminalling
Regulatory capital spending
$
99
$
18
27
79
Sustaining capital spending
6
(3,856
)
(6
)
(925
)
Growth capital spending
—
1,126
—
1,250
Segment capital spending
$
105
$
(2,712
)
$
21
$
404
Storage and Transportation
Regulatory capital spending
$
322
$
1,124
$
322
$
1,148
Sustaining capital spending
2,409
2,091
2,935
2,263
Growth capital spending
—
—
$
—
$
—
Segment capital spending
$
2,731
$
3,215
$
3,257
$
3,411
Consolidated
Regulatory capital spending
$
421
$
1,142
$
349
$
1,227
Sustaining capital spending
2,586
(1,765
)
3,937
1,338
Growth capital spending
7,180
20,003
21,066
52,916
Total capital spending
$
10,187
$
19,380
$
25,352
$
55,481
Delek Logistics Partners, LP
Segment Operating Data (Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Gathering and Processing Segment:
Throughputs (average bpd)
El Dorado Assets:
Crude pipelines (non-gathered)
73,320
61,260
73,166
62,131
Refined products pipelines to Enterprise Systems
60,575
44,966
61,904
49,957
El Dorado Gathering System
13,024
13,041
13,005
13,509
East Texas Crude Logistics System
23,259
30,666
21,481
26,690
Midland Gathering System
206,933
221,876
210,196
221,993
Plains Connection System
210,033
255,035
233,438
247,856
Delaware Gathering Assets:
Natural Gas Gathering and Processing (Mcfd(1))
76,237
73,309
76,280
74,008
Crude Oil Gathering (average bpd)
123,927
117,017
123,718
110,408
Water Disposal and Recycling (average bpd)
116,916
127,195
118,592
107,848
Wholesale Marketing and Terminalling Segment:
East Texas - Tyler Refinery sales volumes (average bpd) (2)
71,082
69,310
68,779
52,158
Big Spring marketing throughputs (average bpd)
81,422
75,164
79,019
76,763
West Texas marketing throughputs (average bpd)
11,381
9,985
10,678
9,454
West Texas gross margin per barrel
$
2.99
$
7.01
$
2.60
$
6.27
Terminalling throughputs (average bpd) (3)
159,260
134,323
147,937
113,926
(1)
Mcfd - average thousand cubic feet per day.
(2)
Excludes jet fuel and petroleum coke.
(3)
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 X account (@DelekLogistics).
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806637231/en/
Investor Relations and Media/Public Affairs Contact: investor.relations@delekus.com
1 Year Delek Logistics Partners Chart |
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