DKL Delek Logistics Partners LP

• Net income attributable to all partners of $33.7 million
• Reported record Adjusted EBITDA of $106.8 million up 9% year over year
• During the 3rd quarter Delek Logistics:
  • Closed the acquisition of H2O Midstream
  • Completed the acquisition of Delek US' interest in the Wink to Webster ("W2W") pipeline
  • Amended and extended agreements with Delek US for a period of up to seven years
  • Announced the final investment decision (FID) on a new gas processing plant adjacent to the existing Delaware plant
• DKL raised $165.3 million from a primary offering in October to fund its accretive growth projects in the Delaware Basin
• Continued with its consistent distribution growth policy with recent increase to $1.100/unit

Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the third quarter 2024.

“Delek Logistics continues to provide the best combination of yield and growth in the midstream sector. We are proud of the 47th consecutive increase in our distribution and we expect to continue to increase our distribution in the future. The completion of our previously announced 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.

"Our recent equity offering allows us to bring forward additional growth opportunities and strengthen our position in the Delaware basin. We will continue to strengthen and grow DKL through a prudent management of liquidity and leverage," Mr. Soreq continued.

DKL reported third quarter 2024 net income attributable to limited partners of $33.7 million, or $0.71 per diluted common limited partner unit. The third quarter 2024 net income attributable to limited partners included $8.7 million of transaction costs and impacts of sales-type lease accounting. This compares to net income attributable to limited partners of $34.8 million, or $0.80 per diluted common limited partner unit, in the third quarter 2023. Net cash provided in operating activities was $24.9 million in the third quarter 2024 compared to $46.8 million in the third quarter 2023. Distributable cash flow, as adjusted was $62.0 million in the third quarter 2024, compared to $61.4 million in the third quarter 2023.

For the third quarter 2024, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $69.2 million compared to $98.2 million in the third quarter 2023. The third quarter 2024 EBITDA included $8.7 million of transaction costs and impacts of sales-type lease accounting. For the third quarter 2024, Adjusted EBITDA was $106.8 million compared to $98.2 million in the third quarter 2023.

Distribution and Liquidity

On October 29, 2024, Delek Logistics declared a quarterly cash distribution of $1.100 per common limited partner unit for the third quarter 2024. This distribution will be paid on November 14, 2024 to unitholders of record on November 8, 2024. This represents a 0.9% increase from the second quarter 2024 distribution of $1.090 per common limited partner unit, and a 5.3% increase over Delek Logistics’ third quarter 2023 distribution of $1.045 per common limited partner unit. Distribution cash flow coverage ratio, as adjusted for the quarter was 1.1x, lower than our target of 1.3x, primarily because of transitory timing effects. H2O Midstream closed late in the third quarter and W2W distributions came in post the quarter close in October.

As of September 30, 2024, Delek Logistics had total debt of approximately $1.89 billion and cash of $7.3 million and a leverage ratio of approximately 4.15x. Additional borrowing capacity, under the $1.15 billion third party revolving credit facility was $695.1 million.

Consolidated Operating Results

Adjusted EBITDA in the third quarter 2024 was $106.8 million compared to $98.2 million in the third quarter 2023. The $8.6 million increase in Adjusted EBITDA reflects higher contributions from the Midland Gathering systems, terminalling and marketing rate increases, as well as impacts from the W2W dropdown.

Gathering and Processing Segment

Adjusted EBITDA in the third quarter 2024 was $55.0 million compared with $52.9 million in the third quarter 2023. The increase was primarily due to higher throughput from Permian Basin assets and incremental EBITDA from the H2O Midstream acquisition.

Wholesale Marketing and Terminalling Segment

Adjusted EBITDA in the third quarter 2024 was $24.7 million, compared with third quarter 2023 Adjusted EBITDA of $28.1 million. The decrease was primarily due to a decline in wholesale margins.

Storage and Transportation Segment

Adjusted EBITDA in the third quarter 2024 was $19.4 million, compared with $17.9 million in the third quarter 2023. The increase was primarily due to increased storage and transportation rates.

Investments in Pipeline Joint Ventures Segment

During the third quarter 2024, income from equity method investments was $15.6 million compared to $9.3 million in the third quarter 2023. The increase was primarily due to the impacts of the W2W dropdown.

Corporate

Adjusted EBITDA in the third quarter 2024 was a loss of $7.9 million compared to a loss of $10.0 million in the third quarter 2023.

Third Quarter 2024 Results | Conference Call Information

Delek Logistics will hold a conference call to discuss its third quarter 2024 results on Wednesday, November 6, 2024 at 10:30 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 with respect to the possible benefits of the H2O Midstream transaction, as well as from integration post-closing; 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.

Sales-Type Leases

During the third quarter of 2024, Delek Logistics and Delek US renewed and amended certain commercial agreements. These amendments required the embedded leases within these agreements to be reassessed under Accounting Standards Codification 842, Leases. As a result of these amendments, certain of these agreements met the criteria to be accounted for as sales-type leases. Therefore, portions of our payments received for minimum volume commitments under agreements subject to sales-type lease accounting are recorded as interest income with the remaining amounts recorded as a reduction in net investment in leases. Prior to the amendments, these agreements were accounted for as operating leases and these minimum volume commitments were recorded as revenues.

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 financial information presented in accordance with United States ("U.S.") Generally Accepted Accounting Principles ("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.
• Adjusted EBITDA - EBITDA adjusted for (i) significant, infrequently occurring transaction costs and (ii) throughput and storage fees associated with the lease component of commercial agreements subject to sales-type lease accounting.
• Distributable cash flow - calculated as net cash flow from operating activities adjusted for changes in assets and liabilities, maintenance capital expenditures net of reimbursements, sales-type lease receipts, net of income recognized and other adjustments not expected to settle in cash.
• Distributable cash flow, as adjusted -calculated as distributable cash flow adjusted to exclude significant, infrequently occurring transaction costs.

Our EBITDA, Adjusted EBITDA, distributable cash flow and distributable cash flow, as adjusted 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 these non-GAAP measures provide information useful to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance and liquidity for current and comparative periods. Non-GAAP measures 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. Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings, net cash provided by operating activities and operating income. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. Additionally, because EBITDA, Adjusted EBITDA, distributable cash flow and distributable cash flow, as adjusted may be defined differently by other partnerships in our industry, our definitions 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

Consolidated Balance Sheets (Unaudited)

(In thousands, except unit data)

 

September 30, 2024

 

December 31, 2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

7,317

 

 

$

3,755

 

Accounts receivable

 

48,173

 

 

 

41,131

 

Accounts receivable from related parties

 

—

 

 

 

28,443

 

Lease receivable - affiliate

 

23,852

 

 

 

—

 

Inventory

 

4,632

 

 

 

2,264

 

Other current assets

 

1,967

 

 

 

676

 

Total current assets

 

85,941

 

 

 

76,269

 

Property, plant and equipment:

 

 

 

Property, plant and equipment

 

1,480,553

 

 

 

1,320,510

 

Less: accumulated depreciation

 

(440,557

)

 

 

(384,359

)

Property, plant and equipment, net

 

1,039,996

 

 

 

936,151

 

Equity method investments

 

322,745

 

 

 

241,337

 

Customer relationship intangible, net

 

191,655

 

 

 

181,336

 

Marketing contract intangible, net

 

—

 

 

 

102,155

 

Other intangibles, net

 

95,538

 

 

 

59,536

 

Goodwill

 

12,203

 

 

 

12,203

 

Operating lease right-of-use assets

 

15,222

 

 

 

19,043

 

Net lease investment - affiliate

 

186,361

 

 

 

—

 

Other non-current assets

 

11,062

 

 

 

14,216

 

Total assets

$

1,960,723

 

 

$

1,642,246

 

 

 

 

 

LIABILITIES AND DEFICIT

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

35,683

 

 

$

26,290

 

Accounts payable to related parties

 

442

 

 

 

—

 

Current portion of long-term debt

 

—

 

 

 

30,000

 

Interest payable

 

15,559

 

 

 

5,805

 

Excise and other taxes payable

 

7,641

 

 

 

10,321

 

Current portion of operating lease liabilities

 

5,371

 

 

 

6,697

 

Accrued expenses and other current liabilities

 

4,886

 

 

 

11,477

 

Total current liabilities

 

69,582

 

 

 

90,590

 

Non-current liabilities:

 

 

 

Long-term debt, net of current portion

 

1,894,257

 

 

 

1,673,789

 

Operating lease liabilities, net of current portion

 

5,820

 

 

 

8,335

 

Asset retirement obligations

 

15,453

 

 

 

10,038

 

Other non-current liabilities

 

20,719

 

 

 

21,363

 

Total non-current liabilities

 

1,936,249

 

 

 

1,713,525

 

Total liabilities

 

2,005,831

 

 

 

1,804,115

 

Preferred units - 70,000 units issued and outstanding at September 30, 2024

 

70,000

 

 

 

—

 

Equity (Deficit):

 

 

 

Common unitholders - public; 12,932,311 units issued and outstanding at September 30, 2024 (9,299,763 at December 31, 2023)

 

282,458

 

 

 

160,402

 

Common unitholders - Delek Holdings; 34,111,278 units issued and outstanding at September 30, 2024 (34,311,278 at December 31, 2023)

 

(397,566

)

 

 

(322,271

)

Total deficit

 

(115,108

)

 

 

(161,869

)

Total liabilities, preferred units and deficit

$

1,960,723

 

 

$

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 September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net revenues:

 

 

 

 

 

 

 

Affiliate

$

114,899

 

 

$

156,411

 

 

$

411,352

 

 

$

414,403

 

Third party

 

99,171

 

 

 

119,413

 

 

 

319,421

 

 

 

351,857

 

Net revenues

 

214,070

 

 

 

275,824

 

 

 

730,773

 

 

 

766,260

 

Cost of sales:

 

 

 

 

 

 

 

Cost of materials and other - affiliate

 

84,015

 

 

 

115,149

 

 

 

279,962

 

 

 

298,262

 

Cost of materials and other - third party

 

33,495

 

 

 

35,479

 

 

 

99,300

 

 

 

106,587

 

Operating expenses (excluding depreciation and amortization presented below)

 

27,746

 

 

 

32,611

 

 

 

88,895

 

 

 

85,302

 

Depreciation and amortization

 

19,969

 

 

 

23,261

 

 

 

67,882

 

 

 

65,494

 

Total cost of sales

 

165,225

 

 

 

206,500

 

 

 

536,039

 

 

 

555,645

 

Operating expenses related to wholesale business (excluding depreciation and amortization presented below)

 

174

 

 

 

392

 

 

 

569

 

 

 

1,397

 

General and administrative expenses

 

15,745

 

 

 

5,545

 

 

 

26,624

 

 

 

19,666

 

Depreciation and amortization

 

1,235

 

 

 

1,324

 

 

 

4,024

 

 

 

3,923

 

Other operating income, net

 

(117

)

 

 

(491

)

 

 

(1,294

)

 

 

(804

)

Total operating costs and expenses

 

182,262

 

 

 

213,270

 

 

 

565,962

 

 

 

579,827

 

Operating income

 

31,808

 

 

 

62,554

 

 

 

164,811

 

 

 

186,433

 

Interest income

 

(23,470

)

 

 

—

 

 

 

(23,498

)

 

 

—

 

Interest expense

 

37,022

 

 

 

36,901

 

 

 

112,547

 

 

 

104,581

 

Income from equity method investments

 

(15,602

)

 

 

(9,296

)

 

 

(31,974

)

 

 

(22,897

)

Other expense (income), net

 

34

 

 

 

(3

)

 

 

(177

)

 

 

(24

)

Total non-operating expenses, net

 

(2,016

)

 

 

27,602

 

 

 

56,898

 

 

 

81,660

 

Income before income tax expense

 

33,824

 

 

 

34,952

 

 

 

107,913

 

 

 

104,773

 

Income tax expense

 

150

 

 

 

127

 

 

 

533

 

 

 

685

 

Net income attributable to partners

$

33,674

 

 

$

34,825

 

 

$

107,380

 

 

$

104,088

 

Comprehensive income attributable to partners

$

33,674

 

 

$

34,825

 

 

$

107,380

 

 

$

104,088

 

 

 

 

 

 

 

 

 

Net income per limited partner unit:

 

 

 

 

 

 

 

Basic

$

0.71

 

 

$

0.80

 

 

$

2.32

 

 

$

2.39

 

Diluted

$

0.71

 

 

$

0.80

 

 

$

2.32

 

 

$

2.39

 

Weighted average limited partner units outstanding:

 

 

 

 

 

 

 

Basic

 

47,109,008

 

 

 

43,588,316

 

 

 

46,248,003

 

 

 

43,578,636

 

Diluted

 

47,135,101

 

 

 

43,604,792

 

 

 

46,269,423

 

 

 

43,598,547

 

Cash distribution per common limited partner unit

$

1.095

 

 

$

1.045

 

 

$

3.255

 

 

$

3.105

 

Delek Logistics Partners, LP

Condensed Consolidated Statements of Cash Flows (In thousands)

Three Months Ended September 30,

 

Nine Months Ended September 30,

(Unaudited)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net cash provided by operating activities

$

24,944

 

 

$

46,828

 

 

$

156,441

 

 

$

110,630

 

Cash flows from investing activities

 

 

 

 

 

 

 

Net cash used in investing activities

 

(299,107

)

 

 

(741

)

 

 

(314,528

)

 

 

(55,634

)

Cash flows from financing activities

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

276,369

 

 

 

(49,620

)

 

 

161,649

 

 

 

(58,784

)

Net increase (decrease) in cash and cash equivalents

 

2,206

 

 

 

(3,533

)

 

 

3,562

 

 

 

(3,788

)

Cash and cash equivalents at the beginning of the period

 

5,111

 

 

 

7,715

 

 

 

3,755

 

 

 

7,970

 

Cash and cash equivalents at the end of the period

$

7,317

 

 

$

4,182

 

 

$

7,317

 

 

$

4,182

 

Delek Logistics Partners, LP

Reconciliation of Amounts Reported Under U.S. GAAP (Unaudited)

(In thousands)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Reconciliation of Net Income to EBITDA:

 

 

 

 

 

 

 

Net income

$

33,674

 

 

$

34,825

 

 

$

107,380

 

 

$

104,088

 

Add:

 

 

 

 

 

 

 

Income tax expense

 

150

 

 

 

127

 

 

 

533

 

 

 

685

 

Depreciation and amortization

 

21,204

 

 

 

24,585

 

 

 

71,906

 

 

 

69,417

 

Amortization of marketing contract intangible

 

601

 

 

 

1,803

 

 

 

4,206

 

 

 

5,408

 

Interest expense, net

 

13,552

 

 

 

36,901

 

 

 

89,049

 

 

 

104,581

 

EBITDA

 

69,181

 

 

 

98,241

 

 

 

273,074

 

 

 

284,179

 

Throughput and storage fees for sales-type leases

 

28,972

 

 

 

—

 

 

 

28,972

 

 

 

—

 

Transaction costs

 

8,676

 

 

 

—

 

 

 

8,676

 

 

 

—

 

Adjusted EBITDA

$

106,829

 

 

$

98,241

 

 

$

310,722

 

 

$

284,179

 

 

 

 

 

 

 

 

 

Reconciliation of net cash from operating activities to distributable cash flow:

 

 

 

 

 

 

 

Net cash provided by operating activities

$

24,944

 

 

$

46,828

 

 

$

156,441

 

 

$

110,630

 

Changes in assets and liabilities

 

29,049

 

 

 

16,439

 

 

 

30,531

 

 

 

81,368

 

Non-cash lease expense

 

(3,788

)

 

 

(2,960

)

 

 

(5,689

)

 

 

(7,407

)

Distributions from equity method investments in investing activities

 

704

 

 

 

3,037

 

 

 

3,377

 

 

 

4,477

 

Regulatory and sustaining capital expenditures not distributable

 

(3,396

)

 

 

(2,069

)

 

 

(7,682

)

 

 

(5,924

)

Reimbursement from (refund to) Delek Holdings for capital expenditures

 

—

 

 

 

(69

)

 

 

282

 

 

 

942

 

Sales-type lease receipts, net of income recognized

 

5,474

 

 

 

—

 

 

 

5,474

 

 

 

—

 

Accretion

 

446

 

 

 

(177

)

 

 

73

 

 

 

(529

)

Deferred income taxes

 

(247

)

 

 

(124

)

 

 

(451

)

 

 

(753

)

Gain on disposal of assets

 

97

 

 

 

491

 

 

 

6,727

 

 

 

804

 

Distributable Cash Flow

 

53,283

 

 

 

61,396

 

 

 

189,083

 

 

 

183,608

 

Transaction costs

 

8,676

 

 

 

—

 

 

 

8,676

 

 

 

—

 

Distributable Cash Flow, as adjusted (1)

$

61,959

 

 

$

61,396

 

 

$

197,759

 

 

$

183,608

 

(1)

Distributable cash flow adjusted to exclude transaction costs associated with the H2O Midstream Acquisition.

Delek Logistics Partners, LP

Distributable Coverage Ratio Calculation (Unaudited)

(In thousands)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

Distributions to partners of Delek Logistics, LP

$

56,613

 

$

45,558

 

$

158,397

 

$

135,334

 

 

 

 

 

 

 

 

Distributable cash flow

$

53,283

 

$

61,396

 

$

189,083

 

$

183,608

Distributable cash flow coverage ratio (1)

0.94x

 

1.35x

 

1.19x

 

1.36x

Distributable cash flow, as adjusted

 

61,959

 

 

61,396

 

 

197,759

 

 

183,608

Distributable cash flow coverage ratio, as adjusted (2)

1.09x

 

1.35x

 

1.25x

 

1.36x

(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 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 September 30, 2024

 

 

Gathering and Processing

 

Wholesale Marketing and Terminalling

 

Storage and Transportation

 

Investments in Pipeline Joint Ventures

 

Corporate and Other

 

Consolidated

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

$

39,910

 

 

$

51,682

 

 

$

23,307

 

 

$

—

 

$

—

 

 

$

114,899

 

Third party

 

 

41,617

 

 

 

55,256

 

 

 

2,298

 

 

 

—

 

 

—

 

 

 

99,171

 

Total revenue

 

$

81,527

 

 

$

106,938

 

 

$

25,605

 

 

$

—

 

$

—

 

 

$

214,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

55,024

 

 

$

24,695

 

 

$

19,404

 

 

$

15,602

 

$

(7,896

)

 

$

106,829

 

Transaction costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

8,676

 

 

 

8,676

 

Throughput and storage fees for sales-type leases

 

 

12,644

 

 

 

4,450

 

 

 

11,878

 

 

 

—

 

 

—

 

 

 

28,972

 

Segment EBITDA

 

$

42,380

 

 

$

20,245

 

 

$

7,526

 

 

$

15,602

 

$

(16,572

)

 

$

69,181

 

Depreciation and amortization

 

 

16,424

 

 

 

2,796

 

 

 

1,218

 

 

 

—

 

 

766

 

 

 

21,204

 

Amortization of customer contract intangible

 

 

—

 

 

 

601

 

 

 

—

 

 

 

—

 

 

—

 

 

 

601

 

Interest income

 

 

(11,531

)

 

 

(3,707

)

 

 

(8,232

)

 

 

—

 

 

—

 

 

 

(23,470

)

Interest expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

37,022

 

 

 

37,022

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

150

 

Net income

 

 

 

 

 

 

 

 

 

 

 

$

33,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital spending

 

$

62,086

 

 

$

1,202

 

 

$

1,910

 

 

$

—

 

$

—

 

 

$

65,198

 

 

 

Three Months Ended September 30, 2023

 

 

Gathering and Processing

 

Wholesale Marketing and Terminalling

 

Storage and Transportation

 

Investments in Pipeline Joint Ventures

 

Corporate and Other

 

Consolidated

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

$

55,419

 

$

70,610

 

$

30,382

 

$

—

 

$

—

 

 

$

156,411

Third party

 

 

39,406

 

 

76,500

 

 

3,507

 

 

—

 

 

—

 

 

 

119,413

Total revenue

 

$

94,825

 

$

147,110

 

$

33,889

 

$

—

 

$

—

 

 

$

275,824

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

52,906

 

$

28,135

 

$

17,914

 

$

9,288

 

$

(10,002

)

 

$

98,241

Segment EBITDA

 

$

52,906

 

$

28,135

 

$

17,914

 

$

9,288

 

$

(10,002

)

 

 

98,241

Depreciation and amortization

 

 

19,263

 

 

1,769

 

 

2,704

 

 

—

 

 

849

 

 

 

24,585

Amortization of customer contract intangible

 

 

—

 

 

1,803

 

 

—

 

 

—

 

 

—

 

 

 

1,803

Interest expense

 

 

—

 

 

—

 

 

—

 

 

—

 

 

36,901

 

 

 

36,901

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

127

Net income

 

 

 

 

 

 

 

 

 

 

 

$

34,825

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital spending

 

$

12,002

 

$

2,123

 

$

522

 

$

—

 

$

—

 

 

$

14,647

 

 

Nine Months Ended September 30, 2024

 

 

Gathering and Processing

 

Wholesale Marketing and Terminalling

 

Storage and Transportation

 

Investments in Pipeline Joint Ventures

 

Corporate and Other

 

Consolidated

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

$

143,992

 

 

$

175,463

 

 

$

91,897

 

 

$

—

 

$

—

 

 

$

411,352

 

Third party

 

 

126,061

 

 

 

186,345

 

 

 

7,015

 

 

 

—

 

 

—

 

 

 

319,421

 

Total revenue

 

$

270,053

 

 

$

361,808

 

 

$

98,912

 

 

$

—

 

$

—

 

 

$

730,773

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

167,463

 

 

$

80,174

 

 

$

54,283

 

 

$

31,974

 

$

(23,172

)

 

$

310,722

 

Transaction costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

8,676

 

 

 

8,676

 

Throughput and storage fees for sales-type leases

 

 

12,644

 

 

 

4,450

 

 

 

11,878

 

 

 

—

 

 

—

 

 

 

28,972

 

Segment EBITDA

 

$

154,819

 

 

$

75,724

 

 

$

42,405

 

 

$

31,974

 

$

(31,848

)

 

 

273,074

 

Depreciation and amortization

 

 

56,640

 

 

 

6,143

 

 

 

6,515

 

 

 

—

 

 

2,608

 

 

 

71,906

 

Amortization of customer contract intangible

 

 

—

 

 

 

4,206

 

 

 

—

 

 

 

—

 

 

—

 

 

 

4,206

 

Interest income

 

 

(11,559

)

 

 

(3,707

)

 

 

(8,232

)

 

 

—

 

 

—

 

 

 

(23,498

)

Interest expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

112,547

 

 

 

112,547

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

533

 

Net income

 

 

 

 

 

 

 

 

 

 

 

$

107,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital spending

 

$

84,160

 

 

$

1,223

 

 

$

5,167

 

 

$

—

 

$

—

 

 

$

90,550

 

 

 

 

Nine Months Ended September 30, 2023

 

 

Gathering and Processing

 

Wholesale Marketing and Terminalling

 

Storage and Transportation

 

Investments in Pipeline Joint Ventures

 

Corporate and Other

 

Consolidated

Net revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

$

157,362

 

 

$

156,437

 

 

$

100,604

 

 

$

—

 

$

—

 

 

$

414,403

 

Third party

 

 

123,132

 

 

 

221,809

 

 

 

6,916

 

 

 

—

 

 

—

 

 

 

351,857

 

Total revenue

 

$

280,494

 

 

$

378,246

 

 

$

107,520

 

 

$

—

 

$

—

 

 

$

766,260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

161,014

 

 

$

78,071

 

 

$

46,316

 

 

$

22,889

 

$

(24,111

)

 

$

284,179

 

Segment EBITDA

 

$

161,014

 

 

$

78,071

 

 

$

46,316

 

 

$

22,889

 

$

(24,111

)

 

 

284,179

 

Depreciation and amortization

 

 

54,511

 

 

 

5,338

 

 

 

7,109

 

 

 

—

 

 

2,459

 

 

 

69,417

 

Amortization of customer contract intangible

 

 

—

 

 

 

5,408

 

 

 

—

 

 

 

—

 

 

—

 

 

 

5,408

 

Interest income

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

Interest expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

104,581

 

 

 

104,581

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

685

 

Net income

 

 

 

 

 

 

 

 

 

 

 

$

104,088

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital spending

 

$

62,168

 

 

$

2,527

 

 

$

3,933

 

 

$

—

 

$

—

 

 

$

68,628

 

Delek Logistics Partners, LP

Segment Capital Spending

(In thousands)

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

Gathering and Processing

2024

 

2023

 

2024

 

2023

Regulatory capital spending

$

—

 

$

31

 

$

—

 

$

31

Sustaining capital spending

 

284

 

 

980

 

 

1,292

 

 

980

Growth capital spending (1)

 

61,802

 

 

10,991

 

 

82,868

 

 

61,157

Segment capital spending

$

62,086

 

$

12,002

 

$

84,160

 

$

62,168

Wholesale Marketing and Terminalling

 

 

 

 

 

 

 

Regulatory capital spending

$

379

 

$

292

 

 

406

 

 

371

Sustaining capital spending

 

823

 

 

1,679

 

 

817

 

 

754

Growth capital spending

 

—

 

 

152

 

 

—

 

 

1,402

Segment capital spending

$

1,202

 

$

2,123

 

$

1,223

 

$

2,527

Storage and Transportation

 

 

 

 

 

 

 

Regulatory capital spending

$

366

 

$

522

 

$

688

 

$

1,670

Sustaining capital spending

 

1,544

 

 

—

 

 

4,479

 

 

2,263

Growth capital spending

 

—

 

 

—

 

$

—

 

$

—

Segment capital spending

$

1,910

 

$

522

 

$

5,167

 

$

3,933

Consolidated

 

 

 

 

 

 

 

Regulatory capital spending

$

745

 

$

845

 

$

1,094

 

$

2,072

Sustaining capital spending

 

2,651

 

 

2,659

 

 

6,588

 

 

3,997

Growth capital spending (1)

 

61,802

 

 

11,143

 

 

82,868

 

 

62,559

Total capital spending

$

65,198

 

$

14,647

 

$

90,550

 

$

68,628

(1)

2024 includes $53.4 million of capital spending related to the new gas processing plant.

Delek Logistics Partners, LP

 

 

 

 

Segment Operating Data (Unaudited)

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

Gathering and Processing Segment:

 

 

 

 

 

 

 

Throughputs (average bpd)

 

 

 

 

 

 

 

El Dorado Assets:

 

 

 

 

 

 

 

Crude pipelines (non-gathered)

 

68,430

 

 

70,153

 

 

71,576

 

 

64,835

Refined products pipelines to Enterprise Systems

 

55,283

 

 

63,991

 

 

59,681

 

 

54,686

El Dorado Gathering System

 

13,886

 

 

14,774

 

 

12,113

 

 

13,935

East Texas Crude Logistics System

 

35,891

 

 

36,298

 

 

26,319

 

 

29,928

Midland Gathering System

 

185,179

 

 

248,443

 

 

201,796

 

 

230,907

Plains Connection System

 

188,421

 

 

250,550

 

 

218,323

 

 

248,763

Delaware Gathering Assets:

 

 

 

 

 

 

 

Natural Gas Gathering and Processing (Mcfd(1))

 

75,719

 

 

69,737

 

 

76,092

 

 

72,569

Crude Oil Gathering (average bpd)

 

125,123

 

 

111,973

 

 

124,190

 

 

110,935

Water Disposal and Recycling (average bpd)

 

123,856

 

 

99,158

 

 

120,360

 

 

104,920

Midland Water Gathering System:

 

 

 

 

 

 

 

Water Disposal and Recycling (average bpd) (2)

 

100,335

 

 

—

 

 

100,335

 

 

—

 

 

 

 

 

 

 

 

Wholesale Marketing and Terminalling Segment:

 

 

 

 

 

 

 

East Texas - Tyler Refinery sales volumes (average bpd) (3)

 

70,172

 

 

69,178

 

 

69,246

 

 

57,894

Big Spring marketing throughputs (average bpd)

 

22,700

 

 

81,617

 

 

60,109

 

 

78,399

West Texas marketing throughputs (average bpd)

 

6,552

 

 

10,692

 

 

5,276

 

 

9,871

West Texas gross margin per barrel

$

3.38

 

$

9.64

 

$

2.85

 

$

8.76

Terminalling throughputs (average bpd) (4)

 

160,849

 

 

121,430

 

 

152,272

 

 

116,455

(1)

Mcfd - average thousand cubic feet per day.

(2)

2024 volumes include volumes from September 11, 2024 through September 30, 2024.

(3)

Excludes jet fuel and petroleum coke.

(4)

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/20241106740630/en/

Investor Relations and Media/Public Affairs Contact: investor.relations@delekus.com