Delek Logistics Reports Record Third Quarter 2024 Results
- 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
BRENTWOOD, Tenn.–(BUSINESS WIRE)–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.
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Delek Logistics Partners, LP |
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Consolidated Balance Sheets (Unaudited) |
|||||||
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(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 |
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Consolidated Statement of Income and Comprehensive Income (Unaudited) |
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|
(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 |
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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 |
|
Contacts
Investor Relations and Media/Public Affairs Contact:
investor.relations@delekus.com
