Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Delek Logistics Reports First Quarter 2024 Results By: Delek Logistics Partners, LP via Business Wire May 07, 2024 at 07:30 AM EDT Net income attributable to all partners of $32.6 million Quarterly EBITDA of $101.5 million Distributable cash flow of $68.0 million, DCF coverage ratio of 1.35x In 2024, successfully executed $850 million debt offering and $138 million equity offering: Improved liquidity from approximately $300.0 million to $800.0 million Added 3.6 million units for a total 47.2 million outstanding units and increased volume activity Improved leverage ratio to 4.01x from 4.34x at year-end 2023 Delivered 45 consecutive quarters of distribution growth with recent increase to $1.070/unit Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the first quarter 2024, with reported net income attributable to all partners of $32.6 million, or $0.73 per diluted common limited partner unit. This compares to net income attributable to all partners of $37.4 million, or $0.86 per diluted common limited partner unit, in the first quarter 2023. The decrease in net income attributable to all partners was driven by higher interest expense. Net cash provided in operating activities was $43.9 million in the first quarter 2024 compared to $29.2 million in the first quarter 2023. Distributable cash flow was $68.0 million in the first quarter 2024, compared to $61.8 million in the first quarter 2023. For the first quarter 2024, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $101.5 million compared to $93.2 million in the first quarter 2023. “Delek Logistics had a strong quarter, delivering another solid financial and operational performance,” said Avigal Soreq, President of Delek Logistics' general partner. "I'm proud of the team for successfully executing the debt and equity offerings during the quarter," Soreq continued. "We improved DKL's financial strength and flexibility with these transactions. The leverage ratio was lowered to 4.01x, down from 4.34x at year-end 2023, and liquidity was improved to approximately $800.0 million. Additionally, we saw new investor interest and increased volume activity in the units, enhancing our opportunities with DKL." “In April, the Board continued its commitment to return value to unitholders and approved the 45th consecutive increase in the quarterly distribution to $1.070 per unit," Mr. Soreq concluded. Distribution and Liquidity On April 25, 2024, Delek Logistics declared a quarterly cash distribution of $1.070 per common limited partner unit for the first quarter 2024. This distribution will be paid on May 15, 2024 to unitholders of record on May 8, 2024. This represents a 1.4% increase from the fourth quarter 2023 distribution of $1.055 per common limited partner unit, and a 4.4% increase over Delek Logistics’ first quarter 2023 distribution of $1.025 per common limited partner unit. For the first quarter 2024, the total cash distribution declared to all partners was approximately $50.5 million, resulting in a distributable cash flow ("DCF") coverage ratio of 1.35x. As of March 31, 2024, Delek Logistics had total debt of approximately $1.60 billion and cash of $9.7 million. Additional borrowing capacity, subject to certain covenants, under the $1.15 billion third party revolving credit facility was $584.8 million. The total leverage ratio as of March 31, 2024 of approximately 4.01x was within the requirements of the maximum allowable leverage ratio under the credit facility. Consolidated Operating Results First quarter 2024, EBITDA was $101.5 million compared with $93.2 million in the first quarter 2023. The $8.3 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. The increase was partially offset by higher operating expenses driven by the growth in operations. Gathering and Processing Segment EBITDA in the first quarter 2024 was $57.8 million compared with $55.4 million in the first quarter 2023. The increase was primarily due to higher throughput from Permian Basin assets. Wholesale Marketing and Terminalling Segment EBITDA in the first quarter 2024 was $25.3 million, compared with first quarter 2023 EBITDA of $22.0 million. The increase was primarily due to higher terminalling utilization. Storage and Transportation Segment EBITDA in the first quarter 2024 was $18.1 million, compared with $13.4 million in the first quarter 2023. The increase was primarily due to increased storage and transportation rates. Investments in Pipeline Joint Ventures Segment During the first quarter 2024, income from equity method investments was $8.5 million compared to $6.3 million in the first quarter 2023. Corporate EBITDA in the first quarter 2024 was a loss of $8.1 million compared to a loss of $4.0 million in the first quarter 2023. First Quarter 2024 Results | Conference Call Information Delek Logistics will hold a conference call to discuss its first quarter 2024 results on Tuesday, May 7, 2024 at 11:30 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekLogistics.com. Participants are encouraged to register at least 15 minutes early to download and install any necessary software. An archived version of the replay will also be available at www.DelekLogistics.com for 90 days. About Delek Logistics Partners, LP Delek Logistics is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. Through its owned assets and joint ventures located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the Gulf Coast region, Delek Logistics provides gathering, pipeline and other transportation services primarily for crude oil and natural gas customers, storage, wholesale marketing and terminalling services primarily for intermediate and refined product customers, and water disposal and recycling services. Delek US Holdings, Inc. ("Delek US") owns the general partner interest as well as a majority limited partner interest in Delek Logistics, and is also a significant customer. Safe Harbor Provisions Regarding Forward-Looking Statements This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or similar expressions, as well as statements in the future tense, and can be impacted by numerous factors, including the fact that a significant portion of Delek Logistics' revenue is derived from Delek US, thereby subjecting us to Delek US' business risks; risks relating to the securities markets generally; risks and costs relating to the age and operational hazards of our assets including, without limitation, costs, penalties, regulatory or legal actions and other effects related to releases, spills and other hazards inherent in transporting and storing crude oil and intermediate and finished petroleum products; the impact of adverse market conditions affecting the utilization of Delek Logistics' assets and business performance, including margins generated by its wholesale fuel business; risks and uncertainties related to the integration of the 3 Bear business following the recent acquisition; uncertainties regarding future decisions by OPEC regarding production and pricing disputes between OPEC members and Russia; an inability of Delek US to grow as expected as it relates to our potential future growth opportunities, including dropdowns, and other potential benefits; projected capital expenditures, scheduled turnaround activity; the results of our investments in joint ventures; adverse changes in laws including with respect to tax and regulatory matters; and other risks as disclosed in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports and filings with the United States Securities and Exchange Commission. Forward-looking statements include, but are not limited to, statements regarding future growth at Delek Logistics; distributions and the amounts and timing thereof; potential dropdown inventory; projected benefits of the Delaware Gathering acquisition; expected earnings or returns from joint ventures or other acquisitions; expansion projects; ability to create long-term value for our unit holders; financial flexibility and borrowing capacity; and distribution growth. Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Delek Logistics undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof, except as required by applicable law or regulation. Non-GAAP Disclosures: Our management uses certain "non-GAAP" operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our GAAP financial information presented in accordance with U.S. GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include: Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income before net interest expense, income tax expense, depreciation and amortization expense, including amortization of customer contract intangible assets, which is included as a component of net revenues in our accompanying consolidated statements of income. 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. 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: 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 on a current and on-going basis; Delek Logistics' ability to incur and service debt and fund capital expenditures; and the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities. We believe that the presentation of EBITDA 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) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 9,672 $ 3,755 Accounts receivable 56,993 41,131 Accounts receivable from related parties 36,588 28,443 Inventory 1,655 2,264 Other current assets 615 676 Total current assets 105,523 76,269 Property, plant and equipment: Property, plant and equipment 1,336,053 1,320,510 Less: accumulated depreciation (406,009 ) (384,359 ) Property, plant and equipment, net 930,044 936,151 Equity method investments 238,185 241,337 Customer relationship intangible, net 176,811 181,336 Marketing contract intangible, net 100,352 102,155 Rights-of-way, net 60,141 59,536 Goodwill 12,203 12,203 Operating lease right-of-use assets 17,641 19,043 Other non-current assets 13,471 14,216 Total assets $ 1,654,371 $ 1,642,246 LIABILITIES AND DEFICIT Current liabilities: Accounts payable $ 26,313 $ 26,290 Current portion of long-term debt — 30,000 Interest payable 12,710 5,805 Excise and other taxes payable 7,638 10,321 Current portion of operating lease liabilities 6,442 6,697 Accrued expenses and other current liabilities 4,098 11,477 Total current liabilities 57,201 90,590 Non-current liabilities: Long-term debt, net of current portion 1,601,226 1,673,789 Operating lease liabilities, net of current portion 7,367 8,335 Asset retirement obligations 10,225 10,038 Other non-current liabilities 20,819 21,363 Total non-current liabilities 1,639,637 1,713,525 Total liabilities 1,696,838 1,804,115 Equity (Deficit): Common unitholders - public; 12,898,253 units issued and outstanding at March 31, 2024 (9,299,763 at December 31, 2023) 290,051 160,402 Common unitholders - Delek Holdings; 34,311,278 units issued and outstanding at March 31, 2024 (34,311,278 at December 31, 2023) (332,518 ) (322,271 ) Total deficit (42,467 ) (161,869 ) Total liabilities and deficit $ 1,654,371 $ 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 March 31, 2024 2023 Net revenues: Affiliate $ 139,625 $ 124,999 Third-party 112,450 118,526 Net revenues 252,075 243,525 Cost of sales: Cost of materials and other - affiliate 92,882 91,071 Cost of materials and other - third party 30,810 35,025 Operating expenses (excluding depreciation and amortization presented below) 31,695 24,215 Depreciation and amortization 25,167 19,764 Total cost of sales 180,554 170,075 Operating expenses related to wholesale business (excluding depreciation and amortization presented below) 221 525 General and administrative expenses 4,863 7,510 Depreciation and amortization 1,328 1,341 Loss on disposal of assets 567 142 Total operating costs and expenses 187,533 179,593 Operating income 64,542 63,932 Interest expense, net 40,229 32,581 Income from equity method investments (8,490 ) (6,316 ) Other income, net (171 ) (2 ) Total non-operating expenses, net 31,568 26,263 Income before income tax expense 32,974 37,669 Income tax expense 326 302 Net income attributable to partners $ 32,648 $ 37,367 Comprehensive income attributable to partners $ 32,648 $ 37,367 Net income per limited partner unit: Basic $ 0.74 $ 0.86 Diluted $ 0.73 $ 0.86 Weighted average limited partner units outstanding: Basic 44,406,356 43,569,963 Diluted 44,422,817 43,585,297 Cash distribution per common limited partner unit $ 1.070 $ 1.025 Delek Logistics Partners, LP Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Cash flows from operating activities Net cash provided by operating activities $ 43,858 $ 29,190 Cash flows from investing activities Net cash used in investing activities (9,861 ) (26,979 ) Cash flows from financing activities Net cash (used in) provided by financing activities (28,080 ) 783 Net increase in cash and cash equivalents 5,917 2,994 Cash and cash equivalents at the beginning of the period 3,755 7,970 Cash and cash equivalents at the end of the period $ 9,672 $ 10,964 Delek Logistics Partners, LP Reconciliation of Amounts Reported Under U.S. GAAP (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Reconciliation of Net Income to EBITDA: Net income $ 32,648 $ 37,367 Add: Income tax expense 326 302 Depreciation and amortization 26,495 21,105 Amortization of marketing contract intangible 1,803 1,803 Interest expense, net 40,229 32,581 EBITDA $ 101,501 $ 93,158 Reconciliation of net cash from operating activities to distributable cash flow: Net cash provided by operating activities $ 43,858 $ 29,190 Changes in assets and liabilities 25,787 37,670 Non-cash lease expense (1,939 ) (2,200 ) Distributions from equity method investments in investing activities 2,133 1,440 Regulatory and sustaining capital expenditures not distributable (1,279 ) (4,246 ) Reimbursement from Delek Holdings for capital expenditures 286 337 Accretion of asset retirement obligations (187 ) (176 ) Deferred income taxes (101 ) (111 ) Loss on disposal of assets (567 ) (142 ) Distributable Cash Flow $ 67,991 $ 61,762 Delek Logistics Partners, LP Distributable Coverage Ratio Calculation (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Distributions to partners of Delek Logistics, LP $ 50,514 $ 44,664 Distributable cash flow $ 67,991 $ 61,762 Distributable cash flow coverage ratio (1) 1.35x 1.38x (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 March 31, 2024 Gathering and Processing Wholesale Marketing and Terminalling Storage and Transportation Investments in Pipeline Joint Ventures Corporate and Other Consolidated Net revenues: Affiliate $ 52,553 $ 52,882 $ 34,190 $ — $ — $ 139,625 Third party 43,330 66,388 2,732 — — 112,450 Total revenue $ 95,883 $ 119,270 $ 36,922 $ — $ — $ 252,075 Segment EBITDA $ 57,772 $ 25,274 $ 18,127 $ 8,477 $ (8,149 ) $ 101,501 Depreciation and amortization 21,154 1,712 2,775 — 854 26,495 Amortization of customer contract intangible — 1,803 — — — 1,803 Interest expense, net — — — — 40,229 40,229 Income tax expense 326 Net income $ 32,648 Capital spending $ 14,723 $ (84 ) $ 526 $ — $ — $ 15,165 Three Months Ended March 31, 2023 Gathering and Processing Wholesale Marketing and Terminalling Storage and Transportation Investments in Pipeline Joint Ventures Corporate and Other Consolidated Net revenues: Affiliate $ 52,761 $ 33,751 $ 38,487 $ — $ — $ 124,999 Third party 39,671 78,558 297 — — 118,526 Total revenue $ 92,432 $ 112,309 $ 38,784 $ — $ — $ 243,525 Segment EBITDA $ 55,445 $ 21,954 $ 13,422 $ 6,316 $ (3,979 ) $ 93,158 Depreciation and amortization 16,447 1,689 2,102 — 867 21,105 Amortization of customer contract intangible — 1,803 — — — 1,803 Interest expense, net — — — — 32,581 32,581 Income tax expense 302 Net income $ 37,367 Capital spending $ 32,789 $ 3,116 $ 196 $ — $ — $ 36,101 Delek Logistics Partners, LP Segment Capital Spending (In thousands) Three Months Ended March 31, Gathering and Processing 2024 2023 Regulatory capital spending $ — $ — Sustaining capital spending 837 — Growth capital spending 13,886 32,789 Segment capital spending $ 14,723 $ 32,789 Wholesale Marketing and Terminalling Regulatory capital spending (72 ) 61 Sustaining capital spending (12 ) 2,931 Growth capital spending — 124 Segment capital spending $ (84 ) $ 3,116 Storage and Transportation Regulatory capital spending $ — $ 24 Sustaining capital spending 526 172 Growth capital spending $ — $ — Segment capital spending $ 526 $ 196 Consolidated Regulatory capital spending $ (72 ) $ 85 Sustaining capital spending 1,351 3,103 Growth capital spending 13,886 32,913 Total capital spending $ 15,165 $ 36,101 Delek Logistics Partners, LP Segment Operating Data (Unaudited) Three Months Ended March 31, 2024 2023 Gathering and Processing Segment: Throughputs (average bpd) El Dorado Assets: Crude pipelines (non-gathered) 73,011 63,528 Refined products pipelines to Enterprise Systems 63,234 55,003 El Dorado Gathering System 12,987 13,872 East Texas Crude Logistics System 19,702 22,670 Midland Gathering System 213,458 222,112 Plains Connection System 256,844 240,597 Delaware Gathering Assets: Natural Gas Gathering and Processing (Mcfd(1)) 76,322 74,716 Crude Oil Gathering (average bpd) 123,509 103,725 Water Disposal and Recycling (average bpd) 120,269 88,182 Wholesale Marketing and Terminalling Segment: East Texas - Tyler Refinery sales volumes (average bpd) (2) 66,475 34,816 Big Spring marketing throughputs (average bpd) 76,615 78,380 West Texas marketing throughputs (average bpd) 9,976 8,696 West Texas gross margin per barrel $ 2.15 $ 5.47 Terminalling throughputs (average bpd) (3) 136,614 93,305 (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/20240507761042/en/Contacts Investor Relations and Media/Public Affairs Contact: Rosy Zuklic, Vice President of Investor Relations and Market Intelligence investor.relations@delekus.com; rosy.zuklic@delekus.com; 615-767-4344 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Delek Logistics Reports First Quarter 2024 Results By: Delek Logistics Partners, LP via Business Wire May 07, 2024 at 07:30 AM EDT Net income attributable to all partners of $32.6 million Quarterly EBITDA of $101.5 million Distributable cash flow of $68.0 million, DCF coverage ratio of 1.35x In 2024, successfully executed $850 million debt offering and $138 million equity offering: Improved liquidity from approximately $300.0 million to $800.0 million Added 3.6 million units for a total 47.2 million outstanding units and increased volume activity Improved leverage ratio to 4.01x from 4.34x at year-end 2023 Delivered 45 consecutive quarters of distribution growth with recent increase to $1.070/unit Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the first quarter 2024, with reported net income attributable to all partners of $32.6 million, or $0.73 per diluted common limited partner unit. This compares to net income attributable to all partners of $37.4 million, or $0.86 per diluted common limited partner unit, in the first quarter 2023. The decrease in net income attributable to all partners was driven by higher interest expense. Net cash provided in operating activities was $43.9 million in the first quarter 2024 compared to $29.2 million in the first quarter 2023. Distributable cash flow was $68.0 million in the first quarter 2024, compared to $61.8 million in the first quarter 2023. For the first quarter 2024, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $101.5 million compared to $93.2 million in the first quarter 2023. “Delek Logistics had a strong quarter, delivering another solid financial and operational performance,” said Avigal Soreq, President of Delek Logistics' general partner. "I'm proud of the team for successfully executing the debt and equity offerings during the quarter," Soreq continued. "We improved DKL's financial strength and flexibility with these transactions. The leverage ratio was lowered to 4.01x, down from 4.34x at year-end 2023, and liquidity was improved to approximately $800.0 million. Additionally, we saw new investor interest and increased volume activity in the units, enhancing our opportunities with DKL." “In April, the Board continued its commitment to return value to unitholders and approved the 45th consecutive increase in the quarterly distribution to $1.070 per unit," Mr. Soreq concluded. Distribution and Liquidity On April 25, 2024, Delek Logistics declared a quarterly cash distribution of $1.070 per common limited partner unit for the first quarter 2024. This distribution will be paid on May 15, 2024 to unitholders of record on May 8, 2024. This represents a 1.4% increase from the fourth quarter 2023 distribution of $1.055 per common limited partner unit, and a 4.4% increase over Delek Logistics’ first quarter 2023 distribution of $1.025 per common limited partner unit. For the first quarter 2024, the total cash distribution declared to all partners was approximately $50.5 million, resulting in a distributable cash flow ("DCF") coverage ratio of 1.35x. As of March 31, 2024, Delek Logistics had total debt of approximately $1.60 billion and cash of $9.7 million. Additional borrowing capacity, subject to certain covenants, under the $1.15 billion third party revolving credit facility was $584.8 million. The total leverage ratio as of March 31, 2024 of approximately 4.01x was within the requirements of the maximum allowable leverage ratio under the credit facility. Consolidated Operating Results First quarter 2024, EBITDA was $101.5 million compared with $93.2 million in the first quarter 2023. The $8.3 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. The increase was partially offset by higher operating expenses driven by the growth in operations. Gathering and Processing Segment EBITDA in the first quarter 2024 was $57.8 million compared with $55.4 million in the first quarter 2023. The increase was primarily due to higher throughput from Permian Basin assets. Wholesale Marketing and Terminalling Segment EBITDA in the first quarter 2024 was $25.3 million, compared with first quarter 2023 EBITDA of $22.0 million. The increase was primarily due to higher terminalling utilization. Storage and Transportation Segment EBITDA in the first quarter 2024 was $18.1 million, compared with $13.4 million in the first quarter 2023. The increase was primarily due to increased storage and transportation rates. Investments in Pipeline Joint Ventures Segment During the first quarter 2024, income from equity method investments was $8.5 million compared to $6.3 million in the first quarter 2023. Corporate EBITDA in the first quarter 2024 was a loss of $8.1 million compared to a loss of $4.0 million in the first quarter 2023. First Quarter 2024 Results | Conference Call Information Delek Logistics will hold a conference call to discuss its first quarter 2024 results on Tuesday, May 7, 2024 at 11:30 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekLogistics.com. Participants are encouraged to register at least 15 minutes early to download and install any necessary software. An archived version of the replay will also be available at www.DelekLogistics.com for 90 days. About Delek Logistics Partners, LP Delek Logistics is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. Through its owned assets and joint ventures located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the Gulf Coast region, Delek Logistics provides gathering, pipeline and other transportation services primarily for crude oil and natural gas customers, storage, wholesale marketing and terminalling services primarily for intermediate and refined product customers, and water disposal and recycling services. Delek US Holdings, Inc. ("Delek US") owns the general partner interest as well as a majority limited partner interest in Delek Logistics, and is also a significant customer. Safe Harbor Provisions Regarding Forward-Looking Statements This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or similar expressions, as well as statements in the future tense, and can be impacted by numerous factors, including the fact that a significant portion of Delek Logistics' revenue is derived from Delek US, thereby subjecting us to Delek US' business risks; risks relating to the securities markets generally; risks and costs relating to the age and operational hazards of our assets including, without limitation, costs, penalties, regulatory or legal actions and other effects related to releases, spills and other hazards inherent in transporting and storing crude oil and intermediate and finished petroleum products; the impact of adverse market conditions affecting the utilization of Delek Logistics' assets and business performance, including margins generated by its wholesale fuel business; risks and uncertainties related to the integration of the 3 Bear business following the recent acquisition; uncertainties regarding future decisions by OPEC regarding production and pricing disputes between OPEC members and Russia; an inability of Delek US to grow as expected as it relates to our potential future growth opportunities, including dropdowns, and other potential benefits; projected capital expenditures, scheduled turnaround activity; the results of our investments in joint ventures; adverse changes in laws including with respect to tax and regulatory matters; and other risks as disclosed in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports and filings with the United States Securities and Exchange Commission. Forward-looking statements include, but are not limited to, statements regarding future growth at Delek Logistics; distributions and the amounts and timing thereof; potential dropdown inventory; projected benefits of the Delaware Gathering acquisition; expected earnings or returns from joint ventures or other acquisitions; expansion projects; ability to create long-term value for our unit holders; financial flexibility and borrowing capacity; and distribution growth. Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Delek Logistics undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof, except as required by applicable law or regulation. Non-GAAP Disclosures: Our management uses certain "non-GAAP" operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our GAAP financial information presented in accordance with U.S. GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include: Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income before net interest expense, income tax expense, depreciation and amortization expense, including amortization of customer contract intangible assets, which is included as a component of net revenues in our accompanying consolidated statements of income. 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. 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: 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 on a current and on-going basis; Delek Logistics' ability to incur and service debt and fund capital expenditures; and the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities. We believe that the presentation of EBITDA 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) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 9,672 $ 3,755 Accounts receivable 56,993 41,131 Accounts receivable from related parties 36,588 28,443 Inventory 1,655 2,264 Other current assets 615 676 Total current assets 105,523 76,269 Property, plant and equipment: Property, plant and equipment 1,336,053 1,320,510 Less: accumulated depreciation (406,009 ) (384,359 ) Property, plant and equipment, net 930,044 936,151 Equity method investments 238,185 241,337 Customer relationship intangible, net 176,811 181,336 Marketing contract intangible, net 100,352 102,155 Rights-of-way, net 60,141 59,536 Goodwill 12,203 12,203 Operating lease right-of-use assets 17,641 19,043 Other non-current assets 13,471 14,216 Total assets $ 1,654,371 $ 1,642,246 LIABILITIES AND DEFICIT Current liabilities: Accounts payable $ 26,313 $ 26,290 Current portion of long-term debt — 30,000 Interest payable 12,710 5,805 Excise and other taxes payable 7,638 10,321 Current portion of operating lease liabilities 6,442 6,697 Accrued expenses and other current liabilities 4,098 11,477 Total current liabilities 57,201 90,590 Non-current liabilities: Long-term debt, net of current portion 1,601,226 1,673,789 Operating lease liabilities, net of current portion 7,367 8,335 Asset retirement obligations 10,225 10,038 Other non-current liabilities 20,819 21,363 Total non-current liabilities 1,639,637 1,713,525 Total liabilities 1,696,838 1,804,115 Equity (Deficit): Common unitholders - public; 12,898,253 units issued and outstanding at March 31, 2024 (9,299,763 at December 31, 2023) 290,051 160,402 Common unitholders - Delek Holdings; 34,311,278 units issued and outstanding at March 31, 2024 (34,311,278 at December 31, 2023) (332,518 ) (322,271 ) Total deficit (42,467 ) (161,869 ) Total liabilities and deficit $ 1,654,371 $ 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 March 31, 2024 2023 Net revenues: Affiliate $ 139,625 $ 124,999 Third-party 112,450 118,526 Net revenues 252,075 243,525 Cost of sales: Cost of materials and other - affiliate 92,882 91,071 Cost of materials and other - third party 30,810 35,025 Operating expenses (excluding depreciation and amortization presented below) 31,695 24,215 Depreciation and amortization 25,167 19,764 Total cost of sales 180,554 170,075 Operating expenses related to wholesale business (excluding depreciation and amortization presented below) 221 525 General and administrative expenses 4,863 7,510 Depreciation and amortization 1,328 1,341 Loss on disposal of assets 567 142 Total operating costs and expenses 187,533 179,593 Operating income 64,542 63,932 Interest expense, net 40,229 32,581 Income from equity method investments (8,490 ) (6,316 ) Other income, net (171 ) (2 ) Total non-operating expenses, net 31,568 26,263 Income before income tax expense 32,974 37,669 Income tax expense 326 302 Net income attributable to partners $ 32,648 $ 37,367 Comprehensive income attributable to partners $ 32,648 $ 37,367 Net income per limited partner unit: Basic $ 0.74 $ 0.86 Diluted $ 0.73 $ 0.86 Weighted average limited partner units outstanding: Basic 44,406,356 43,569,963 Diluted 44,422,817 43,585,297 Cash distribution per common limited partner unit $ 1.070 $ 1.025 Delek Logistics Partners, LP Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Cash flows from operating activities Net cash provided by operating activities $ 43,858 $ 29,190 Cash flows from investing activities Net cash used in investing activities (9,861 ) (26,979 ) Cash flows from financing activities Net cash (used in) provided by financing activities (28,080 ) 783 Net increase in cash and cash equivalents 5,917 2,994 Cash and cash equivalents at the beginning of the period 3,755 7,970 Cash and cash equivalents at the end of the period $ 9,672 $ 10,964 Delek Logistics Partners, LP Reconciliation of Amounts Reported Under U.S. GAAP (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Reconciliation of Net Income to EBITDA: Net income $ 32,648 $ 37,367 Add: Income tax expense 326 302 Depreciation and amortization 26,495 21,105 Amortization of marketing contract intangible 1,803 1,803 Interest expense, net 40,229 32,581 EBITDA $ 101,501 $ 93,158 Reconciliation of net cash from operating activities to distributable cash flow: Net cash provided by operating activities $ 43,858 $ 29,190 Changes in assets and liabilities 25,787 37,670 Non-cash lease expense (1,939 ) (2,200 ) Distributions from equity method investments in investing activities 2,133 1,440 Regulatory and sustaining capital expenditures not distributable (1,279 ) (4,246 ) Reimbursement from Delek Holdings for capital expenditures 286 337 Accretion of asset retirement obligations (187 ) (176 ) Deferred income taxes (101 ) (111 ) Loss on disposal of assets (567 ) (142 ) Distributable Cash Flow $ 67,991 $ 61,762 Delek Logistics Partners, LP Distributable Coverage Ratio Calculation (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Distributions to partners of Delek Logistics, LP $ 50,514 $ 44,664 Distributable cash flow $ 67,991 $ 61,762 Distributable cash flow coverage ratio (1) 1.35x 1.38x (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 March 31, 2024 Gathering and Processing Wholesale Marketing and Terminalling Storage and Transportation Investments in Pipeline Joint Ventures Corporate and Other Consolidated Net revenues: Affiliate $ 52,553 $ 52,882 $ 34,190 $ — $ — $ 139,625 Third party 43,330 66,388 2,732 — — 112,450 Total revenue $ 95,883 $ 119,270 $ 36,922 $ — $ — $ 252,075 Segment EBITDA $ 57,772 $ 25,274 $ 18,127 $ 8,477 $ (8,149 ) $ 101,501 Depreciation and amortization 21,154 1,712 2,775 — 854 26,495 Amortization of customer contract intangible — 1,803 — — — 1,803 Interest expense, net — — — — 40,229 40,229 Income tax expense 326 Net income $ 32,648 Capital spending $ 14,723 $ (84 ) $ 526 $ — $ — $ 15,165 Three Months Ended March 31, 2023 Gathering and Processing Wholesale Marketing and Terminalling Storage and Transportation Investments in Pipeline Joint Ventures Corporate and Other Consolidated Net revenues: Affiliate $ 52,761 $ 33,751 $ 38,487 $ — $ — $ 124,999 Third party 39,671 78,558 297 — — 118,526 Total revenue $ 92,432 $ 112,309 $ 38,784 $ — $ — $ 243,525 Segment EBITDA $ 55,445 $ 21,954 $ 13,422 $ 6,316 $ (3,979 ) $ 93,158 Depreciation and amortization 16,447 1,689 2,102 — 867 21,105 Amortization of customer contract intangible — 1,803 — — — 1,803 Interest expense, net — — — — 32,581 32,581 Income tax expense 302 Net income $ 37,367 Capital spending $ 32,789 $ 3,116 $ 196 $ — $ — $ 36,101 Delek Logistics Partners, LP Segment Capital Spending (In thousands) Three Months Ended March 31, Gathering and Processing 2024 2023 Regulatory capital spending $ — $ — Sustaining capital spending 837 — Growth capital spending 13,886 32,789 Segment capital spending $ 14,723 $ 32,789 Wholesale Marketing and Terminalling Regulatory capital spending (72 ) 61 Sustaining capital spending (12 ) 2,931 Growth capital spending — 124 Segment capital spending $ (84 ) $ 3,116 Storage and Transportation Regulatory capital spending $ — $ 24 Sustaining capital spending 526 172 Growth capital spending $ — $ — Segment capital spending $ 526 $ 196 Consolidated Regulatory capital spending $ (72 ) $ 85 Sustaining capital spending 1,351 3,103 Growth capital spending 13,886 32,913 Total capital spending $ 15,165 $ 36,101 Delek Logistics Partners, LP Segment Operating Data (Unaudited) Three Months Ended March 31, 2024 2023 Gathering and Processing Segment: Throughputs (average bpd) El Dorado Assets: Crude pipelines (non-gathered) 73,011 63,528 Refined products pipelines to Enterprise Systems 63,234 55,003 El Dorado Gathering System 12,987 13,872 East Texas Crude Logistics System 19,702 22,670 Midland Gathering System 213,458 222,112 Plains Connection System 256,844 240,597 Delaware Gathering Assets: Natural Gas Gathering and Processing (Mcfd(1)) 76,322 74,716 Crude Oil Gathering (average bpd) 123,509 103,725 Water Disposal and Recycling (average bpd) 120,269 88,182 Wholesale Marketing and Terminalling Segment: East Texas - Tyler Refinery sales volumes (average bpd) (2) 66,475 34,816 Big Spring marketing throughputs (average bpd) 76,615 78,380 West Texas marketing throughputs (average bpd) 9,976 8,696 West Texas gross margin per barrel $ 2.15 $ 5.47 Terminalling throughputs (average bpd) (3) 136,614 93,305 (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/20240507761042/en/Contacts Investor Relations and Media/Public Affairs Contact: Rosy Zuklic, Vice President of Investor Relations and Market Intelligence investor.relations@delekus.com; rosy.zuklic@delekus.com; 615-767-4344
Net income attributable to all partners of $32.6 million Quarterly EBITDA of $101.5 million Distributable cash flow of $68.0 million, DCF coverage ratio of 1.35x In 2024, successfully executed $850 million debt offering and $138 million equity offering: Improved liquidity from approximately $300.0 million to $800.0 million Added 3.6 million units for a total 47.2 million outstanding units and increased volume activity Improved leverage ratio to 4.01x from 4.34x at year-end 2023 Delivered 45 consecutive quarters of distribution growth with recent increase to $1.070/unit
Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the first quarter 2024, with reported net income attributable to all partners of $32.6 million, or $0.73 per diluted common limited partner unit. This compares to net income attributable to all partners of $37.4 million, or $0.86 per diluted common limited partner unit, in the first quarter 2023. The decrease in net income attributable to all partners was driven by higher interest expense. Net cash provided in operating activities was $43.9 million in the first quarter 2024 compared to $29.2 million in the first quarter 2023. Distributable cash flow was $68.0 million in the first quarter 2024, compared to $61.8 million in the first quarter 2023. For the first quarter 2024, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $101.5 million compared to $93.2 million in the first quarter 2023. “Delek Logistics had a strong quarter, delivering another solid financial and operational performance,” said Avigal Soreq, President of Delek Logistics' general partner. "I'm proud of the team for successfully executing the debt and equity offerings during the quarter," Soreq continued. "We improved DKL's financial strength and flexibility with these transactions. The leverage ratio was lowered to 4.01x, down from 4.34x at year-end 2023, and liquidity was improved to approximately $800.0 million. Additionally, we saw new investor interest and increased volume activity in the units, enhancing our opportunities with DKL." “In April, the Board continued its commitment to return value to unitholders and approved the 45th consecutive increase in the quarterly distribution to $1.070 per unit," Mr. Soreq concluded. Distribution and Liquidity On April 25, 2024, Delek Logistics declared a quarterly cash distribution of $1.070 per common limited partner unit for the first quarter 2024. This distribution will be paid on May 15, 2024 to unitholders of record on May 8, 2024. This represents a 1.4% increase from the fourth quarter 2023 distribution of $1.055 per common limited partner unit, and a 4.4% increase over Delek Logistics’ first quarter 2023 distribution of $1.025 per common limited partner unit. For the first quarter 2024, the total cash distribution declared to all partners was approximately $50.5 million, resulting in a distributable cash flow ("DCF") coverage ratio of 1.35x. As of March 31, 2024, Delek Logistics had total debt of approximately $1.60 billion and cash of $9.7 million. Additional borrowing capacity, subject to certain covenants, under the $1.15 billion third party revolving credit facility was $584.8 million. The total leverage ratio as of March 31, 2024 of approximately 4.01x was within the requirements of the maximum allowable leverage ratio under the credit facility. Consolidated Operating Results First quarter 2024, EBITDA was $101.5 million compared with $93.2 million in the first quarter 2023. The $8.3 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. The increase was partially offset by higher operating expenses driven by the growth in operations. Gathering and Processing Segment EBITDA in the first quarter 2024 was $57.8 million compared with $55.4 million in the first quarter 2023. The increase was primarily due to higher throughput from Permian Basin assets. Wholesale Marketing and Terminalling Segment EBITDA in the first quarter 2024 was $25.3 million, compared with first quarter 2023 EBITDA of $22.0 million. The increase was primarily due to higher terminalling utilization. Storage and Transportation Segment EBITDA in the first quarter 2024 was $18.1 million, compared with $13.4 million in the first quarter 2023. The increase was primarily due to increased storage and transportation rates. Investments in Pipeline Joint Ventures Segment During the first quarter 2024, income from equity method investments was $8.5 million compared to $6.3 million in the first quarter 2023. Corporate EBITDA in the first quarter 2024 was a loss of $8.1 million compared to a loss of $4.0 million in the first quarter 2023. First Quarter 2024 Results | Conference Call Information Delek Logistics will hold a conference call to discuss its first quarter 2024 results on Tuesday, May 7, 2024 at 11:30 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekLogistics.com. Participants are encouraged to register at least 15 minutes early to download and install any necessary software. An archived version of the replay will also be available at www.DelekLogistics.com for 90 days. About Delek Logistics Partners, LP Delek Logistics is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. Through its owned assets and joint ventures located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the Gulf Coast region, Delek Logistics provides gathering, pipeline and other transportation services primarily for crude oil and natural gas customers, storage, wholesale marketing and terminalling services primarily for intermediate and refined product customers, and water disposal and recycling services. Delek US Holdings, Inc. ("Delek US") owns the general partner interest as well as a majority limited partner interest in Delek Logistics, and is also a significant customer. Safe Harbor Provisions Regarding Forward-Looking Statements This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or similar expressions, as well as statements in the future tense, and can be impacted by numerous factors, including the fact that a significant portion of Delek Logistics' revenue is derived from Delek US, thereby subjecting us to Delek US' business risks; risks relating to the securities markets generally; risks and costs relating to the age and operational hazards of our assets including, without limitation, costs, penalties, regulatory or legal actions and other effects related to releases, spills and other hazards inherent in transporting and storing crude oil and intermediate and finished petroleum products; the impact of adverse market conditions affecting the utilization of Delek Logistics' assets and business performance, including margins generated by its wholesale fuel business; risks and uncertainties related to the integration of the 3 Bear business following the recent acquisition; uncertainties regarding future decisions by OPEC regarding production and pricing disputes between OPEC members and Russia; an inability of Delek US to grow as expected as it relates to our potential future growth opportunities, including dropdowns, and other potential benefits; projected capital expenditures, scheduled turnaround activity; the results of our investments in joint ventures; adverse changes in laws including with respect to tax and regulatory matters; and other risks as disclosed in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports and filings with the United States Securities and Exchange Commission. Forward-looking statements include, but are not limited to, statements regarding future growth at Delek Logistics; distributions and the amounts and timing thereof; potential dropdown inventory; projected benefits of the Delaware Gathering acquisition; expected earnings or returns from joint ventures or other acquisitions; expansion projects; ability to create long-term value for our unit holders; financial flexibility and borrowing capacity; and distribution growth. Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Delek Logistics undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof, except as required by applicable law or regulation. Non-GAAP Disclosures: Our management uses certain "non-GAAP" operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our GAAP financial information presented in accordance with U.S. GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include: Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income before net interest expense, income tax expense, depreciation and amortization expense, including amortization of customer contract intangible assets, which is included as a component of net revenues in our accompanying consolidated statements of income. 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. 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: 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 on a current and on-going basis; Delek Logistics' ability to incur and service debt and fund capital expenditures; and the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities. We believe that the presentation of EBITDA 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) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 9,672 $ 3,755 Accounts receivable 56,993 41,131 Accounts receivable from related parties 36,588 28,443 Inventory 1,655 2,264 Other current assets 615 676 Total current assets 105,523 76,269 Property, plant and equipment: Property, plant and equipment 1,336,053 1,320,510 Less: accumulated depreciation (406,009 ) (384,359 ) Property, plant and equipment, net 930,044 936,151 Equity method investments 238,185 241,337 Customer relationship intangible, net 176,811 181,336 Marketing contract intangible, net 100,352 102,155 Rights-of-way, net 60,141 59,536 Goodwill 12,203 12,203 Operating lease right-of-use assets 17,641 19,043 Other non-current assets 13,471 14,216 Total assets $ 1,654,371 $ 1,642,246 LIABILITIES AND DEFICIT Current liabilities: Accounts payable $ 26,313 $ 26,290 Current portion of long-term debt — 30,000 Interest payable 12,710 5,805 Excise and other taxes payable 7,638 10,321 Current portion of operating lease liabilities 6,442 6,697 Accrued expenses and other current liabilities 4,098 11,477 Total current liabilities 57,201 90,590 Non-current liabilities: Long-term debt, net of current portion 1,601,226 1,673,789 Operating lease liabilities, net of current portion 7,367 8,335 Asset retirement obligations 10,225 10,038 Other non-current liabilities 20,819 21,363 Total non-current liabilities 1,639,637 1,713,525 Total liabilities 1,696,838 1,804,115 Equity (Deficit): Common unitholders - public; 12,898,253 units issued and outstanding at March 31, 2024 (9,299,763 at December 31, 2023) 290,051 160,402 Common unitholders - Delek Holdings; 34,311,278 units issued and outstanding at March 31, 2024 (34,311,278 at December 31, 2023) (332,518 ) (322,271 ) Total deficit (42,467 ) (161,869 ) Total liabilities and deficit $ 1,654,371 $ 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 March 31, 2024 2023 Net revenues: Affiliate $ 139,625 $ 124,999 Third-party 112,450 118,526 Net revenues 252,075 243,525 Cost of sales: Cost of materials and other - affiliate 92,882 91,071 Cost of materials and other - third party 30,810 35,025 Operating expenses (excluding depreciation and amortization presented below) 31,695 24,215 Depreciation and amortization 25,167 19,764 Total cost of sales 180,554 170,075 Operating expenses related to wholesale business (excluding depreciation and amortization presented below) 221 525 General and administrative expenses 4,863 7,510 Depreciation and amortization 1,328 1,341 Loss on disposal of assets 567 142 Total operating costs and expenses 187,533 179,593 Operating income 64,542 63,932 Interest expense, net 40,229 32,581 Income from equity method investments (8,490 ) (6,316 ) Other income, net (171 ) (2 ) Total non-operating expenses, net 31,568 26,263 Income before income tax expense 32,974 37,669 Income tax expense 326 302 Net income attributable to partners $ 32,648 $ 37,367 Comprehensive income attributable to partners $ 32,648 $ 37,367 Net income per limited partner unit: Basic $ 0.74 $ 0.86 Diluted $ 0.73 $ 0.86 Weighted average limited partner units outstanding: Basic 44,406,356 43,569,963 Diluted 44,422,817 43,585,297 Cash distribution per common limited partner unit $ 1.070 $ 1.025 Delek Logistics Partners, LP Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three Months Ended March 31, 2024 2023 Cash flows from operating activities Net cash provided by operating activities $ 43,858 $ 29,190 Cash flows from investing activities Net cash used in investing activities (9,861 ) (26,979 ) Cash flows from financing activities Net cash (used in) provided by financing activities (28,080 ) 783 Net increase in cash and cash equivalents 5,917 2,994 Cash and cash equivalents at the beginning of the period 3,755 7,970 Cash and cash equivalents at the end of the period $ 9,672 $ 10,964 Delek Logistics Partners, LP Reconciliation of Amounts Reported Under U.S. GAAP (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Reconciliation of Net Income to EBITDA: Net income $ 32,648 $ 37,367 Add: Income tax expense 326 302 Depreciation and amortization 26,495 21,105 Amortization of marketing contract intangible 1,803 1,803 Interest expense, net 40,229 32,581 EBITDA $ 101,501 $ 93,158 Reconciliation of net cash from operating activities to distributable cash flow: Net cash provided by operating activities $ 43,858 $ 29,190 Changes in assets and liabilities 25,787 37,670 Non-cash lease expense (1,939 ) (2,200 ) Distributions from equity method investments in investing activities 2,133 1,440 Regulatory and sustaining capital expenditures not distributable (1,279 ) (4,246 ) Reimbursement from Delek Holdings for capital expenditures 286 337 Accretion of asset retirement obligations (187 ) (176 ) Deferred income taxes (101 ) (111 ) Loss on disposal of assets (567 ) (142 ) Distributable Cash Flow $ 67,991 $ 61,762 Delek Logistics Partners, LP Distributable Coverage Ratio Calculation (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Distributions to partners of Delek Logistics, LP $ 50,514 $ 44,664 Distributable cash flow $ 67,991 $ 61,762 Distributable cash flow coverage ratio (1) 1.35x 1.38x (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 March 31, 2024 Gathering and Processing Wholesale Marketing and Terminalling Storage and Transportation Investments in Pipeline Joint Ventures Corporate and Other Consolidated Net revenues: Affiliate $ 52,553 $ 52,882 $ 34,190 $ — $ — $ 139,625 Third party 43,330 66,388 2,732 — — 112,450 Total revenue $ 95,883 $ 119,270 $ 36,922 $ — $ — $ 252,075 Segment EBITDA $ 57,772 $ 25,274 $ 18,127 $ 8,477 $ (8,149 ) $ 101,501 Depreciation and amortization 21,154 1,712 2,775 — 854 26,495 Amortization of customer contract intangible — 1,803 — — — 1,803 Interest expense, net — — — — 40,229 40,229 Income tax expense 326 Net income $ 32,648 Capital spending $ 14,723 $ (84 ) $ 526 $ — $ — $ 15,165 Three Months Ended March 31, 2023 Gathering and Processing Wholesale Marketing and Terminalling Storage and Transportation Investments in Pipeline Joint Ventures Corporate and Other Consolidated Net revenues: Affiliate $ 52,761 $ 33,751 $ 38,487 $ — $ — $ 124,999 Third party 39,671 78,558 297 — — 118,526 Total revenue $ 92,432 $ 112,309 $ 38,784 $ — $ — $ 243,525 Segment EBITDA $ 55,445 $ 21,954 $ 13,422 $ 6,316 $ (3,979 ) $ 93,158 Depreciation and amortization 16,447 1,689 2,102 — 867 21,105 Amortization of customer contract intangible — 1,803 — — — 1,803 Interest expense, net — — — — 32,581 32,581 Income tax expense 302 Net income $ 37,367 Capital spending $ 32,789 $ 3,116 $ 196 $ — $ — $ 36,101 Delek Logistics Partners, LP Segment Capital Spending (In thousands) Three Months Ended March 31, Gathering and Processing 2024 2023 Regulatory capital spending $ — $ — Sustaining capital spending 837 — Growth capital spending 13,886 32,789 Segment capital spending $ 14,723 $ 32,789 Wholesale Marketing and Terminalling Regulatory capital spending (72 ) 61 Sustaining capital spending (12 ) 2,931 Growth capital spending — 124 Segment capital spending $ (84 ) $ 3,116 Storage and Transportation Regulatory capital spending $ — $ 24 Sustaining capital spending 526 172 Growth capital spending $ — $ — Segment capital spending $ 526 $ 196 Consolidated Regulatory capital spending $ (72 ) $ 85 Sustaining capital spending 1,351 3,103 Growth capital spending 13,886 32,913 Total capital spending $ 15,165 $ 36,101 Delek Logistics Partners, LP Segment Operating Data (Unaudited) Three Months Ended March 31, 2024 2023 Gathering and Processing Segment: Throughputs (average bpd) El Dorado Assets: Crude pipelines (non-gathered) 73,011 63,528 Refined products pipelines to Enterprise Systems 63,234 55,003 El Dorado Gathering System 12,987 13,872 East Texas Crude Logistics System 19,702 22,670 Midland Gathering System 213,458 222,112 Plains Connection System 256,844 240,597 Delaware Gathering Assets: Natural Gas Gathering and Processing (Mcfd(1)) 76,322 74,716 Crude Oil Gathering (average bpd) 123,509 103,725 Water Disposal and Recycling (average bpd) 120,269 88,182 Wholesale Marketing and Terminalling Segment: East Texas - Tyler Refinery sales volumes (average bpd) (2) 66,475 34,816 Big Spring marketing throughputs (average bpd) 76,615 78,380 West Texas marketing throughputs (average bpd) 9,976 8,696 West Texas gross margin per barrel $ 2.15 $ 5.47 Terminalling throughputs (average bpd) (3) 136,614 93,305 (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/20240507761042/en/
Investor Relations and Media/Public Affairs Contact: Rosy Zuklic, Vice President of Investor Relations and Market Intelligence investor.relations@delekus.com; rosy.zuklic@delekus.com; 615-767-4344