Delek Logistics Partners, LP Reports Second Quarter 2022 Results

Rhea-AI Summary

Delek Logistics Partners (NYSE: DKL) reported a net income of $32.2 million for Q2 2022, down from $43.2 million in Q2 2021. EBITDA stood at $64.5 million, including $6.2 million in acquisition-related expenses. The recent acquisition of 3 Bear expanded revenue sources and geographic reach. The quarterly distribution increased by 4.8% to $0.985/unit, marking 38 consecutive quarters of growth. Total debt was approximately $1.52 billion, with a leverage ratio of 4.7x, within acceptable limits.

Positive

• 38 consecutive quarters of distribution growth.
• Recent acquisition of 3 Bear enhances revenue and product diversity.
• Quarterly distribution increased by 4.8% to $0.985/unit.

Negative

• Net income decreased by $11 million year-over-year.
• EBITDA declined to $64.5 million from $66.8 million in Q2 2021.

• Reported second quarter net income attributable to all partners of $32.2 million
• EBITDA of $64.5 million including approximately $6.2 million of adverse acquisition related expenses
• Delivered 38 consecutive quarters of distribution growth with recent increase to $0.985/unit; reflects 4.8% increase y/y
• Closed 3 Bear acquisition on June 1, 2022; expands third party revenue, product mix and geography in Permian
• Delek Permian Gathering volumes expected to approximately double by end of 3Q22 from 4Q21 levels

BRENTWOOD, Tenn., Aug. 4, 2022 /PRNewswire/ -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the second quarter 2022. For the three months ended June 30, 2022, Delek Logistics reported net income attributable to all partners of $32.2 million, or $0.74 per diluted common limited partner unit. This compares to net income attributable to all partners of $43.2 million, or $1.00 per diluted common limited partner unit, in the second quarter 2021. Net cash from operating activities was $85.1 million in the second quarter 2022 compared to $85.8 million in the second quarter 2021. Distributable cash flow, as adjusted⁽¹⁾ was $55.6 million in the second quarter 2022, compared to $53.8 million in the second quarter 2021.   

For the second quarter 2022, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $64.5 million (including $6.2 million of adverse closing costs associated with 3 Bear Delaware - NM, LLC) compared to $66.8 million in the second quarter 2021. 

Avigal Soreq, President of Delek Logistics' general partner, stated, "We are excited to welcome the 3 Bear team to Delek Logistics. This is a transformational acquisition as it increases our third party revenue, expands our product mix to include natural gas and water and diversifies our geographic footprint into the Delaware portion of the Permian basin. Between our legacy Midland assets and newly acquired Delaware assets, we are concentrated in one of the most prolific basins in the world. Returning cash to unitholders has been a longstanding priority of the partnership and I'm proud to continue that tradition with the 38th consecutive increase in the quarterly distribution of $0.985 per unit."

Uzi Yemin, Executive Chairman of Delek Logistics, remarked, "DKL has enjoyed significant growth since becoming a public company providing stable EBITDA throughout various business cycles and delivering consistent quarterly distribution increases over time. The partnership is well positioned for the future and the recent 3 Bear acquisition progressively shifts DKL toward more of a stand-alone entity."

Distribution and Liquidity

On July 25, 2022, Delek Logistics declared a quarterly cash distribution of $0.985 per common limited partner unit for the second quarter 2022, which equates to $3.940 per common limited partner unit on an annualized basis. This distribution will be paid on August 11, 2022 to unitholders of record on August 4, 2022. This represents a 0.5% increase from the first quarter 2022 distribution of $0.980 per common limited partner unit, or $3.920 per common limited partner unit on an annualized basis, and a 4.8% increase over Delek Logistics' second quarter 2021 distribution of $0.940 per common limited partner unit, or $3.760 per common limited partner unit annualized. For the second quarter 2022, the total cash distribution declared to all partners was approximately $42.8 million, resulting in a distributable cash flow coverage ratio, as adjusted⁽¹⁾ of 1.30x.

As of June 30, 2022, Delek Logistics had total debt of approximately $1,522.2 million and cash of $13.8 million. Additional borrowing capacity, subject to certain covenants, under the $1.0 billion credit facility was $119.1 million. The total leverage ratio as of June 30, 2022 of approximately 4.7x was well within the requirements of the maximum allowable leverage ratio under the credit facility.

Consolidated Operating Results

Contribution margin in the second quarter 2022 increased to $69.4 million compared to $64.2 million in the second quarter 2021 primarily as a result of an increase in refinery utilization rates at Delek US and incremental contribution margin attributable to the acquisition of 3 Bear Delaware - NM, LLC (the "3 Bear Acquisition") that closed on June 1, 2022 (the "Acquisition Date"). Second quarter 2022 EBITDA of $64.5 million benefited from the increased contribution margin as well as continued strong throughput on joint venture pipelines, offset by $6.2 million of transaction costs associated with the 3 Bear Acquisition, as compared to EBITDA of $66.8 million in the  second quarter 2021. Net income attributable to all partners for the second quarter 2022 of $43.2 million reflected a decrease of $11.1 million compared to the second quarter 2021, which is primarily comprised of the $5.2 million increase in contribution margin, offset by increases in interest costs, amortization and depreciation, and transaction costs related to the 3 Bear Acquisition totaling $14.3 million.

(1)	Represents distributable cash flows adjusted to exclude transaction costs associated with the 3 Bear Acquisition. See further discussion of this measure in the discussion of Non-GAAP Disclosures.

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Pipelines and Transportation Segment

Contribution margin in the second quarter 2022 was $48.4 million compared to $45.2 million in the second quarter 2021. The increase was primarily driven from strong refinery utilization rates at Delek US.

Wholesale Marketing and Terminalling Segment

During the second quarter 2022, contribution margin was $16.3 million compared to $19.0 million in the second quarter 2021. The decrease was primarily driven be lower margins in the West Texas wholesale business and lower contribution from Tyler assets compared to the second quarter 2021.

3 Bear Operations Segment

Our second quarter 2022 results were favorably impacted by the incremental contribution margin for the one month from the Acquisition Date through June 30, 2022. Contribution margin in the 3 Bear Operations Segment is largely driven by production volumes and gathering activities during the month, which are a function of both producer activities as well as our capacity, subject to the dedicated acreage agreements and the portions of acreage which have been developed, the extent to which connection points and interconnects have been brought on-line, and the extent to which maintenance or other planned or unplanned operational disruptions may occur.

Investments in Pipeline Joint Ventures Segment

During the second quarter 2022, income from equity method investments was $7.1 million compared to $6.6 million in the second quarter 2021, primarily driven by increased volumes at both Caddo and Red River joint ventures.

Second Quarter 2022 Results | Conference Call Information

Delek Logistics will hold a conference call to discuss its second quarter 2022 results on Thursday, August 4, 2022 at 9:00 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekLogistics.com. Participants are encouraged to register at least 15 minutes early to download and install any necessary software.  An archived version of the replay will also be available at www.DelekLogistics.com for 90 days.    

Investors may also wish to listen to Delek US Holdings, Inc.'s (NYSE: DK) ("Delek US") second quarter 2022 earnings conference call on Thursday, August 4, 2022 at 10:00 a.m. Central Time and review Delek US' earnings press release. Market trends and information disclosed by Delek US may be relevant to Delek Logistics, as it is a consolidated subsidiary of Delek US. Investors can find information related to Delek US and the timing of its earnings release online by going to www.DelekUS.com.

About Delek Logistics Partners, LP

Delek Logistics Partners, LP, headquartered in Brentwood, Tennessee, was formed by Delek US and owns, operates, acquires and constructs crude oil, natural gas and refined products logistics and marketing assets.

Safe Harbor Provisions Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are "forward-looking statements," as that term is defined under the federal securities laws. These statements contain words such as "possible," "believe," "should," "could," "would," "predict," "plan," "estimate," "intend," "may," "anticipate," "will," "if,"  "expect" or similar expressions, as well as statements in the future tense, and can be impacted by numerous factors, including the fact that a substantial majority of Delek Logistics' contribution margin is derived from Delek US, thereby subjecting us to Delek US' business risks; risks relating to the securities markets generally; risks and costs relating to the age and operational hazards of our assets including, without limitation, costs, penalties, regulatory or legal actions and other effects related to releases, spills and other hazards inherent in transporting and storing crude oil and intermediate and finished petroleum products; the impact of adverse market conditions affecting the utilization of Delek Logistics' assets and business performance, including margins generated by its wholesale fuel business; risks and uncertainties related to the integration of the 3 Bear business following the recent acquisition; risks and uncertainties related to the Covid-19 pandemic; 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; 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 3 Bear 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 of 5% or at all. Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved.  Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements.  Delek Logistics undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof, except as required by applicable law or regulation.

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Non-GAAP Disclosures:

Our management uses certain "non-GAAP" operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our GAAP financial information presented in accordance with U.S. GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include:

• Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income before net interest expense, income tax expense, depreciation and amortization expense, including amortization of customer contract intangible assets, which is included as a component of net revenues in our accompanying condensed consolidated statements of income.
• Distributable cash flow - calculated as net cash flow from operating activities plus or minus changes in assets and liabilities, less maintenance capital expenditures net of reimbursements and other adjustments not expected to settle in cash.  Delek Logistics believes this is an appropriate reflection of a liquidity measure by which users of its financial statements can assess its ability to generate cash.
• Distributable cash flow, as adjusted for transaction costs, or Distributable cash flow, as adjusted^(FN)) - distributable cash flow adjusted to exclude significant, infrequently occurring transaction costs.

Our EBITDA and distributable cash flow measures are non GAAP supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:    

• Delek Logistics' operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
• the ability of our assets to generate sufficient cash flow to make distributions to our unitholders 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. 

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Delek Logistics Partners, LP
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except unit and per unit data)
	June 30, 2022		December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$                 13,810		$                   4,292
Accounts receivable	43,943		15,384
Inventory	3,654		2,406
Other current assets	2,257		951
Total current assets	63,664		23,033
Property, plant and equipment:
Property, plant and equipment	1,141,822		715,870
Less: accumulated depreciation	(287,983)		(266,482)
Property, plant and equipment, net	853,839		449,388
Equity method investments	248,675		250,030
Operating lease right-of-use assets	25,309		20,933
Goodwill	22,818		12,203
Marketing contract intangible, net	112,971		116,577
Customer relationship intangible, net	208,492		—
Rights-of-way	54,717		37,280
Other non-current assets	18,810		25,627
Total assets	$             1,609,295		$                935,071
LIABILITIES AND DEFICIT
Current liabilities:
Accounts payable	$                 44,398		$                   8,160
Accounts payable to related parties	91,491		64,423
Interest payable	6,035		5,024
Excise and other taxes payable	6,817		5,280
Current portion of operating lease liabilities	7,672		6,811
Accrued expenses and other current liabilities	6,573		7,117
Total current liabilities	162,986		96,815
Non-current liabilities:
Long-term debt	1,522,183		898,970
Asset retirement obligations	8,999		6,476
Operating lease liabilities, net of current portion	12,783		14,071
Other non-current liabilities	18,803		22,731
Total non-current liabilities	1,562,768		942,248
Total liabilities	1,725,754		1,039,063
Equity (Deficit):
Common unitholders - public; 9,173,369 units issued and outstanding at June 30, 2022 (8,774,053 at December 31, 2021)	168,611		166,067
Common unitholders - Delek Holdings; 34,311,278 units issued and outstanding at June 30, 2022 (34,696,800 at December 31, 2021)	(285,070)		(270,059)
Total deficit	(116,459)		(103,992)
Total liabilities and deficit	$             1,609,295		$                935,071

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Delek Logistics Partners, LP
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except unit and per unit data)	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net revenues:
Affiliate	$           124,366		$             88,722		$           248,120		$           184,916
Third-party	142,384		79,756		225,211		136,475
Net revenues	266,750		168,478		473,331		321,391
Cost of sales:
Cost of materials and other	176,360		88,695		302,554		169,866
Operating expenses (excluding depreciation and amortization presented below)	20,284		14,963		37,827		29,213
Depreciation and amortization	12,948		9,480		22,809		19,727
Total cost of sales	209,592		113,138		363,190		218,806
Operating expenses related to wholesale business (excluding depreciation and amortization presented below)	705		605		1,269		1,166
General and administrative expenses	13,773		5,990		18,868		10,095
Depreciation and amortization	474		487		948		979
Other operating expense (income), net	—		(136)		12		(219)
Total operating costs and expenses	224,544		120,084		384,287		230,827
Operating income	42,206		48,394		89,044		90,564
Interest expense, net	16,812		11,658		31,062		21,395
Income from equity method investments	(7,073)		(6,642)		(14,099)		(10,691)
Other income, net	(2)		(34)		(3)		(3)
Total non-operating expenses, net	9,737		4,982		16,960		10,701
Income before income tax expense	32,469		43,412		72,084		79,863
Income tax expense	305		166		406		350
Net income attributable to partners	$             32,164		$             43,246		$             71,678		$             79,513
Comprehensive income attributable to partners	$             32,164		$             43,246		$             71,678		$             79,513
Net income per limited partner unit:
Basic	$                 0.74		$                 1.00		$                 1.65		$                 1.83
Diluted	$                 0.74		$                 1.00		$                 1.65		$                 1.83
Weighted average limited partner units outstanding:
Basic	43,475,931		43,445,222		43,473,746		43,444,284
Diluted	43,502,983		43,460,366		43,491,796		43,453,806
Cash distribution per common limited partner unit	$               0.985		$               0.940		$               1.965		$               1.860

 

Delek Logistics Partners, LP
Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)		Six Months Ended June 30,
		2022		2021
Cash flows from operating activities
Net cash provided by operating activities		$         133,057		$         147,524
Cash flows from investing activities
Net cash used in investing activities		(659,327)		(5,211)
Cash flows from financing activities
Net cash provided by (used) in financing activities		535,788		(144,383)
Net increase (decrease) in cash and cash equivalents		9,518		(2,070)
Cash and cash equivalents at the beginning of the period		4,292		4,243
Cash and cash equivalents at the end of the period		$          13,810		$            2,173

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Delek Logistics Partners, LP
Reconciliation of  Amounts Reported Under U.S. GAAP
(In thousands)
	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Reconciliation of Net Income to EBITDA:
Net income	$             32,164		$             43,246		$             71,678		$             79,513
Add:
Income tax expense	305		166		406		350
Depreciation and amortization	13,422		9,967		23,757		20,706
Amortization of marketing contract intangible asset	1,803		1,803		3,606		3,606
Interest expense, net	16,812		11,658		31,062		21,395
EBITDA	$             64,506		$             66,840		$           130,509		$           125,570
Reconciliation of net cash from operating activities to distributable cash flow:
Net cash provided by operating activities	$             85,137		$             85,792		$           133,057		$           147,524
Changes in assets and liabilities	(26,920)		(29,842)		(20,908)		(40,705)
Non-cash lease expense	(9,686)		(2,489)		(11,484)		(4,507)
Distributions from equity method investments in investing activities	1,187		1,476		1,737		5,400
Maintenance and regulatory capital expenditures not distributable	(233)		(1,133)		(1,040)		(2,862)
Reimbursement from (refund to) Delek Holdings for capital expenditures	1		4		(14)		1,577
Accretion of asset retirement obligations	(123)		(115)		(247)		(230)
Deferred income taxes	—		—		—		(65)
Gain (loss) on sale of assets	—		136		(12)		219
Distributable Cash Flow	$             49,363		$             53,829		$           101,089		$           106,351
Transaction costs	6,199		—		6,393
Distributable Cash Flow, as adjusted (1)	$             55,562		$             53,829		$           107,482		$           106,351

(1)	Distributable cash flow adjusted to exclude transaction costs associated with the 3 Bear Acquisition.

 

Delek Logistics Partners, LP
Distributable Coverage Ratio Calculation
(In thousands)
	Three Months Ended June 30,				Six Months Ended June 30,
Distributions to partners of Delek Logistics, LP	2022		2021		2022		2021
Total distributions to be paid	$             42,832		$             40,846		$             85,436		$             80,814
Distributable cash flow	$             49,363		$             53,829		$           101,089		$           106,351
Distributable cash flow coverage ratio (1)	1.15x		1.32x		1.18x		1.32x
Distributable cash flow, as adjusted (2)	55,562		53,829		107,482		106,351
Distributable cash flow coverage ratio, as adjusted (3)	1.30x		1.32x		1.26x		1.32x

(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 adjusted to exclude transaction costs associated with the 3 Bear Acquisition.
(3)	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.

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Delek Logistics Partners, LP
Segment Data (unaudited)	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2022		2021		2022		2021
Pipelines and Transportation
Net revenues:
Affiliate	$              75,294		$              65,664		$            146,316		$            128,712
Third party	5,312		4,771		10,095		6,698
Total pipelines and transportation	80,606		70,435		156,411		135,410
Cost of materials and other	18,666		14,346		38,268		27,425
Operating expenses (excluding depreciation and amortization)	13,539		10,858		26,497		21,030
Segment contribution margin	$              48,401		$              45,231		$              91,646		$              86,955
Capital spending	$              21,493		$                1,531		$              29,642		$                7,376
Wholesale Marketing and Terminalling
Net revenues:
Affiliates (1)	$              46,110		$              23,058		$              98,842		$              56,204
Third party	119,430		74,985		197,474		129,777
Total wholesale marketing and terminalling	165,540		98,043		296,316		185,981
Cost of materials and other	143,920		74,349		250,512		142,441
Operating expenses (excluding depreciation and amortization)	5,296		4,710		10,445		9,349
Segment contribution margin	$              16,324		$              18,984		$              35,359		$              34,191
Capital spending	$                  122		$                1,060		$                1,059		$                3,014
3 Bear Operations
Net revenues:
Affiliate	$                2,962		$                    —		$                2,962		$                    —
Third party	$              17,642		$                    —		$              17,642		$                    —
Total 3 Bear	20,604		—		20,604		—
Cost of materials and other	13,774		—		13,774		—
Operating expenses (excluding depreciation and amortization)	2,154		—		2,154		—
Segment contribution margin	$                4,676		$                    —		$                4,676		$                    —
Capital spending	$                5,111		$                    —		$                5,111		$                    —
Investments in Pipeline Joint Ventures
Income from equity method investments	$                7,073		$                6,642		$              14,099		$              10,691
Equity method investments contributions	$                    —		$                   (14)		$                    —		$               (1,393)
Consolidated
Net revenues:
Affiliates	$            124,366		$              88,722		$            248,120		$            184,916
Third party	142,384		79,756		225,211		136,475
Total consolidated	266,750		168,478		473,331		321,391
Cost of materials and other	176,360		88,695		302,554		169,866
Operating expenses (excluding depreciation and amortization presented below)	20,989		15,568		39,096		30,379
Contribution margin	69,401		64,215		131,681		121,146
General and administrative expenses	13,773		5,990		18,868		10,095
Depreciation and amortization	13,422		9,967		23,757		20,706
Other operating expense (income), net	—		(136)		12		(219)
Operating income	42,206		48,394		89,044		90,564
Capital spending	$              26,726		$                2,591		$              35,812		$              10,390

(1)	Affiliate revenue for the wholesale marketing and terminalling segment is presented net of amortization expense pertaining to the Marketing Contract Intangible Acquisition.

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Delek Logistics Partners, LP
Segment Capital Spending (1)
(In thousands)
	Three Months Ended June 30,				Six Months Ended June 30,
Pipelines and Transportation	2022		2021		2022		2021
Maintenance capital spending	$                  316		$                  449		$               1,596		$                  926
Discretionary capital spending	21,177		1,082		28,046		6,450
Segment capital spending	$             21,493		$               1,531		29,642		7,376
Wholesale Marketing and Terminalling
Maintenance capital spending	$                  117		$                  681		909		720
Discretionary capital spending	5		379		150		2,294
Segment capital spending	$                  122		$               1,060		1,059		3,014
3 Bear Operations
Maintenance capital spending	$                    —		$                    —		$                    —		$                    —
Discretionary capital spending	5,111		—		5,111		—
Segment capital spending	$               5,111		$                    —		$               5,111		$                    —
Consolidated
Maintenance capital spending	$                  433		$               1,130		$               2,505		$               1,646
Discretionary capital spending	26,293		1,461		33,307		8,744
Total capital spending	$             26,726		$               2,591		$             35,812		$             10,390

(1)	There were no capital contributions to equity method investments for the six months ended June 30, 2022.

 

Delek Logistics Partners, LP
Segment Data (Unaudited)
	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Pipelines and Transportation Segment:
Throughputs (average bpd)
El Dorado Assets:
Crude pipelines (non-gathered)	84,699		53,316		78,818		48,743
Refined products pipelines to Enterprise Systems	64,821		39,193		62,186		32,806
El Dorado Gathering System	17,961		17,430		17,064		14,670
East Texas Crude Logistics System	19,942		27,497		18,010		26,790
Permian Gathering System (1)	101,236		79,589		100,783		76,672
Plains Connection System	154,086		122,529		158,025		115,484
Trucking Assets	15,679		10,314		12,510		10,251
Wholesale Marketing and Terminalling Segment:
East Texas - Tyler Refinery sales volumes (average bpd) (2)	63,502		74,565		67,021		73,271
Big Spring marketing throughputs (average bpd)	78,634		75,136		77,100		74,038
West Texas marketing throughputs (average bpd)	10,073		9,395		9,994		9,765
West Texas gross margin per barrel	$                 2.67		$                 4.24		$                 2.85		$                 3.81
Terminalling throughputs (average bpd) (3)	130,002		139,987		136,808		142,250

(1)	Formerly known as the Big Spring Gathering System. Excludes volumes that are being temporarily transported via trucks while connectors are under construction.
(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.

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3 Bear Operations Segment:	Period from June 1 through June 30, 2022
Natural Gas Gathering and Processing (Mcfd(1))	51,292
Crude Oil Gathering (bpd(2))	78,011
Water Disposal and Recycling (bpd(2))	57,625

(1)	Mcfd - average thousand cubic feet per day.
(2)	bpd - average barrels per day.

Information about Delek Logistics Partners, LP can be found on its website (www.deleklogistics.com), investor relations webpage (ir.deleklogistics.com), news webpage (www.deleklogistics.com/news) and its Twitter account (@DelekLogistics).

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SOURCE Delek Logistics

FAQ

What were Delek Logistics' Q2 2022 earnings results for DKL?

In Q2 2022, Delek Logistics reported a net income of $32.2 million, down from $43.2 million in Q2 2021.

How much is the quarterly distribution declared by DKL for Q2 2022?

Delek Logistics declared a quarterly distribution of $0.985 per unit for Q2 2022.

What acquisition did Delek Logistics complete in 2022?

Delek Logistics completed the acquisition of 3 Bear Delaware - NM, LLC on June 1, 2022.

What is the total debt of Delek Logistics as of June 30, 2022?

As of June 30, 2022, Delek Logistics had total debt of approximately $1.52 billion.

How did Delek Logistics' EBITDA change in Q2 2022?

EBITDA for Q2 2022 was $64.5 million, a decrease from $66.8 million in Q2 2021.