Delek Logistics Reports Record Third Quarter 2024 Results
Delek Logistics Partners (DKL) reported strong third quarter 2024 results with net income of $33.7 million and record Adjusted EBITDA of $106.8 million, up 9% year over year. The company completed key acquisitions including H2O Midstream and Delek US' interest in the Wink to Webster pipeline. DKL raised $165.3 million through a primary offering to fund Delaware Basin growth projects. The company increased its quarterly distribution to $1.100 per unit, marking its 47th consecutive increase. The quarter ended with total debt of $1.89 billion and a leverage ratio of 4.15x. Distribution cash flow coverage ratio was 1.1x, below the 1.3x target due to timing effects of recent acquisitions.
Delek Logistics Partners (DKL) ha riportato risultati forti per il terzo trimestre del 2024, con un utile netto di 33,7 milioni di dollari e un EBITDA rettificato record di 106,8 milioni di dollari, in aumento del 9% rispetto all'anno precedente. L'azienda ha completato acquisizioni chiave, tra cui H2O Midstream e l'interesse di Delek US nel gasdotto Wink-Webster. DKL ha raccolto 165,3 milioni di dollari tramite un'offerta primaria per finanziare i progetti di crescita nel Delaware Basin. L'azienda ha aumentato la sua distribuzione trimestrale a 1,100 dollari per unità, segnando il 47° aumento consecutivo. Il trimestre si è concluso con un debito totale di 1,89 miliardi di dollari e un rapporto di leva finanziaria di 4,15x. Il rapporto di copertura del flusso di cassa della distribuzione era di 1,1x, al di sotto dell'obiettivo di 1,3x a causa degli effetti temporali delle recenti acquisizioni.
Delek Logistics Partners (DKL) reportó resultados sólidos para el tercer trimestre de 2024, con un ingreso neto de 33,7 millones de dólares y un EBITDA ajustado récord de 106,8 millones de dólares, un aumento del 9% interanual. La compañía completó adquisiciones clave, incluyendo H2O Midstream y el interés de Delek US en el oleoducto Wink-Webster. DKL recaudó 165,3 millones de dólares a través de una oferta primaria para financiar proyectos de crecimiento en la cuenca de Delaware. La compañía incrementó su distribución trimestral a 1,100 dólares por unidad, marcando su 47ª aumentación consecutiva. El trimestre finalizó con una deuda total de 1,89 mil millones de dólares y una relación de apalancamiento de 4,15x. El ratio de cobertura del flujo de caja de distribución fue de 1,1x, por debajo del objetivo de 1,3x debido a los efectos temporales de las recientes adquisiciones.
Delek Logistics Partners (DKL)는 2024년 3분기 실적으로 3,370만 달러의 순이익과 1억 680만 달러의 조정 EBITDA를 기록하며 전년 대비 9% 증가했다고 보고했습니다. 회사는 H2O Midstream 및 Delek US의 Wink-Webster 파이프라인에 대한 지분을 포함한 주요 인수를 완료했습니다. DKL은 델라웨어 분지의 성장 프로젝트 자금을 조달하기 위해 1억 6,530만 달러를 기본 공모를 통해 모금했습니다. 회사는 분기 배당금을 주당 1,100달러로 늘려 47번째 연속 증가를 기록했습니다. 분기는 총 부채 18억 9천만 달러와 레버리지 비율 4.15배로 마감되었습니다. 배당금 현금 흐름 커버 비율은 1.1배로, 최근 인수의 시기적 요인으로 인해 목표인 1.3배보다 낮았습니다.
Delek Logistics Partners (DKL) a annoncé de solides résultats pour le troisième trimestre 2024, avec un revenu net de 33,7 millions de dollars et un EBITDA ajusté record de 106,8 millions de dollars, en hausse de 9 % par rapport à l'année précédente. La société a réalisé des acquisitions clés, y compris H2O Midstream et l'intérêt de Delek US dans le pipeline Wink-Webster. DKL a levé 165,3 millions de dollars par le biais d'une offre publique primaire pour financer des projets de croissance dans le bassin du Delaware. L'entreprise a augmenté sa distribution trimestrielle à 1 100 dollars par unité, marquant la 47e augmentation consécutive. Le trimestre s'est terminé avec une dette totale de 1,89 milliard de dollars et un ratio d'endettement de 4,15x. Le ratio de couverture des flux de trésorerie de distribution était de 1,1x, en dessous de l'objectif de 1,3x en raison des effets de timing des acquisitions récentes.
Delek Logistics Partners (DKL) meldete starke Ergebnisse für das dritte Quartal 2024 mit einem Nettoeinkommen von 33,7 Millionen Dollar und einem Rekord bereinigten EBITDA von 106,8 Millionen Dollar, was einem Anstieg von 9 % im Jahresvergleich entspricht. Das Unternehmen hat wichtige Akquisitionen abgeschlossen, darunter H2O Midstream und die Beteiligung von Delek US an der Wink-Webster-Pipeline. DKL hat 165,3 Millionen Dollar durch ein Primärangebot gesammelt, um Wachstumsprojekte im Delaware Basin zu finanzieren. Das Unternehmen erhöhte seine vierteljährliche Ausschüttung auf 1.100 Dollar pro Einheit und verzeichnete damit die 47. Erhöhung in Folge. Das Quartal endete mit einer Gesamtverschuldung von 1,89 Milliarden Dollar und einem Verschuldungsgrad von 4,15x. Das Verhältnis der Ausschüttungs-Cashflow-Abdeckung betrug 1,1x und lag damit unter dem Ziel von 1,3x aufgrund von zeitlichen Effekten der jüngsten Akquisitionen.
- Record Adjusted EBITDA of $106.8 million, up 9% year-over-year
- 47th consecutive distribution increase to $1.100 per unit
- Income from equity method investments increased to $15.6 million from $9.3 million YoY
- Additional borrowing capacity of $695.1 million available
- Successful completion of strategic acquisitions strengthening Permian Basin presence
- Distribution coverage ratio of 1.1x below target of 1.3x
- Net income decreased to $33.7 million from $34.8 million YoY
- Operating cash flow declined to $24.9 million from $46.8 million YoY
- Wholesale Marketing segment EBITDA decreased to $24.7 million from $28.1 million YoY
- High leverage with total debt of $1.89 billion
Insights
The Q3 2024 results demonstrate mixed performance with some notable highlights. Record Adjusted EBITDA of
Strategic moves including H2O Midstream acquisition, Wink to Webster pipeline interest and
The strategic positioning in the Permian Basin through recent acquisitions and investments is particularly noteworthy. The H2O Midstream acquisition and W2W pipeline interest enhance DKL's midstream capabilities and diversification. The final investment decision on a new gas processing plant adjacent to the Delaware plant indicates continued infrastructure expansion in high-growth areas.
Segment performance shows strength in gathering and processing (
-
Net income attributable to all partners of
$33.7 million -
Reported record Adjusted EBITDA of
up$106.8 million 9% year over year -
During the 3rd quarter Delek Logistics:
- Closed the acquisition of H2O Midstream
- Completed the acquisition of Delek US' interest in the Wink to Webster ("W2W") pipeline
- Amended and extended agreements with Delek US for a period of up to seven years
-
Announced the final investment decision (FID) on a new gas processing plant adjacent to the existing
Delaware plant
-
DKL raised
from a primary offering in October to fund its accretive growth projects in the$165.3 million Delaware Basin -
Continued with its consistent distribution growth policy with recent increase to
/unit$1.10 0
“Delek Logistics continues to provide the best combination of yield and growth in the midstream sector. We are proud of the 47th consecutive increase in our distribution and we expect to continue to increase our distribution in the future. The completion of our previously announced strategic actions position Delek Logistics as a premier, full-service, midstream provider in the prolific Permian Basin,” said Avigal Soreq, President of Delek Logistics' general partner.
"Our recent equity offering allows us to bring forward additional growth opportunities and strengthen our position in the
DKL reported third quarter 2024 net income attributable to limited partners of
For the third quarter 2024, earnings before interest, taxes, depreciation and amortization ("EBITDA") was
Distribution and Liquidity
On October 29, 2024, Delek Logistics declared a quarterly cash distribution of
As of September 30, 2024, Delek Logistics had total debt of approximately
Consolidated Operating Results
Adjusted EBITDA in the third quarter 2024 was
Gathering and Processing Segment
Adjusted EBITDA in the third quarter 2024 was
Wholesale Marketing and Terminalling Segment
Adjusted EBITDA in the third quarter 2024 was
Storage and Transportation Segment
Adjusted EBITDA in the third quarter 2024 was
Investments in Pipeline Joint Ventures Segment
During the third quarter 2024, income from equity method investments was
Corporate
Adjusted EBITDA in the third quarter 2024 was a loss of
Third Quarter 2024 Results | Conference Call Information
Delek Logistics will hold a conference call to discuss its third quarter 2024 results on Wednesday, November 6, 2024 at 10:30 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekLogistics.com. Participants are encouraged to register at least 15 minutes early to download and install any necessary software. An archived version of the replay will also be available at www.DelekLogistics.com for 90 days.
About Delek Logistics Partners, LP
Delek Logistics is a midstream energy master limited partnership headquartered in
Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or similar expressions, as well as statements in the future tense, and can be impacted by numerous factors, including the fact that a significant portion of Delek Logistics' revenue is derived from Delek US, thereby subjecting us to Delek US' business risks; risks relating to the securities markets generally; risks and costs relating to the age and operational hazards of our assets including, without limitation, costs, penalties, regulatory or legal actions and other effects related to releases, spills and other hazards inherent in transporting and storing crude oil and intermediate and finished petroleum products; the impact of adverse market conditions affecting the utilization of Delek Logistics' assets and business performance, including margins generated by its wholesale fuel business; risks and uncertainties with respect to the possible benefits of the H2O Midstream transaction, as well as from integration post-closing; uncertainties regarding future decisions by OPEC regarding production and pricing disputes between OPEC members and
Sales-Type Leases
During the third quarter of 2024, Delek Logistics and Delek US renewed and amended certain commercial agreements. These amendments required the embedded leases within these agreements to be reassessed under Accounting Standards Codification 842, Leases. As a result of these amendments, certain of these agreements met the criteria to be accounted for as sales-type leases. Therefore, portions of our payments received for minimum volume commitments under agreements subject to sales-type lease accounting are recorded as interest income with the remaining amounts recorded as a reduction in net investment in leases. Prior to the amendments, these agreements were accounted for as operating leases and these minimum volume commitments were recorded as revenues.
Non-GAAP Disclosures:
Our management uses certain "non-GAAP" operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our financial information presented in accordance with
- Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income before net interest expense, income tax expense, depreciation and amortization expense, including amortization of customer contract intangible assets, which is included as a component of net revenues.
- Adjusted EBITDA - EBITDA adjusted for (i) significant, infrequently occurring transaction costs and (ii) throughput and storage fees associated with the lease component of commercial agreements subject to sales-type lease accounting.
- Distributable cash flow - calculated as net cash flow from operating activities adjusted for changes in assets and liabilities, maintenance capital expenditures net of reimbursements, sales-type lease receipts, net of income recognized and other adjustments not expected to settle in cash.
- Distributable cash flow, as adjusted -calculated as distributable cash flow adjusted to exclude significant, infrequently occurring transaction costs.
Our EBITDA, Adjusted EBITDA, distributable cash flow and distributable cash flow, as adjusted measures are non-GAAP supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
- Delek Logistics' operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA and Adjusted EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to our unitholders on a current and on-going basis;
- Delek Logistics' ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
We believe that the presentation of these non-GAAP measures provide information useful to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance and liquidity for current and comparative periods. Non-GAAP measures should not be considered alternatives to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with
Delek Logistics Partners, LP |
|||||||
Consolidated Balance Sheets (Unaudited) |
|||||||
(In thousands, except unit data) |
|||||||
|
September 30, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
7,317 |
|
|
$ |
3,755 |
|
Accounts receivable |
|
48,173 |
|
|
|
41,131 |
|
Accounts receivable from related parties |
|
— |
|
|
|
28,443 |
|
Lease receivable - affiliate |
|
23,852 |
|
|
|
— |
|
Inventory |
|
4,632 |
|
|
|
2,264 |
|
Other current assets |
|
1,967 |
|
|
|
676 |
|
Total current assets |
|
85,941 |
|
|
|
76,269 |
|
Property, plant and equipment: |
|
|
|
||||
Property, plant and equipment |
|
1,480,553 |
|
|
|
1,320,510 |
|
Less: accumulated depreciation |
|
(440,557 |
) |
|
|
(384,359 |
) |
Property, plant and equipment, net |
|
1,039,996 |
|
|
|
936,151 |
|
Equity method investments |
|
322,745 |
|
|
|
241,337 |
|
Customer relationship intangible, net |
|
191,655 |
|
|
|
181,336 |
|
Marketing contract intangible, net |
|
— |
|
|
|
102,155 |
|
Other intangibles, net |
|
95,538 |
|
|
|
59,536 |
|
Goodwill |
|
12,203 |
|
|
|
12,203 |
|
Operating lease right-of-use assets |
|
15,222 |
|
|
|
19,043 |
|
Net lease investment - affiliate |
|
186,361 |
|
|
|
— |
|
Other non-current assets |
|
11,062 |
|
|
|
14,216 |
|
Total assets |
$ |
1,960,723 |
|
|
$ |
1,642,246 |
|
|
|
|
|
||||
LIABILITIES AND DEFICIT |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
35,683 |
|
|
$ |
26,290 |
|
Accounts payable to related parties |
|
442 |
|
|
|
— |
|
Current portion of long-term debt |
|
— |
|
|
|
30,000 |
|
Interest payable |
|
15,559 |
|
|
|
5,805 |
|
Excise and other taxes payable |
|
7,641 |
|
|
|
10,321 |
|
Current portion of operating lease liabilities |
|
5,371 |
|
|
|
6,697 |
|
Accrued expenses and other current liabilities |
|
4,886 |
|
|
|
11,477 |
|
Total current liabilities |
|
69,582 |
|
|
|
90,590 |
|
Non-current liabilities: |
|
|
|
||||
Long-term debt, net of current portion |
|
1,894,257 |
|
|
|
1,673,789 |
|
Operating lease liabilities, net of current portion |
|
5,820 |
|
|
|
8,335 |
|
Asset retirement obligations |
|
15,453 |
|
|
|
10,038 |
|
Other non-current liabilities |
|
20,719 |
|
|
|
21,363 |
|
Total non-current liabilities |
|
1,936,249 |
|
|
|
1,713,525 |
|
Total liabilities |
|
2,005,831 |
|
|
|
1,804,115 |
|
Preferred units - 70,000 units issued and outstanding at September 30, 2024 |
|
70,000 |
|
|
|
— |
|
Equity (Deficit): |
|
|
|
||||
Common unitholders - public; 12,932,311 units issued and outstanding at September 30, 2024 (9,299,763 at December 31, 2023) |
|
282,458 |
|
|
|
160,402 |
|
Common unitholders - Delek Holdings; 34,111,278 units issued and outstanding at September 30, 2024 (34,311,278 at December 31, 2023) |
|
(397,566 |
) |
|
|
(322,271 |
) |
Total deficit |
|
(115,108 |
) |
|
|
(161,869 |
) |
Total liabilities, preferred units and deficit |
$ |
1,960,723 |
|
|
$ |
1,642,246 |
|
Delek Logistics Partners, LP |
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Consolidated Statement of Income and Comprehensive Income (Unaudited) |
|||||||||||||||
(In thousands, except unit and per unit data) |
|
|
|
||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net revenues: |
|
|
|
|
|
|
|
||||||||
Affiliate |
$ |
114,899 |
|
|
$ |
156,411 |
|
|
$ |
411,352 |
|
|
$ |
414,403 |
|
Third party |
|
99,171 |
|
|
|
119,413 |
|
|
|
319,421 |
|
|
|
351,857 |
|
Net revenues |
|
214,070 |
|
|
|
275,824 |
|
|
|
730,773 |
|
|
|
766,260 |
|
Cost of sales: |
|
|
|
|
|
|
|
||||||||
Cost of materials and other - affiliate |
|
84,015 |
|
|
|
115,149 |
|
|
|
279,962 |
|
|
|
298,262 |
|
Cost of materials and other - third party |
|
33,495 |
|
|
|
35,479 |
|
|
|
99,300 |
|
|
|
106,587 |
|
Operating expenses (excluding depreciation and amortization presented below) |
|
27,746 |
|
|
|
32,611 |
|
|
|
88,895 |
|
|
|
85,302 |
|
Depreciation and amortization |
|
19,969 |
|
|
|
23,261 |
|
|
|
67,882 |
|
|
|
65,494 |
|
Total cost of sales |
|
165,225 |
|
|
|
206,500 |
|
|
|
536,039 |
|
|
|
555,645 |
|
Operating expenses related to wholesale business (excluding depreciation and amortization presented below) |
|
174 |
|
|
|
392 |
|
|
|
569 |
|
|
|
1,397 |
|
General and administrative expenses |
|
15,745 |
|
|
|
5,545 |
|
|
|
26,624 |
|
|
|
19,666 |
|
Depreciation and amortization |
|
1,235 |
|
|
|
1,324 |
|
|
|
4,024 |
|
|
|
3,923 |
|
Other operating income, net |
|
(117 |
) |
|
|
(491 |
) |
|
|
(1,294 |
) |
|
|
(804 |
) |
Total operating costs and expenses |
|
182,262 |
|
|
|
213,270 |
|
|
|
565,962 |
|
|
|
579,827 |
|
Operating income |
|
31,808 |
|
|
|
62,554 |
|
|
|
164,811 |
|
|
|
186,433 |
|
Interest income |
|
(23,470 |
) |
|
|
— |
|
|
|
(23,498 |
) |
|
|
— |
|
Interest expense |
|
37,022 |
|
|
|
36,901 |
|
|
|
112,547 |
|
|
|
104,581 |
|
Income from equity method investments |
|
(15,602 |
) |
|
|
(9,296 |
) |
|
|
(31,974 |
) |
|
|
(22,897 |
) |
Other expense (income), net |
|
34 |
|
|
|
(3 |
) |
|
|
(177 |
) |
|
|
(24 |
) |
Total non-operating expenses, net |
|
(2,016 |
) |
|
|
27,602 |
|
|
|
56,898 |
|
|
|
81,660 |
|
Income before income tax expense |
|
33,824 |
|
|
|
34,952 |
|
|
|
107,913 |
|
|
|
104,773 |
|
Income tax expense |
|
150 |
|
|
|
127 |
|
|
|
533 |
|
|
|
685 |
|
Net income attributable to partners |
$ |
33,674 |
|
|
$ |
34,825 |
|
|
$ |
107,380 |
|
|
$ |
104,088 |
|
Comprehensive income attributable to partners |
$ |
33,674 |
|
|
$ |
34,825 |
|
|
$ |
107,380 |
|
|
$ |
104,088 |
|
|
|
|
|
|
|
|
|
||||||||
Net income per limited partner unit: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.71 |
|
|
$ |
0.80 |
|
|
$ |
2.32 |
|
|
$ |
2.39 |
|
Diluted |
$ |
0.71 |
|
|
$ |
0.80 |
|
|
$ |
2.32 |
|
|
$ |
2.39 |
|
Weighted average limited partner units outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
47,109,008 |
|
|
|
43,588,316 |
|
|
|
46,248,003 |
|
|
|
43,578,636 |
|
Diluted |
|
47,135,101 |
|
|
|
43,604,792 |
|
|
|
46,269,423 |
|
|
|
43,598,547 |
|
Cash distribution per common limited partner unit |
$ |
1.095 |
|
|
$ |
1.045 |
|
|
$ |
3.255 |
|
|
$ |
3.105 |
|
Delek Logistics Partners, LP |
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Condensed Consolidated Statements of Cash Flows (In thousands) |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
(Unaudited) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
24,944 |
|
|
$ |
46,828 |
|
|
$ |
156,441 |
|
|
$ |
110,630 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
||||||||
Net cash used in investing activities |
|
(299,107 |
) |
|
|
(741 |
) |
|
|
(314,528 |
) |
|
|
(55,634 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
||||||||
Net cash provided by (used in) financing activities |
|
276,369 |
|
|
|
(49,620 |
) |
|
|
161,649 |
|
|
|
(58,784 |
) |
Net increase (decrease) in cash and cash equivalents |
|
2,206 |
|
|
|
(3,533 |
) |
|
|
3,562 |
|
|
|
(3,788 |
) |
Cash and cash equivalents at the beginning of the period |
|
5,111 |
|
|
|
7,715 |
|
|
|
3,755 |
|
|
|
7,970 |
|
Cash and cash equivalents at the end of the period |
$ |
7,317 |
|
|
$ |
4,182 |
|
|
$ |
7,317 |
|
|
$ |
4,182 |
|
Delek Logistics Partners, LP |
|||||||||||||||
Reconciliation of Amounts Reported Under |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Reconciliation of Net Income to EBITDA: |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
33,674 |
|
|
$ |
34,825 |
|
|
$ |
107,380 |
|
|
$ |
104,088 |
|
Add: |
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
150 |
|
|
|
127 |
|
|
|
533 |
|
|
|
685 |
|
Depreciation and amortization |
|
21,204 |
|
|
|
24,585 |
|
|
|
71,906 |
|
|
|
69,417 |
|
Amortization of marketing contract intangible |
|
601 |
|
|
|
1,803 |
|
|
|
4,206 |
|
|
|
5,408 |
|
Interest expense, net |
|
13,552 |
|
|
|
36,901 |
|
|
|
89,049 |
|
|
|
104,581 |
|
EBITDA |
|
69,181 |
|
|
|
98,241 |
|
|
|
273,074 |
|
|
|
284,179 |
|
Throughput and storage fees for sales-type leases |
|
28,972 |
|
|
|
— |
|
|
|
28,972 |
|
|
|
— |
|
Transaction costs |
|
8,676 |
|
|
|
— |
|
|
|
8,676 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
106,829 |
|
|
$ |
98,241 |
|
|
$ |
310,722 |
|
|
$ |
284,179 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of net cash from operating activities to distributable cash flow: |
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
24,944 |
|
|
$ |
46,828 |
|
|
$ |
156,441 |
|
|
$ |
110,630 |
|
Changes in assets and liabilities |
|
29,049 |
|
|
|
16,439 |
|
|
|
30,531 |
|
|
|
81,368 |
|
Non-cash lease expense |
|
(3,788 |
) |
|
|
(2,960 |
) |
|
|
(5,689 |
) |
|
|
(7,407 |
) |
Distributions from equity method investments in investing activities |
|
704 |
|
|
|
3,037 |
|
|
|
3,377 |
|
|
|
4,477 |
|
Regulatory and sustaining capital expenditures not distributable |
|
(3,396 |
) |
|
|
(2,069 |
) |
|
|
(7,682 |
) |
|
|
(5,924 |
) |
Reimbursement from (refund to) Delek Holdings for capital expenditures |
|
— |
|
|
|
(69 |
) |
|
|
282 |
|
|
|
942 |
|
Sales-type lease receipts, net of income recognized |
|
5,474 |
|
|
|
— |
|
|
|
5,474 |
|
|
|
— |
|
Accretion |
|
446 |
|
|
|
(177 |
) |
|
|
73 |
|
|
|
(529 |
) |
Deferred income taxes |
|
(247 |
) |
|
|
(124 |
) |
|
|
(451 |
) |
|
|
(753 |
) |
Gain on disposal of assets |
|
97 |
|
|
|
491 |
|
|
|
6,727 |
|
|
|
804 |
|
Distributable Cash Flow |
|
53,283 |
|
|
|
61,396 |
|
|
|
189,083 |
|
|
|
183,608 |
|
Transaction costs |
|
8,676 |
|
|
|
— |
|
|
|
8,676 |
|
|
|
— |
|
Distributable Cash Flow, as adjusted (1) |
$ |
61,959 |
|
|
$ |
61,396 |
|
|
$ |
197,759 |
|
|
$ |
183,608 |
|
(1) | Distributable cash flow adjusted to exclude transaction costs associated with the H2O Midstream Acquisition. |
Delek Logistics Partners, LP | |||||||||||
Distributable Coverage Ratio Calculation (Unaudited) |
|||||||||||
(In thousands) |
|||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Distributions to partners of Delek Logistics, LP |
$ |
56,613 |
|
$ |
45,558 |
|
$ |
158,397 |
|
$ |
135,334 |
|
|
|
|
|
|
|
|
||||
Distributable cash flow |
$ |
53,283 |
|
$ |
61,396 |
|
$ |
189,083 |
|
$ |
183,608 |
Distributable cash flow coverage ratio (1) |
0.94x |
|
1.35x |
|
1.19x |
|
1.36x |
||||
Distributable cash flow, as adjusted |
|
61,959 |
|
|
61,396 |
|
|
197,759 |
|
|
183,608 |
Distributable cash flow coverage ratio, as adjusted (2) |
1.09x |
|
1.35x |
|
1.25x |
|
1.36x |
(1) |
Distributable cash flow coverage ratio is calculated by dividing distributable cash flow by distributions to be paid in each respective period. |
(2) |
Distributable cash flow coverage ratio, as adjusted is calculated by dividing distributable cash flow, as adjusted for transaction costs by distributions to be paid in each respective period. |
Delek Logistics Partners, LP |
Segment Data (Unaudited) |
(In thousands) |
|
Three Months Ended September 30, 2024 |
||||||||||||||||||||||
|
|
Gathering and Processing |
|
Wholesale Marketing and Terminalling |
|
Storage and Transportation |
|
Investments in Pipeline Joint Ventures |
|
Corporate and Other |
|
Consolidated |
|||||||||||
Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Affiliate |
|
$ |
39,910 |
|
|
$ |
51,682 |
|
|
$ |
23,307 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
114,899 |
|
Third party |
|
|
41,617 |
|
|
|
55,256 |
|
|
|
2,298 |
|
|
|
— |
|
|
— |
|
|
|
99,171 |
|
Total revenue |
|
$ |
81,527 |
|
|
$ |
106,938 |
|
|
$ |
25,605 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
214,070 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA |
|
$ |
55,024 |
|
|
$ |
24,695 |
|
|
$ |
19,404 |
|
|
$ |
15,602 |
|
$ |
(7,896 |
) |
|
$ |
106,829 |
|
Transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
8,676 |
|
|
|
8,676 |
|
Throughput and storage fees for sales-type leases |
|
|
12,644 |
|
|
|
4,450 |
|
|
|
11,878 |
|
|
|
— |
|
|
— |
|
|
|
28,972 |
|
Segment EBITDA |
|
$ |
42,380 |
|
|
$ |
20,245 |
|
|
$ |
7,526 |
|
|
$ |
15,602 |
|
$ |
(16,572 |
) |
|
$ |
69,181 |
|
Depreciation and amortization |
|
|
16,424 |
|
|
|
2,796 |
|
|
|
1,218 |
|
|
|
— |
|
|
766 |
|
|
|
21,204 |
|
Amortization of customer contract intangible |
|
|
— |
|
|
|
601 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
601 |
|
Interest income |
|
|
(11,531 |
) |
|
|
(3,707 |
) |
|
|
(8,232 |
) |
|
|
— |
|
|
— |
|
|
|
(23,470 |
) |
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
37,022 |
|
|
|
37,022 |
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
150 |
|
|||||||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
$ |
33,674 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Capital spending |
|
$ |
62,086 |
|
|
$ |
1,202 |
|
|
$ |
1,910 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
65,198 |
|
|
|
Three Months Ended September 30, 2023 |
|||||||||||||||||
|
|
Gathering and Processing |
|
Wholesale Marketing and Terminalling |
|
Storage and Transportation |
|
Investments in Pipeline Joint Ventures |
|
Corporate and Other |
|
Consolidated |
|||||||
Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Affiliate |
|
$ |
55,419 |
|
$ |
70,610 |
|
$ |
30,382 |
|
$ |
— |
|
$ |
— |
|
|
$ |
156,411 |
Third party |
|
|
39,406 |
|
|
76,500 |
|
|
3,507 |
|
|
— |
|
|
— |
|
|
|
119,413 |
Total revenue |
|
$ |
94,825 |
|
$ |
147,110 |
|
$ |
33,889 |
|
$ |
— |
|
$ |
— |
|
|
$ |
275,824 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Adjusted EBITDA |
|
$ |
52,906 |
|
$ |
28,135 |
|
$ |
17,914 |
|
$ |
9,288 |
|
$ |
(10,002 |
) |
|
$ |
98,241 |
Segment EBITDA |
|
$ |
52,906 |
|
$ |
28,135 |
|
$ |
17,914 |
|
$ |
9,288 |
|
$ |
(10,002 |
) |
|
|
98,241 |
Depreciation and amortization |
|
|
19,263 |
|
|
1,769 |
|
|
2,704 |
|
|
— |
|
|
849 |
|
|
|
24,585 |
Amortization of customer contract intangible |
|
|
— |
|
|
1,803 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
1,803 |
Interest expense |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
36,901 |
|
|
|
36,901 |
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
127 |
||||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
$ |
34,825 |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Capital spending |
|
$ |
12,002 |
|
$ |
2,123 |
|
$ |
522 |
|
$ |
— |
|
$ |
— |
|
|
$ |
14,647 |
|
|
Nine Months Ended September 30, 2024 |
|||||||||||||||||||||
|
|
Gathering and Processing |
|
Wholesale Marketing and Terminalling |
|
Storage and Transportation |
|
Investments in Pipeline Joint Ventures |
|
Corporate and Other |
|
Consolidated |
|||||||||||
Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Affiliate |
|
$ |
143,992 |
|
|
$ |
175,463 |
|
|
$ |
91,897 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
411,352 |
|
Third party |
|
|
126,061 |
|
|
|
186,345 |
|
|
|
7,015 |
|
|
|
— |
|
|
— |
|
|
|
319,421 |
|
Total revenue |
|
$ |
270,053 |
|
|
$ |
361,808 |
|
|
$ |
98,912 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
730,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA |
|
$ |
167,463 |
|
|
$ |
80,174 |
|
|
$ |
54,283 |
|
|
$ |
31,974 |
|
$ |
(23,172 |
) |
|
$ |
310,722 |
|
Transaction costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
8,676 |
|
|
|
8,676 |
|
Throughput and storage fees for sales-type leases |
|
|
12,644 |
|
|
|
4,450 |
|
|
|
11,878 |
|
|
|
— |
|
|
— |
|
|
|
28,972 |
|
Segment EBITDA |
|
$ |
154,819 |
|
|
$ |
75,724 |
|
|
$ |
42,405 |
|
|
$ |
31,974 |
|
$ |
(31,848 |
) |
|
|
273,074 |
|
Depreciation and amortization |
|
|
56,640 |
|
|
|
6,143 |
|
|
|
6,515 |
|
|
|
— |
|
|
2,608 |
|
|
|
71,906 |
|
Amortization of customer contract intangible |
|
|
— |
|
|
|
4,206 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
4,206 |
|
Interest income |
|
|
(11,559 |
) |
|
|
(3,707 |
) |
|
|
(8,232 |
) |
|
|
— |
|
|
— |
|
|
|
(23,498 |
) |
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
112,547 |
|
|
|
112,547 |
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
533 |
|
|||||||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
$ |
107,380 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Capital spending |
|
$ |
84,160 |
|
|
$ |
1,223 |
|
|
$ |
5,167 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
90,550 |
|
|
|
Nine Months Ended September 30, 2023 |
|||||||||||||||||||||
|
|
Gathering and Processing |
|
Wholesale Marketing and Terminalling |
|
Storage and Transportation |
|
Investments in Pipeline Joint Ventures |
|
Corporate and Other |
|
Consolidated |
|||||||||||
Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Affiliate |
|
$ |
157,362 |
|
|
$ |
156,437 |
|
|
$ |
100,604 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
414,403 |
|
Third party |
|
|
123,132 |
|
|
|
221,809 |
|
|
|
6,916 |
|
|
|
— |
|
|
— |
|
|
|
351,857 |
|
Total revenue |
|
$ |
280,494 |
|
|
$ |
378,246 |
|
|
$ |
107,520 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
766,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Adjusted EBITDA |
|
$ |
161,014 |
|
|
$ |
78,071 |
|
|
$ |
46,316 |
|
|
$ |
22,889 |
|
$ |
(24,111 |
) |
|
$ |
284,179 |
|
Segment EBITDA |
|
$ |
161,014 |
|
|
$ |
78,071 |
|
|
$ |
46,316 |
|
|
$ |
22,889 |
|
$ |
(24,111 |
) |
|
|
284,179 |
|
Depreciation and amortization |
|
|
54,511 |
|
|
|
5,338 |
|
|
|
7,109 |
|
|
|
— |
|
|
2,459 |
|
|
|
69,417 |
|
Amortization of customer contract intangible |
|
|
— |
|
|
|
5,408 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
5,408 |
|
Interest income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
104,581 |
|
|
|
104,581 |
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
685 |
|
|||||||||
Net income |
|
|
|
|
|
|
|
|
|
|
|
$ |
104,088 |
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Capital spending |
|
$ |
62,168 |
|
|
$ |
2,527 |
|
|
$ |
3,933 |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
68,628 |
|
Delek Logistics Partners, LP |
|||||||||||
Segment Capital Spending |
|||||||||||
(In thousands) |
|||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
Gathering and Processing |
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Regulatory capital spending |
$ |
— |
|
$ |
31 |
|
$ |
— |
|
$ |
31 |
Sustaining capital spending |
|
284 |
|
|
980 |
|
|
1,292 |
|
|
980 |
Growth capital spending (1) |
|
61,802 |
|
|
10,991 |
|
|
82,868 |
|
|
61,157 |
Segment capital spending |
$ |
62,086 |
|
$ |
12,002 |
|
$ |
84,160 |
|
$ |
62,168 |
Wholesale Marketing and Terminalling |
|
|
|
|
|
|
|
||||
Regulatory capital spending |
$ |
379 |
|
$ |
292 |
|
|
406 |
|
|
371 |
Sustaining capital spending |
|
823 |
|
|
1,679 |
|
|
817 |
|
|
754 |
Growth capital spending |
|
— |
|
|
152 |
|
|
— |
|
|
1,402 |
Segment capital spending |
$ |
1,202 |
|
$ |
2,123 |
|
$ |
1,223 |
|
$ |
2,527 |
Storage and Transportation |
|
|
|
|
|
|
|
||||
Regulatory capital spending |
$ |
366 |
|
$ |
522 |
|
$ |
688 |
|
$ |
1,670 |
Sustaining capital spending |
|
1,544 |
|
|
— |
|
|
4,479 |
|
|
2,263 |
Growth capital spending |
|
— |
|
|
— |
|
$ |
— |
|
$ |
— |
Segment capital spending |
$ |
1,910 |
|
$ |
522 |
|
$ |
5,167 |
|
$ |
3,933 |
Consolidated |
|
|
|
|
|
|
|
||||
Regulatory capital spending |
$ |
745 |
|
$ |
845 |
|
$ |
1,094 |
|
$ |
2,072 |
Sustaining capital spending |
|
2,651 |
|
|
2,659 |
|
|
6,588 |
|
|
3,997 |
Growth capital spending (1) |
|
61,802 |
|
|
11,143 |
|
|
82,868 |
|
|
62,559 |
Total capital spending |
$ |
65,198 |
|
$ |
14,647 |
|
$ |
90,550 |
|
$ |
68,628 |
(1) |
2024 includes |
Delek Logistics Partners, LP |
|
|
|
|
|||||||
Segment Operating Data (Unaudited) |
|
|
|
|
|||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Gathering and Processing Segment: |
|
|
|
|
|
|
|
||||
Throughputs (average bpd) |
|
|
|
|
|
|
|
||||
El Dorado Assets: |
|
|
|
|
|
|
|
||||
Crude pipelines (non-gathered) |
|
68,430 |
|
|
70,153 |
|
|
71,576 |
|
|
64,835 |
Refined products pipelines to Enterprise Systems |
|
55,283 |
|
|
63,991 |
|
|
59,681 |
|
|
54,686 |
El Dorado Gathering System |
|
13,886 |
|
|
14,774 |
|
|
12,113 |
|
|
13,935 |
East Texas Crude Logistics System |
|
35,891 |
|
|
36,298 |
|
|
26,319 |
|
|
29,928 |
Midland Gathering System |
|
185,179 |
|
|
248,443 |
|
|
201,796 |
|
|
230,907 |
Plains Connection System |
|
188,421 |
|
|
250,550 |
|
|
218,323 |
|
|
248,763 |
Delaware Gathering Assets: |
|
|
|
|
|
|
|
||||
Natural Gas Gathering and Processing (Mcfd(1)) |
|
75,719 |
|
|
69,737 |
|
|
76,092 |
|
|
72,569 |
Crude Oil Gathering (average bpd) |
|
125,123 |
|
|
111,973 |
|
|
124,190 |
|
|
110,935 |
Water Disposal and Recycling (average bpd) |
|
123,856 |
|
|
99,158 |
|
|
120,360 |
|
|
104,920 |
Midland Water Gathering System: |
|
|
|
|
|
|
|
||||
Water Disposal and Recycling (average bpd) (2) |
|
100,335 |
|
|
— |
|
|
100,335 |
|
|
— |
|
|
|
|
|
|
|
|
||||
Wholesale Marketing and Terminalling Segment: |
|
|
|
|
|
|
|
||||
|
|
70,172 |
|
|
69,178 |
|
|
69,246 |
|
|
57,894 |
|
|
22,700 |
|
|
81,617 |
|
|
60,109 |
|
|
78,399 |
|
|
6,552 |
|
|
10,692 |
|
|
5,276 |
|
|
9,871 |
|
$ |
3.38 |
|
$ |
9.64 |
|
$ |
2.85 |
|
$ |
8.76 |
Terminalling throughputs (average bpd) (4) |
|
160,849 |
|
|
121,430 |
|
|
152,272 |
|
|
116,455 |
(1) |
Mcfd - average thousand cubic feet per day. |
(2) |
2024 volumes include volumes from September 11, 2024 through September 30, 2024. |
(3) |
Excludes jet fuel and petroleum coke. |
(4) |
Consists of terminalling throughputs at our |
Information about Delek Logistics Partners, LP can be found on its website (www.deleklogistics.com), investor relations webpage (https://www.deleklogistics.com/investor-relations), news webpage (https://www.deleklogistics.com/news-releases) and its X account (@DelekLogistics).
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106740630/en/
Investor Relations and Media/Public Affairs Contact:
investor.relations@delekus.com
Source: Delek Logistics Partners, LP
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