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Delek Logistics Partners, LP (NYSE: DKL), based in Brentwood, Tennessee, is a dynamic publicly traded master limited partnership (MLP) established by Delek US Holdings in 2012. The company specializes in the ownership, operation, acquisition, and construction of crude oil and refined products logistics and marketing assets. A significant portion of their assets are crucial for supporting the refining operations of Delek's facilities in Tyler, Texas, and El Dorado, Arkansas.
Delek Logistics operates through several segments including Pipelines and Transportation, as well as Investments in Pipeline Joint Ventures. Their services encompass gathering, transporting, and storing crude oil, along with marketing, distributing, and storing refined products. These operations primarily serve Delek's refineries and also cater to third-party customers in the southeastern United States and West Texas.
The Pipelines and Transportation segment is the cornerstone of Delek Logistics' business, featuring pipelines, tanks, offloading facilities, and trucks that facilitate the movement and storage of crude oil and refined products. This segment is responsible for the majority of the company's revenue, showcasing their extensive infrastructure.
Recent achievements highlight Delek Logistics' proactive approach in financial management and expansion. On March 7, 2024, the company announced a public offering of $120 million in common units, with an additional option for underwriters to purchase $13.5 million more. This initiative aims to repay outstanding borrowings under its revolving credit agreement, showcasing their commitment to financial health.
In another significant move, Delek Logistics revealed the pricing of a public offering of 3,116,884 common units at $38.50 per unit on March 7, 2024. The net proceeds are intended to further strengthen their financial standing by reducing debt. Additionally, a tender offer for 6.75% Senior Notes due in 2025, announced on March 11, 2024, further emphasizes their strategic financial maneuvers.
Delek Logistics’ extensive network and joint ventures, particularly in the Permian and Delaware Basins, underline their pivotal role in the midstream energy sector. They provide a range of services including crude oil gathering, transportation, and storage, as well as wholesale marketing and terminalling, which are integral to their operations and growth strategy.
The strong backing from Delek Holdings, which owns the general partner interest and a majority limited partner interest, coupled with their significant customer relationship, adds to Delek Logistics' stability and growth potential. Investors can stay updated with the latest developments and financial performance through their investor relations webpage and news releases.
Delek Logistics Partners, LP (NYSE: DKL) reported second-quarter 2021 net income of $43.2 million or $1.00 per diluted unit, down from $44.4 million year-over-year. Net cash from operating activities increased significantly to $85.8 million compared to $37.5 million in Q2 2020. EBITDA rose to $66.8 million, up from $64.8 million. The company announced a cash distribution of $0.94 per unit, a 4.4% increase from Q2 2020. Following a successful $400 million senior notes offering, total debt stands at $928.7 million, enhancing financial flexibility.
Delek US Holdings reported a second quarter 2021 net loss of $(81.1) million, or $(1.10) per share, contrasting with a net income of $87.7 million, or $1.18 per share, a year prior. Adjusted EBITDA improved to $2.0 million from $(99.6) million year-over-year. The company faced operational disruptions due to winter weather and pipeline outages, incurring $40-$45 million in additional expenses. However, a $156 million federal tax refund and ongoing insurance claims may provide near-term liquidity. Retail and logistics segments showed growth, with logistics' contribution margin reaching $64.2 million.
Delek Logistics Partners, LP (NYSE: DKL) announced a quarterly cash distribution of $0.94 per common limited partner unit for Q2 2021, marking a 2.2% increase from Q1 2021 and a 4.4% increase from Q2 2020. This is the 33rd consecutive quarterly increase, demonstrating business stability. The distribution is payable on August 11, 2021, to unitholders of record on August 5, 2021. CEO Uzi Yemin noted improving product demand trends as the economy reopens, which is expected to support energy demand into the second half of the year.
Delek Logistics Partners, LP (NYSE: DKL) announced it will release its second quarter 2021 results on August 3, 2021, post market close. A conference call to discuss the results will take place on August 4, 2021, at 7:30 a.m. CT. The live broadcast will be accessible online, with a 90-day replay available. Additionally, investors can tune into Delek US Holdings, Inc.'s (NYSE: DK) earnings call on the same day at 8:30 a.m. CT, which could provide relevant market insights.
Delek Logistics Partners, LP (NYSE: DKL) announced the pricing of a $400 million offering of 7.125% senior notes due 2028. The offering is set to close on May 24, 2021, pending customary conditions. The proceeds will be used to repay a portion of outstanding borrowings under its revolving credit facility. The notes are offered only to qualified institutional buyers, exempt from registration under the Securities Act. Forward-looking statements highlight potential risks, including market uncertainties and public health impacts.
Delek Logistics Partners, LP (NYSE: DKL) announced plans to offer $400 million in senior notes due 2028 in a private placement, subject to market conditions. The proceeds will be used to reduce outstanding borrowings under its revolving credit facility. The offering is only for qualified institutional buyers, exempt from registration under the Securities Act. This press release serves as notification under Rule 135c and is not an offer for the sale of the Notes. Delek Logistics, based in Brentwood, Tennessee, operates logistics and marketing assets for crude oil and refined products.
Delek US Holdings, Inc. announced that at its 2021 Annual Meeting, shareholders overwhelmingly elected all eight director nominees, achieving approximately 90% support. The company expressed gratitude to its shareholders and reiterated its commitment to enhancing shareholder value while overseeing corporate strategy. Additionally, all other proposals from the meeting were approved. Delek plans to file the preliminary and final voting results with the SEC as per regulations.
Delek Logistics Partners reported a net income of $36.3 million for Q1 2021, up from $27.8 million in Q1 2020. Earnings per unit rose to $0.83, compared to $0.76 a year earlier. Net cash from operations increased to $61.7 million from $34.8 million. Distributable cash flow also saw growth, reaching $52.5 million. The company announced a 3.4% year-over-year distribution growth, reflecting its commitment to 5% annual growth. Despite challenges from Winter Storm Uri, increased refinery utilization is expected, providing a positive outlook. A quarterly distribution of $0.92 per unit was declared.
Delek Logistics Partners, LP (NYSE: DKL) announced a quarterly cash distribution of $0.92 per common limited partner unit for Q1 2021, reflecting a 1.1% increase from the previous quarter. This marks the 32nd consecutive quarterly increase and a 3.4% rise from Q1 2020. The distribution is payable on May 14, 2021, to unitholders of record on May 10, 2021. CEO Uzi Yemin noted improving demand trends connected to vaccination efforts, which may bolster energy demand for the latter half of the year.
Delek US Holdings (NYSE: DK) has announced it will release its first quarter 2021 results on May 4, 2021, after market close. A conference call to discuss these results is scheduled for May 5, 2021, at 8:30 a.m. CT (9:30 a.m. ET). Investors can access the live broadcast on DelekUS.com. Additionally, Delek Logistics Partners (NYSE: DKL) will hold its earnings call on the same day at 7:30 a.m. CT (8:30 a.m. ET).
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