Delek Logistics Partners, LP (NYSE:DKL) ("Delek Logistics") today
announced its financial results for the fourth quarter 2016. For
the three months ended December 31, 2016, Delek Logistics
reported net income attributable to all partners of $15.3 million,
or $0.47 per diluted common limited partner unit. This compares to
net income attributable to all partners of $15.3 million, or $0.55
per diluted common limited partner unit, in the fourth quarter
2015. Distributable cash flow ("DCF") was $18.5 million in the
fourth quarter 2016, compared to $18.9 million in the prior-year
period.
For the fourth quarter 2016, earnings before
interest, taxes, depreciation and amortization ("EBITDA") was $24.4
million compared to $23.6 million in the prior-year period. This
improvement was driven by a combination of higher volume and gross
margin per barrel in west Texas as demand benefited from increased
drilling activity in the Permian Basin and lower operating
expenses, which was partially offset by lower volume in SALA
Gathering System and on the Paline pipeline.
For 2016, net income attributable to all
partners was $62.8 million, or $2.07 per diluted common limited
partner unit. This compares to net income attributable to all
partners of $66.8 million, or $2.52 per diluted common limited
partner unit for 2015. Net cash from operations was $100.7 million
and distributable cash flow was $81.7 million in 2016 compared to
net cash from operations of $68.0 million and distributable cash
flow of $81.3 million in 2015. EBITDA was $97.3 million in 2016,
compared to $96.5 million in 2015.
Based on the declared distribution for the
fourth quarter 2016, the distributable cash flow coverage ratio for
the fourth quarter was 0.90x, which was reduced by spending for
maintenance and regulatory capital expenditures that shifted into
the fourth quarter. On an annual basis for 2016, the distributable
cash flow coverage ratio was 1.09x.
Uzi Yemin, Chairman and Chief Executive Officer
of Delek Logistics' general partner, remarked: "During the fourth
quarter, our focus on cost savings initiatives played a role in the
25 percent year-over-year decline in operating expenses. Also the
improvement in west Texas activity in the Permian Basin that
benefited our wholesale business during the fourth quarter has
continued into 2017. We maintained financial flexibility, ending
the quarter with approximately $300 million of capacity on our
credit facility and a leverage ratio of 3.85 times. This financial
position supported the 15.3 percent year-over-year increase in our
declared fourth quarter distribution."
Yemin concluded, "In January, the Caddo joint
venture crude oil pipeline began operating and we expect
utilization to increase through 2017. With a continued increase in
drilling activity in the Permian Basin, our RIO joint venture
pipeline, which began operating in September, is well positioned in
the Delaware Basin to benefit from increased crude oil production
in the future. As we benefit from our joint venture
investments in 2017, we remain focused on creating long term value
for our unitholders as we continue to evaluate potential third
party acquisition opportunities and explore options to partner with
Delek US in the future. Delek US' recent announcement of a
definitive agreement to acquire the remaining outstanding common
stock of Alon USA Energy, Inc. should create future potential drop
down opportunities after closing that can support additional growth
at Delek Logistics. It will also create a refining system with
significant access to the Permian Basin, which should provide a
platform for future potential logistics projects to support these
operations. The combination of the financial flexibility provided
by our balance sheet, potential for increased dropdown assets at
our sponsor and continued focus on growth initiatives, gives us
confidence that we can increase our distribution per limited
partner unit by at least 10% annually through 2019."
Distribution and LiquidityOn
January 25, 2017, Delek Logistics declared a quarterly cash
distribution for the fourth quarter of $0.68 per limited partner
unit, which equates to $2.72 per limited partner unit on an
annualized basis. This distribution was paid on February 14, 2017
to unitholders of record on February 7, 2017. This represents a 3.8
percent increase from the third quarter 2016 distribution of $0.655
per limited partner unit, or $2.62 per limited partner unit on an
annualized basis, and a 15.3 percent increase over Delek Logistics’
fourth quarter 2015 distribution of $0.59 per limited partner unit,
or $2.36 per limited partner unit annualized. For the fourth
quarter 2016, the total cash distribution declared to all partners,
including IDRs, was $20.5 million.
As of December 31, 2016, Delek Logistics
had total debt of approximately $392.6 million. Additional
borrowing capacity, subject to certain covenants, under the $700.0
million credit facility was approximately $301.4 million.
Financial ResultsRevenue for
the fourth quarter 2016 was $124.7 million compared to $108.9
million in the prior year period. The increase in revenue is
primarily due to higher volume and prices in the west Texas
wholesale business. Total operating expenses were $8.8 million
compared to $11.7 million in the fourth quarter 2015. This
reduction in operating expenses was primarily due to lower outside
services and maintenance costs on a year-over-year basis, partly as
a result of a higher level of maintenance projects that were
completed in the prior year period and cost savings initiatives.
Total segment contribution margin increased to $27.2 million in the
fourth quarter of 2016 compared to $26.2 million in the fourth
quarter 2015. General and administrative expenses were $2.3 million
for the fourth quarter 2016, in line with $2.3 million in the
prior-year period.
Pipelines and Transportation
SegmentThe contribution margin in the fourth quarter 2016
was $16.8 million compared to $17.5 million in the fourth quarter
2015. This change was primarily due to reduced performance in the
Paline Pipeline as a result of a reduction in both the amount of
capacity that is leased and the lease fee on a year-over-year
basis. Also, lower volume on the SALA gathering system on a
year-over-year basis was a factor in the change in contribution
margin. This was partially offset by a decline in operating
expenses to $6.9 million in the fourth quarter 2016 compared to
$10.7 million in the prior year period.
Wholesale Marketing and Terminalling
SegmentDuring the fourth quarter 2016, contribution margin
was $10.3 million, compared to $8.7 million in the fourth quarter
2015. This increase was primarily due to improved performance in
the west Texas wholesale operations, at the El Dorado terminal and
under the east Texas marketing agreement on a year-over-year basis.
Operating expenses were $1.8 million in the fourth quarter 2016,
compared to $1.0 million in the fourth quarter of 2015.
In the west Texas wholesale business, average
throughput in the fourth quarter 2016 was 13,906 barrels per day
compared to 12,488 barrels per day in the fourth quarter 2015. The
wholesale gross margin in west Texas increased year-over-year to
$1.96 per barrel and included approximately $1.9 million, or $1.51
per barrel, from renewable identification numbers (RINs) generated
in the quarter. During the fourth quarter 2015, the wholesale
gross margin was $1.05 per barrel and included $0.9 million from
RINs, or $0.79 per barrel.
Average terminalling throughput volume of
119,934 barrels per day during the quarter increased on a
year-over-year basis from 114,136 barrels per day in the fourth
quarter 2015 primarily due to higher throughput at the El Dorado,
Arkansas and Mount Pleasant, Texas terminals. During the fourth
quarter 2016, average volume under the east Texas marketing
agreement with Delek US was 68,114 barrels per day compared to
66,950 barrels per day during the fourth quarter 2015.
Project Development UpdateIn
March 2015, Delek Logistics, through wholly owned subsidiaries,
entered into two joint ventures (Caddo Pipeline and RIO Pipeline).
Delek Logistics’ total investment for the construction of the two
joint venture pipelines was financed through a combination of cash
from operations and borrowings under its revolving credit facility.
Through December 31, 2016, approximately $102.7 million has
been invested in these projects. The RIO Pipeline began operating
in September 2016 and the Caddo Pipeline was operational in January
2017.
Fourth Quarter 2016 Results | Conference
Call InformationDelek Logistics will hold a conference
call to discuss its fourth quarter 2016 results on Tuesday,
February 28, 2017 at 7:00 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. For those who cannot listen to the live broadcast, a
telephonic replay will be available through May 29, 2017 by dialing
(855) 859-2056, passcode 49469876. 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’
(NYSE:DK) fourth quarter 2016 earnings conference call on Tuesday,
February 28, 2017 at 8:00 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,
LPDelek Logistics Partners, LP, headquartered in
Brentwood, Tennessee, was formed by Delek US Holdings, Inc.
(NYSE:DK) to own, operate, acquire and construct crude oil and
refined products logistics and marketing assets.
Safe Harbor Provisions Regarding
Forward-Looking StatementsThis press release contains
“forward-looking” statements within the meaning of 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 Holdings, thereby
subjecting us to Delek US Holdings' 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; uncertainty regarding the outcome of Delek US' agreement
to acquire the remaining outstanding common stock of Alon USA
Energy, Inc.; 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. There can be no assurance that actual results will not
differ from those expected by management or described in
forward-looking statements of Delek Logistics. Delek Logistics
undertakes no obligation to update or revise such forward-looking
statements to reflect events or circumstances that occur, or which
Delek Logistics becomes aware of, after the date hereof.
Factors Affecting
Comparability:On March 31, 2015, Delek Logistics acquired
the Tyler crude oil storage tank and the El Dorado rail offloading
facility (the "Logistics Assets") from Delek US. These assets were
accounted for as transfers between entities under common control.
Accordingly, the accompanying financial statements of the
Partnership have been retrospectively adjusted to include the
historical results of these assets in accordance with U.S. GAAP.
For the period ended March 31, 2015, the acquisition date of the
Logistics Assets, the retrospective adjustments were made to the
financial statements. The historical results of the Logistics
Assets, prior to the acquisition date, are referred to as the
"Logistics Assets Predecessor".
Non-GAAP Disclosures:EBITDA,
distributable cash flow and distributable cash flow coverage ratio
are non-U.S. GAAP supplemental financial measures that management
and external users of our combined 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 Delek Logistics' unitholders;
- 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.
Delek Logistics believes that the presentation
of EBITDA, distributable cash flow and distributable cash flow
coverage ratio provide useful information to investors in assessing
its financial condition, its results of operations and cash flow
its business is generating. EBITDA, distributable cash flow and
distributable cash flow coverage ratio should not be considered in
isolation or as alternatives to net income, operating income, cash
from operations or any other measure of financial performance or
liquidity presented in accordance with U.S. GAAP. EBITDA,
distributable cash flow and distributable cash flow coverage ratio
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 its industry, Delek Logistics' definitions of
EBITDA and distributable cash flow may not be comparable to
similarly titled measures of other partnerships. Please see the
tables below 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. Also,
please see the accompanying table providing the calculation of
distributable cash flow coverage ratio.
We also include the results of our operations
excluding the results of our Logistics Assets Predecessor. We
believe that the presentation of our results of operations
excluding results of our Logistics Assets Predecessor will provide
useful information to investors in assessing our results of
operations by allowing them to analyze operations of our business
under our current commercial agreements with Delek US.
|
Delek Logistics Partners, LP |
Condensed Consolidated Balance Sheets (Unaudited) |
|
|
December 31, |
|
December 31, |
|
|
2016 |
|
2015 |
|
|
|
|
|
|
|
(In thousands) |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
59 |
|
|
$ |
— |
|
Accounts
receivable |
|
19,202 |
|
|
35,049 |
|
Accounts
receivable from related parties |
|
2,834 |
|
|
— |
|
Inventory |
|
8,875 |
|
|
10,451 |
|
Other
current assets |
|
1,071 |
|
|
1,540 |
|
Total
current assets |
|
32,041 |
|
|
47,040 |
|
Property, plant and
equipment: |
|
|
|
|
Property,
plant and equipment |
|
342,407 |
|
|
325,647 |
|
Less:
accumulated depreciation |
|
(91,378 |
) |
|
(71,799 |
) |
Property,
plant and equipment, net |
|
251,029 |
|
|
253,848 |
|
Equity method
investments |
|
101,080 |
|
|
40,678 |
|
Goodwill |
|
12,203 |
|
|
12,203 |
|
Intangible assets,
net |
|
14,420 |
|
|
15,482 |
|
Other non-current
assets |
|
4,774 |
|
|
6,037 |
|
Total
assets |
|
$ |
415,547 |
|
|
$ |
375,288 |
|
LIABILITIES AND DEFICIT |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
10,853 |
|
|
$ |
6,850 |
|
Accounts
payable to related parties |
|
— |
|
|
3,992 |
|
Excise
and other taxes payable |
|
4,841 |
|
|
4,871 |
|
Tank
inspection liabilities |
|
1,013 |
|
|
1,890 |
|
Pipeline
release liabilities |
|
1,097 |
|
|
1,393 |
|
Accrued
expenses and other current liabilities |
|
2,925 |
|
|
1,694 |
|
Total
current liabilities |
|
20,729 |
|
|
20,690 |
|
Non-current
liabilities: |
|
|
|
|
Revolving
credit facility |
|
392,600 |
|
|
351,600 |
|
Asset
retirement obligations |
|
3,772 |
|
|
3,506 |
|
Other
non-current liabilities |
|
11,730 |
|
|
10,510 |
|
Total
non-current liabilities |
|
408,102 |
|
|
365,616 |
|
Total
liabilities |
|
428,831 |
|
|
386,306 |
|
Deficit: |
|
|
|
|
Common
unitholders - public; 9,263,415 units issued and outstanding at
December 31, 2016 (9,478,273 at December 31, 2015) |
|
188,013 |
|
|
198,401 |
|
Common
unitholders - Delek; 15,065,192 units issued and outstanding at
December 31, 2016 (2,799,258 at December 31, 2015) |
|
(195,076 |
) |
|
(280,828 |
) |
Subordinated unitholders - Delek; 0 units issued and outstanding at
December 31, 2016 (11,999,258 at December 31, 2015) |
|
— |
|
|
78,601 |
|
General
partner - 496,502 units issued and outstanding at December 31, 2016
(495,445 at December 31, 2015) |
|
(6,221 |
) |
|
(7,192 |
) |
Total
deficit |
|
(13,284 |
) |
|
(11,018 |
) |
Total
liabilities and deficit |
|
$ |
415,547 |
|
|
$ |
375,288 |
|
|
Delek Logistics Partners, LP |
Condensed Consolidated Statements of Income
(Unaudited) |
|
|
Three Months Ended December
31, |
|
Year Ended December
31, |
|
|
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 (1) |
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except unit and per unit
data) |
Net sales: |
|
|
|
|
|
|
|
|
Affiliate |
|
$ |
37,750 |
|
|
$ |
38,589 |
|
|
$ |
149,564 |
|
|
$ |
152,564 |
|
Third-Party |
|
86,930 |
|
|
70,342 |
|
|
298,495 |
|
|
437,105 |
|
Net sales |
|
124,680 |
|
|
108,931 |
|
|
448,059 |
|
|
589,669 |
|
Operating costs and
expenses: |
|
|
|
|
|
|
|
|
Cost of
goods sold |
|
88,777 |
|
|
71,018 |
|
|
302,158 |
|
|
436,304 |
|
Operating
expenses |
|
8,753 |
|
|
11,732 |
|
|
37,198 |
|
|
44,923 |
|
General
and administrative expenses |
|
2,338 |
|
|
2,290 |
|
|
10,256 |
|
|
11,384 |
|
Depreciation and amortization |
|
5,649 |
|
|
5,907 |
|
|
20,813 |
|
|
19,692 |
|
Loss
(gain) on asset disposals |
|
— |
|
|
122 |
|
|
(16 |
) |
|
104 |
|
Total
operating costs and expenses |
|
105,517 |
|
|
91,069 |
|
|
370,409 |
|
|
512,407 |
|
Operating
income |
|
19,163 |
|
|
17,862 |
|
|
77,650 |
|
|
77,262 |
|
Interest expense,
net |
|
3,695 |
|
|
3,042 |
|
|
13,587 |
|
|
10,658 |
|
Loss on equity method
investments |
|
435 |
|
|
146 |
|
|
1,178 |
|
|
588 |
|
Income before income
tax (benefit) expense |
|
15,033 |
|
|
14,674 |
|
|
62,885 |
|
|
66,016 |
|
Income tax (benefit)
expense |
|
(279 |
) |
|
(621 |
) |
|
81 |
|
|
(195 |
) |
Net income |
|
15,312 |
|
|
15,295 |
|
|
62,804 |
|
|
66,211 |
|
Less: loss attributable
to the Logistics Assets Predecessor |
|
— |
|
|
— |
|
|
— |
|
|
(637 |
) |
Net income attributable
to partners |
|
15,312 |
|
|
15,295 |
|
|
62,804 |
|
|
66,848 |
|
Comprehensive income
attributable to partners |
|
$ |
15,312 |
|
|
$ |
15,295 |
|
|
$ |
62,804 |
|
|
$ |
66,848 |
|
|
|
|
|
|
|
|
|
|
Less: General partner's
interest in net income, including incentive distribution
rights |
|
3,890 |
|
|
1,784 |
|
|
12,193 |
|
|
5,163 |
|
Limited partners'
interest in net income |
|
$ |
11,422 |
|
|
$ |
13,511 |
|
|
$ |
50,611 |
|
|
$ |
61,685 |
|
|
|
|
|
|
|
|
|
|
Net income per limited
partner unit: |
|
|
|
|
|
|
|
|
Common units -
(basic) |
|
$ |
0.47 |
|
|
$ |
0.56 |
|
|
$ |
2.08 |
|
|
$ |
2.55 |
|
Common units -
(diluted) |
|
$ |
0.47 |
|
|
$ |
0.55 |
|
|
$ |
2.07 |
|
|
$ |
2.52 |
|
Subordinated units -
Delek (basic and diluted) |
|
$ |
— |
|
|
$ |
0.56 |
|
|
$ |
2.19 |
|
|
$ |
2.54 |
|
|
|
|
|
|
|
|
|
|
Weighted average
limited partner units outstanding: (2) |
|
|
|
|
|
|
|
|
Common units -
basic |
|
24,310,962 |
|
|
12,256,721 |
|
|
22,490,264 |
|
|
12,237,154 |
|
Common units -
diluted |
|
24,366,999 |
|
|
12,360,179 |
|
|
22,558,717 |
|
|
12,356,914 |
|
Subordinated units -
Delek (basic and diluted) |
|
— |
|
|
11,999,258 |
|
|
1,803,167 |
|
|
11,999,258 |
|
|
|
|
|
|
|
|
|
|
Cash distribution per
limited partner unit |
|
$ |
0.680 |
|
|
$ |
0.590 |
|
|
$ |
2.575 |
|
|
$ |
2.240 |
|
(1) Includes the historical results of the
Logistics Assets Predecessor. Prior to the El Dorado offloading
racks acquisition and Tyler crude oil storage tank acquisition on
March 31, 2015, the Logistics Assets Predecessor did not record
revenues for intercompany throughput and storage services.(2) In
February 2016, the requirements under the partnership agreement for
the conversion of all subordinated units into common units were
satisfied and the subordination period ended. This affected the
weighted average units outstanding during the year ended December
31, 2016.
|
Delek Logistics Partners, LP |
Consolidated Statements of Income (Unaudited) |
Reconciliation of Partnership to Predecessor |
|
|
|
|
|
|
|
|
|
|
|
Delek Logistics Partners, LP |
|
El Dorado Rail OffloadingRacks
(1) |
|
Tyler Crude Oil Storage Tank (1) |
|
Year Ended December 31, 2015 |
|
|
|
|
El Dorado Assets Predecessor |
|
Tyler Assets Predecessor |
|
|
|
|
(In thousands) |
Net Sales |
|
$ |
589,669 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
589,669 |
|
Operating costs and
expenses: |
|
|
|
|
|
|
|
|
Cost of goods
sold |
|
436,304 |
|
|
— |
|
|
— |
|
|
436,304 |
|
Operating
expenses |
|
44,756 |
|
|
167 |
|
|
— |
|
|
44,923 |
|
General and
administrative expenses |
|
11,384 |
|
|
— |
|
|
— |
|
|
11,384 |
|
Depreciation and
amortization |
|
19,222 |
|
|
372 |
|
|
98 |
|
|
19,692 |
|
Loss on asset
disposals |
|
104 |
|
|
— |
|
|
— |
|
|
104 |
|
Total
operating costs and expenses |
|
511,770 |
|
|
539 |
|
|
98 |
|
|
512,407 |
|
Operating income
(loss) |
|
77,899 |
|
|
(539 |
) |
|
(98 |
) |
|
77,262 |
|
Interest expense,
net |
|
10,658 |
|
|
— |
|
|
— |
|
|
10,658 |
|
Loss on
equity method investments |
|
588 |
|
|
— |
|
|
— |
|
|
588 |
|
Net income (loss)
before income tax benefit |
|
66,653 |
|
|
(539 |
) |
|
(98 |
) |
|
66,016 |
|
Income tax benefit |
|
(195 |
) |
|
— |
|
|
— |
|
|
(195 |
) |
Net income (loss) |
|
66,848 |
|
|
(539 |
) |
|
(98 |
) |
|
66,211 |
|
Less: loss
attributable to Predecessors |
|
— |
|
|
(539 |
) |
|
(98 |
) |
|
(637 |
) |
Net income attributable
to partners |
|
$ |
66,848 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
66,848 |
|
|
|
|
|
|
|
|
|
|
(1) The information presented is for the year
months ended December 31, 2015, disaggregated to present the
results of operations of the Partnership and the Logistics Assets
Predecessor. Prior to the El Dorado offloading racks acquisition
and Tyler crude oil storage tank acquisition on March 31, 2015, the
Logistics Assets Predecessor did not record revenues for
intercompany throughput and storage services.
|
Delek Logistics Partners, LP |
Condensed Consolidated Statements of Cash Flows
(Unaudited) |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
|
|
|
|
2016 |
|
2015 (1) |
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Data |
|
|
|
|
|
Net cash
provided by operating activities |
|
$ |
100,707 |
|
|
$ |
68,024 |
|
|
Net cash
used in investing activities |
|
(72,692 |
) |
|
(56,592 |
) |
|
Net cash
used in financing activities |
|
(27,956 |
) |
|
(13,293 |
) |
|
|
Net
increase (decrease) in cash and cash equivalents |
|
$ |
59 |
|
|
$ |
(1,861 |
) |
|
(1) Includes the historical cash flows of the Logistics Assets
predecessor.
|
Delek Logistics Partners, LP |
Reconciliation of Amounts Reported Under U.S.
GAAP |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
($ in thousands) |
|
2016 |
|
2015 |
|
2016 |
|
2015 (1) |
Reconciliation
of net income to EBITDA: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
15,312 |
|
|
$ |
15,295 |
|
|
$ |
62,804 |
|
|
$ |
66,211 |
|
Add: |
|
|
|
|
|
|
|
|
Income
tax (benefit) expense |
|
(279 |
) |
|
(621 |
) |
|
81 |
|
|
(195 |
) |
Depreciation and amortization |
|
5,649 |
|
|
5,907 |
|
|
20,813 |
|
|
19,692 |
|
Interest
expense, net |
|
3,695 |
|
|
3,042 |
|
|
13,587 |
|
|
10,658 |
|
EBITDA |
|
$ |
24,377 |
|
|
$ |
23,623 |
|
|
$ |
97,285 |
|
|
$ |
96,366 |
|
|
|
|
|
|
|
|
|
|
Reconciliation
of net cash from operating activities to distributable cash
flow: |
|
|
|
|
|
|
|
|
Net cash
provided by operating activities |
|
$ |
13,946 |
|
|
$ |
1,262 |
|
|
$ |
100,707 |
|
|
$ |
68,024 |
|
Changes
in assets and liabilities |
|
7,652 |
|
|
20,476 |
|
|
(14,861 |
) |
|
20,106 |
|
Maintenance and regulatory capital expenditures |
|
(3,569 |
) |
|
(2,674 |
) |
|
(5,920 |
) |
|
(11,841 |
) |
Reimbursement from Delek for capital expenditures |
|
352 |
|
|
14 |
|
|
1,880 |
|
|
5,220 |
|
Accretion
of asset retirement obligations |
|
(67 |
) |
|
(64 |
) |
|
(266 |
) |
|
(251 |
) |
Deferred
income taxes |
|
173 |
|
|
9 |
|
|
173 |
|
|
(14 |
) |
(Loss)
gain on asset disposals |
|
— |
|
|
(122 |
) |
|
16 |
|
|
(104 |
) |
|
|
|
|
|
|
|
|
|
Distributable Cash
Flow |
|
$ |
18,487 |
|
|
$ |
18,901 |
|
|
$ |
81,729 |
|
|
$ |
81,140 |
|
|
|
|
|
|
|
|
|
|
(1) The information presented includes the
results of operations of the Logistics Assets Predecessor. Prior to
the El Dorado offloading racks acquisition and Tyler crude oil
storage tank acquisition on March 31, 2015, the Logistics Assets
Predecessor did not record revenues for intercompany throughput and
storage services.
|
Delek Logistics Partners, LP |
Reconciliation of Amounts Reported Under U.S.
GAAP |
|
|
Delek Logistics Partners, LP |
|
Logistics Assets (1) |
|
Year Ended December 31, 2015 |
|
|
|
|
|
|
|
($ in thousands) |
|
|
|
Logistics Assets Predecessor |
|
|
Reconciliation
of net income to EBITDA: |
|
|
|
|
|
|
Net income (loss) |
|
$ |
66,848 |
|
|
$ |
(637 |
) |
|
$ |
66,211 |
|
Add: |
|
|
|
|
|
|
Income tax benefit |
|
(195 |
) |
|
— |
|
|
(195 |
) |
Depreciation and
amortization |
|
19,222 |
|
|
470 |
|
|
19,692 |
|
Interest expense,
net |
|
10,658 |
|
|
— |
|
|
10,658 |
|
EBITDA |
|
$ |
96,533 |
|
|
$ |
(167 |
) |
|
$ |
96,366 |
|
|
|
|
|
|
|
|
Reconciliation
of net cash from operating activities to distributable cash
flow: |
|
|
|
|
|
|
Net cash provided by
(used in) operating activities |
|
$ |
68,191 |
|
|
$ |
(167 |
) |
|
$ |
68,024 |
|
Changes in assets and
liabilities |
|
20,106 |
|
|
— |
|
|
20,106 |
|
Maintenance and
regulatory capital expenditures |
|
5,220 |
|
|
— |
|
|
5,220 |
|
Reimbursement from
Delek for capital expenditures |
|
(11,841 |
) |
|
— |
|
|
(11,841 |
) |
Accretion of asset
retirement obligations |
|
(251 |
) |
|
— |
|
|
(251 |
) |
Deferred income
taxes |
|
(14 |
) |
|
— |
|
|
(14 |
) |
Loss on asset
disposals |
|
(104 |
) |
|
— |
|
|
(104 |
) |
|
|
|
|
|
|
|
Distributable Cash
Flow |
|
$ |
81,307 |
|
|
$ |
(167 |
) |
|
$ |
81,140 |
|
|
|
|
|
|
|
|
(1) The information presented is for the year
ended December 31, 2015, disaggregated to present the results
of operations of the Partnership and the Logistics Assets
Predecessor. Prior to the El Dorado offloading racks acquisition
and Tyler crude oil storage tank acquisition on March 31, 2015, the
Logistics Assets Predecessor did not record revenues for
intercompany throughput and storage services.
|
Delek Logistics Partners, LP |
Distributable Coverage Ratio Calculation |
(In thousands) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
Distributions to
partners of Delek Logistics, LP |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Limited
partners' distribution on common units |
|
$ |
16,543 |
|
|
$ |
14,324 |
|
|
$ |
62,582 |
|
|
$ |
54,318 |
|
General
partner's distributions |
|
338 |
|
|
292 |
|
|
1,278 |
|
|
1,108 |
|
General
partner's incentive distribution rights |
|
3,656 |
|
|
1,508 |
|
|
11,159 |
|
|
3,904 |
|
Total Distributions to
be paid |
|
$ |
20,537 |
|
|
$ |
16,124 |
|
|
$ |
75,019 |
|
|
$ |
59,330 |
|
|
|
|
|
|
|
|
|
|
Distributable Cash
Flow |
|
$ |
18,487 |
|
|
$ |
18,901 |
|
|
$ |
81,729 |
|
|
$ |
81,307 |
|
Distributable cash flow
coverage ratio (1) |
|
0.90x |
|
1.17x |
|
1.09x |
|
1.37x |
(1) Distributable cash flow coverage ratio is calculated by
dividing distributable cash flow by distributions to be paid in
each respective period. |
Predecessor costs are excluded from distributable cash flow
for the year ended December 31, 2015. |
|
Delek Logistics Partners, LP |
Segment Data (unaudited) |
(In thousands) |
|
|
Three Months Ended December 31,
2016 |
|
|
Pipelines & Transportation |
|
Wholesale Marketing &
Terminalling |
|
Consolidated |
Affiliate |
|
$ |
26,069 |
|
|
$ |
11,681 |
|
|
$ |
37,750 |
|
Third-Party |
|
2,684 |
|
|
84,246 |
|
|
86,930 |
|
Net
sales |
|
28,753 |
|
|
95,927 |
|
|
124,680 |
|
Operating
costs and expenses: |
|
|
|
|
|
|
Cost of
goods sold |
|
5,024 |
|
|
83,753 |
|
|
88,777 |
|
Operating
expenses |
|
6,918 |
|
|
1,835 |
|
|
8,753 |
|
Segment
contribution margin |
|
$ |
16,811 |
|
|
$ |
10,339 |
|
|
27,150 |
|
General
and administrative expense |
|
|
|
|
|
2,338 |
|
Depreciation and amortization |
|
|
|
|
|
5,649 |
|
Operating
income |
|
|
|
|
|
$ |
19,163 |
|
Total Assets |
|
$ |
337,349 |
|
|
$ |
78,198 |
|
|
$ |
415,547 |
|
|
|
|
|
|
|
|
Capital spending |
|
|
|
|
|
|
Maintenance capital
spending |
|
$ |
3,758 |
|
|
$ |
1,144 |
|
|
$ |
4,902 |
|
Discretionary capital
spending |
|
683 |
|
|
1,173 |
|
|
1,856 |
|
Total capital
spending |
|
$ |
4,441 |
|
|
$ |
2,317 |
|
|
$ |
6,758 |
|
|
|
Three Months Ended December 31,
2015 |
|
|
Pipelines & Transportation |
|
Wholesale Marketing &
Terminalling |
|
Consolidated |
Affiliate |
|
$ |
26,115 |
|
|
$ |
12,474 |
|
|
$ |
38,589 |
|
Third-Party |
|
6,589 |
|
|
63,753 |
|
|
70,342 |
|
Net sales |
|
32,704 |
|
|
76,227 |
|
|
108,931 |
|
Operating costs and
expenses: |
|
|
|
|
|
|
Cost of goods sold |
|
4,481 |
|
|
66,537 |
|
|
71,018 |
|
Operating expenses |
|
10,720 |
|
|
1,012 |
|
|
11,732 |
|
Segment contribution
margin |
|
$ |
17,503 |
|
|
$ |
8,678 |
|
|
26,181 |
|
General and
administrative expense |
|
|
|
|
|
2,290 |
|
Depreciation and
amortization |
|
|
|
|
|
5,907 |
|
Loss on asset
disposals |
|
|
|
|
|
122 |
|
Operating income |
|
|
|
|
|
$ |
17,862 |
|
Total assets |
|
$ |
283,553 |
|
|
$ |
91,735 |
|
|
$ |
375,288 |
|
|
|
|
|
|
|
|
Capital spending |
|
|
|
|
|
|
Maintenance capital
spending |
|
$ |
1,200 |
|
|
$ |
808 |
|
|
$ |
2,008 |
|
Discretionary capital
spending |
|
2,403 |
|
|
486 |
|
|
2,889 |
|
Total capital
spending |
|
$ |
3,603 |
|
|
$ |
1,294 |
|
|
$ |
4,897 |
|
|
Delek Logistics Partners, LP |
Segment Data (unaudited) |
(In thousands) |
|
|
Year Ended December 31, 2016 |
|
|
Pipelines & Transportation |
|
Wholesale Marketing
&Terminalling |
|
Consolidated |
Affiliate |
|
$ |
103,749 |
|
|
$ |
45,815 |
|
|
$ |
149,564 |
|
Third-Party |
|
18,423 |
|
|
280,072 |
|
|
298,495 |
|
Net
sales |
|
$ |
122,172 |
|
|
$ |
325,887 |
|
|
$ |
448,059 |
|
Operating
costs and expenses: |
|
|
|
|
|
|
Cost of
goods sold |
|
19,425 |
|
|
282,733 |
|
|
302,158 |
|
Operating
expenses |
|
29,235 |
|
|
7,963 |
|
|
37,198 |
|
Segment
contribution margin |
|
$ |
73,512 |
|
|
$ |
35,191 |
|
|
108,703 |
|
General
and administrative expense |
|
|
|
|
|
10,256 |
|
Depreciation and amortization |
|
|
|
|
|
20,813 |
|
Gain on
asset disposals |
|
|
|
|
|
(16 |
) |
Operating
income |
|
|
|
|
|
$ |
77,650 |
|
|
|
|
|
|
|
|
Capital spending: |
|
|
|
|
|
|
Maintenance capital
spending |
|
$ |
7,386 |
|
|
$ |
1,317 |
|
|
$ |
8,703 |
|
Discretionary capital
spending |
|
1,092 |
|
|
1,972 |
|
|
3,064 |
|
Total capital
spending |
|
$ |
8,478 |
|
|
$ |
3,289 |
|
|
$ |
11,767 |
|
|
|
Year Ended December 31, 2015
(1) |
|
|
Pipelines & Transportation |
|
Wholesale Marketing &
Terminalling |
|
Consolidated |
Affiliate |
|
$ |
102,551 |
|
|
$ |
50,013 |
|
|
$ |
152,564 |
|
Third-Party |
|
28,828 |
|
|
408,277 |
|
|
437,105 |
|
Net sales |
|
$ |
131,379 |
|
|
$ |
458,290 |
|
|
$ |
589,669 |
|
Operating costs and
expenses: |
|
|
|
|
|
|
Cost of goods sold |
|
19,607 |
|
|
416,697 |
|
|
436,304 |
|
Operating expenses |
|
33,751 |
|
|
11,172 |
|
|
44,923 |
|
Segment contribution
margin |
|
$ |
78,021 |
|
|
$ |
30,421 |
|
|
108,442 |
|
General and
administrative expense |
|
|
|
|
|
11,384 |
|
Depreciation and
amortization |
|
|
|
|
|
19,692 |
|
Loss on asset
disposals |
|
|
|
|
|
104 |
|
Operating income |
|
|
|
|
|
$ |
77,262 |
|
|
|
|
|
|
|
|
Capital spending |
|
|
|
|
|
|
Maintenance capital
spending |
|
$ |
12,965 |
|
|
$ |
1,944 |
|
|
$ |
14,909 |
|
Discretionary capital
spending |
|
3,065 |
|
|
4,453 |
|
|
7,518 |
|
Total capital spending
(2) |
|
$ |
16,030 |
|
|
$ |
6,397 |
|
|
$ |
22,427 |
|
(1) The information presented includes the
results of operations of the Logistics Assets Predecessor. Prior to
the El Dorado offloading racks acquisition and Tyler crude oil
storage tank acquisition on March 31, 2015, the Logistics Assets
Predecessor did not record revenues for intercompany throughput and
storage services.(2) Capital spending includes expenditures of
($0.1) million incurred in connection with the Logistics Assets
Predecessor.
|
Delek Logistics Partners, LP |
Segment Data (Unaudited) |
(In thousands) |
|
|
Year Ended December 31, 2015 |
|
|
Pipelines & Transportation |
|
|
Delek Logistics Partners, LP |
|
Predecessor - Logistics Assets |
|
Year Ended December 31, 2015 |
Net
Sales |
|
$ |
131,379 |
|
|
$ |
— |
|
|
$ |
131,379 |
|
Operating
costs and expenses: |
|
|
|
|
|
|
Cost of goods sold |
|
19,607 |
|
|
— |
|
|
19,607 |
|
Operating expenses |
|
33,584 |
|
|
167 |
|
|
33,751 |
|
Segment
contribution margin |
|
$ |
78,188 |
|
|
$ |
(167 |
) |
|
$ |
78,021 |
|
|
|
|
|
|
|
|
Total capital
spending |
|
$ |
16,082 |
|
|
$ |
(52 |
) |
|
$ |
16,030 |
|
|
|
Year Ended December 31, 2015 |
|
|
Wholesale Marketing &
Terminalling |
|
|
Delek Logistics Partners, LP |
|
Predecessor - Logistics Assets |
|
Year Ended December 31, 2015 |
Net Sales |
|
$ |
458,290 |
|
|
$ |
— |
|
|
$ |
458,290 |
|
Operating costs and
expenses: |
|
|
|
|
|
|
Cost of goods sold |
|
416,697 |
|
|
— |
|
|
416,697 |
|
Operating expenses |
|
11,172 |
|
|
— |
|
|
11,172 |
|
Segment contribution
margin |
|
$ |
30,421 |
|
|
$ |
— |
|
|
$ |
30,421 |
|
|
|
|
|
|
|
|
Total capital
spending |
|
$ |
6,397 |
|
|
$ |
— |
|
|
$ |
6,397 |
|
|
Delek Logistics Partners, LP |
Segment Data (Unaudited) |
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
Throughputs (average
bpd) |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
|
|
|
|
|
|
Pipelines and
Transportation Segment: |
|
|
|
|
|
|
|
|
Lion Pipeline
System: |
|
|
|
|
|
|
|
|
Crude pipelines
(non-gathered) |
|
58,353 |
|
|
54,342 |
|
|
56,555 |
|
|
54,960 |
|
Refined products
pipelines |
|
52,895 |
|
|
60,549 |
|
|
52,071 |
|
|
57,366 |
|
SALA Gathering
System |
|
16,518 |
|
|
19,741 |
|
|
17,756 |
|
|
20,673 |
|
East Texas Crude
Logistics System |
|
11,624 |
|
|
8,613 |
|
|
12,735 |
|
|
18,828 |
|
El Dorado Rail
Offloading Rack |
|
— |
|
|
— |
|
|
— |
|
|
981 |
|
|
|
|
|
|
|
|
|
|
Wholesale
Marketing and Terminalling Segment: |
|
|
|
|
|
|
|
|
East Texas - Tyler
Refinery sales volumes (average bpd) |
|
68,114 |
|
|
66,950 |
|
|
68,131 |
|
|
59,174 |
|
West Texas marketing
throughputs (average bpd) |
|
13,906 |
|
|
12,488 |
|
|
13,257 |
|
|
16,357 |
|
West Texas marketing
margin per barrel |
|
$ |
1.96 |
|
|
$ |
1.05 |
|
|
$ |
1.43 |
|
|
$ |
1.35 |
|
Terminalling
throughputs (average bpd) |
|
119,934 |
|
|
114,136 |
|
|
122,350 |
|
|
106,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Investor / Media Relations Contact:
Keith Johnson
Vice President of Investor Relations
615-435-1366
Delek US (NYSE:DK)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Delek US (NYSE:DK)
Historical Stock Chart
Von Apr 2023 bis Apr 2024