BRENTWOOD, Tenn., April 25,
2022 /PRNewswire/ -- Delek Logistics Partners, LP
(NYSE: DKL) ("Delek Logistics") today declared its quarterly cash
distribution for the first quarter 2022 of $0.98 per common limited partner unit, or
$3.92 per common limited partner unit
on an annualized basis. This distribution represents a 0.5 percent
increase from the distribution for the fourth quarter 2021 of
$0.975 per common limited partner
unit ($3.90 per common limited
partner unit annualized) and a 6.5 percent increase over Delek
Logistics' distribution for the first quarter 2021 of $0.92 per common limited partner unit
($3.68 per common limited partner
unit annualized). The first quarter 2022 cash distribution is
payable on May 12, 2022 to unitholders of record on
May 5, 2022.
"This distribution marks 37
consecutive quarters of increasing the quarterly payout to our
shareholders since the fourth quarter 2012. We see strong momentum
for our company this year with elevated commodity prices prompting
increased industry activity. This is most evident in our Permian
Gathering System where producer demand is driving increased
production volumes and creating growth opportunities. The lack of
major planned turnaround activity for Delek US in 2022 bodes well
for the DKL volumetric outlook. Finally, the recently announced
planned acquisition of 3Bear Delaware Holding – NM, LLC, should
provide DKL with more size and scale, better diversification both
geographically within the Permian Basin and from a product mix
standpoint. The transaction is expected to be immediately accretive
to our distributable cash flow ratios," said Uzi Yemin, Chairman, President and Chief
Executive Officer of Delek Logistics.
About Delek Logistics Partners,
LP
Delek Logistics Partners, LP, headquartered in Brentwood, Tennessee, was formed by Delek US
Holdings, Inc. (NYSE: DK) ("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 regarding Delek Logistics' future
distributions, including the amounts and timing thereof,
utilization rates and other 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," within the meaning of
federal securities laws. Investors are cautioned that the following
important factors, among others, may affect these forward-looking
statements: the fact that a substantial majority of Delek
Logistics' contribution margin is derived from Delek US, thereby
subjecting it to Delek US' business risks; risks and uncertainties
related to the effects of the COVID-19 pandemic; risks and costs
relating to the maintenance 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 business of Delek Logistics,
including margins generated by its wholesale fuel business; 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 are based on information available at
the time and/or management's good faith belief with respect to
future events, and are subject to risks and uncertainties that
could cause actual results to differ materially from those
expressed in the statements. There can be no assurance that actual
results will not differ from those expected by management or
described in forward-looking statements. 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.
Tax Considerations
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b)(4) and (d). Please note that 100
percent of Delek Logistics Partners, LP's distributions to foreign
investors are attributable to income that is effectively connected
with a United States trade or
business. Accordingly, all of Delek Logistics Partners, LP's
distributions to foreign investors are subject to federal income
tax withholding at the highest applicable effective tax rate for
individuals or corporations, as applicable. Nominees, and not Delek
Logistics Partners, LP, are treated as the withholding agents
responsible for withholding on the distributions received by them
on behalf of foreign investors.
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 Twitter
account (@DelekLogistics).
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SOURCE Delek Logistics