- Reported first quarter net income attributable to all
partners of $39.5 million
- EBITDA of $66.0 million
represented an increase of 12% y/y
- First quarter distributable cash flow coverage ratio of
1.21x and total leverage ratio of approximately 3.3x
- Declared first quarter distribution of $0.98 per limited partner unit; reflects 6.5%
increase y/y
- Planned acquisition of 3Bear builds size and scale, offers
geographic and product mix diversity and increases 3rd party
revenue
- Permian Gathering business witnessing strong producer
activity
- Delivered 37 consecutive quarters of distribution growth
with recent quarterly increase to $0.98/unit
- DKL volumes expected to benefit from a lack of major planned
turnaround activity in Delek US system in 2022
BRENTWOOD, Tenn., May 3, 2022
/PRNewswire/ -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek
Logistics") today announced its financial results for the first
quarter 2022. For the three months ended March 31, 2022, Delek Logistics reported net
income attributable to all partners of $39.5
million, or $0.91 per diluted
common limited partner unit. This compares to net income
attributable to all partners of $36.3
million, or $0.83 per diluted
common limited partner unit, in the first quarter 2021. Net cash
from operating activities was $47.9
million in the first quarter 2022 compared to $61.7 million in the first quarter 2021.
Distributable cash flow was $51.7
million in the first quarter 2022, compared to $52.5 million in the first quarter
2021.
For the first quarter 2022, earnings before interest, taxes,
depreciation and amortization ("EBITDA") was $66.0 million compared to $58.7 million in the first quarter
2021.
Uzi Yemin, Chairman, President
and Chief Executive Officer of Delek Logistics' general partner,
remarked: "Strong producer demand is prompting significant volume
growth in our Permian Gathering System and we expect momentum to
continue throughout the year. Complementing our existing gathering
business is the planned acquisition of 3Bear Delaware Holding – NM,
LLC. This transaction improves size and scale, increases third
party revenue, diversifies geographic footprint within the Permian
Basin, expands the product mix and is expected to be immediately
accretive to distributable cash flow ratios."
Mr. Yemin continued, "With ongoing consolidation in the MLP
space, DKL should screen more attractively to investors as a
larger, more diversified company with increasing third-party
revenue and a long track record of increasing shareholder returns.
The recent announcement to increase the quarterly distribution to
$0.98/unit marks the 37th consecutive
increase in the quarterly distribution. The outlook for the company
is bright with both organic and inorganic growth opportunities
underway and a lack of major turnaround activity planned at Delek
US in 2022, should translate into strong volumes throughout our
system this year."
Distribution and Liquidity
On April 25, 2022, Delek Logistics declared a quarterly
cash distribution of $0.98 per common
limited partner unit for the first quarter 2022, which equates to
$3.92 per common limited partner unit
on an annualized basis. This distribution will be paid on
May 12, 2022 to unitholders of record on May 5, 2022.
This represents a 0.5% increase from the fourth quarter 2021
distribution of $0.975 per common
limited partner unit, or $3.90 per
common limited partner unit on an annualized basis, and a 6.5%
increase over Delek Logistics' first quarter 2021 distribution of
$0.92 per common limited partner
unit, or $3.68 per common limited
partner unit annualized. For the first quarter 2022, the total cash
distribution declared to all partners was approximately
$42.6 million, resulting in a
distributable cash flow coverage ratio of 1.21x.
As of March 31, 2022, Delek
Logistics had total debt of approximately $905.5 million and cash of $2.7 million. Additional borrowing capacity,
subject to certain covenants, under the $850.0 million credit facility was $585.9 million. The total leverage ratio was well
within the requirements of the maximum allowable leverage ratio
under the credit facility.
Financial Results
Contribution margin in the first quarter 2022 was $62.3 million compared to $56.9 million in the first quarter 2021. Overall
performance benefited from an increase in utilization on assets
supporting the Big Spring Refinery and increased throughput on
joint venture pipelines.
Pipelines and Transportation Segment
Contribution margin in the first quarter 2022 was $43.2 million which is broadly in line compared
to $41.7 million in the first quarter
2021.
1 |
Wholesale Marketing and Terminalling Segment
During the first quarter 2022, contribution margin was
$19.0 million compared to
$15.2 million in the first quarter
2021. The increase was primarily driven by strong volumes at the
Big Spring marketing and terminalling facilities.
Investments in Pipeline Joint Ventures Segment
During the first quarter 2022, income from equity method
investments was $7.0 million compared
to $4.0 million in the first quarter
2021, primarily driven by increased volumes at both Caddo and
Red River.
First Quarter 2022 Results | Conference Call
Information
Delek Logistics will hold a conference call to discuss its first
quarter 2022 results on Tuesday, May 3,
2022 at 9:30 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.
Investors may also wish to listen to Delek US Holdings, Inc.'s
(NYSE: DK) ("Delek US") first quarter 2022 earnings conference call
on Tuesday, May 3, 2022 at
11:00 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; the impact of the COVID-19 outbreak on the demand for
crude oil, refined products and transportation and storage
services; 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; 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
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.
- EBITDA and distributable cash flow 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;
- 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.
2 |
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 the 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 flow from operating activities or any other measure of
financial performance or liquidity presented in accordance with
U.S. GAAP.
Non-GAAP measures 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. These
measures should not be considered substitutes for their most
directly comparable U.S. GAAP financial measures. 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,
thereby diminishing their utility. See the accompanying tables in
this earnings release for a reconciliation of these non-GAAP
measures to the most directly comparable GAAP measures.
3 |
|
Delek Logistics
Partners, LP
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
(In thousands,
except unit and per unit data)
|
|
|
March 31,
2022
|
|
December 31,
2021
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
2,726
|
|
$
4,292
|
|
Accounts receivable
|
|
20,350
|
|
15,384
|
|
Inventory
|
|
1,779
|
|
2,406
|
|
Other current assets
|
|
1,466
|
|
951
|
|
Total current assets
|
|
26,321
|
|
23,033
|
|
Property, plant and
equipment:
|
|
|
|
|
|
Property, plant and equipment
|
|
724,921
|
|
715,870
|
|
Less: accumulated depreciation
|
|
(276,587)
|
|
(266,482)
|
|
Property, plant and equipment,
net
|
|
448,334
|
|
449,388
|
|
Equity method
investments
|
|
249,893
|
|
250,030
|
|
Operating lease
right-of-use assets
|
|
19,135
|
|
20,933
|
|
Goodwill
|
|
12,203
|
|
12,203
|
|
Marketing contract
intangible, net
|
|
114,774
|
|
116,577
|
|
Rights-of-way
|
|
39,705
|
|
37,280
|
|
Other non-current
assets
|
|
24,901
|
|
25,627
|
|
Total assets
|
|
$
935,266
|
|
$
935,071
|
|
|
|
|
|
|
LIABILITIES AND
DEFICIT
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
12,627
|
|
$
8,160
|
|
Accounts payable to related parties
|
|
50,282
|
|
64,423
|
|
Interest payable
|
|
16,317
|
|
5,024
|
|
Excise and other taxes payable
|
|
4,023
|
|
5,280
|
|
Current portion of operating lease liabilities
|
|
6,688
|
|
6,811
|
|
Accrued expenses and other current liabilities
|
|
6,327
|
|
7,117
|
|
Total current
liabilities
|
|
96,264
|
|
96,815
|
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term debt
|
|
905,536
|
|
898,970
|
|
Asset retirement obligations
|
|
6,600
|
|
6,476
|
|
Operating lease liabilities, net of current
portion
|
|
12,401
|
|
14,071
|
|
Other non-current liabilities
|
|
20,987
|
|
22,731
|
|
Total non-current
liabilities
|
|
945,524
|
|
942,248
|
|
Total liabilities
|
|
1,041,788
|
|
1,039,063
|
|
Equity
(Deficit):
|
|
|
|
|
|
Common unitholders - public; 9,162,504 units issued and
outstanding at March 31, 2022 (8,774,053 at
December 31, 2021)
|
|
170,696
|
|
166,067
|
|
Common unitholders - Delek Holdings; 34,311,278 units issued
and outstanding at March 31, 2022
(34,696,800 at December 31, 2021)
|
|
(277,218)
|
|
(270,059)
|
|
Total deficit
|
|
(106,522)
|
|
(103,992)
|
|
Total liabilities and
deficit
|
|
$
935,266
|
|
$
935,071
|
4 |
|
Delek Logistics Partners, LP
|
|
Condensed Consolidated Statements of Income
(Unaudited)
|
|
(In thousands, except unit and per unit
data)
|
|
Three Months Ended March 31,
|
|
2022
|
|
2021
|
|
Net
revenues:
|
|
|
|
|
Affiliate
|
$
123,754
|
|
$
96,194
|
|
Third-party
|
82,827
|
|
56,719
|
|
Net revenues
|
206,581
|
|
152,913
|
|
Cost of
sales:
|
|
|
|
|
Cost of materials and other
|
126,194
|
|
81,171
|
|
Operating expenses (excluding depreciation and amortization
presented below)
|
17,543
|
|
14,250
|
|
Depreciation and amortization
|
9,861
|
|
10,247
|
|
Total cost of sales
|
153,598
|
|
105,668
|
|
Operating expenses related to wholesale business (excluding
depreciation and amortization presented below)
|
564
|
|
561
|
|
General and administrative expenses
|
5,095
|
|
4,105
|
|
Depreciation and amortization
|
474
|
|
492
|
|
Other operating expense (income), net
|
12
|
|
(83)
|
|
Total operating costs and
expenses
|
159,743
|
|
110,743
|
|
Operating income
|
46,838
|
|
42,170
|
|
Interest expense, net
|
14,250
|
|
9,737
|
|
Income from equity method investments
|
(7,026)
|
|
(4,049)
|
|
Other (income) expense, net
|
(1)
|
|
31
|
|
Total non-operating expenses,
net
|
7,223
|
|
5,719
|
|
Income before income
tax expense
|
39,615
|
|
36,451
|
|
Income tax
expense
|
101
|
|
184
|
|
Net income attributable
to partners
|
$
39,514
|
|
$
36,267
|
|
Comprehensive income
attributable to partners
|
$
39,514
|
|
$
36,267
|
|
|
|
|
|
Net income per limited partner
unit:
|
|
|
|
|
Common units -
basic
|
$
0.91
|
|
$
0.83
|
|
Common units -
diluted
|
$
0.91
|
|
$
0.83
|
|
|
|
|
|
Weighted average limited partner units
outstanding:
|
|
|
|
|
Common units -
basic
|
43,471,536
|
|
43,443,336
|
|
Common units -
diluted
|
43,481,572
|
|
43,449,059
|
|
|
|
|
|
Cash distribution per
limited partner unit
|
$
0.98
|
|
$
0.92
|
5 |
|
Delek Logistics Partners, LP
|
|
Condensed Consolidated Statements of Cash Flows
(Unaudited) (In thousands)
|
|
|
Three Months Ended March 31,
|
|
|
2022
|
|
2021
|
|
Cash flows from operating
activities
|
|
|
|
|
|
Net income
|
|
$
39,514
|
|
$
36,267
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
|
10,335
|
|
10,739
|
|
Non-cash lease
expense
|
|
1,798
|
|
2,018
|
|
Amortization of
customer contract intangible assets
|
|
1,803
|
|
1,803
|
|
Amortization of
deferred revenue
|
|
(444)
|
|
(538)
|
|
Amortization of
deferred financing costs and debt discount
|
|
847
|
|
625
|
|
Income from
equity method investments
|
|
(7,026)
|
|
(4,049)
|
|
Dividends from
equity method investments
|
|
6,613
|
|
3,730
|
|
Other non-cash
adjustments
|
|
492
|
|
274
|
|
Changes in
assets and liabilities:
|
|
|
|
|
|
Accounts receivable
|
|
(4,966)
|
|
3,354
|
|
Inventories and other current assets
|
|
112
|
|
1,020
|
|
Accounts payable and other current liabilities
|
|
14,157
|
|
(390)
|
|
Accounts receivable/payable to related parties
|
|
(14,141)
|
|
7,359
|
|
Non-current assets and liabilities, net
|
|
(1,174)
|
|
(480)
|
|
Changes in assets and
liabilities
|
|
(6,012)
|
|
10,863
|
|
Net cash provided by
operating activities
|
|
47,920
|
|
61,732
|
|
Cash flows from investing
activities
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(10,613)
|
|
(6,119)
|
|
Proceeds from sales of
property, plant and equipment
|
|
12
|
|
83
|
|
Purchases of intangible
assets
|
|
(2,425)
|
|
(474)
|
|
Distributions from
equity method investments
|
|
550
|
|
3,924
|
|
Equity method
investment contributions
|
|
—
|
|
(1,379)
|
|
Net cash used in
investing activities
|
|
(12,476)
|
|
(3,965)
|
|
Cash flows from financing
activities
|
|
|
|
|
|
Distributions to common
unitholders - public
|
|
(8,570)
|
|
(7,914)
|
|
Distributions to common
unitholders - Delek Holdings
|
|
(33,830)
|
|
(31,619)
|
|
Proceeds from revolving
credit facility
|
|
113,600
|
|
77,500
|
|
Payments on revolving
credit facility
|
|
(107,500)
|
|
(86,600)
|
|
Payments on finance
lease
|
|
(710)
|
|
—
|
|
Net cash used in
financing activities
|
|
(37,010)
|
|
(48,633)
|
|
Net (decrease) increase in cash and cash
equivalents
|
|
(1,566)
|
|
9,134
|
|
Cash and cash
equivalents at the beginning of the period
|
|
4,292
|
|
4,243
|
|
Cash and cash
equivalents at the end of the period
|
|
$
2,726
|
|
$
13,377
|
|
Supplemental disclosures of cash flow
information:
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
Interest
|
|
$
2,110
|
|
$
4,937
|
|
Non-cash investing activities:
|
|
|
|
|
|
Increase in accrued capital expenditures in accounts
payable/receivable related parties
|
|
$
—
|
|
$
3,119
|
|
Decrease in accrued capital expenditures and other
|
|
$
(1,527)
|
|
$
(1,439)
|
|
Non-cash financing activities:
|
|
|
|
|
|
Non-cash lease liability arising from obtaining right of use
assets during the period
|
|
$
—
|
|
$
2,623
|
6 |
|
Delek Logistics Partners, LP
|
|
Reconciliation of Amounts Reported Under U.S.
GAAP
|
|
(In thousands)
|
|
Three Months Ended March 31,
|
|
2022
|
|
2021
|
|
Reconciliation of Net Income to
EBITDA:
|
|
|
|
|
Net income
|
$
39,514
|
|
$
36,267
|
|
Add:
|
|
|
|
|
Income tax expense
|
101
|
|
184
|
|
Depreciation and amortization
|
10,335
|
|
10,739
|
|
Amortization of customer contract intangible
assets
|
1,803
|
|
1,803
|
|
Interest expense, net
|
14,250
|
|
9,737
|
|
EBITDA
|
$
66,003
|
|
$
58,730
|
|
|
|
|
|
Reconciliation of net cash from operating activities
to distributable cash flow:
|
|
|
|
|
Net cash provided by
operating activities
|
$
47,920
|
|
$
61,732
|
|
Changes in assets and liabilities
|
6,012
|
|
(10,863)
|
|
Non-cash lease expense
|
(1,798)
|
|
(2,018)
|
|
Distributions from equity method investments in investing
activities
|
550
|
|
3,924
|
|
Maintenance and regulatory capital expenditures
|
(807)
|
|
(515)
|
|
(Refund to) reimbursement from Delek Holdings for capital
expenditures
|
(15)
|
|
359
|
|
Accretion of asset retirement obligations
|
(124)
|
|
(115)
|
|
Deferred income taxes
|
—
|
|
(65)
|
|
Other operating (expense) income, net
|
(12)
|
|
83
|
|
Distributable Cash Flow
|
$
51,726
|
|
$
52,522
|
|
Delek Logistics Partners, LP
|
|
Distributable Coverage Ratio
Calculation
|
|
(In thousands)
|
|
Three Months Ended March 31,
|
|
Distributions to
partners of Delek Logistics, LP
|
2022
|
|
2021
|
|
Total distributions to
be paid
|
$
42,604
|
|
$
39,968
|
|
|
|
|
|
Distributable cash
flow
|
$
51,726
|
|
$
52,522
|
|
Distributable cash flow
coverage ratio (1)
|
1.21x
|
|
1.31x
|
|
|
|
(1)
|
Distributable cash flow
coverage ratio is calculated by dividing distributable cash flow by
distributions to be paid in each respective period.
|
7 |
|
Delek Logistics Partners, LP
|
|
Segment Data (unaudited)
|
|
(In thousands)
|
|
Three Months Ended March 31,
|
|
2022
|
|
2021
|
|
Pipelines and
Transportation
|
|
|
|
|
Net
revenues:
|
|
|
|
|
Affiliate
|
$
71,023
|
|
$
63,048
|
|
Third party
|
4,782
|
|
1,927
|
|
Total pipelines and transportation
|
75,805
|
|
64,975
|
|
Cost of sales:
|
|
|
|
|
Cost of materials and
other
|
19,602
|
|
13,079
|
|
Operating expenses (excluding
depreciation and amortization)
|
12,958
|
|
10,172
|
|
Segment contribution margin
|
$
43,245
|
|
$
41,724
|
|
Capital spending
(1)
|
$
8,149
|
|
$
5,845
|
|
|
|
|
|
Wholesale Marketing and
Terminalling
|
|
|
|
|
Net
revenues:
|
|
|
|
|
Affiliates (2)
|
$
52,731
|
|
$
33,146
|
|
Third party
|
78,045
|
|
54,792
|
|
Total wholesale marketing and terminalling
|
130,776
|
|
87,938
|
|
Cost of sales:
|
|
|
|
|
Cost of materials and
other
|
106,592
|
|
68,092
|
|
Operating expenses (excluding
depreciation and amortization)
|
5,149
|
|
4,639
|
|
Segment contribution margin
|
$
19,035
|
|
$
15,207
|
|
Capital spending
(1)
|
$
937
|
|
$
1,954
|
|
|
|
|
|
Investments in Pipeline Joint
Ventures
|
|
|
|
|
Income from equity method
investments
|
$
(7,026)
|
|
$
(4,049)
|
|
Equity method investments
contributions
|
$
—
|
|
$
(1,379)
|
|
|
|
|
|
Consolidated
|
|
|
|
|
Net
revenues:
|
|
|
|
|
Affiliates
|
$
123,754
|
|
$
96,194
|
|
Third party
|
82,827
|
|
56,719
|
|
Total consolidated
|
206,581
|
|
152,913
|
|
Cost of sales:
|
|
|
|
|
Cost of materials and other
|
126,194
|
|
81,171
|
|
Operating expenses (excluding depreciation and amortization
presented below)
|
18,107
|
|
14,811
|
|
Contribution margin
|
62,280
|
|
56,931
|
|
General and administrative expenses
|
5,095
|
|
4,105
|
|
Depreciation and amortization
|
10,335
|
|
10,739
|
|
Other operating expense (income), net
|
12
|
|
(83)
|
|
Operating income
|
46,838
|
|
42,170
|
|
Interest expense,
net
|
14,250
|
|
9,737
|
|
Income from equity
method investments
|
(7,026)
|
|
(4,049)
|
|
Other (income) expense,
net
|
(1)
|
|
31
|
|
Total non-operating expenses,
net
|
7,223
|
|
5,719
|
|
Income before income
tax expense
|
39,615
|
|
36,451
|
|
Income tax
expense
|
101
|
|
184
|
|
Net income attributable
to partners
|
$
39,514
|
|
$
36,267
|
|
Capital spending
(1)
|
$
9,086
|
|
$
7,799
|
|
|
|
(1)
|
There were no capital
contributions to equity method investments for the three months
ended March 31, 2022. Capital spending for the three months ended
March 31, 2021 excludes contributions to equity method investments
in the amount of $1.4 million.
|
|
(2)
|
Affiliate revenue for
the wholesale marketing and terminalling segment is presented net
of amortization expense pertaining to the Marketing Contract
Intangible Acquisition.
|
8 |
|
Delek Logistics Partners, LP
|
|
Segment Capital Spending
(1)
|
|
(In thousands)
|
|
Three Months Ended March 31,
|
|
Pipelines and Transportation
|
2022
|
|
2021
|
|
Maintenance capital
spending
|
$
1,280
|
|
$
477
|
|
Discretionary capital
spending
|
6,869
|
|
5,368
|
|
Segment capital
spending
|
8,149
|
|
5,845
|
|
Wholesale Marketing and
Terminalling
|
|
|
|
|
Maintenance capital
spending
|
792
|
|
39
|
|
Discretionary capital
spending
|
145
|
|
1,915
|
|
Segment capital
spending
|
937
|
|
1,954
|
|
Consolidated
|
|
|
|
|
Maintenance capital
spending
|
2,072
|
|
516
|
|
Discretionary capital
spending
|
7,014
|
|
7,283
|
|
Total capital
spending
|
$
9,086
|
|
$
7,799
|
|
|
|
(1)
|
Capital spending
excludes the capital contributions to our equity method
investments. There were no equity method investments capital
contributions for the three months ended March 31, 2022. The equity
method investments capital contributions were $1.4 million for the
three months ended March 31, 2021.
|
|
Delek Logistics Partners, LP
|
|
|
|
|
Segment Data (Unaudited)
|
|
|
|
|
Three Months Ended March 31,
|
|
2022
|
|
2021
|
|
Pipelines and Transportation
Segment:
|
|
|
|
|
Throughputs (average bpd)
|
|
|
|
|
El Dorado
Assets:
|
|
|
|
|
Crude pipelines (non-gathered)
|
72,872
|
|
44,118
|
|
Refined products pipelines to Enterprise Systems
|
59,522
|
|
26,349
|
|
El Dorado Gathering
System
|
16,156
|
|
11,880
|
|
East Texas Crude
Logistics System
|
16,056
|
|
26,075
|
|
Permian Gathering
System (1)
|
100,325
|
|
73,724
|
|
Plains Connection
System
|
162,007
|
|
108,361
|
|
Trucking
Assets
|
9,306
|
|
10,187
|
|
|
|
|
|
Wholesale Marketing and Terminalling
Segment:
|
|
|
|
|
East Texas - Tyler
Refinery sales volumes (average bpd) (2)
|
70,578
|
|
71,963
|
|
Big Spring marketing
throughputs (average bpd)
|
75,549
|
|
72,927
|
|
West Texas marketing
throughputs (average bpd)
|
9,913
|
|
10,138
|
|
West Texas gross margin
per barrel
|
$
3.04
|
|
$
3.42
|
|
Terminalling
throughputs (average bpd) (3)
|
137,622
|
|
144,539
|
|
|
|
(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.
|
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).
9 |
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SOURCE Delek Logistics