- Reported second quarter net income attributable to all
partners of $32.2 million
- EBITDA of $64.5 million
including approximately $6.2 million
of adverse acquisition related expenses
- Delivered 38 consecutive quarters of distribution growth
with recent increase to $0.985/unit;
reflects 4.8% increase y/y
- Closed 3 Bear acquisition on June 1,
2022; expands third party revenue, product mix and geography
in Permian
- Delek Permian Gathering volumes expected to approximately
double by end of 3Q22 from 4Q21 levels
BRENTWOOD, Tenn., Aug. 4, 2022
/PRNewswire/ -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek
Logistics") today announced its financial results for the second
quarter 2022. For the three months ended June 30, 2022, Delek Logistics reported net
income attributable to all partners of $32.2
million, or $0.74 per diluted
common limited partner unit. This compares to net income
attributable to all partners of $43.2
million, or $1.00 per diluted
common limited partner unit, in the second quarter 2021. Net cash
from operating activities was $85.1
million in the second quarter 2022 compared to $85.8 million in the second quarter 2021.
Distributable cash flow, as adjusted(1) was $55.6 million in the second quarter 2022,
compared to $53.8 million in the
second quarter 2021.
For the second quarter 2022, earnings before interest, taxes,
depreciation and amortization ("EBITDA") was $64.5 million (including $6.2 million of adverse closing costs associated
with 3 Bear Delaware - NM, LLC) compared to $66.8 million in the second quarter
2021.
Avigal Soreq, President of Delek Logistics' general partner,
stated, "We are excited to welcome the 3 Bear team to Delek
Logistics. This is a transformational acquisition as it increases
our third party revenue, expands our product mix to include natural
gas and water and diversifies our geographic footprint into the
Delaware portion of the Permian
basin. Between our legacy Midland assets and newly acquired
Delaware assets, we are
concentrated in one of the most prolific basins in the world.
Returning cash to unitholders has been a longstanding priority of
the partnership and I'm proud to continue that tradition with the
38th consecutive increase in the quarterly distribution of
$0.985 per unit."
Uzi Yemin, Executive Chairman of
Delek Logistics, remarked, "DKL has enjoyed significant growth
since becoming a public company providing stable EBITDA throughout
various business cycles and delivering consistent quarterly
distribution increases over time. The partnership is well
positioned for the future and the recent 3 Bear acquisition
progressively shifts DKL toward more of a stand-alone entity."
Distribution and Liquidity
On July 25, 2022, Delek Logistics declared a quarterly cash
distribution of $0.985 per common
limited partner unit for the second quarter 2022, which equates to
$3.940 per common limited partner
unit on an annualized basis. This distribution will be paid on
August 11, 2022 to unitholders of record on August 4,
2022. This represents a 0.5% increase from the first quarter 2022
distribution of $0.980 per common
limited partner unit, or $3.920 per
common limited partner unit on an annualized basis, and a 4.8%
increase over Delek Logistics' second quarter 2021 distribution of
$0.940 per common limited partner
unit, or $3.760 per common limited
partner unit annualized. For the second quarter 2022, the total
cash distribution declared to all partners was approximately
$42.8 million, resulting in a
distributable cash flow coverage ratio, as adjusted(1)
of 1.30x.
As of June 30, 2022, Delek
Logistics had total debt of approximately $1,522.2 million and cash of $13.8 million. Additional borrowing capacity,
subject to certain covenants, under the $1.0
billion credit facility was $119.1
million. The total leverage ratio as of June 30, 2022 of approximately 4.7x was well
within the requirements of the maximum allowable leverage ratio
under the credit facility.
Consolidated Operating Results
Contribution margin in the second quarter 2022 increased to
$69.4 million compared to
$64.2 million in the second quarter
2021 primarily as a result of an increase in refinery utilization
rates at Delek US and incremental contribution margin attributable
to the acquisition of 3 Bear Delaware - NM, LLC (the "3 Bear
Acquisition") that closed on June 1,
2022 (the "Acquisition Date"). Second quarter 2022 EBITDA of
$64.5 million benefited from the
increased contribution margin as well as continued strong
throughput on joint venture pipelines, offset by $6.2 million of transaction costs associated with
the 3 Bear Acquisition, as compared to EBITDA of $66.8 million in the second quarter 2021.
Net income attributable to all partners for the second quarter 2022
of $43.2 million reflected a decrease
of $11.1 million compared to the
second quarter 2021, which is primarily comprised of the
$5.2 million increase in contribution
margin, offset by increases in interest costs, amortization and
depreciation, and transaction costs related to the 3 Bear
Acquisition totaling $14.3
million.
(1)
|
Represents
distributable cash flows adjusted to exclude transaction costs
associated with the 3 Bear Acquisition. See further discussion of
this measure in the discussion of Non-GAAP Disclosures.
|
1 |
Pipelines and Transportation Segment
Contribution margin in the second quarter 2022 was $48.4 million compared to $45.2 million in the second quarter 2021. The
increase was primarily driven from strong refinery utilization
rates at Delek US.
Wholesale Marketing and Terminalling Segment
During the second quarter 2022, contribution margin was
$16.3 million compared to
$19.0 million in the second quarter
2021. The decrease was primarily driven be lower margins in the
West Texas wholesale business and
lower contribution from Tyler assets compared to the second quarter
2021.
3 Bear Operations Segment
Our second quarter 2022 results were favorably impacted by the
incremental contribution margin for the one month from the
Acquisition Date through June 30,
2022. Contribution margin in the 3 Bear Operations Segment
is largely driven by production volumes and gathering activities
during the month, which are a function of both producer activities
as well as our capacity, subject to the dedicated acreage
agreements and the portions of acreage which have been developed,
the extent to which connection points and interconnects have been
brought on-line, and the extent to which maintenance or other
planned or unplanned operational disruptions may occur.
Investments in Pipeline Joint Ventures Segment
During the second quarter 2022, income from equity method
investments was $7.1 million compared
to $6.6 million in the second quarter
2021, primarily driven by increased volumes at both Caddo and
Red River joint ventures.
Second Quarter 2022 Results | Conference Call
Information
Delek Logistics will hold a conference call to discuss its
second quarter 2022 results on Thursday,
August 4, 2022 at 9:00 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. 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") second quarter 2022 earnings conference
call on Thursday, August 4, 2022 at
10:00 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; risks and uncertainties related to the integration of the
3 Bear business following the recent acquisition; risks and
uncertainties related to the Covid-19 pandemic; 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; projected benefits of the 3 Bear
acquisition; 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.
2 |
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.
- Distributable cash flow, as adjusted for transaction costs, or
Distributable cash flow, as adjusted(FN)) -
distributable cash flow adjusted to exclude significant,
infrequently occurring transaction costs.
Our EBITDA and distributable cash flow measures 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 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 EBITDA and distributable
cash flow measures provide information useful to investors in
assessing our financial condition and results of operations and
assists in evaluating our ongoing operating performance for current
and comparative periods. EBITDA and distributable cash flow
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
U.S. GAAP. EBITDA and distributable cash flow 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 our industry, our definitions of EBITDA and
distributable cash flow may not be comparable to similarly titled
measures of other partnerships, thereby diminishing their
utility. 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, please refer
to "Results of Operations" below. 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)
|
|
June 30, 2022
|
|
December 31, 2021
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
13,810
|
|
$
4,292
|
Accounts
receivable
|
43,943
|
|
15,384
|
Inventory
|
3,654
|
|
2,406
|
Other current
assets
|
2,257
|
|
951
|
Total current
assets
|
63,664
|
|
23,033
|
Property, plant and
equipment:
|
|
|
|
Property, plant and
equipment
|
1,141,822
|
|
715,870
|
Less: accumulated
depreciation
|
(287,983)
|
|
(266,482)
|
Property, plant and
equipment, net
|
853,839
|
|
449,388
|
Equity method
investments
|
248,675
|
|
250,030
|
Operating lease
right-of-use assets
|
25,309
|
|
20,933
|
Goodwill
|
22,818
|
|
12,203
|
Marketing contract
intangible, net
|
112,971
|
|
116,577
|
Customer relationship
intangible, net
|
208,492
|
|
—
|
Rights-of-way
|
54,717
|
|
37,280
|
Other non-current
assets
|
18,810
|
|
25,627
|
Total
assets
|
$
1,609,295
|
|
$
935,071
|
|
|
|
|
LIABILITIES AND DEFICIT
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
44,398
|
|
$
8,160
|
Accounts payable to
related parties
|
91,491
|
|
64,423
|
Interest
payable
|
6,035
|
|
5,024
|
Excise and other taxes
payable
|
6,817
|
|
5,280
|
Current portion of
operating lease liabilities
|
7,672
|
|
6,811
|
Accrued expenses and
other current liabilities
|
6,573
|
|
7,117
|
Total current
liabilities
|
162,986
|
|
96,815
|
Non-current
liabilities:
|
|
|
|
Long-term
debt
|
1,522,183
|
|
898,970
|
Asset retirement
obligations
|
8,999
|
|
6,476
|
Operating lease
liabilities, net of current portion
|
12,783
|
|
14,071
|
Other non-current
liabilities
|
18,803
|
|
22,731
|
Total non-current
liabilities
|
1,562,768
|
|
942,248
|
Total
liabilities
|
1,725,754
|
|
1,039,063
|
Equity
(Deficit):
|
|
|
|
Common unitholders -
public; 9,173,369 units issued and outstanding at June 30, 2022
(8,774,053 at December 31, 2021)
|
168,611
|
|
166,067
|
Common unitholders -
Delek Holdings; 34,311,278 units issued and outstanding at June 30,
2022 (34,696,800 at December 31, 2021)
|
(285,070)
|
|
(270,059)
|
Total
deficit
|
(116,459)
|
|
(103,992)
|
Total liabilities and
deficit
|
$
1,609,295
|
|
$
935,071
|
4 |
Delek Logistics Partners, LP
|
Condensed Consolidated Statements of Income
(Unaudited)
|
(In thousands, except unit and per unit
data)
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliate
|
$
124,366
|
|
$
88,722
|
|
$
248,120
|
|
$
184,916
|
Third-party
|
142,384
|
|
79,756
|
|
225,211
|
|
136,475
|
Net revenues
|
266,750
|
|
168,478
|
|
473,331
|
|
321,391
|
Cost of
sales:
|
|
|
|
|
|
|
|
Cost of materials and
other
|
176,360
|
|
88,695
|
|
302,554
|
|
169,866
|
Operating expenses
(excluding depreciation and amortization presented
below)
|
20,284
|
|
14,963
|
|
37,827
|
|
29,213
|
Depreciation and
amortization
|
12,948
|
|
9,480
|
|
22,809
|
|
19,727
|
Total cost of
sales
|
209,592
|
|
113,138
|
|
363,190
|
|
218,806
|
Operating expenses
related to wholesale business (excluding depreciation and
amortization presented below)
|
705
|
|
605
|
|
1,269
|
|
1,166
|
General and
administrative expenses
|
13,773
|
|
5,990
|
|
18,868
|
|
10,095
|
Depreciation and
amortization
|
474
|
|
487
|
|
948
|
|
979
|
Other operating
expense (income), net
|
—
|
|
(136)
|
|
12
|
|
(219)
|
Total operating costs
and expenses
|
224,544
|
|
120,084
|
|
384,287
|
|
230,827
|
Operating
income
|
42,206
|
|
48,394
|
|
89,044
|
|
90,564
|
Interest expense,
net
|
16,812
|
|
11,658
|
|
31,062
|
|
21,395
|
Income from equity
method investments
|
(7,073)
|
|
(6,642)
|
|
(14,099)
|
|
(10,691)
|
Other income,
net
|
(2)
|
|
(34)
|
|
(3)
|
|
(3)
|
Total non-operating
expenses, net
|
9,737
|
|
4,982
|
|
16,960
|
|
10,701
|
Income before income
tax expense
|
32,469
|
|
43,412
|
|
72,084
|
|
79,863
|
Income tax
expense
|
305
|
|
166
|
|
406
|
|
350
|
Net income attributable
to partners
|
$
32,164
|
|
$
43,246
|
|
$
71,678
|
|
$
79,513
|
Comprehensive income
attributable to partners
|
$
32,164
|
|
$
43,246
|
|
$
71,678
|
|
$
79,513
|
|
|
|
|
|
|
|
|
Net income per limited partner
unit:
|
|
|
|
|
|
|
|
Basic
|
$
0.74
|
|
$
1.00
|
|
$
1.65
|
|
$
1.83
|
Diluted
|
$
0.74
|
|
$
1.00
|
|
$
1.65
|
|
$
1.83
|
Weighted average limited partner units
outstanding:
|
|
|
|
|
|
|
|
Basic
|
43,475,931
|
|
43,445,222
|
|
43,473,746
|
|
43,444,284
|
Diluted
|
43,502,983
|
|
43,460,366
|
|
43,491,796
|
|
43,453,806
|
Cash distribution per
common limited partner unit
|
$
0.985
|
|
$
0.940
|
|
$
1.965
|
|
$
1.860
|
Delek Logistics Partners, LP
|
Condensed Consolidated Statements of Cash Flows
(Unaudited) (In thousands)
|
|
Six Months Ended June 30,
|
|
|
2022
|
|
2021
|
Cash flows from operating
activities
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
133,057
|
|
$
147,524
|
Cash flows from investing
activities
|
|
|
|
|
Net cash used in
investing activities
|
|
(659,327)
|
|
(5,211)
|
Cash flows from financing
activities
|
|
|
|
|
Net cash provided by
(used) in financing activities
|
|
535,788
|
|
(144,383)
|
Net increase (decrease) in cash and cash
equivalents
|
|
9,518
|
|
(2,070)
|
Cash and cash
equivalents at the beginning of the period
|
|
4,292
|
|
4,243
|
Cash and cash
equivalents at the end of the period
|
|
$
13,810
|
|
$
2,173
|
5 |
Delek Logistics Partners, LP
|
Reconciliation of Amounts Reported Under U.S.
GAAP
|
(In thousands)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Reconciliation of Net Income to
EBITDA:
|
|
|
|
|
|
|
|
Net income
|
$
32,164
|
|
$
43,246
|
|
$
71,678
|
|
$
79,513
|
Add:
|
|
|
|
|
|
|
|
Income tax
expense
|
305
|
|
166
|
|
406
|
|
350
|
Depreciation and
amortization
|
13,422
|
|
9,967
|
|
23,757
|
|
20,706
|
Amortization of
marketing contract intangible asset
|
1,803
|
|
1,803
|
|
3,606
|
|
3,606
|
Interest expense,
net
|
16,812
|
|
11,658
|
|
31,062
|
|
21,395
|
EBITDA
|
$
64,506
|
|
$
66,840
|
|
$
130,509
|
|
$
125,570
|
|
|
|
|
|
|
|
|
Reconciliation of net cash from operating activities
to distributable cash flow:
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
85,137
|
|
$
85,792
|
|
$
133,057
|
|
$
147,524
|
Changes in assets and
liabilities
|
(26,920)
|
|
(29,842)
|
|
(20,908)
|
|
(40,705)
|
Non-cash lease
expense
|
(9,686)
|
|
(2,489)
|
|
(11,484)
|
|
(4,507)
|
Distributions from
equity method investments in investing activities
|
1,187
|
|
1,476
|
|
1,737
|
|
5,400
|
Maintenance and
regulatory capital expenditures not distributable
|
(233)
|
|
(1,133)
|
|
(1,040)
|
|
(2,862)
|
Reimbursement from
(refund to) Delek Holdings for capital
expenditures
|
1
|
|
4
|
|
(14)
|
|
1,577
|
Accretion of asset
retirement obligations
|
(123)
|
|
(115)
|
|
(247)
|
|
(230)
|
Deferred income
taxes
|
—
|
|
—
|
|
—
|
|
(65)
|
Gain (loss) on sale of
assets
|
—
|
|
136
|
|
(12)
|
|
219
|
Distributable Cash Flow
|
$
49,363
|
|
$
53,829
|
|
$
101,089
|
|
$
106,351
|
Transaction
costs
|
6,199
|
|
—
|
|
6,393
|
|
|
Distributable Cash Flow, as adjusted
(1)
|
$
55,562
|
|
$
53,829
|
|
$
107,482
|
|
$
106,351
|
|
|
(1)
|
Distributable cash flow
adjusted to exclude transaction costs associated with the 3 Bear
Acquisition.
|
Delek Logistics Partners, LP
|
Distributable Coverage Ratio
Calculation
|
(In thousands)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
Distributions to
partners of Delek Logistics, LP
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Total distributions to
be paid
|
$
42,832
|
|
$
40,846
|
|
$
85,436
|
|
$
80,814
|
|
|
|
|
|
|
|
|
Distributable cash
flow
|
$
49,363
|
|
$
53,829
|
|
$
101,089
|
|
$
106,351
|
Distributable cash flow
coverage ratio (1)
|
1.15x
|
|
1.32x
|
|
1.18x
|
|
1.32x
|
Distributable cash
flow, as adjusted (2)
|
55,562
|
|
53,829
|
|
107,482
|
|
106,351
|
Distributable cash flow
coverage ratio, as adjusted (3)
|
1.30x
|
|
1.32x
|
|
1.26x
|
|
1.32x
|
|
|
(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
adjusted to exclude transaction costs associated with the 3 Bear
Acquisition.
|
(3)
|
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.
|
6 |
Delek Logistics Partners, LP
|
Segment Data (unaudited)
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
(In thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Pipelines and Transportation
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliate
|
$
75,294
|
|
$
65,664
|
|
$
146,316
|
|
$
128,712
|
Third party
|
5,312
|
|
4,771
|
|
10,095
|
|
6,698
|
Total pipelines and
transportation
|
80,606
|
|
70,435
|
|
156,411
|
|
135,410
|
Cost of materials and
other
|
18,666
|
|
14,346
|
|
38,268
|
|
27,425
|
Operating expenses
(excluding depreciation and amortization)
|
13,539
|
|
10,858
|
|
26,497
|
|
21,030
|
Segment contribution
margin
|
$
48,401
|
|
$
45,231
|
|
$
91,646
|
|
$
86,955
|
Capital
spending
|
$
21,493
|
|
$
1,531
|
|
$
29,642
|
|
$
7,376
|
Wholesale Marketing and
Terminalling
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliates (1)
|
$
46,110
|
|
$
23,058
|
|
$
98,842
|
|
$
56,204
|
Third party
|
119,430
|
|
74,985
|
|
197,474
|
|
129,777
|
Total wholesale
marketing and terminalling
|
165,540
|
|
98,043
|
|
296,316
|
|
185,981
|
Cost of materials and
other
|
143,920
|
|
74,349
|
|
250,512
|
|
142,441
|
Operating expenses
(excluding depreciation and amortization)
|
5,296
|
|
4,710
|
|
10,445
|
|
9,349
|
Segment contribution
margin
|
$
16,324
|
|
$
18,984
|
|
$
35,359
|
|
$
34,191
|
Capital
spending
|
$
122
|
|
$
1,060
|
|
$
1,059
|
|
$
3,014
|
3 Bear Operations
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliate
|
$
2,962
|
|
$
—
|
|
$
2,962
|
|
$
—
|
Third party
|
$
17,642
|
|
$
—
|
|
$
17,642
|
|
$
—
|
Total 3 Bear
|
20,604
|
|
—
|
|
20,604
|
|
—
|
Cost of materials and
other
|
13,774
|
|
—
|
|
13,774
|
|
—
|
Operating expenses
(excluding depreciation and amortization)
|
2,154
|
|
—
|
|
2,154
|
|
—
|
Segment contribution
margin
|
$
4,676
|
|
$
—
|
|
$
4,676
|
|
$
—
|
Capital
spending
|
$
5,111
|
|
$
—
|
|
$
5,111
|
|
$
—
|
Investments in Pipeline Joint
Ventures
|
|
|
|
|
|
|
|
Income from equity
method investments
|
$
7,073
|
|
$
6,642
|
|
$
14,099
|
|
$
10,691
|
Equity method
investments contributions
|
$
—
|
|
$
(14)
|
|
$
—
|
|
$
(1,393)
|
Consolidated
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliates
|
$
124,366
|
|
$
88,722
|
|
$
248,120
|
|
$
184,916
|
Third party
|
142,384
|
|
79,756
|
|
225,211
|
|
136,475
|
Total
consolidated
|
266,750
|
|
168,478
|
|
473,331
|
|
321,391
|
Cost of materials and
other
|
176,360
|
|
88,695
|
|
302,554
|
|
169,866
|
Operating expenses
(excluding depreciation and amortization presented
below)
|
20,989
|
|
15,568
|
|
39,096
|
|
30,379
|
Contribution
margin
|
69,401
|
|
64,215
|
|
131,681
|
|
121,146
|
General and
administrative expenses
|
13,773
|
|
5,990
|
|
18,868
|
|
10,095
|
Depreciation and
amortization
|
13,422
|
|
9,967
|
|
23,757
|
|
20,706
|
Other operating
expense (income), net
|
—
|
|
(136)
|
|
12
|
|
(219)
|
Operating
income
|
42,206
|
|
48,394
|
|
89,044
|
|
90,564
|
Capital
spending
|
$
26,726
|
|
$
2,591
|
|
$
35,812
|
|
$
10,390
|
|
|
(1)
|
Affiliate revenue for
the wholesale marketing and terminalling segment is presented net
of amortization expense pertaining to the Marketing Contract
Intangible Acquisition.
|
7 |
Delek Logistics Partners, LP
|
Segment Capital Spending
(1)
|
(In thousands)
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
Pipelines and Transportation
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Maintenance capital
spending
|
$
316
|
|
$
449
|
|
$
1,596
|
|
$
926
|
Discretionary capital
spending
|
21,177
|
|
1,082
|
|
28,046
|
|
6,450
|
Segment capital
spending
|
$
21,493
|
|
$
1,531
|
|
29,642
|
|
7,376
|
Wholesale Marketing and
Terminalling
|
|
|
|
|
|
|
|
Maintenance capital
spending
|
$
117
|
|
$
681
|
|
909
|
|
720
|
Discretionary capital
spending
|
5
|
|
379
|
|
150
|
|
2,294
|
Segment capital
spending
|
$
122
|
|
$
1,060
|
|
1,059
|
|
3,014
|
3 Bear Operations
|
|
|
|
|
|
|
|
Maintenance capital
spending
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
Discretionary capital
spending
|
5,111
|
|
—
|
|
5,111
|
|
—
|
Segment capital
spending
|
$
5,111
|
|
$
—
|
|
$
5,111
|
|
$
—
|
Consolidated
|
|
|
|
|
|
|
|
Maintenance capital
spending
|
$
433
|
|
$
1,130
|
|
$
2,505
|
|
$
1,646
|
Discretionary capital
spending
|
26,293
|
|
1,461
|
|
33,307
|
|
8,744
|
Total capital
spending
|
$
26,726
|
|
$
2,591
|
|
$
35,812
|
|
$
10,390
|
|
|
(1)
|
There were no capital
contributions to equity method investments for the six months ended
June 30, 2022.
|
Delek Logistics Partners, LP
|
|
|
|
|
Segment Data (Unaudited)
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Pipelines and Transportation
Segment:
|
|
|
|
|
|
|
|
Throughputs (average bpd)
|
|
|
|
|
|
|
|
El Dorado
Assets:
|
|
|
|
|
|
|
|
Crude pipelines (non-gathered)
|
84,699
|
|
53,316
|
|
78,818
|
|
48,743
|
Refined products pipelines to Enterprise Systems
|
64,821
|
|
39,193
|
|
62,186
|
|
32,806
|
El Dorado Gathering
System
|
17,961
|
|
17,430
|
|
17,064
|
|
14,670
|
East Texas Crude
Logistics System
|
19,942
|
|
27,497
|
|
18,010
|
|
26,790
|
Permian Gathering
System (1)
|
101,236
|
|
79,589
|
|
100,783
|
|
76,672
|
Plains Connection
System
|
154,086
|
|
122,529
|
|
158,025
|
|
115,484
|
Trucking
Assets
|
15,679
|
|
10,314
|
|
12,510
|
|
10,251
|
|
|
|
|
|
|
|
|
Wholesale Marketing and Terminalling
Segment:
|
|
|
|
|
|
|
|
East Texas - Tyler
Refinery sales volumes (average bpd) (2)
|
63,502
|
|
74,565
|
|
67,021
|
|
73,271
|
Big Spring marketing
throughputs (average bpd)
|
78,634
|
|
75,136
|
|
77,100
|
|
74,038
|
West Texas marketing
throughputs (average bpd)
|
10,073
|
|
9,395
|
|
9,994
|
|
9,765
|
West Texas gross margin
per barrel
|
$
2.67
|
|
$
4.24
|
|
$
2.85
|
|
$
3.81
|
Terminalling
throughputs (average bpd) (3)
|
130,002
|
|
139,987
|
|
136,808
|
|
142,250
|
|
|
(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.
|
8 |
3 Bear Operations Segment:
|
Period from June 1
through June 30, 2022
|
|
|
Natural Gas Gathering
and Processing (Mcfd(1))
|
51,292
|
Crude Oil Gathering
(bpd(2))
|
78,011
|
Water Disposal and
Recycling (bpd(2))
|
57,625
|
|
|
(1)
|
Mcfd - average thousand
cubic feet per day.
|
(2)
|
bpd - average barrels
per day.
|
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