- Reported third quarter net income attributable to all
partners of $44.7 million
- Record EBITDA of $89.0 million
including approximately $4.2 million
of adverse acquisition related expenses
- Third quarter adjusted distributable cash flow coverage
ratio of 1.62x; Total leverage ratio is 4.35x
- Achieved target to double Delek Permian Gathering volumes
from 4Q21 to 3Q22 exit rate
- Amended credit agreement increases liquidity and improves
debt maturity profile
- Delivered 39 consecutive quarters of distribution growth
with recent increase to $0.99/unit;
reflects 4.2% increase y/y
BRENTWOOD, Tenn., Nov. 7, 2022
/PRNewswire/ -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek
Logistics") today announced its financial results for the third
quarter 2022, with reported net income attributable to all partners
of $44.7 million, or $1.03 per diluted common limited partner unit.
This compares to net income attributable to all partners of
$43.6 million, or $1.00 per diluted common limited partner unit, in
the third quarter 2021. Net cash from operating activities was
$164.4 million in the third quarter
2022 compared to $74.8 million in the
third quarter 2021. Distributable cash flow, as
adjusted(1) was $69.9
million in the third quarter 2022, compared to $55.5 million in the third quarter
2021.
For the third quarter 2022, earnings before interest, taxes,
depreciation and amortization ("EBITDA") was $89.0 million (including $4.2 million of adverse transaction costs
associated with 3 Bear Delaware - NM, LLC) compared to $69.9 million in the third quarter
2021.
Avigal Soreq, President of Delek Logistics' general partner,
stated, "The integration of the 3 Bear asset acquisition is
beginning to contribute to companywide performance. These assets
provide diversification and additional growth opportunities within
the portfolio. The legacy Delek Permian Gathering system delivered
on our previous guidance to double volumes from the fourth quarter
of last year to the third quarter exit rate of this year. Strong
refinery utilization rates at Delek US Holdings continue to benefit
the surrounding DKL midstream footprint."
Mr. Soreq continued, "In October, DKL amended the Credit
Agreement thereby increasing liquidity and improving the maturity
profile of the Company. Finally, the Board approved the 39th
consecutive increase in the quarterly distribution to $0.99 per unit. This reflects a strong commitment
to returning cash to unitholders and demonstrates the strength and
stability of the underlying asset base."
Distribution and Liquidity
On October 25, 2022, Delek Logistics declared a quarterly
cash distribution of $0.99 per common
limited partner unit for the third quarter 2022, which equates to
$3.96 per common limited partner unit
on an annualized basis. This distribution will be paid on
November 10, 2022 to unitholders of record on November 4,
2022. This represents a 0.5% increase from the second quarter 2022
distribution of 0.985 per common limited partner unit, or
$3.94 per common limited partner unit
on an annualized basis, and a 4.2% increase over Delek Logistics'
third quarter 2021 distribution of 0.95 per common limited partner
unit, or $3.80 per common limited
partner unit annualized. For the third quarter 2022, the total cash
distribution declared to all partners was approximately
$43.1 million, resulting in a
distributable cash flow coverage ratio, as adjusted(1)
of 1.62x.
As of September 30, 2022, Delek
Logistics had total debt of approximately $1.45 billion and cash of $14.9 million. Additional borrowing capacity,
subject to certain covenants, under the $1.0
billion credit facility was $193.1
million. The total leverage ratio as of September 30, 2022 of approximately 4.35x was
well within the requirements of the maximum allowable leverage
ratio under the credit facility.
On October 13, 2022, Delek
Logistics entered into a fourth amended and restated senior secured
revolving credit agreement with Fifth Third, National Association
as administrative agent and a syndicate of lenders (the "Amended
and Restated Delek Logistics Credit Facility"). The Amended and
Restated Delek Logistics Credit Facility, among other things, (i)
increased total aggregate commitments to $1.2 billion, comprised of (A) senior secured
revolving commitments of $900.0
million in aggregate with an extended maturity date of
October 13, 2027, and (B) a new
senior secured term loan facility for a term loan in the original
principal amount of $300.0 million
which was drawn in full on October 13,
2022, with a maturity date of October
13, 2024.
Consolidated Operating Results
Contribution margin in the third quarter 2022 increased to
$90.4 million compared to
$66.9 million in the third 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. Third quarter 2022 EBITDA of $89.0 million benefited from the increased
contribution margin as well as continued strong throughput on joint
venture pipelines, offset by $4.2
million of transaction costs associated with the 3 Bear
Acquisition, as compared to EBITDA of $69.9
million in the third quarter 2021. Net income
attributable to all partners for the third quarter 2022 of
$44.7 million reflected an increase
of $1.1 million compared to the third
quarter 2021, due primarily to an increase of $23.5 million in contribution margin, partially
offset by incremental costs related to 3 Bear.
(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 third quarter 2022 was $54.0 million compared to $47.4 million in the third quarter 2021. The
increase was primarily driven from strong refinery utilization
rates at Delek US and annual tariff escalations on our
pipelines.
Wholesale Marketing and Terminalling Segment
During the third quarter 2022, contribution margin was
$18.3 million compared to
$19.6 million in the third quarter
2021. The decrease was primarily driven by lower margins resulting
from higher operating costs.
3 Bear Operations Segment
During the third quarter 2022, incremental contribution
margin of $22.8 million favorably
impacted our results. Contribution margin in the 3 Bear Operations
Segment is largely driven by production volumes and gathering
activities during the quarter. These are a function of both
producer activities as well as the Company's 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 third quarter 2022, income from equity method
investments was $8.6 million compared
to $7.3 million in the third quarter
2021, primarily driven by increased volumes at both Caddo and
Red River joint ventures.
Third Quarter 2022 Results | Conference Call
Information
Delek Logistics will hold a conference call to discuss its third
quarter 2022 results on Monday, November 7,
2022 at 8:30 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") third quarter 2022 earnings conference call
on Monday, November 7, 2022 at
9:30 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 is a midstream energy master limited partnership
headquartered in Brentwood,
Tennessee. Through its owned assets and joint ventures
located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the
Gulf Coast region. Delek Logistics provides gathering, pipeline and
other transportation services primarily for crude oil and natural
gas customers, storage, wholesale marketing and terminalling
services primarily for intermediate and refined product customers,
and water disposal and recycling services. Delek US owns the
general partner interest as well as a majority limited partner
interest in Delek Logistics, and is also a significant
customer.
2 |
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
3 |
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.
4 |
Delek Logistics
Partners, LP
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(In thousands,
except unit and per unit data)
|
|
September 30,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
14,945
|
|
$
4,292
|
Accounts
receivable
|
53,351
|
|
15,384
|
Inventory
|
2,490
|
|
2,406
|
Other current
assets
|
2,424
|
|
951
|
Total current
assets
|
73,210
|
|
23,033
|
Property, plant and
equipment:
|
|
|
|
Property, plant and
equipment
|
1,178,334
|
|
715,870
|
Less: accumulated
depreciation
|
(302,734)
|
|
(266,482)
|
Property, plant and
equipment, net
|
875,600
|
|
449,388
|
Equity method
investments
|
248,005
|
|
250,030
|
Customer relationship
intangible, net
|
203,966
|
|
—
|
Marketing contract
intangible, net
|
111,169
|
|
116,577
|
Rights-of-way
|
55,230
|
|
37,280
|
Goodwill
|
26,609
|
|
12,203
|
Operating lease
right-of-use assets
|
24,329
|
|
20,933
|
Other non-current
assets
|
20,122
|
|
25,627
|
Total
assets
|
$
1,638,240
|
|
$
935,071
|
|
|
|
|
LIABILITIES AND
DEFICIT
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
53,053
|
|
$
8,160
|
Accounts payable to
related parties
|
173,170
|
|
64,423
|
Interest
payable
|
18,012
|
|
5,024
|
Excise and other taxes
payable
|
6,759
|
|
5,280
|
Current portion of
operating lease liabilities
|
7,775
|
|
6,811
|
Accrued expenses and
other current liabilities
|
7,189
|
|
7,117
|
Total current
liabilities
|
265,958
|
|
96,815
|
Non-current
liabilities:
|
|
|
|
Long-term
debt
|
1,448,772
|
|
898,970
|
Asset retirement
obligations
|
9,152
|
|
6,476
|
Operating lease
liabilities, net of current portion
|
11,798
|
|
14,071
|
Other non-current
liabilities
|
16,817
|
|
22,731
|
Total non-current
liabilities
|
1,486,539
|
|
942,248
|
Total
liabilities
|
1,752,497
|
|
1,039,063
|
Equity
(Deficit):
|
|
|
|
Common unitholders -
public; 9,180,901 units issued and outstanding at September 30,
2022 (8,774,053 at December 31, 2021)
|
168,911
|
|
166,067
|
Common unitholders -
Delek Holdings; 34,311,278 units issued and outstanding at
September 30, 2022 (34,696,800 at December 31,
2021)
|
(283,168)
|
|
(270,059)
|
Total
deficit
|
(114,257)
|
|
(103,992)
|
Total liabilities and
deficit
|
$
1,638,240
|
|
$
935,071
|
5 |
Delek Logistics
Partners, LP
|
Condensed
Consolidated Statements of Income (Unaudited)
|
(In thousands,
except unit and per unit data)
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliate
|
$
127,150
|
|
$
123,519
|
|
$
375,270
|
|
$
308,435
|
Third-party
|
166,875
|
|
66,108
|
|
392,086
|
|
202,583
|
Net revenues
|
294,025
|
|
189,627
|
|
767,356
|
|
511,018
|
Cost of
sales:
|
|
|
|
|
|
|
|
Cost of materials and
other
|
177,740
|
|
105,129
|
|
480,295
|
|
274,995
|
Operating expenses
(excluding depreciation and amortization presented
below)
|
25,065
|
|
17,073
|
|
62,892
|
|
46,286
|
Depreciation and
amortization
|
19,067
|
|
9,666
|
|
41,876
|
|
29,393
|
Total cost of
sales
|
221,872
|
|
131,868
|
|
585,063
|
|
350,674
|
Operating expenses
related to wholesale business (excluding depreciation and
amortization presented below)
|
836
|
|
515
|
|
2,105
|
|
1,741
|
General and
administrative expenses
|
11,959
|
|
5,898
|
|
30,826
|
|
15,933
|
Depreciation and
amortization
|
473
|
|
490
|
|
1,421
|
|
1,469
|
Other operating
(income) expense, net
|
(132)
|
|
273
|
|
(120)
|
|
54
|
Total operating costs
and expenses
|
235,008
|
|
139,044
|
|
619,295
|
|
369,871
|
Operating
income
|
59,017
|
|
50,583
|
|
148,061
|
|
141,147
|
Interest expense,
net
|
22,559
|
|
14,529
|
|
53,621
|
|
35,924
|
Income from equity
method investments
|
(8,567)
|
|
(7,261)
|
|
(22,666)
|
|
(17,952)
|
Other income,
net
|
(36)
|
|
(115)
|
|
(39)
|
|
(118)
|
Total non-operating
expenses, net
|
13,956
|
|
7,153
|
|
30,916
|
|
17,854
|
Income before income
tax expense (benefit)
|
45,061
|
|
43,430
|
|
117,145
|
|
123,293
|
Income tax expense
(benefit)
|
387
|
|
(194)
|
|
793
|
|
156
|
Net income attributable
to partners
|
$
44,674
|
|
$
43,624
|
|
$
116,352
|
|
$
123,137
|
Comprehensive income
attributable to partners
|
$
44,674
|
|
$
43,624
|
|
$
116,352
|
|
$
123,137
|
|
|
|
|
|
|
|
|
Net income per
limited partner unit:
|
|
|
|
|
|
|
|
Basic
|
$
1.03
|
|
$
1.00
|
|
$
2.68
|
|
$
2.83
|
Diluted
|
$
1.03
|
|
$
1.00
|
|
$
2.67
|
|
$
2.83
|
Weighted average
limited partner units outstanding:
|
|
|
|
|
|
|
|
Basic
|
43,485,779
|
|
43,454,535
|
|
43,477,801
|
|
43,447,739
|
Diluted
|
43,515,960
|
|
43,468,289
|
|
43,499,837
|
|
43,457,857
|
Cash distribution per
common limited partner unit
|
$
0.990
|
|
$
0.950
|
|
$
2.955
|
|
$
3.800
|
Delek Logistics
Partners, LP
|
Condensed
Consolidated Statements of Cash Flows (Unaudited) (In
thousands)
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
Cash flows from
operating activities
|
|
|
|
Net cash provided by
operating activities
|
$
297,482
|
|
$
222,276
|
Cash flows from
investing activities
|
|
|
|
Net cash used in
investing activities
|
(705,087)
|
|
(7,971)
|
Cash flows from
financing activities
|
|
|
|
Net cash provided by
(used) in financing activities
|
418,258
|
|
(213,684)
|
Net increase in cash
and cash equivalents
|
10,653
|
|
621
|
Cash and cash
equivalents at the beginning of the period
|
4,292
|
|
4,243
|
Cash and cash
equivalents at the end of the period
|
$
14,945
|
|
$
4,864
|
6 |
Delek Logistics
Partners, LP
|
Reconciliation
of Amounts Reported Under U.S. GAAP
|
(In
thousands)
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Reconciliation of
Net Income to EBITDA:
|
|
|
|
|
|
|
|
Net income
|
$
44,674
|
|
$
43,624
|
|
$
116,352
|
|
$
123,137
|
Add:
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
387
|
|
(194)
|
|
793
|
|
156
|
Depreciation and
amortization
|
19,540
|
|
10,156
|
|
43,297
|
|
30,862
|
Amortization of
marketing contract intangible asset
|
1,802
|
|
1,802
|
|
5,408
|
|
5,408
|
Interest expense,
net
|
22,559
|
|
14,529
|
|
53,621
|
|
35,924
|
EBITDA
|
$
88,962
|
|
$
69,917
|
|
$
219,471
|
|
$
195,487
|
|
|
|
|
|
|
|
|
Reconciliation of
net cash from operating activities to distributable cash
flow:
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$
164,425
|
|
$
74,752
|
|
$
297,482
|
|
$
222,276
|
Changes in assets and
liabilities
|
(94,450)
|
|
(16,256)
|
|
(115,358)
|
|
(56,898)
|
Non-cash lease
expense
|
(2,100)
|
|
(2,460)
|
|
(13,584)
|
|
(6,967)
|
Distributions from
equity method investments in investing activities
|
—
|
|
845
|
|
1,737
|
|
6,245
|
Maintenance and
regulatory capital expenditures not distributable
|
(2,143)
|
|
(850)
|
|
(3,183)
|
|
(3,712)
|
Reimbursement from
Delek for capital expenditures
|
19
|
|
11
|
|
5
|
|
1,588
|
Accretion of asset
retirement obligations
|
(168)
|
|
(116)
|
|
(415)
|
|
(346)
|
Deferred income
taxes
|
(76)
|
|
(138)
|
|
(76)
|
|
(203)
|
Gain (loss) on sale of
assets
|
132
|
|
(273)
|
|
120
|
|
(54)
|
Distributable Cash
Flow
|
$
65,639
|
|
$
55,515
|
|
$
166,728
|
|
$
161,929
|
Transaction
costs
|
4,211
|
|
—
|
|
10,604
|
|
|
Distributable Cash
Flow, as adjusted (1)
|
$
69,850
|
|
$
55,515
|
|
$
177,332
|
|
$
161,929
|
(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
September 30,
|
|
Nine Months Ended
September 30,
|
Distributions to
partners of Delek Logistics, LP
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Limited partners'
distribution on common units
|
$
43,057
|
|
$
41,286
|
|
$
128,493
|
|
$
122,100
|
General partner's
distributions
|
—
|
|
—
|
|
—
|
|
—
|
General partner's
incentive distribution rights
|
—
|
|
—
|
|
—
|
|
—
|
Total distributions to
be paid
|
$
43,057
|
|
$
41,286
|
|
$
128,493
|
|
$
122,100
|
|
|
|
|
|
|
|
|
Distributable cash
flow
|
$
65,639
|
|
$
55,515
|
|
$
166,728
|
|
$
161,929
|
Distributable cash flow
coverage ratio (1)
|
1.52x
|
|
1.34x
|
|
1.30x
|
|
1.33x
|
Distributable cash
flow, as adjusted (2)
|
69,850
|
|
55,515
|
|
177,332
|
|
161,929
|
Distributable cash flow
coverage ratio, as adjusted (3)
|
1.62x
|
|
1.34x
|
|
1.38x
|
|
1.33x
|
(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.
|
7 |
Delek Logistics
Partners, LP
|
Segment Data
(unaudited)
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
(In
thousands)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Pipelines and
Transportation
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliate
|
$
79,395
|
|
$
70,879
|
|
$
225,711
|
|
$
199,591
|
Third party
|
5,883
|
|
5,323
|
|
15,978
|
|
12,021
|
Total pipelines and
transportation
|
85,278
|
|
76,202
|
|
241,689
|
|
211,612
|
Cost of materials and
other
|
20,004
|
|
15,170
|
|
58,272
|
|
42,595
|
Operating expenses
(excluding depreciation and amortization presented
below)
|
11,292
|
|
13,680
|
|
37,789
|
|
34,710
|
Segment contribution
margin
|
$
53,982
|
|
$
47,352
|
|
$
145,628
|
|
$
134,307
|
Depreciation and
amortization
|
$
7,847
|
|
$
8,056
|
|
$
23,668
|
|
$
24,918
|
Capital
spending
|
$
21,151
|
|
$
2,570
|
|
$
50,793
|
|
$
9,946
|
Wholesale Marketing
and Terminalling
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliates (1)
|
$
45,162
|
|
$
52,640
|
|
$
144,004
|
|
$
108,844
|
Third party
|
102,703
|
|
60,785
|
|
300,177
|
|
190,562
|
Total wholesale
marketing and terminalling
|
147,865
|
|
113,425
|
|
444,181
|
|
299,406
|
Cost of materials and
other
|
122,614
|
|
89,959
|
|
373,126
|
|
232,400
|
Operating expenses
(excluding depreciation and amortization presented
below)
|
6,952
|
|
3,908
|
|
17,397
|
|
13,317
|
Segment contribution
margin
|
$
18,299
|
|
$
19,558
|
|
$
53,658
|
|
$
53,689
|
Depreciation and
amortization
|
$
2,640
|
|
$
2,100
|
|
$
7,641
|
|
$
5,944
|
Capital
spending
|
$
278
|
|
$
1,566
|
|
$
1,337
|
|
$
4,580
|
3 Bear
Operations
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliate
|
$
2,593
|
|
$
—
|
|
$
5,555
|
|
$
—
|
Third party
|
58,289
|
|
—
|
|
75,931
|
|
—
|
Total 3 Bear
|
60,882
|
|
—
|
|
81,486
|
|
—
|
Cost of materials and
other
|
35,122
|
|
—
|
|
48,897
|
|
—
|
Operating expenses
(excluding depreciation and amortization presented
below)
|
7,657
|
|
—
|
|
9,811
|
|
—
|
Segment contribution
margin
|
$
18,103
|
|
$
—
|
|
$
22,778
|
|
$
—
|
Depreciation and
amortization
|
$
9,053
|
|
$
—
|
|
$
11,988
|
|
$
—
|
Capital
spending
|
$
10,531
|
|
$
—
|
|
$
15,642
|
|
$
—
|
Investments in
Pipeline Joint Ventures
|
|
|
|
|
|
|
|
Income from equity
method investments
|
$
8,567
|
|
$
7,261
|
|
$
22,666
|
|
$
17,952
|
Equity method
investments contributions
|
$
—
|
|
$
—
|
|
$
—
|
|
$
(1,393)
|
Consolidated
|
|
|
|
|
|
|
|
Net
revenues:
|
|
|
|
|
|
|
|
Affiliates
|
$
127,150
|
|
$
123,519
|
|
$
375,270
|
|
$
308,435
|
Third party
|
166,875
|
|
66,108
|
|
392,086
|
|
202,583
|
Total
consolidated
|
294,025
|
|
189,627
|
|
767,356
|
|
511,018
|
Cost of materials and
other
|
177,740
|
|
105,129
|
|
480,295
|
|
274,995
|
Operating expenses
(excluding depreciation and amortization presented
below)
|
25,901
|
|
17,588
|
|
64,997
|
|
48,027
|
Contribution
margin
|
90,384
|
|
66,910
|
|
222,064
|
|
187,996
|
General and
administrative expenses
|
11,959
|
|
5,898
|
|
30,826
|
|
15,933
|
Depreciation and
amortization
|
19,540
|
|
10,156
|
|
43,297
|
|
30,862
|
Other operating
(income) expense, net
|
(132)
|
|
273
|
|
(120)
|
|
54
|
Operating
income
|
$
59,017
|
|
$
50,583
|
|
$
148,061
|
|
$
141,147
|
Capital
spending
|
$
31,960
|
|
$
4,136
|
|
$
67,772
|
|
$
14,526
|
(1)
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
September 30,
|
|
Nine Months Ended
September 30,
|
Pipelines and
Transportation
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Maintenance capital
spending
|
$
720
|
|
$
215
|
|
$
2,316
|
|
$
1,141
|
Discretionary capital
spending
|
20,431
|
|
2,355
|
|
48,477
|
|
8,805
|
Segment capital
spending
|
$
21,151
|
|
$
2,570
|
|
50,793
|
|
9,946
|
Wholesale Marketing
and Terminalling
|
|
|
|
|
|
|
|
Maintenance capital
spending
|
$
—
|
|
$
674
|
|
907
|
|
1,394
|
Discretionary capital
spending
|
278
|
|
892
|
|
430
|
|
3,186
|
Segment capital
spending
|
$
278
|
|
$
1,566
|
|
1,337
|
|
4,580
|
3 Bear
Operations
|
|
|
|
|
|
|
|
Maintenance capital
spending
|
$
169
|
|
$
—
|
|
$
753
|
|
$
—
|
Discretionary capital
spending
|
10,362
|
|
—
|
|
14,889
|
|
—
|
Segment capital
spending
|
$
10,531
|
|
$
—
|
|
$
15,642
|
|
$
—
|
Consolidated
|
|
|
|
|
|
|
|
Maintenance capital
spending
|
$
889
|
|
$
889
|
|
$
3,976
|
|
$
2,535
|
Discretionary capital
spending
|
31,071
|
|
3,247
|
|
63,796
|
|
11,991
|
Total capital
spending
|
$
31,960
|
|
$
4,136
|
|
$
67,772
|
|
$
14,526
|
(1) There were no capital
contributions to equity method investments for the nine months
ended September 30, 2022.
|
Delek Logistics
Partners, LP
|
|
|
|
|
Segment Data
(Unaudited)
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Pipelines and
Transportation Segment:
|
|
|
|
|
|
|
|
Throughputs (average
bpd)
|
|
|
|
|
|
|
|
El Dorado
Assets:
|
|
|
|
|
|
|
|
Crude pipelines (non-gathered)
|
87,653
|
|
81,929
|
|
81,795
|
|
60,344
|
Refined products pipelines to Enterprise Systems
|
65,761
|
|
62,263
|
|
63,391
|
|
42,733
|
El Dorado Gathering
System
|
14,354
|
|
14,086
|
|
16,150
|
|
14,056
|
East Texas Crude
Logistics System
|
23,960
|
|
18,644
|
|
20,015
|
|
24,045
|
Permian Gathering
System (1)
|
121,304
|
|
84,325
|
|
107,699
|
|
79,251
|
Plains Connection
System
|
184,254
|
|
131,571
|
|
166,864
|
|
120,905
|
Trucking
Assets
|
15,763
|
|
11,450
|
|
13,606
|
|
10,655
|
|
|
|
|
|
|
|
|
Wholesale Marketing
and Terminalling Segment:
|
|
|
|
|
|
|
|
East Texas - Tyler
Refinery sales volumes (average bpd) (2)
|
65,396
|
|
71,847
|
|
66,473
|
|
72,791
|
Big Spring marketing
throughputs (average bpd)
|
74,238
|
|
81,880
|
|
76,135
|
|
76,680
|
West Texas marketing
throughputs (average bpd)
|
10,082
|
|
10,560
|
|
10,023
|
|
10,033
|
West Texas gross margin
per barrel
|
$
4.23
|
|
$
3.33
|
|
$
3.84
|
|
$
3.64
|
Terminalling
throughputs (average bpd) (3)
|
142,003
|
|
144,355
|
|
138,558
|
|
142,959
|
(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.
|
9 |
3 Bear Operations
Segment:
|
Three Months
Ended
September 30, 2022
|
|
Period from June
1
through September 30, 2022
|
|
|
|
|
Natural Gas Gathering
and Processing (Mcfd(1))
|
64,429
|
|
115,721
|
Crude Oil Gathering
(bpd(2))
|
86,483
|
|
164,891
|
Water Disposal and
Recycling (bpd(2))
|
69,411
|
|
125,127
|
(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).
10 |
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SOURCE Delek Logistics