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Delek Logistics Partners LP

Delek Logistics Reports Fourth Quarter 2023 Results and 2024 Capital Program

Fourth Quarter

  • Net income attributable to all partners of $22.1 million
  • Quarterly EBITDA of $86.1 million, adjusted EBITDA of $100.9 million
  • Distributable cash flow of $64.6 million, DCF coverage ratio of 1.40x
  • Delivered 44 consecutive quarters of distribution growth with recent increase to $1.055/unit

2023 Full Year

  • Net income attributable to all partners of $126.2 million
  • EBITDA of $370.3 million, adjusted EBITDA of $385.1 million
  • Distributable cash flow of $248.2 million, DCF coverage ratio of 1.37x
  • Improved leverage ratio to 4.34x from 4.89x at year-end 2022
  • Grew Midland gathering & processing volumes nearly 80%
  • Rewarded unitholders with continued distribution growth

2024 Capital Program

  • 2024 capital expenditures are estimated to be approximately $70 million

BRENTWOOD, Tenn. , Feb. 27, 2024 /PRNewswire/ -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the fourth quarter 2023, with reported net income attributable to all partners of $22.1 million, or $0.51 per diluted common limited partner unit. This compares to net income attributable to all partners of $42.7 million, or $0.98 per diluted common limited partner unit, in the fourth quarter 2022. The decrease in net income attributable to all partners was driven by higher interest expense and a fourth quarter 2023 goodwill impairment. Net cash provided in operating activities was $114.7 million in the fourth quarter 2023 compared to net cash used in operating activities of $105.3 million in the fourth quarter 2022. Distributable cash flow was $64.6 million in the fourth quarter 2023, compared to $51.4 million in the fourth quarter 2022.   

For the fourth quarter 2023, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $86.1 million.  Excluding the goodwill impairment, adjusted EBITDA was $100.9 million compared to $92.5 million in the fourth quarter 2022. 

"I am pleased to say that Delek Logistics has exceeded quarterly earnings goals, and surpassed last year's strong performance," said Avigal Soreq, President of Delek Logistics' general partner. "We saw substantial growth from new connections in our Midland gathering operations, further validating our strong position in the Permian Basin.  The dedication of our workforce to having safe and reliable operations also contributed to our success.  I'm proud of the team that has gone without a lost time injury 4-years in a row and counting.  We are excited for Delek Logistics' future and numerous growth opportunities. The business looks to utilize capital investments in 2024 to support customer growth and expand upon existing assets."

"In January, the Board approved the 44th consecutive increase in the quarterly distribution to $1.055 per unit. Delek Logistics has a strong track record of delivering value to unitholders. We feel confident in our ability to maintain competitive distributions to our investors as we head into 2024," Mr. Soreq concluded.

Distribution and Liquidity

On January 24, 2024, Delek Logistics declared a quarterly cash distribution of $1.055 per common limited partner unit for the fourth quarter 2023. This distribution was paid on February 12, 2024 to unitholders of record on February 5, 2024. This represents a 1.0% increase from the third quarter 2023 distribution of $1.045 per common limited partner unit, and a 3.4% increase over Delek Logistics' fourth quarter 2022 distribution of $1.020 per common limited partner unit. For the fourth quarter 2023, the total cash distribution declared to all partners was approximately $46.0 million, resulting in a distributable cash flow ("DCF") coverage ratio of 1.40x.

As of December 31, 2023, Delek Logistics had total debt of approximately $1.70 billion and cash of $3.8 million. Additional borrowing capacity, subject to certain covenants, under the $1.05 billion third party revolving credit facility was $269.5 million. The total leverage ratio as of December 31, 2023 of approximately 4.34x was within the requirements of the maximum allowable leverage ratio under the credit facility.

Consolidated Operating Results

Fourth quarter 2023 Adjusted EBITDA was $100.9 million compared with $92.5 million in the fourth quarter 2022. The $8.4 million increase reflects higher contributions from the Midland Gathering and Delaware Gathering systems, terminalling and marketing rate increases, as well as continued strong throughput on joint venture pipelines.  The increase was partially offset by higher operating expenses driven by the growth in operations.

Gathering and Processing Segment

Adjusted EBITDA in the fourth quarter 2023 was $53.3 million compared with $48.1 million in the fourth quarter 2022. The increase was primarily due to higher throughput from Permian Basin assets.

During the fourth quarter 2023, Delek Logistics recorded a $14.8 million impairment charge related to the Delaware Gathering reporting unit within the gathering and processing segment. The impairment was primarily driven by the significant increase in interest rates and timing effect of system connections with producer customers.  The Partnership's long-term outlook of its Delaware Gathering system remains unchanged.

Wholesale Marketing and Terminalling Segment

Adjusted EBITDA in the fourth quarter 2023 was $28.4 million, compared with fourth quarter 2022 Adjusted EBITDA of $23.3 million. The increase was primarily due to higher terminalling utilization.

Storage and Transportation Segment

Adjusted EBITDA in the fourth quarter 2023 was $17.5 million, compared with $16.1 million in the fourth quarter 2022. The increase was primarily due to increased storage and transportation rates.

Investments in Pipeline Joint Ventures Segment

During the fourth quarter 2023, income from equity method investments was $8.5 million compared to $9.0 million in the fourth quarter 2022.

Corporate

Adjusted EBITDA in the fourth quarter 2023 was a loss of $6.9 million compared to a loss of $4.0 million in the fourth quarter 2022.

Capital Program

Delek Logistics Partners expects the 2024 Capital Program to be approximately $70 million, with approximately $20 million for sustaining and regulatory projects and $50 million for growth projects. The 2024 Capital Program compares with the 2023 Capital Program of $74 million, which includes $7 million of capital partially funded by producers. Excluding these proceeds, 2023 capital expenditures were $81 million.

2024 growth capital will be to advance new connections in both the Midland and Delaware gathering systems, enabling continued volume growth at the Partnership.

($ millions)

Total

Delek Logistics


      Growth

$                                        50

      Sustaining & Regulatory

20

2024 Capital Program

$                                        70



Fourth Quarter 2023 Results | Conference Call Information

Delek Logistics will hold a conference call to discuss its fourth quarter 2023 results on Tuesday, February 27, 2024 at 11:30 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.    

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 Holdings, Inc. ("Delek US") owns the general partner interest as well as a majority limited partner interest in Delek Logistics, and is also a significant customer.

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 significant portion of Delek Logistics' revenue 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; 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; projected capital expenditures, 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 Delaware Gathering 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. 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 consolidated statements of income.
  • Adjusted Earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA") - EBITDA adjusted to exclude the impairment of goodwill associated with our Delaware Gathering reporting unit.
  • 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 - distributable cash flow adjusted to exclude significant, infrequently occurring transaction costs.

Our EBITDA, Adjusted EBITDA and distributable cash flow measures are non GAAP supplemental financial measures that management and external users of our 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 and Adjusted 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, Adjusted 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, Adjusted 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, Adjusted 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, Adjusted EBITDA and distributable cash flow may be defined differently by other partnerships in our industry, our definitions of EBITDA, Adjusted 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, Adjusted 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. 

Delek Logistics Partners, LP

Consolidated Balance Sheets (Unaudited)

(In thousands, except unit data)


December 31, 2023


December 31, 2022

ASSETS




Current assets:




Cash and cash equivalents

$                    3,755


$                   7,970

   Accounts receivable

41,131


53,314

Accounts receivable from related parties

28,443


—

Inventory

2,264


1,483

Other current assets

676


2,463

Total current assets

76,269


65,230

Property, plant and equipment:




Property, plant and equipment

1,320,510


1,240,684

Less: accumulated depreciation

(384,359)


(316,680)

Property, plant and equipment, net

936,151


924,004

Equity method investments

241,337


257,022

Customer relationship intangible, net

181,336


199,440

Marketing contract intangible, net

102,155


109,366

Rights-of-way, net

59,536


55,990

Goodwill

12,203


27,051

Operating lease right-of-use assets

19,043


24,788

Other non-current assets

14,216


16,408

Total assets

$              1,642,246


$             1,679,299





LIABILITIES AND DEFICIT




Current liabilities:




Accounts payable

$                  26,290


$                 57,403

Accounts payable to related parties

—


6,055

Current portion of long-term debt

30,000


15,000

Interest payable

5,805


5,308

Excise and other taxes payable

10,321


8,230

Current portion of operating lease liabilities

6,697


8,020

Accrued expenses and other current liabilities

11,477


6,202

Total current liabilities

90,590


106,218

Non-current liabilities:




Long-term debt, net of current portion

1,673,789


1,646,567

Operating lease liabilities, net of current portion

8,335


12,114

Asset retirement obligations

10,038


9,333

Other non-current liabilities

21,363


15,767

Total non-current liabilities

1,713,525


1,683,781

Total liabilities

1,804,115


1,789,999

Equity (Deficit):




Common unitholders - public; 9,299,763 units issued and outstanding at December 31, 2023 (9,257,305 at
December 31, 2022)

160,402


172,119

Common unitholders - Delek Holdings; 34,311,278 units issued and outstanding at December 31, 2023
(34,311,278 at December 31, 2022)

(322,271)


(282,819)

Total deficit

(161,869)


(110,700)

Total liabilities and deficit

$              1,642,246


$             1,679,299


   

Delek Logistics Partners, LP

Consolidated Statement of Income and Comprehensive Income (Unaudited)

(In thousands, except unit and per unit data)





Three Months Ended December 31,


Year Ended December 31,


2023


2022


2023


2022

Net revenues:








Affiliate

$           149,400


$           104,141


$           563,803


$           479,411

Third-party

104,749


164,910


456,606


556,996

Net revenues

254,149


269,051


1,020,409


1,036,407

Cost of sales:








Cost of materials and other - affiliate

98,071


121,855


396,333


496,184

Cost of materials and other - third party

29,707


39,213


136,294


145,179

Operating expenses (excluding depreciation and amortization presented below)

30,380


22,546


115,682


85,438

Depreciation and amortization

21,642


18,334


87,136


60,210

Total cost of sales

179,800


201,948


735,445


787,011

Operating expenses related to wholesale business (excluding depreciation and
amortization presented
below)

1,022


764


2,419


2,869

General and administrative expenses

5,100


3,355


24,766


34,181

Depreciation and amortization

1,325


1,357


5,248


2,778

Impairment of goodwill

14,848


—


14,848


—

(Gain) loss on disposal of assets

(462)


6


(1,266)


(114)

Total operating costs and expenses

201,633


207,430


781,460


826,725

Operating income

52,516


61,621


238,949


209,682

Interest expense, net

38,663


28,683


143,244


82,304

Income from equity method investments

(8,536)


(9,017)


(31,433)


(31,683)

Other income, net

(279)


(334)


(303)


(373)

Total non-operating expenses, net

29,848


19,332


111,508


50,248

Income before income tax expense

22,668


42,289


127,441


159,434

Income tax expense (benefit)

520


(411)


1,205


382

Net income attributable to partners

$             22,148


$             42,700


$           126,236


$           159,052

Comprehensive income attributable to partners

$             22,148


$             42,700


$           126,236


$           159,052









Net income per limited partner unit:








Basic

$                 0.51


$                 0.98


$                 2.90


$                 3.66

Diluted

$                 0.51


$                 0.98


$                 2.89


$                 3.66

Weighted average limited partner units outstanding:








Basic

43,599,670


43,517,906


43,583,938


43,487,910

Diluted

43,625,012


43,540,645


43,611,314


43,511,650

Cash distribution per common limited partner unit

$               1.055


$               1.020


$               4.160


$               3.975


 

Delek Logistics Partners, LP

Condensed Consolidated Statements of Cash Flows (In thousands)

Three Months Ended December 31,


Year Ended December 31,

(Unaudited)

2023


2022


2023


2022

Cash flows from operating activities








Net cash provided by (used in) operating activities

$             114,689


$           (105,314)


$             225,319


$             192,168

Cash flows from investing activities








Net cash used in investing activities

(33,995)


(65,350)


(89,629)


(770,437)

Cash flows from financing activities








Net cash (used in) provided by financing activities

(81,121)


163,689


(139,905)


581,947

Net (decrease) increase in cash and cash equivalents

(427)


(6,975)


(4,215)


3,678

Cash and cash equivalents at the beginning of the period

4,182


14,945


7,970


4,292

Cash and cash equivalents at the end of the period

$                3,755


$                7,970


$                3,755


$                7,970


   

Delek Logistics Partners, LP

Reconciliation of  Amounts Reported Under U.S. GAAP (Unaudited)

(In thousands)


Three Months Ended December 31,


Year Ended December 31,


2023


2022


2023


2022

Reconciliation of Net Income to EBITDA:








Net income

$               22,148


$             42,700


$           126,236


$           159,052

Add:








Income tax expense (benefit)

520


(411)


1,205


382

Depreciation and amortization

22,967


19,691


92,384


62,988

Amortization of marketing contract intangible

1,803


1,803


7,211


7,211

Interest expense, net

38,663


28,683


143,244


82,304

EBITDA

$               86,101


$             92,466


$           370,280


$           311,937

Impairment of goodwill

14,848


—


14,848


—

Adjusted EBITDA

$             100,949


$             92,466


$           385,128


$           311,937









Reconciliation of net cash from operating activities to distributable cash flow:








Net cash provided by (used in) operating activities

$             114,689


$          (105,314)


$           225,319


$           192,168

Changes in assets and liabilities

(51,894)


164,781


29,474


49,423

Non-cash lease expense

(2,142)


(2,670)


(9,549)


(16,254)

Distributions from equity method investments in investing activities

4,525


—


9,002


1,737

Regulatory and sustaining capital expenditures not distributable

(1,348)


(6,501)


(7,272)


(9,684)

Reimbursement from Delek Holdings for capital expenditures

338


1,171


1,280


1,176

Accretion of asset retirement obligations

(176)


(181)


(705)


(596)

Deferred income taxes

115


71


(638)


(5)

Gain (loss) on disposal of assets

462


(6)


1,266


114

Distributable Cash Flow

$               64,569


$             51,351


$           248,177


$           218,079

Transaction costs

—


—


—


10,604

Distributable Cash Flow, as adjusted

$               64,569


$             51,351


$           248,177


$           228,683


 

Delek Logistics Partners, LP

Distributable Coverage Ratio Calculation (Unaudited)

(In thousands)


Three Months Ended December 31,


Year Ended December 31,


2023


2022


2023


2022

Distributions to partners of Delek Logistics, LP

$              46,010


$             44,440


$           181,344


$           172,933









Distributable cash flow

$              64,569


$             51,351


$           248,177


$           218,079

Distributable cash flow coverage ratio (1)

1.40x


1.16x


1.37x


1.26x

Distributable cash flow, as adjusted (2)

64,569


51,351


248,177


228,683

Distributable cash flow coverage ratio, as adjusted (3)

1.40x


1.16x


1.37x


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 Delaware Gathering Acquisition (formerly 3 Bear).

(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.


 

Delek Logistics Partners, LP

Segment Data (Unaudited)

(In thousands)




Three Months Ended December 31, 2023



Gathering and
Processing


Wholesale
Marketing and
Terminalling


Storage and
Transportation


Investments in
Pipeline Joint
Ventures


Corporate and
Other


Consolidated

Net revenues:













Affiliate


$           55,175


$           62,560


$           31,665


$                 —


$                 —


$         149,400

Third party


35,441


64,895


4,413


—


—


104,749

Total revenue


$           90,616


$         127,455


$           36,078


$                 —


$                 —


$         254,149














Segment EBITDA


$           38,449


$           28,441


$           17,534


$            8,535


$           (6,858)


$           86,101

Depreciation and amortization


17,670


1,717


2,730


—


850


22,967

Amortization of customer contract intangible


—


1,803


—


—


—


1,803

Interest expense, net


—


—


—


—


38,663


38,663

Income tax expense












520

Net income












$           22,148














Capital spending


$           12,515


$              (416)


$               615


$                 —


$                 —


$           12,714




Three Months Ended December 31, 2023



Gathering and
Processing


Wholesale
Marketing and
Terminalling


Storage and
Transportation


Investments in
Pipeline Joint
Ventures


Corporate and
Other


Consolidated

Segment EBITDA


$           38,449


$           28,441


$           17,534


$            8,535


$           (6,858)


$           86,101

Impairment of goodwill


14,848


—


—


—


—


14,848

Segment Adjusted EBITDA


$           53,297


$           28,441


$           17,534


$            8,535


$           (6,858)


$         100,949




Three Months Ended December 31, 2022



Gathering and
Processing


Wholesale
Marketing and
Terminalling


Storage and
Transportation


Investments in
Pipeline Joint
Ventures


Corporate and
Other


Consolidated

Net revenues:













Affiliate


$           51,530


$           29,080


$           23,531


$                 —


$                 —


$         104,141

Third party


38,417


115,623


10,870


—


—


164,910

Total revenue


$           89,947


$         144,703


$           34,401


$                 —


$                 —


$         269,051














Segment EBITDA


$           48,121


$           23,285


$           16,057


$            9,017


$           (4,014)


$           92,466

Depreciation and amortization


14,946


1,634


2,228


—


883


19,691

Amortization of customer contract intangible


—


1,803


—


—


—


1,803

Interest expense, net


—


—


—


—


28,683


28,683

Income tax benefit












(411)

Net income












$           42,700














Capital spending


$           56,206


$               157


$            6,528


$                 —


$                 —


$           62,891




Year Ended December 31, 2023



Gathering and
Processing


Wholesale
Marketing and
Terminalling


Storage and
Transportation


Investments in
Pipeline Joint
Ventures


Corporate and
Other


Consolidated

Net revenues:













Affiliate


$         212,537


$         218,997


$         132,269


$                 —


$                 —


$         563,803

Third party


158,573


286,704


11,329


—


—


456,606

Total revenue


$         371,110


$         505,701


$         143,598


$                 —


$                 —


$      1,020,409














Segment EBITDA


$         199,463


$         106,512


$           63,850


$           31,424


$         (30,969)


$         370,280

Depreciation and amortization


72,181


7,055


9,839


—


3,309


92,384

Amortization of customer contract intangible


—


7,211


—


—


—


7,211

Interest expense, net


—


—


—


—


143,244


143,244

Income tax expense












1,205

Net income












$         126,236














Capital spending


$           74,683


$            2,111


$            4,548


$                 —


$                 —


$           81,342




Year Ended December 31, 2023



Gathering and
Processing


Wholesale
Marketing and
Terminalling


Storage and
Transportation


Investments in
Pipeline Joint
Ventures


Corporate and
Other


Consolidated

Segment EBITDA


$         199,463


$         106,512


$           63,850


$           31,424


$         (30,969)


$         370,280

Impairment of goodwill


14,848


—


—


—


—


14,848

Segment Adjusted EBITDA


$         214,311


$         106,512


$           63,850


$           31,424


$         (30,969)


$         385,128




Year Ended December 31, 2022



Gathering and
Processing


Wholesale
Marketing and
Terminalling


Storage and
Transportation


Investments in
Pipeline Joint
Ventures


Corporate and
Other


Consolidated

Net revenues:













Affiliate


$         185,845


$         173,084


$         120,482


$                 —


$                 —


$         479,411

Third party


119,582


415,800


21,614


—


—


556,996

Total revenue


$         305,427


$         588,884


$         142,096


$                 —


$                 —


$      1,036,407














Segment EBITDA


$         175,250


$           83,098


$           56,269


$           31,683


$         (34,363)


$         311,937

Depreciation and amortization


47,206


6,308


8,591


—


883


62,988

Amortization of customer contract intangible


—


7,211


—


—


—


7,211

Interest expense, net


—


—


—


—


82,304


82,304

Income tax expense












382

Net income












$         159,052














Capital spending


$         122,594


$            1,548


$            6,528


$                 —


$                 —


$         130,670

     

Delek Logistics Partners, LP

Segment Capital Spending

 (In thousands)


Three Months Ended December 31,


Year Ended December 31,

Gathering and Processing

2023


2022


2023


2022

Regulatory capital spending

$                     —


$                  163


$                   31


$               2,855

Sustaining capital spending

1,036


1,103


2,016


1,455

Growth capital spending

11,479


54,940


72,636


118,284

Segment capital spending

$              12,515


$             56,206


$             74,683


$           122,594

Wholesale Marketing and Terminalling








Regulatory capital spending

$                   553


$                    —


924


156

Sustaining capital spending

(591)


5


163


24

Growth capital spending

(378)


152


1,024


1,368

Segment capital spending

$                 (416)


$                  157


$               2,111


$               1,548

Storage and Transportation








Regulatory capital spending

$                   335


$                    —


$               2,005


$                    —

Sustaining capital spending

280


6,528


2,543


6,528

Growth capital spending

—


—


$                    —


$                    —

Segment capital spending

$                   615


$               6,528


$               4,548


$               6,528

Consolidated








Regulatory capital spending

$                   888


$                  163


$               2,960


$               3,011

Sustaining capital spending

725


7,636


4,722


8,007

Growth capital spending

11,101


55,092


73,660


119,652

Total capital spending

$              12,714


$             62,891


$             81,342


$           130,670


   

Delek Logistics Partners, LP





Segment Operating Data (Unaudited)






Three Months Ended December 31,


Year Ended December 31,


2023


2022


2023


2022

Gathering and Processing Segment:








Throughputs (average bpd)








El Dorado Assets:








    Crude pipelines (non-gathered)

73,438


68,798


67,003


78,519

    Refined products pipelines to Enterprise Systems

68,552


35,585


58,181


56,382

El Dorado Gathering System

13,329


13,136


13,782


15,391

East Texas Crude Logistics System

40,798


25,154


32,668


21,310

Midland Gathering System (1)

229,179


191,119


230,471


128,725

Plains Connection System

254,224


234,164


250,140


183,827

Delaware Gathering Assets (2):








Natural Gas Gathering and Processing (Mcfd(3))

67,292


60,669


71,239


60,971

Crude Oil Gathering (average bpd)

112,522


91,526


111,335


87,519

Water Disposal and Recycling (average bpd)

94,686


80,028


102,340


72,056









Wholesale Marketing and Terminalling Segment:








East Texas - Tyler Refinery sales volumes (average bpd) (4)

68,735


64,825


60,626


66,058

Big Spring marketing throughputs (average bpd)

76,408


74,238


77,897


71,580

West Texas marketing throughputs (average bpd)

10,511


10,835


10,032


10,206

West Texas gross margin per barrel

$                  4.73


$                 5.64


$                 5.18


$                 4.45

Terminalling throughputs (average bpd) (5)

105,933


127,277


113,803


132,262



(1)

Formerly known as the Permian Gathering Assets.

(2)

Volumes for the year ended December 31, 2022 are for the period from June 1 through December 31, 2022, for which we owned the Delaware Gathering Assets.

(3)

Mcfd - average thousand cubic feet per day.

(4)

Excludes jet fuel and petroleum coke.

(5)

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 (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 Partners, LP