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Delek Logistics Partners, LP Reports Fourth Quarter and Full Year 2017 Results
  • Declared quarterly distribution of $0.725 per limited partner unit; increased by 6.6 percent year-over-year
  • Reported fourth quarter 2017 net cash from operating activities of $9.8 million and distributable cash flow of $21.9 million
  • Announces agreement to acquire Big Spring logistics assets with approximately $40 million of forecasted annual EBITDA from Delek US
  • Announced formation of 50/50 joint venture with Green Plains Partners LP to acquire two light products terminals for $138.5 million

BRENTWOOD, Tenn., Feb. 26, 2018 (GLOBE NEWSWIRE) -- Delek Logistics Partners, LP (NYSE:DKL) ("Delek Logistics") today announced its financial results for the fourth quarter 2017. For the three months ended December 31, 2017, Delek Logistics reported net income attributable to all partners of $18.9 million, or $0.57 per diluted common limited partner unit. This compares to net income attributable to all partners of $15.3 million, or $0.47 per diluted common limited partner unit, in the fourth quarter 2016. Distributable cash flow was $21.9 million in the fourth quarter 2017, compared to $20.5 million in the prior-year period.  

For the fourth quarter 2017, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $31.2 million compared to $24.4 million in the prior-year period. The combination of a higher gross margin per barrel in west Texas, improved performance from the Paline Pipeline and the east Texas marketing agreement were the primary factors in the year-over-year increase.

For 2017, net income attributable to all partners was $69.4 million, or $2.09 per diluted common limited partner unit. This compares to net income attributable to all partners of $62.8 million, or $2.07 per diluted common limited partner unit for 2016. Net cash from operations was $87.7 million and distributable cash flow was $85.0 million in 2017 compared to net cash from operations of $100.7 million and distributable cash flow of $83.1 million in 2016. EBITDA was $115.0 million in 2017, compared to $97.3 million in 2016.

Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics' general partner, remarked: "Our operations performed well in the fourth quarter resulting in our highest quarterly EBITDA to date.  At December 31, 2017, we had approximately $511 million of capacity on our credit facility and a total leverage ratio of approximately 3.8 times. This financial position supported the 6.6 percent year-over-year increase in our declared fourth quarter distribution. For 2017, our annual distribution declared per limited partner unit was 10.1 percent above 2016."

Yemin concluded, "I am excited about the future growth at Delek Logistics. We expect to close on the drop down of logistics assets from Delek US'Big Spring, Texas refinery in March with an effective date of March 1. These assets are expected to provide approximately $40.0 million of EBITDA on an annualized basis and will be financed with our existing borrowing capacity on the credit facility. Through our new joint venture with Green Plains Partners, we announced an agreement to acquire two third party terminals, which fits with our strategy to grow in our existing market areas. This joint venture should benefit from synergies between complementary assets and be better positioned to support Delek US'Tyler, Texas and El Dorado, Arkansas refineries and third party customers. The expansion of the Paline Pipeline capacity to 42,000 barrels per day is expected to be completed in early March and this should provide incremental growth from this asset as crude oil differentials support future shipments on this pipeline. We anticipate that the financial flexibility provided by our balance sheet and our focus on growth initiatives should support a distribution per limited partner unit increase of at least 10% annually through 2019."

Big Spring Logistics Asset Dropdown
On February 26, 2018, a definitive agreement was entered into with Delek US to acquire the Big Spring logistics assets, subject to customary closing conditions. These assets consist of storage tanks, terminals and a new marketing agreement associated with Delek US'Big Spring, Texas refinery. The expected annual EBITDA is $40.2 million and the purchase price is $315.0 million, which equates to a 7.8x EBITDA multiple. This dropdown will be financed through a combination of cash on hand and borrowings on the revolving credit facility.

This acquisition consists of the following assets and agreements:

          Storage tanks and salt wells - Approximately 2.9 million barrels of aggregate shell capacity, consisting of 62 tanks, 4 salt wells and ancillary assets, including piping and pumps located at the refinery and at Duncan, Oklahoma.

Products terminals - An asphalt terminal that operated at 3,900 barrels per day during the second half of 2017 and a light products terminal with 54,000 barrels per day throughput capacity, which operated at 28,000 barrels per day during the second half of 2017.

Marketing agreement - As part of this transaction, Delek US will enter into a new wholesale marketing agreement whereby Delek Logistics will provide services necessary to market various refinery products produced at the Big Spring refinery. During the second half of 2017, total sales volume for products to be covered by this agreement was approximately 74,700 barrels per day.
   

In connection with the closing of the transaction, Delek US, Delek Logistics and various of their subsidiaries would enter into various long-term agreements for these assets. The transaction and related agreements were approved by the Conflicts Committee of Delek Logistics’ general partner, which is comprised solely of independent directors. The Conflicts Committee engaged Duff & Phelps to act as its financial advisor and Orrick, Herrington & Sutcliffe LLP to act as its legal counsel.

Joint Venture Formation and Terminal Acquisition
On February 20, 2018, Delek Logistics and Green Plains Partners LP (NASDAQ:GPP) announced the formation of a 50/50 joint venture, DKGP Energy Terminals LLC ("DKGP"). DKGP signed a membership interest purchase agreement to acquire two light products terminals from an affiliate of American Midstream Partners, LP (NYSE:AMID). These light products terminals are located in Caddo Mills, Texas and North Little Rock, Arkansas. The total purchase price for these assets is $138.5 million in cash. Subject to customary closing conditions and regulatory approvals, this transaction is expected to close in the first half of 2018.

If completed, DKGP is expected to consist of the assets purchased from an affiliate of American Midstream and assets contributed by Delek Logistics, with a total value of approximately $162.5 million. Taking into consideration the combination of the assets, synergies and future growth, the joint venture is currently forecasted to generate annualized EBITDA of approximately $19.2 million in 2019. Delek Logistics is expected to contribute to the joint venture its North Little Rock, Arkansas terminal with throughput capacity of 17,100 barrels per day and its Greenville tank farm located in Caddo Mills, Texas with approximately 330,000 barrels of aggregate shell capacity, which together will be valued at $24.0 million, along with $57.25 million in cash. Green Plains Partners will contribute $81.25 million in cash to DKGP. The DKGP board will oversee the newly formed joint venture and will appoint Delek Logistics as the operator with day-to-day operational responsibilities of the four terminals.

Distribution and Liquidity
On January 23, 2018, Delek Logistics declared a quarterly cash distribution for the fourth quarter of $0.725 per limited partner unit, which equates to $2.90 per limited partner unit on an annualized basis. This distribution was paid on February 12, 2018 to unitholders of record on February 2, 2018. This represents a 1.4 percent increase from the third quarter 2017 distribution of $0.715 per limited partner unit, or $2.86 per limited partner unit on an annualized basis, and a 6.6 percent increase over Delek Logistics’ fourth quarter 2016 distribution of $0.680 per limited partner unit, or $2.72 per limited partner unit annualized. For the fourth quarter 2017, the total cash distribution declared to all partners, including IDRs, was approximately $22.8 million. Based on the declared distribution for the fourth quarter 2017, the distributable cash flow coverage ratio for the fourth quarter was 0.96x. For 2017, the annual distributable coverage ratio was 0.97x.

As of December 31, 2017, Delek Logistics had total debt of approximately $422.6 million and cash of $4.7 million. Additional borrowing capacity, subject to certain covenants, under the $700.0 million credit facility was $511.1 million.

Financial Results
Revenue for the fourth quarter 2017 was $151.2 million compared to $124.7 million in the prior year period. The increase in revenue is primarily due to higher sales prices in the west Texas wholesale business. Total operating expenses were $12.3 million in the fourth quarter 2017, compared to $8.8 million in the fourth quarter 2016. This increase was primarily due to outside services, maintenance, variable expenses and employee expenses.  Total segment contribution margin was $32.8 million in the fourth quarter 2017 compared to $27.2 million in the fourth quarter 2016. General and administrative expenses were $3.6 million for the fourth quarter 2017, compared to $2.3 million in the prior year period primarily due to professional services and employee expenses.

Pipelines and Transportation Segment
Contribution margin in the fourth quarter 2017 was $18.7 million compared to $16.8 million in the fourth quarter 2016. This change was primarily due to improved performance on the Paline Pipeline and Lion Pipeline system, partially offset by lower volume on the SALA system.  During the fourth quarter 2017, the Paline Pipeline was a FERC regulated pipeline with a tariff established for potential shippers, compared to the prior year period when 10,000 barrels per day of the pipeline capacity was under contract with a third-party for a monthly fee. Operating expenses were $8.6 million in the fourth quarter 2017 compared to $6.9 million in the prior year period primarily due to outside services and variable costs.

Wholesale Marketing and Terminalling Segment
During the fourth quarter 2017, contribution margin was $14.0 million, compared to $10.3 million in the fourth quarter 2016. This increase was primarily due to improved performance in the west Texas wholesale operations and east Texas marketing agreement on a year-over-year basis. Operating expenses increased to $3.7 million in the fourth quarter 2017, compared to $1.8 million in the prior year period primarily due to outside services.

In the west Texas wholesale business, average throughput in the fourth quarter 2017 was 14,322 barrels per day compared to 13,906 barrels per day in the fourth quarter 2016. The wholesale gross margin in west Texas increased year-over-year to $5.18 per barrel and included approximately $1.7 million, or $1.26 per barrel, from renewable identification numbers (RINs) generated in the quarter.  During the fourth quarter 2016, the wholesale gross margin was $1.96 per barrel and included $1.9 million from RINs, or $1.51 per barrel.  On a year-over-year basis, continued growth in drilling activity in the Permian Basin increased fuel demand and improved the supply/demand balance, which led to improved performance in the west Texas wholesale business.

Average terminalling throughput volume of 130,547 barrels per day during the quarter increased on a year-over-year basis from 119,934 barrels per day in the fourth quarter 2016 primarily due to higher throughput at the Tyler, Texas terminal. During the fourth quarter 2017, average volume under the east Texas marketing agreement with Delek US was 78,810 barrels per day compared to 68,114 barrels per day during the fourth quarter 2016.

Fourth Quarter 2017 Results | Conference Call Information
Delek Logistics will hold a conference call to discuss its fourth quarter 2017 results on Tuesday, February 27, 2018 at 7:30 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. For those who cannot listen to the live broadcast, a telephonic replay will be available through May 27, 2018 by dialing (855) 859-2056, passcode 2677645. 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’ (NYSE:DK) fourth quarter 2017 earnings conference call on Tuesday, February 27, 2018 at 8:30 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 Partners, LP, headquartered in Brentwood, Tennessee, was formed by Delek US Holdings, Inc. (NYSE:DK) to own, operate, acquire and construct crude oil and refined products logistics and marketing assets.

Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains “forward-looking” statements within the meaning of 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 Holdings, thereby subjecting us to Delek US Holdings' 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; an inability of Delek to successfully integrate the businesses of Delek and Alon USA Energy, Inc., to grow as expected and realize the synergies and the other anticipated benefits of its merger with Alon, which became effective as of July 1, 2017, as it relates to our potential future growth opportunities, including dropdowns, and other potential benefits; 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; the ability to close the acquisition of Big Spring logistics assets and the proposed timing and projected results thereof; the ability of the newly formed joint venture with Green Plains Partners LP to acquire additional assets, the amount of such acquisition, and the potential benefits therefrom; the ability to complete the expansion of the Paline Pipeline and the timing for and potential results of such expansion; future distributions and the amounts thereof; a new marketing agreement and the terms and benefits thereof; the availability of borrowing capacity. There can be no assurance that actual results will not differ from those expected by management or described in forward-looking statements of Delek Logistics. Delek Logistics undertakes no obligation to update or revise such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof.

Non-GAAP Disclosures:
EBITDA, distributable cash flow and distributable cash flow coverage ratio are non-U.S. GAAP supplemental financial measures that management and external users of our combined 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 Delek Logistics' unitholders;
     
  • Delek Logistics' ability to incur and service debt and fund capital expenditures; and
     
  • the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

Delek Logistics believes that the presentation of EBITDA, distributable cash flow and distributable cash flow coverage ratio provide useful information to investors in assessing its financial condition, its results of operations and the cash flow its business is generating. EBITDA, distributable cash flow and distributable cash flow coverage ratio should not be considered in isolation or as alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP.  EBITDA, distributable cash flow and distributable cash flow coverage ratio 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 its industry, Delek Logistics' definitions of EBITDA and distributable cash flow may not be comparable to similarly titled measures of other partnerships. Please see the tables below 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.  Also, please see the accompanying table providing the calculation of distributable cash flow coverage ratio.

Delek Logistics Partners, LP
Condensed Consolidated Balance Sheets (Unaudited)
    December 31,   December 31,
    2017   2016
         
    (In thousands)
ASSETS        
Current assets:        
Cash and cash equivalents   $ 4,675     $ 59  
Accounts receivable   23,013     19,202  
Accounts receivable from related parties   1,124     2,834  
Inventory   20,855     8,875  
Other current assets   783     1,071  
Total current assets   50,450     32,041  
Property, plant and equipment:        
Property, plant and equipment   367,179     342,407  
Less: accumulated depreciation   (112,111 )   (91,378 )
Property, plant and equipment, net   255,068     251,029  
Equity method investments   106,465     101,080  
Goodwill   12,203     12,203  
Intangible assets, net   15,917     14,420  
Other non-current assets   3,427     4,774  
Total assets   $ 443,530     $ 415,547  
LIABILITIES AND DEFICIT        
Current liabilities:        
Accounts payable   $ 19,147     $ 10,853  
Excise and other taxes payable   4,700     4,841  
Tank inspection liabilities   902     1,013  
Pipeline release liabilities   1,000     1,097  
Accrued expenses and other current liabilities   6,033     2,925  
Total current liabilities   31,782     20,729  
Non-current liabilities:        
Long-term debt   422,649     392,600  
Asset retirement obligations   4,064     3,772  
Other non-current liabilities   14,260     11,730  
Total non-current liabilities   440,973     408,102  
Total liabilities   472,755     428,831  
Deficit:        
Common unitholders - public; 9,088,587 units issued and outstanding at December 31, 2017 (9,263,415 at December 31, 2016)   174,378     188,013  
Common unitholders - Delek; 15,294,046 units issued and outstanding at December 31, 2017 (15,065,192 at December 31, 2016)   (197,206 )   (195,076 )
General partner - 497,604 units issued and outstanding at December 31, 2017 (496,502 at December 31, 2016)   (6,397 )   (6,221 )
Total deficit   (29,225 )   (13,284 )
Total liabilities and deficit   $ 443,530     $ 415,547  
                 


Delek Logistics Partners, LP
Condensed Consolidated Statements of Income (Unaudited)
    Three Months Ended December 31,   Year Ended December 31,
     
    2017   2016   2017   2016
                 
    (In thousands, except unit and per unit data)
Net sales:                
Affiliate   $ 39,706     $ 37,750     $ 156,280     $ 149,564  
Third-party   111,501     86,930     381,795     298,495  
Net sales   151,207     124,680     538,075     448,059  
Operating costs and expenses:                
Cost of goods sold   106,141     88,777     372,890     302,158  
Operating expenses   12,288     8,753     43,274     37,198  
General and administrative expenses   3,585     2,338     11,840     10,256  
Depreciation and amortization   5,517     5,649     21,914     20,813  
(Gain) on asset disposals   (22 )       (20 )   (16 )
Total operating costs and expenses   127,509     105,517     449,898     370,409  
Operating income   23,698     19,163     88,177     77,650  
Interest expense, net   7,287     3,695     23,944     13,587  
(Income) loss from equity method investments   (1,948 )   435     (4,953 )   1,178  
Other income, net           (1 )    
Income before income tax (benefit) expense   18,359     15,033     69,187     62,885  
Income tax (benefit) expense   (555 )   (279 )   (222 )   81  
Net income attributable to partners   18,914     15,312     69,409     62,804  
Comprehensive income attributable to partners   $ 18,914     $ 15,312     $ 69,409     $ 62,804  
                 
Less: General partner's interest in net income, including incentive distribution rights   5,023     3,890     18,429     12,193  
Limited partners' interest in net income   $ 13,891     $ 11,422     $ 50,980     $ 50,611  
                 
Net income per limited partner unit:                
Common units - (basic)   $ 0.57     $ 0.47     $ 2.09     $ 2.08  
Common units - (diluted)   $ 0.57     $ 0.47     $ 2.09     $ 2.07  
Subordinated units - Delek (basic and diluted)   $     $     $     $ 2.19  
                 
Weighted average limited partner units outstanding:                
Common units - basic   24,366,291     24,310,962     24,348,063     22,490,264  
Common units - diluted   24,382,560     24,366,999     24,376,972     22,558,717  
Subordinated units - Delek (basic and diluted)               1,803,167  
                 
Cash distribution per limited partner unit   $ 0.725     $ 0.680     $ 2.835     $ 2.575  
                                 


Delek Logistics Partners, LP
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
             
      Year Ended December 31,  
      2017   2016  
             
Cash Flow Data          
Operating activities   $ 87,703     $ 100,707    
Investing activities   (30,672 )   (72,692 )  
Financing activities   (52,415 )   (27,956 )  
  Net increase   $ 4,616     $ 59    
                     


Delek Logistics Partners, LP
Reconciliation of  Amounts Reported Under U.S. GAAP
    Three Months Ended December 31,   Year Ended December 31,
($ in thousands)   2017   2016   2017   2016
Reconciliation of net income to EBITDA:                
Net income   $ 18,914     $ 15,312     $ 69,409     $ 62,804  
Add:                
Income tax (benefit) expense   (555 )   (279 )   (222 )   81  
Depreciation and amortization   5,517     5,649     21,914     20,813  
Interest expense, net   7,287     3,695     23,944     13,587  
EBITDA   $ 31,163     $ 24,377     $ 115,045     $ 97,285  
                 
Reconciliation of net cash from operating activities to distributable cash flow:                
Net cash provided by operating activities   $ 9,799     $ 13,946     $ 87,703     $ 100,707  
Changes in assets and liabilities   14,603     7,652     3,462     (14,861 )
Maintenance and regulatory capital expenditures   (4,433 )   (3,569 )   (9,444 )   (5,920 )
Reimbursement from Delek for capital expenditures (1)   1,723     2,403     3,453     3,251  
Accretion of asset retirement obligations   (73 )   (67 )   (292 )   (266 )
Deferred income taxes   269     173     111     173  
Gain on asset disposals   22         20     16  
Distributable Cash Flow   $ 21,910     $ 20,538     $ 85,013     $ 83,100  
                 
  1. In the current year, the reimbursed capital expenditure amounts in the determination of distributable cash flow were revised to reflect the accrual of reimbursed capital expenditures from Delek rather than the cash amounts received for reimbursed capital expenditures during the years ended December 31, 2017 and 2016.  This resulted in an increase to the distributable cash flow of $2.0 million and $1.4 million during the three months and year ended December 31, 2016, respectively. 
Delek Logistics Partners, LP
Distributable Coverage Ratio Calculation
 (In thousands)
    Three Months Ended December 31,   Year Ended December 31,
Distributions to partners of Delek Logistics, LP   2017   2016   2017   2016
Limited partners' distribution on common units   $ 17,677     $ 16,543     $ 69,057     $ 62,582  
General partner's distributions   361     338     1,408     1,278  
General partner's incentive distribution rights   4,739     3,656     17,389     11,159  
Total Distributions to be paid   $ 22,777     $ 20,537     $ 87,854     $ 75,019  
                 
Distributable Cash Flow   $ 21,910     $ 20,538     $ 85,013     $ 83,100  
Distributable cash flow coverage ratio (1)     0.96x       1.00x       0.97x       1.11x  
(1) Distributable cash flow coverage ratio is calculated by dividing distributable cash flow by distributions to be paid in each respective period.        
         


Delek Logistics Partners, LP
Segment Data (unaudited)
     
 (In thousands)   Three Months Ended   Year Ended
    December 31,   December 31,
    2017   2016   2017   2016
Pipelines and Transportation                
Net sales:                
  Affiliate   $ 27,327     $ 26,069     $ 109,298     $ 103,749  
  Third party   4,520     2,684     12,431     18,423  
  Total pipelines and transportation   31,847     28,753     121,729     122,172  
  Operating costs and expenses:                
  Cost of goods sold   4,519     5,024     18,210     19,425  
  Operating expenses   8,579     6,918     33,240     29,235  
  Segment contribution margin   $ 18,749     $ 16,811     $ 70,279     $ 73,512  
Total Assets   $ 349,351     $ 337,349          
                 
Wholesale Marketing and Terminalling                
Net sales:                
  Affiliate   $ 12,379     $ 11,681     $ 46,982     $ 45,815  
  Third party   106,981     84,246     369,364     280,072  
  Total wholesale marketing and terminalling   119,360     95,927     416,346     325,887  
  Operating costs and expenses:                
  Cost of goods sold   101,622     83,753     354,680     282,733  
  Operating expenses   3,709     1,835     10,034     7,963  
  Segment contribution margin   $ 14,029     $ 10,339     $ 51,632     $ 35,191  
Total Assets   $ 94,179     $ 78,198          
                 
Consolidated                
Net sales:                
  Affiliate   $ 39,706     $ 37,750     $ 156,280     $ 149,564  
  Third party   111,501     86,930     381,795     298,495  
  Total consolidated   151,207     124,680     538,075     448,059  
  Operating costs and expenses:                
  Cost of goods sold   106,141     88,777     372,890     302,158  
  Operating expenses   12,288     8,753     43,274     37,198  
  Contribution margin   32,778     27,150     121,911     108,703  
  General and administrative expenses   3,585     2,338     11,840     10,256  
  Depreciation and amortization   5,517     5,649     21,914     20,813  
  (Gain) on asset disposals   (22 )       (20 )   (16 )
  Operating income   $ 23,698     $ 19,163     $ 88,177     $ 77,650  
Total Assets   $ 443,530     $ 415,547          
                         


Delek Logistics Partners, LP
Segment Capital Spending
 (In thousands)
    Three Months Ended December 31,   Year Ended December 31,
Pipelines and Transportation   2017   2016   2017   2016
Maintenance capital spending   $ 4,079     $ 3,758     $ 8,643     $ 7,386  
Discretionary capital spending   3,468     683     5,619     1,092  
Segment capital spending   $ 7,547     $ 4,441     $ 14,262     $ 8,478  
Wholesale Marketing and Terminalling                
Maintenance capital spending   $ 1,693     $ 1,144     $ 2,461     $ 1,317  
Discretionary capital spending   467     1,173     1,680     1,972  
Segment capital spending   $ 2,160     $ 2,317     $ 4,141     $ 3,289  
Consolidated                
Maintenance capital spending   $ 5,772     $ 4,902     $ 11,104     $ 8,703  
Discretionary capital spending   3,935     1,856     7,299     3,064  
Total capital spending   $ 9,707     $ 6,758     $ 18,403     $ 11,767  
                 


Delek Logistics Partners, LP
Segment Data (Unaudited)
         
    Three Months Ended December 31,   Year Ended December 31,
    2017   2016   2017   2016
Pipelines and Transportation Segment:                
Throughputs (average bpd)                
Lion Pipeline System:                
  Crude pipelines (non-gathered)   58,497     58,353     59,362     56,555  
  Refined products pipelines   54,874     52,895     51,927     52,071  
SALA Gathering System   15,013     16,518     15,871     17,756  
East Texas Crude Logistics System   18,078     11,624     15,780     12,735  
El Dorado Rail Offloading Rack                
                 
Wholesale Marketing and Terminalling Segment:                
East Texas - Tyler Refinery sales volumes (average bpd)   78,810     68,114     73,655     68,131  
West Texas marketing throughputs (average bpd)   14,322     13,906     13,817     13,257  
West Texas marketing margin per barrel   $ 5.18     $ 1.96     $ 4.03     $ 1.43  
Terminalling throughputs (average bpd)   130,547     119,934     124,488     122,350  
                         


Big Spring Logistics Drop Down and Marketing Agreement
Reconciliation of Forecasted Annualized EBITDA to Forecasted Net Income
     
($ in thousands)   Tanks, Terminals and Marketing Agreement  
       
Forecasted Net income   $ 20,500    
Add:      
  Income tax expense      
  Depreciation and amortization   5,100    
  Interest expense, net   14,600    
Forecasted EBITDA   $ 40,200    
       


DKGP Energy Terminals LLC
Reconciliation of Forecasted 2019 EBITDA to Forecasted Net Income
($ in thousands)   DKGP Joint Venture (1)
 
       
Forecasted Net income   $ 11,000    
Add:      
  Income tax expense      
  Depreciation and amortization   8,200    
  Interest expense, net      
Forecasted EBITDA   $ 19,200    
       
  1. This amount represents the forecasted 2019 performance for the total joint venture. Each partner will record performance based on their respective percentage ownership in the joint venture.

Investor / Media Relations Contact:
Keith Johnson
Vice President of Investor Relations                       
615-435-1366

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Source: Delek Logistics Partners, LP