For the first quarter 2013,
Distribution Update
Management of the general partner of
Financial Results
Revenues for the first quarter 2013 were
The Pipeline and Transportation segment's performance during this period primarily benefited from throughput of 22,130 barrels per day in the SALA Gathering System, which exceeded the forecast provided in the Prospectus.
Total operating expenses of
As of
About
- Pipelines and Transportation: Approximately 200 miles of transportation pipelines and a 600 mile crude oil gathering system, in addition to associated storage facilities with 1.7 million barrels of active shell capacity supporting
Delek US' El Dorado and Tyler refineries. Additionally, this segment includes the Paline pipeline, a 185 mile crude oil pipeline fromLongview toNederland, Texas . - Wholesale Marketing and Terminalling: Includes a wholesale marketing business in
Texas and light product terminals, located inAbilene ,Big Sandy andSan Angelo, Texas , and inNashville andMemphis, Tennessee .
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
Factors Affecting Comparability:
The following tables present financial and operational information for the three months ended
Non-GAAP Disclosures:
EBITDA and Distributable Cash Flow.
EBITDA and distributable cash flow 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:
- our 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;
- our 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 Partners, LP | |||||||||
Reconciliation of Amounts Reported Under U.S. GAAP | |||||||||
Three Months Ended |
Three Months Ended |
||||||||
($ in thousands) | March 31, 2013 | March 31, 2012 | |||||||
Predecessor | |||||||||
Reconciliation of EBITDA to net income: | |||||||||
Net income | $ | 12,204 |
$ |
2,511 |
|||||
Add: | |||||||||
Income tax (benefit) expense | 122 |
|
1,920 |
||||||
Depreciation and amortization | 2,352 |
|
2,134 |
||||||
Interest Expense, net | 817 |
|
488 |
||||||
EBITDA | $ | 15,495 | $ | 7,053 | |||||
Reconciliation of EBITDA to net cash from operating activities: | |||||||||
Net cash provided by (used in) operating activities | $ | 1,980 | $ | 6,537 | |||||
Less: Amortization of unfavorable contract liability to revenue | 667 |
|
— |
||||||
Amortization of deferred financing costs | (299 | ) |
|
(47 |
) | ||||
Accretion of asset retirement obligations | (35 | ) |
|
(25 |
) | ||||
Deferred taxes | 1 |
|
(1,734 |
) | |||||
Loss on asset disposals | — |
|
(5 |
) | |||||
Stock-based compensation expense | — |
|
(16 |
) | |||||
Changes in assets and liabilities | 12,242 |
|
(65 |
) | |||||
Income taxes | 122 |
|
1,920 |
||||||
Interest expense, net | 817 |
|
488 |
||||||
EBITDA | $ | 15,495 | $ | 7,053 | |||||
Reconciliation of distributable cash flow to EBITDA: | |||||||||
EBITDA | $ | 15,495 | |||||||
Less: Cash interest, net | 518 | ||||||||
Less: Maintenance and Regulatory capital expenditures | 933 | ||||||||
Less: Capital improvement expenditures | 343 | ||||||||
Add: Reimbursement from Delek for capital expenditures | 310 | ||||||||
Less: Income tax expense | 122 | ||||||||
Less: Amortization of unfavorable contract liability | 667 | ||||||||
Distributable cash flow | $ | 13,222 |
Delek Logistics Partners, LP | |||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | |||||||||||
March 31, | December 31, | ||||||||||
2013 | 2012 | ||||||||||
(In thousands) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 18,980 | $ | 23,452 | |||||||
Accounts receivable | 37,886 | 27,725 | |||||||||
Inventory | 24,499 | 14,351 | |||||||||
Deferred tax assets | 14 | 14 | |||||||||
Other current assets | 362 | 169 | |||||||||
Total current assets | 81,741 |
65,711 |
|||||||||
Property, plant and equipment: | |||||||||||
Property, plant and equipment | 173,576 | 172,300 | |||||||||
Less: accumulated depreciation | (20,841 | ) | (18,790 | ) | |||||||
Property, plant and equipment, net | 152,735 | 153,510 | |||||||||
Goodwill | 10,454 | 10,454 | |||||||||
Intangible assets, net | 12,178 | 12,430 | |||||||||
Other non-current assets | 3,698 | 3,664 | |||||||||
Total assets | $ | 260,806 | $ | 245,769 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 33,377 | $ | 21,849 | |||||||
Accounts payable to related parties | 2,148 | 10,148 | |||||||||
Current portion of revolving credit facility | — | — | |||||||||
Fuel and other taxes payable | 5,577 | 4,650 | |||||||||
Accrued expenses and other current liabilities | 7,865 | 3,615 | |||||||||
Total current liabilities | 48,967 | 40,262 | |||||||||
Non-current liabilities: | |||||||||||
Revolving credit facility | 90,000 | 90,000 | |||||||||
Asset retirement obligations | 1,475 | 1,440 | |||||||||
Deferred tax liabilities | 13 | 17 | |||||||||
Other non-current liabilities | 9,208 | 9,625 | |||||||||
Total non-current liabilities | 100,696 | 101,082 | |||||||||
Equity: | |||||||||||
Predecessor division equity | — | — | |||||||||
Common unitholders - public (9,200,000 units issued and outstanding at March 31, 2013 and December 31, 2012, respectively) | 181,253 | 178,728 | |||||||||
Common unitholders - Delek (2,799,258 units issued and outstanding at March 31, 2013 and December 31, 2012, respectively) | (126,361 | ) | (127,129 | ) | |||||||
Subordinated unitholders - Delek (11,999,258 units issued and outstanding at March 31, 2013 and December 31, 2012, respectively) | 56,165 | 52,875 | |||||||||
General Partner unitholders - Delek (489,766 units issued and outstanding at March 31, 2013 and December 31, 2012, respectively) |
86 | (49 | ) | ||||||||
Total equity | 111,143 | 104,425 | |||||||||
Total liabilities and equity | $ | 260,806 | $ | 245,769 |
Delek Logistics Partners, LP | ||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2012 | |||||||
Predecessor | ||||||||
(In thousands, except unit and per unit data) | ||||||||
Net sales | $ | 210,894 | $ | 239,084 | ||||
Operating costs and expenses: | ||||||||
Cost of goods sold | 187,860 | 225,409 | ||||||
Operating expenses | 5,862 | 4,210 | ||||||
General and administrative expenses | 1,677 | 2,407 | ||||||
Depreciation and amortization | 2,352 | 2,134 | ||||||
Loss (gain) on sale of assets | — | 5 | ||||||
Total operating costs and expenses | 197,751 | 234,165 | ||||||
Operating income | 13,143 | 4,919 | ||||||
Interest expense, net | 817 | 488 | ||||||
Net income before income tax (benefit) expense | 12,326 | 4,431 | ||||||
Income tax expense | 122 | 1,920 | ||||||
Net income | $ | 12,204 | $ | 2,511 | ||||
Less: General partner's interest in net income (2%) | 244 | |||||||
Limited partners' interest in net income | $ | 11,960 | ||||||
Net income per limited partner unit: | ||||||||
Common units - (basic and diluted) | $ | 0.50 | ||||||
Subordinated units - Delek (basic and diluted) | $ | 0.50 | ||||||
Weighted average limited partner units outstanding: | ||||||||
Common units - basic | 11,999,258 | |||||||
Common units - diluted | 12,092,922 | |||||||
Subordinated units - Delek (basic and diluted) | 11,999,258 |
Delek Logistics Partners, LP | |||||||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||||||||
(In thousands) | |||||||||||||
Three Months Ended
March 31, |
|||||||||||||
2013 | 2012 | ||||||||||||
Predecessor | |||||||||||||
Cash Flow Data | |||||||||||||
Cash flows provided (used in) by operating activities: | $ | 1,980 | $ | 6,537 | |||||||||
Cash flows used in investing activities: | (1,276 | ) | (24,285 | ) | |||||||||
Cash flows provided by financing activities: | (5,176 | ) | 17,740 | ||||||||||
Net increase in cash and cash equivalents | $ | (4,472 | ) | $ | (8 | ) |
Delek Logistics Partners, LP | ||||||||||||||
Segment Data (Unaudited) | ||||||||||||||
(In thousands) | ||||||||||||||
Three Months Ended March 31, 2013 | ||||||||||||||
Pipelines & Transportation |
Wholesale Marketing & Terminalling |
Consolidated | ||||||||||||
Net sales | $ | 13,537 | $ | 197,357 | $ | 210,894 | ||||||||
Operating costs and expenses: | ||||||||||||||
Cost of goods sold | — |
|
187,860 |
187,860 | ||||||||||
Operating expenses | 4,621 |
|
1,241 |
5,862 | ||||||||||
Segment contribution margin | $ | 8,916 | $ | 8,256 | 17,172 | |||||||||
General and administrative expenses | 1,677 | |||||||||||||
Depreciation and amortization | 2,352 | |||||||||||||
Loss on disposal of assets | — | |||||||||||||
Operating income | $ | 13,143 | ||||||||||||
Total assets | $ | 163,047 | $ | 97,759 | $ | 260,806 | ||||||||
Capital spending | ||||||||||||||
Maintenance capital spending | $ | 790 | $ | 143 | $ | 933 | ||||||||
Expansion capital spending | 338 |
|
5 |
343 | ||||||||||
Total capital spending | $ | 1,128 | $ | 148 | $ | 1,276 | ||||||||
Three Months Ended March 31, 2012
Predecessor |
||||||||||||||
Pipelines & Transportation |
Wholesale Marketing & Terminalling |
Consolidated | ||||||||||||
Net sales | $ | 6,680 |
$ |
232,404 |
$ | 239,084 | ||||||||
Operating costs and expenses: | ||||||||||||||
Cost of goods sold | — |
|
225,409 |
225,409 | ||||||||||
Operating expenses | 3,278 |
|
932 |
4,210 | ||||||||||
Segment contribution margin | $ | 3,402 | $ | 6,063 | 9,465 | |||||||||
General and administrative expenses | 2,407 | |||||||||||||
Depreciation and amortization | 2,134 | |||||||||||||
Loss on disposal of assets | 5 | |||||||||||||
Operating income | $ | 4,919 | ||||||||||||
Total assets | $ | 110,632 | $ | 119,248 | $ | 229,880 | ||||||||
Capital spending | ||||||||||||||
Maintenance capital spending | $ | — | $ |
475 |
$ | 475 | ||||||||
Expansion capital spending | $ | 376 | $ | 162 | $ | 538 | ||||||||
Total capital spending | $ | 376 | $ | 637 | $ | 1,013 |
Delek Logistics Partners, LP | ||||||||
Segment Data (Unaudited) | ||||||||
Three Months Ended
March 31, |
||||||||
2013 | 2012 | |||||||
Predecessor | ||||||||
Throughputs (average bpd) | ||||||||
Pipelines and Transportation Segment: | ||||||||
Lion Pipeline System: | ||||||||
Crude pipelines (non-gathered) | 45,018 | 52,969 | ||||||
Refined products pipelines to Enterprise Systems | 43,359 | 46,823 | ||||||
SALA Gathering System | 22,130 | 19,710 | ||||||
East Texas Crude Logistics System | 51,147 | 50,388 | ||||||
Wholesale Marketing and Terminalling Segment: | ||||||||
East Texas - Tyler Refinery sales volumes (average bpd) | 53,086 | 53,528 | ||||||
West Texas marketing throughputs (average bpd) | 16,555 | 15,383 | ||||||
West Texas marketing margin per barrel | $ | 3.69 | $ | 2.24 | ||||
Bulk Biofuels | — | 4,210 | ||||||
Terminalling throughputs (average bpd) | 13,836 | 18,059 |
Source:
Delek Logistics Partners, LP
U.S. Investor / Media Relations Contact:
Keith Johnson, 615-435-1366
Vice President of Investor Relations
or
Alpha IR Group
Chris Hodges, 312-445-2870
Founder & CEO