For the second quarter 2013,
Distribution Update
On
Financial Results
Revenues for the second quarter 2013 were
Results from the Wholesale Marketing and Terminalling segment were better than previously forecast in the Prospectus primarily due to higher volumes and the ongoing benefit of ethanol blending activities. During the second quarter, volume under the East Texas Marketing Agreement of 64,973 barrels per day and volume of 19,082 barrels per day in west
The Pipeline and Transportation segment's performance during this period primarily benefited from throughput of 22,661 barrels per day in the SALA Gathering System, which exceeded the forecast provided in the Prospectus. As expected the East Texas Crude Logistics System, which supports
As of
Recent Acquisitions
On
On
About
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 and six 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
June 30, |
Six Months Ended
June 30, |
||||||||||||||||
($ in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Predecessor | Predecessor | ||||||||||||||||
Reconciliation of EBITDA to net income: | |||||||||||||||||
Net income | $ | 11,755 | $ | 2,487 | $ | 23,960 | $ | 4,997 | |||||||||
Add: | |||||||||||||||||
Income taxes | 118 | 826 | 240 | 2,746 | |||||||||||||
Depreciation and amortization | 2,372 | 2,260 | 4,724 | 4,394 | |||||||||||||
Interest expense, net | 752 | 622 | 1,569 | 1,110 | |||||||||||||
EBITDA | $ | 14,997 | $ | 6,195 | $ | 30,493 | $ | 13,247 | |||||||||
Reconciliation of EBITDA to net cash provided by (used in) operating activities: | |||||||||||||||||
Net cash provided by (used in) operating activities | $ | 18,652 | $ | (3,087 | ) | $ | 20,633 | $ | 3,449 | ||||||||
Amortization of unfavorable contract liability to revenue | 667 | — | 1,334 | — | |||||||||||||
Amortization of deferred financing costs | (186 | ) | (47 | ) | (374 | ) | (94 | ) | |||||||||
Accretion of asset retirement obligations | (63 | ) | (28 | ) | (98 | ) | (53 | ) | |||||||||
Deferred taxes | 16 | 1,742 | 17 | 8 | |||||||||||||
Loss on asset disposals | — | 5 | — | — | |||||||||||||
Stock-based compensation expense | (112 | ) | (37 | ) | (112 | ) | (53 | ) | |||||||||
Changes in assets and liabilities | (4,847 | ) | 6,199 | 7,284 | 6,134 | ||||||||||||
Income taxes | 118 | 826 | 240 | 2,746 | |||||||||||||
Interest expense, net | 752 | 622 | 1,569 | 1,110 | |||||||||||||
EBITDA | $ | 14,997 | $ | 6,195 | $ | 30,493 | $ | 13,247 | |||||||||
Reconciliation of distributable cash flow to EBITDA: | |||||||||||||||||
EBITDA | $ | 14,997 | $ | 30,493 | |||||||||||||
Less: Cash interest, net | 566 | 1,195 | |||||||||||||||
Less: Maintenance and Regulatory capital expenditures | 859 | 1,792 | |||||||||||||||
Less: Capital improvement expenditures | 194 | 537 | |||||||||||||||
Add: Reimbursement from Delek for capital expenditures | 153 | 463 | |||||||||||||||
Less: Income tax expense | 118 | 240 | |||||||||||||||
Add: Non-cash unit based compensation expense | 107 | 107 | |||||||||||||||
Less: Amortization of deferred revenue | 77 | 77 | |||||||||||||||
Less: Amortization of unfavorable contract liability | 667 | 1,334 | |||||||||||||||
Distributable cash flow | $ | 12,776 | $ | 25,888 |
Delek Logistics Partners, LP | |||||||||
Condensed Consolidated Balance Sheets | |||||||||
June 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
(Unaudited) | |||||||||
(In thousands) | |||||||||
ASSETS | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 27,303 | $ | 23,452 | |||||
Accounts receivable | 38,009 | 27,725 | |||||||
Inventory | 15,574 | 14,351 | |||||||
Deferred tax assets | 14 | 14 | |||||||
Other current assets | 283 | 169 | |||||||
Total current assets | 81,183 | 65,711 | |||||||
Property, plant and equipment: | |||||||||
Property, plant and equipment | 174,629 | 172,300 | |||||||
Less: accumulated depreciation | (22,947 | ) | (18,790 | ) | |||||
Property, plant and equipment, net | 151,682 | 153,510 | |||||||
Goodwill | 10,454 | 10,454 | |||||||
Intangible assets, net | 11,913 | 12,430 | |||||||
Other non-current assets | 3,590 | 3,664 | |||||||
Total assets | $ | 258,822 | $ | 245,769 | |||||
LIABILITIES AND EQUITY | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 31,691 | $ | 21,849 | |||||
Accounts payable to related parties | 2,159 | 10,148 | |||||||
Fuel and other taxes payable | 5,989 | 4,650 | |||||||
Accrued expenses and other current liabilities | 5,323 | 3,615 | |||||||
Total current liabilities | 45,162 | 40,262 | |||||||
Non-current liabilities: | |||||||||
Revolving credit facility | 90,000 | 90,000 | |||||||
Asset retirement obligations | 1,504 | 1,440 | |||||||
Deferred tax liability | — | 17 | |||||||
Other non-current liabilities | 8,574 | 9,625 | |||||||
Total non-current liabilities | 100,078 | 101,082 | |||||||
Equity: | |||||||||
Common unitholders - public; 9,237,563 units issued and outstanding at June 30, 2013 (9,200,000 in 2012) | 183,051 | 178,728 | |||||||
Common unitholders - Delek; 2,799,258 units issued and outstanding at June 30, 2013 (2,799,258 in 2012) | (126,095 | ) | (127,129 | ) | |||||
Subordinated unitholders - Delek; 11,999,258 units issued and outstanding at June 30, 2013 (11,999,258 in 2012) | 57,306 | 52,875 | |||||||
General Partner unitholders - Delek; 489,766 units issued and outstanding at June 30, 2013 (489,766 in 2012) | (680 | ) | (49 | ) | |||||
Total equity | 113,582 | 104,425 | |||||||
Total liabilities and equity | $ | 258,822 | $ | 245,769 |
Delek Logistics Partners, LP | |||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | |||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Predecessor | Predecessor | ||||||||||||||||
(In thousands, except unit and per unit data) | |||||||||||||||||
Net sales | $ | 230,141 | $ | 262,480 | $ | 441,036 | $ | 501,563 | |||||||||
Operating costs and expenses: | |||||||||||||||||
Cost of goods sold | 207,966 | 249,060 | 395,826 | 474,469 | |||||||||||||
Operating expenses | 6,067 | 4,884 | 11,929 | 9,094 | |||||||||||||
General and administrative expenses | 1,111 | 2,346 | 2,788 | 4,753 | |||||||||||||
Depreciation and amortization | 2,372 | 2,260 | 4,724 | 4,394 | |||||||||||||
Gain on sale of assets | — | (5 | ) | — | — | ||||||||||||
Total operating costs and expenses | 217,516 | 258,545 | 415,267 | 492,710 | |||||||||||||
Operating income | 12,625 | 3,935 | 25,769 | 8,853 | |||||||||||||
Interest expense, net | 752 | 622 | 1,569 | 1,110 | |||||||||||||
Income before income tax expense | 11,873 | 3,313 | 24,200 | 7,743 | |||||||||||||
Income tax expense | 118 | 826 | 240 | 2,746 | |||||||||||||
Net income | $ | 11,755 | $ | 2,487 | $ | 23,960 | $ | 4,997 | |||||||||
Less: General partner's interest in net income (2%) | 235 | 479 | |||||||||||||||
Limited partners' interest in net income | $ | 11,520 | $ | 23,481 | |||||||||||||
Net income per limited partner unit: | |||||||||||||||||
Common units - (basic) | $ | 0.48 | $ | 0.98 | |||||||||||||
Common units - (diluted) | $ | 0.47 | $ | 0.97 | |||||||||||||
Subordinated units - Delek (basic and diluted) | $ | 0.48 | $ | 0.98 | |||||||||||||
Weighted average limited partner units outstanding: | |||||||||||||||||
Common units - basic | 12,006,843 | 12,003,071 | |||||||||||||||
Common units - diluted | 12,159,084 | 12,128,764 | |||||||||||||||
Subordinated units - Delek (basic and diluted) | 11,999,258 | 11,999,258 | |||||||||||||||
Cash distribution per unit | $ | 0.395 | $ | 0.780 |
Delek Logistics Partners, LP | |||||||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||||||||
(In thousands) | |||||||||||||
Six Months Ended
June 30, |
|||||||||||||
2013 | 2012 | ||||||||||||
Predecessor | |||||||||||||
Cash Flow Data | |||||||||||||
Cash flows provided by operating activities: | $ | 20,633 | $ | 3,449 | |||||||||
Cash flows used in investing activities: | (2,329 | ) | (25,473 | ) | |||||||||
Cash flows (used in) provided by financing activities: | (14,452 | ) | 22,674 | ||||||||||
Net increase in cash and cash equivalents | $ | 3,852 | $ | 650 |
Delek Logistics Partners, LP | |||||||||||||
Segment Data (Unaudited) | |||||||||||||
(In thousands) | |||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||
Pipelines & Transportation |
Wholesale Marketing & Terminalling |
Consolidated | |||||||||||
Net sales | $ | 13,666 | $ | 216,475 | $ | 230,141 | |||||||
Operating costs and expenses: | |||||||||||||
Cost of goods sold | — | 207,966 | 207,966 | ||||||||||
Operating expenses | 4,727 | 1,340 | 6,067 | ||||||||||
Segment contribution margin | $ | 8,939 | $ | 7,169 | 16,108 | ||||||||
General and administrative expenses | 1,111 | ||||||||||||
Depreciation and amortization | 2,372 | ||||||||||||
Gain on disposal of assets | — | ||||||||||||
Operating income | $ | 12,625 | |||||||||||
Total assets | $ | 156,842 | $ | 101,980 | $ | 258,822 | |||||||
Capital spending | |||||||||||||
Maintenance capital spending | $ | 184 | $ | 675 | $ | 859 | |||||||
Expansion capital spending | 181 | 13 | 194 | ||||||||||
Total capital spending | $ | 365 | $ | 688 | $ | 1,053 | |||||||
Three Months Ended June 30, 2012
Predecessor |
|||||||||||||
Pipelines & Transportation |
Wholesale Marketing & Terminalling |
Consolidated | |||||||||||
Net sales | $ | 6,801 | $ | 255,679 | $ | 262,480 | |||||||
Operating costs and expenses: | |||||||||||||
Cost of goods sold | — | 249,060 | 249,060 | ||||||||||
Operating expenses | 3,815 | 1,069 | 4,884 | ||||||||||
Segment contribution margin | $ | 2,986 | $ | 5,550 | 8,536 | ||||||||
General and administrative expenses | 2,346 | ||||||||||||
Depreciation and amortization | 2,260 | ||||||||||||
Gain on disposal of assets | (5 | ) | |||||||||||
Operating income | $ | 3,935 | |||||||||||
Total assets | $ | 111,214 | $ | 125,592 | $ | 236,806 | |||||||
Capital spending | |||||||||||||
Maintenance capital spending | $ | 160 | $ | 412 | $ | 572 | |||||||
Expansion capital spending | 555 | 63 | 618 | ||||||||||
Total capital spending | $ | 715 | $ | 475 | $ | 1,190 |
Delek Logistics Partners, LP | ||||||||||||
Segment Data (Unaudited) | ||||||||||||
(In thousands) | ||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||
Pipelines & Transportation |
Wholesale Marketing & Terminalling |
Consolidated | ||||||||||
Net sales | $ | 27,265 | $ | 413,771 | $ | 441,036 | ||||||
Operating costs and expenses: | ||||||||||||
Cost of goods sold | — | 395,826 | 395,826 | |||||||||
Operating expenses | 9,348 | 2,581 | 11,929 | |||||||||
Segment contribution margin | $ | 17,917 | $ | 15,364 | 33,281 | |||||||
General and administrative expenses | 2,788 | |||||||||||
Depreciation and amortization | 4,724 | |||||||||||
Gain on disposal of assets | — | |||||||||||
Operating income | $ | 25,769 | ||||||||||
Total assets | $ | 156,842 | $ | 101,980 | $ | 258,822 | ||||||
Capital spending | ||||||||||||
Maintenance capital spending | $ | 974 | $ | 818 | $ | 1,792 | ||||||
Expansion capital spending | 519 | 18 | 537 | |||||||||
Total capital spending | $ | 1,493 | $ | 836 | $ | 2,329 | ||||||
Six Months Ended June 30, 2012
Predecessor |
||||||||||||
Pipelines & Transportation |
Wholesale Marketing & Terminalling |
Consolidated | ||||||||||
Net sales | $ | 13,480 | $ | 488,083 | $ | 501,563 | ||||||
Operating costs and expenses: | ||||||||||||
Cost of goods sold | — | 474,469 | 474,469 | |||||||||
Operating expenses | 7,093 | 2,001 | 9,094 | |||||||||
Segment contribution margin | $ | 6,387 | $ | 11,613 | 18,000 | |||||||
General and administrative expenses | 4,753 | |||||||||||
Depreciation and amortization | 4,394 | |||||||||||
Gain on disposal of assets | — | |||||||||||
Operating income | $ | 8,853 | ||||||||||
Total assets | $ | 111,214 | $ | 125,592 | $ | 236,806 | ||||||
Capital spending | ||||||||||||
Maintenance capital spending | $ | 160 | $ | 887 | $ | 1,047 | ||||||
Expansion capital spending | 931 | 225 | $ | 1,156 | ||||||||
Total capital spending | $ | 1,091 | $ | 1,112 | $ | 2,203 |
Delek Logistics Partners, LP | ||||||||||||||||
Segment Data (Unaudited) | ||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Predecessor | Predecessor | |||||||||||||||
Throughputs (average bpd) | ||||||||||||||||
Pipelines and Transportation Segment: | ||||||||||||||||
Lion Pipeline System: | ||||||||||||||||
Crude pipelines (non-gathered) | 49,270 | 43,533 | 47,155 | 48,251 | ||||||||||||
Refined products pipelines to Enterprise Systems | 47,315 | 43,817 | 45,348 | 45,320 | ||||||||||||
SALA Gathering System | 22,661 | 20,764 | 22,396 | 20,237 | ||||||||||||
East Texas Crude Logistics System | 11,468 | 53,402 | 31,198 | 51,895 | ||||||||||||
Wholesale Marketing and Terminalling Segment: | ||||||||||||||||
East Texas - Tyler Refinery sales volumes (average bpd) | 64,973 | 55,358 | 59,062 | 54,443 | ||||||||||||
West Texas marketing throughputs (average bpd) | 19,082 | 16,670 | 17,820 | 16,026 | ||||||||||||
West Texas marketing margin per barrel | $ | 2.20 | $ | 1.52 | $ | 2.82 | $ | 1.85 | ||||||||
Bulk Biofuels | — | 6,039 | — | 5,124 | ||||||||||||
Terminalling throughputs (average bpd) | 13,961 | 15,552 | 13,898 | 16,806 |
Source:
U.S. Investor / Media Relations Contact
Delek Logistics Partners, LP
Keith Johnson, 615-435-1366
Vice President of Investor Relations
or
Alpha IR Group
Chris Hodges, 312-445-2870
Founder & CEO