For the second quarter 2017, earnings before interest, taxes, depreciation and amortization ("EBITDA") was
Yemin concluded, "We experienced sequential improvement in our west
Distribution and Liquidity
On
As of June 30, 2017,
Financial Results
Revenue for the second quarter 2017 was
Pipelines and Transportation Segment
The contribution margin in the second quarter 2017 was
Wholesale Marketing and Terminalling Segment
During the second quarter 2017, contribution margin was
In the west
Average terminalling throughput volume of 128,111 barrels per day during the quarter increased on a year-over-year basis from 126,476 barrels per day in the second quarter 2016 primarily due to higher throughput at the
Second Quarter 2017 Results | Conference Call Information
Investors may also wish to listen to Delek US’ (NYSE: DK) second quarter 2017 earnings conference call 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
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 Partners, LP | ||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
June 30, | December 31, | |||||||
2017 | 2016 | |||||||
(In thousands) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 4,899 | $ | 59 | ||||
Accounts receivable | 18,270 | 19,202 | ||||||
Accounts receivable from related parties | 4,158 | 2,834 | ||||||
Inventory | 6,522 | 8,875 | ||||||
Other current assets | 1,388 | 1,071 | ||||||
Total current assets | 35,237 | 32,041 | ||||||
Property, plant and equipment: | ||||||||
Property, plant and equipment | 347,303 | 342,407 | ||||||
Less: accumulated depreciation | (101,684 | ) | (91,378 | ) | ||||
Property, plant and equipment, net | 245,619 | 251,029 | ||||||
Equity method investments | 104,659 | 101,080 | ||||||
Goodwill | 12,203 | 12,203 | ||||||
Intangible assets, net | 13,888 | 14,420 | ||||||
Other non-current assets | 3,926 | 4,774 | ||||||
Total assets | $ | 415,532 | $ | 415,547 | ||||
LIABILITIES AND DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 10,176 | $ | 10,853 | ||||
Excise and other taxes payable | 4,714 | 4,841 | ||||||
Tank inspection liabilities | 939 | 1,013 | ||||||
Pipeline release liabilities | 1,072 | 1,097 | ||||||
Accrued expenses and other current liabilities | 4,350 | 2,925 | ||||||
Total current liabilities | 21,251 | 20,729 | ||||||
Non-current liabilities: | ||||||||
Long-term debt | 396,897 | 392,600 | ||||||
Asset retirement obligations | 3,918 | 3,772 | ||||||
Other non-current liabilities | 14,545 | 11,730 | ||||||
Total non-current liabilities | 415,360 | 408,102 | ||||||
Total liabilities | 436,611 | 428,831 | ||||||
Deficit: | ||||||||
Common unitholders - public; 9,067,411 units issued and outstanding at June 30, 2017 (9,263,415 at December 31, 2016) |
177,532 | 188,013 | ||||||
Common unitholders - Delek; 15,294,046 units issued and outstanding at June 30, 2017 (15,065,192 at December 31, 2016) |
(192,348 | ) | (195,076 | ) | ||||
General partner - 497,172 units issued and outstanding at June 30, 2017 (496,502 at December 31, 2016) |
(6,263 | ) | (6,221 | ) | ||||
Total deficit | (21,079 | ) | (13,284 | ) | ||||
Total liabilities and deficit | $ | 415,532 | $ | 415,547 |
Delek Logistics Partners, LP | ||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | ||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(In thousands, except unit and per unit data) | ||||||||||||||||
Net sales: | ||||||||||||||||
Affiliate | $ | 39,824 | $ | 36,694 | $ | 76,443 | $ | 75,454 | ||||||||
Third-party | 86,945 | 75,159 | 179,799 | 140,455 | ||||||||||||
Net sales | 126,769 | 111,853 | 256,242 | 215,909 | ||||||||||||
Operating costs and expenses: | ||||||||||||||||
Cost of goods sold | 85,039 | 73,101 | 177,629 | 139,854 | ||||||||||||
Operating expenses | 9,966 | 8,730 | 20,324 | 19,194 | ||||||||||||
General and administrative expenses | 2,656 | 2,698 | 5,504 | 5,611 | ||||||||||||
Depreciation and amortization | 5,742 | 4,812 | 10,935 | 9,808 | ||||||||||||
(Gain) loss on asset disposals | (5 | ) | — | 7 | (44 | ) | ||||||||||
Total operating costs and expenses | 103,398 | 89,341 | 214,399 | 174,423 | ||||||||||||
Operating income | 23,371 | 22,512 | 41,843 | 41,486 | ||||||||||||
Interest expense, net | 5,462 | 3,284 | 9,533 | 6,483 | ||||||||||||
(Income) loss from equity method investments | (1,176 | ) | 206 | (1,421 | ) | 435 | ||||||||||
Income before income tax expense | 19,085 | 19,022 | 33,731 | 34,568 | ||||||||||||
Income tax expense | 108 | 129 | 159 | 227 | ||||||||||||
Net income attributable to partners | 18,977 | 18,893 | 33,572 | 34,341 | ||||||||||||
Comprehensive income attributable to partners | $ | 18,977 | $ | 18,893 | $ | 33,572 | $ | 34,341 | ||||||||
Less: General partner's interest in net income, including incentive distribution rights | 4,552 | 2,791 | 8,661 | 5,044 | ||||||||||||
Limited partners' interest in net income | $ | 14,425 | $ | 16,102 | $ | 24,911 | $ | 29,297 | ||||||||
Net income per limited partner unit: | ||||||||||||||||
Common units - (basic) | $ | 0.59 | $ | 0.66 | $ | 1.02 | $ | 1.23 | ||||||||
Common units - (diluted) | $ | 0.59 | $ | 0.66 | $ | 1.02 | $ | 1.22 | ||||||||
Subordinated units - Delek (basic and diluted) | $ | — | $ | — | $ | — | $ | 1.09 | ||||||||
Weighted average limited partner units outstanding: | ||||||||||||||||
Common units - basic | 24,335,338 | 24,281,930 | 24,331,991 | 20,653,210 | ||||||||||||
Common units - diluted | 24,375,946 | 24,367,091 | 24,371,540 | 20,735,389 | ||||||||||||
Subordinated units - Delek (basic and diluted) | — | — | — | 3,626,149 | ||||||||||||
Cash distribution per limited partner unit | $ | 0.705 | $ | 0.630 | $ | 1.395 | $ | 1.240 |
Delek Logistics Partners, LP | |||||||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||||||||||||
(In thousands) | |||||||||||||
Six Months Ended June 30, | |||||||||||||
2017 | 2016 | ||||||||||||
Cash Flow Data | |||||||||||||
Net cash provided by operating activities | $ | 47,411 | $ | 57,589 | |||||||||
Net cash used in investing activities | (8,804 | ) | (35,919 | ) | |||||||||
Net cash used in financing activities | (33,767 | ) | (21,670 | ) | |||||||||
Net increase in cash and cash equivalents | $ | 4,840 | $ | — |
Delek Logistics Partners, LP | ||||||||||||||||
Reconciliation of Amounts Reported Under U.S. GAAP | ||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
($ in thousands) | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Reconciliation of net income to EBITDA: | ||||||||||||||||
Net income | $ | 18,977 | $ | 18,893 | $ | 33,572 | $ | 34,341 | ||||||||
Add: | ||||||||||||||||
Income tax expense | 108 | 129 | 159 | 227 | ||||||||||||
Depreciation and amortization | 5,742 | 4,812 | 10,935 | 9,808 | ||||||||||||
Interest expense, net | 5,462 | 3,284 | 9,533 | 6,483 | ||||||||||||
EBITDA | $ | 30,289 | $ | 27,118 | $ | 54,199 | $ | 50,859 | ||||||||
Reconciliation of net cash from operating activities to distributable cash flow: | ||||||||||||||||
Net cash provided by operating activities | $ | 23,937 | $ | 31,215 | $ | 47,411 | $ | 57,589 | ||||||||
Changes in assets and liabilities | 881 | (7,133 | ) | (2,681 | ) | (12,534 | ) | |||||||||
Maintenance and regulatory capital expenditures | (2,070 | ) | (897 | ) | (4,313 | ) | (1,633 | ) | ||||||||
Reimbursement from Delek for capital expenditures | 784 | 593 | 3,835 | 802 | ||||||||||||
Accretion of asset retirement obligations | (73 | ) | (64 | ) | (146 | ) | (131 | ) | ||||||||
Deferred income taxes | (94 | ) | — | (119 | ) | — | ||||||||||
Gain (loss) on asset disposals | 5 | — | (7 | ) | 44 | |||||||||||
Distributable Cash Flow | $ | 23,370 | $ | 23,714 | $ | 43,980 | $ | 44,137 | ||||||||
Delek Logistics Partners, LP | ||||||||||||||||
Distributable Coverage Ratio Calculation | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
Distributions to partners of Delek Logistics, LP | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Limited partners' distribution on common units | $ | 17,175 | $ | 15,310 | $ | 33,962 | $ | 30,119 | ||||||||
General partner's distributions | 350 | 313 | 692 | 615 | ||||||||||||
General partner's incentive distribution rights | 4,258 | 2,462 | 8,153 | 4,446 | ||||||||||||
Total Distributions to be paid | $ | 21,783 | $ | 18,085 | $ | 42,807 | $ | 35,180 | ||||||||
Distributable Cash Flow | $ | 23,370 | $ | 23,714 | $ | 43,980 | $ | 44,137 | ||||||||
Distributable cash flow coverage ratio (1) | 1.07x | 1.31x | 1.03x | 1.25x | ||||||||||||
(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 | Six Months Ended | ||||||||||||||
June 30, | June 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Pipelines and Transportation | ||||||||||||||||
Net sales: | ||||||||||||||||
Affiliate | $ | 27,668 | $ | 26,136 | $ | 54,168 | $ | 52,442 | ||||||||
Third party | 2,555 | 5,874 | 4,732 | 12,351 | ||||||||||||
Total pipelines and transportation | 30,223 | 32,010 | 58,900 | 64,793 | ||||||||||||
Operating costs and expenses: | ||||||||||||||||
Cost of goods sold | 4,403 | 4,814 | 8,808 | 9,590 | ||||||||||||
Operating expenses | 7,933 | 6,899 | 16,088 | 14,639 | ||||||||||||
Segment contribution margin | $ | 17,887 | $ | 20,297 | $ | 34,004 | $ | 40,564 | ||||||||
Total Assets | $ | 338,781 | $ | 309,678 | ||||||||||||
Wholesale Marketing and Terminalling | ||||||||||||||||
Net sales: | ||||||||||||||||
Affiliate | $ | 12,156 | $ | 10,558 | $ | 22,275 | $ | 23,012 | ||||||||
Third party | 84,390 | 69,285 | 175,067 | 128,104 | ||||||||||||
Total wholesale marketing and terminalling | 96,546 | 79,843 | 197,342 | 151,116 | ||||||||||||
Operating costs and expenses: | ||||||||||||||||
Cost of goods sold | 80,636 | 68,287 | 168,821 | 130,264 | ||||||||||||
Operating expenses | 2,033 | 1,831 | 4,236 | 4,555 | ||||||||||||
Segment contribution margin | $ | 13,877 | $ | 9,725 | $ | 24,285 | $ | 16,297 | ||||||||
Total Assets | $ | 76,751 | $ | 72,093 | ||||||||||||
Consolidated | ||||||||||||||||
Net sales: | ||||||||||||||||
Affiliate | $ | 39,824 | $ | 36,694 | $ | 76,443 | $ | 75,454 | ||||||||
Third party | 86,945 | 75,159 | 179,799 | 140,455 | ||||||||||||
Total consolidated | 126,769 | 111,853 | 256,242 | 215,909 | ||||||||||||
Operating costs and expenses: | ||||||||||||||||
Cost of goods sold | 85,039 | 73,101 | 177,629 | 139,854 | ||||||||||||
Operating expenses | 9,966 | 8,730 | 20,324 | 19,194 | ||||||||||||
Contribution margin | 31,764 | 30,022 | 58,289 | 56,861 | ||||||||||||
General and administrative expenses | 2,656 | 2,698 | 5,504 | 5,611 | ||||||||||||
Depreciation and amortization | 5,742 | 4,812 | 10,935 | 9,808 | ||||||||||||
(Gain) loss on asset disposals | (5 | ) | — | 7 | (44 | ) | ||||||||||
Operating income | $ | 23,371 | $ | 22,512 | $ | 41,843 | $ | 41,486 | ||||||||
Total Assets | $ | 415,532 | $ | 381,771 |
Delek Logistics Partners, LP | ||||||||||||||||
Segment Capital Spending | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
Pipelines and Transportation | 2017 | 2016 | 2017 | 2016 | ||||||||||||
Maintenance capital spending | $ | 1,355 | $ | 714 | $ | 3,043 | $ | 1,225 | ||||||||
Discretionary capital spending | 305 | 4 | 754 | 199 | ||||||||||||
Segment capital spending | $ | 1,660 | $ | 718 | $ | 3,797 | $ | 1,424 | ||||||||
Wholesale Marketing and Terminalling | ||||||||||||||||
Maintenance capital spending | $ | 214 | $ | 56 | $ | 417 | $ | 72 | ||||||||
Discretionary capital spending | 245 | 74 | 696 | 436 | ||||||||||||
Segment capital spending | $ | 459 | $ | 130 | $ | 1,113 | $ | 508 | ||||||||
Consolidated | ||||||||||||||||
Maintenance capital spending | $ | 1,569 | $ | 770 | $ | 3,460 | $ | 1,297 | ||||||||
Discretionary capital spending | 550 | 78 | 1,450 | 635 | ||||||||||||
Total capital spending | $ | 2,119 | $ | 848 | $ | 4,910 | $ | 1,932 | ||||||||
Delek Logistics Partners, LP | ||||||||||||||||
Segment Data (Unaudited) | ||||||||||||||||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Pipelines and Transportation Segment: | ||||||||||||||||
Throughputs (average bpd) | ||||||||||||||||
Lion Pipeline System: | ||||||||||||||||
Crude pipelines (non-gathered) | 59,953 | 56,302 | 59,351 | 56,322 | ||||||||||||
Refined products pipelines | 49,820 | 53,670 | 50,583 | 53,725 | ||||||||||||
SALA Gathering System | 15,957 | 18,288 | 16,242 | 18,645 | ||||||||||||
East Texas Crude Logistics System | 13,591 | 12,909 | 14,876 | 11,127 | ||||||||||||
El Dorado Rail Offloading Rack | — | — | — | — | ||||||||||||
Wholesale Marketing and Terminalling Segment: | ||||||||||||||||
East Texas - Tyler Refinery sales volumes (average bpd) | 77,878 | 70,188 | 70,677 | 68,301 | ||||||||||||
West Texas marketing throughputs (average bpd) | 13,422 | 12,594 | 13,942 | 13,482 | ||||||||||||
West Texas marketing margin per barrel | $ | 4.26 | $ | 2.13 | $ | 3.44 | $ | 1.00 | ||||||||
Terminalling throughputs (average bpd) | 128,111 | 126,476 | 122,026 | 122,645 |
U.S. Investor / Media Relations Contact:Keith Johnson Vice President of Investor Relations 615-435-1366