• Delek Logistics Partners, LP Reports Fourth Quarter and Full Year 2018 Results

    Source: Nasdaq GlobeNewswire / 19 Feb 2019 23:00:55   Europe/London

    • Declared fourth quarter distribution of $0.81 per limited partner unit; increased by 11.7% percent year-over-year
    • Annual net cash from operations was $148.0 million
    • Annual distributable cash flow up 43% year over year compared to 2017
    • Distributable cash flow coverage ratio of 1.19x for 2018
    • Balance sheet positioned to support future growth; Total leverage ratio of approximately 4.1x

    BRENTWOOD, Tenn., Feb. 19, 2019 (GLOBE NEWSWIRE) -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the fourth quarter 2018. For the three months ended December 31, 2018, Delek Logistics reported net income attributable to all partners of $21.3 million, or $0.58 per diluted common limited partner unit. This compares to net income attributable to all partners of $18.9 million, or $0.57 per diluted common limited partner unit, in the fourth quarter 2017. Net cash from operating activities was $90.4 million in the fourth quarter 2018 compared to $9.8 million in the prior year period. Distributable cash flow was $27.6 million in the fourth quarter 2018, compared to $21.9 million in the prior-year period. Reconciliation of cash from operating activities as reported under U.S. GAAP to distributable cash flow is included in the financial tables attached to this release.

    For the fourth quarter 2018, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $40.8 million compared to $31.2 million in the prior-year period. This increase was primarily due to the contribution from the Big Spring logistics assets acquired from Delek US Holdings, Inc. (“Delek US”) effective March 1, 2018. Reconciliation of net income attributable to all partners as reported under U.S. GAAP to EBITDA is included in the financial tables attached to this release.

    For 2018, net income attributable to all partners was $90.2 million, or $2.65 per diluted common limited partner unit. This compares to net income attributable to all partners of $69.4 million, or $2.09 per diluted common limited partner unit in 2017. Net cash from operations was $148.0 million and distributable cash flow was $121.6 million in 2018 compared to net cash from operations of $87.0 million and distributable cash flow of $85.0 million in 2017. EBITDA was $164.0 million in 2018, compared to $115.0 million in 2017.

    Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics' general partner, remarked: "DKL continued its growth in 2018 with a 43 percent increase in EBITDA and 43% increase in distributable cash flow on a year over year basis compared to 2017. This performance supported a distributable cash flow coverage ratio of 1.19x for 2018.  While our balance sheet is positioned for the next step in growth through the potential drop down of the Krotz Springs logistics assets, we continue to explore opportunities in the Permian Basin to support our future growth. Currently, we are supporting Delek US in the construction process of its Big Spring Gathering system, which along with Delek US' proposed participation in a long haul crude oil pipeline project, should support an increased drop down inventory.  We were pleased to announce the 11.7 percent year-over-year increase in our fourth quarter distribution. The combination of our financial flexibility provided by our balance sheet and our focus on growth initiatives sustained our distribution growth in 2018, and should support our continued commitment to grow our distribution per limited partner unit by at least 10% annually through 2019."

    Distribution and Liquidity

    On January 24, 2019, Delek Logistics declared a quarterly cash distribution of $0.81 per common limited partner unit for the fourth quarter, which equates to $3.24 per common limited partner unit on an annualized basis. This distribution was paid on February 12, 2019 to unitholders of record on February 4, 2019. This represents a 2.5 percent increase from the third quarter 2018 distribution of $0.79 per common limited partner unit, or $3.16 per common limited partner unit on an annualized basis, and an 11.7 percent increase over Delek Logistics’ fourth quarter 2017 distribution of $0.725 per common limited partner unit, or $2.90 per common limited partner unit annualized. For the fourth quarter 2018, the total cash distribution declared to all partners, including IDRs, was approximately $26.9 million. Based on the distribution for the fourth quarter 2018, the distributable cash flow coverage ratio for the fourth quarter was 1.02x.

    As of December 31, 2018, Delek Logistics had total debt of approximately $700.4 million and cash of $4.5 million. Additional borrowing capacity, subject to certain covenants, under the $850.0 million credit facility was $393.3 million. The total leverage ratio, calculated in accordance with the credit facility, for the fourth quarter 2018 was approximately 4.1x, which is within the current requirements of the maximum allowable leverage ratio of 5.25x. This is a reduction from a 4.5x calculated ratio at September 30, 2018.

    Financial Results

    Revenue for the fourth quarter 2018 was $159.3 million compared to $151.2 million in the prior-year period. The increase in revenue is primarily due to the Big Spring acquisition that was effective March 1, 2018 and service revenue associated with the development of Delek US' Big Spring Gathering project. Total operating expenses were $15.9 million in the fourth quarter 2018, compared to $12.3 million in the fourth quarter 2017. This increase was primarily due to the contribution from the acquired Big Spring assets.  Total segment contribution margin was $45.1 million in the fourth quarter 2018 compared to $32.7 million in the fourth quarter 2017. General and administrative expenses were $7.4 million for the fourth quarter 2018, compared to $3.6 million in the prior-year period. This increase was primarily due to services provided to Delek US to support the development and operations of the Big Spring Gathering project, which included an approximate $2.7 million presentation change in the fourth quarter 2018 between general and administrative expenses and revenue.

    Pipelines and Transportation Segment

    Contribution margin in the fourth quarter 2018 was $26.3 million compared to $18.7 million in the fourth quarter 2017. This increase was primarily due to the contribution from the Big Spring acquisition that was effective March 1, 2018 and benefit from the services agreement with Delek US to support the development of the Big Spring Gathering project, partially offset by lower performance from the Paline Pipeline. Operating expenses were $10.9 million in the fourth quarter 2018 compared to $8.6 million in the prior-year period, primarily due to the Big Spring acquisition.

    Wholesale Marketing and Terminalling Segment

    During the fourth quarter 2018, contribution margin was $18.8 million, compared to $14.0 million in the fourth quarter 2017. This increase was primarily due to the contribution from the Big Spring acquisition that was effective March 1, 2018, partially offset by a lower gross margin in west Texas.  Operating expenses increased to $5.0 million in the fourth quarter 2018, compared to $3.7 million in the prior-year period primarily due to the Big Spring acquisition.

    In the west Texas wholesale business, average throughput in the fourth quarter 2018 was 12,938 barrels per day compared to 14,322 barrels per day in the fourth quarter 2017. The west Texas gross margin per barrel decreased year-over-year to $4.60 per barrel and included approximately $0.2 million, or $0.14 per barrel, from renewable identification numbers (RINs) generated in the quarter.  During the fourth quarter 2017, the west Texas gross margin per barrel was $5.18 per barrel and included $1.7 million from RINs, or $1.26 per barrel.

    Average terminalling throughput volume of 164,028 barrels per day during the fourth quarter 2018 increased on a year-over-year basis from 130,547 barrels per day in the fourth quarter 2017 primarily due to the addition of the Big Spring terminal.  During the fourth quarter 2018, average volume under the East Texas marketing agreement with Delek US was 77,896 barrels per day compared to 78,810 barrels per day during the fourth quarter 2017. During the fourth quarter 2018, average volume under the Big Spring marketing agreement with Delek US was 84,135 barrels per day.

    Fourth Quarter 2018 Results | Conference Call Information

    Delek Logistics will hold a conference call to discuss its fourth quarter and full-year 2018 results on Wednesday, February 20, 2019 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 21, 2019 by dialing (855) 859-2056, passcode 4568528. 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 and full-year 2018 earnings conference call on Wednesday, February 20, 2019 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 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 substantial majority of Delek Logistics' contribution margin 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; an inability of Delek US to grow as expected 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; expansion of the Paline Pipeline and potential benefits therefrom; distributions and the amounts and timing thereof; potential dropdown inventory; ability to create long-term value for our unit holders; financial flexibility and borrowing capacity; and distribution growth of 10% or at all. 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 attributable to partners before net interest expense, income tax expense (benefit), 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.

    • 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.

    EBITDA and distributable cash flow are non-U.S. 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, financing methods;

    • the ability of our assets to generate sufficient cash flow to make distributions to our 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.

    Non-GAAP measures 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. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. 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. 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
    Condensed Consolidated Balance Sheets (Unaudited)
    (In thousands, except unit and per unit data) 
     
      December 31, December 31,
      2018 2017
    ASSETS    
    Current assets:    
    Cash and cash equivalents $4,522  $4,675 
      Accounts receivable 21,586  23,013 
    Accounts receivable from related parties   1,124 
    Inventory 5,491  20,855 
    Other current assets 969  783 
    Total current assets 32,568  50,450 
    Property, plant and equipment:    
    Property, plant and equipment 452,746  367,179 
    Less: accumulated depreciation (140,184) (112,111)
    Property, plant and equipment, net 312,562  255,068 
    Equity method investments 104,770  106,465 
    Goodwill 12,203  12,203 
    Intangible assets, net 154,038  15,917 
    Other non-current assets 8,452  3,427 
    Total assets $624,593  $443,530 
    LIABILITIES AND DEFICIT    
    Current liabilities:    
    Accounts payable $14,226  $19,147 
    Accounts payable to related parties 7,833   
    Excise and other taxes payable 4,069  4,700 
    Tank inspection liabilities 902  902 
    Pipeline release liabilities 4,419  1,000 
    Accrued expenses and other current liabilities 5,056  6,033 
    Total current liabilities 36,505  31,782 
    Non-current liabilities:    
    Long-term debt 700,430  422,649 
    Asset retirement obligations 5,191  4,064 
    Other non-current liabilities 17,290  14,260 
    Total non-current liabilities 722,911  440,973 
    Deficit:    
    Common unitholders - public;  9,109,807 units issued and outstanding at December 31, 2018 (9,088,587 at December 31, 2017) 171,023  174,378 
    Common unitholders - Delek Holdings; 15,294,046 units issued and outstanding at December 31, 2018 (15,294,046 at December 31, 2017) (299,360) (197,206)
    General partner - 498,038 units issued and outstanding at December 31, 2018 (497,604 at December 31, 2017) (6,486) (6,397)
    Total deficit (134,823) (29,225)
    Total liabilities and deficit $624,593  $443,530 


     
    Delek Logistics Partners, LP
    Condensed Consolidated Statements of Income (Unaudited)
    (In thousands, except unit and per unit data) 
         
      Three Months Ended December 31, Year Ended December 31,
       
      2018 2017 2018 2017
             
    Net revenues:        
    Affiliate $62,250  $39,706  $240,809  $156,280 
    Third-party 97,048  111,501  416,800  381,795 
    Net revenues 159,298  151,207  657,609  538,075 
    Operating costs and expenses:        
    Cost of materials and other 98,417  106,141  429,061  372,890 
    Operating expenses (excluding depreciation and amortization presented below) 15,423  11,365  55,924  40,154 
    Depreciation and amortization 5,821  4,799  24,108  19,026 
    Total cost of sales 119,661  122,305  509,093  432,070 
    Operating expenses related to wholesale business (excluding depreciation and amortization presented below) 432  923  2,820  3,120 
    General and administrative expenses 7,367  3,585  17,166  11,840 
    Depreciation and amortization 448  718  1,882  2,888 
    Loss (gain) on asset disposals 243  (22) 891  (20)
    Total operating costs and expenses 128,151  127,509  531,852  449,898 
    Operating income 31,147  23,698  125,757  88,177 
    Interest expense, net 11,167  7,287  41,263  23,944 
    (Income) loss from equity method investments (1,549) (1,948) (6,230) (4,953)
    Other expense (income), net     8  (1)
    Income before income tax expense (benefit) 21,529  18,359  90,716  69,187 
    Income tax expense (benefit) 249  (555) 534  (222)
    Net income attributable to partners $21,280  $18,914  90,182  69,409 
    Comprehensive income attributable to partners $21,280  $18,914  $90,182  $69,409 
             
    Less: General partner's interest in net income, including incentive distribution rights 7,065  5,023  25,543  18,429 
    Limited partners' interest in net income $14,215  $13,891  $64,639  $50,980 
             
    Net income per limited partner unit:        
    Common units - (basic) $0.58  $0.57  $2.65  $2.09 
    Common units - (diluted) $0.58  $0.57  $2.65  $2.09 
             
    Weighted average limited partner units outstanding:        
    Common units - basic 24,397,085  24,366,291  24,390,286  24,348,063 
    Common units - diluted 24,405,661  24,382,560  24,396,881  24,376,972 
             
    Cash distribution per limited partner unit $0.810  $0.725  $3.120  $2.835 


     
    Delek Logistics Partners, LP
    Condensed Consolidated Statements of Cash Flows (Unaudited)
    (In thousands)
                 
             Year Ended December 31, 
             2018 2017 
                 
    Cash flows from operating activities     
    Net income $90,182  $69,409  
    Adjustments to reconcile net income to net cash provided by operating activities:     
     Depreciation and amortization 25,990  21,914  
     Amortization of customer contract intangible assets 6,009    
     Amortization of deferred revenue (1,497) (1,234) 
     Amortization of deferred financing costs and debt discount 2,577  2,048  
     Accretion of asset retirement obligations 359  292  
     Deferred income taxes 152  (111) 
     Income from equity method investments (6,230) (4,953) 
     Dividends from equity method investments 6,936  2,346  
     Loss (gain) on asset disposals 891  (20) 
     Unit-based compensation expense 674  721  
     Changes in assets and liabilities:     
      Accounts receivable 1,427  (3,811) 
      Inventories and other current assets 15,178  (11,692) 
      Accounts payable and other current liabilities (1,747) 10,859  
      Accounts receivable/payable to related parties 9,038  1,682  
      Non-current assets and liabilities, net (1,986) (500) 
    Net cash provided by operating activities 147,953  86,950  
    Cash flows from investing activities     
    Asset acquisitions, net of assumed ARO liabilities (72,380) (6,443) 
    Purchases of property, plant and equipment (12,931) (18,184) 
    Proceeds from sales of property, plant and equipment 502  46  
    Purchases of intangible assets (144,219) (2,560) 
    Distributions from equity method investments 1,162  753  
    Equity method investment contributions (173) (3,531) 
    Net cash provided by (used in) financing activities (228,039) (29,919) 
    Cash flows from financing activities     
    Proceeds from issuance of additional units to maintain 2% General Partner interest 26  21  
    Distributions to general partner (23,698) (17,691) 
    Distributions to common unitholders - public (27,721) (25,978) 
    Distributions to common unitholders - Delek Holdings (46,417) (42,490) 
    Distributions to Delek Holdings unitholders and general partner related to Big Spring Logistic Assets Acquisition

     (98,798)   
    Proceeds from revolving credit facility 735,000  277,100  
    Payments of revolving credit facility (458,200) (489,800) 
    Proceeds from issuance of senior notes   248,112  
    Deferred financing costs paid (5,264) (5,951) 
    Reimbursement of capital expenditures by Delek Holdings 5,005  4,262  
    Net cash provided by (used in) financing activities 79,933  (52,415) 
    Net (decrease) increase in cash and cash equivalents (153) 4,616  
    Cash and cash equivalents at the beginning of the period 4,675  59  
    Cash and cash equivalents at the end of the period $4,522  $4,675  
    Supplemental disclosures of cash flow information:     
    Cash paid during the period for:     
    Interest $38,959  $19,441  
    Income taxes $137  $60  
    Non-cash investing activities:     
    (Increase)/Decrease in accrued capital expenditures $(1,363) $194  
    Non-cash financing activities:     
    Sponsor contribution of fixed assets $154  $67  


     
    Delek Logistics Partners, LP
    Reconciliation of  Amounts Reported Under U.S. GAAP
    (In thousands)
         
      Three Months Ended December 31, Year Ended December 31,
      2018 2017 2018 2017
    Reconciliation of net income to EBITDA:        
    Net income $21,280  $18,914  $90,182  $69,409 
    Add:        
    Income tax expense (benefit) 249  (555) 534  (222)
    Depreciation and amortization expense 6,269  5,517  25,990  21,914 
    Amortization of customer contract intangible assets 1,802    6,009   
    Interest expense, net 11,167  7,287  41,263  23,944 
    EBITDA $40,767  $31,163  $163,978  $115,045 
             
    Reconciliation of net cash from operating activities to distributable cash flow:        
    Net cash provided by operating activities $90,353  $9,799  $147,953  $86,950 
    Changes in assets and liabilities (59,910) 14,603  (21,910) 3,462 
    Distributions from equity method investments in investing activities 205    1,162  753 
    Maintenance and regulatory capital expenditures (3,485) (4,433) (7,326) (9,444)
    Reimbursement from Delek for capital expenditures 936  1,723  3,115  3,453 
    Accretion of asset retirement obligations (92) (73) (359) (292)
    Deferred income taxes (152) 269  (152) 111 
    Gain (loss) on asset disposals (243) 22  (891) 20 
    Distributable Cash Flow $27,612  $21,910  $121,592  $85,013 


     
    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 2018 2017 2018 2017
    Limited partners' distribution on common units $19,770  $17,677  $76,114  $69,057 
    General partner's distributions 404  361  1,552  1,408 
    General partner's incentive distribution rights 6,775  4,739  24,224  17,389 
    Total distributions to be paid $26,949  $22,777  $101,890  $87,854 
             
    Distributable cash flow $27,612  $21,910  $121,592  85,013 
    Distributable cash flow coverage ratio (1)  1.02x   0.96x   1.19x   0.97x 


      
    (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,
      2018 2017 2018 2017
    Pipelines and Transportation        
    Net revenues:        
      Affiliates $38,794  $27,327  $138,418  $109,298 
      Third party 3,531  4,520  15,149  12,431 
      Total pipelines and transportation 42,325  31,847  153,567  121,729 
      Cost of sales:        
      Cost of materials and other 5,187  4,519  19,878  18,210 
      Operating expenses (excluding depreciation and amortization) 10,880  8,579  39,934  33,240 
      Segment contribution margin $26,258  $18,749  $93,755  $70,279 
    Total Assets $387,333  $349,351     
             
    Wholesale Marketing and Terminalling        
    Net revenues:        
      Affiliates (1) $23,456  $12,379  $102,391  $46,982 
      Third party 93,517  106,981  401,651  369,364 
      Total wholesale marketing and terminalling 116,973  119,360  504,042  416,346 
      Cost of sales:        
      Cost of materials and other 93,230  101,622  409,183  354,680 
      Operating expenses (excluding depreciation and amortization) 4,975  3,709  18,810  10,034 
      Segment contribution margin $18,768  $14,029  $76,049  $51,632 
    Total Assets $237,260  $94,179     
             
    Consolidated        
    Net revenues:        
      Affiliates $62,250  $39,706  $240,809  $156,280 
      Third party 97,048  111,501  416,800  381,795 
      Total consolidated 159,298  151,207  657,609  538,075 
      Cost of sales:        
      Cost of materials and other 98,417  106,141  429,061  372,890 
      Operating expenses (excluding depreciation and amortization presented below) 15,855  12,288  58,744  43,274 
      Contribution margin 45,026  32,778  169,804  121,911 
      General and administrative expenses 7,367  3,585  17,166  11,840 
      Depreciation and amortization 6,269  5,517  25,990  21,914 
      Loss (gain) on asset disposals 243  (22) 891  (20)
      Operating income $31,147  $23,698  $125,757  $88,177 
    Total Assets $624,593  $443,530     


      
    (1)Affiliate revenue for the wholesale marketing and terminalling segment is presented net of amortization expense pertaining to the marketing contract intangible we acquired in connection with the Big Spring acquisition.

     

     
    Delek Logistics Partners, LP
    Segment Capital Spending
     (In thousands)
     
      Three Months Ended December 31, Year Ended December 31,
    Pipelines and Transportation 2018 2017 2018 2017
    Maintenance capital spending $1,084  $4,079  $3,669  $8,643 
    Discretionary capital spending 1,436  3,468  3,171  5,619 
    Segment capital spending $2,520  $7,547  $6,840  $14,262 
    Wholesale Marketing and Terminalling        
    Maintenance capital spending $1,429  $1,693  2,880  $2,461 
    Discretionary capital spending 176  467  1,845  1,680 
    Segment capital spending $1,605  $2,160  $4,725  $4,141 
    Consolidated        
    Maintenance capital spending $2,513  $5,772  $6,549  $11,104 
    Discretionary capital spending 1,612  3,935  5,016  7,299 
    Total capital spending $4,125  $9,707  $11,565  $18,403 
             


     
    Delek Logistics Partners, LP
    Segment Data (Unaudited)
         
      Three Months Ended December 31, Year Ended December 31,
      2018 2017 2018 2017
    Pipelines and Transportation Segment:        
    Throughputs (average bpd)        
    Lion Pipeline System:        
      Crude pipelines (non-gathered) 45,416  58,497  51,992  59,362 
      Refined products pipelines 41,496  54,874  45,728  51,927 
    SALA Gathering System 15,536  15,013  16,571  15,871 
    East Texas Crude Logistics System 13,602  18,078  15,696  15,780 
             
    Wholesale Marketing and Terminalling Segment:        
    East Texas - Tyler Refinery sales volumes (average bpd) (1) 77,896  78,810  77,487  73,655 
    Big Spring Marketing - Refinery sales volume (average bpd) (for period owned) (2) 84,135    81,117   
    West Texas marketing throughputs (average bpd) 12,938  14,322  13,323  13,817 
    West Texas gross margin per barrel $4.60  $5.18  $5.57  $4.03 
    Terminalling throughputs (average bpd) (3) 164,028  130,547  155,193  124,488 


      
    (1)Excludes jet fuel and petroleum coke.
    (2)Throughputs for the year ended December 31, 2018 are for the 306 days we marketed certain finished products produced at or sold from the Big Spring Refinery following the execution of the Big Spring Marketing Agreement, effective March 1, 2018.
    (3)Consists of terminalling throughputs at our Tyler, Big Spring, Big Sandy and Mount Pleasant, Texas, our El Dorado and North Little Rock, Arkansas and our Memphis and Nashville, Tennessee terminals. Throughputs for the Big Spring terminal are for the 306 days we operated the terminal following its acquisition effective March 1, 2018.  Barrels per day are calculated for only the days we operated each terminal.  Total throughput for the year ended December 31, 2018 was 56.6 million barrels, which averaged 155,193 bpd for the period.
      

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

    Media/Public Affairs Contact:
    Michael P. Ralsky
    Vice President - Government Affairs, Public Affairs & Communications
    615-435-1407

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