Delek Logistics Partners, LP Reports
Fourth Quarter and Full-Year 2013 Results
BRENTWOOD, Tenn., February 25, 2014 (BUSINESS WIRE) -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics"), a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure, today announced financial results for the fourth quarter and full year 2013.
For the fourth quarter 2013, Delek Logistics reported net income attributable to partners of $11.3 million, or $0.46 per diluted limited partner unit. Distributable cash flow was $13.3 million for the quarter.
For 2013, net income attributable to partners was $47.8 million, or $1.93 per diluted limited partner unit. Distributable cash flow was $52.9 million for the year.
Distribution Update
On January 23, 2014, Delek Logistics declared a quarterly cash distribution of approximately $10.2 million, or $0.415 per unit that was paid on February 13, 2014, which equates to $1.66 per unit on an annualized basis. This represents a 2.5 percent increase from the third quarter 2013 distribution of $0.405 per unit, or $1.62 per unit on an annualized basis, and is 10.7 percent higher than Delek Logistics' minimum quarterly distribution of $0.375 per unit, or $1.50 per unit on an annualized basis.
As of December 31, 2013, Delek Logistics had a cash balance of $0.9 million and total debt was $164.8 million. Availability under the $400 million credit facility was $223.2 million at year end.
Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics' general partner, remarked: “Our fourth quarter results benefited from the July purchase of the tank farm and terminal in Tyler, Texas and was a solid finish to a successful first full year of operations. During 2013, we generated approximately $64 million of EBITDA and completed three acquisitions for $105 million. These combined acquisitions have an expected EBITDA of approximately $11.5 million on an annual basis. In addition, we increased the quarterly distribution by 10.7 percent over our minimum quarterly distribution and ended the year with a distributable cash flow coverage ratio of approximately 1.3 times. Our financial position allowed us to start 2014 off with continued growth as we completed the purchase of the El Dorado logistics assets from Delek US in February for $95.9 million, which is expected to add approximately $10 million of annual EBITDA. Moving forward, we remain focused on providing growth in both our operations and distributions throughout 2014."
Financial Results
Delek Logistics commenced operations on November 7, 2012 upon the completion of its initial public offering (the “Offering”) and the concurrent contribution of certain assets from its sponsor, Delek US Holdings, Inc. (NYSE: DK) ("Delek US"). For accounting purposes, the results from operations prior to the Offering from the assets and entities that were contributed to Delek Logistics concurrent with the Offering and the Tyler tank farm and product terminal purchased in July 2013 were attributed to their respective predecessor periods. Management believes results presented from these periods are not directly comparable year over year.
Revenue for the fourth quarter was $223.1 million and contribution margin was $18.6 million. Total operating expenses were $7.2 million and general and administrative expenses were $1.7 million for the quarter. For the fourth quarter 2013, earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $16.7 million. This compares to a contribution margin of $18.4 million and EBITDA of $16.6 million in the third quarter 2013. Results in the third quarter 2013 that are presented for comparison purposes take into account the contribution from the Tyler tank farm and terminal from the acquisition date of July 26, 2013.
Wholesale Marketing and Terminalling Segment
Contribution margin was $6.8 million in the fourth quarter 2013, compared to $7.7 million in the third quarter 2013. Contribution from a full quarter of operation of the Tyler, Texas terminal that was purchased in July, and the addition of the North Little Rock terminal purchased in October were factors partially offsetting lower throughput in this segment compared to the third quarter 2013. During the fourth quarter, throughput under the east Texas marketing agreement with Delek US of 55,279 barrels per day was lower on a sequential basis compared to 61,698 barrels per day during the third quarter 2013. This was primarily due to turnaround work on some units in December at Delek US' Tyler, Texas refinery.
In west Texas, throughput of 18,009 barrels per day benefited as demand for refined products remained strong due to economic growth in the west Texas area related to oil drilling activity. The margin per barrel in west Texas was $1.24 and included approximately $0.7 million, or $0.43 per barrel from renewable identification numbers (RINs) generated in the quarter. This compares to $1.63 per barrel, including $2.0 million, or $1.13 per barrel from RINs, during the third quarter 2013. On a sequential basis compared to the third quarter, a decline in the value of RINs related to ongoing ethanol blending activities was the primary factor in a lower gross margin per barrel.
Terminalling throughput volume of 69,994 barrels per day during the quarter was lower sequentially from the third quarter primarily due to planned turnaround activity at Delek US' Tyler, TX refinery in December.
Pipeline and Transportation Segment
The Pipeline and Transportation segment's contribution margin of $11.8 million improved from $10.8 million in the third quarter 2013. This increase is primarily attributed to a full quarter of storage fees associated with the Tyler tank farm purchased in late July. As expected, fees derived from the East Texas Crude Logistics System, which supports Delek US' Tyler, TX refinery continued at minimum contractual levels due to the reconfiguration of a third party pipeline that commenced service on April 1, 2013 to supply crude to this refinery.
Recent Acquisitions
On February 10, 2014, Delek Logistics acquired substantially all of the active tanks and the product terminal from a subsidiary of Delek US for $95.9 million in cash. These assets are expected to contribute at least $10.1 million of EBITDA annually. The tank farm has approximately 2.5 million barrels of aggregate shell capacity and consists of 158 tanks and ancillary assets, including piping and pumps. The product terminal operated at an approximate total throughput of 12,500 barrels per day during the nine months ended September 30, 2013 and has an estimated capacity of 26,700 barrels per day. These assets are located adjacent to and within Delek US’ El Dorado, Arkansas refinery and will continue to support that operation in the future. In connection with this transaction, among other agreements, an eight year throughput and tankage agreement for the terminal assets, storage tanks and related assets was entered into with a subsidiary of Delek US.
On October 24, 2013, Delek Logistics purchased a light products terminal in North Little Rock, Arkansas from an affiliate of Enterprise Products Partners LP. This terminal has a throughput capacity of approximately 10,000 barrels per day and is expected to contribute approximately $800,000 of EBITDA in the first twelve months of operation. This terminal is expected to be supplied by Delek US' El Dorado, Arkansas refinery through the Enterprise light products pipeline. Capital expenditures are planned in the amount of $5.4 million
to increase biodiesel blending ability and gasoline and diesel throughput capacity to approximately 17,500 barrels per day at this terminal over time.
Fourth Quarter and Full-Year 2013 Results | Conference Call Information
Delek Logistics will hold a conference call to discuss its fourth quarter and full-year 2013 results on February 26, 2014 at 9:00 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekLogistics.com and clicking on the Investor Relations tab. Participants are encouraged to register at least 15 minutes early to register, download and install any necessary software. For those who cannot listen to the live broadcast, a telephonic replay will be available through May 26, 2014 by dialing (855) 859-2056, passcode 44430857. 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 2013 earnings conference call on Thursday, February 27, 2014 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 Logistic 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, the impact of adverse market conditions affecting the business of Delek Logistics, 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. 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.
Factors Affecting Comparability:
The following tables present financial and operational information for the three months and twelve months ended December 31, 2013 and 2012. Delek Logistics commenced operations on November 7, 2012 upon successful completion of its initial public offering (the "Offering") and the concurrent contribution of certain assets from its sponsor, Delek US. For accounting purposes, the results from operations prior to November 7, 2012 from the assets and entities that were contributed to us concurrent with the Offering, were attributed to Delek Logistics Partners, LP Predecessor (our “Predecessor”). Because many of these assets were historically a part of the integrated operations of Delek US, the Predecessor generally recognized the costs and most revenue associated with the gathering, pipeline, transportation, terminalling and storage services provided to Delek US on an intercompany basis or charged low or no throughput or storage fees for transportation.
On July 26, 2013, we acquired from Delek US the Tyler Assets. The Tyler Assets were a transfer between entities under common control. Accordingly, the accompanying financial statements of the DKL Predecessor
and the Partnership have been retrospectively adjusted to include the historical results of the Tyler Assets for all periods presented through July 26, 2013, the date of the acquisition (the "Tyler Predecessor"). We refer to the historical results of the DKL Predecessor and the Tyler Assets collectively as our Predecessor(s).
Non-GAAP Disclosures:
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:
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| • | 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; |
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| • | our ability to incur and service debt and fund capital expenditures; and |
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| • | 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 and distributable cash flow provide useful information to investors in assessing our financial condition, our results of operations and cash flow our business is generating. EBITDA and distributable cash flow should not be considered 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 and distributable cash flow 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 companies in our industry, Delek Logistics' definitions of EBITDA and distributable cash flow may not be comparable to similarly titled measures of other companies, thereby diminishing their utility. 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.
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| | | | | | | | | | | | | | | | |
| Delek Logistics Partners, LP |
| Reconciliation of Amounts Reported Under U.S. GAAP |
| | | Three Months Ended December 31, | | Year Ended |
| ($ in thousands) | | 2013 | | 2012 (1) | | 2013 (2) | | 2012 (1) |
| Reconciliation of EBITDA to net income: | | | | Predecessors | | | | Predecessors |
| Net income | | $ | 11,325 |
| | $ | 23,456 |
| | $ | 40,977 |
| | $ | 24,818 |
|
| Add: | | | | | | | | |
| Income taxes | | 210 |
| | (19,207 | ) | | 757 |
| | (14,024 | ) |
| Depreciation and amortization | | 3,362 |
| | 2,400 |
| | 12,436 |
| | 10,120 |
|
| Interest expense, net | | 1,807 |
| | 906 |
| | 4,570 |
| | 2,682 |
|
| EBITDA | | $ | 16,704 |
| | $ | 7,555 |
| | $ | 58,740 |
| | $ | 23,596 |
|
| | | | | | | | | |
| Reconciliation of EBITDA to net cash provided by (used in) operating activities: | | | | | | | | |
| Net cash provided by (used in) operating activities | | $ | 8,907 |
| | $ | 31,143 |
| | $ | 44,391 |
| | $ | 26,612 |
|
| Amortization of unfavorable contract liability to revenue | | 667 |
| | 668 |
| | 2,623 |
| | 668 |
|
| Amortization of deferred financing costs | | (447 | ) | | (235 | ) | | (1,007 | ) | | (381 | ) |
| Accretion of asset retirement obligations | | (53 | ) | | (108 | ) | | (216 | ) | | (187 | ) |
| Deferred taxes | | (267 | ) | | 93 |
| | (309 | ) | | 228 |
|
| Loss on asset disposals | | (166 | ) | | (4 | ) | | (166 | ) | | (9 | ) |
| Stock-based compensation expense | | — |
| | — |
| | — |
| | (92 | ) |
| Unit-based compensation expense | | (285 | ) | | (1 | ) | | (464 | ) | | (1 | ) |
| Changes in assets and liabilities | | 6,331 |
| | (24,233 | ) | | 8,561 |
| | (10,434 | ) |
| Income taxes | | 210 |
| | (673 | ) | | 757 |
| | 4,510 |
|
| Interest expense, net | | 1,807 |
| | 905 |
| | 4,570 |
| | 2,682 |
|
| EBITDA | | $ | 16,704 |
| | $ | 7,555 |
| | $ | 58,740 |
| | $ | 23,596 |
|
| | | | | | | | | |
| Reconciliation of distributable cash flow to EBITDA: | | | | | | | | |
| EBITDA | | $ | 16,704 |
| | $ | 7,555 |
| | $ | 58,740 |
| | $ | 23,596 |
|
| Less: Cash interest, net | | 1,360 |
| | 671 |
| | 3,563 |
| | 2,301 |
|
| Less: Maintenance and Regulatory capital expenditures | | 1,322 |
| | 2,715 |
| | 7,179 |
| | 8,054 |
|
| Less: Capital improvement expenditures | | 459 |
| | — |
| | 2,219 |
| | — |
|
| Add: Reimbursement from Delek for capital expenditures | | 374 |
| | — |
| | 837 |
| | — |
|
| Less: Income tax expense | | 210 |
| | (673 | ) | | 757 |
| | 4,510 |
|
| Add: Non-cash share-based compensation expense | | — |
| | 92 |
| | — |
| | 92 |
|
| Add: Non-cash unit-based compensation expense | | 285 |
| | 1 |
| | 464 |
| | 1 |
|
| Less: Amortization of deferred revenue | | 50 |
| | — |
| | 204 |
| | — |
|
| Less: Amortization of unfavorable contract liability | | 667 |
| | 668 |
| | 2,623 |
| | 668 |
|
| Distributable cash flow | | $ | 13,295 |
| | $ | 4,267 |
| | $ | 43,496 |
| | $ | 8,156 |
|
(1) The information presented includes the results of operations of our Predecessors. Prior to the completion of the Offering and the Tyler acquisition, our Predecessors did not record revenues for intercompany gathering, pipeline transportation, terminalling and storage services.
(2) The information presented includes the results of operations of the Tyler Predecessor. Prior to the completion of the Tyler acquisition, the Tyler Predecessor did not record revenues for intercompany gathering, pipeline transportation, terminalling and storage services.
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| | | | | | | | | | | | |
| Delek Logistics Partners, LP |
| Reconciliation of Amounts Reported Under U.S. GAAP |
| | | Delek Logistics Partners, LP | | Tyler Terminal and Tank Assets (1) | | Year Ended |
| ($ in thousands) | | 1/1/2013 - 12/31/2013 | | 1/1/2013 - 7/26/2013 | | December 31, 2013 |
| | | | | Tyler Predecessor | | |
| Reconciliation of EBITDA to net income: | | | | | | |
| Net income | | $ | 47,830 |
| | $ | (6,853 | ) | | $ | 40,977 |
|
| Add: | | | | | | |
| Income taxes | | 757 |
| | — |
| | 757 |
|
| Depreciation and amortization | | 10,686 |
| | 1,750 |
| | 12,436 |
|
| Interest expense, net | | 4,570 |
| | — |
| | 4,570 |
|
| EBITDA | | $ | 63,843 |
| | $ | (5,103 | ) | | $ | 58,740 |
|
| | | | | | | |
| Reconciliation of EBITDA to net cash from operating activities: | | | | | | |
| Net cash provided by operating activities | | $ | 49,447 |
| | $ | (5,056 | ) | | $ | 44,391 |
|
| Amortization of unfavorable contract liability to revenue | | 2,623 |
| | — |
| | 2,623 |
|
| Amortization of debt issuance costs | | (1,007 | ) | | — |
| | (1,007 | ) |
| Accretion of asset retirement obligations | | (161 | ) | | (55 | ) | | (216 | ) |
| Deferred taxes | | (309 | ) | | — |
| | (309 | ) |
| Loss on asset disposals | | (166 | ) | | — |
| | (166 | ) |
| Unit-based compensation expense | | (464 | ) | | — |
| | (464 | ) |
| Changes in assets and liabilities | | 8,553 |
| | 8 |
| | 8,561 |
|
| Income taxes | | 757 |
| | — |
| | 757 |
|
| Interest expense, net | | 4,570 |
| | — |
| | 4,570 |
|
| EBITDA | | $ | 63,843 |
| | $ | (5,103 | ) | | $ | 58,740 |
|
| | | | | | | |
| Reconciliation of distributable cash flow to EBITDA: | | | | | | |
| EBITDA | | $ | 63,843 |
| | $ | (5,103 | ) | | $ | 58,740 |
|
| Less: Cash interest, net | | 3,563 |
| | — |
| | 3,563 |
|
| Less: Maintenance and Regulatory capital expenditures | | 4,038 |
| | 3,141 |
| | 7,179 |
|
| Less: Capital improvement expenditures | | 1,089 |
| | 1,130 |
| | 2,219 |
|
| Add: Reimbursement from Delek for capital expenditures | | 837 |
| | — |
| | 837 |
|
| Less: Income tax expense | | 757 |
| | — |
| | 757 |
|
| Add: Non-cash unit-based compensation expense | | 464 |
| | — |
| | 464 |
|
| Less: Amortization of deferred revenue | | 204 |
| | — |
| | 204 |
|
| Less: Amortization of unfavorable contract liability | | 2,623 |
| | — |
| | 2,623 |
|
| Distributable cash flow | | $ | 52,870 |
| | $ | (9,374 | ) | | $ | 43,496 |
|
| | | | | | | |
(1) The information presented is for the year ended December 31, 2013, disaggregated to present the results of the Tyler Predecessor. Prior to the completion of the Tyler acquisition on July 26, 2013, the Tyler Predecessor did not record revenues for intercompany terminalling and storage services.
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| Delek Logistics Partners, LP |
| Condensed Consolidated Balance Sheets (Unaudited) |
| | | December 31, |
| | | 2013 | | 2012 (1) |
| | | | | Predecessors |
| | | (In thousands) |
| ASSETS | | | | |
| Current assets: | | | | |
| Cash and cash equivalents | | $ | 924 |
| | $ | 23,452 |
|
| Accounts receivable | | 28,976 |
| | 27,725 |
|
| Inventory | | 17,512 |
| | 14,351 |
|
| Deferred tax assets | | 12 |
| | 14 |
|
| Other current assets | | 341 |
| | 169 |
|
| Total current assets | | 47,765 |
| | 65,711 |
|
| Property, plant and equipment: | | |
| | |
|
| Property, plant and equipment | | 235,588 |
| | 216,048 |
|
| Less: accumulated depreciation | | (36,306 | ) | | (24,991 | ) |
| Property, plant and equipment, net | | 199,282 |
| | 191,057 |
|
| Goodwill | | 10,454 |
| | 10,454 |
|
| Intangible assets, net | | 12,258 |
| | 12,430 |
|
| Other non-current assets | | 5,045 |
| | 3,664 |
|
| Total assets | | $ | 274,804 |
| | $ | 283,316 |
|
| LIABILITIES AND EQUITY | | |
| | |
|
| Current liabilities: | | |
| | |
|
| Accounts payable | | $ | 26,045 |
| | $ | 21,849 |
|
| Accounts payable to related parties | | 1,513 |
| | 10,148 |
|
| Fuel and other taxes payable | | 5,700 |
| | 4,650 |
|
| Accrued expenses and other current liabilities | | 5,776 |
| | 3,650 |
|
| Total current liabilities | | 39,034 |
| | 40,297 |
|
| Non-current liabilities: | | |
| | |
|
| Revolving credit facility | | 164,800 |
| | 90,000 |
|
| Asset retirement obligations | | 2,993 |
| | 3,177 |
|
| Deferred tax liabilities | | 324 |
| | 17 |
|
| Other non-current liabilities | | 5,612 |
| | 9,810 |
|
| Total non-current liabilities | | 173,729 |
| | 103,004 |
|
| Equity: | |
|
| | |
| Predecessor division equity | | — |
| | 35,590 |
|
| Common unitholders - public; 9,353,240 units issued and outstanding at December 31, 2013 (9,200,000 at December 31, 2012) | | 183,839 |
| | 178,728 |
|
| Common unitholders - Delek; 2,799,258 units issued and outstanding at December 31, 2013 (2,799,258 at December 31, 2012) | | (176,680 | ) | | (127,129 | ) |
| Subordinated unitholders - Delek; 11,999,258 units issued and outstanding at December 31, 2013 (11,999,258 at December 31, 2012) | | 59,386 |
| | 52,875 |
|
| General partner - Delek; 492,893 units issued and outstanding at December 31, 2013 (489,766 at December 31, 2012) | | (4,504 | ) | | (49 | ) |
| Total equity | | 62,041 |
| | 140,015 |
|
| Total liabilities and equity | | $ | 274,804 |
| | $ | 283,316 |
|
| | | | | |
(1) Includes the historical balances of the Tyler Terminal and Tank Assets.
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| | | | | | | | | | | | | | | | |
| Delek Logistics Partners, LP |
| Condensed Consolidated Statements of Income (Unaudited) |
| | | Three Months Ended December 31, | | Year Ended |
| | | |
| | | 2013 | | 2012 (1) | | 2013 (2) | | 2012 (1) |
| | | | | Predecessors | | | | Predecessors |
| | | (In thousands, except unit and per unit data) |
| Net sales | | $ | 223,097 |
| | $ | 249,216 |
| | $ | 907,428 |
| | $ | 1,022,586 |
|
| Operating costs and expenses: | | | | | | | | |
| Cost of goods sold | | 197,316 |
| | 229,684 |
| | 811,364 |
| | 959,434 |
|
| Operating expenses | | 7,227 |
| | 9,760 |
| | 30,302 |
| | 30,397 |
|
| General and administrative expenses | | 1,684 |
| | 2,213 |
| | 6,856 |
| | 9,150 |
|
| Depreciation and amortization | | 3,362 |
| | 2,400 |
| | 12,436 |
| | 10,120 |
|
| Loss on sale of assets | | 166 |
| | 4 |
| | 166 |
| | 9 |
|
| Total operating costs and expenses | | 209,755 |
| | 244,061 |
| | 861,124 |
| | 1,009,110 |
|
| Operating income | | 13,342 |
| | 5,155 |
| | 46,304 |
| | 13,476 |
|
| Interest expense, net | | 1,807 |
| | 906 |
| | 4,570 |
| | 2,682 |
|
| Net income before income tax expense (benefit) | | 11,535 |
| | 4,249 |
| | 41,734 |
| | 10,794 |
|
| Income tax expense (benefit) | | 210 |
| | (19,207 | ) | | 757 |
| | (14,024 | ) |
| Net income | | $ | 11,325 |
| | $ | 23,456 |
| | $ | 40,977 |
| | $ | 24,818 |
|
| Less: (Loss) income attributable to Predecessors | | — |
| | (2,636 | ) | | (6,853 | ) | | 16,408 |
|
| Net income attributable to partners | | 11,325 |
| | 26,092 |
| | 47,830 |
| | 8,410 |
|
| Comprehensive income attributable to partners | | $ | 11,325 |
| | $ | 26,092 |
| | $ | 47,830 |
| | $ | 8,410 |
|
| | | | | | | | | |
| Less: General partner's interest in net income (2%) | | 227 |
| | 522 |
| | 957 |
| | 168 |
|
| Limited partners' interest in net income | | $ | 11,098 |
| | $ | 25,570 |
| | $ | 46,873 |
| | $ | 8,242 |
|
| | | | | | | | | |
| Net income per limited partner unit: | | | | | | | | |
| Common units - (basic) | | $ | 0.46 |
| | $ | 1.07 |
| | $ | 1.95 |
| | $ | 0.34 |
|
| Common units - (diluted) | | $ | 0.46 |
| | $ | 1.07 |
| | $ | 1.93 |
| | $ | 0.34 |
|
| Subordinated units - Delek (basic and diluted) | | $ | 0.46 |
| | $ | 1.07 |
| | $ | 1.95 |
| | $ | 0.34 |
|
| | | | | | | | | |
| Weighted average limited partner units outstanding: | | | | | | | | |
| Common units - basic | | 12,057,310 |
| | 11,999,258 |
| | 12,025,249 |
| | 11,999,258 |
|
| Common units - diluted | | 12,193,630 |
| | 11,999,258 |
| | 12,148,774 |
| | 11,999,258 |
|
| Subordinated units - Delek (basic and diluted) | | 11,999,258 |
| | 11,999,258 |
| | 11,999,258 |
| | 11,999,258 |
|
| | | | | | | | | |
| Cash distribution per unit | | $ | 0.415 |
| | $ | 0.224 |
| | $ | 1.600 |
| | $ | 0.224 |
|
(1) The information presented includes the results of operations of our Predecessors. Prior to the completion of the Offering and the Tyler acquisition, our Predecessors did not record revenues for intercompany gathering, pipeline transportation, terminalling and storage services.
(2) The information presented includes the results of operations of the Tyler Predecessor. Prior to the completion of the Tyler acquisition, the Tyler Predecessor did not record revenues for intercompany gathering, pipeline transportation, terminalling and storage services.
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| Delek Logistics Partners, LP |
| Condensed Consolidated Statements of Income (Unaudited) |
| Reconciliation of Partnership to Predecessor |
| | | | | | | |
| | | Delek Logistics Partners, LP | | Tyler Terminal and Tank Assets (1) | | Year Ended |
| | | 1/1/2013 - 12/31/2013 | | 1/1/2013 - 7/26/2013 | | December 31, 2013 |
| | | | | Tyler Predecessor | | |
| | | (In thousands, except unit and per unit data) |
| Net Sales | | $ | 907,428 |
| | $ | — |
| | $ | 907,428 |
|
| Operating costs and expenses: | | | | | | |
| Cost of goods sold | | 811,364 |
| | — |
| | 811,364 |
|
| Operating expenses | | 25,801 |
| | 4,501 |
| | 30,302 |
|
| General and administrative expenses | | 6,254 |
| | 602 |
| | 6,856 |
|
| Depreciation and amortization | | 10,686 |
| | 1,750 |
| | 12,436 |
|
| Loss on asset disposals | | 166 |
| | — |
| | 166 |
|
| Total operating costs and expenses | | 854,271 |
| | 6,853 |
| | 861,124 |
|
| Operating income | | 53,157 |
| | (6,853 | ) | | 46,304 |
|
| Interest expense, net | | 4,570 |
| | — |
| | 4,570 |
|
| Net income before income tax expense | | 48,587 |
| | (6,853 | ) | | 41,734 |
|
| Income tax expense | | 757 |
| | — |
| | 757 |
|
| Net income | | $ | 47,830 |
| | $ | (6,853 | ) | | $ | 40,977 |
|
| Less: Loss attributable to Predecessors | | — |
| | (6,853 | ) | | (6,853 | ) |
| Net income attributable to partners | | $ | 47,830 |
| | $ | — |
| | $ | 47,830 |
|
| | | | | | | |
(1) The information presented is a summary of our results of operations for the year ended December 31, 2013, disaggregated to present the results of operations of the Tyler Predecessor. Prior to the completion of the Tyler acquisition on July 26, 2013, the Tyler Predecessor did not record revenues for intercompany terminalling and storage services.
|
| | | | | | | | | | | | | |
| Delek Logistics Partners, LP |
| Condensed Consolidated Statements of Cash Flows (Unaudited) |
| (In thousands) |
| | | | | | | | | | |
| | | | | | | Year Ended December 31, | |
| | | | | | | 2013 | | 2012 (1) | |
| | | | | | | | | Predecessors | |
| Cash Flow Data | | | | | |
| Cash flows provided by operating activities: | | $ | 44,391 |
| | $ | 26,612 |
| |
| Cash flows used in investing activities: | | (20,135 | ) | | (50,010 | ) | |
| Cash flows (used in) provided by financing activities: | | (46,784 | ) | | 46,815 |
| |
| | Net increase in cash and cash equivalents | | $ | (22,528 | ) | | $ | 23,417 |
| |
(1) Adjusted to include the historical cash flows of the Tyler Terminal and Tank Assets.
|
| | | | | | | | | | | | |
| Delek Logistics Partners, LP |
| Segment Data (unaudited) |
| (In thousands) |
| | | Three Months Ended December 31, 2013 |
| | | Pipelines & Transportation | | Wholesale Marketing & Terminalling | | Consolidated |
| Net sales | | $ | 17,229 |
| | $ | 205,868 |
| | $ | 223,097 |
|
| Operating costs and expenses: | | | | | | |
| Cost of goods sold | | 764 |
| | 196,552 |
| | 197,316 |
|
| Operating expenses | | 4,710 |
| | 2,517 |
| | 7,227 |
|
| Segment contribution margin | | $ | 11,755 |
| | $ | 6,799 |
| | 18,554 |
|
| General and administrative expenses | | | | | | 1,684 |
|
| Depreciation and amortization | | | | | | 3,362 |
|
| Loss on disposal of assets | | | | | | 166 |
|
| Operating income | | | | | | $ | 13,342 |
|
| Total assets | | $ | 164,608 |
| | $ | 110,196 |
| | $ | 274,804 |
|
| | | | | | | |
| Capital spending | | | | | | |
| Maintenance capital spending | | 482 |
| | 841 |
| | $ | 1,323 |
|
| Expansion capital spending | | 183 |
| | 275 |
| | $ | 458 |
|
| Total capital spending | | $ | 665 |
| | $ | 1,116 |
| | $ | 1,781 |
|
| |
|
| | | | | | | | | | | | |
| | | Three Months Ended December 31, 2012 (1) |
| | | Predecessors |
| | | Pipelines & Transportation | | Wholesale Marketing & Terminalling | | Consolidated |
| Net sales | | $ | 12,100 |
| | 237,116 |
| | $ | 249,216 |
|
| Operating costs and expenses: | | | | | | |
| Cost of goods sold | | — |
| | 229,684 |
| | 229,684 |
|
| Operating expenses | | 8,006 |
| | 1,754 |
| | 9,760 |
|
| Segment contribution margin | | $ | 4,094 |
| | $ | 5,678 |
| | 9,772 |
|
| General and administrative expenses | | | | | | 2,213 |
|
| Depreciation and amortization | | | | | | 2,400 |
|
| (Gain) on disposal of assets | | | | | | 4 |
|
| Operating income | | | | | | $ | 5,155 |
|
| Total assets | | $ | 183,204 |
| | $ | 100,112 |
| | $ | 283,316 |
|
| | | | | | | |
| Capital spending | | | | | | |
| Maintenance capital spending | | 2,630 |
| | 85 |
| | $ | 2,715 |
|
| Expansion capital spending | | 4,116 |
| | 3,220 |
| | $ | 7,336 |
|
Total capital spending (2) | | $ | 6,746 |
| | $ | 3,305 |
| | $ | 10,051 |
|
| |
(1) The information presented includes the results of operations of our Predecessors. Prior to the completion of the Offering and the Tyler acquisition, our Predecessors did not record revenues for intercompany gathering, pipeline transportation, terminalling and storage services.
(2) Capital spending includes expenditures of $3.8 million incurred in connection with the assets acquired in the Tyler acquisition.
|
| | | | | | | | | | | | |
| Delek Logistics Partners, LP |
| Segment Data (unaudited) |
| (In thousands) |
| | | Year Ended December 31, 2013 |
| | | Pipelines & Transportation | | Wholesale Marketing & Terminalling | | Consolidated |
| Net sales | | $ | 60,237 |
| | $ | 847,191 |
| | $ | 907,428 |
|
| Operating costs and expenses: | | | | | | |
| Cost of goods sold | | 764 |
| | 810,600 |
| | 811,364 |
|
| Operating expenses | | 22,903 |
| | 7,399 |
| | 30,302 |
|
| Segment contribution margin | | $ | 36,570 |
| | $ | 29,192 |
| | 65,762 |
|
| General and administrative expenses | | | | | | 6,856 |
|
| Depreciation and amortization | | | | | | 12,436 |
|
| Loss on disposal of assets | | | | | | 166 |
|
| Operating income | | | | | | $ | 46,304 |
|
| | | | | | | |
| Capital spending |
|
|
|
|
|
|
| Maintenance capital spending |
| 5,018 |
|
| 2,161 |
|
| $ | 7,179 |
|
| Expansion capital spending |
| 1,887 |
|
| 332 |
|
| $ | 2,219 |
|
Total capital spending (1) |
| $ | 6,905 |
|
| $ | 2,493 |
|
| $ | 9,398 |
|
(1) Capital spending includes expenditures of $4.3 million incurred in connection with the Tyler acquisition prior to July 26, 2013, the date we acquired the Tyler Terminal and Tank Assets.
|
| | | | | | | | | | | | |
| | | Year Ended December 31, 2012 (1) |
| | | Predecessors |
| | | Pipelines & Transportation | | Wholesale Marketing & Terminalling | | Consolidated |
| Net sales | | $ | 33,539 |
| | $ | 989,047 |
| | $ | 1,022,586 |
|
| Operating costs and expenses: | | | | | | |
| Cost of goods sold | | — |
| | 959,434 |
| | 959,434 |
|
| Operating expenses | | 24,155 |
| | 6,242 |
| | 30,397 |
|
| Segment contribution margin | | $ | 9,384 |
| | $ | 23,371 |
| | 32,755 |
|
| General and administrative expenses | | | | | | 9,150 |
|
| Depreciation and amortization | | | | | | 10,120 |
|
| (Gain) on disposal of assets | | | | | | 9 |
|
| Operating income | | | | | | $ | 13,476 |
|
| | | | | | |
|
|
| Capital spending | | | | | | |
| Maintenance capital spending | | 7,791 |
| | 263 |
| | $ | 8,054 |
|
| Expansion capital spending | | 14,355 |
| | 4,350 |
| | $ | 18,705 |
|
Total capital spending (1) | | $ | 22,146 |
| | $ | 4,613 |
| | $ | 26,759 |
|
(1) The information presented includes the results of operations of our Predecessors. Prior to the completion of the Offering and the Tyler acquisition, our Predecessors did not record revenues for intercompany gathering, pipeline transportation, terminalling and storage services.
(2) Capital spending includes expenditures of $15.7 million incurred in connection with the assets acquired in the Tyler acquisition.
|
| | | | | | | | | | | | | | | | |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| | | | | |
| | | Three Months Ended December 31, | | Year Ended December 31, |
| Throughputs (average bpd) | | 2013 | | 2012 (1) | | 2013 | | 2012 (1) |
| | | | | Predecessors | | | | Predecessors |
| Pipelines and Transportation Segment: | | | | | | | | |
| Lion Pipeline System: | | | | | | | | |
| Crude pipelines (non-gathered) | | 44,096 |
| | 43,164 |
| | 46,515 |
| | 46,027 |
|
| Refined products pipelines to Enterprise Systems | | 55,637 |
| | 47,382 |
| | 49,694 |
| | 45,220 |
|
| SALA Gathering System | | 21,904 |
| | 21,679 |
| | 22,152 |
| | 20,747 |
|
| East Texas Crude Logistics System | | 7,410 |
| | 57,761 |
| | 19,896 |
| | 55,068 |
|
| Wholesale Marketing and Terminalling Segment: | | | | | | | | |
| East Texas - Tyler Refinery sales volumes (average bpd) | | 55,279 |
| | 61,317 |
| | 58,773 |
| | 57,574 |
|
| West Texas marketing throughputs (average bpd) | | 18,009 |
| | 17,316 |
| | 18,156 |
| | 16,523 |
|
| West Texas marketing margin per barrel | | $ | 1.24 |
| | $ | 2.67 |
| | $ | 2.12 |
| | $ | 2.56 |
|
| Bulk Biofuels | | — |
| | 7,517 |
| | — |
| | 5,577 |
|
Terminalling throughputs (average bpd)(2) | | 69,994 |
| | 12,637 |
| | 77,760 |
| | 15,420 |
|
(1) The information presented includes the results of operations of our Predecessors. Volumes for all periods presented include both affiliate and third-party throughput.
(2) Consists of terminalling throughputs at our Memphis and Nashville, Tennessee terminals, our North Little Rock Terminal and our Tyler Terminal. Barrels per day information for the three and twelve months ended December 31, 2013 consist of throughputs for the North Little Rock Terminal for the 69 days Delek operated the terminal following its acquisition in October 2013. Throughputs for the Tyler terminal are excluded for the three and twelve months ended December 31, 2012, as the Tyler Predecessor did not record revenues for intercompany terminalling services. Total throughput barrels for the three and twelve months ended December 31, 2013 were 6.3 million and 14.9 million, respectively, which averaged 69,994 bpd for the 92 day period and 40,842 bpd for the 365 day period, respectively.
|
| | | | | | | | | | | | |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| |
| | | Delek Logistics Partners, LP | | Tyler Terminal and Tank Assets (1) | | Year Ended |
| Throughputs (average bpd) | | 1/1/2013- 12/31/2013 | | 1/1/13 - 7/26/2013 | | 2013 |
| | | | | Tyler Predecessor | | |
| Pipelines and Transportation Segment: | | | | | | |
| Lion Pipeline System: | | | | | | |
| Crude pipelines (non-gathered) | | 46,515 |
| | — |
| | 46,515 |
|
| Refined products pipelines to Enterprise Systems | | 49,694 |
| | — |
| | 49,694 |
|
| SALA Gathering System | | 22,152 |
| | — |
| | 22,152 |
|
| East Texas Crude Logistics System | | 19,896 |
| | — |
| | 19,896 |
|
| | | | | | | |
| Wholesale Marketing and Terminalling Segment: | | | | | | |
| East Texas - Tyler Refinery sales volumes (average bpd) | | 58,773 |
| | — |
| | 58,773 |
|
| West Texas marketing throughputs (average bpd) | | 18,156 |
| | — |
| | 18,156 |
|
| West Texas marketing margin per barrel | | $ | 2.12 |
| | $ | — |
| | $ | 2.12 |
|
| Bulk Biofuels | | — |
| | — |
| | — |
|
Terminalling throughputs (average bpd)(2) | | 75,438 |
| | 59,800 |
| | 77,760 |
|
(1) The information presented includes the results of operations for the year ended December 31, 2013, disaggregated to present the results of the Partnership for the year and the Tyler Terminal and tank Assets through July 26, 2013.
(2) Consists of terminalling throughputs at our Memphis and Nashville, Tennessee terminals, our North Little Rock Terminal and our Tyler Terminal. Throughputs for the North Little Rock Terminal are for the 69 days Delek operated the terminal following its acquisition in October 2013. Throughputs for the Tyler Terminal are for the 159 days following the Tyler Acquisition. Throughputs for the Tyler Predecessor are for the 206 days prior to our acquisition of the terminal. Barrels per day are calculated for only the days we operated each terminal. Total throughput barrels for the year ended December 31, 2013 were 14.9 million, which averaged 40,842 bpd for the 365 day period.
U.S. Investor / Media Relations Contact
Keith Johnson
Vice President of Investor Relations
615-435-1366
or
Chris Hodges
Founder & CEO
Alpha IR Group
312-445-2870
