Delek Logistics Partners (DKL) 10-Q 9 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 07, 2017
Entity Information [Line Items]
Entity Registrant Name	Delek Logistics Partners, LP
Entity Central Index Key	1,552,797
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Common unitholders [Member]
Entity Information [Line Items]
Entity Partnership Units Outstanding		24,361,457
General Partner [Member]
Entity Information [Line Items]
Entity Partnership Units Outstanding		497,172

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 5,290	$ 59
Accounts receivable	20,317	19,202
Accounts receivable from related parties	714	2,834
Inventory	7,891	8,875
Other current assets	37	1,071
Total current assets	34,249	32,041
Property, plant and equipment:
Property, plant and equipment	357,532	342,407
Less: accumulated depreciation	(106,880)	(91,378)
Property, plant and equipment, net	250,652	251,029
Equity method investments	106,098	101,080
Goodwill	12,203	12,203
Intangible assets, net	16,182	14,420
Other non-current assets	3,474	4,774
Total assets	422,858	415,547
Current liabilities:
Accounts payable	14,547	10,853
Excise and other taxes payable	3,376	4,841
Tank inspection liabilities	919	1,013
Pipeline release liabilities	1,000	1,097
Accrued expenses and other current liabilities	8,897	2,925
Total current liabilities	28,739	20,729
Non-current liabilities:
Long-term debt	401,318	392,600
Asset retirement obligations	3,991	3,772
Other non-current liabilities	14,568	11,730
Total non-current liabilities	419,877	408,102
Deficit:
Total deficit	(25,758)	(13,284)
Total liabilities and deficit	422,858	415,547
Common unitholders [Member] | Common unitholders - public; 9,067,411 units issued and outstanding at September 30, 2017 (9,263,415 at December 31, 2016) [Member]
Deficit:
Total deficit	175,831	188,013
Common unitholders [Member] | Common unitholders - Delek; 15,294,046 units issued and outstanding at September 30, 2017 (15,065,192 at December 31, 2016) [Member]
Deficit:
Total deficit	(195,217)	(195,076)
General partner - 497,172 units issued and outstanding at September 30, 2017 (496,502 at December 31, 2016) [Member]
Deficit:
Total deficit	$ (6,372)	$ (6,221)

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - shares	Sep. 30, 2017	Dec. 31, 2016
General partner - Delek, units issued	497,172	496,502
General partner - Delek, units outstanding	497,172	496,502
Common unitholders - public [Member]
Common unitholders, units issued	9,067,411	9,263,415
Common unitholders, units outstanding	9,067,411	9,263,415
Common unitholders - Delek [Member]
Common unitholders, units issued	15,294,046	15,065,192
Common unitholders, units outstanding	15,294,046	15,065,192

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net sales:
Affiliate		$ 40,131	$ 36,360	$ 116,574	$ 111,814
Third party		90,495	71,110	270,294	211,565
Net sales		130,626	107,470	386,868	323,379
Operating costs and expenses:
Cost of goods sold		89,120	73,527	266,749	213,381
Operating expenses		10,662	9,251	30,986	28,445
General and administrative expenses		2,751	2,307	8,255	7,918
Depreciation and amortization		5,462	5,356	16,397	15,164
(Gain) loss on asset disposals		(5)	28	2	(16)
Total operating costs and expenses		107,990	90,469	322,389	264,892
Operating income		22,636	17,001	64,479	58,487
Interest expense, net		7,124	3,409	16,657	9,892
(Income) loss from equity method investments		(1,584)	308	(3,005)	743
Other income, net		(1)	0	(1)	0
Total non-operating expenses		5,539	3,717	13,651	10,635
Income before income tax expense		17,097	13,284	50,828	47,852
Income tax expense		174	133	333	360
Net income attributable to partners		16,923	13,151	50,495	47,492
Comprehensive income attributable to partners		16,923	13,151	50,495	47,492
Less: General partner's interest in net income, including incentive distribution rights		4,745	3,259	13,406	8,303
Limited partners' interest in net income		$ 12,178	$ 9,892	$ 37,089	$ 39,189
Weighted average limited partner units outstanding:
Cash distributions per limited partner unit (in dollars per share)		$ 0.715	$ 0.655	$ 2.110	$ 1.895
Common Units [Member]
Net income per limited partner unit:
Common units - (basic) (in dollars per share)	[1]	0.50	0.41	1.52	1.61
Common units - (diluted) (in dollars per share)	[1]	$ 0.50	$ 0.41	$ 1.52	$ 1.60
Weighted average limited partner units outstanding:
Common units - (basic) (in shares)	[1]	24,361,457	24,303,740	24,341,921	21,878,935
Common units - (diluted) (in shares)	[1]	24,389,582	24,380,334	24,382,426	21,962,733
Subordinated unitholders - Delek [Member]
Net income per limited partner unit:
Subordinated units - Delek (basic and diluted) (in dollars per share)	[1]	$ 0	$ 0	$ 0	$ 1.64
Weighted average limited partner units outstanding:
Subordinated units - Delek (basic and diluted) (in shares)	[1]	0	0	0	2,408,610
[1]	We base our calculation of net income per unit on the weighted-average number of common and subordinated limited partner units outstanding during the period. The weighted-average number of common and subordinated units reflect the conversion of the subordinated units to common units on February 25, 2016. See Note 7 for further discussion.

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows ( Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 50,495	$ 47,492
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	16,397	15,164
Amortization of deferred revenue	(1,004)	(843)
Amortization of deferred financing costs and debt discount	1,438	1,095
Accretion of asset retirement obligations	219	199
Deferred income taxes	158	0
(Income) loss from equity method investments	(3,005)	743
Dividends from equity method investments	1,518	0
Loss (gain) on asset disposals	2	(16)
Unit-based compensation expense	545	414
Changes in assets and liabilities:
Accounts receivable	(1,115)	21,557
Inventories and other current assets	2,028	3,808
Accounts payable and other current liabilities	8,501	775
Accounts receivable/payable to related parties	2,092	(4,110)
Non-current assets and liabilities, net	(365)	483
Net cash provided by operating activities	77,904	86,761
Cash flows from investing activities:
Asset acquisitions	(6,443)	0
Purchases of property, plant and equipment	(9,187)	(5,633)
Proceeds from sales of property, plant and equipment	0	175
Purchases of intangible assets	(2,560)	0
Equity method investment contributions	(3,531)	(54,703)
Net cash used in investing activities	(21,721)	(60,161)
Cash flows from financing activities:
Proceeds from issuance of additional units to maintain 2% General Partner interest	21	15
Distributions to general partner	(12,839)	(6,861)
Distributions to common unitholders - public	(19,208)	(17,601)
Distributions to common unitholders - Delek	(31,555)	(15,578)
Distributions to subordinated unitholders - Delek	0	(11,503)
Proceeds from revolving credit facility	205,700	229,150
Payments of revolving credit facility	(439,500)	(205,750)
Proceeds from issuance of senior notes	248,112	0
Deferred financing costs paid	(5,937)	0
Reimbursement of capital expenditures by Delek	4,254	1,528
Net cash used in financing activities	(50,952)	(26,600)
Net increase in cash and cash equivalents	5,231	0
Cash and cash equivalents at the beginning of the period	59	0
Cash and cash equivalents at the end of the period	5,290	0
Cash paid during the period for:
Interest	9,288	8,902
Income taxes	60	0
Non-cash investing activities:
Decrease in accrued capital expenditures	(491)	(624)
Non-cash financing activities:
Sponsor contribution of fixed assets	$ 67	$ 609

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) (Parenthetical)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Cash Flows [Abstract]
General partner's ownership interest	2.00%	2.00%	2.00%	2.00%

Organization and Basis of Prese

Organization and Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	Organization and Basis of Presentation As used in this report, the terms "Delek Logistics Partners, LP," the "Partnership," "we," "us," or "our" may refer to Delek Logistics Partners, LP, one or more of its consolidated subsidiaries or all of them taken as a whole. The Partnership is a Delaware limited partnership formed in April 2012 by Old Delek (as defined below) and its subsidiary Delek Logistics GP, LLC, our general partner (our "general partner"). In January 2017, Delek US Holdings, Inc. ("Old Delek") (and various related entities) entered into an Agreement and Plan of Merger with Alon USA Energy, Inc. (NYSE: ALJ) ("Alon USA"), as subsequently amended on February 27 and April 21, 2017 (as so amended, the "Merger Agreement"). The related Merger (the "Delek/Alon Merger") was effective July 1, 2017 (the “Effective Time”), resulting in a new post-combination consolidated registrant renamed as Delek US Holdings, Inc. (“New Delek”), with Alon USA and Old Delek surviving as wholly-owned subsidiaries. New Delek is the successor issuer to Old Delek and Alon USA pursuant to Rule 12g-3(c) under the Securities Exchange Act of 1934 (the "Exchange Act"), as amended. Unless the context otherwise requires, references in this report to "Delek" refer collectively to Old Delek with respect to periods prior to July 1, 2017, or New Delek, with respect to periods on or after July 1, 2017, and any of Old Delek's or New Delek's, as applicable, subsidiaries, other than Delek Logistics Partners, LP and its subsidiaries and its general partner. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been condensed or omitted, although management believes that the disclosures herein are adequate to make the financial information presented not misleading. Our unaudited condensed consolidated financial statements have been prepared in conformity with U.S. GAAP applied on a consistent basis with those of the annual audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 (our "Annual Report on Form 10-K"), filed with the Securities and Exchange Commission (the "SEC") on February 28, 2017. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2016 included in our Annual Report on Form 10-K. In the opinion of management, all adjustments necessary for a fair presentation of the financial position and the results of operations for the interim periods presented have been included. All significant intercompany transactions and account balances have been eliminated in the consolidation. Such intercompany transactions do not include those with Delek or our general partner. All adjustments are of a normal, recurring nature. Operating results for the interim period should not be viewed as representative of results that may be expected for any future interim period or for the full year. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. New Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (the "FASB") issued guidance to refine and expand hedge accounting for both financial and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. This guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, and can be early adopted for any interim or annual financial statements that have not yet been issued. We expect to adopt this guidance on or before the effective date and are currently evaluating the impact that adopting this new guidance will have on our business, financial condition and results of operations. In May 2017, the FASB issued guidance that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The modification accounting guidance applies if the value, vesting conditions or classification of the award changes. This guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, and can be early adopted for any interim or annual financial statements that have not yet been issued. We expect to adopt this guidance on or before the effective date and are currently evaluating the impact that adopting this new guidance will have on our business, financial condition and results of operations. In January 2017, the FASB issued guidance that eliminates Step 2 of the goodwill impairment test, which required a comparison of the implied fair value of goodwill of a reporting unit with the carrying amount of that goodwill for that reporting unit. It also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative assessment, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We expect to adopt this guidance on or before the effective date and we do not anticipate that the adoption will have a material impact on our business, financial condition or results of operations. In January 2017, the FASB issued guidance clarifying the definition of a business in order to assist entities with evaluating when a set of transferred assets and activities is considered a business. In general, we expect that the revised definition will result in fewer acquisitions being accounted for as business combinations than under the current guidance. This guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted under certain circumstances. We early adopted this guidance as of July 1, 2017 and the adoption did not have a material impact on our business, financial condition or results of operations. In March 2016, the FASB issued guidance that simplifies several aspects of the accounting for share-based payment award transactions, including the accounting for excess tax benefits and deficiencies, classification of awards as either equity or liabilities and classification of excess tax benefits on the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and can be early adopted for any interim or annual financial statements that have not yet been issued. We prospectively adopted this guidance on January 1, 2017 and the adoption did not have a material impact on our business, financial condition or results of operations. In July 2015, the FASB issued guidance requiring entities to measure FIFO or average cost inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance does not change the measurement of inventory measured using LIFO or the retail inventory method. This guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. We adopted this guidance on January 1, 2017 and the adoption did not have a material impact on our business, financial condition or results of operations. In May 2014, the FASB issued guidance regarding “Revenue from Contracts with Customers,” to clarify the principles for recognizing revenue. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires improved interim and annual disclosures that enable the users of financial statements to better understand the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period, and can be adopted retrospectively. We will adopt this guidance on January 1, 2018. As part of our efforts to prepare for adoption, beginning in 2016, we formed a project implementation team as well as a project time-line to evaluate this new standard. We reviewed and gained an understanding of the new revenue recognition accounting guidance, performed scoping to identify and evaluate revenue streams under the new standard and continue to review industry specific implementation guidance. We are continuing to evaluate the impact of the standard on our business processes, accounting systems, controls and financial statement disclosures, and expect to implement any changes to accommodate the new accounting and disclosure requirements prior to adoption on January 1, 2018. We will use the modified retrospective adoption method to apply this standard, under which the cumulative effect of initially applying the new guidance will be recognized as an adjustment to the opening balance of retained earnings in the first quarter of 2018.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2017
Acquisitions [Abstract]
Acquisitions	Acquisitions On September 15, 2017 , the Partnership, through its wholly owned subsidiary Delek Marketing & Supply, LP acquired from Plains Pipeline, L.P. an approximate 40 -mile pipeline and related ancillary assets (the "Big Spring Pipeline") (such transaction, the "Big Spring Acquisition") for approximately $9.0 million to complement our existing asset base. The Big Spring Pipeline originates in Big Spring, Texas and terminates in Midland, Texas. The Big Spring Acquisition was accounted for as an asset acquisition. The following table summarizes the allocation of the relative fair value assigned to the asset groups for the Big Spring Pipeline (in thousands): Property, plant and equipment $ 6,443 Intangible assets (1) 2,560 Total $ 9,003 (1) Intangible assets acquired represent rights-of-way assets with indefinite useful lives. Rights-of-way assets are not subject to amortization.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Commercial Agreements The Partnership has a number of long-term, fee based commercial agreements with Delek under which we provide various services, including crude oil gathering and crude oil, intermediate and refined products transportation and storage services, and marketing, terminalling and offloading services to Delek. Most of these agreements have an initial term ranging from five to ten years, which may be extended for various renewal terms at the option of Delek. The initial terms for agreements effective in November 2012 were to expire in November 2017. Delek has opted to renew these agreements for subsequent five-year terms. In the case of our marketing agreement with Delek, the initial term has been extended through 2026. The fees under each agreement are payable to us monthly by Delek or certain third parties to whom Delek has assigned certain of its rights and are generally subject to increase or decrease on July 1 of each year, by the amount of any change in various inflation-based indices, including the Federal Energy Regulatory Commission oil pipeline index or various iterations of the consumer price index and the producer price index; provided, however, that in no event will the fees be adjusted below the amount initially set forth in the applicable agreement. See our Annual Report on Form 10-K for a more complete description of certain of our commercial agreements and other agreements with Delek. Omnibus Agreement. The Partnership entered into an omnibus agreement with Delek, our general partner, Delek Logistics Operating, LLC, Lion Oil Company and certain of the Partnership's and Delek's other subsidiaries on November 7, 2012, which was subsequently amended and restated on July 26, 2013, February 10, 2014 and March 31, 2015 in connection with our subsequent acquisitions of certain assets from Delek (collectively, as amended, the "Omnibus Agreement"). Additionally, the Partnership entered into an amendment to the Omnibus Agreement on August 3, 2015, with an effective date of April 1, 2015. This amendment eliminated a $1.0 million per event deductible that applied to certain asset failures before Delek was required to reimburse the Partnership. Pursuant to the terms of the Omnibus Agreement, we were reimbursed for certain capital expenditures in the amount of $0.4 million and $4.3 million during the three and nine months ended September 30, 2017 , respectively, and $0.7 million and $1.5 million during the three and nine months ended September 30, 2016 , respectively. These amounts are recorded in other long-term liabilities and are amortized to revenue over the life of the underlying revenue agreement corresponding to the asset. Ad ditionally, we were reimbursed or indemnified, as the case may be, for costs incurred in excess of certain amounts related to certain asset failures, pursuant to the terms of the Omnibus Agreeme nt. We were reimbursed $0.3 million for these matters during the nine months ended September 30, 2017 . During the three months ended September 30, 2017 , we recorded an adjustment of $(0.1) million for these matters. We were reimbursed $0.1 million and $1.2 million during the three and nine months ended September 30, 2016 , respectively, which are recorded as a reduction to operating expense. Summary of Transactions Revenues from affiliates consist primarily of revenues from gathering, transportation, storage, offloading, Renewable Identification Numbers, wholesale marketing, and products terminalling services provided primarily to Delek based on regulated tariff rates or contractually based fees and product sales to Alon USA. Affiliate operating expenses are primarily comprised of amounts we reimburse Delek or our general partner, as the case may be, for the services provided to us under the First Amended and Restated Agreement of Limited Partnership (the "Partnership Agreement"). These expenses could also include reimbursement and indemnification amounts from Delek, as provided under the Omnibus Agreement. Additionally, the Partnership is required to reimburse Delek for direct or allocated costs and expenses incurred by Delek on behalf of the Partnership and for charges Delek incurred for the management and operation of our logistics assets, including an annual fee for various centralized corporate services, which are included in general and administrative services. In addition to these transactions, we purchase finished products and bulk biofuels from Delek, the costs of which are included in cost of goods sold. A summary of revenue and expense transactions with Delek and its affiliates are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues $ 40,131 $ 36,360 $ 116,574 $ 111,814 Cost of goods sold $ 9,232 $ 5,247 $ 26,412 $ 24,064 Operating and maintenance expenses $ 7,275 $ 7,988 $ 20,756 $ 22,738 General and administrative expenses $ 2,073 $ 1,641 $ 5,327 $ 4,595 Quarterly Cash Distributions Our common and general partner unitholders and the holders of incentive distribution rights ("IDRs") are entitled to receive quarterly distributions of available cash as it is determined by the board of directors of our general partner in accordance with the terms and provisions of our Partnership Agreement. In February, May and August 2017 , we paid quarterly cash distributions of $20.5 million , $21.0 million and $21.8 million , respectively, of which $14.2 million , $14.7 million and $15.4 million , respectively, were paid to Delek and our general partner. In February, May and August 2016 , we paid quarterly cash distributions of $16.1 million , $17.1 million and $18.1 million , respectively, of which $10.5 million , $11.3 million and $12.1 million , respectively, were paid to Delek and our general partner. On October 25, 2017 , our general partner's board of directors declared a quarterly cash distribution totaling $22.3 million , based on the available cash as of the date of determination for the end of the third quarter of 2017 , payable on November 14, 2017 , of which $15.8 million is expected to be paid to Delek and our general partner, including the payment for the IDRs.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventory	Inventory Inventories consisted of $7.9 million and $8.9 million of refined petroleum products as of September 30, 2017 and December 31, 2016 , respectively. Inventory is stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis. We recognize lower of cost or net realizable value charges as a component of cost of goods sold in the consolidated statements of income and comprehensive income, which amounted to $0.3 million during both the three and nine months ended September 30, 2017 . There were no lower of cost or net realizable value charges during the three and nine months ended September 30, 2016 .

Long-Term Obligations

Long-Term Obligations	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Long-Term Obligations	Long-Term Obligations Second Amended and Restated Credit Agreement We entered into a senior secured revolving credit agreement on November 7, 2012 , with Fifth Third Bank, as administrative agent, and a syndicate of lenders. The agreement was amended and restated on July 9, 2013 (the "Amended and Restated Credit Agreement") and was most recently amended and restated on December 30, 2014 (the “Second Amended and Restated Credit Agreement”). Under the terms of the Second Amended and Restated Credit Agreement, the lender commitments were increased from $400.0 million to $700.0 million . The Second Amended and Restated Credit Agreement also contains an accordion feature whereby the Partnership can increase the size of the credit facility to an aggregate of $800.0 million , subject to receiving increased or new commitments from lenders and the satisfaction of certain other conditions precedent. The Second Amended and Restated Credit Agreement contains an option for Canadian dollar denominated borrowings. Borrowings denominated in U.S. dollars bear interest at either a U.S. dollar prime rate , plus an applicable margin, or the London Interbank Offered Rate (" LIBOR "), plus an applicable margin, at the election of the borrowers. Borrowings denominated in Canadian dollars bear interest at either a Canadian dollar prime rate , plus an applicable margin, or the Canadian Dealer Offered Rate , plus an applicable margin, at the election of the borrowers. The applicable margin in each case varies based upon the Partnership's most recent total leverage ratio calculation delivered to the lenders, as called for and defined under the terms of the credit facility. At September 30, 2017 , the weighted average interest rate for our borrowings under the facility was approximately 4.0% . Additionally, the Second Amended and Restated Credit Agreement requires us to pay a leverage ratio dependent quarterly fee on the average unused revolving commitment. As of September 30, 2017 , this fee was 0.5% per year. The obligations under the Second Amended and Restated Credit Agreement remain secured by first priority liens on substantially all of the Partnership's and its subsidiaries' tangible and intangible assets. Additionally, Delek Marketing & Supply, LLC ("Delek Marketing"), a direct wholly owned subsidiary of Delek, continues to provide a limited guaranty of the Partnership's obligations under the Second Amended and Restated Credit Agreement. Delek Marketing's guaranty is (i) limited to an amount equal to the principal amount, plus unpaid and accrued interest, of a promissory note made by Delek US in favor of Delek Marketing (the "Holdings Note") and (ii) secured by Delek Marketing's pledge of the Holdings Note to our lenders under the Second Amended and Restated Credit Agreement. As of September 30, 2017 , the principal amount of the Holdings Note was $102.0 million , plus unpaid interest accrued since the issuance date. The Second Amended and Restated Credit Agreement matures on December 30, 2019 . As of September 30, 2017 , we had $158.8 million in outstanding borrowings under the Second Amended and Restated Credit Agreement. Additionally, we had in place letters of credit totaling $8.5 million , primarily securing obligations with respect to gasoline and diesel purchases. No amounts were drawn under these letters of credit at September 30, 2017 . Unused credit commitments under the Second Amended and Restated Credit Agreement as of September 30, 2017 were $532.7 million . 6.75% Senior Notes Due 2025 On May 23, 2017, the Partnership and Delek Logistics Finance Corp., a Delaware corporation and a wholly owned subsidiary of the Partnership (“Finance Corp.” and together with the Partnership, the “Issuers”), issued $250.0 million in aggregate principal amount of 6.750% senior notes due 2025 (the “2025 Notes”) at a discount. The 2025 Notes are general unsecured senior obligations of the Issuers. The 2025 Notes are unconditionally guaranteed jointly and severally on a senior unsecured basis by the Partnership's existing subsidiaries (other than Finance Corp., the "Guarantors") and will be unconditionally guaranteed on the same basis by certain of the Partnership’s future subsidiaries. The 2025 Notes rank equal in right of payme nt with all existing and future senior indebtedness of the Issuers, and senior in right of payment to any future subordinated indebtedness of the Issuers. Interest on the 2025 Notes is payable semi-annually in arrears on each May 15 and November 15, commencing November 15, 2017. At any time prior to May 15, 2020, the Issuers may redeem up to 35% of the aggregate principal amount of the 2025 Notes with the net cash proceeds of one or more equity offerings by the Partnership at a redemption price of 106.750% of the redeemed principal amount, plus accrued and unpaid interest, if any, subject to certain conditions and limitations. Prior to May 15, 2020, the Issuers may redeem all or part of the 2025 Notes, at a redemption price of the principal amount, plus accrued and unpaid interest, if any, plus a "make whole" premium, subject to certain conditions and limitations. In addition, beginning on May 15, 2020, th e Issuers may, subject to certain conditions and limitations, redeem all or part of the 2025 Notes at a redemption price of 105.063% for the twelve-month period beginning on May 15, 2020, 103.375% for the twelve-month period beginning on May 15, 2021, 101.688% for the twelve-month period beginning on May 15, 2022 and 100.00% beginning on May 15, 2023 and thereafter, plus accrued and unpaid interest, if any. There are also certain redemption provisions in the event of a change of control, accompanied or followed by a ratings downgrade within a certain period of time, subject to certain conditions and limitations. In connection with the issuance of the 2025 Notes, the Issuers and the Guarantors entered into a registration rights agreement, whereby the Issuers and the Guarantors are required to exchange the 2025 Notes for new notes with terms substantially identical in all material respects with the 2025 Notes (except the new notes will not contain terms with respect to transfer restrictions). The Issuers and the Guarantors will use their commercially reasonable efforts to cause the exchange offer to be consummated not later than 365 days after May 23, 2017. As of September 30, 2017 , we had $250.0 million in outstanding principal amount of the 2025 Notes. Outstanding borrowings under the 2025 Notes are net of deferred financing costs and debt discount of $5.7 million and $1.8 million , respectively, as of September 30, 2017 .

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For tax purposes, each partner of the Partnership is required to take into account its share of income, gain, loss and deduction in computing its federal and state income tax liabilities, regardless of whether cash distributions are made to such partner by the Partnership. The taxable income reportable to each partner takes into account differences between the tax basis and fair market value of our assets, the acquisition price of such partner's units and the taxable income allocation requirements under our Partnership Agreement.

Net Income Per Unit

Net Income Per Unit	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Net Income Per Unit	Net Income Per Unit We use the two-class method when calculating the net income per unit applicable to limited partners because we have more than one participating class of securities. Our participating securities consist of common units, subordinated units, general partner units and IDRs. The two-class method is based on the weighted-average number of common units outstanding during the period. Basic net income per unit applicable to limited partners (including subordinated unitholders) is computed by dividing limited partners’ interest in net income, after deducting our general partner’s 2% interest and IDRs, by the weighted-average number of outstanding common and subordinated units. Our net income is allocated to our general partner and limited partners in accordance with their respective partnership percentages after giving effect to priority income allocations for IDRs, which are held by our general partner pursuant to our Partnership Agreement. The IDRs are paid following the close of each quarter. Earnings in excess of distributions are allocated to our general partner and limited partners based on their respective ownership interests. Payments made to our unitholders are determined in relation to actual distributions declared and are not based on the net income allocations used in the calculation of net income per unit. Diluted net income per unit applicable to common limited partners includes the effects of potentially dilutive units on our common units. At present, the only potentially dilutive units outstanding consist of unvested phantom units. Basic and diluted net income per unit applicable to subordinated limited partners are the same because there are no potentially dilutive subordinated units outstanding. Following the February 12, 2016 payment of the cash distribution attributable to the fourth quarter of 2015 and confirmation by the board of directors of our general partner (based on the recommendation of the Conflicts Committee) on February 25, 2016 that the requirements under the Partnership Agreement for the conversion of all subordinated units into common units were satisfied, the subordination period ended. As a result, in the first quarter of 2016, all of the Partnership's 11,999,258 outstanding subordinated units converted into common units and began participating pro rata with the other common units in distributions of available cash. The conversion did not impact the amount of the cash distribution paid or the total number of the Partnership's outstanding units representing limited partner interests. The Partnership's net income was allocated to the general partner and the limited partners, including the holders of the subordinated units through February 24, 2016, in accordance with our Partnership Agreement. Our distributions earned with respect to a given period are declared subsequent to quarter end. Therefore, the table below represents total cash distributions applicable to the period in which the distributions are earned. The expected date of distribution for the distributions earned during the period ended September 30, 2017 is November 14, 2017 . The calculation of net income per unit is as follows (dollars in thousands, except units and per unit amounts): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net income attributable to partners $ 16,923 $ 13,151 $ 50,495 $ 47,492 Less: General partner's distribution (including IDRs) (1) 4,852 3,382 13,697 8,443 Less: Limited partners' distribution 17,418 15,920 51,380 41,615 Less: Subordinated partner's distribution — — — 4,424 Distributions (in excess of) less than earnings $ (5,347 ) $ (6,151 ) $ (14,582 ) $ (6,990 ) General partner's earnings: Distributions (including IDRs) (1) $ 4,852 $ 3,382 $ 13,697 $ 8,443 Allocation of distributions (in excess of) less than earnings (107 ) (123 ) (291 ) (140 ) Total general partner's earnings $ 4,745 $ 3,259 $ 13,406 $ 8,303 Limited partners' earnings on common units: Distributions $ 17,418 $ 15,920 $ 51,380 $ 41,615 Allocation of distributions (in excess of) less than earnings (5,240 ) (6,028 ) (14,291 ) (6,368 ) Total limited partners' earnings on common units $ 12,178 $ 9,892 $ 37,089 $ 35,247 Limited partners' earnings on subordinated units: Distributions $ — $ — $ — $ 4,424 Allocation of distributions in excess of earnings — — — (482 ) Total limited partners' earnings on subordinated units $ — $ — $ — $ 3,942 Weighted average limited partner units outstanding (2) : Common units - (basic) 24,361,457 24,303,740 24,341,921 21,878,935 Common units - (diluted) 24,389,582 24,380,334 24,382,426 21,962,733 Subordinated units - Delek (basic and diluted) (3) — — — 2,408,610 Net income per limited partner unit (2) : Common units - (basic) $ 0.50 $ 0.41 $ 1.52 $ 1.61 Common units - (diluted) (4) $ 0.50 $ 0.41 $ 1.52 $ 1.60 Subordinated units - Delek (basic and diluted) $ — $ — $ — $ 1.64 (1) General partner distributions (including IDRs) consist of the 2% general partner interest and IDRs, which represent the right of the general partner to receive increasing percentages of quarterly distributions of available cash from operating surplus in excess of $0.43125 per unit per quarter. See Note 8 for further discussion related to IDRs. (2) We base our calculation of net income per unit on the weighted-average number of common and subordinated limited partner units outstanding during the period. The weighted-average number of common and subordinated units reflects the conversion of the subordinated units to common units on February 25, 2016. (3) On February 25, 2016, each of the Partnership's 11,999,258 outstanding subordinated units converted into common units and began participating pro rata with the other common units in distributions of available cash. Distributions and the Partnership's net income were allocated to the subordinated units through February 24, 2016. (4) Outstanding common unit equivalents totaling 10,090 were excluded from the diluted earnings per unit calculation for the nine months ended September 30, 2017 . There were no outstanding common unit equivalents excluded from the diluted earnings per unit calculation for the three months ended September 30, 2017 . Outstanding common unit equivalents of 6,540 were excluded from the diluted earnings per unit calculation for both the three and nine months ended September 30, 2016 , as these common unit equivalents did not have a dilutive effect under the treasury stock method.

Equity

Equity	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Equity	Equity We had 9,067,411 common limited partner units held by the public outstanding as of September 30, 2017 . Additionally, as of September 30, 2017 , Delek owned a 61.5% limited partner interest in us, consisting of 15,294,046 common limited partner units and a 94.6% interest in our general partner, which owns the entire 2.0% general partner interest consisting of 497,172 general partner units. Affiliates who are also members of our general partner's management and board of directors own the remaining 5.4% interest in our general partner. Equity Activity The table below summarizes the changes in the number of units outstanding from December 31, 2016 through September 30, 2017 . Common - Public Common - Delek General Partner Total Balance at December 31, 2016 9,263,415 15,065,192 496,502 24,825,109 General partner units issued to maintain 2% interest — — 670 670 Unit-based compensation awards 32,850 — — 32,850 Delek unit repurchases from public (228,854 ) 228,854 — — Balance at September 30, 2017 9,067,411 15,294,046 497,172 24,858,629 The summarized changes in the carrying amount of our equity from December 31, 2016 through September 30, 2017 are as follows (in thousands): Common - Public Common - Delek General Partner Total Balance at December 31, 2016 $ 188,013 $ (195,076 ) $ (6,221 ) $ (13,284 ) Cash distributions (19,208 ) (31,555 ) (12,839 ) (63,602 ) Sponsor contribution of fixed assets — 65 2 67 Net income attributable to partners 13,837 23,252 13,406 50,495 Unit-based compensation 480 806 (741 ) 545 Delek unit repurchases from public (7,291 ) 7,291 — — General partner units issued to maintain 2% interest — — 21 21 Balance at September 30, 2017 $ 175,831 $ (195,217 ) $ (6,372 ) $ (25,758 ) Allocations of Net Income Our Partnership Agreement contains provisions for the allocation of net income and loss to the unitholders and our general partner. For purposes of maintaining partner capital accounts, the Partnership Agreement specifies that items of income and loss shall be allocated among the partners in accordance with their respective percentage interest. Normal allocations according to percentage interests are made after giving effect to priority income allocations in an amount equal to incentive cash distributions allocated 100% to our general partner. The following table presents the allocation of the general partner's interest in net income (in thousands, except percentage of ownership interest): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net income attributable to partners $ 16,923 $ 13,151 $ 50,495 $ 47,492 Less: General partner's IDRs (4,496 ) (3,057 ) (12,649 ) (7,503 ) Net income available to partners $ 12,427 $ 10,094 $ 37,846 $ 39,989 General partner's ownership interest 2.0 % 2.0 % 2.0 % 2.0 % General partner's allocated interest in net income $ 249 $ 202 $ 757 $ 800 General partner's IDRs 4,496 3,057 12,649 7,503 Total general partner's interest in net income $ 4,745 $ 3,259 $ 13,406 $ 8,303 Incentive Distribution Rights The following table illustrates the percentage allocations of available cash from operating surplus between the unitholders and our general partner based on the specified target distribution levels. The amounts set forth under “Marginal Percentage Interest in Distributions” are the percentage interests of our general partner and our unitholders in any available cash from operating surplus that we distribute up to and including the corresponding amount in the column “Total Quarterly Distribution per Unit Target Amount.” The percentage interests shown for our unitholders and our general partner for the minimum quarterly distribution are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests set forth below for our general partner include its 2.0% general partner interest and assume that (i) our general partner has contributed any additional capital necessary to maintain its 2.0% general partner interest, (ii) our general partner has not transferred its IDRs, and (iii) there are no arrearages on common units. Target Quarterly Distribution per Unit Marginal Percentage Interest in Distributions Target Amount Unitholders General Partner Minimum Quarterly Distribution $ 0.37500 98.0 % 2.0 % First Target Distribution above $ 0.37500 98.0 % 2.0 % up to $ 0.43125 Second Target Distribution above $ 0.43125 85.0 % 15.0 % up to $ 0.46875 Third Target Distribution above $ 0.46875 75.0 % 25.0 % up to $ 0.56250 Thereafter thereafter $ 0.56250 50.0 % 50.0 % Cash Distributions Our Partnership Agreement sets forth the calculation to be used to determine the amount and priority of available cash distributions that our limited partner unitholders and general partner will receive. Our distributions earned with respect to a given period are declared subsequent to quarter end. The table below summarizes the quarterly distributions related to our quarterly financial results: Quarter Ended Total Quarterly Distribution Per Limited Partner Unit Total Quarterly Distribution Per Limited Partner Unit, Annualized Total Cash Distribution, including general partner interest and IDRs (in thousands) Date of Distribution Unitholders Record Date September 30, 2016 $ 0.655 $ 2.62 $ 19,302 November 14, 2016 November 7, 2016 December 31, 2016 $ 0.680 $ 2.72 $ 20,537 February 14, 2017 February 3, 2017 March 31, 2017 $ 0.690 $ 2.76 $ 21,024 May 12, 2017 May 5, 2017 June 30, 2017 $ 0.705 $ 2.82 $ 21,783 August 11, 2017 August 4, 2017 September 30, 2017 $ 0.715 $ 2.86 $ 22,270 November 14, 2017 (1) November 7, 2017 (1) Expected date of distribution. The allocation of total quarterly cash distributions expected to be made on November 14, 2017 to general and limited partners for the three and nine months ended September 30, 2017 and the allocation of total quarterly cash distributions for the three and nine months ended September 30, 2016 are set forth in the table below. Distributions earned with respect to a given period are declared subsequent to quarter end. Therefore, the table below presents total cash distributions applicable to the period in which the distributions are earned (in thousands, except per unit amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 General partner's distributions: General partner's distributions $ 356 $ 325 $ 1,048 $ 940 General partner's IDRs 4,496 3,057 12,649 7,503 Total general partner's distributions 4,852 3,382 13,697 8,443 Limited partners' distributions: Common 17,418 15,920 51,380 41,615 Subordinated — — — 4,424 Total limited partners' distributions 17,418 15,920 51,380 46,039 Total cash distributions $ 22,270 $ 19,302 $ 65,077 $ 54,482 Cash distributions per limited partner unit $ 0.715 $ 0.655 $ 2.110 $ 1.895

Equity Based Compensation

Equity Based Compensation	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Equity Based Compensation	Equity Based Compensation We incurred approximately $0.2 million and $0.5 million of unit-based compensation expense related to the Partnership during the three and nine months ended September 30, 2017 , respectively, and $0.2 million and $0.4 million during the three and nine months ended September 30, 2016 , respectively. These amounts are included in general and administrative expenses in the accompanying condensed consolidated statements of income and comprehensive income. The fair value of phantom unit awards under the Delek Logistics GP, LLC 2012 Long-Term Incentive Plan (the "LTIP") is determined based on the closing price of our common limited partner units on the grant date. The estimated fair value of our phantom units is amortized over the vesting period using the straight line method. Awards vest over one - to five -year service periods, unless such awards are amended in accordance with the LTIP. As of September 30, 2017 , there was $0.5 million of total unrecognized compensation cost related to non-vested equity-based compensation arrangements, which is expected to be recognized over a weighted-average period of 1.2 years.

Equity Method Investments

Equity Method Investments	9 Months Ended
	Sep. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments	Equity Method Investments In March 2015, we entered into two joint ventures that have constructed separate crude oil pipeline systems and related ancillary assets, which are serving third parties and subsidiaries of Delek. We own a 50% membership interest in the entity formed with an affiliate of Plains All American Pipeline, L.P. ("CP LLC") to operate one of these pipeline systems and a 33% membership interest in the entity formed with Rangeland Energy II, LLC ("Rangeland RIO") to operate the other pipeline system. The pipeline system constructed by Rangeland RIO was completed and began operations in September 2016. The pipeline system constructed by CP LLC was completed and began operations in January 2017. The Partnership's investments in these two entities were financed through a combination of cash from operations and borrowings under the Second Amended and Restated Credit Agreement. As of September 30, 2017 , the Partnership's investment balance in these joint ventures was $106.1 million . We do not consolidate any part of the assets or liabilities or operating results of our equity method investees. Our share of net income or loss of the investees will increase or decrease, as applicable, the carrying value of our investments in unconsolidated affiliates. With respect to CP LLC and Rangeland RIO, we determined that these entities do not represent variable interest entities and consolidation was not required. We have the ability to exercise significant influence over each of these joint ventures through our participation in the management committees, which make all significant decisions. However, since all significant decisions require the consent of the other investor(s) without regard to economic interest, we have determined that we have joint control and have applied the equity method of accounting. Our investment in these joint ventures is reflected in our pipelines and transportation segment. Summarized Financial Information Combined summarized financial information for our equity method investees is shown below (in thousands): September 30, 2017 December 31, 2016 Current assets $ 11,333 $ 7,760 Noncurrent assets $ 244,615 $ 237,516 Current liabilities $ 1,482 $ 4,512 Noncurrent liabilities $ 165 $ — Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues $ 7,026 $ 226 $ 19,719 $ 229 Gross profit $ 7,026 $ 226 $ 19,719 $ 229 Net income (loss) $ 2,282 $ (1,538 ) $ 6,674 $ (2,857 )

Segment Data

Segment Data	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Segment Data	Segment Data We aggregate our operating segments into two reportable segments: (i) pipelines and transportation and (ii) wholesale marketing and terminalling: • The assets and investments reported in the pipelines and transportation segment provide crude oil gathering and crude oil, intermediate and finished products transportation and storage services to Delek's refining operations and independent third parties. • The wholesale marketing and terminalling segment provides wholesale marketing and terminalling services to Delek's refining operations and independent third parties. Our operating segments adhere to the accounting policies used for our consolidated financial statements. Our operating segments are managed separately because each segment requires different industry knowledge, technology and marketing strategies. Decisions concerning the allocation of resources and assessment of operating performance are made based on this segmentation. Management measures the operating performance of each of its reportable segments based on segment contribution margin. Segment contribution margin is defined as net sales less cost of goods sold and operating expenses. The following is a summary of business segment operating performance as measured by contribution margin for the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Pipelines and Transportation Net sales: Affiliate $ 27,805 $ 25,238 $ 81,972 $ 77,680 Third party 3,177 3,388 7,910 15,739 Total pipelines and transportation 30,982 28,626 89,882 93,419 Operating costs and expenses: Cost of goods sold 4,883 4,811 13,691 14,401 Operating expenses 8,573 7,678 24,661 22,317 Segment contribution margin $ 17,526 $ 16,137 $ 51,530 $ 56,701 Capital spending (excluding business combinations) $ 2,918 $ 2,613 $ 6,715 $ 4,037 Wholesale Marketing and Terminalling Net sales: Affiliate $ 12,326 $ 11,122 $ 34,602 $ 34,134 Third party 87,318 67,722 262,384 195,826 Total wholesale marketing and terminalling 99,644 78,844 296,986 229,960 Operating costs and expenses: Cost of goods sold 84,237 68,716 253,058 198,980 Operating expenses 2,089 1,573 6,325 6,128 Segment contribution margin $ 13,318 $ 8,555 $ 37,603 $ 24,852 Capital spending (excluding business combinations) $ 868 $ 464 $ 1,981 $ 972 Consolidated Net sales: Affiliate $ 40,131 $ 36,360 $ 116,574 $ 111,814 Third party 90,495 71,110 270,294 211,565 Total consolidated 130,626 107,470 386,868 323,379 Operating costs and expenses: Cost of goods sold 89,120 73,527 266,749 213,381 Operating expenses 10,662 9,251 30,986 28,445 Contribution margin 30,844 24,692 89,133 81,553 General and administrative expenses 2,751 2,307 8,255 7,918 Depreciation and amortization 5,462 5,356 16,397 15,164 (Gain) loss on asset disposals (5 ) 28 2 (16 ) Operating income $ 22,636 $ 17,001 $ 64,479 $ 58,487 Capital spending (excluding business combinations) $ 3,786 $ 3,077 $ 8,696 $ 5,009 The following table summarizes the total assets for each segment as of September 30, 2017 and December 31, 2016 (in thousands). September 30, 2017 December 31, 2016 Pipelines and transportation $ 344,260 $ 337,349 Wholesale marketing and terminalling 78,598 78,198 Total assets $ 422,858 $ 415,547 Property, plant and equipment and accumulated depreciation as of September 30, 2017 and depreciation expense by reporting segment for the three and nine months ended September 30, 2017 were as follows (in thousands): Pipelines and Transportation Wholesale Marketing and Terminalling Consolidated Property, plant and equipment $ 292,116 $ 65,416 $ 357,532 Less: accumulated depreciation (80,008 ) (26,872 ) (106,880 ) Property, plant and equipment, net $ 212,108 $ 38,544 $ 250,652 Depreciation expense for the three months ended September 30, 2017 $ 4,257 $ 940 $ 5,197 Depreciation expense for the nine months ended September 30, 2017 $ 12,821 $ 2,779 $ 15,600 In accordance with ASC 360, Property, Plant & Equipment , we evaluate the realizability of property, plant and equipment as events occur that might indicate potential impairment. There were no indicators of impairment of our property, plant and equipment as of September 30, 2017 .

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The fair values of financial instruments are estimated based upon current market conditions and quoted market prices for the same or similar instruments. Management estimates that the carrying value approximates fair value for all of our assets and liabilities that fall under the scope of ASC 825, Financial Instruments . We apply the provisions of ASC 820, which defines fair value, establishes a framework for its measurement and expands disclosures about fair value measurements. ASC 820 applies to commodity and interest rate derivatives that are measured at fair value on a recurring basis. The standard also requires that we assess the impact of nonperformance risk on our derivatives. Nonperformance risk is not considered material as of September 30, 2017 . ASC 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly through market-corroborated inputs. Level 3 inputs are unobservable inputs for the asset or liability reflecting our assumptions about pricing by market participants. Over the counter ("OTC") commodity swaps and any interest rate swaps and caps are generally valued using industry-standard models that consider various assumptions, including quoted forward prices, spot prices, interest rates, time value, volatility factors and contractual prices for the underlying instruments, as well as other relevant economic measures. The degree to which these inputs are observable in the forward markets determines the classification as Level 2 or 3. Our contracts are valued based on exchange pricing and/or price index developers such as Platts or Argus and are, therefore, classified as Level 2. The fair value hierarchy for our financial assets and liabilities accounted for at fair value on a recurring basis at September 30, 2017 and December 31, 2016 was as follows (in thousands): As of September 30, 2017 Level 1 Level 2 Level 3 Total Assets OTC commodity swaps $ — $ 88 $ — $ 88 Total assets — 88 — 88 Liabilities OTC commodity swaps — — — — Net assets $ — $ 88 $ — $ 88 As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets OTC commodity swaps $ — $ 9 $ — $ 9 Total assets — 9 — 9 Liabilities OTC commodity swaps — (82 ) — (82 ) Net liabilities $ — $ (73 ) $ — $ (73 ) The derivative values above are based on analysis of each contract as the fundamental unit of account as required by ASC 820. Derivative assets and liabilities with the same counterparty are not netted where the legal right of offset exists. This differs from the presentation in the financial statements which reflects our policy under the guidance of ASC 815-10-45, wherein we have elected to offset the fair value amounts recognized for multiple derivative instruments executed with the same counterparty where the legal right of offset exists. As of September 30, 2017 and December 31, 2016 , we had a cash deficit of $0.7 million and $0.6 million , respectively, netted with the net derivative position of our counterparty. See Note 13 for further information regarding derivative instruments.

Derivative Instruments

Derivative Instruments	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments From time to time, we enter into forward fuel contracts to limit the exposure to price fluctuations for physical purchases of finished products in the normal course of business. We use derivatives to reduce normal operating and market risks with a primary objective in derivative instrument use being the reduction of the impact of market price volatility on our results of operations. Typically, we enter into forward fuel contracts with major financial institutions in which we fix the purchase price of finished grade fuel for a predetermined number of units with fulfillment terms of less than 90 days. From time to time, we may also enter into interest rate hedging agreements to limit floating interest rate exposure under the Second Amended and Restated Credit Agreement. Our initial credit facility required us to maintain interest rate hedging arrangements on at least 50% of the amount funded on November 7, 2012 under the credit facility, which was required to be in place for at least a three -year period beginning no later than March 7, 2013. Accordingly, effective February 25, 2013 , we entered into an interest rate hedge in the form of a LIBOR interest rate cap for a term of three years for a total notional amount of $45.0 million , thereby meeting the requirements in effect at that time. These requirements were eliminated in connection with the Amended and Restated Credit Agreement in July 2013, but the interest rate hedge remained in place in accordance with its term through its maturity date in February 2016. The following table presents the fair value of our derivative instruments as of September 30, 2017 and December 31, 2016 . The fair value amounts below are presented on a gross basis and do not reflect the netting of asset and liability positions permitted under our master netting arrangements, including any cash deficit or collateral on deposit with our counterparties. We have elected to offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements. As a result, the asset and liability amounts below may differ from the amounts presented in our accompanying consolidated balance sheets. During the three and nine months ended September 30, 2017 and 2016 , we did not elect hedge accounting treatment for these derivative positions. As a result, all changes in fair value are marked to market in the accompanying condensed consolidated statements of income and comprehensive income. See Note 12 for further information regarding the fair value of derivative instruments. (in thousands) September 30, 2017 December 31, 2016 Derivative Type Balance Sheet Location Assets Liabilities Assets Liabilities Derivatives: OTC commodity swaps (1) Other current assets $ 88 $ — $ 9 $ (82 ) Total gross value of derivatives 88 — 9 (82 ) Less: Counterparty netting and cash collateral (2) 88 585 9 621 Total net fair value of derivatives $ — $ (585 ) $ — $ (703 ) (1) As of September 30, 2017 and December 31, 2016 , we had open derivative contracts representing 96,000 barrels and 93,000 barrels, respectively, of refined petroleum products. (2) As of September 30, 2017 and December 31, 2016 , we had a cash deficit of $0.7 million and $0.6 million , respectively, netted with the net derivative position of our counterparty. Recognized gains (losses) associated with our derivatives for the three and nine months ended September 30, 2017 and 2016 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Derivative Type Income Statement Location 2017 2016 2017 2016 Interest rate derivatives Interest expense $ — $ — $ — $ — Commodity derivatives Cost of goods sold $ (1,474 ) $ (255 ) $ (358 ) $ (1,714 ) Total $ (1,474 ) $ (255 ) $ (358 ) $ (1,714 )

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation In the ordinary conduct of our business, we are from time to time subject to lawsuits, investigations and claims, including environmental claims and employee-related matters. Although we cannot predict with certainty the ultimate resolution of lawsuits, investigations and claims asserted against us, including civil penalties or other enforcement actions, we do not believe that any currently pending legal proceeding or proceedings to which we are a party will have a material adverse effect on our business, financial condition or results of operations. See "Crude Oil Releases" below for a potential enforcement action. Environmental, Health and Safety We are subject to extensive and periodically changing federal, state and local laws and regulations relating to the protection of the environment, health and safety. Among other things, these laws and regulations govern the emission or discharge of pollutants into or onto the land, air and water, the handling and disposal of solid and hazardous wastes and the remediation of contamination and the protection of workers and the public. Compliance with existing and anticipated environmental laws and regulations increases our overall cost of business, including our capital costs to develop, maintain, operate and upgrade equipment and facilities. Numerous permits or other authorizations are required under these laws for the operation of our terminals, pipelines, and related operations, and may be subject to revocation, modification and renewal. These laws and permits may become the basis for future claims and lawsuits involving environmental and safety matters, which could include soil and water contamination, air pollution, personal injury and property damage allegedly caused by substances which we manufactured, handled, used, released or disposed of, or that relate to pre-existing conditions for which we have assumed or are assigned responsibility. Releases of hydrocarbons or hazardous substances into the environment could, to the extent the event is not insured or a reimbursable event under the Omnibus Agreement, subject us to substantial expenses, including costs to respond to, contain and remediate a release, to comply with applicable laws and regulations and to resolve claims by third parties for personal injury, property damage, or natural resources damages. These impacts could directly and indirectly affect our business. We cannot currently determine the amounts of such future impacts; however, we accrue liabilities for such events when we are able to determine if an amount is probable and can be reasonably estimated. Crude Oil Releases We have experienced several crude oil releases involving our assets, including, but not limited to, the following releases: • In January 2016, a crude oil release of less than 30 barrels occurred from a gathering line at the Modisette pumping station near El Dorado, Arkansas; • In January 2016, a crude oil release of approximately 350 barrels occurred from the Paline Pipeline near Woodville, Texas (the "Paline Release"); and • In March 2013, a release of approximately 5,900 barrels of crude oil, the majority of which was contained on-site, occurred from a pumping facility at our Magnolia Station located west of the El Dorado Refinery (the "Magnolia Release"). Cleanup operations and site maintenance and remediation efforts on these and other releases have been substantially completed. We may incur additional expenses as a result of further scrutiny by regulatory authorities and continued compliance with laws and regulations to which our assets are subject. Expenses incurred for the remediation of these crude oil releases are included in operating expenses in our consolidated statements of income and comprehensive income and are subsequently reimbursed by Delek pursuant to the terms of the Omnibus Agreement. Reimbursements are recorded as a reduction to operating expense. We do not believe the total costs associated with these events, whether alone or in the aggregate, including any fines or penalties and net of partial insurance reimbursement, will have a material adverse effect upon our business, financial condition or results of operations as we are reimbursed by Delek for such costs. In June 2015, the United States Department of Justice notified the Partnership that it was evaluating an enforcement action on behalf of the Environmental Protection Agency (the "EPA") with regard to potential Clean Water Act violations arising from the Magnolia Release. We are currently attempting to negotiate a resolution to this matter with the EPA and the State of Arkansas, which may include monetary penalties and/or other relief. As of September 30, 2017 , we have accrued $1.0 million , which we have recorded in pipeline release liabilities in our condensed consolidated balance sheet, for the Magnolia Release in connection with these proceedings. Contracts and Agreements The majority of the petroleum products we sell in west Texas are purchased from Noble Petro, Inc. ("Noble Petro"). Under the terms of a supply contract (the "Abilene Contract") with Noble Petro, we have the right to purchase up to 20,350 bpd of petroleum products at the Abilene, Texas terminal, which we own, for sales and exchange with third parties at the Abilene and San Angelo terminals. We lease the Abilene and San Angelo, Texas terminals to Noble Petro, under a separate Terminal and Pipeline Lease and Operating Agreement, with a term that runs concurrently with that of the Abilene Contract. The Abilene Contract expires on December 31, 2017 and does not include any options for renewal. We also purchase spot barrels from various third parties and from Delek for sale to wholesale customers in west Texas. Letters of Credit As of September 30, 2017 , we had in place letters of credit totaling $8.5 million under the Second Amended and Restated Credit Agreement, primarily securing obligations with respect to gasoline and diesel purchases. No amounts were drawn under these letters of credit at September 30, 2017 . Operating Leases We lease certain equipment and have surface leases under various operating lease arrangements, most of which provide the option, after the initial lease term, to renew the leases. None of these lease arrangements include fixed rental rate increases. Lease expense for all operating leases totaled $1.4 million and $4.1 million for the three and nine months ended September 30, 2017 , respectively, and $1.3 million and $4.4 million for the three and nine months ended September 30, 2016 , respectively.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Distribution Declaration On October 25, 2017 , our general partner's board of directors declared a quarterly cash distribution of $0.715 per limited partner unit, payable on November 14, 2017 , to unitholders of record on November 7, 2017 .

Organization and Basis of Pre22

Organization and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") have been condensed or omitted, although management believes that the disclosures herein are adequate to make the financial information presented not misleading. Our unaudited condensed consolidated financial statements have been prepared in conformity with U.S. GAAP applied on a consistent basis with those of the annual audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 (our "Annual Report on Form 10-K"), filed with the Securities and Exchange Commission (the "SEC") on February 28, 2017. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2016 included in our Annual Report on Form 10-K.
Consolidation	In the opinion of management, all adjustments necessary for a fair presentation of the financial position and the results of operations for the interim periods presented have been included. All significant intercompany transactions and account balances have been eliminated in the consolidation. Such intercompany transactions do not include those with Delek or our general partner. All adjustments are of a normal, recurring nature. Operating results for the interim period should not be viewed as representative of results that may be expected for any future interim period or for the full year.
Use of Estimates	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
New Accounting Pronouncements	In August 2017, the Financial Accounting Standards Board (the "FASB") issued guidance to refine and expand hedge accounting for both financial and commodity risks. Its provisions create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. It also makes certain targeted improvements to simplify the application of hedge accounting guidance. This guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, and can be early adopted for any interim or annual financial statements that have not yet been issued. We expect to adopt this guidance on or before the effective date and are currently evaluating the impact that adopting this new guidance will have on our business, financial condition and results of operations. In May 2017, the FASB issued guidance that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The modification accounting guidance applies if the value, vesting conditions or classification of the award changes. This guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, and can be early adopted for any interim or annual financial statements that have not yet been issued. We expect to adopt this guidance on or before the effective date and are currently evaluating the impact that adopting this new guidance will have on our business, financial condition and results of operations. In January 2017, the FASB issued guidance that eliminates Step 2 of the goodwill impairment test, which required a comparison of the implied fair value of goodwill of a reporting unit with the carrying amount of that goodwill for that reporting unit. It also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative assessment, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We expect to adopt this guidance on or before the effective date and we do not anticipate that the adoption will have a material impact on our business, financial condition or results of operations. In January 2017, the FASB issued guidance clarifying the definition of a business in order to assist entities with evaluating when a set of transferred assets and activities is considered a business. In general, we expect that the revised definition will result in fewer acquisitions being accounted for as business combinations than under the current guidance. This guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted under certain circumstances. We early adopted this guidance as of July 1, 2017 and the adoption did not have a material impact on our business, financial condition or results of operations. In March 2016, the FASB issued guidance that simplifies several aspects of the accounting for share-based payment award transactions, including the accounting for excess tax benefits and deficiencies, classification of awards as either equity or liabilities and classification of excess tax benefits on the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years and can be early adopted for any interim or annual financial statements that have not yet been issued. We prospectively adopted this guidance on January 1, 2017 and the adoption did not have a material impact on our business, financial condition or results of operations. In July 2015, the FASB issued guidance requiring entities to measure FIFO or average cost inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This guidance does not change the measurement of inventory measured using LIFO or the retail inventory method. This guidance is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. We adopted this guidance on January 1, 2017 and the adoption did not have a material impact on our business, financial condition or results of operations. In May 2014, the FASB issued guidance regarding “Revenue from Contracts with Customers,” to clarify the principles for recognizing revenue. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also requires improved interim and annual disclosures that enable the users of financial statements to better understand the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period, and can be adopted retrospectively. We will adopt this guidance on January 1, 2018. As part of our efforts to prepare for adoption, beginning in 2016, we formed a project implementation team as well as a project time-line to evaluate this new standard. We reviewed and gained an understanding of the new revenue recognition accounting guidance, performed scoping to identify and evaluate revenue streams under the new standard and continue to review industry specific implementation guidance. We are continuing to evaluate the impact of the standard on our business processes, accounting systems, controls and financial statement disclosures, and expect to implement any changes to accommodate the new accounting and disclosure requirements prior to adoption on January 1, 2018. We will use the modified retrospective adoption method to apply this standard, under which the cumulative effect of initially applying the new guidance will be recognized as an adjustment to the opening balance of retained earnings in the first quarter of 2018.
Inventory	nventory is stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out basis.
Net Income Per Unit	We use the two-class method when calculating the net income per unit applicable to limited partners because we have more than one participating class of securities. Our participating securities consist of common units, subordinated units, general partner units and IDRs. The two-class method is based on the weighted-average number of common units outstanding during the period. Basic net income per unit applicable to limited partners (including subordinated unitholders) is computed by dividing limited partners’ interest in net income, after deducting our general partner’s 2% interest and IDRs, by the weighted-average number of outstanding common and subordinated units. Our net income is allocated to our general partner and limited partners in accordance with their respective partnership percentages after giving effect to priority income allocations for IDRs, which are held by our general partner pursuant to our Partnership Agreement. The IDRs are paid following the close of each quarter.
Segment Data	Our operating segments adhere to the accounting policies used for our consolidated financial statements. Our operating segments are managed separately because each segment requires different industry knowledge, technology and marketing strategies. Decisions concerning the allocation of resources and assessment of operating performance are made based on this segmentation. Management measures the operating performance of each of its reportable segments based on segment contribution margin. Segment contribution margin is defined as net sales less cost of goods sold and operating expenses
Property, Plant and Equipment, Impairment	In accordance with ASC 360, Property, Plant & Equipment , we evaluate the realizability of property, plant and equipment as events occur that might indicate potential impairment.
Fair Value Measurements	The fair values of financial instruments are estimated based upon current market conditions and quoted market prices for the same or similar instruments. Management estimates that the carrying value approximates fair value for all of our assets and liabilities that fall under the scope of ASC 825, Financial Instruments . We apply the provisions of ASC 820, which defines fair value, establishes a framework for its measurement and expands disclosures about fair value measurements. ASC 820 applies to commodity and interest rate derivatives that are measured at fair value on a recurring basis. The standard also requires that we assess the impact of nonperformance risk on our derivatives. Nonperformance risk is not considered material as of September 30, 2017 . ASC 820 requires disclosures that categorize assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are observable inputs other than quoted prices included within Level 1 for the asset or liability, either directly or indirectly through market-corroborated inputs. Level 3 inputs are unobservable inputs for the asset or liability reflecting our assumptions about pricing by market participants. Over the counter ("OTC") commodity swaps and any interest rate swaps and caps are generally valued using industry-standard models that consider various assumptions, including quoted forward prices, spot prices, interest rates, time value, volatility factors and contractual prices for the underlying instruments, as well as other relevant economic measures. The degree to which these inputs are observable in the forward markets determines the classification as Level 2 or 3. Our contracts are valued based on exchange pricing and/or price index developers such as Platts or Argus and are, therefore, classified as Level 2.

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2017
Acquisitions [Abstract]
Summary of the Allocation of the Relative Fair Value Assigned to Asset Groups	The following table summarizes the allocation of the relative fair value assigned to the asset groups for the Big Spring Pipeline (in thousands): Property, plant and equipment $ 6,443 Intangible assets (1) 2,560 Total $ 9,003 (1) Intangible assets acquired represent rights-of-way assets with indefinite useful lives. Rights-of-way assets are not subject to amortization.

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Summary of Related Party Transactions	A summary of revenue and expense transactions with Delek and its affiliates are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues $ 40,131 $ 36,360 $ 116,574 $ 111,814 Cost of goods sold $ 9,232 $ 5,247 $ 26,412 $ 24,064 Operating and maintenance expenses $ 7,275 $ 7,988 $ 20,756 $ 22,738 General and administrative expenses $ 2,073 $ 1,641 $ 5,327 $ 4,595

Net Income Per Unit (Tables)

Net Income Per Unit (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Summary of Cash Distributions	Our distributions earned with respect to a given period are declared subsequent to quarter end. Therefore, the table below represents total cash distributions applicable to the period in which the distributions are earned. The expected date of distribution for the distributions earned during the period ended September 30, 2017 is November 14, 2017 . The calculation of net income per unit is as follows (dollars in thousands, except units and per unit amounts): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net income attributable to partners $ 16,923 $ 13,151 $ 50,495 $ 47,492 Less: General partner's distribution (including IDRs) (1) 4,852 3,382 13,697 8,443 Less: Limited partners' distribution 17,418 15,920 51,380 41,615 Less: Subordinated partner's distribution — — — 4,424 Distributions (in excess of) less than earnings $ (5,347 ) $ (6,151 ) $ (14,582 ) $ (6,990 ) General partner's earnings: Distributions (including IDRs) (1) $ 4,852 $ 3,382 $ 13,697 $ 8,443 Allocation of distributions (in excess of) less than earnings (107 ) (123 ) (291 ) (140 ) Total general partner's earnings $ 4,745 $ 3,259 $ 13,406 $ 8,303 Limited partners' earnings on common units: Distributions $ 17,418 $ 15,920 $ 51,380 $ 41,615 Allocation of distributions (in excess of) less than earnings (5,240 ) (6,028 ) (14,291 ) (6,368 ) Total limited partners' earnings on common units $ 12,178 $ 9,892 $ 37,089 $ 35,247 Limited partners' earnings on subordinated units: Distributions $ — $ — $ — $ 4,424 Allocation of distributions in excess of earnings — — — (482 ) Total limited partners' earnings on subordinated units $ — $ — $ — $ 3,942 Weighted average limited partner units outstanding (2) : Common units - (basic) 24,361,457 24,303,740 24,341,921 21,878,935 Common units - (diluted) 24,389,582 24,380,334 24,382,426 21,962,733 Subordinated units - Delek (basic and diluted) (3) — — — 2,408,610 Net income per limited partner unit (2) : Common units - (basic) $ 0.50 $ 0.41 $ 1.52 $ 1.61 Common units - (diluted) (4) $ 0.50 $ 0.41 $ 1.52 $ 1.60 Subordinated units - Delek (basic and diluted) $ — $ — $ — $ 1.64 (1) General partner distributions (including IDRs) consist of the 2% general partner interest and IDRs, which represent the right of the general partner to receive increasing percentages of quarterly distributions of available cash from operating surplus in excess of $0.43125 per unit per quarter. See Note 8 for further discussion related to IDRs. (2) We base our calculation of net income per unit on the weighted-average number of common and subordinated limited partner units outstanding during the period. The weighted-average number of common and subordinated units reflects the conversion of the subordinated units to common units on February 25, 2016. (3) On February 25, 2016, each of the Partnership's 11,999,258 outstanding subordinated units converted into common units and began participating pro rata with the other common units in distributions of available cash. Distributions and the Partnership's net income were allocated to the subordinated units through February 24, 2016. (4) Outstanding common unit equivalents totaling 10,090 were excluded from the diluted earnings per unit calculation for the nine months ended September 30, 2017 . There were no outstanding common unit equivalents excluded from the diluted earnings per unit calculation for the three months ended September 30, 2017 . Outstanding common unit equivalents of 6,540 were excluded from the diluted earnings per unit calculation for both the three and nine months ended September 30, 2016 , as these common unit equivalents did not have a dilutive effect under the treasury stock method.

Equity (Tables)

Equity (Tables)	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Summary of Changes in Number of Units Outstanding	The table below summarizes the changes in the number of units outstanding from December 31, 2016 through September 30, 2017 . Common - Public Common - Delek General Partner Total Balance at December 31, 2016 9,263,415 15,065,192 496,502 24,825,109 General partner units issued to maintain 2% interest — — 670 670 Unit-based compensation awards 32,850 — — 32,850 Delek unit repurchases from public (228,854 ) 228,854 — — Balance at September 30, 2017 9,067,411 15,294,046 497,172 24,858,629
Summary of Changes in Carrying Amount of Equity	The summarized changes in the carrying amount of our equity from December 31, 2016 through September 30, 2017 are as follows (in thousands): Common - Public Common - Delek General Partner Total Balance at December 31, 2016 $ 188,013 $ (195,076 ) $ (6,221 ) $ (13,284 ) Cash distributions (19,208 ) (31,555 ) (12,839 ) (63,602 ) Sponsor contribution of fixed assets — 65 2 67 Net income attributable to partners 13,837 23,252 13,406 50,495 Unit-based compensation 480 806 (741 ) 545 Delek unit repurchases from public (7,291 ) 7,291 — — General partner units issued to maintain 2% interest — — 21 21 Balance at September 30, 2017 $ 175,831 $ (195,217 ) $ (6,372 ) $ (25,758 )
Summary of Allocation of General Partner's Interest in Net Income	The following table presents the allocation of the general partner's interest in net income (in thousands, except percentage of ownership interest): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net income attributable to partners $ 16,923 $ 13,151 $ 50,495 $ 47,492 Less: General partner's IDRs (4,496 ) (3,057 ) (12,649 ) (7,503 ) Net income available to partners $ 12,427 $ 10,094 $ 37,846 $ 39,989 General partner's ownership interest 2.0 % 2.0 % 2.0 % 2.0 % General partner's allocated interest in net income $ 249 $ 202 $ 757 $ 800 General partner's IDRs 4,496 3,057 12,649 7,503 Total general partner's interest in net income $ 4,745 $ 3,259 $ 13,406 $ 8,303
Summary of Percentage Allocations of Available Cash From Operating Surplus	The following table illustrates the percentage allocations of available cash from operating surplus between the unitholders and our general partner based on the specified target distribution levels. The amounts set forth under “Marginal Percentage Interest in Distributions” are the percentage interests of our general partner and our unitholders in any available cash from operating surplus that we distribute up to and including the corresponding amount in the column “Total Quarterly Distribution per Unit Target Amount.” The percentage interests shown for our unitholders and our general partner for the minimum quarterly distribution are also applicable to quarterly distribution amounts that are less than the minimum quarterly distribution. The percentage interests set forth below for our general partner include its 2.0% general partner interest and assume that (i) our general partner has contributed any additional capital necessary to maintain its 2.0% general partner interest, (ii) our general partner has not transferred its IDRs, and (iii) there are no arrearages on common units. Target Quarterly Distribution per Unit Marginal Percentage Interest in Distributions Target Amount Unitholders General Partner Minimum Quarterly Distribution $ 0.37500 98.0 % 2.0 % First Target Distribution above $ 0.37500 98.0 % 2.0 % up to $ 0.43125 Second Target Distribution above $ 0.43125 85.0 % 15.0 % up to $ 0.46875 Third Target Distribution above $ 0.46875 75.0 % 25.0 % up to $ 0.56250 Thereafter thereafter $ 0.56250 50.0 % 50.0 %
Summary of Distributions	The table below summarizes the quarterly distributions related to our quarterly financial results: Quarter Ended Total Quarterly Distribution Per Limited Partner Unit Total Quarterly Distribution Per Limited Partner Unit, Annualized Total Cash Distribution, including general partner interest and IDRs (in thousands) Date of Distribution Unitholders Record Date September 30, 2016 $ 0.655 $ 2.62 $ 19,302 November 14, 2016 November 7, 2016 December 31, 2016 $ 0.680 $ 2.72 $ 20,537 February 14, 2017 February 3, 2017 March 31, 2017 $ 0.690 $ 2.76 $ 21,024 May 12, 2017 May 5, 2017 June 30, 2017 $ 0.705 $ 2.82 $ 21,783 August 11, 2017 August 4, 2017 September 30, 2017 $ 0.715 $ 2.86 $ 22,270 November 14, 2017 (1) November 7, 2017 (1) Expected date of distribution. The allocation of total quarterly cash distributions expected to be made on November 14, 2017 to general and limited partners for the three and nine months ended September 30, 2017 and the allocation of total quarterly cash distributions for the three and nine months ended September 30, 2016 are set forth in the table below. Distributions earned with respect to a given period are declared subsequent to quarter end. Therefore, the table below presents total cash distributions applicable to the period in which the distributions are earned (in thousands, except per unit amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 General partner's distributions: General partner's distributions $ 356 $ 325 $ 1,048 $ 940 General partner's IDRs 4,496 3,057 12,649 7,503 Total general partner's distributions 4,852 3,382 13,697 8,443 Limited partners' distributions: Common 17,418 15,920 51,380 41,615 Subordinated — — — 4,424 Total limited partners' distributions 17,418 15,920 51,380 46,039 Total cash distributions $ 22,270 $ 19,302 $ 65,077 $ 54,482 Cash distributions per limited partner unit $ 0.715 $ 0.655 $ 2.110 $ 1.895

Equity Method Investments (Tabl

Equity Method Investments (Tables)	9 Months Ended
	Sep. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Summary of Financial Information for Equity Method Investees	Combined summarized financial information for our equity method investees is shown below (in thousands): September 30, 2017 December 31, 2016 Current assets $ 11,333 $ 7,760 Noncurrent assets $ 244,615 $ 237,516 Current liabilities $ 1,482 $ 4,512 Noncurrent liabilities $ 165 $ — Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenues $ 7,026 $ 226 $ 19,719 $ 229 Gross profit $ 7,026 $ 226 $ 19,719 $ 229 Net income (loss) $ 2,282 $ (1,538 ) $ 6,674 $ (2,857 )

Segment Data (Tables)

Segment Data (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Summary Segment Data	The following is a summary of business segment operating performance as measured by contribution margin for the periods indicated (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Pipelines and Transportation Net sales: Affiliate $ 27,805 $ 25,238 $ 81,972 $ 77,680 Third party 3,177 3,388 7,910 15,739 Total pipelines and transportation 30,982 28,626 89,882 93,419 Operating costs and expenses: Cost of goods sold 4,883 4,811 13,691 14,401 Operating expenses 8,573 7,678 24,661 22,317 Segment contribution margin $ 17,526 $ 16,137 $ 51,530 $ 56,701 Capital spending (excluding business combinations) $ 2,918 $ 2,613 $ 6,715 $ 4,037 Wholesale Marketing and Terminalling Net sales: Affiliate $ 12,326 $ 11,122 $ 34,602 $ 34,134 Third party 87,318 67,722 262,384 195,826 Total wholesale marketing and terminalling 99,644 78,844 296,986 229,960 Operating costs and expenses: Cost of goods sold 84,237 68,716 253,058 198,980 Operating expenses 2,089 1,573 6,325 6,128 Segment contribution margin $ 13,318 $ 8,555 $ 37,603 $ 24,852 Capital spending (excluding business combinations) $ 868 $ 464 $ 1,981 $ 972 Consolidated Net sales: Affiliate $ 40,131 $ 36,360 $ 116,574 $ 111,814 Third party 90,495 71,110 270,294 211,565 Total consolidated 130,626 107,470 386,868 323,379 Operating costs and expenses: Cost of goods sold 89,120 73,527 266,749 213,381 Operating expenses 10,662 9,251 30,986 28,445 Contribution margin 30,844 24,692 89,133 81,553 General and administrative expenses 2,751 2,307 8,255 7,918 Depreciation and amortization 5,462 5,356 16,397 15,164 (Gain) loss on asset disposals (5 ) 28 2 (16 ) Operating income $ 22,636 $ 17,001 $ 64,479 $ 58,487 Capital spending (excluding business combinations) $ 3,786 $ 3,077 $ 8,696 $ 5,009 The following table summarizes the total assets for each segment as of September 30, 2017 and December 31, 2016 (in thousands). September 30, 2017 December 31, 2016 Pipelines and transportation $ 344,260 $ 337,349 Wholesale marketing and terminalling 78,598 78,198 Total assets $ 422,858 $ 415,547 Property, plant and equipment and accumulated depreciation as of September 30, 2017 and depreciation expense by reporting segment for the three and nine months ended September 30, 2017 were as follows (in thousands): Pipelines and Transportation Wholesale Marketing and Terminalling Consolidated Property, plant and equipment $ 292,116 $ 65,416 $ 357,532 Less: accumulated depreciation (80,008 ) (26,872 ) (106,880 ) Property, plant and equipment, net $ 212,108 $ 38,544 $ 250,652 Depreciation expense for the three months ended September 30, 2017 $ 4,257 $ 940 $ 5,197 Depreciation expense for the nine months ended September 30, 2017 $ 12,821 $ 2,779 $ 15,600

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Summary of Fair Value Hierarchy for Financial Assets	The fair value hierarchy for our financial assets and liabilities accounted for at fair value on a recurring basis at September 30, 2017 and December 31, 2016 was as follows (in thousands): As of September 30, 2017 Level 1 Level 2 Level 3 Total Assets OTC commodity swaps $ — $ 88 $ — $ 88 Total assets — 88 — 88 Liabilities OTC commodity swaps — — — — Net assets $ — $ 88 $ — $ 88 As of December 31, 2016 Level 1 Level 2 Level 3 Total Assets OTC commodity swaps $ — $ 9 $ — $ 9 Total assets — 9 — 9 Liabilities OTC commodity swaps — (82 ) — (82 ) Net liabilities $ — $ (73 ) $ — $ (73 )

Derivative Instruments (Tables)

Derivative Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Summary of the Fair Value of Derivative Instruments	The following table presents the fair value of our derivative instruments as of September 30, 2017 and December 31, 2016 . The fair value amounts below are presented on a gross basis and do not reflect the netting of asset and liability positions permitted under our master netting arrangements, including any cash deficit or collateral on deposit with our counterparties. We have elected to offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements. As a result, the asset and liability amounts below may differ from the amounts presented in our accompanying consolidated balance sheets. During the three and nine months ended September 30, 2017 and 2016 , we did not elect hedge accounting treatment for these derivative positions. As a result, all changes in fair value are marked to market in the accompanying condensed consolidated statements of income and comprehensive income. See Note 12 for further information regarding the fair value of derivative instruments. (in thousands) September 30, 2017 December 31, 2016 Derivative Type Balance Sheet Location Assets Liabilities Assets Liabilities Derivatives: OTC commodity swaps (1) Other current assets $ 88 $ — $ 9 $ (82 ) Total gross value of derivatives 88 — 9 (82 ) Less: Counterparty netting and cash collateral (2) 88 585 9 621 Total net fair value of derivatives $ — $ (585 ) $ — $ (703 ) (1) As of September 30, 2017 and December 31, 2016 , we had open derivative contracts representing 96,000 barrels and 93,000 barrels, respectively, of refined petroleum products. (2) As of September 30, 2017 and December 31, 2016 , we had a cash deficit of $0.7 million and $0.6 million , respectively, netted with the net derivative position of our counterparty.
Summary of Recognized Gains (Losses) Associated with Derivatives	Recognized gains (losses) associated with our derivatives for the three and nine months ended September 30, 2017 and 2016 were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Derivative Type Income Statement Location 2017 2016 2017 2016 Interest rate derivatives Interest expense $ — $ — $ — $ — Commodity derivatives Cost of goods sold $ (1,474 ) $ (255 ) $ (358 ) $ (1,714 ) Total $ (1,474 ) $ (255 ) $ (358 ) $ (1,714 )

Acquisitions - Narrative (Deta

Acquisitions - Narrative (Details) - Big Spring Pipeline [Member] $ in Millions	Sep. 15, 2017USD ($)mi
Schedule of Asset Acquisitions, by Acquisition [Line Items]
Length of pipeline (in miles) | mi	40
Consideration transferred | $	$ 9

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 15, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Property, plant and equipment	$ 250,652		$ 251,029
Intangible assets (1)	16,182		14,420
Total assets	$ 422,858		$ 415,547
Big Spring Pipeline [Member]
Business Acquisition [Line Items]
Property, plant and equipment		$ 6,443
Intangible assets (1)		2,560
Total assets		$ 9,003

Related Party Transactions - O

Related Party Transactions - Omnibus Agreement (Details) - USD ($) $ in Thousands	Apr. 01, 2015	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Related Party Transaction [Line Items]
Reimbursement of capital expenditures by Delek				$ 4,254	$ 1,528
Omnibus Agreement [Member] | Delek US [Member] | Delek US and affiliates [Member]
Related Party Transaction [Line Items]
Deductible amount to reimburse the Partnership with respect to certain asset failures	$ 1,000
Omnibus Agreement [Member] | Delek US [Member] | Delek US and affiliates [Member] | Operating and maintenance expense [Member]
Related Party Transaction [Line Items]
Reimbursement for costs incurred for asset failures		$ 100	$ 100	300	1,200
Omnibus Agreement [Member] | Delek US [Member] | Delek US and affiliates [Member] | Other long term liabilities [Member]
Related Party Transaction [Line Items]
Reimbursement of capital expenditures by Delek		$ 400	$ 700	$ 4,300	$ 1,500

Related Party Transactions - S

Related Party Transactions - Summary of Transactions (Details) - Delek US and affiliates [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Related Party Transaction [Line Items]
Revenues	$ 40,131	$ 36,360	$ 116,574	$ 111,814
General and administrative expenses	2,073	1,641	5,327	4,595
Cost of goods sold [Member]
Related Party Transaction [Line Items]
Expenses	9,232	5,247	26,412	24,064
Operating and maintenance expense [Member]
Related Party Transaction [Line Items]
Expenses	$ 7,275	$ 7,988	$ 20,756	$ 22,738

Related Party Transactions - Q

Related Party Transactions - Quarterly Cash Distributions (Details) - USD ($) $ in Thousands	Oct. 25, 2017	Aug. 11, 2017	May 12, 2017	Feb. 14, 2017	Nov. 14, 2016	Aug. 12, 2016	Aug. 31, 2016	May 31, 2016	Feb. 29, 2016
Related Party Transaction [Line Items]
Quarterly cash distributions paid		$ 21,783	$ 21,024	$ 20,537	$ 19,302	$ 18,100		$ 17,100	$ 16,100
Subsequent Event [Member]
Related Party Transaction [Line Items]
Quarterly distributions declared	$ 22,270
Delek US and affiliates [Member]
Related Party Transaction [Line Items]
Quarterly cash distributions paid		$ 15,400	$ 14,700	$ 14,200			$ 12,100	$ 11,300	$ 10,500
Delek US and affiliates [Member] | Subsequent Event [Member]
Related Party Transaction [Line Items]
Quarterly distributions declared	$ 15,800

Inventory (Details)

Inventory (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Inventory [Line Items]
Inventories	$ 7,891,000		$ 7,891,000		$ 8,875,000
Cost of goods sold [Member]
Inventory [Line Items]
Inventory write-down	$ (300,000)	$ 0	$ (300,000)	$ 0

Long-Term Obligations - Second

Long-Term Obligations - Second Amended and Restated Credit Agreement (Details) - Revolving Credit Facility [Member] - Fifth Third Bank [Member] - USD ($)	Dec. 30, 2014	Sep. 30, 2017	Jul. 09, 2013
Line of Credit [Member]
Line of Credit Facility [Line Items]
Maximum lender commitment	$ 700,000,000		$ 400,000,000
Maximum amount under accordion feature	$ 800,000,000
Weighted average interest rate (as percent)		4.00%
Commitment fee (as percent)		0.50%
Principal amount of Holdings Note		$ 102,000,000
Outstanding borrowings		158,800,000
Unused credit commitment		532,700,000
Line of Credit [Member] | Prime Rate [Member] | United States of America, Dollars
Line of Credit Facility [Line Items]
Variable rate description	U.S. dollar prime rate
Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | United States of America, Dollars
Line of Credit Facility [Line Items]
Variable rate description	LIBOR
Line of Credit [Member] | Canadian prime rate [Member] | Canada, Dollars
Line of Credit Facility [Line Items]
Variable rate description	Canadian dollar prime rate
Line of Credit [Member] | Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars
Line of Credit Facility [Line Items]
Variable rate description	Canadian Dealer Offered Rate
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Outstanding borrowings		0
Letters of credit outstanding		$ 8,500,000

Long-Term Obligations - 6.75%

Long-Term Obligations - 6.75% Senior Notes Due 2025 (Details) - Senior Notes [Member] - Senior 2025 Notes [Member] - USD ($)	May 23, 2017	Sep. 30, 2017
Debt Instrument [Line Items]
Face amount of debt	$ 250,000,000
Interest rate (as percent)	6.75%
Principal outstanding		$ 250,000,000
Deferred financing costs		5,700,000
Debt discount		$ 1,800,000
Anytime prior to May 15, 2020
Debt Instrument [Line Items]
Redemption price, percentage of principal amount redeemed (as percent)	35.00%
Redemption price (as percent)	106.75%
Twelve-month period beginning on May 15, 2020
Debt Instrument [Line Items]
Redemption price (as percent)	105.063%
Twelve-month period beginning on May 15, 2021
Debt Instrument [Line Items]
Redemption price (as percent)	103.375%
Twelve-month period beginning on May 15, 2022
Debt Instrument [Line Items]
Redemption price (as percent)	101.688%
Beginning on May 15, 2023 and thereafter
Debt Instrument [Line Items]
Redemption price (as percent)	100.00%

Net Income Per Unit - Narrativ

Net Income Per Unit - Narrative (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Feb. 25, 2016
Limited Partners' Capital Account [Line Items]
General partner's ownership interest (as percent)	2.00%	2.00%	2.00%	2.00%
Subordinated unitholders - Delek [Member]
Limited Partners' Capital Account [Line Items]
Common units outstanding (in shares)					11,999,258

Net Income Per Unit (Details)

Net Income Per Unit (Details) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017USD ($)$ / sharesshares	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2017USD ($)$ / sharesshares	Sep. 30, 2016USD ($)$ / sharesshares	Feb. 25, 2016shares
Net Income Per Unit [Line Items]
Net income attributable to partners		$ 16,923	$ 13,151	$ 50,495	$ 47,492
Less: Partners' distribution		17,418	15,920	51,380	46,039
Allocation of distributions (in excess of) less than earnings		$ (5,347)	$ (6,151)	$ (14,582)	$ (6,990)
Footnote [Abstract]
General partner's ownership interest (as percent)		2.00%	2.00%	2.00%	2.00%
Quarterly distributions of available cash, minimum level (in dollars per share) | $ / shares				0.43125
Common share equivalents excluded (in shares) | shares		0	6,540	10,090	6,540
Common Units [Member]
Net Income Per Unit [Line Items]
Common units - (basic) (in shares) | shares	[1]	24,361,457	24,303,740	24,341,921	21,878,935
Common units - (diluted) (in shares) | shares	[1]	24,389,582	24,380,334	24,382,426	21,962,733
Common units - (basic) (in dollars per share) | $ / shares	[1]	$ 0.50	$ 0.41	$ 1.52	$ 1.61
Common units - (diluted) (in dollars per share) | $ / shares	[1]	$ 0.50	$ 0.41	$ 1.52	$ 1.60
Subordinated unitholders - Delek [Member]
Net Income Per Unit [Line Items]
Subordinated units - Delek (basic and diluted) (in shares) | shares	[1]	0	0	0	2,408,610
Subordinated units - Delek (basic and diluted) (in dollars per share) | $ / shares	[1]	$ 0	$ 0	$ 0	$ 1.64
Footnote [Abstract]
Common units outstanding (in shares) | shares						11,999,258
General Partner [Member]
Net Income Per Unit [Line Items]
Net income attributable to partners				$ 13,406
Less: General partner's distribution (including IDRs)	[2]	$ 4,852	$ 3,382	13,697	$ 8,443
Allocation of distributions (in excess of) less than earnings		(107)	(123)	(291)	(140)
Total partner's earnings		4,745	3,259	13,406	8,303
Limited Partner [Member] | Common Units [Member]
Net Income Per Unit [Line Items]
Less: Partners' distribution		17,418	15,920	51,380	41,615
Allocation of distributions (in excess of) less than earnings		(5,240)	(6,028)	(14,291)	(6,368)
Total partner's earnings		$ 12,178	$ 9,892	$ 37,089	$ 35,247
Common units - (basic) (in shares) | shares	[3]	24,361,457	24,303,740	24,341,921	21,878,935
Common units - (diluted) (in shares) | shares	[3]	24,389,582	24,380,334	24,382,426	21,962,733
Common units - (basic) (in dollars per share) | $ / shares	[3]	$ 0.50	$ 0.41	$ 1.52	$ 1.61
Common units - (diluted) (in dollars per share) | $ / shares	[3],[4]	$ 0.50	$ 0.41	$ 1.52	$ 1.60
Limited Partner [Member] | Subordinated Units [Member]
Net Income Per Unit [Line Items]
Less: Partners' distribution		$ 0	$ 0	$ 0	$ 4,424
Allocation of distributions (in excess of) less than earnings		0	0	0	(482)
Total partner's earnings		$ 0	$ 0	$ 0	$ 3,942
Subordinated units - Delek (basic and diluted) (in shares) | shares	[3],[5]	0	0	0	2,408,610
Subordinated units - Delek (basic and diluted) (in dollars per share) | $ / shares	[3]	$ 0	$ 0	$ 0	$ 1.64
[1]	We base our calculation of net income per unit on the weighted-average number of common and subordinated limited partner units outstanding during the period. The weighted-average number of common and subordinated units reflect the conversion of the subordinated units to common units on February 25, 2016. See Note 7 for further discussion.
[2]	General partner distributions (including IDRs) consist of the 2% general partner interest and IDRs, which represent the right of the general partner to receive increasing percentages of quarterly distributions of available cash from operating surplus in excess of $0.43125 per unit per quarter. See Note 8 for further discussion related to IDRs.
[3]	We base our calculation of net income per unit on the weighted-average number of common and subordinated limited partner units outstanding during the period. The weighted-average number of common and subordinated units reflects the conversion of the subordinated units to common units on February 25, 2016.
[4]	Outstanding common unit equivalents totaling 10,090 were excluded from the diluted earnings per unit calculation for the nine months ended September 30, 2017. There were no outstanding common unit equivalents excluded from the diluted earnings per unit calculation for the three months ended September 30, 2017. Outstanding common unit equivalents of 6,540 were excluded from the diluted earnings per unit calculation for both the three and nine months ended September 30, 2016, as these common unit equivalents did not have a dilutive effect under the treasury stock method.
[5]	On February 25, 2016, each of the Partnership's 11,999,258 outstanding subordinated units converted into common units and began participating pro rata with the other common units in distributions of available cash. Distributions and the Partnership's net income were allocated to the subordinated units through February 24, 2016.

Equity - Narrative (Details)

Equity - Narrative (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Class of Stock [Line Items]
Delek's limited partner ownership interest (as percent)			61.50%
General partner's ownership interest (as percent)	2.00%	2.00%	2.00%	2.00%
General partner units outstanding (units)	497,172		497,172		496,502
Delek [Member]
Class of Stock [Line Items]
Ownership Interest in General Partner (as percent)	94.60%		94.60%
Affiliates [Member]
Class of Stock [Line Items]
Ownership Interest in General Partner (as percent)	5.40%		5.40%
Common unitholders - public [Member]
Class of Stock [Line Items]
Common units outstanding (in shares)	9,067,411		9,067,411		9,263,415
Common unitholders - Delek [Member]
Class of Stock [Line Items]
Common units outstanding (in shares)	15,294,046		15,294,046		15,065,192

Equity - Units Rollforward (De

Equity - Units Rollforward (Details)	9 Months Ended
	Sep. 30, 2017shares
Increase (Decrease) in Partners' Capital [Roll Forward]
Balance at December 31, 2016	24,825,109
General partner units issued to maintain 2% interest	670
Unit-based compensation awards	32,850
Delek unit repurchases from public	0
Balance at September 30, 2017	24,858,629
Limited Partner [Member] | Common unitholders - public [Member]
Increase (Decrease) in Partners' Capital [Roll Forward]
Balance at December 31, 2016	9,263,415
General partner units issued to maintain 2% interest	0
Unit-based compensation awards	32,850
Delek unit repurchases from public	(228,854)
Balance at September 30, 2017	9,067,411
Limited Partner [Member] | Common unitholders - Delek [Member]
Increase (Decrease) in Partners' Capital [Roll Forward]
Balance at December 31, 2016	15,065,192
General partner units issued to maintain 2% interest	0
Unit-based compensation awards	0
Delek unit repurchases from public	228,854
Balance at September 30, 2017	15,294,046
General Partner [Member]
Increase (Decrease) in Partners' Capital [Roll Forward]
Balance at December 31, 2016	496,502
General partner units issued to maintain 2% interest	670
Unit-based compensation awards	0
Delek unit repurchases from public	0
Balance at September 30, 2017	497,172

Equity - Equity Activity (Deta

Equity - Equity Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Increase (Decrease) in Partners' Capital [Roll Forward]
Balance at December 31, 2016			$ (13,284)
Cash distributions			(63,602)
Sponsor contribution of fixed assets			67	$ 609
Net income attributable to partners	$ 16,923	$ 13,151	50,495	$ 47,492
Unit-based compensation			545
Delek unit repurchases from public			0
General partner units issued to maintain 2% interest			21
Balance at September 30, 2017	$ (25,758)		$ (25,758)
General partner's ownership interest (as percent)	2.00%	2.00%	2.00%	2.00%
Limited Partner [Member] | Common unitholders - public [Member]
Increase (Decrease) in Partners' Capital [Roll Forward]
Balance at December 31, 2016			$ 188,013
Cash distributions			(19,208)
Sponsor contribution of fixed assets			0
Net income attributable to partners			13,837
Unit-based compensation			480
Delek unit repurchases from public			(7,291)
General partner units issued to maintain 2% interest			0
Balance at September 30, 2017	$ 175,831		175,831
Limited Partner [Member] | Common unitholders - Delek [Member]
Increase (Decrease) in Partners' Capital [Roll Forward]
Balance at December 31, 2016			(195,076)
Cash distributions			(31,555)
Sponsor contribution of fixed assets			65
Net income attributable to partners			23,252
Unit-based compensation			806
Delek unit repurchases from public			7,291
General partner units issued to maintain 2% interest			0
Balance at September 30, 2017	(195,217)		(195,217)
General Partner [Member]
Increase (Decrease) in Partners' Capital [Roll Forward]
Balance at December 31, 2016			(6,221)
Cash distributions			(12,839)
Sponsor contribution of fixed assets			2
Net income attributable to partners			13,406
Unit-based compensation			(741)
Delek unit repurchases from public			0
General partner units issued to maintain 2% interest			21
Balance at September 30, 2017	$ (6,372)		$ (6,372)

Equity - Allocations of Net In

Equity - Allocations of Net Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Equity [Abstract]
Net income attributable to partners	$ 16,923	$ 13,151	$ 50,495	$ 47,492
Less: General partner's IDRs	(4,496)	(3,057)	(12,649)	(7,503)
Net income available to partners	$ 12,427	$ 10,094	$ 37,846	$ 39,989
General partner's ownership interest (as percent)	2.00%	2.00%	2.00%	2.00%
General partner's allocated interest in net income	$ 249	$ 202	$ 757	$ 800
General partner's IDRs	4,496	3,057	12,649	7,503
Total general partner's interest in net income	$ 4,745	$ 3,259	$ 13,406	$ 8,303

Equity - Incentive Distributio

Equity - Incentive Distribution Rights (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Equity [Abstract]
General partner's ownership interest (as percent)	2.00%	2.00%	2.00%	2.00%
Minimum quarterly distribution [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Target Quarterly Distribution per Unit (in dollars per share)			$ 0.37500
Minimum quarterly distribution [Member] | Limited Partner [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions (as percent)			98.00%
Minimum quarterly distribution [Member] | General Partner [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions (as percent)			2.00%
First target distribution [Member] | Minimum [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Target Quarterly Distribution per Unit (in dollars per share)			$ 0.37500
First target distribution [Member] | Maximum [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Target Quarterly Distribution per Unit (in dollars per share)			$ 0.43125
First target distribution [Member] | Limited Partner [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions (as percent)			98.00%
First target distribution [Member] | General Partner [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions (as percent)			2.00%
Second target distribution [Member] | Minimum [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Target Quarterly Distribution per Unit (in dollars per share)			$ 0.43125
Second target distribution [Member] | Maximum [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Target Quarterly Distribution per Unit (in dollars per share)			$ 0.46875
Second target distribution [Member] | Limited Partner [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions (as percent)			85.00%
Second target distribution [Member] | General Partner [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions (as percent)			15.00%
Third target distribution [Member] | Minimum [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Target Quarterly Distribution per Unit (in dollars per share)			$ 0.46875
Third target distribution [Member] | Maximum [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Target Quarterly Distribution per Unit (in dollars per share)			$ 0.56250
Third target distribution [Member] | Limited Partner [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions (as percent)			75.00%
Third target distribution [Member] | General Partner [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions (as percent)			25.00%
Thereafter [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Target Quarterly Distribution per Unit (in dollars per share)			$ 0.56250
Thereafter [Member] | Limited Partner [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions (as percent)			50.00%
Thereafter [Member] | General Partner [Member]
Incentive Distribution Made to Managing Member or General Partner [Line Items]
Marginal Percentage Interest in Distributions (as percent)			50.00%

Equity - Cash Distributions (D

Equity - Cash Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands	Nov. 14, 2017	Oct. 25, 2017	Aug. 11, 2017	May 12, 2017	Feb. 14, 2017	Nov. 14, 2016	Aug. 12, 2016	May 31, 2016	Feb. 29, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Distribution Made to Limited Partner [Line Items]
Total Quarterly Distribution Per Limited Partner Unit - Paid (in dollars per share)			$ 0.705	$ 0.690	$ 0.680	$ 0.655
Total Quarterly Distribution Per Limited Partner Unit, Annualized - Paid (in dollars per share)			$ 2.82	$ 2.76	$ 2.72	$ 2.62
Total Cash Distribution, including general partner interest and IDRs			$ 21,783	$ 21,024	$ 20,537	$ 19,302	$ 18,100	$ 17,100	$ 16,100
Total Quarterly Distribution Per Limited Partner Unit - Declared (in dollars per share)										$ 0.715	$ 0.655	$ 2.110	$ 1.895
Subsequent Event [Member]
Distribution Made to Limited Partner [Line Items]
Total Quarterly Distribution Per Limited Partner Unit, Annualized - Paid (in dollars per share)	$ 2.86
Total Quarterly Distribution Per Limited Partner Unit - Declared (in dollars per share)		$ 0.715
Total Cash Distribution, including general partner interest and IDRs - Declared		$ 22,270

Equity - Distributions Earned

Equity - Distributions Earned (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Distributions Earned by Limited or General Partners [Line Items]
General partner's distributions	$ 356	$ 325	$ 1,048	$ 940
General partner's IDRs	4,496	3,057	12,649	7,503
Total general partner's distributions	4,852	3,382	13,697	8,443
Total limited partners' distributions	17,418	15,920	51,380	46,039
Total cash distributions	$ 22,270	$ 19,302	$ 65,077	$ 54,482
Cash distributions per limited partner unit (in dollars per share)	$ 0.715	$ 0.655	$ 2.110	$ 1.895
Limited Partner [Member] | Common Units [Member]
Distributions Earned by Limited or General Partners [Line Items]
Total limited partners' distributions	$ 17,418	$ 15,920	$ 51,380	$ 41,615
Limited Partner [Member] | Subordinated Units [Member]
Distributions Earned by Limited or General Partners [Line Items]
Total limited partners' distributions	$ 0	$ 0	$ 0	$ 4,424

Equity Based Compensation (Det

Equity Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total unrecognized compensation costs	$ 0.5		$ 0.5
Weighted average period of recognition (years)			1 year 2 months 12 days
Minimum [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Award vesting period (years)			1 year
Maximum [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Award vesting period (years)			5 years
General and administrative expenses [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unit-based compensation expense	$ 0.2	$ 0.2	$ 0.5	$ 0.4

Equity Method Investments (Det

Equity Method Investments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Mar. 31, 2015
Schedule of Equity Method Investments [Line Items]
Investment in joint ventures	$ 106,098		$ 106,098		$ 101,080
CP LLC [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest (as percent)						50.00%
Rangeland Rio [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest (as percent)						33.00%
Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Current assets	11,333		11,333		7,760
Noncurrent assets	244,615		244,615		237,516
Current liabilities	1,482		1,482		4,512
Noncurrent liabilities	165,000		165,000		$ 0
Revenues	7,026	$ 226	19,719	$ 229
Gross profit	7,026	226	19,719	229
Net income (loss)	$ 2,282	$ (1,538)	$ 6,674	$ (2,857)

Segment Data - Narrative (Detai

Segment Data - Narrative (Details)	9 Months Ended
	Sep. 30, 2017segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Data (Details)

Segment Data (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Net Sales:
Affiliate	$ 40,131	$ 36,360	$ 116,574	$ 111,814
Third party	90,495	71,110	270,294	211,565
Net sales	130,626	107,470	386,868	323,379
Operating costs and expenses:
Cost of goods sold	89,120	73,527	266,749	213,381
Operating expenses	10,662	9,251	30,986	28,445
Segment contribution margin	30,844	24,692	89,133	81,553
General and administrative expenses	2,751	2,307	8,255	7,918
Depreciation and amortization	5,462	5,356	16,397	15,164
(Gain) loss on asset disposals	(5)	28	2	(16)
Operating income	22,636	17,001	64,479	58,487
Capital spending (excluding business combinations)	3,786	3,077	8,696	5,009
Total assets	422,858		422,858		$ 415,547
Pipelines and Transportation [Member]
Net Sales:
Affiliate	27,805	25,238	81,972	77,680
Third party	3,177	3,388	7,910	15,739
Net sales	30,982	28,626	89,882	93,419
Operating costs and expenses:
Cost of goods sold	4,883	4,811	13,691	14,401
Operating expenses	8,573	7,678	24,661	22,317
Segment contribution margin	17,526	16,137	51,530	56,701
Capital spending (excluding business combinations)	2,918	2,613	6,715	4,037
Total assets	344,260		344,260		337,349
Wholesale Marketing and Terminalling [Member]
Net Sales:
Affiliate	12,326	11,122	34,602	34,134
Third party	87,318	67,722	262,384	195,826
Net sales	99,644	78,844	296,986	229,960
Operating costs and expenses:
Cost of goods sold	84,237	68,716	253,058	198,980
Operating expenses	2,089	1,573	6,325	6,128
Segment contribution margin	13,318	8,555	37,603	24,852
Capital spending (excluding business combinations)	868	$ 464	1,981	$ 972
Total assets	$ 78,598		$ 78,598		$ 78,198

Segment Data - PP&E (Details)

Segment Data - PP&E (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Property, plant and equipment	$ 357,532	$ 357,532	$ 342,407
Less: accumulated depreciation	(106,880)	(106,880)	(91,378)
Property, plant and equipment, net	250,652	250,652	$ 251,029
Depreciation expense	5,197	15,600
Pipelines and Transportation [Member]
Segment Reporting Information [Line Items]
Property, plant and equipment	292,116	292,116
Less: accumulated depreciation	(80,008)	(80,008)
Property, plant and equipment, net	212,108	212,108
Depreciation expense	4,257	12,821
Wholesale Marketing and Terminalling [Member]
Segment Reporting Information [Line Items]
Property, plant and equipment	65,416	65,416
Less: accumulated depreciation	(26,872)	(26,872)
Property, plant and equipment, net	38,544	38,544
Depreciation expense	$ 940	$ 2,779

Fair Value Measurements (Detai

Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 88	$ 9
Net assets (liabilities)	88	(73)
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Net assets (liabilities)	0	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	88	9
Net assets (liabilities)	88	(73)
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Net assets (liabilities)	0	0
OTC commodity swaps [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	88	9
Derivative Liability	0	(82)
OTC commodity swaps [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	0	0
Derivative Liability	0	0
OTC commodity swaps [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	88	9
Derivative Liability	0	(82)
OTC commodity swaps [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset	0	0
Derivative Liability	$ 0	$ 0

Fair Value Measurements - Narr

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Cash deficit	$ 0.7	$ 0.6

Derivative Instruments - Narra

Derivative Instruments - Narrative (Details) - USD ($) $ in Millions	Feb. 25, 2013	Nov. 07, 2012	Sep. 30, 2017
Derivative [Line Items]
Minimum required percent of interest rate hedging arrangements for credit facility (as percent)		50.00%
Minimum period to maintain required 50% of the amount funded		3 years
Interest Rate Contract [Member]
Derivative [Line Items]
Term of contract (less than 90 days for forward fuel contracts)	3 years
Notional amount	$ 45
Fuel [Member] | Forward Contracts [Member]
Derivative [Line Items]
Term of contract (less than 90 days for forward fuel contracts)			90 days

Derivative Instruments - Balan

Derivative Instruments - Balance Sheet Location (Details) bbl in Thousands, $ in Thousands		Sep. 30, 2017USD ($)bbl	Dec. 31, 2016USD ($)bbl
Footnote [Abstract]
Cash deficit		$ (700)	$ (600)
Derivatives not designated as hedging instrument [Member]
Derivatives, Fair Value [Line Items]
Assets		88	9
Liabilities		0	(82)
Less: Counterparty netting and cash collateral, assets	[1]	88	9
Less: Counterparty netting and cash collateral, liabilities	[1]	585	621
Total net fair value of derivative, assets		0	0
Total net fair value of derivative, liabilities		$ (585)	$ (703)
Footnote [Abstract]
Derivative open contracts (in barrels) | bbl		96	93
Derivatives not designated as hedging instrument [Member] | OTC commodity swaps [Member] | Other current assets
Derivatives, Fair Value [Line Items]
Assets	[2]	$ 88	$ 9
Liabilities	[2]	$ 0	$ (82)
[1]	As of September 30, 2017 and December 31, 2016, we had a cash deficit of $0.7 million and $0.6 million, respectively, netted with the net derivative position of our counterparty.
[2]	As of September 30, 2017 and December 31, 2016, we had open derivative contracts representing 96,000 barrels and 93,000 barrels, respectively, of refined petroleum products.

Derivative Instruments - Incom

Derivative Instruments - Income Statement Location (Details) - Derivatives not designated as hedging instrument [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Recognized gain (loss)	$ (1,474)	$ (255)	$ (358)	$ (1,714)
Interest rate derivatives [Member] | Interest expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Recognized gain (loss)	0	0	0	0
Commodity derivatives [Member] | Cost of goods sold [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Recognized gain (loss)	$ (1,474)	$ (255)	$ (358)	$ (1,714)

Commitments and Contingencies

Commitments and Contingencies - Crude Oil Releases (Details) $ in Millions	Sep. 30, 2017USD ($)	Jan. 31, 2016bbl	Mar. 31, 2013bbl
Modisette Release [Member]
Loss Contingencies [Line Items]
Crude oil released (in barrels)		30
Paline Release [Member]
Loss Contingencies [Line Items]
Crude oil released (in barrels)		350
Magnolia Release [Member]
Loss Contingencies [Line Items]
Crude oil released (in barrels)			5,900
Accrual for environmental loss contingencies | $	$ 1

Commitments and Contingencies59

Commitments and Contingencies - Contracts and Agreements (Details)	9 Months Ended
	Sep. 30, 2017bbl / pure
Noble Petro, Inc. [Member] | Abilene Contract [Member] | Inventories [Member]
Other Commitments [Line Items]
Maximum purchases under supply contract (in bpd)	20,350

Commitments and Contingencies60

Commitments and Contingencies - Letters of Credit (Details) - Letter of Credit [Member] - Revolving Credit Facility [Member] - Fifth Third Bank [Member]	Sep. 30, 2017USD ($)
Debt Instrument [Line Items]
Letters of credit outstanding	$ 8,500,000
Outstanding borrowings	$ 0

Commitments and Contingencies61

Commitments and Contingencies - Operating Leases (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Lease expense	$ 1.4	$ 1.3	$ 4.1	$ 4.4

Subsequent Events - Distributi

Subsequent Events - Distribution Declaration (Details) - $ / shares	Oct. 25, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Subsequent Event [Line Items]
Cash distributions per limited partner unit (in dollars per share)		$ 0.715	$ 0.655	$ 2.110	$ 1.895
Subsequent Event [Member]
Subsequent Event [Line Items]
Cash distributions per limited partner unit (in dollars per share)	$ 0.715