DKL - Earnings call transcript Q3 2018 | Delek Logistics Partners, LP

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Operator

Good day, ladies and gentlemen, and welcome to today's Delek Logistics Partners' third quarter earnings call. [Operator Instructions]. And now please welcome Mr. Keith Johnson. Sir, the floor is yours.

Keith Johnson

Grace. you, Thank Good morning. everyone, DKL's to Results. Third thank, joining on to us for Quarter webcast like discuss this would I XXXX Financial

me Kevin will Partners' call our management as on Yemin, of Joining General our other be members Chairman CFO, Kremke, Uzi CEO; team. as well and today's

statements securities a law. As forward-looking this is term call conference that reminder, defined contain may as under federal

forward-looking not statements. made expressions statements any forward-looking limiting expects For statements during deemed this to that plans, be this statements. the be historical of are foregoing, are Without fact the identify anticipates, words may purpose, call intended believe, to similar and

cautioned filings latest You're important our with by the affected Securities earnings release. Commission may these our that and be in in factors set forth Exchange statements and

results as actual publicly differ new result discussed undertake result, the results statements. or whether the to information, no events obligation otherwise. a statements, from a operations in forward-looking materially forward-looking We or of future any may update As

strategic of to results to In encouraged posted principles, the With the over is results, non-GAAP be closing are which addition Investors measures will to reporting release, non-GAAP of financial results. financial press in that, report the which On call Investor in our Relations accordance I'll GAAP, these GAAP the we Kevin. or found to generally today's with financial remarks. on the offer certain overview, few will a reconciliation accounting section a website. turn review begin comparable Kevin call, then Uzi accepted with can financial

Kevin Kremke

a Keith. performance. quarter had We Thanks, strong third

the benefit acquired year-over-year Texas Pipeline improvement in March drove the third cash to compared XXXX high us X, XXXX, Spring to from and logistics West the year Paline continue assets a enabled effective distributable Our prior Big flow the margin performance The period. coverage ratio. the maintain quarter improved from gross the increase results to

XXXX of million year. approximately flow of quarter the in the third million by quarter in XX% third compared cash increased to to distributable last $XX.X $XX.X Our

quarter than Our of the DCF $XX.X quarterly $XXX XXrd coverage by September third paid an million XXXX second our a quarterly in on is is the which capacity prior the be our from per of XX% $X.XX as in EBITDA X credit to September compared third XXXX DKL from quarter available on had X.X% we unit. year, unit. distribution November increase to million November to partner distribution unitholders this X unit is quarter year to record performance, on period. distribution increase XX.X% period. increased year ratio consecutive was higher increase is Based our At to X.XXx per facility. $XXX of per $XX our million quarter our for This distribution million is increased prior and XX, ended This limited XX. our X.XXx XXXX, of the for approximately and

at previous effect the balance have balance cash the closer leverage of higher the the million the third receivable, the than we and This cash of we would maturity XXXX the is for XXXX, facility the past. balance were to to be X.Xx. receivable our million, the X.Xx third in credit the currently quarter our facility. the to of forecast, debt of highlight by Our of credit ratio from $XXX September $XXX ratio of is the and leverage combination that total in XXXX under believe well the of total If higher $XXX X.X to wanted cash year-end. of of quarter. XXXX. extended intercompany approximately part our and elevated I based And end higher carried is the intercompany leverage and September within maturity X.Xx that the we leverage adjust on the commitments at This end should million was range allowable current reason increased X.Xx of that was a a by December in from been to

net million, in Delek the all For or net which per attributable partners Logistics period. $XX.X the $XX.X period. interest of to million income unit in $XX.X $XX.X to income million reported compares prior Partners' per compared year to Limited prior was unit $X.XX or third $X.XX quarter, in year million the

Pipeline. $XX.X Transportation million Next, the I In and period. the Pipelines contribution and margin to Wholesale million expenses acquisition. year, the our operating last Big In was this acquisition Texas This $XX.X million $X.X Big XXXX in $XX.X in primarily was the quarter acquisition. gross quarter of $X.X prior the of an million prior attributable from Spring in segments. our due was which million due the from Marketing our the the quarter expenses in Terminalling $X.X This to million $X.X to of to the year. third contribution in and year period, third the Operating million the to Spring year quarter increased the primarily the in acquisition of margin. quarter million primarily segment, margin XXXX from West due the Operating segment, an third increase third $XX.X in improvement compared and increase in year prior will improved review was to the again increase increased primarily to from third period, Paline performance was XXXX

to year. the was prior per day drilling third to of Our barrel Texas compared West activity West quarter, Texas as per increased. the was per barrel in the into compared XX,XXX prior We'll in XX,XXX Basin in in quarter has the Throughput Permian barrels day fourth XXXX in the to $X.XX just Texas of $X wholesale West third margins per barrels continue quarter year. see strong in under gross margin the

Texas per averaged During volumes barrels $X.XX approximately XX,XXX averaged October, the West barrel per gross in approximately margin day. and

expenditures to of $X.X maintenance. million $X of third million discretionary in third $X.X XXXX, our Capital prior joint included equity this income million compared were year and in of was $X.X quarter oil approximately venture million quarter the the of $XXX,XXX pipelines the spending During our from of income year period. and crude approximately

approximately $X.X During quarter US. million third of the by reimbursed Delek was XXXX,

For full gross discretionary million, reimbursement XXXX, is $X of US. of and capital includes $XX.X by year million Delek forecast total before CapEx million $X.X maintenance our which

of comments. approximately the the CapEx $X.X With to reimbursed expect turn Uzi We to be over million call closing I'll maintenance in for XXXX. his that,

Ezra Yemin

Thank you, Kevin, and good morning.

Permian generated the wholesale developed. Paline the West Over of business months, a we the been Big Texas have This assets, EBITDA. have million last we our This platform the by consists supported and -- X of logistics has Spring Basin Pipeline. $XX

assets rate Delek from US the in the we utilization support. In addition, we have benefited high

its further to in organic their Permian needs partnering sponsor continue grow By explore to evaluating continue Basin sorry, its continue opportunities crude announcement with in they we're I'm logistics our oil We they as through With assets to pipeline, grow. of long-haul crude system oil that options opportunities. the and to the -- gathering. generating are Spring proposed to interest and US, base its that are amount increase Delek's Permian support Big gathering Delek they of the third-party PGC crude

us to unit a fund coverage. in an partner we recently forward. growth improving to leverage of we the the assets create distribution ability has that Grace, XXXX value able potential to in $XX $XX This continue XX% of $XX our US that XXXX, annual for put you while We believe million that, a With should appropriate the million With our position drop-down for will ratio moving to Krotz credit distribution million limited per be unitholders. annual call that $XX can logistics refinery questions? open Delek least through and to this support better potential with should long-term -- maintaining million future be and EBITDA. Springs our expect strategy, to extended at at drop-down addition, generate In facility

Ezra Yemin

your support Thank -- thank thank on us. this Also, and the you. this you your thank I'd like great colleagues have who I'd thank I'd table, to company to with of our like like a great it to to the for Directors, continuous is. day. investors call to I'd company. And the around mainly, listening our for support. you, Thank employees everybody Board my within make company like obviously

Operator

concludes call. all gentlemen, participation. Ladies and conference we your That for thank you today's

Have disconnect. day. now great may You a

Delek Logistics Partners (DKL) 7 Nov 182018 Q3 Earnings call transcript