DKL - Earnings call transcript Q3 2019 | Delek Logistics Partners, LP

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the third quarter earnings call for Delek Logistics Partners LP. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question and answer session. To ask a question during the session, you will need to press star, one on your telephone. Please be advised that today’s conference is being recorded.

further press any zero. require you assistance, star, please If

Relations conference to your Senior I Thank Investor like ahead. the please Vice Market over go you, of Fernandez, would now Blake hand to Intelligence. Mr. speaker President and today,

Blake Fernandez

morning. and webcast everyone results. this would like discuss XXXX financial Delek Logistics Thank for good to us joining you I Jerome, quarter on to thank Partners’ third

well our Assaf on me today’s as other Joining Ginzburg, partners and and CEO, be our Yemin, call of Chairman general Uzi CFO, management as members will team.

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

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

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

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

accounting which in press website. encouraged financial reporting GAAP the Relations section which principles, to on generally measures the our reconciliation financial certain to in review In addition of can posted found release or comparable of results, report accordance the the results. with we financial to results GAAP, be are accepted non-GAAP is Investors Investor these non-GAAP

and then few offer call, I review, begin review On closing results, then a Assaf a financial will will today’s strategic remarks. with Uzi will

call the turn will I over to that, Assaf. With

Assaf Ginzburg

Blake. Thanks

of JV in marketing, basis. and the improved benefited contribution year-over-year full performance the from SALA Paline May Red quarter Texas acquisition, River year, quarter system Gathering a East from results third on and Pipeline, from completed this Our

in third approximately XXXX. was $XX.X million in the XXXX the quarter $XX.X to quarter million DCF third Our compared

million third the over X.XX prior X.XX prior XX% times EBITDA in Our the period. coverage quarter represents for year year times $XX to increase XXXX DCF was which record a compared a period. the was

quarterly XXXX. on Based outlook, unit XX, increase increase XX.X% will on our to This be increased September for XXXth and quarter $X.XX XX, our our quarter limited third distribution. distribution from quarter quarterly the XXXX, ended a is consecutive of paid distribution we This per second November the XXXX. and higher than X.X% is XXXX performance our

$XXX million of At September our had approximately on capacity XX, XXXX, available facility. million DKL $XXX credit

million times of a Our within X.X under the ratio facility. our is was and total total $XXX leverage approximately times X.X debt currently allowable credit

I Now to over call the results. the to Blake discuss will turn

Blake Fernandez

Assaf. Thanks

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

of third pipelines from was compared the XXXX. the last performance $XX.X after the of to the higher improved The year. XXXX to rate in margin our a segment, quarter tariff incentive expired million increase benefited $XX.X transportation Pipeline attributable million February the at third Pipeline. and In Paline primarily This was quarter Paline contribution from end

in to the quarter employee expenses. outside primarily the third from expenses and prior in of increased services million XXXX due year $XX.X to million Operating period, $X.X

quarter We in expect fourth expenses. elevated some the operating to remediation one-off expenses due

operations. higher prior million Operating marketing gross period. gross asphalt. operations, This line by lower margin was West $X.X partially were contribution year was from and to of was third a margin including year. terminaling Spring million In of $XX.X year, expenses offset Texas East our the terminaling Big increase wholesale due million $XX.X prior segment, this revenues, quarter increase margin, the the which trucking with was in in and marketing in Texas improved the an This our in

third $X.XX West wholesale quarter to quarter the compared the Our barrel the compared per the margin in day day in XX,XXX prior barrels third Texas year $X.XX to in X,XXX Texas per barrel gross of was West year. in per Throughput barrels per period. was prior

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

the approximately Total XXXX. reimbursed $X U.S. in million. $XXX,XXX quarter third During was of capital expenditures were of Delek by third XXXX, quarter

For full $X.X million forecast million of which by maintenance is capex Delek year includes XXXX, capex $X.X and before $X.X million, U.S. discretionary reimbursement our of gross

million capital expect We maintenance approximately in $X to be reimbursed XXXX. of expenditures

Uzi With to his over that, I will call turn for the closing comments.

Uzi Yemin

contribution Thank and continues to DKL you and a quarter’s morning River well. to The Blake, provided good perform full transaction everybody. Red

increased expansion generation expecting completion of in flow We in it the in Red the are provides step year. next growth. the our the next of half portfolio, cash first River upon With

We organic continue growth, our to DK. evaluate options opportunities from sponsor, and to drop-down simplify IDRs,

the continues DK to our sponsor future logistics opportunity provide growth to it their third As party DKL. needs, on to should focus assets versus to partner company-owned realizing meet at increase with

growth annual XX% for growth least DKL, at this at units while XXXX coverage. limited support distribution annual through of maintaining partner continued distribution With our should appropriate

call questions? that, Operator, please for you open the With can

Operator

questions continue. There are this Please at no time.

Uzi Yemin

segment, I’d for directors our like the they their board to in trust thank or table of everybody quarter the was that to this the I’d together for hard Well, put us. work in around like for that record DKL. quarter thank logistics a

and company. our company to I’d trust for our company you of your course, and our investing like to one making mainly the like Of continued it each company in is. thank continued employees I’d in this investors for great analysts thank Mainly,

We’ll great Have a talk to you thank you. soon. day,

Operator

call. conference This today’s again you for Thank concludes today. joining us

day. all Have a may disconnect. You great

Delek Logistics Partners (DKL) 5 Nov 192019 Q3 Earnings call transcript