DKL - Earnings call transcript Q4 2019 | Delek Logistics Partners, LP

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Delek Logistics Fourth Quarter Earnings Conference Call. At this time, all participants' lines are in a listen-only mode. After the speakers’ presentation, there will be a question and answer session. [Operator Instructions]. Please be advised that today’s conference is being recorded. Instructions] [Operator

like Blake conference go Fernandez. now speaker to ahead, hand Mr. today, Thank to would over the your sir. I you, please

Blake Fernandez

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

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

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

this during For fact this that are be purpose, deemed forward-looking be historical of call any statements statements. made not may to statements

Without anticipates, to plans, limiting are believes, intended words identify expressions foregoing, the expects, forward-looking and the similar statements.

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

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

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

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

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

Assi Ginzburg

Blake. Thanks

east gathering will Paline year year on results improve from system. Texas a and pipeline, performance marketing quarter benefits our over Our the basis

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

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

Excluding related prior year $X.X over EBITDA spill XX.X% period. million of increased

paid cents XX.X X% distribution XXXX. the on XX, unit we increase represents per performance December February for increased and XXXX. was to on third our fourth outlook, our and quarter distribution quarter limited XXXX Based XX quarterly the ended partner from This the

XXth XXXX At and approximately of our consecutive has fourth X.X% $XXX a distribution. XX available facility. December quarter our quarterly $XXX our is XXXX DKL capacity This million is credit higher million increase on than

Our total debt under $XXX available total and X.XX our a currently in was decrease credit facility approximately in times ratio leverage million X.X prior times quarter. the of

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

Blake Fernandez

Assi. Thanks

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

pipelines segment XXXX fourth XXXX. our And $XX.X was margin was costs. $XX.X and related This million, contribution quarter the compared in to primarily the quarter fourth to transportation spill attributable decrease million

tariff to XXXX. assets. tariff Pipeline contribution after benefited costs, end from of higher in the and have margin February year gathering strong reset due those higher our rate performance over a to Paline the year Excluding a The July increased at also subsequently expired incentive from XXXX would

in spill related $XX.X quarter aforementioned XXXX the the primarily million of from year million increased expenses in Operating period, to fourth $XX.X prior due costs. the

quarter first to XXXX normalized to operating expect We expenses levels. return more in the

operations. year. the was terminating and due this contribution segments and million margin $XX.X million our to of a This a gross $XX.X fourth West in the marketing prior wholesale quarter which lower was decrease decrease from our margin was In year, in Texas

the million prior period. year $X.X than of expenses Operating were lower

of gross barrel XXXX, barrel compared the of to $X.XX fourth the margin wholesale quarter $X.XX in in Our per year. quarter per West Texas was fourth last

compared per day, per Throughput day year in the prior in XX,XXX barrels X,XXX period. West was barrels to Texas

the fourth compared of was million net venture joint approximately During $X.X oil income pipelines from of our $X period. income prior to year crude equity million XXXX quarter in the

quarter the maintenance. approximately In of $X.X including 'XX, million were million $X.X of fourth of were sustaining spending total $XXX,XXX expenditures and Capital discretionary million. fourth of XXXX expenditures $X in quarter capital

year total were XXXX our full expenditures million. gross For capital $XX

For full million and million, is gross our year includes total capital. forecast million XXXX capital $X.X maintenance which $XX.X discretionary $XX.X of expenditure of

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

Uzi Yemin

and performance a and pipeline Last well DKL XX% performed year, the over despite underpinned everybody. which segment and you, expenses. growth the Gathering Blake. Thank we contribution for entire has strong solid of assets distribution at Good work transportation The morning, enjoyed year. remediation

into from the cash year half second expansion. we the increased generation expect flow Red the of XXXX Moving pipeline River in

looking structure balance the at DK. the for asset sheet our drop capital potential opportunities we're and Additionally, down simplifying preparing sponsor, from

and of flexibility. expect With appropriate part XXXX, for LP a an in outlook increase growth, the while maintaining continued we in coverage distribution distribution our

to you Ginzburg, in years with back with family decided CFO move company. family XX our actually his our as move Israel, to Assi probably after back read, has Finally, to being Israel, his

are take it. you opportunity and great Assi good or company, to couldn't involvement distribution Delek thank just And that our luck without Thank to to great like and DKL here the the U.S. state Assi. friendship, I'd his in be what him fact for they

I like to would the for that, questions. With call open

Uzi Yemin

to target table year, to was introduced that the we around contribution. lines DKL. our we're more, everybody year $XXX the our of million thank EBITDA $XXX the it here business I to million on was another EBITDA. our their thank where way like enormous, more and of I'd for that for call to into employees would growth like wonderful And I'd

our investors talk to Directors. We'll trust Board of nice for a thank day. also like Have in you would us their soon. I to and

Operator

this call. you Thank you. and participating. gentlemen, Ladies concludes conference Thank all for today's

disconnect. now may You

Delek Logistics Partners (DKL) 26 Feb 202019 Q4 Earnings call transcript