DKL - Earnings call transcript Q4 2020 | Delek Logistics Partners, LP

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

Operator

Good day, and welcome to the Delek Logistics Fourth Quarter 2020 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, today's event is being recorded. I would now like to turn the conference over to Blake Fernandez. sir. ahead, go Please

Blake Fernandez

would webcast thank Partners' to results. XXXX I us fourth for on financial this discuss like morning. everyone to joining quarter Good Delek Logistics

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

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

of non-GAAP GAAP, financial accordance in Web Investors In which addition comparable the we Generally which posted in our Accounting review report Principles financial GAAP press found certain these measures is to site. to encouraged on with or of non-GAAP results. section Accepted are results results, reconciliation Investor to the be release reporting the can financial the Relations

the press review are overview, has segment and will Reuven remarks being remarks. release I'll and are call, incorporated that is release. today's XQ over few turn than closing assuming made the offer to into With will covering earnings we begin and prepared strategic that, the On call a market financial Uzi less reviewed will a Reuven. I the been Our with information results,

Reuven Spiegel

Thank you, Blake.

benefited performance along the from quarter year-over-year contribution and business stable on fourth asset operations, a initiative recent baseline business Our with relatively dropdown, basis from asset optimization.

XXXX. of Our period. XX% distributable of cash attributable partners to income compared XXXX, quarter million the in approximately $XX the over $XX fourth flow year increased quarter Net was to the prior in fourth million approximately all

represents December performance our consecutive partner outlook, the was X, unit of on on quarterly limited quarter of quarter X.XX distribution December This X.XX is This year XXXX. over paid third XXst quarter coverage approximately XXXX, ratio a our fourth fourth per was our had is to prior $XXX $XX a than quarter quarterly compared XXXX, X.X% and XXXX. on from period. facility. our the increase million higher in increase represents was distribution. $X.XX the Based prior DCF year the DKL XXXX, our increased Our XX% $XXX for million February period. EBIDA XX, we credit increase, ended distribution of million, which At capacity the to and and XX, X.X% available XXXX for

debt total leverage the the Our within times, is X.X is under approximately $X times our allowable currently was billion, facility. total and which credit ratio X.XX

the helped cost Finally, rights, reminder, announced elimination as distribution quarter our a the the lower during capital. which third incentive we of of

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

Blake Fernandez

In Reuven. recent $XX XXXX the $XX and the segment, fourth in attributable asset Big primarily Pipelines Assets. to Gathering including of dropdowns, to and quarter the Transportation was Trucking Spring Thanks, This our fourth contribution million, XXXX. was quarter increase million margin compared

million XXXX, $XX Operating decreased quarter Marketing $XX the Terminalling the million expenses year. million in prior $XX margin million quarter the fourth fourth this to operating the segment, than $X Additionally, our in Wholesale year prior in came higher of from was and the million in expenses compared in period period. in $XX year, XXXX. of same contribution In

$X.X were million of quarter XXXX, year our of and which ventures of from quarter compared the million in discretionary $X million fourth XXXX, fourth of the During maintenance. of spending Capital million approximately the was equity crude $X oil sustaining period. joint to expenditures consisted in $X.X $X income prior million approximately

maintenance $XX.X million forecast full-year of of discretionary gross For capital. expenditures $X.X call XXXX, million I'll closing capital total $XX turn includes the his that, With Uzi comments. and which for over our million to is

Uzi Yemin

everybody. morning good and Blake, Thanks,

XX% fourth as stellar the XXXX. as the distribution last X% macro yearend creating XX% full-year quarter in relative distribution basis, industry. Net leverage EBITDA year. quarter of headwinds underpinned we ratio years year Our our delivered commitment targets XXXX. we and coverage distribution for strong than company income This on and up five for despite in We versus our delivered outlook strong top flexibility our respectively increased fourth a results on earlier approximately another wounded progressed increase expect and growth by tremendous as is expected performance. exceeded continued we our operational in We for into performance

you that would Lastly, is to I real entire acknowledge that, testament a recordable Operator, year the without employees. the for incident call questions? like to would DKL which With please went open our one

Operator

Absolutely. from [Operator with comes Credit Please Today's Spiro Dounis Instructions] first Suisse. ahead. question go

Spiro Dounis

morning Hey, guys.

maybe I West think and a tie Texas we that that. have you margins question, of some in if prices, want XQ RINs hit kind run RINs quarter in talked of guys up First to could, last driving to just strong, fairly about

we against are down little the so, when West look quarter RIN come much a backdrop they did the we fourth surprised Texas as margins prices increasing. at And in as marketing of

continue variability, prices margins So, RINs be strong address you to as the first look far and that curious forward, marketing then, if Curious the we in for and into New quarter year? are means Year. that the so you some pretty to of what going think into

Avigal Soreq

am is question. respond to that I this going to Hey, Avigal.

but we were So, better, RINs that specifically exactly that hedging lowered you sale, compared West QX had around to the to right associate [indiscernible] that gross seen we've the applied same from some the looking losses still standpoint, as QX. the margin said, that bond QX. [Coast] we with overall seeing are [Ph] are as

RIN looking into As we the still looking fairly strong. QX,

the this will to associate We still are QX, contributing on looking but be standpoint, RIN hedging from a seeing still are that improvement. we

Spiro Dounis

okay. it, Got

there. the was hedging Good, okay. like sounds driver big So,

Next targeting just market. is achieve companies you growing still suspect to you but distribution want see, which question, I are X% guys great back, to grow Seems in some EBITDA. a not again, actually coverage, of just are could you down this growth many by easily step working your distribution like taking maybe that

going to terms support you that this looking to the in obviously this, level, you drivers So, And bit about then, for are can EBITDA just distribution? kind of and are growth year a little grow review extent us the your internal you you that to could more level how broadly indication a goal talk to now of tethered some that just of that hinder you this grow year? bit either an give DK the at the right at an or help of maybe can MLP anything to are of curious undergoing

Uzi Yemin

do the morning; good We in is Spiro, Uzi. to this fruition that will quarter. projects several come have second organic

question because little We and the the identified initiatives one these assets about stay do or allocation. that in are to light to want know this DKL the give about jump we Not project we say, They competitive them. going very DKL, is well before problem thing obviously, DK in around DK we DK want We have that well even X% are feel disclose or several to vis-à-vis, in of may as level, to situation. to as that not market. not organic here, enhance I'm hat the at we don't very I behalf DK the ready them. wear more the but your just I'm good saying a The several thing of on ideas

be like if year, that's that, At DK that to to drop fully do we down. this that going we to the and Now park quarter so XXXX operated as obviously make this Pipeline fourth we started or we to Webster said, a decide much do is point, have will obviously, Wink operate stronger. something of Krotz Springs drop the did in down

that But improving itself. and Krotz we'll in or both just with see plays to your X% to the see, that margins nutshell, coverage back to be growth However, something because become how of organic Springs question. answer will leverage it don't ratio patient is may believe the play we We need project. hurt a

Spiro Dounis

Thanks, and everybody. great Uzi, That's Perfect. color.

Operator

the And over conference final management the concludes this question-and-answer team back to for I'd [Operator like remarks. session. to the any Instructions] turn

Uzi Yemin

the around Board thank and treatment We're employees to thank us. a thank like us year. Directors. Have tremendous you income, like growth this we I'd investors obviously day. what great net you. with of to for gave proud colleagues everywhere, for Yes, our EBITDA, mainly your Thank my achieved, had I'd of stock we'd but like DKL in very table, the and performance. confidence great year to a you the

Operator

This We for you Thank thank attending presentation. all gentlemen. concludes call. you, today's conference and today's ladies

disconnect have and wonderful now lines may a your day. You

Delek Logistics Partners (DKL) 24 Feb 212020 Q4 Earnings call transcript