DKL - Earnings call transcript Q2 2021 | Delek Logistics Partners, LP

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Operator

Good morning, and welcome to the Delek Logistics' Second Quarter 2021 Conference Call. All participants will be in a listen-only mode. [Operator Instructions] I would now like to turn the conference over to Blake Fernandez, SVP of Investor Relations. Please, go ahead.

Blake Fernandez

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

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

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

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

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

Reuven Spiegel

Thank you, Blake.

flow to of second in $XX approximately of XXXX second quarter compared Our million XXXX. cash $XX distributable the was in million the quarter

$XXX represents quarter from XXXX. of million second XXXX available on on XXth. credit increased $XXX limited Our be X.XX X% June and X.X% from facility. to approximately XXth, $X.XX the represents increase DCF second in quarterly the EBITDA for quarterly of capacity unit partner distribution coverage to million This first to $XX to ratio ended year unit for distribution limited million, of paid which partner over We the was increase quarter August, the quarter period. period. June compared had our X.XX per and $X.XX for the XX, XXXX X.X% is our DKL prior a was prior At per increase the quarter year distribution the

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

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

Blake Fernandez

Reuven. segment, year. quarter was May Wholesale million last. Marketing the Terminalling margin second segment, on $XX performance. million the Transportation $XX our dropdown to contribution $XX this in contribution in to last of to in was compared compared Pipelines second assets Paline the of margin and the primarily trucking $XX This In Thanks, second the of Xst, XXXX second the attributable our and million quarter dropped increase In pipeline million quarter was year of quarter and the

of prior the During was million approximately our of million sustaining income crude the year which pipelines approximately second venture million, consisted quarter, discretionary second and of $X.X the in oil maintenance. which expenditures was quarter million of $X $X.X period. joint from flat Capital XXXX, equity spending were with $X.X

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

Uzi Yemin

debt offering, extending successfully pipeline sequential maturities. flexibility performance activity turnaround you, impact, creating note morning, no good million the second in We a a of in and Thank quarter. witnessed $XXX and Blake maintenance and raised weather lower of to lack the strong We the everybody. winter senior the occurred based on quarter Paline in first of increase that our

remain consecutive X% on history with our delivering continue the committed and year -- increase a growth to third we long full increase, a We basis. of distribution XXrd

has the the for major for please no that, remain the questions? open Our was distribution call that coverage of plan and rest you operator, leverage and healthy With Delek year. ratios can maintenance positive

Operator

of Dounis [Operator Instructions] session. from Spiro now go question-and-answer ahead. will begin Please We first comes Credit the Suisse. The question

Spiro Dounis

half with Uzi, on year. thoughts here for driving the the morning believe macro set Hey, in there back of lot It was guys. exception bit some of course, and there up seems your into you. always I the on kind I hear to and didn't the overseas. green out variant of Delta the lockdowns one even hoping of a been cautious demand the before energy, XXXX. shoots in first like of rebound that

I think a story. XXXX more of it you saw

just that that downstream in less up more materializing for or set GMP you second any So, of really the half, just of how kind like be curious great. expected, and thoughts would

Uzi Yemin

again Spiro. your for Good Yeah. Thanks interest. morning,

to just push try let And for a asked and more ask them. if of me I You did questions, back answer each one job, several poor info.

Spiro Dounis

bet. You

Uzi Yemin

the my are changed I We -- not have mind. situation. demand These

I have the time big factor here. contained We I I being we in know will being. see to And that get only situation be. may this mind. a for Delta think at demand normality don't it the changed not back our know, variant point, that XXXX. is But it don't

I third think giving vaccine. how works. see is it Israel We'll that already

at of rebound, will two So, XXXX. the we get toward year, tired the almost we've the the past, in year, said I be, fact of and will very I years. for as think people this strongest end think strong home expected after do very, rebound is being just the the probably XXXX being seen, big that that because XXXX

to employers, office. anxious back see I their the employees that CEOs to think, I happen. would that do are And believe

to We below the we're So, X% what, getting there. see the situation demand, demand XXXX. is X%

to end year normality I early will back and this think of next year. get toward we the

about are energy asking You the the activities in sector.

about I of more more sector is or acquisitions. be must Energy and HFC -- talks merger of and ripe I merger acquisition changes. for energy that say will everybody the -- Sinclair, and there also think that We transformation. the

fast I think little the that we're of is picture. conclusions fuels out that to too bit a to come fossil

the don't the -- next car would years. this years think, many capture, drove I situation. us. to office asked ESG, change ahead about, the and still I market, Last over with here carbon I as five as Obviously of I that changing we you have morning, our well but my think

the We need the haven't the that getting changed project, our we that win successfully towards Paline Red look carefully are still Obviously, situation Wink that Webster. to fruition, [ph] next Slurry to mentioned of the XXXX, year growth, dropping the We to we River mind there. and is much. have came end we organic us down

hope I think, I that I answered you had. question every

Spiro Dounis

no. No, Yeah.

able be it, You'd to great the appreciate color. as

time growth my And comment these question, so, which on last is -- your to projects. that next

a to you lot said sounds to Springs, your think complete before dropping to that Krotz at you've we're But just curious timing out of event. terms just where between before Webster of Wink projects kind growth some is there, Krotz is, that want growth next moving of I point of on to organic got Springs. down these going year organically on you'd in your a like completing

Uzi Yemin

then or a to to of the forward then look with of later -- Well, discuss today. certainly assets exemption Krotz Court Krotz down administration at even Webster with to I of and Springs inorganic been the the But granted is growth then thing, the is improving will, Supreme the decision it on And, we've an the you grant the good maybe and dropping Wink should consider we'll carefully organic Krotz. is top other of market. -- we as a mentioned course, project of different list, if very we Krotz, refinery,

Spiro Dounis

all you. Perfect. today, Thank I That's have guys.

Uzi Yemin

Thank you, Spiro.

Operator

time. Uzi at other question-and-answer to our no conference like to back are There I questions turn Instructions] concludes for closing would [Operator this remarks. This the session. over Yemin

Uzi Yemin

like table I'd being thank to Thank you. for around such investors great everybody colleagues. in the Yeah. I'd for thank your trust like to you us.

great each one each company -- our what and makes each thank do Thank do, of and I'd in You you this of mainly the I'd morning. a like thank you, couldn't talk company but wants company, to we company one it Directors, for continue of Board great it without to -- supporting Have for I'd thank is, one our that Directors you them like guys. soon. like this of management you. to Board to this We'll believe employees, show of to that. a

Operator

for you presentation. The today's attending conference concluded. is now Thank

disconnect. now You may

Blake Fernandez	Senior Vice President, Investor Relations & Market Intelligence
Reuven Spiegel	Executive Vice President and Chief Financial Officer
Uzi Yemin	President and Chief Executive Officer
Spiro Dounis	Credit Suisse

Delek Logistics Partners (DKL) 4 Aug 212021 Q2 Earnings call transcript