DKL - Earnings call transcript Q1 2022 | Delek Logistics Partners, LP

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Operator

00:04 Good day, and welcome to the Delek Logistics Partners First Quarter 2022 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, this event is being recorded. 00:30 I would now like to turn the conference over to Mr. Fernandez. Blake sir. ahead, go Please

Blake Fernandez

Good morning. joining Logistics thank for like first I on today's would us results. Delek 'XX to webcast quarter everyone financial XX:XX to Partners discuss

Uzi me this future will Yemin, CEO; Joining conference Reuven as trends statements business our call under defined federal members laws, CFO, regarding is risks guidance contain as limitation, uncertainties Spiegel, call As forecast. management actual today's will team. and materially and our Partners' These XX:XX term may Chairman that as our on and outlook. General including securities involve and other to of statements well statements forward-looking cause be without from a that reminder, results differ or

information factors filing, X-K the most update the For more assumes respective discussed or along results, speak the of financial The information, offer in company Annual call Uzi I I over will turn and obligation remarks. With Form or no will On begin will to please that, recent Form filed XX-K a dates. with with will XX:XX press which today's and release. with closing review Reuven SEC, to risk company's associated refer the strategic overview, forward-looking statements Report call, the few Reuven. any XX:XX to

Reuven Spiegel

you, XX:XX Blake. Thank

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

per March Our the X.X% available quarter unit million, first represents Board times million XX:XX partner XX, in the be period. credit XX:XX This from $XXX from capacity X.XX ratio unit May the quarter and increase quarter X to prior had $XX DCF million paid Our prior the for represent ended and to holders $XXX of quarterly was distribution increase over an of of DKL year XX. facility. XX% our X.X% At in which for year to $X.XX the X.XX quarter compared coverage limited increase fourth March EBITDA approved record was increase first XXXX period. times XXXX. on May of will XX on distribution on the

debt times within the under facility. will $XXX allowable times, ratio our leverage well X.XX the XX:XX over the which discuss X.X million turn was Our is currently Now, to total credit total call was results. the Blake to and I approximately

Blake Fernandez

quarter $XX Transportation the XX:XX first was quarter and I the the of total to in of XX:XX in segment, 'XX of year As expenditures with of largely million comments. call million crude capital 'XX, first Please and Marketing to $X from primarily million both guidance consisted growth segment, capital of Wholesale note, facilities. the million the This Big being million closing 'XX. year our XX:XX the by turn a was XX:XX will million stronger of compared $X.X margin million, growth of driven terminalling expenditures our first During ventures. contribution in quarter million compared Uzi joint Terminalling quarter million the at includes in margin including planned and Spring pipelines is XBear second income Thanks, by of half million to full the driven Gathering of associated maintenance his With is toward capital. $XX 'XX was contribution and and acquisition capital Reuven. strong predominantly equity prior period. spending our volumes first over Permian year excludes gross joint increase oil The $X the which allocated venture and approximately in of marketing the $XX growth the of increase broadly million, was $X Capital first in compared the outlook last were In year. In in first volumes $X.X was which River $XX.X this to business. $XX line Pipelines 'XX, that, $XX.X for year. quarter $XX for Red reminder, maintenance. quarter the Caddo the million The for of approximately sustaining

Uzi Yemin

Thanks, everybody. is XX:XX well-positioned XXXX. moving morning, into Blake, and good DKL

growth fixed Permian for $X.XX with of the gas of planned strong Delek robust fourth quarters DCF see to you and legacy indicators Gathering quarterly the Our this product multiple fourth the attractive XX:XX including double We into that, and multiple Basin, the continue year. remain in operator, expected immediately the open mix as to XBear. This to our of please of provides ratio. This ability of to the an the and per more. seeing XX marked the call refining natural of we plant us our increase Permian the accretive provides more unit acquisition nominations at business benefits, where and the level on maintenance distribution of expect fee rewarding our Based industry is from third-party is lack acquisition confident activity with forward and we valuation into quarter to unitholders. Delaware consecutive with be our can company. recent diversification confidence increase the for producer year system, portion transaction With move macro least questions? distribution revenue, to this in US Finally, XX:XX our significant volumes us in quarter at of size scale, expanding last

Operator

Yes, sir. XX:XX

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

Chad Bryant

acquisition sounds like for debt. on This will Hi. XX:XX Chad financing XBear It is be primarily Spiro.

that in times at increasing in leverage comfortable that future, 'XX? X.X targeting ratio rate the reported higher XQ running near are than are Or you you back getting leverage a leverage with longer-term? So

Uzi Yemin

Good great a That's XX:XX question. morning.

Let's take phases. two it into

the the business, With next we and year fact we the XX:XX leverage dropdowns. the Gathering several the that going is underlying all, that business growth but financed Permian the is over there and because maintenance in acquisition, refineries, makes the underlying First we acquisition us business but can DK up with business that the said of did said, leverage then the the the -- no of go after because XBear the the of in fine. that the Then will to XBear quickly but up, with years two comfortable last being basic deleverage debt. be that with to tried be always in

come business, Permian, in expect because XBear, refinery the to what then we because with we is of we of up the growth DK to performing expect that because the of and well, So also happen the will go is, of the in performance and leverage down. the leverage

Chad Bryant

helpful. asset second question. financing forward? the Or your about this still then of around just Does you way changed is timing the that's the messaging XX:XX intact? identified drop And Okay, two think going dropdowns prior

Uzi Yemin

vetted said differentials months. going that we to that Well, fully XX to need the at to at be to are And -- look to expect fully in we next XX all course, utilized, XX:XX we we we said the starting which open, to it's growth over sometimes happen that carefully. time, along But the Webster, and Wink event expect of 'XX. this

if of way, W So things dropdown in we W. the expect 'XX to right should the go sometimes

Chad Bryant

for the XX:XX really time today. helpful. That’s Thanks Okay, great.

Operator

go the back like XX:XX to [Operator ahead, to for Instructions] I turn Mr. concludes over session. would our sir. conference This remarks. Yemin any Uzi question-and-answer Please closing

Uzi Yemin

talk people employees and in I'd to for taking us and I'd is. Well, for thank what our confidence in I'd EBITDA a of this the both to of that your as the it share to thank company performance, colleagues. Have good. thank first, the Directors. make mostly, my Thank table But thank the us this morning. to you. like great morning. interest like looks really thank the time performance great XX:XX it I'd investors like like around to to Board you and you,

Operator

XX:XX for The concluded. conference presentation. now Thank today's has attending you

may disconnect. You now

Blake Fernandez	Senior Vice President of investor relations
Uzi Yemin	Chairman and Chief Executive Officer
Reuven Spiegel	Chief Financial Officer
Chad Bryant	Credit Suisse

Delek Logistics Partners (DKL) 3 May 222022 Q1 Earnings call transcript