DKL - Earnings call transcript Q2 2022 | Delek Logistics Partners, LP

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Operator

Good day and welcome to the Delek Logistics Second Quarter 2022 Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Blake Fernandez. Please go ahead.

Blake Fernandez

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

our Soreq, on Partners our and management me today’s will of Uzi Joining call other members Chairman; Reuven President; Yemin, Avigal team. Spiegel, CFO; be General

and statements statements and securities our that a without laws, differ uncertainties As forward-looking limitation, this involve future is results term statements to call conference that reminder, guidance business forecast. including, These outlook. defined risks contain regarding actual trends cause will as under may federal or from materially

For SEC, dates. with have filings, more update refer Avigal, turn call, annual will along release will associated to with information, risk XX-Q call. session. their call today’s overview, and quarterly the recent will and Form in and we Form factors which or the company review and I that, to With XX-K press discussed information, obligation Uzi Q&A On please this the Uzi. assumes no report report any with most both I the results begin respective the The then statements with will company’s then forward-looking on a from financial to we of speak a provide or will Reuven comments filed

Uzi Yemin

Avigal is things over traditional positioned product the in diminishing both Elevated production new options. assets a X capital DKL The upon and increasing activity Blake reliance is DKL the from revenue well price attract with company commodity global and and hand is Permian additional this cycles. assets, results which third-party more in geographically the good growth President, from benefits and well-positioned opportune number our This Basin entity. helped the the geopolitical infrastructure. business time reins and DKL Thanks, The investment morning, an of underscore to of benefit various propel everybody. consistent DKL including should delivered sponsor-based in other and opportunities, Bear and through lines. the to Soreq. unrest to help the increase midstream MLPs significant true standalone has new towards from MLP energy

Avigal Soreq

working water the gas continue and a to and into And producers solid. The and closely assets company. assets. integrating unitholders to for to positive results our the am and with new the expanded Basin. we ongoing remains Gathering our the while operating X volume third-party Permian on the and to X part this family. you, the since Unitholder On going DKL to to like basis, row, an and annualized returns on adds a an Thank We puts quarterly in track increase X% would we around X great that X, closed to back On been welcome deliver be yield it’s have distribution a Bear again. of public. June the Uzi the increased remain legacy natural looking of Delaware produce see the I our we expect Bear focused to are portfolio critical dividend maximize a XXx exciting story team increased strong the X%. increases. Bear team our acquisition. from I addition to Delek outlook mix value is our This into year-over-year. footprint revenue, On safely product widens system, we demand continue forward and reliably our

would leadership and will I thank I With years Reuven. many that, over the call Uzi of for to mentorship. Finally, like turn to

Reuven Spiegel

you, Thank Avigal.

in approximately cash the quarter $XX XXXX. flow transaction That second Bear to the million cost ‘XX. quarter distributable was as X compared adjusted in Our $XX second of for million of

X of quarter was EBITDA X.Xx million includes with was transaction year compared for which $XX for the for adjusted the as X.XXx ratio period. the million, coverage acquisition. DCF to cost second Bear costs $X.X Our associated transaction prior

August approved an year-over-year. ended as will distribution unitholders June in paid $XXX quarterly of track increase This XX. the capacity August on our record for X, partner to distribution million XXXX Board ‘XX, be target quarter our At $X.XXX per X% limited Our XX to unit facility. to $X available of had DKL XX, June remain we and on on billion the deliver credit

which Our June total balance increase X.Xx in credit is This billion. debt was the ratio resulted that X. the Please Bear under we in And ratio, within to time. the X.Xx, sheet our reduce leverage over the total approximately X well expect facility. the allowable note $X.X which closed acquisition, on was leverage which an reflects currently

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

Blake Fernandez

In quarter driven and Reuven. $XX.X at $XX.X primarily quarter our in quarter increase of million decrease The strong Wholesale million million wholesale The in was Delek in last $XX year. refinery to attributable year. the Marketing this segment, and rates compared margin last second was Terminalling our second contribution margins from in ‘XX margin Pipelines West the the primarily Texas to $XX second Thanks, million was Transportation utilization of the In was to segment, US. contribution business. quarter second year the lower of compared

increase quarter equity strong both venture at Caddo joint River crude oil mainly our second from ‘XX, pipelines of was and $X.X driven compared in approximately by prior year. million joint the Red the income million was to volumes ventures. This $X.X During

year, of legacy $XX.X of growth fourth strong the early reflects outlook gross The opportunities around total to the volumes expenditures. DPG please million on $X capital. of of quarter open can that, we call for demand, the double you Permian ‘XX and producer closing for quarter questions? in from of consisted growth now million the ‘XX. operator, of Based $XXX,XXX the which acquisition business. levels $XXX growth ‘XX $XXX sustaining quarter the maintenance second expect the additional by X million and spent spending of This third With this maintenance. capital Gathering of the Bear expenditures Moving $XX.X end includes We including to and of million, for capital of million in

Operator

with question Please first ahead. Cusimano Our Partners. go Michael Instructions] Pickering [Operator from Energy comes you. Thank

Michael Cusimano

Hey, little a flat. like good the Quarter-to-quarter, doubling I one Gathering question just it volumes. volumes of morning. were had on Permian looks

could talk So through if like some driving I stick, of will, quarter? hockey hoping maybe the was that ramp going drivers and looks you into the what big you next

Odely Sakazi

Sure. This Odely. is

have what look also at to look what see is this both QX. think both both are you is pipeline – the need what And expecting we on we trucking. I on QX also on also the what and we to in and on

combining those levels. getting production trucking the with production, So where the is if we are are into along both pipeline we also this

Michael Cusimano

Thank Okay, helpful. got That’s it. you.

Blake Fernandez

Michael. Thanks,

Operator

question-and-answer to turn over the any would this like see conference we to session. I Avigal Soreq As no back point, at the for questions this remarks. concludes closing

Avigal Soreq

you. Thank

to like Thank the Board here So of mostly worked investors I our thank on the of hard so next joining big we and you. employees. would will to very and much support table on us that the quarter, Thank and the in management you the this the for trusting the call. Board call talk

Operator

now you today’s has presentation. Thank conference attending for The concluded.

now disconnect. may You

Delek Logistics Partners (DKL) 7 Aug 222022 Q2 Earnings call transcript