- Earnings call transcript Q3 2022

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Operator

Good morning, and welcome to the Delek Logistics Partners 2022 Third Quarter Conference Call. All participants will be in a listen-only mode today. [Operator Instructions] After todays’ presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded today. I would now like to turn the conference over to Blake Fernandez. ahead. go Please

Blake Fernandez

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

Reuven will Joining today’s Officer; and our EVP be Spiegel, of Operating CFO; members team. Avigal and me Chief and call Soreq, management on other O'Malley, Todd President;

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

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

Avigal Soreq

had this Blake. quarter. EBITDA record Thanks, DKL

We continue to build momentum on several fronts.

XXXX. an was Our met update of previously a volume remains X double to Bear which to QX engine legacy give between I business acquisition. XXXX for targets, on want you Gathering September This Permian stated our growth of to our our company.

tactically diversity from should about strategically. growth in line product and integration. the and opportunities. future We performing The serve and into with are we're progress geographic are expectations pleased of the well the acquisition provided assets with our the us additional initial excited The line

optimistic we With next the business Reuven. from business. forward U.S. a for the energy pandemic will has and on From Midstream rates is updating Delek recovered industry benefiting strong I call the perspective, quarter. level. you the that, our macro the to from are outlook utilization I at refinery over a look the Additionally, to turn

Reuven Spiegel

Thank you, Avigal.

is for was approximately in ‘XX. quarter compared million cost cash to in $XX X adjusted Bear third the $XX distributable quarter, third of Our flow the million transaction

DCF adjusted transaction times for third improved X Our includes to million $XX cost of coverage EBITDA as with Bear transaction million associated ratio for was costs X.XX $X.X the quarter. acquisition. which the

paid and X, At to unit to Board Our this capacity under ended distribution represents September XX, XX consecutive remain $X.XX increase X% track we $X quarters unitholders facility. and September increase our on the November record on of year-over-year. million on November $XXX partner be to of for of had distribution credit the approved DKL increases available billion an limited deliver XX. quarter on in quarterly XX will distribution per This

in October Our total date loan of new billion $X.XX $X.X In maturity including DKL XX. maturity senior October a was a commitment with credit of October, date to revolving a secured million million debt with billion. facility and $XXX $XXX term extended secured XX in its

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

Todd O'Malley

Bear X contribution million a quarter. Thanks, Reuven. operating The the in segment margin third of $XX.X had

The was contribution of quarter our attributable quarter by margin assets and Terminalling results compared system third our utilization the Permian primarily resulting our third in to Transportation third quarter X The margin in higher to gathering the segment, U.S. million legacy we the on Delek at tariff $XX.X ‘XX. third In company. contribution processing million and with margins. $XX.X decrease reflect from Wholesale for combine plan compared the in million $XX.X was of forward, million In Delek segment, performance operating the in Bear strong quarter was overall Pipelines refineries was $XX ‘XX rates the refinery the Moving to annual increase Gathering the lower driven escalations and better to Marketing costs of pipelines. 'XX. and to our

third crude million During strong oil from period. quarter income was mainly approximately to driven compared increase prior $X.X River XXXX, the million JVs ventures. Red joint our in of Caddo both This was pipeline equity $X.X at volumes year by the and

with maintenance. spent million quarter third in Moving consisted is of million X to $XXX,XXX predominantly capital. $XX.X growth $XXX.X for This approximately the for point capital expenditures, includes spending company's call spending expenditures that, the expanding operator, of XXXX Processing please open focused total of including With businesses. would 'XX, I questions? million out maintenance assets. includes that of gross for and which the the sustaining we growth can the on of million million The of Bear $X.X capital outlook you associated and and capital $XX.X growth $XXX.X Gathering

Operator

Cusimano We ahead. go will Energy And come with now Michael begin first Please the [Operator question-and-answer will Partners. question from session. our Pickering here Instructions]

Michael Cusimano

and target. on everyone, the Permian morning, Good congrats growth Hey. achieving

Avigal Soreq

Mike. Thanks,

Michael Cusimano

On here that front, us on you the can from forward? trajectory update going

Todd O'Malley

Bear we to the continue Michael. ready is that we business X hard any as see profile active in water to across and numbers, and both footprint, lines, say incremental Todd. At to the this as we but the gas, disclose footprint not X a natural Yeah, Gathering the And well growth Permian the are This Delek see in robust point, pre-existing growth oil. in footprint. Bear inside strong suffice three it all the particular,

it think that's leave of today. we I So where kind

Avigal Soreq

Yes.

those it's Just Avigal. to build on comment,

in rigs, XXXX. during alluded that think we're see seen what the on I to going increase of of DPG, we've nice to area, our a kind very

very about and producers. our acreage So we optimistic are

Michael Cusimano

Got it.

underwrote Bear of if growth. then, on? up trajectory you what saw volume follow-up guess are that side. We your quarter-to-quarter a I acquisition strong decent or And we growth get sequential helpful. very to the until pretty on wondering there That's I -- schedule the can ramp if the Okay. I'm on X like like you is -- ahead

Blake Fernandez

Hey, Blake. Michael. Yeah. It's

well. gone so encouraged very are integration We far. The has really

and of expectations. acquisition there, were original with when on in comfortable line robust. point, know, they out we targets the at very that you fairly our target feel And put this we we're As kind

we're So that progress is but with so very we're anything, far. not the pleased the communication changing

Michael Cusimano

Great. Appreciate help That's all guys. the for me.

Blake Fernandez

Thanks, Michael.

Avigal Soreq

Michael. Thanks,

Operator

no conference now we to will our Instructions] over [Operator to Avigal would back remarks. the further turn With for like closing I session. questions, conclude question-and-answer Soreq any

Avigal Soreq

talk are this thank to term is. and to the that want are table. want quarter. to as next good employees doing to and the and team the and detailed Thank again it very for most quarter. with record foremost nights -- so the around investor much of us I make management we'll performance. company as is the our We proud days long a This you thank that I'm

Operator

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

may disconnect You lines. now your

Delek Logistics Partners (DKL) 7 Nov 222022 Q3 Earnings call transcript