DKL - Earnings call transcript Q2 2024 | Delek Logistics Partners, LP

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Operator

Thank you for standing by. My name is Joel, and I will be your conference operator today. At this time, I would like to welcome everyone to the Delek Logistics Partners Q2 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Robert Wright, Deputy CFO.

You may begin.

Robert Wright

to Logistics welcome Earnings Second and Call. Conference morning, the Partners Delek Quarter Good on will and today's President; me Delek joining Participants call EVP and Sakazi, Reuven Logistics. Officer; Joseph include Operations; Spiegel, Financial EVP Chief Odely SVP Israel, Soreq, Avigal

reminder, business contain statements our As that involve and outlook. under These this as regarding statements may call laws, results uncertainties from securities statements forecast. federal including conference to cause guidance defined will a forward-looking the and differ actual future risks

more recently on risk on any forward-looking partnership's and no For associated the refer discussed factors information. release this or the statements report press with with information, to assumes filed obligation please call. SEC, to in the the partnership along Form quarterly Form update most XX-Q filed report with annual XX-K The

the Avigal? remarks. I over will now turn for to Avigal opening call

Avigal Soreq

continued adjusted million you, am pleased Logistics reported Thank Delek Robert. our $XXX.X had another We EBITDA. I quarter. performance. record quarterly Partners with

made several provider in We gas a transaction And position. Permian Basin. enhance will crude prolific we our natural announcements the full-service significantly is have announced and the today water today. DKL have premier

DKL DKL overall counterparties. to These First, oil DKL, Wink the Webster is and acquire overhang crude significant a to the us on a DK position. We interest It asset away increases WXW investment-grade contract quality enhance the amendments unit. to moves and amend on It let's backed contract pipeline contract years. sheet. Permian from extent month-to-month announced extensions strain allow by and pipeline an between the remove up to balance X without an about DK's pipeline. of terms DKL and talk The WXW between DK. the our at in of premier DKL

investment than is returns the gas cash plant highly This is to is processing today estimated XX%. cash of subscribed new in more and the plant. announcement generate DKL Second on

first half of plant during looking complete to the XXXX. are We the

The Midstream preferred. is of the acquisition cash EBITDA to last HXO footprint. $XX within today million transaction free transaction very The immediately an of The fits million accretive $XXX and existing and DKL basis. on flow for is DKL acquired asset announced well cash DKL

to increase track of in value As making Basin. complete comprehensive in independent parties, DKL company. Delek such EBITDA be will nonrelated this midstream first a of in quarterly to of XXXX, services capabilities delivering transaction the Once a provider In DKL our mostly to per expand the Permian half Logistics from distribution of record be the an further of majority Directors unitholders. strong July, a shown midstream Board unit. $X.XX approved the has are

continued about them we to are want made wish announcement opportunities the welcome ahead today DKL good success us. luck. to family We and have that and of the excited I team the HXO and the

now hand to I it will Reuven. over

Reuven Spiegel

you, Thank Avigal.

out As year a created liquidity management to of have us and Avigal carry leverage. allowed the growing of has we we are mentioned, we liquidity the prudent beginning Delek in a today. Logistics announced The transaction with

the end 'XX. of at the 'XX of managing point its at which of from and X.XXx end 'XX the high has the also at improved quarter leverage are second We end of to X.XXx our of X.XXx

to on quarter our second Moving results.

DCF to quarter was flow $XX.X the of was X.XXx. million ratio cash The million $XX adjusted $XXX.X second period coverage XXXX. distributable compared EBITDA the The million same was in and

higher due for to Logistics and $XX.X in segment, was Processing increase was Permian million Basin throughput of $XX.X EBITDA primarily second quarter to quarter Gathering the assets. Delek from 'XX. The million the the For compared

million the Terminalling was in million year. was the to prior and Marketing primarily compared quarter $XX Wholesale was $XX.X compared million higher increase and from in Transportation $XX.X to Terminalling Storage $XX in utilization. EBITDA EBITDA the by The driven compared higher the second the quarter mainly $X.X $X.X quarter to of this in transportation second contributed joint million storage increase rates. 'XX. segment million And investment of quarter venture lastly, and 'XX. in pipeline The was million

Moving second second budget was XXXX and new in Delaware 'XX of our gathering on of $XX.X in for The Most spend to announced previously Along Midland the with million. system. namely to quarter on million $XXX program new 'XX, to spend plant. processing million quarter capital in the expect capital we was for growth expenditures. for advancing $XX the of capital projects, the the connections half

open for call questions. can the we that, With

Operator

[Operator first Neal Dingmann line the of Securities. Your question of Instructions] comes Truist from

Neal Dingmann

First question very looks is just attractive. the which acquisition, Midstream HXO on

little services, I'd how a customer just love you here talked you future of about hear potential revenue full improve talk improves opportunities. sort mentioned to about you maybe that. costs more will and wondering the opportunities. wondered, that new Just have how secondly, that all then synergies. bit about And as -- the near-term of about can you suite maybe I'm

Avigal Soreq

Absolutely, Neal.

you you view have that more can deals So comprehensive doing One, X customer, same with are that. a about to aspects customers. the

around point operational that the this that you the third, each can relevant be infrastructure efficient be run so both top very are And second The way on services. the basically for can on is you other, the of your operations.

deal is us, synergistic. this So very and accretive, it is accretive for extremely

Neal Dingmann

gas And of? have you what that there wondering next future close. additional bit there might you then a like could I'm the And that I this And around jump maybe little on could consist just opportunities I year be? a what opportunities? No, on all I you is the know just but What see one, those timing beginning Delaware would plant. agree. of I -- again some how in secondly, could new think soon gas after -- gas processing future

Avigal Soreq

Yes.

said in synergistic the XXXX. have. we're know plant the if I been with that. current gas you subscribed. we Odely, into it's second So our that is don't to And to gas in We the going of complete half plant completely want first nicely already -- add

Odely Sakazi

to capacity what for seeing we're honest, Neal, your producer And our also just with right forward. going comments, now, currently the need have to already be Yes, from a additional and we bit. associated little

is new why highly mentioned. this is subscribed already comfortable as we that on on the So feel Avigal volume very plant that

So we see as soon our stand. much as timing that possible pretty from

Neal Dingmann

Nice additions sides. guys. on Great both

Operator

next line of Your Doug comes of Citi. Irwin question from the

Douglas Irwin

HXO to EBITDA you just $XX I Or are touch And factors rate run be million the high then end time? Is I provided kind Midstream over the on to if some wanted range talk dependent of a that expect consideration that we this good some of ramping of other maybe the for assumptions of there? morning. transaction Or under that there the $XX for mostly low about could some that synergies? to on is the million for end versus 'XX? wondering you was should range. the

Avigal Soreq

like we One contract X there extend. DK So is the that, around main are amend outlined. right, and components

is Second the is What that WXW majority good plant. think take of we processing assume synergies to from I and and to coming estimation the good going a of And is is number It's the is is out the -- the third think business. a forward. the coming that gas from Midstream HXO and not I that. fourth base midpoint

Douglas Irwin

if maybe look for units some the just as little hands more the and wondering Great. helpful. changing And a I presentation Slide if expectations materials, Webster are here Wink around at these in provide could transactions. recontracting. detail X funding part the cash to Okay. looks I component like of the of you That's was it

Just to that wanted interpreting clarify correctly. I'm

get And so the how into priorities DK. around might little maybe a of detail that play more the deconsolidation

Avigal Soreq

absolutely. Yes,

company. is So big net there the are amount units that between not are changing the hands, but

exchange value we like to and from pretty it's So it we another X got tax efficient. company

a that's good news. So

refineries. lot a right naturally pay we ownership, that under of we belongs attention to put the where need and of to and that the sure right put part can appreciate WXW don't the we basically equation. that value did, So for the What a asset exchanges it belong into you I'm the

Operator

I no the further now Q&A turn questions, Avigal remarks. CEO, our closing that With session. over to back Soreq concludes for conference will

Avigal Soreq

Thank you.

this family. would welcome guys, Thank investors, talk Directors, I the of to for quarter. we'll Board you, team Delek, HXO thank to and leadership our our So employees, around table, DKL the your like and the next my

Operator

today's concludes This call. conference

disconnect. You may now

Delek Logistics Partners (DKL) 6 Aug 242024 Q2 Earnings call transcript