DK - Earnings call transcript Q3 2018 | Delek US Holdings, Inc.

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Operator

Good morning. My name is Tabitha, and I will be your conference operator today. At this time, I would like to welcome everyone to the Delek US Holdings Q3 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator like the now Mr. over to would call turn to I Johnson. Keith

conference, You may sir. begin your

Keith Johnson

Thank you, webcast morning. us third Tabitha. Good XXXX on for thank quarter today's joining everyone call results. and financial to DK's I'd discuss like to

call using be and can point go we'll referring placed Joining presentation today's EVP team. Yemin, our the Kevin call as I our Relations They out management well have as do be Chairman, that me material will Uzi as the through be website. our on to remarks. website. CEO; that be Investor we President, we on a prepared to those on and We'll on of found the Delek want today's section of US CFO; Kremke, other members

call term As Please laws. harbor Slide statements contain may under defined a federal statement. forward-looking reminder, safe is the securities as this X for see that

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

On call financial Kevin. to With few assuming comments. market that's review information call, Our over has prepared XQ will made operations closing the a Uzi, the incorporated are over and today's I'll segment remarks in Kevin and offer it to turn are press that, that for will before quarter, release. performance release who turning strategic earnings press we the less being been reviewed, covering the as

Kevin Kremke

and flow a operations. with record from solid Keith. We our great quarter, Thanks, cash had generation results

to million the basis per reported adjusted quarter US share As this million you compared the X, income to quarter million of share per in Delek compared an per or in $XX.X million per share or XXXX, diluted $X.XX the can for $X.XX on the third net third net of diluted Delek year, period. for $XXX.X diluted share, income or Slide of $X.XX adjusted net of $X.XX or diluted US of quarter income reported On $XXX.X of $XXX.X third income see XXXX. net prior-year an

Our EBITDA million the $XXX.X in $XXX.X XX% increased quarter this by adjusted year, period. to prior-year third to million the of compared in

a third contribution Cushing differential $XXX.X to of crude as also a drove million consolidated improved oil improved Our contribution $XXX.X that million, year. $XXX.X in wider compared quarter quarter contribution in from $XXX.X of million margin year-over-year Both logistics the and third of This the it to a the compared benefited of Midland retail year. refining, in by led margin to on a third last quarter last of XXXX, basis. margin million to was

now Turning compared capital in were capital million to year. the last our the million, $XX to quarter spending, of expenditures third period during $XX

$XX our Spring level to the Permian million million corporate is forecast Included System XXXX segment, logistics segment, and million at in is million Gathering the This $XX $XXX spending in Big includes $XX our CapEx at refining in in XXXX million Basin. $XXX Our related the for $XX approximately corporate retail, amount million. the level.

million We basis. of of from with billion $X.X quarter September debt. approximately through on spent June and our Slide $XXX XX. XX of X have to the on ended a quarter position end consolidated consolidated third We net the $XXX third million bridges year-to-date basis the cash cash approximately

exploring the a strong million balance included large how Slide convertible with $XXX the during third spend XXXX, financial of reducing operations. support $XX.X our and million looks We prudently paying ability additional during business approximately at get also to growth. cash cash questions our opportunities returning discussing safe consideration a quarter while cash. Excluding at shareholders was wanted performance to of that net and million, the while a we supported $XXX Delek about and the million of balance quarter balance to With capital and notes cash couple of $XXX debt reliable to debt, sheet, shareholders, of of XX. approach I from to in had we had a of return disciplined This plenty net Logistics minutes investing into off to expenditures X, allocation. cash $X position cash million great operations, September capital cash $XXX our think cash On our million. also which of on Taking $XXX for continuing flow million, our free we generated

target Our XX% for goal more based company, refining, valuations XX% investments. aspects our of expected market we retail to it strategic and of the standpoint, generally on conditions this opportunity and each is in the a From for different while generation. logistics return in and and IRR balance stable how matches program the factoring cash goals

value different sheet As is as effort the operate, industry focus about flexibility through provide the to to in our which goal cycles we an think we we in a of of maintain the and the nature creating investment for business our on opportunities strong shareholders. long-term balance

out midstream our long-haul support to use our support these to combined in crude with to participate sheet have want we our a gathering I investments. Our oil to in the growth. pipeline, that point our investment ability should balance strategy system,

opportunities. and to these a balance, with large give cash alternate while allocating should including returning our strategic on support do to investments depending to we XX% shareholders. the While fund we cash to investments, during investment the capital cash XX% debt, uses, period other construction ability to This expect have us our generation

like I to X. Slide would beginning on Next, operational some give updates,

Springs project. is spent we Our XXXX. expect September operational alkylation Through first scheduled, late project in quarter approximately at and on to XXXX, the Krotz proceeding it refinery million be as of $XX we this

first in year. be $XX next total quarter $XX million we and The from EBITDA the million, fourth million remaining million of $XX quarter this in of the approximately expected approximately and spend $XXX to cost this to to expect annual project year We the million. expect is $XX

should a this convert into on low and As isobutanes Springs, provide grade gasoline gasoline. spreads EBITDA. it as project to further crack such Krotz RVP improves higher-value additional summer This low-value production the as to dependence premium reminder, at the products, future flexibility ability generate portfolio's reduces project

have system, would million more further. expect I XXXX. On $XXX $XXX $XX spent currently the an wanted cost and Slide expected provide some a expected This It million Next, dedicated annualized Slide guidance million, modeling day, crude shown XXXX. in like this in X, million around refining, per and the and around than expected XXX,XXX will on I acres of in to be XXX,XXX barrels The fourth in XXXX. of is Spring we which system. detail benefit provide is of to $XX to $XXX to EBITDA Big our to greater achieved gathering X range million, including to as quality capacity have which between grow for should by of has be quarter system

XXX,XXX throughput During refining approximately crude barrels oil system day. the quarter, total third per our was

average oil between fourth day. quarter the system XXXX, barrels XXX,XXX in XXX,XXX crude expect we throughput to the For refining of per and

operations. Taking $X X, on inventory $X the expect the discount on fourth to the Cushing quarter. consideration our discount Midland we forward timing oil into in at that our flow gross purchase we to the cash on crude of be based per This our effect, drive November curve $XX in based our margin to the estimate curve in addition, from to generation $XX.XX forward In realized continue barrel. range will to approximately Midland should

have additional We guidance for also for in select income CapEx purposes. statement modeling included items

I call Next, will to Uzi over the closing comments. turn for

Ezra Uzi Yemin

Thank you, Kevin.

as as quarter record we EBITDA. flow cash generation mentioned, with well As great Kevin had great

platform. our to very a Delek years, through Permian included As for transaction a shareholders, Basin shareholders. retained been the Delek a growing successful creating with our focus we larger attractive we returning provided on acquisitions organic develop addition valuations. US to while portfolio both The also with has over our US This and or Alon has have operation projects value cash

dependent midstream million manage should decisions The operation in crude system combination of further Basin Springs, on $XXX EBITDA of ability midstream well million Permian a other along the provide position. spreads. pipeline base support a less our the to of to crack based steps, should $XXX as our build basis. to by These Our consolidated achieve program This investments, EBITDA approximately on at EBITDA unit model billion $X as consistent platform. long-haul our generate is our continue to of to strategy XXXX. oil as the participate that stable allocation with is goal Krotz The our business further on more develops alkylation us we and investment from core a our projects, to help capital gathering should

and are our new in Delek XXXX. we shareholders, to our As or quarter to fourth we million on intend investment as strategic the opportunities based excess valuation $XXX to flow stock opportunities. process mentioned between - well Kevin us stock our Consistent to other this in our assessment, goals. authorization our cash different of relative the believe of as with our attractive that is return very commitment of decisions repurchase $XXX XX% to Currently, allocation capital available million

quarter addition, since of quarterly Directors regular XXXX. increase increase dividend, third our which a X% in In approved our our Board third marks the of

develop operator, flow the would returning balance shareholders to shareholders, market bring approximately questions? exploring focused X, we to this to to for With creating million our stage opportunities Slide you of next as value growth. long-term on or on our cash our on our excess in of return $XXX X. total investing capitalization our open shown As that, November business, call XX% cash We and remain would XXXX the

Operator

line first of from Gresh [Operator question J.P. comes Instructions] And Morgan. the with your Phil

John Royall

you Royall This Phil. Hey, morning. How are sitting is John guys? for in good

Ezra Uzi Yemin

morning. Hey, John. Good

John Royall

rate about think first So the like that year. XH in on $XXX Is looks is buyback, going into doing right run XXXX? million be question about to you'll this the

Ezra Uzi Yemin

- have and Well, touch Kevin I'll what we it. let

We look to penny sure are the obviously should going every our back cash make flow go and situation excess at of that to shareholders.

that, at fixing quarter another the amount as strong we So, look a cash of for quarter, see the quarter. quarter. the generated we is in Fourth very we tremendous outlook be obviously, third fourth to

want that buying I that. in no to shares. reason don't add continue there's be anything won't aggressive believe we our you to So to know if to Kevin,

Kevin Kremke

to on a and based XXXX, question. fundamentals standpoint. from strong Good perfect. cash looks flow forward certainly generation a curves, be That's Yeah. year

all we're in, is but have projects return low to absolutely to here the shareholders. some accretive intent We investing multiple excess cash flow that

John Royall

Great. Thank you.

contract? did got little Next you are leverage several a in underway question sheet, much and out where want to investments potential during about a How prepared bit do midstream buyback your balance touched guys potential you've ultimately the is planning this thinking to scenario there? be? on there. Midland you on downside build the remarks. buffer the you But Where And

Kevin Kremke

Yeah, philosophy. a so, sheet the of kind under balance X.X our us. maintaining term, for I conservative would is right long leverage still of part is times say,

John Royall

Thank you.

Operator

your the Sankey And question next is line with Mizuho. Paul from of

Ezra Uzi Yemin

Operator?

Operator

- Yes, him. Paul Mr. sir. Paul, I'll one he Mr. has find moment, -

Ezra Uzi Yemin

Why come then Paul? go the back and don't one next to we to

Operator

Yes, sir. has rejoined, moment. And one Mr. sir, Sankey

Paul Sankey

can hear Hello, me? you

Ezra Uzi Yemin

can. Sankey. Good morning, Mr. We

Paul Sankey

didn't there to came out strong Thank apologies. guys goodness, could how Has back just us your changed update It you're on, the so that latest the now. you I Uzi, hear before that? that in announcement the said Coast. on about the thinking the right was I for the weakness stock you what seems that everything is made or on about Permian-Gulf related you give pipeline, Thanks. you view

about that. Sorry

Ezra Uzi Yemin

repeat you question. can got it. not I'm Paul, sure we the

Paul Sankey

that announcement is made stock the seems everything and has why Uzi, you on too. so your wondered appetite about XQ to for I which view in your a to that Coast QX is, the Permian-Gulf weak, Thanks. you in the changed part out market pipeline, there big for the latest September just to given whether in got be be what relates reaction so pipeline. strong of It seemed

Ezra Uzi Yemin

have barrels them other several gathering we in as let sell And, don't we to Well, with had system. that with producers, market need refineries, have the do to them our - Midland sell Gulf. opportunities these take excess barrels. One, we or to and the into these Delek deal system our we announced the all them will leverage that

our to that project any mentioned, assets, Kevin as is threshold XX%. needs or mentioned, we And, obviously, project midstream our for around this meet other appetite threshold. As

low threshold the for that should stay course return, flow, that, So, in we time, and return continue weakness stock is of even the to we which excess though a midstream cash me, we same the to have believe shareholders. of tremendous there for at

Obviously, are going a intent the $XXX shareholders. of was away take thing it the market that certainly Now, not there take not us. $XXX remember, that this and need and to from to one leverage confusion more we we that's in just million million

As at any midstream look Kevin mentioned, leveraging XX% we're asset XX% going to to investment.

flow generate go that the cash operation from So we shareholders. excess to would continue to

Paul Sankey

Understood. What are question we've that final then that? and you MLP. your regarding thoughts you. follow-up seen, know, And on its changing Thank its Valero is the as structure latest

Ezra Uzi Yemin

looked at and to Valero will carefully. look we MLP what we at our Obviously, did need

capital the of structure I'm the higher next not cost need at, with that over for of look will us, something next the for do something to is than cost simplifying the But As we DK. today, MLP we suggesting that's the capital that will week. XX months, IDRs. for including

Paul Sankey

you. Thank

Sorry about the confusion. Thanks.

Ezra Uzi Yemin

No worries.

Operator

of Blair line with your Holt. question Pickering, Tudor, from And is Matthew next the

Matthew Blair

morning, Good everyone.

Ezra Uzi Yemin

Hey, Matt.

Kevin Kremke

Matt. Hey,

Matthew Blair

lag was in plant to just little two bit items? you pretty was this The to the on Midland XX%. the profitability. help quarter, us share one those refinery square Krotz seemed almost Yet, Springs a that the Could high

Ezra Uzi Yemin

let me are take These it. Well, pieces. two

at opportunity, these all, because of with of million STC XX at have $XX in did million. maintenances El Dorado. [ph]. that. didn't two had we Springs maintenance loss we to the days First lasted $XX around of maintenance that we Also, total The Obviously, Krotz

that's one thing. So

less The our to took to barrels, that barrels you we the And using second, advantage Paline of we more little - we're Pipeline; once had Midland a ran from we situation. refinery. move opportunity

Matthew Blair

in on sort that? price, And regards some you've update Midland Thanks. to anything previous volume, hedges. alluded it. to an Got then, calls, strike you Uzi, provide duration, on Could any of potential

Kevin Kremke

XXXX. whole Kevin. looking liquidity Matt, through too And there And kind that the we're that would right a Hey, really out XX%. up said is curve, Yeah, what at to our far of around year hedge consider we portfolio lot it's we so is going on calendar in is of number. not

Matthew Blair

can on And is those there you a that share strike hedges?

Kevin Kremke

No.

We that. haven't disclosed

Matthew Blair

you. Thank Okay.

Operator

is the line question next with Sachs. of Mehta from your And Goldman Neil

Carly Davenport

morning. taking question. the for is Good Neil. This Thanks Carly on for

Ezra Uzi Yemin

Good morning, Carly.

Carly Davenport

on a mentioned and just the quantify you done asset? El cost quarter, would first activity. softer The the you being talk bit came we than one at quarter? at performance just What us Dorado. And during the can little know that that specifically work through in was lost Dorado. if have opportunity expected the turnaround El Volumes I Can you

Ezra Uzi Yemin

Absolutely. the Thank for question.

$XX very some $XX quarter. around is both activity. Dorado, First though El Dorado of the El Dorado Krotz all, the say million mentioned El a utilization I for to I less little million the main and is Dorado, would - than as El it XX%. had was the for - strong, even still between reason lower utilization,

put We are in up Dorado. was opportunity, we lasted the [ph] to in That around not three El around to number we - remember [STC. that we And with work did need obviously, But STC] some the it lost front. chose that weeks. work all that's our the work done

the And coming. is to that turnaround quarter. the shorten Dorado is are of coming fourth in duration Dorado a activity El quarter the more fourth we El little the turnaround in to going Second, do the

see can Normally, are improve shutdown. we we to XX if days. about talking to going are XX our We

we update that try will the to in it shorter We first but make next in will call. you the quarter,

Carly Davenport

on to portion? you with And spending talk in around That's getting gathering early Big about then think around can XXXX provide the associated and follow-up then with CapEx. with that Big seen any a great. thoughts can refining pipe, the And Are the system. you just levels? about when Thanks. gathering the couple Spring the specifically you're We've there Spring PGC you the recent now EBITDA midstream how project, addition is the to announcements system, capital uplift

Assi Ginzburg

for Thank This question. the is Assi. you

we're gathering CapEx, $XXX $XX XXXX is a that Of around overall our at looking at look the you business. million. when million So

will CapEx we're of Tier $XXX a million, X slightly work CapEx we turnaround So you going to base expect you When gathering, of was for exclude some spend when XXXX of around see the in the base instead And the XXXX, $XX investing and $XX $XXX at million million will higher that we million as do. million. our to the look be gathering. the in that $XXX result

mentioned, will And CapEx million as I million as year be the $XXX that a around had $XXX the in this Dorado result El slightly higher be of base $XX So year. the turnaround. XXXX in XXXX next million we will

Carly Davenport

Great. Thank you.

Operator

of is Heffern And the your next with line question Brad from RBC.

Brad Heffern

Hi, everyone.

project Just Spring as a about on is before follow-up then. Big the you how rate hit gathering but XXXX, talked well you the would system, run in EBITDA the done

matter color Any a volumes production PGC that is to is just the Thanks. creates ramping up? that the So there? of it tie-in lag? that Or

Assi Ginzburg

Brad. Sure,

$XX of million lot the in to which that have talking at the XXXX, here. be average tie-in to expected volume to not million great is million increase to will And barrels about in in we you curves of EBITDA to provide, a to day, when a that say a the production closer $XX look PGC already place expect order the will enjoy we We producers to gathering XXX,XXX do in day of EBITDA. By we system to a and First, that the achieve already question. XXXX; the We to on around barrels be I XXXX, that producers XXX,XXX have, need EBITDA. that $XX million. $XX

mentioned Midland As crude sell can hub. also the into earlier, we Uzi the

Midland flexibility Gulf have Coast. PGC So to to will hub. it But on of sell barrels add option to the the bringing always producers we their the additional layer by the into

two a the generate while a base, lot is business. on gathering projects, can of So combined standalone EBITDA, those a system

Brad Heffern

will that. it these guess, projects at you're level, just corporate reported Kevin, CapEx? I And the for midstream Thanks be Okay. on all doing like

Kevin Kremke

midstream at DKL. looking we're to the course, of projects long-term, putting then possibility down And these Exactly. Right. of

Brad Heffern

on then, And guess, thoughts just M&A here. okay. I Right, Uzi,

restricts just organic and to M&A, the whether in ability do several flight. viewing larger Thoughts that market. how growth projects have scale you about are your You

Ezra Uzi Yemin

we obviously opportunities. continue at will to Well, look

using However, fact make stock honestly I our trading here. sense, X.X X trading doesn't DK and some the want as especially times X or is thing. to at EBITDA, clear that currency peers one be of light That's are times DK's EBITDA. in of

times the thing, we We buying - than times XX were second that with happening The project two, to XX more have and is the multiple that or at we we And the accretive opportunity we checked midstream the times. assets midstream or organic X much in average are X three deals XX. assets as come last on had the years, here, these discussed, EBITDA.

will XX own write and check ahead So not leverage and go big we for our when a own we and EBITDA. something now for business build can times, X our times or X relationship

Brad Heffern

Okay. Very Thanks. clear.

Operator

of And line your the Tobin next with is question Macquarie. Jay from

Jay Tobin

Hi, just the gasoline of how us weakness in theoretically far regions? the markets extends how XXXX seen curious margins an idea that Then would give and curve margins. out compression the Can gasoline impacted to a environment. by the on, guys. in IMO out Thanks. holding you margins We've an IMO just benchmark be up into in your that expect follow curve? - are the then And you gasoline

Assi Ginzburg

for at that you I the you almost being today negative the the you long prices, crossed, down said, We $XX. time, LLS. X time the crack mentioned, use a diesel in look $X it first the as do think see, spread, the when for when With when question. WTI. use thanks actually And So, in gasoline or you to price using Brent Gulf, coming

a extremely crude heading running you crude - quarter, to in look the $XX, going expect, to Midland actually $XX towards for that we our you can to discounted QX, Delek, when And November, are around healthy when refineries we crude. barrel. X-X-X at December next look - So the QX be run $XX.XX WTI at into

a on base $XX barrel. Midland So our crack is barrels our

crude. as as mentioned, as and WTI tried refineries QX, [ph] in the actually they a the I we combined are as even not at rates. value. reduce the to So taking the look gas run we And, can in of incremental advantage run therefore, to We refinery discouraged as on most high dealers total

being that the industry, Delek, Delek, IMO, lot I we enjoy higher diesel, be don't as the the administration will think the highest of that we at expected industry. uplift will has as that say an we enjoy a Looking cracks, at think crack But see will still know, IMO with said, to an Delek spreads IMO. a looking may all that is those. to enable With which potentially be diesel that I increase it. delaying in in has of there from XX% huge the flexibility

people I But think will great may it. a not industry. So if for take we will be advantage it IMO think of be able big as the to there, be as

Jay Tobin

Thanks. Great.

Operator

from next question of Wells And Fargo. Read the line is with your Roger

Roger Read

Thanks. morning. Yeah. Good

Ezra Uzi Yemin

Hey, Roger. Good morning.

Roger Read

the Uzi, the can acquisitions, to allocation one was we think it back everything Slide shareholders, kind the of thoughts with capital I like go X, - to on that.

decent over a amount last up dividend so. taken you've the year So or

if calculate million roughly it an on basis. dividend $XX So annual I your was correctly,

the the Now comfortable with level? just and into going did of And with I it XX play that's the project. or we're to to Or logistics depending else forth a stronger, you get comfortable, payout? changing Is confidence will and repurchases do be how alkylation going the then from that that the how how contributions comfort level function that retail? here is like share it's higher the or you down get higher allocations is curious, affecting so crude road? XX, something of cash, other dividend from a the a in share Maybe longer, that guess, on I'm just differentials does count. on? be But refining

Ezra Uzi Yemin

be at want here, about Roger. to one be or When to going think or and $XX, I there. $XX look Midland, Well, Midland don't shouldn't $XX be we clear thing that is we

as that been $XXX just we got we normalized EBITDA. that above the Dorado $X million, we interest million, have well just balance the and are differential - unit we it then when plans the the we about in of maintenance exact. million. obviously plenty elevated And we checked one $XXX around initiatives, we the closer we well you $X.XX, to sustainable flow, take add in in be or want have $X initiatives thing or $X.XX we payment billion. $XXX situation. if obviously long-term get the $XXX the to have, million, cash over our $XXX more number got probably that know million to million. That's over leverage the head, to and probably Midland And when we years, less, are we we more based EBITDA. actually alky of would planning the last around years billion - we well. other cash Without billion. - Our of we our so as bonus, And around our business El have we $X that $X.XX $X.XX, apply and around sheet, the for $XXX then situation, - sheet. normalized is midstream not model will And as day, and we $XXX is let's and as X; XX XX the flow, the not the on and alky, use flow cash it as strong of about very And room to I to we a less, is tax investors talking are remember. million. of $XXX times That's or we're as adding talk number, number, But midstream, use million if then, have have balance But

look is of cash producer our biggest Delek it, probably, flow. peers, free the any you way amongst So at

$XXX should we not we look us gee, just to comfortable And at reason where So in shareholders. giving for of time. and the more of when to looked there's every we're be million quarter, cash generation no are, see the this dividend, say, cash

Roger Read

then mean, that $XXX million. $XX the of what's as just it, $XX and million - It's level Thanks. assume turnaround, on call if off to million I you'd maximum we normalized to be way a in excuse incur we year, that, of about the to million me, very $XXX take XXX right a to then And follow so up maybe helpful. sustaining think base? CapEx willing

level million stretch closer that? other You've the to let's I a pushing a to that willing beyond got projects probably, a - Is comfort say, don't $XXX of that's you are you kind year. - know or

Ezra Uzi Yemin

Well, Alkie in of going we're it depends If $XX between the on we $XX [ph], million a and $XXX have for the today's will example: we're market like the project million. investing million. project. to economics get And

was spent, already or it money already a portion big of was spent. Now, the

So accretive see when to to crack is same that, a very payback won't then at like unrelated no we refining and fast. time very that carefully look system high very to that we and move project our it at there's have believe reason the spreads,

if said, X, the project Kevin them. as we However, a do side, probably on we X, X refining have times that are or even won't

there So the front and stands the project it that of opportunities depends on in us.

Roger Read

you. Great, thank

Operator

Lynch. [Operator Instructions] Doug And your next Merrill America question is from the line of Leggate of with Bank

Kalei Akamine

on Good Kalei morning. guys. for Doug. is Hey, This

that you what as midstream, Mid-cycle, those in from think and to cushion trades like WTI? it a refining Permian at the premium? look far differentials. Do think can you some as it think doing diversification the reinvesting looks narrowing relative into I help So windfall Permian, you're differentials actually profits do those the hard-landing that like how

Ezra Uzi Yemin

Well, anytime over years, you did we X Kalei, want. check last the mentioned, as we years, XX X years,

if we which So $X.XX. the two XXXX, talking during we includes, take that about - since the recession, obviously, years are were

it we stay carefully, shows need so long-term. while where happened ago extreme $X, there with So, was $XX. And are like another XX very like is close that's gets Over back months that of two same that course you think we two, extreme a of ago But will times situations, years to we were the - time, the to years, $X.XX. we there we be when of assume. years, over eventually with now, situation $X.XX At $X.XX. to history there watch this if premium I you what do three X use it the

Kalei Akamine

Got it.

guys on you thinking and WTI, a based are $X.XX that's So average. under historical

Okay, downs, future if it. growth you buckets; to got down can million, $XXX The midstream projects? into target that just million of and drop its break DKL, $XXX EBITDA wondering future

Assi Ginzburg

DKL to the will the the the at the that generated drop-downs last add and run When will that current of look you you million. when it's add months $XXX Paline, it EBITDA. XX see you additional annualized million so we extended that we Sure, basically rate, fact $XX

to XXXX, million, and at addition long year. then we EBITDA. we expect that be $XXX And drop-down million mid in we Krotz between haul of identified next our from by gathering the In sometime that, to $XX the roughly had

basically the is million will logistics. projects trucking. drop-downs get together, plus our million from are all to that other and long-haul basically $XXX when EBITDA expected take DK as you $XXX So at available those economics subject such The today, of the you of other to

course, So we say the stable in be, if of logistics we by XXXX, our environment think a will close will $X I scenario, to midstream billion EBITDA. XX% EBITDA a stay

Ezra Uzi Yemin

to like to that. thing one add I'd

remember, a growth, we stores year, retail are the As Permian. we amount year, And all having segment, a we tremendous is record which see store in because our our growth. the have great same all of

is the giving the back our we did beta at excess goal midstream, shareholders cash value dramatically in if So while, shareholders. reduce provide of flow look retail to at to our like to we in the combination these and again, past,

Kalei Akamine

my taking for questions, Thanks Great. guys.

Operator

we at And no this questions have further time.

Ezra Uzi Yemin

time your for you Thank today.

to a few we like take Before highlight to close, from things this away call. would I

sheet our cash is more record as will the utilizing during balance on quarter, stable is First, free quarter. support and consistency of business model in amount earnings, and strong wonderful company this a initiatives. we provide We flow midstream These this to cash Delek generating consolidated EBITDA. our EBITDA. that demonstrated very in cash cash our flow, growth growth increase to our had plan record record flow initiatives a

to of $XXX provide billion roadmap our $XXX get million, EBITDA the initiative to $X stable midstream cash with million retail to plus mentioned, initiative, Assi will us the a As flow.

aggressively you. to like are Thank this With mostly, my for morning. thank we for this it great But, what capital their I'd addition, result like thank the like and In I'd on I'd model. a through our support. thank for employees shareholders to returning helping repurchases, our to and this based on everybody Have being Directors Board for continuing dividends just allocation investors great we achieving cash had. our like call making day. of I'd that, to is. company thank to colleagues, me

Operator

this and conference today's call. Ladies gentlemen, concludes

now You may disconnect.

Delek US (DK) 7 Nov 182018 Q3 Earnings call transcript