- Second quarter distributable cash flow coverage ratio of 1.5x
- Growth initiatives enhanced fee-based profile of the business
BRENTWOOD, Tenn. -- (Business Wire)
Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today
announced its financial results for the second quarter 2015. For the
three months ended June 30, 2015, Delek Logistics reported net income
attributable to all partners of $18.3 million, or $0.70 per diluted
limited partner unit. This compares to net income attributable to all
partners of $21.8 million, or $0.87 per diluted limited partner unit in
the second quarter 2014. Distributable cash flow was $20.9 million in
the second quarter 2015, compared to $24.0 million in the prior-year
period. On a year-over-year basis, improved performance related to
acquisitions and the Paline Pipeline was more than offset by a lower
gross margin in the west Texas wholesale operations.
In the second quarter 2015, the pipeline and transportation segment,
which consists of primarily stable fee-based business, accounted for
approximately 72 percent of the contribution margin. This is an
improvement compared to the second quarter 2014 when the pipeline and
transportation segment accounted for 45 percent of contribution margin.
Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics'
general partner, remarked: “Our second quarter 2015 performance
benefited from our growth over the past year. The combination of
acquisitions, including assets purchased from Delek US in March 2015,
increased contribution from the Paline Pipeline, and higher volumes in
our East Texas assets has increased the portion of our business that is
fee based. While we did experience a year-over-year decline in our west
Texas wholesale gross margin, the increased size of our business
partially offset that effect on our performance."
Yemin concluded, "We remain focused on future growth opportunities as
work progresses on our pipeline development projects through two joint
ventures with unaffiliated third parties that are expected to be
completed in mid-2016. In addition, third-party acquisitions continue to
be explored, and the recent change in market conditions and commodity
prices are beginning to create a more attractive environment. We
continue to evaluate opportunities to partner with Delek US to provide
additional growth, which may be enhanced through Delek US' recent
investment in Alon USA. We ended the quarter with a strong financial
position that supports our ability to execute our growth strategies and
expect to continue to increase our annual distributions by at least 15
percent going forward."
Distribution and Liquidity
On July 27, 2015, Delek Logistics declared a quarterly cash distribution
for the second quarter of $0.55 per limited partner unit, which equates
to $2.20 per limited partner unit on an annualized basis. This
distribution is payable on August 14, 2015 to unitholders who are of
record on August 6, 2015. This represents a 3.8 percent increase from
the first quarter 2015 distribution of $0.53 per limited partner unit,
or $2.12 per limited partner unit on an annualized basis, and a 15.8
percent increase over Delek Logistics’ second quarter 2014 distribution
of $0.475 per limited partner unit, or $1.90 per limited partner unit
annualized. For the second quarter 2015, the total cash distribution
declared to all partners was $14.4 million and the distributable cash
flow coverage ratio was 1.5 times.
As of June 30, 2015, Delek Logistics had total debt of $316.9 million.
Availability under the $700.0 million credit facility was $377.6 million.
Financial Results
Results in the second quarter 2015 compared to the prior year period
benefited from the acquisition of the Tyler crude oil storage tank and
El Dorado rail offloading facility, which were acquired on March 31,
2015. For accounting purposes, the expenses from operations prior to the
acquisition of the Tyler crude oil storage tank and El Dorado rail
offloading facility are attributed to their respective predecessor
periods. For purposes of comparison, results discussed in the text of
this press release exclude predecessor costs during the respective
periods. However, these costs are shown in the financial statements and
a reconciliation is provided in the tables attached to this release.
Revenue for the second quarter 2015 was $172.1 million and contribution
margin was $28.8 million, which compares to revenue of $236.3 million
and a contribution margin of $30.2 million in the second quarter 2014.
Total operating expenses were $10.8 million compared to $9.5 million in
the second quarter 2014, with the increase primarily due to higher
maintenance expense. General and administrative expenses were $3.0
million for the second quarter 2015 compared to $2.2 million in the
prior-year period, which was primarily due to higher expenses related to
assets acquired over the past year. For the second quarter 2015, EBITDA
was $25.7 million compared to $27.9 million in the prior year period.
Pipelines and Transportation Segment
The Pipeline and Transportation segment's second quarter 2015
contribution margin of $20.9 million improved from $13.8 million in the
second quarter 2014. This increase can be attributed to fees associated
with the El Dorado rail offloading racks and Tyler crude oil storage
tank purchased on March 31, 2015. In addition, a higher contribution
from the Paline Pipeline due to the new agreements that became effective
on January 1, 2015 improved segment performance on a year-over-year
basis.
Under the new Paline Pipeline agreements, two different third parties
each pay a fixed monthly fee allowing them to use their respective
capacities on this pipeline, which account for a combined 35,000 barrels
per day. The initial term of these agreements is for 18 months beginning
January 1, 2015. As a result, the effective incremental revenue per
barrel was increased by approximately $1.00 compared to 2014.
Wholesale Marketing and Terminalling Segment
Contribution margin for the Wholesale Marketing and Terminalling segment
was $8.0 million in the second quarter 2015, compared to $16.4 million
in the second quarter 2014. This change on a year-over-year basis was
due to a lower gross margin per barrel in the west Texas wholesale
business.
In the west Texas wholesale business, throughput was 17,490 barrels per
day compared to 17,451 barrels per day in the second quarter 2014. The
wholesale gross margin per barrel in west Texas decreased to $1.31 and
included approximately $1.7 million, or $1.06 per barrel from renewable
identification numbers (RINs) generated in the quarter. During the
second quarter 2014, the wholesale gross margin per barrel was $6.52 and
included $1.1 million from RINs, or $0.68 per barrel. On a
year-over-year basis, declining crude oil prices have reduced drilling
activity in west Texas, lowering demand in the area and creating a more
challenging market, which resulted in a lower gross margin per barrel.
In the second quarter 2015, a decline in the market price for ethanol
relative to fixed price contracts that were in place reduced the gross
margin by approximately $0.8 million in the period. In the second
quarter 2014, downtime at refineries in the region created a favorable
supply/demand environment, which improved the gross margin per barrel.
Both terminalling and the east Texas marketing throughputs benefited
from higher volume at Delek US' Tyler, Texas refinery following the
completion of a 15,000 barrel per day expansion project in March 2015.
Terminalling throughput volume of 113,578 barrels per day during the
quarter increased on a year-over-year basis from 98,962 barrels per day
in the second quarter 2014 primarily due to higher throughput at the
Tyler, Texas terminal. During the second quarter 2015, volume under the
east Texas marketing agreement with Delek US was 66,860 barrels per day
compared to 61,231 barrels per day during the second quarter 2014.
Project Development Update
In March 2015, Delek Logistics announced that, through wholly owned
subsidiaries, it had entered into two joint ventures (Caddo Pipeline and
RIO Pipeline) that will construct logistics assets that are expected to
serve unaffiliated third parties and subsidiaries of Delek US. Delek
Logistics’ total projected investment for the two joint ventures is
approximately $91.0 million and will be financed through a combination
of cash from operations and borrowings under its revolving credit
facility. Through June 30, 2015, approximately $18.5 million has been
invested in these projects. Both of these projects are expected to be
constructed by mid-2016.
Second Quarter 2015 Results | Conference Call
Information
Delek Logistics will hold a conference call to discuss its second
quarter 2015 results on August 4, 2015 at 7:00 a.m. Central Time.
Investors will have the opportunity to listen to the conference call
live by going to www.DelekLogistics.com.
Participants are encouraged to register at least 15 minutes early to
download and install any necessary software. For those who cannot listen
to the live broadcast, a telephonic replay will be available through
November 4, 2015 by dialing (855) 859-2056, passcode 69595329. An
archived version of the replay will also be available at www.DelekLogistics.com
for 90 days.
Investors may also wish to listen to Delek US’ (NYSE: DK) second quarter
2015 earnings conference call on August 4, 2015 at 11:30 a.m. Central
Time and review Delek US’ earnings press release. Market trends and
information disclosed by Delek US may be relevant to Delek Logistics, as
it is a consolidated subsidiary of Delek US. Investors can find
information related to Delek US and the timing of its earnings release
online by going to www.DelekUS.com.
About Delek Logistics Partners, LP
Delek Logistics Partners, LP, headquartered in Brentwood, Tennessee, was
formed by Delek US Holdings, Inc. (NYSE: DK) to own, operate, acquire
and construct crude oil and refined products logistics and marketing
assets.
Safe Harbor Provisions Regarding
Forward-Looking Statements
This press release contains “forward-looking” statements within the
meaning of the federal securities laws. These statements contain words
such as “possible,” “believe,” “should,” “could,” “would,” “predict,”
“plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,”
“expect” or similar expressions, as well as statements in the future
tense, and can be impacted by numerous factors, including the fact that
a substantial majority of Delek Logistics' contribution margin is
derived from Delek US Holdings, thereby subjecting us to Delek US
Holdings' business risks; risks relating to the securities markets
generally; risks and costs relating to the age and operational hazards
of our assets including, without limitation, costs, penalties,
regulatory or legal actions and other affects related to releases,
spills and other hazards inherent in transporting and storing crude oil
and intermediate and finished petroleum products; the impact of adverse
market conditions affecting the business of Delek Logistics; adverse
changes in laws including with respect to tax and regulatory matters and
other risks as disclosed in our annual report on Form 10-K, quarterly
reports on Form 10-Q and other reports and filings with the United
States Securities and Exchange Commission. There can be no assurance
that actual results will not differ from those expected by management or
described in forward-looking statements of Delek Logistics. Delek
Logistics undertakes no obligation to update or revise such
forward-looking statements to reflect events or circumstances that
occur, or which Delek Logistics becomes aware of, after the date hereof.
Factors Affecting Comparability:
The following tables present financial and operational information for
the three months and six months ended June 30, 2015 and 2014. On
February 10, 2014, Delek Logistics acquired substantially all of the
active storage tanks and product terminal located adjacent to Delek US'
El Dorado refinery (the "El Dorado Assets"). On March 31, 2015 Delek
Logistics acquired the Tyler crude oil storage tank and the El Dorado
rail offloading facility (the "Logistics Assets") from Delek US. These
assets were accounted for as transfers between entities under common
control. Accordingly, the accompanying financial statements of the
Partnership have been retrospectively adjusted to include the historical
results of these assets. For all periods presented through February 10,
2014, the acquisition date of the El Dorado Assets, and March 31, 2015,
the acquisition date of the Logistics Assets, the retrospective
adjustments were made to the financial statements. The historical
results of the El Dorado Assets and Logistics Assets, prior to the
acquisition dates, are referred to as the "El Dorado Asset Predecessor"
and "Logistics Assets Predecessor" in the respective periods.
Non-GAAP Disclosures:
EBITDA and distributable cash flow are non-U.S. GAAP supplemental
financial measures that management and external users of our combined
financial statements, such as industry analysts, investors, lenders and
rating agencies, may use to assess:
-
Delek Logistics' operating performance as compared to other publicly
traded partnerships in the midstream energy industry, without regard
to historical cost basis or, in the case of EBITDA, financing methods;
-
the ability of our assets to generate sufficient cash flow to make
distributions to Delek Logistics' unitholders;
-
Delek Logistics' ability to incur and service debt and fund capital
expenditures; and
-
the viability of acquisitions and other capital expenditure projects
and the returns on investment of various investment opportunities.
Delek Logistics believes that the presentation of EBITDA and
distributable cash flow provide useful information to investors in
assessing its financial condition, its results of operations and cash
flow its business is generating. EBITDA and distributable cash flow
should not be considered as alternatives to net income, operating
income, cash from operations or any other measure of financial
performance or liquidity presented in accordance with U.S. GAAP. EBITDA
and distributable cash flow have important limitations as analytical
tools because they exclude some, but not all items that affect net
income and net cash provided by operating activities. Additionally,
because EBITDA and distributable cash flow may be defined differently by
other partnerships in its industry, Delek Logistics' definitions of
EBITDA and distributable cash flow may not be comparable to similarly
titled measures of other partnerships, thereby diminishing their
utility. Please see the tables below for a reconciliation of EBITDA and
distributable cash flow to their most directly comparable financial
measures calculated and presented in accordance with U.S. GAAP.
|
Delek Logistics Partners, LP |
Reconciliation of Amounts Reported Under U.S. GAAP
|
|
|
|
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
($ in thousands)
| | | 2015 |
|
| 2014(2) | | | 2015 (1) |
|
| 2014 (2) |
Reconciliation of EBITDA to net income: | | | | | | | | | | | | |
Net income
| | |
$
|
18,311
| | | |
$
|
21,488
| | | |
$
|
32,314
| | | |
$
|
35,040
| |
Add:
| | | | | | | | | | | | |
Income tax expense
| | |
63
| | | |
281
| | | |
317
| | | |
428
| |
Depreciation and amortization
| | |
4,744
| | | |
3,623
| | | |
9,244
| | | |
7,100
| |
Interest expense, net
| | |
2,616
|
| | |
2,342
|
| | |
4,773
|
| | |
4,325
|
|
EBITDA
| | |
$
|
25,734
|
| | |
$
|
27,734
|
| | |
$
|
46,648
|
| | |
$
|
46,893
|
|
| | | | | | | | | | | |
|
Reconciliation of EBITDA to net cash from operating activities: | | | | | | | | | | | | |
Net cash provided by operating activities
| | |
$
|
30,791
| | | |
$
|
31,036
| | | |
$
|
46,560
| | | |
$
|
44,448
| |
Amortization of unfavorable contract liability to revenue
| | |
—
| | | |
667
| | | |
—
| | | |
1,334
| |
Amortization of deferred financing costs
| | |
(365
|
)
| | |
(317
|
)
| | |
(730
|
)
| | |
(634
|
)
|
Accretion of asset retirement obligations
| | |
(62
|
)
| | |
(89
|
)
| | |
(124
|
)
| | |
(209
|
)
|
Deferred taxes
| | |
160
| | | |
(57
|
)
| | |
(66
|
)
| | |
(52
|
)
|
Loss on equity method investments
| | |
(149
|
)
| | |
—
| | | |
(149
|
)
| | |
—
| |
Gain (loss) on asset disposals
| | |
23
| | | |
(74
|
)
| | |
18
| | | |
(74
|
)
|
Unit-based compensation expense
| | |
(120
|
)
| | |
(63
|
)
| | |
(194
|
)
| | |
(121
|
)
|
Changes in assets and liabilities
| | |
(7,223
|
)
| | |
(5,992
|
)
| | |
(3,757
|
)
| | |
(2,552
|
)
|
Income tax expense
| | |
63
| | | |
281
| | | |
317
| | | |
428
| |
Interest expense, net
| | |
2,616
|
| | |
2,342
|
| | |
4,773
|
| | |
4,325
|
|
EBITDA
| | |
$
|
25,734
|
| | |
$
|
27,734
|
| | |
$
|
46,648
|
| | |
$
|
46,893
|
|
| | | | | | | | | | | |
|
Reconciliation of distributable cash flow to EBITDA: | | | | | | | | | | | | |
EBITDA
| | |
$
|
25,734
| | | |
$
|
27,734
| | | |
$
|
46,648
| | | |
$
|
46,893
| |
Less: Cash interest, net
| | |
2,251
| | | |
2,025
| | | |
4,043
| | | |
3,691
| |
Less: Maintenance and regulatory capital expenditures
| | |
3,928
| | | |
814
| | | |
7,244
| | | |
1,597
| |
Less: Capital improvement expenditures
| | |
—
| | | |
154
| | | |
—
| | | |
336
| |
Add: Reimbursement from Delek for capital expenditures
| | |
1,417
| | | |
—
| | | |
2,603
| | | |
—
| |
Less: Income tax expense
| | |
63
| | | |
281
| | | |
317
| | | |
428
| |
Add: Non-cash unit-based compensation expense
| | |
120
| | | |
63
| | | |
194
| | | |
121
| |
Less: Amortization of deferred revenue
| | |
86
| | | |
—
| | | |
221
| | | |
—
| |
Less: Amortization of unfavorable contract liability
| | |
—
|
| | |
667
|
| | |
—
|
| | |
1,334
|
|
Distributable cash flow
| | |
$
|
20,943
|
| | |
$
|
23,856
|
| | |
$
|
37,620
|
| | |
$
|
39,628
|
|
| | | | | | | | | | | | | | | | | | | |
|
(1) |
The information presented includes the results of operations of the
Logistics Assets Predecessor. Prior to the El Dorado offloading
racks acquisition and Tyler crude oil storage tank acquisition on
March 31, 2015, the Logistics Assets Predecessor did not record
revenues for intercompany throughput and storage services.
|
(2) |
The information presented includes the results of operations of the
El Dorado Predecessor and Logistics Assets Predecessor. Prior to the
El Dorado acquisition on February 10, 2014, the El Dorado
Predecessor did not record revenues for intercompany terminalling
and storage services. Prior to the El Dorado offloading racks
acquisition and Tyler crude oil storage tank acquisition on March
31, 2015, the Logistics Assets Predecessor did not record revenues
for intercompany throughput and storage services.
|
|
|
|
Delek Logistics Partners, LP |
Reconciliation of Amounts Reported Under U.S. GAAP
|
|
($ in thousands)
|
|
| Delek Logistics Partners, LP |
|
| Logistics Assets (1) |
|
| Six Months Ended June 30, 2015 |
| | | | | | Logistics Assets Predecessor | | | |
Reconciliation of EBITDA to net income: | | | | | | | | | |
Net income (loss)
| | |
$
|
32,951
| | | |
$
|
(637
|
)
| | |
$
|
32,314
| |
Add:
| | | | | | | | | |
Income tax expense
| | |
317
| | | |
—
| | | |
317
| |
Depreciation and amortization
| | |
8,774
| | | |
470
| | | |
9,244
| |
Interest expense, net
| | |
4,773
|
| | |
—
|
| | |
4,773
|
|
EBITDA
| | |
$
|
46,815
|
| | |
$
|
(167
|
)
| | |
$
|
46,648
|
|
| | | | | | | | |
|
Reconciliation of EBITDA to net cash from operating activities: | | | | | | | | | |
Net cash provided by (used in) operating activities
| | |
$
|
46,727
| | | |
$
|
(167
|
)
| | |
$
|
46,560
| |
Amortization of deferred financing costs
| | |
(730
|
)
| | |
—
| | | |
(730
|
)
|
Accretion of asset retirement obligations
| | |
(124
|
)
| | |
—
| | | |
(124
|
)
|
Deferred taxes
| | |
(66
|
)
| | |
—
| | | |
(66
|
)
|
Loss on equity method investments
| | |
(149
|
)
| | |
—
| | | |
(149
|
)
|
Gain on asset disposals
| | |
18
| | | |
—
| | | |
18
| |
Unit-based compensation expense
| | |
(194
|
)
| | |
—
| | | |
(194
|
)
|
Changes in assets and liabilities
| | |
(3,757
|
)
| | |
—
| | | |
(3,757
|
)
|
Income tax expense
| | |
317
| | | |
—
| | | |
317
| |
Interest expense, net
| | |
4,773
|
| | |
—
|
| | |
4,773
|
|
EBITDA
| | |
$
|
46,815
|
| | |
$
|
(167
|
)
| | |
$
|
46,648
|
|
| | | | | | | | |
|
Reconciliation of distributable cash flow to EBITDA: | | | | | | | | | |
EBITDA
| | |
$
|
46,815
| | | |
$
|
(167
|
)
| | |
$
|
46,648
| |
Less: Cash interest, net
| | |
4,043
| | | |
—
| | | |
4,043
| |
Less: Maintenance and regulatory capital expenditures
| | |
7,244
| | | |
—
| | | |
7,244
| |
Add: Reimbursement from Delek for capital expenditures
| | |
2,603
| | | |
—
| | | |
2,603
| |
Less: Income tax expense
| | |
317
| | | |
—
| | | |
317
| |
Add: Non-cash unit-based compensation expense
| | |
194
| | | |
—
| | | |
194
| |
Less: Amortization of deferred revenue
| | |
221
|
| | |
—
|
| | |
221
|
|
Distributable cash flow
| | |
$
|
37,787
|
| | |
$
|
(167
|
)
| | |
$
|
37,620
|
|
| | | | | | | | | | | | | | |
|
(1) |
The information presented is for the six months ended June 30, 2015,
disaggregated to present the results of operations of the
Partnership and the Logistics Assets Predecessors. Prior to the El
Dorado offloading racks acquisition and Tyler crude oil storage tank
acquisition on March 31, 2015, the Logistics Assets Predecessor did
not record revenues for intercompany throughput and storage services.
|
|
|
|
Delek Logistics Partners, LP |
Reconciliation of Amounts Reported Under U.S. GAAP |
|
|
|
| Delek Logistics Partners, LP |
|
| Logistics Assets (1) |
|
| Three Months Ended June 30, 2014 |
($ in thousands)
| | | | | | Logistics Assets Predecessor | | | |
Reconciliation of EBITDA to net income: | | | | | | | | | |
Net income (loss)
| | |
$
|
21,754
| | | |
$
|
(266
|
)
| | |
$
|
21,488
| |
Add:
| | | | | | | | | |
Income tax expense
| | |
281
| | | |
—
| | | |
281
| |
Depreciation and amortization
| | |
3,532
| | | |
91
| | | |
3,623
| |
Interest expense, net
| | |
2,342
|
| | |
—
|
| | |
2,342
|
|
EBITDA
| | |
$
|
27,909
|
| | |
$
|
(175
|
)
| | |
$
|
27,734
|
|
| | | | | | | | |
|
Reconciliation of EBITDA to net cash from operating activities: | | | | | | | | | |
Net cash provided by (used in) operating activities
| | |
$
|
31,211
| | | |
$
|
(175
|
)
| | |
$
|
31,036
| |
Amortization of unfavorable contract liability to revenue
| | |
667
| | | |
—
| | | |
667
| |
Amortization of deferred financing costs
| | |
(317
|
)
| | |
—
| | | |
(317
|
)
|
Accretion of asset retirement obligations
| | |
(89
|
)
| | |
—
| | | |
(89
|
)
|
Deferred taxes
| | |
(57
|
)
| | |
—
| | | |
(57
|
)
|
Loss on asset disposals
| | |
(74
|
)
| | |
—
| | | |
(74
|
)
|
Unit-based compensation expense
| | |
(63
|
)
| | |
—
| | | |
(63
|
)
|
Changes in assets and liabilities
| | |
(5,992
|
)
| | |
—
| | | |
(5,992
|
)
|
Income tax expense
| | |
281
| | | |
—
| | | |
281
| |
Interest expense, net
| | |
2,342
|
| | |
—
|
| | |
2,342
|
|
EBITDA
| | |
$
|
27,909
|
| | |
$
|
(175
|
)
| | |
$
|
27,734
|
|
| | | | | | | | |
|
Reconciliation of distributable cash flow to EBITDA: | | | | | | | | | |
EBITDA
| | |
$
|
27,909
| | | |
$
|
(175
|
)
| | |
$
|
27,734
| |
Less: Cash interest, net
| | |
2,025
| | | |
—
| | | |
2,025
| |
Less: Maintenance and regulatory capital expenditures
| | |
814
| | | |
—
| | | |
814
| |
Less: Capital improvement expenditures
| | |
154
| | | |
—
| | | |
154
| |
Less: Income tax expense
| | |
281
| | | |
—
| | | |
281
| |
Add: Non-cash unit-based compensation expense
| | |
63
| | | |
—
| | | |
63
| |
Less: Amortization of unfavorable contract liability
| | |
667
|
| | |
—
|
|
| |
667
|
|
Distributable cash flow
| | |
$
|
24,031
|
| | |
$
|
(175
|
)
|
| |
$
|
23,856
|
|
| | | | | | | | | | | | | | |
|
(1) |
The information presented is for the three months ended June 30,
2014, disaggregated to present the results of operations of the
Partnership and the Logistics Assets Predecessor. Prior to the El
Dorado offloading racks acquisition and Tyler crude oil storage tank
acquisition on March 31, 2015, the Logistics Assets Predecessor did
not record revenues for intercompany throughput and storage services.
|
|
|
|
Delek Logistics Partners, LP |
Reconciliation of Amounts Reported Under U.S. GAAP
|
|
|
|
| Delek Logistics Partners, LP |
|
| Logistics Assets (1) |
|
| El Dorado Terminal and Tank Assets (2) |
|
| Six Months Ended June 30, 2014 |
($ in thousands)
| | | | | | Logistics Assets Predecessor | | | El Dorado Predecessor | | | |
Reconciliation of EBITDA to net income: | | | | | | | | | | | | |
Net income (loss)
| | |
$
|
36,426
| | | |
$
|
(443
|
)
| | |
$
|
(943
|
)
| | |
$
|
35,040
| |
Add:
| | | | | | | | | | | | |
Income tax expense
| | |
428
| | | |
—
| | | |
—
| | | |
428
| |
Depreciation and amortization
| | |
6,895
| | | |
91
| | | |
114
| | | |
7,100
| |
Interest expense, net
| | |
4,325
|
| | |
—
|
| | |
—
|
| | |
4,325
|
|
EBITDA
| | |
$
|
48,074
|
| | |
$
|
(352
|
)
| | |
$
|
(829
|
)
| | |
$
|
46,893
|
|
| | | | | | | | | | | |
|
Reconciliation of EBITDA to net cash from operating activities: | | | | | | | | | | | | |
Net cash provided by (used in) operating activities
| | |
$
|
45,629
| | | |
$
|
(352
|
)
| | |
$
|
(829
|
)
| | |
$
|
44,448
| |
Amortization of unfavorable contract liability to revenue
| | |
1,334
| | | |
—
| | | |
—
| | | |
1,334
| |
Amortization of deferred financing costs
| | |
(634
|
)
| | |
—
| | | |
—
| | | |
(634
|
)
|
Accretion of asset retirement obligations
| | |
(215
|
)
| | |
—
| | | |
6
| | | |
(209
|
)
|
Deferred taxes
| | |
(52
|
)
| | |
—
| | | |
—
| | | |
(52
|
)
|
Loss on asset disposals
| | |
(74
|
)
| | |
—
| | | |
—
| | | |
(74
|
)
|
Unit-based compensation expense
| | |
(121
|
)
| | |
—
| | | |
—
| | | |
(121
|
)
|
Changes in assets and liabilities
| | |
(2,546
|
)
| | |
—
| | | |
(6
|
)
| | |
(2,552
|
)
|
Income tax expense
| | |
428
| | | |
—
| | | |
—
| | | |
428
| |
Interest expense, net
| | |
4,325
|
| | |
—
|
|
| |
—
|
| | |
4,325
|
|
EBITDA
| | |
$
|
48,074
|
| | |
$
|
(352
|
)
|
| |
$
|
(829
|
)
| | |
$
|
46,893
|
|
| | | | | | | | | | | |
|
Reconciliation of distributable cash flow to EBITDA: | | | | | | | | | | | | |
EBITDA
| | |
$
|
48,074
| | | |
$
|
(352
|
)
| | |
$
|
(829
|
)
| | |
$
|
46,893
| |
Less: Cash interest, net
| | |
3,691
| | | |
—
| | | |
—
| | | |
3,691
| |
Less: Maintenance and regulatory capital expenditures
| | |
1,513
| | | |
—
| | | |
84
| | | |
1,597
| |
Less: Capital improvement expenditures
| | |
243
| | | |
—
| | | |
93
| | | |
336
| |
Less: Income tax expense
| | |
428
| | | |
—
| | | |
—
| | | |
428
| |
Add: Non-cash unit-based compensation expense
| | |
121
| | | |
—
| | | |
—
| | | |
121
| |
Less: Amortization of unfavorable contract liability
| | |
1,334
|
| | |
—
|
|
| |
—
|
| | |
1,334
|
|
Distributable cash flow
| | |
$
|
40,986
|
| | |
$
|
(352
|
)
|
| |
$
|
(1,006
|
)
| | |
$
|
39,628
|
|
| | | | | | | | | | | | | | | | | | | |
|
(1) |
The information presented is for the six months ended June 30, 2014,
disaggregated to present the results of operations of the
Partnership and the Logistics Assets Predecessor. Prior to the El
Dorado offloading racks acquisition and Tyler crude oil storage tank
acquisition on March 31, 2015, the Logistics Assets Predecessor did
not record revenues for intercompany throughput and storage services.
|
(2) |
The information presented is for the six months ended June 30, 2014,
disaggregated to present the results of operations of the
Partnership and the El Dorado Predecessor. Prior to the completion
of the El Dorado acquisition on February 10, 2014, the El Dorado
Predecessor did not record revenues for intercompany terminalling
and storage services.
|
|
|
|
Delek Logistics Partners, LP |
Condensed Consolidated Balance Sheets (Unaudited)
|
|
|
|
| June 30, |
|
| December 31, |
| | | 2015 | | | 2014 (1) |
| | | | | |
|
| | | (In thousands) |
ASSETS | | | | | | |
Current assets:
| | | | | | |
Cash and cash equivalents
| | |
$
|
124
| | | |
$
|
1,861
| |
Accounts receivable
| | |
39,117
| | | |
27,986
| |
Inventory
| | |
4,308
| | | |
10,316
| |
Deferred tax assets
| | |
28
| | | |
28
| |
Other current assets
| | |
485
|
| | |
768
|
|
Total current assets
| | |
44,062
|
| | |
40,959
|
|
Property, plant and equipment:
| | | | | | |
Property, plant and equipment
| | |
317,208
| | | |
308,088
| |
Less: accumulated depreciation
| | |
(61,965
|
)
| | |
(53,309
|
)
|
Property, plant and equipment, net
| | |
255,243
|
| | |
254,779
|
|
Equity method investments
| | |
18,472
| | | |
—
| |
Goodwill
| | |
11,654
| | | |
11,654
| |
Intangible assets, net
| | |
15,944
| | | |
16,520
| |
Other non-current assets
| | |
6,621
|
| | |
7,374
|
|
Total assets
| | |
$
|
351,996
|
| | |
$
|
331,286
|
|
LIABILITIES AND EQUITY (DEFICIT) | | | | | | |
Current liabilities:
| | | | | | |
Accounts payable
| | |
$
|
14,754
| | | |
$
|
17,929
| |
Accounts payable to related parties
| | |
8,732
| | | |
628
| |
Excise and other taxes payable
| | |
7,186
| | | |
5,443
| |
Accrued expenses and other current liabilities
| | |
2,330
| | | |
1,588
| |
Tank inspection liabilities
| | |
2,541
| | | |
2,829
| |
Pipeline release liabilities
| | |
3,069
|
| | |
1,899
|
|
Total current liabilities
| | |
38,612
|
| | |
30,316
|
|
Non-current liabilities:
| | | | | | |
Revolving credit facility
| | |
316,900
| | | |
251,750
| |
Asset retirement obligations
| | |
3,379
| | | |
3,319
| |
Deferred tax liabilities
| | |
297
| | | |
231
| |
Other non-current liabilities
| | |
8,610
|
| | |
5,889
|
|
Total non-current liabilities
| | |
329,186
|
| | |
261,189
|
|
Equity (Deficit):
| | | | | | |
Predecessor division equity
| | |
—
| | | |
19,726
| |
Common unitholders - public; 9,451,589 units issued and outstanding
at June 30, 2015 (9,417,189 at December 31, 2014)
| | |
197,052
| | | |
194,737
| |
Common unitholders - Delek; 2,799,258 units issued and outstanding
at June 30, 2015 (2,799,258 at December 31, 2014)
| | |
(281,852
|
)
| | |
(241,112
|
)
|
Subordinated unitholders - Delek; 11,999,258 units issued and
outstanding at June 30, 2015 (11,999,258 at December 31, 2014)
| | |
76,439
| | | |
73,515
| |
General partner - Delek; 494,900 units issued and outstanding at
June 30, 2015 (494,197 at December 31, 2014)
| | |
(7,441
|
)
| | |
(7,085
|
)
|
Total (deficit) equity
| | |
(15,802
|
)
| | |
39,781
|
|
Total liabilities and (deficit) equity
| | |
$
|
351,996
|
| | |
$
|
331,286
|
|
| | | | | | | | | |
|
(1) |
Adjusted to include the historical balances of the Logistics Assets
Predecessor.
|
|
|
|
Delek Logistics Partners, LP |
Condensed Consolidated Statements of Income (Unaudited)
|
|
|
|
| Three Months Ended June 30, |
|
| Six Months Ended June 30, |
| | | | |
| | | 2015 |
|
| 2014 (1) | | | 2015 (1) |
|
| 2014 (2) |
| | | | | | | | | | | |
|
| | | (In thousands, except unit and per unit data) |
Net sales:
| | | | | | | | | | | | |
Affiliate
| | |
$
|
39,871
| | | |
$
|
28,893
| | | |
$
|
72,151
| | | |
$
|
54,175
| |
Third-Party
| | |
132,263
|
| | |
207,450
|
| | |
243,495
|
| | |
385,695
|
|
Net sales
| | |
172,134
| | | |
236,343
| | | |
315,646
| | | |
439,870
| |
Operating costs and expenses:
| | | | | | | | | | | | |
Cost of goods sold
| | |
132,494
| | | |
196,574
| | | |
240,901
| | | |
368,783
| |
Operating expenses
| | |
10,798
| | | |
9,719
| | | |
21,575
| | | |
19,215
| |
General and administrative expenses
| | |
2,982
| | | |
2,242
| | | |
6,391
| | | |
4,905
| |
Depreciation and amortization
| | |
4,744
| | | |
3,623
| | | |
9,244
| | | |
7,100
| |
(Gain) loss on asset disposals
| | |
(23
|
)
| | |
74
|
| | |
(18
|
)
| | |
74
|
|
Total operating costs and expenses
| | |
150,995
|
| | |
212,232
|
| | |
278,093
|
| | |
400,077
|
|
Operating income
| | |
21,139
| | | |
24,111
| | | |
37,553
| | | |
39,793
| |
Interest expense, net
| | |
2,616
| | | |
2,342
| | | |
4,773
| | | |
4,325
| |
Loss on equity method investments
| | |
149
|
| | |
—
|
| | |
149
|
| | |
—
|
|
Income before income tax expense
| | |
18,374
| | | |
21,769
| | | |
32,631
| | | |
35,468
| |
Income tax expense
| | |
63
|
| | |
281
|
| | |
317
|
| | |
428
|
|
Net income
| | |
$
|
18,311
| | | |
$
|
21,488
| | | |
$
|
32,314
| | | |
$
|
35,040
| |
Less: loss attributable to Predecessors
| | |
—
|
| | |
(266
|
)
| | |
(637
|
)
| | |
(1,386
|
)
|
Net income attributable to partners
| | |
18,311
|
| | |
21,754
|
| | |
32,951
|
| | |
36,426
|
|
Comprehensive income attributable to partners
| | |
$
|
18,311
|
| | |
$
|
21,754
|
| | |
$
|
32,951
|
| | |
$
|
36,426
|
|
| | | | | | | | | | | |
|
Less: General partner's interest in net income, including incentive
distribution rights
| | |
(1,109
|
)
| | |
(620
|
)
| | |
(1,996
|
)
| | |
(914
|
)
|
Limited partners' interest in net income
| | |
$
|
17,202
|
| | |
$
|
21,134
|
| | |
$
|
30,955
|
| | |
$
|
35,512
|
|
| | | | | | | | | | | |
|
Net income per limited partner unit:
| | | | | | | | | | | | |
Common units - (basic)
| | |
$
|
0.71
| | | |
$
|
0.88
| | | |
$
|
1.28
| | | |
$
|
1.47
| |
Common units - (diluted)
| | |
$
|
0.70
| | | |
$
|
0.87
| | | |
$
|
1.27
| | | |
$
|
1.46
| |
Subordinated units - Delek (basic and diluted)
| | |
$
|
0.71
| | | |
$
|
0.87
| | | |
$
|
1.28
| | | |
$
|
1.47
| |
| | | | | | | | | | | |
|
Weighted average limited partner units outstanding:
| | | | | | | | | | | | |
Common units - basic
| | |
12,224,007
| | | |
12,159,732
| | | |
12,220,248
| | | |
12,156,135
| |
Common units - diluted
| | |
12,360,519
| | | |
12,291,273
| | | |
12,350,621
| | | |
12,281,598
| |
Subordinated units - Delek (basic and diluted)
| | |
11,999,258
| | | |
11,999,258
| | | |
11,999,258
| | | |
11,999,258
| |
| | | | | | | | | | | |
|
Cash distribution per limited partner unit
| | |
$
|
0.550
| | | |
$
|
0.475
| | | |
$
|
1.080
| | | |
$
|
0.900
| |
| | | | | | | | | | | | | | | | | | | |
|
(1) |
Adjusted to include the historical results of the Logistics Assets
Predecessor. Prior to the El Dorado offloading racks acquisition and
Tyler crude oil storage tank acquisition on March 31, 2015, the
Logistics Assets Predecessor did not record revenues for
intercompany throughput and storage services.
|
(2) |
The information presented includes the results of operations of the
El Dorado Predecessor and Logistics Assets Predecessor. Prior to the
El Dorado acquisition on February 10, 2014, the El Dorado
Predecessor did not record revenues for intercompany terminalling
and storage services. Prior to the Logistics Assets Predecessor on
March 31, 2015, revenues for intercompany throughput and storage
services were not recorded.
|
|
|
|
Delek Logistics Partners, LP |
Consolidated Statements of Income (Unaudited)
|
Reconciliation of Partnership to Predecessor
|
|
|
| |
|
| |
|
| |
|
| |
| | | Delek Logistics Partners, LP | | | El Dorado Rail Offloading Racks (1) | | | Tyler Crude Oil Storage Tank (1) | | | Six Months Ended June 30, 2015 |
| | | | | | El Dorado Assets Predecessor | | | Tyler Assets Predecessor | | | |
| | |
(In thousands)
|
Net Sales
| | |
$
|
315,646
| | | |
$
|
—
| | | |
$
|
—
| | | |
$
|
315,646
| |
Operating costs and expenses:
| | | | | | | | | | | | |
Cost of goods sold
| | |
240,901
| | | |
—
| | | |
—
| | | |
240,901
| |
Operating expenses
| | |
21,408
| | | |
167
| | | |
—
| | | |
21,575
| |
General and administrative expenses
| | |
6,391
| | | |
—
| | | |
—
| | | |
6,391
| |
Depreciation and amortization
| | |
8,774
| | | |
372
| | | |
98
| | | |
9,244
| |
Gain on asset disposals
| | |
(18
|
)
| | |
—
|
| | |
—
|
| | |
(18
|
)
|
Total operating costs and expenses
| | |
277,456
|
| | |
539
|
| | |
98
|
| | |
278,093
|
|
Operating income (loss)
| | |
38,190
| | | |
(539
|
)
| | |
(98
|
)
| | |
37,553
| |
Interest expense, net
| | |
4,773
| | | |
—
| | | |
—
| | | |
4,773
| |
Loss on equity method investments
| | |
149
|
| | |
—
|
| | |
—
|
| | |
149
|
|
Net income (loss) before taxes
| | |
33,268
| | | |
(539
|
)
| | |
(98
|
)
| | |
32,631
| |
Income tax expense
| | |
317
|
| | |
—
|
| | |
—
|
| | |
317
|
|
Net income (loss)
| | |
$
|
32,951
| | | |
$
|
(539
|
)
| | |
$
|
(98
|
)
| | |
$
|
32,314
| |
Less: Loss attributable to Predecessors
| | |
—
|
| | |
(539
|
)
| | |
(98
|
)
| | |
(637
|
)
|
Net income attributable to partners
| | |
$
|
32,951
|
| | |
$
|
—
|
| | |
$
|
—
|
| | |
$
|
32,951
|
|
| | | | | | | | | | | | | | | | | | | |
|
(1) |
The information presented is for the six months ended June 30, 2015,
disaggregated to present the results of operations of the
Partnership and the Logistics Assets Predecessor. Prior to the El
Dorado offloading racks acquisition and Tyler crude oil storage tank
acquisition on March 31, 2015, the Logistics Assets Predecessor did
not record revenues for intercompany throughput and storage services.
|
|
|
|
Delek Logistics Partners, LP |
Consolidated Statements of Income (Unaudited)
|
Reconciliation of Partnership to Predecessor
|
|
|
| |
|
| |
|
| |
|
| |
| | | Delek Logistics Partners, LP | | | El Dorado Rail Offloading Racks
(1) | | | Tyler Crude Oil Storage Tank (1) | | | Three Months Ended June 30, 2014 |
| | | | | | El Dorado Assets Predecessor | | | Tyler Assets Predecessor | | | |
| | |
(In thousands)
|
Net Sales
| | |
$
|
236,343
| | | |
$
|
—
| | | |
$
|
—
| | | |
$
|
236,343
| |
Operating costs and expenses:
| | | | | | | | | | | | |
Cost of goods sold
| | |
196,574
| | | |
—
| | | |
—
| | | |
196,574
| |
Operating expenses
| | |
9,544
| | | |
175
| | | |
—
| | | |
9,719
| |
General and administrative expenses
| | |
2,242
| | | |
—
| | | |
—
| | | |
2,242
| |
Depreciation and amortization
| | |
3,532
| | | |
91
| | | |
—
| | | |
3,623
| |
Loss on asset disposals
| | |
74
|
| | |
—
|
| | |
—
|
| | |
74
|
|
Total operating costs and expenses
| | |
211,966
|
| | |
266
|
| | |
—
|
| | |
212,232
|
|
Operating income (loss)
| | |
24,377
| | | |
(266
|
)
| | |
—
| | | |
24,111
| |
Interest expense, net
| | |
2,342
|
| | |
—
|
| | |
—
|
| | |
2,342
|
|
Net income (loss) before income tax expense
| | |
22,035
| | | |
(266
|
)
| | |
—
| | | |
21,769
| |
Income tax expense
| | |
281
|
| | |
—
|
| | |
—
|
| | |
281
|
|
Net income (loss)
| | |
$
|
21,754
| | | |
$
|
(266
|
)
| | |
$
|
—
| | | |
$
|
21,488
| |
Less: loss attributable to Predecessors
| | |
—
|
| | |
(266
|
)
| | |
—
|
| | |
(266
|
)
|
Net income attributable to partners
| | |
$
|
21,754
|
| | |
$
|
—
|
| | |
$
|
—
|
| | |
$
|
21,754
|
|
| | | | | | | | | | | | | | | | | | | |
|
(1) |
The information presented is for the three months ended June 30,
2014, disaggregated to present the results of operations of the
Partnership and the Logistics Assets Predecessor. Prior to the El
Dorado offloading racks acquisition and Tyler crude oil storage tank
acquisition on March 31, 2015, the Logistics Assets Predecessor did
not record revenues for intercompany throughput and storage services.
|
|
|
|
|
Delek Logistics Partners, LP |
Consolidated Statements of Income (Unaudited)
|
Reconciliation of Partnership to Predecessor
|
|
|
| |
|
| |
|
| | |
|
| |
|
| |
| | | Delek Logistics Partners, LP | | | El Dorado Rail Offloading Racks
(1) | | | Tyler Crude Oil Storage Tank
(1) | | | El Dorado Terminal and Tank Assets
(2) | | | Six Months Ended June 30, 2014 |
| | | | | | El Dorado Assets Predecessor | | | Tyler Predecessor | | | El Dorado Predecessor | | | |
| | |
(In thousands)
| |
Net Sales
| | |
$
|
439,870
| | | |
$
|
—
| | | |
$
|
—
| | | |
$
|
—
| | | |
$
|
439,870
| |
Operating costs and expenses:
| | | | | | | | | | | | | | | | |
Cost of goods sold
| | |
368,783
| | | |
—
| | | |
—
| | | |
—
| | | |
368,783
| |
Operating expenses
| | |
18,080
| | | |
352
| | | |
—
| | | |
783
| | | |
19,215
| |
General and administrative expenses
| | |
4,859
| | | |
—
| | | |
—
| | | |
46
| | | |
4,905
| |
Depreciation and amortization
| | |
6,895
| | | |
91
| | | |
—
| | | |
114
| | | |
7,100
| |
Loss on asset disposals
| | |
74
|
| | |
—
|
| | |
—
|
| | |
—
|
| | |
74
|
|
Total operating costs and expenses
| | |
398,691
|
| | |
443
|
| | |
—
|
| | |
943
|
| | |
400,077
|
|
Operating income (loss)
| | |
41,179
| | | |
(443
|
)
| | | | | | |
(943
|
)
| | |
39,793
| |
Interest expense, net
| | |
4,325
|
| | |
—
|
| | |
—
|
| | |
—
|
| | |
4,325
|
|
Net income (loss) before income tax expense
| | |
36,854
| | | |
(443
|
)
| | |
—
| | | |
(943
|
)
| | |
35,468
| |
Income tax expense
| | |
428
|
| | |
—
|
| | |
—
|
| | |
—
|
| | |
428
|
|
Net income (loss)
| | |
$
|
36,426
| | | |
$
|
(443
|
)
| | |
$
|
—
| | | |
$
|
(943
|
)
| | |
$
|
35,040
| |
Less: loss attributable to Predecessors
| | |
—
|
| | |
(443
|
)
| | |
—
|
| | |
(943
|
)
| | |
(1,386
|
)
|
Net income attributable to partners
| | |
$
|
36,426
|
| | |
$
|
—
|
| | |
$
|
—
|
| | |
$
|
—
|
| | |
$
|
36,426
|
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
(1) |
The information presented is for the six months ended June 30, 2014,
disaggregated to present the results of operations of the
Partnership and the Logistics Assets Predecessor. Prior to the El
Dorado offloading racks acquisition and Tyler crude oil storage tank
acquisition on March 31, 2015, the Logistics Asset Predecessor did
not record revenues for intercompany throughput and storage services.
|
(2) |
The information presented includes the results of operations of the
El Dorado Predecessor. Prior to the El Dorado acquisition on
February 10, 2014, the El Dorado Predecessor did not record revenues
for intercompany terminalling and storage services.
|
|
|
|
Delek Logistics Partners, LP |
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
(In thousands)
|
|
|
|
| |
|
| |
|
| |
| | | | | | | Six Months Ended June 30, |
| | | | | | | 2015 (1) | | | 2014 (2) |
| | | | | | | | | |
|
Cash Flow Data | | | | | | |
Net cash provided by operating activities
| | |
$
|
46,560
| | | |
$
|
44,448
| |
Net cash used in investing activities
| | |
(27,541
|
)
| | |
(4,200
|
)
|
Net cash used in financing activities
| | |
(20,756
|
)
| | |
(38,755
|
)
|
|
Net (decrease) increase in cash and cash equivalents
| | |
$
|
(1,737
|
)
| | |
$
|
1,493
|
|
| | | | | | | | | | |
|
(1) |
Includes the historical cash flows of the Logistics Assets
predecessor.
|
(2) |
Adjusted to include the historical cash flows of the Logistic Assets
predecessor and El Dorado Predecessor.
|
|
|
|
Delek Logistics Partners, LP |
Segment Data (unaudited)
|
(In thousands)
|
|
|
|
| Three Months Ended June 30, 2015 |
| | | Pipelines & Transportation |
|
| Wholesale Marketing & Terminalling |
|
| Consolidated |
Affiliate
| | |
$
|
26,093
| | | |
$
|
13,778
| | | |
$
|
39,871
| |
Third-Party
| | |
7,641
|
| | |
124,622
|
| | |
132,263
|
|
Net sales
| | |
33,734
| | | |
138,400
| | | |
172,134
| |
Operating costs and expenses:
| | | | | | | | | |
Cost of goods sold
| | |
5,102
| | | |
127,392
| | | |
132,494
| |
Operating expenses
| | |
7,745
|
| | |
3,053
|
| | |
10,798
|
|
Segment contribution margin
| | |
$
|
20,887
|
| | |
$
|
7,955
|
| | |
28,842
| |
General and administrative expense
| | | | | | | | |
2,982
| |
Depreciation and amortization
| | | | | | | | |
4,744
| |
Gain on asset disposals
| | | | | | | | |
(23
|
)
|
Operating income
| | | | | | | | |
$
|
21,139
|
|
Total Assets
| | |
$
|
285,733
|
| | |
$
|
66,263
|
| | |
$
|
351,996
|
|
| | | | | | | | |
|
Capital spending
| | | | | | | | | |
Regulatory and maintenance capital spending
| | |
$
|
2,722
| | | |
$
|
347
| | | |
$
|
3,069
| |
Discretionary capital spending
| | |
335
|
| | |
2,558
|
| | |
2,893
|
|
Total capital spending
| | |
$
|
3,057
|
| | |
$
|
2,905
|
| | |
$
|
5,962
|
|
| | | | | | | | | | | | | | |
|
|
|
| |
| | | Three Months Ended June 30, 2014 |
| | | Pipelines & Transportation |
|
| Wholesale Marketing & Terminalling |
|
| Consolidated (1) |
Affiliate
| | |
$
|
20,245
| | | |
$
|
8,648
| | | |
$
|
28,893
|
Third-Party
| | |
2,821
|
| | |
204,629
|
| | |
207,450
|
Net sales
| | |
23,066
| | | |
213,277
| | | |
236,343
|
Operating costs and expenses:
| | | | | | | | | |
Cost of goods sold
| | |
1,130
| | | |
195,444
| | | |
196,574
|
Operating expenses
| | |
8,308
|
| | |
1,411
|
| | |
9,719
|
Segment contribution margin
| | |
$
|
13,628
|
| | |
$
|
16,422
|
| | |
30,050
|
General and administrative expense
| | | | | | | | |
2,242
|
Depreciation and amortization
| | | | | | | | |
3,623
|
Loss on asset disposals
| | | | | | | | |
74
|
Operating income
| | |
| | |
| | |
$
|
24,111
|
Total assets
| | |
$
|
242,297
|
| | |
$
|
92,324
|
| | |
$
|
334,621
|
| | | | | | | | |
|
Capital spending
| | | | | | | | | |
Regulatory and maintenance capital spending
| | |
$
|
1,071
| | | |
$
|
609
| | | |
$
|
1,680
|
Discretionary capital spending
| | |
57
|
| | |
147
|
| | |
204
|
Total capital spending (2) | | |
$
|
1,128
|
| | |
$
|
756
|
| | |
$
|
1,884
|
| | | | | | | | | | | | | |
|
(1) |
The information presented includes the results of operations of the
Logistics Assets Predecessor. Prior to the El Dorado offloading
racks acquisition and Tyler crude oil storage tank acquisition on
March 31, 2015, the Logistics Assets Predecessor did not record
revenues for intercompany throughput and storage services.
|
(2) |
Capital spending includes expenditures of $0.9 million incurred in
connection with the Logistics Assets Predecessor.
|
|
|
|
Delek Logistics Partners, LP |
Segment Data (Unaudited)
|
(In thousands)
|
|
|
|
| Three Months Ended June 30, 2014 |
| | | Pipelines & Transportation |
| | | Delek Logistics Partners, LP |
|
| Predecessor - Logistics Assets |
|
| Three Months Ended June 30, 2014 |
Net Sales
| | |
$
|
23,066
| | | |
$
|
—
| | | |
$
|
23,066
|
Operating costs and expenses:
| | | | | | | | | |
Cost of goods sold
| | |
1,130
| | | |
—
| | | |
1,130
|
Operating expenses
| | |
8,133
|
| | |
175
|
| | |
8,308
|
Segment contribution margin
| | |
$
|
13,803
|
| | |
$
|
(175
|
)
| | |
$
|
13,628
|
| | | | | | | | |
|
Total capital spending
| | |
$
|
212
|
| | |
$
|
916
|
| | |
$
|
1,128
|
| | | | | | | | | | | | | |
|
|
|
| |
| | | Three Months Ended June 30, 2014 |
| | | Wholesale Marketing & Terminalling |
| | | Delek Logistics Partners, LP |
|
| Predecessor - Logistics Assets |
|
| Three Months Ended June 30, 2014 |
Net Sales
| | |
$
|
213,277
| | | |
$
|
—
| | | |
$
|
213,277
|
Operating costs and expenses:
| | | | | | | | | |
Cost of goods sold
| | |
195,444
| | | |
—
| | | |
195,444
|
Operating expenses
| | |
1,411
|
| | |
—
|
| | |
1,411
|
Segment contribution margin
| | |
$
|
16,422
|
| | |
$
|
—
|
| | |
$
|
16,422
|
| | | | | | | | |
|
Total capital spending
| | |
$
|
756
|
| | |
$
|
—
|
| | |
$
|
756
|
| | | | | | | | | | | | | |
|
|
Delek Logistics Partners, LP |
Segment Data (unaudited)
|
(In thousands)
|
|
|
|
| Six Months Ended June 30, 2015 (1) |
| | | Pipelines & Transportation |
|
| Wholesale Marketing & Terminalling |
|
| Consolidated |
Affiliate
| | |
$
|
50,078
| | | |
$
|
22,073
| | | |
$
|
72,151
| |
Third-Party
| | |
14,658
|
| | |
228,837
|
| | |
243,495
|
|
Net sales
| | |
$
|
64,736
| | | |
$
|
250,910
| | | |
$
|
315,646
| |
Operating costs and expenses:
| | | | | | | | | |
Cost of goods sold
| | |
9,915
| | | |
230,986
| | | |
240,901
| |
Operating expenses
| | |
14,663
|
| | |
6,912
|
| | |
21,575
|
|
Segment contribution margin
| | |
$
|
40,158
|
| | |
$
|
13,012
|
| | |
53,170
| |
General and administrative expense
| | | | | | | | |
6,391
| |
Depreciation and amortization
| | | | | | | | |
9,244
| |
Gain on disposal of assets
| | | | | | | | |
(18
|
)
|
Operating income
| | | | | | | | |
$
|
37,553
|
|
| | | | | | | | |
|
Capital spending:
| | | | | | | | | |
Regulatory and maintenance capital spending
| | |
$
|
6,940
| | | |
$
|
2,828
| | | |
$
|
9,768
| |
Discretionary capital spending
| | |
670
|
| | |
3,097
|
| | |
3,767
|
|
Total capital spending
| | |
$
|
7,610
|
| | |
$
|
5,925
|
| | |
$
|
13,535
|
|
| | | | | | | | | | | | | | |
|
(1) |
The information presented includes the results of operations of the
Logistics Assets Predecessor. Prior to the El Dorado offloading
racks acquisition and Tyler crude oil storage tank acquisition on
March 31, 2015, the Logistics Assets Predecessor did not record
revenues for intercompany throughput and storage services.
|
|
|
|
|
| |
| | | Six Months Ended June 30, 2014 (1) |
| | | Pipelines & Transportation |
|
| Wholesale Marketing & Terminalling |
|
| Consolidated |
Affiliate
| | |
$
|
37,746
| | | |
$
|
16,429
| | | |
$
|
54,175
|
Third-Party
| | |
5,588
|
| | |
380,107
|
| | |
385,695
|
Net sales
| | |
$
|
43,334
| | | |
$
|
396,536
| | | |
$
|
439,870
|
Operating costs and expenses:
| | | | | | | | | |
Cost of goods sold
| | |
2,256
| | | |
366,527
| | | |
368,783
|
Operating expenses
| | |
15,484
|
| | |
3,731
|
| | |
19,215
|
Segment contribution margin
| | |
$
|
25,594
|
| | |
$
|
26,278
|
| | |
51,872
|
General and administrative expense
| | | | | | | | |
4,905
|
Depreciation and amortization
| | | | | | | | |
7,100
|
Loss on disposal of assets
| | | | | | | | |
74
|
Operating income
| | | | | | | | |
$
|
39,793
|
| | | | | | | | |
|
Capital spending
| | | | | | | | | |
Regulatory and maintenance capital spending
| | |
$
|
3,169
| | | |
$
|
625
| | | |
$
|
3,794
|
Discretionary capital spending
| | |
247
|
| | |
159
|
| | |
406
|
Total capital spending (2) | | |
$
|
3,416
|
| | |
$
|
784
|
| | |
$
|
4,200
|
| | | | | | | | | | | | | |
|
(1) |
The information presented includes the results of operations of the
El Dorado Predecessor and Logistics Assets Predecessor. Prior to the
El Dorado acquisition on February 10, 2014, the El Dorado
Predecessor did not record revenues for intercompany terminalling
and storage services. Prior to the El Dorado offloading racks
acquisition and Tyler crude oil storage tank acquisition on March
31, 2015, the Logistics Assets Predecessor revenues for intercompany
throughput and storage services were not recorded.
|
(2) |
Capital spending includes expenditures of $2.3 million incurred in
connection with the acquisition of the Logistics Assets Predecessor
and El Dorado asset predecessor.
|
|
|
|
Delek Logistics Partners, LP |
Segment Data (Unaudited)
|
(In thousands)
|
|
|
|
| Six Months Ended June 30, 2015 |
| | | Pipelines & Transportation |
| | | Delek Logistics Partners, LP |
|
| Predecessor - Logistics Assets |
|
| Six Months Ended June 30, 2015 |
Net Sales
| | |
$
|
64,736
| | | |
$
|
—
| | | |
$
|
64,736
|
Operating costs and expenses:
| | | | | | | | | |
Cost of goods sold
| | |
9,915
| | | |
—
| | | |
9,915
|
Operating expenses
| | |
14,496
|
| | |
167
|
| | |
14,663
|
Segment contribution margin
| | |
$
|
40,325
|
| | |
$
|
(167
|
)
| | |
$
|
40,158
|
| | | | | | | | |
|
Total capital spending
| | |
$
|
7,662
|
| | |
$
|
(52
|
)
| | |
$
|
7,610
|
| | | | | | | | | | | | | |
|
|
|
| |
| | | Six Months Ended June 30, 2015 |
| | | Wholesale Marketing & Terminalling |
| | | Delek Logistics Partners, LP |
|
| Predecessor - Logistics Assets |
|
| Six Months Ended June 30, 2015 |
Net Sales
| | |
$
|
250,910
| | | |
$
|
—
| | | |
$
|
250,910
|
Operating costs and expenses:
| | | | | | | | | |
Cost of goods sold
| | |
230,986
| | | |
—
| | | |
230,986
|
Operating expenses
| | |
6,912
|
| | |
—
|
| | |
6,912
|
Segment contribution margin
| | |
$
|
13,012
|
| | |
$
|
—
|
| | |
$
|
13,012
|
| | | | | | | | |
|
Total capital spending
| | |
$
|
5,925
|
| | |
$
|
—
|
| | |
$
|
5,925
|
| | | | | | | | | | | | | |
|
|
Delek Logistics Partners, LP |
Segment Data (Unaudited)
|
(In thousands)
|
|
|
|
| Six Months Ended June 30, 2014 |
| | | Pipelines & Transportation |
| | | Delek Logistics Partners, LP |
|
| Predecessor - Logistics Assets |
|
| Predecessor - El Dorado Storage Tank Assets |
|
| Six Months Ended June 30, 2014 |
Net Sales
| | |
$
|
43,334
| | | |
$
|
—
| | | |
$
|
—
| |
| |
$
|
43,334
|
Operating costs and expenses:
| | | | | | | | | | | | |
Cost of goods sold
| | |
2,256
| | | |
—
| | | |
—
| | | |
2,256
|
Operating expenses
| | |
14,451
|
| | |
352
|
| | |
681
|
|
| |
15,484
|
Segment contribution margin
| | |
$
|
26,627
|
| | |
$
|
(352
|
)
| | |
$
|
(681
|
)
|
| |
$
|
25,594
|
| | | | | | | | | | | |
|
Total capital spending
| | |
$
|
936
|
| | |
$
|
2,267
|
| | |
$
|
213
|
| | |
$
|
3,416
|
| | | | | | | | | | | | | | | | | | |
|
|
|
| |
| | | Six Months Ended June 30, 2014 |
| | | Wholesale Marketing & Terminalling |
| | | Delek Logistics Partners, LP |
|
| Predecessor - Logistics Assets |
|
| Predecessor - El Dorado Terminal Assets |
|
| Six Months Ended June 30, 2014 |
Net Sales
| | |
$
|
396,536
| | | |
$
|
—
| | | |
$
|
—
| |
| |
$
|
396,536
|
Operating costs and expenses:
| | | | | | | | | | | | |
Cost of goods sold
| | |
366,527
| | | |
—
| | | |
—
| | | |
366,527
|
Operating expenses
| | |
3,629
|
| | |
—
|
| | |
102
|
|
| |
3,731
|
Segment contribution margin
| | |
$
|
26,380
|
| | |
$
|
—
|
| | |
$
|
(102
|
)
| | |
$
|
26,278
|
| | | | | | | | | | | |
|
Total capital spending
| | |
$
|
820
|
| | |
$
|
—
|
| | |
$
|
(36
|
)
| | |
$
|
784
|
| | | | | | | | | | | | | | | | | | |
|
|
|
| |
|
| |
Delek Logistics Partners, LP |
Segment Data (Unaudited)
|
| | | | | |
|
|
|
| Three Months Ended June 30, | | | Six Months Ended June 30, |
Throughputs (average bpd)
| | | 2015 |
|
| 2014 | | | 2015 | | | 2014 |
| | | | | | | | | | | |
|
Pipelines and Transportation Segment: | | | | | | | | | | | | |
Lion Pipeline System:
| | | | | | | | | | | | |
Crude pipelines (non-gathered)
| | |
53,863
| | | |
59,038
| | | |
55,267
| | | |
41,936
|
Refined products pipelines to Enterprise Systems
| | |
58,572
| | | |
59,888
| | | |
57,258
| | | |
45,908
|
SALA Gathering System
| | |
21,305
| | | |
21,300
| | | |
21,421
| | | |
22,201
|
East Texas Crude Logistics System
| | |
28,677
| | | |
3,223
| | | |
23,892
| | | |
7,105
|
El Dorado Rail Offloading Rack
| | |
2,964
| | | |
—
| | | |
2,964
| | | |
—
|
| | | | | | | | | | | |
|
Wholesale Marketing and Terminalling Segment: | | | | | | | | | | | | |
East Texas - Tyler Refinery sales volumes (average bpd)
| | |
66,860
| | | |
61,231
| | | |
47,018
| | | |
61,828
|
West Texas marketing throughputs (average bpd)
| | |
17,490
| | | |
17,451
| | | |
17,070
| | | |
16,729
|
West Texas marketing margin per barrel
| | |
$
|
1.31
| | | |
$
|
6.52
| | | |
$
|
1.35
| | | |
$
|
5.06
|
Terminalling throughputs (average bpd)
| | |
113,578
| | | |
98,962
| | | |
90,581
| | | |
94,468
|
| | | | | | | | | | | | | | |
|
|
Delek Logistics Partners, LP |
Segment Data (Unaudited)
|
|
|
|
| Delek Logistics Partners, LP |
|
| Predecessor - Logistics Assets |
|
| Six Months Ended June 30, 2015 |
Throughputs (average bpd)
| | | | | | | | | |
Pipelines and Transportation Segment: | | | | | | | | | |
Lion Pipeline System:
| | |
55,267
| | | |
—
| | | |
55,267
|
Crude pipelines (non-gathered)
| | |
57,258
| | | |
—
| | | |
57,258
|
Refined products pipelines to Enterprise Systems
| | |
21,421
| | | |
—
| | | |
21,421
|
SALA Gathering System
| | |
27,623
| | | |
—
| | | |
27,623
|
East Texas Crude Logistics System
| | |
23,892
| | | |
—
| | | |
23,892
|
El Dorado Rail Offloading Rack
| | |
2,964
| | | |
5,151
| | | |
4,051
|
| | | | | | | | |
|
Wholesale Marketing and Terminalling Segment: | | | | | | | | | |
East Texas - Tyler Refinery sales volumes (average bpd)
| | |
47,018
| | | |
—
| | | |
47,018
|
West Texas marketing throughputs (average bpd)
| | |
17,070
| | | |
—
| | | |
17,070
|
West Texas marketing margin per barrel
| | |
$
|
1.35
| | | |
$
|
—
| | | |
$
|
1.35
|
Terminalling throughputs (average bpd)
| | |
90,581
| | | |
—
| | | |
90,581
|
| | | | | | | | | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150803006427/en/
Contacts:
Delek Logistics Partners, LP
Keith Johnson, 615-435-1366
Vice
President of Investor Relations
or
Alpha IR Group
Chris
Hodges, 312-445-2870
Founder & CEO
Source: Delek Logistics Partners, LP
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