BRENTWOOD, Tenn.--(BUSINESS WIRE)--Feb. 23, 2015-- Delek Logistics Partners, LP (NYSE: DKL) (“Delek Logistics”) today announced its financial results for the fourth quarter 2014. For the three months ended December 31, 2014, Delek Logistics reported net income attributable to all partners of $20.5 million, or $0.80 per diluted limited partner unit. This compares to net income attributable to all partners of $11.3 million, or $0.46 per diluted limited partner unit in the fourth quarter 2013. Distributable cash flow was $21.8 million in the fourth quarter 2014, compared to $13.3 million in the prior-year period.
For 2014, net income attributable to all partners was $72.0 million, or $2.85 per diluted limited partner unit. This compares to net income attributable to all partners of $47.8 million, or $1.93 per diluted limited partner unit for 2013. Distributable cash flow increased to $80.3 million in 2014 from $52.9 million in 2013, while earnings before interest, taxes, depreciation and amortization, (“EBITDA”) increased to $95.4 million in 2014 from $63.8 million in 2013.
Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics' general partner, remarked: “We had a strong fourth quarter with a 64 percent increase in our distributable cash flow on a year-over-year basis and a distributable cash flow coverage ratio of 1.7 times. This improved performance was due to a combination of higher margins in the west Texas wholesale business, increased volumes across our systems and acquisitions completed over the past year. In addition, during the fourth quarter we completed new agreements for the Paline Pipeline, amended our credit facility that improved our financial flexibility and acquired several strategic assets in Texas and Arkansas.”
Yemin continued, “We expect to purchase identified drop-down assets from Delek US by the end of March. These acquisitions, combined with our accomplishments in the fourth quarter, should move us closer to meeting our previously discussed goal from the second quarter to add approximately $25 million to $35 million of annual incremental EBITDA to our operations by the end of the first quarter 2015. We continue to evaluate strategic initiatives, both organic projects and opportunistic acquisitions, to provide additional growth, and believe that we should have the ability to increase our annual distributions by at least 15 percent going forward.”
Distribution and Liquidity
On January 27, 2015, Delek Logistics declared a quarterly cash distribution for the fourth quarter of approximately $13.1 million, or $0.510 per limited partner unit. This distribution, which was payable on February 13, 2015, equates to $2.04 per limited partner unit on an annualized basis. This represents a 4.1 percent increase from the third quarter 2014 distribution of $0.490 per limited partner unit, or $1.96 per limited partner unit on an annualized basis, and a 22.9 percent increase over Delek Logistics’ fourth quarter 2013 distribution of $0.415 per limited partner unit, or $1.66 per limited partner unit annualized.
As of December 31, 2014, Delek Logistics had a cash balance of approximately $1.9 million and total debt was $251.8 million. Availability under the $700.0 million credit facility was $440.8 million. On December 30, 2014, Delek Logistics entered into an amendment and restatement of its revolving credit facility which increased lender commitments to $700 million from $400 million to support the future growth of its business. While the majority of the terms and conditions of the amended and restated credit facility are substantially unchanged from the predecessor facility, among other changes, adjustments were made to increase the initial maximum leverage ratio, as defined in the credit agreement, to 4.25 times from 4.00 times.
Financial Results
Results in the fourth quarter 2014 compared to the prior year period benefited from the acquisition of the El Dorado tank farm and product terminal in February 2014. For accounting purposes, the expenses from operations prior to that acquisition 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 fourth quarter 2014 was $173.3 million and contribution margin was $29.3 million, which compares to revenue of $223.1 million and a contribution margin of $18.6 million in the fourth quarter 2013. Total operating expenses were $9.7 million compared to $7.2 million in the fourth quarter 2013. Operating expenses increased year-over-year primarily due to maintenance expense and outside services. General and administrative expenses were $3.3 million for the fourth quarter 2014 compared to $1.7 million in the prior-year period. This increase in general and administrative expenses was primarily due to professional fees related to acquisitions. For the fourth quarter 2014, earnings before interest, taxes, depreciation and amortization, (“EBITDA”) was $26.1 million, compared to $16.7 million in the prior year period.
Wholesale Marketing and Terminalling Segment
Contribution margin for the Wholesale Marketing and Terminalling segment was $15.2 million in the fourth quarter 2014, compared to $6.8 million in the fourth quarter 2013.
In west Texas, throughput was 15,441 barrels per day compared to 18,009 barrels per day in the fourth quarter 2013. While volume was lower on a year-over-year basis, the wholesale gross margin per barrel in west Texas increased to $6.36 and included approximately $1.2 million, or $1.70 per barrel from renewable identification numbers (RINs) generated in the quarter. During the fourth quarter 2013, the wholesale gross margin per barrel was $1.24 and included $0.7 million from RINs, or $0.43 per barrel. During the fourth quarter 2014, the gross margin per barrel increased as the local market sales price in west Texas did not decline as quickly as the Gulf Coast light product prices.
The El Dorado, Arkansas terminal purchased in February 2014 also contributed to the increase in contribution margin in the fourth quarter 2014 compared to the prior year period. Terminalling throughput volume of 100,396 barrels per day during the quarter increased on a year-over-year basis from 69,994 barrels per day in the fourth quarter 2013. During the fourth quarter 2014, volume under the east Texas marketing agreement with Delek US was 62,172 barrels per day compared to 55,279 barrels per day during the fourth quarter 2013.
Pipelines and Transportation Segment
The Pipeline and Transportation segment’s fourth quarter 2014 contribution margin of $14.1 million improved from $11.8 million in the fourth quarter 2013. This increase is primarily attributed to storage fees associated with the El Dorado tank farm purchased in February 2014. In addition, higher volumes on the SALA gathering system and Lion Pipeline system improved segment performance on a year-over-year basis.
Volumes on the Lion Pipeline System were higher on a year-over-year basis as Delek US’ El Dorado refinery increased throughput following the turnaround that it completed during the first quarter 2014. Crude oil (non-gathered) transported on the Lion Pipeline system increased to 50,303 barrels per day in the fourth quarter 2014 from 44,096 barrels per day in the prior-year period.
Future Asset Drop Downs
Delek Logistics expects to purchase two identified drop down assets from Delek US by the end of the first quarter 2015. These assets consist of a 300,000 barrel crude oil storage tank located at Delek US’ Tyler, Texas refinery and two rail offloading racks located at Delek US’ El Dorado refinery. The expected EBITDA from the combination of these assets is $5 million to $10 million on an annual basis.
Paline Pipeline
Under the new Paline Pipeline agreements executed in the fourth quarter, two third parties will 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, incremental annual distributable cash flow from this pipeline should be increased by approximately $13.6 million and revenue per barrel should be effectively increased by approximately $1.00 compared to 2014.
Recent Acquisitions
On December 17, 2014, a subsidiary of Delek Logistics purchased the assets of Frank Thompson Transport for approximately $11.5 million in cash. These transportation assets, which primarily consist of approximately 120 trucks and 200 trailers, are expected to contribute approximately $2.4 million of incremental earnings before interest, taxes, depreciation and amortization (“EBITDA”) on an annual basis.
On October 1, 2014 a subsidiary of Delek Logistics purchased a set of logistics assets from affiliates of Magellan Midstream Partners, L.P. for $11.1 million in cash, including $1.1 million of inventory. These assets include a light products terminal in Mount Pleasant, Texas, a light products storage facility in Greenville, Texas, and a pipeline connecting these two locations. By the end of 2015, these assets are expected to achieve annualized earnings before interest, taxes, depreciation and amortization (“EBITDA”) of approximately $1.4 million.
Fourth Quarter 2014 Results | Conference Call Information
Delek Logistics will hold a conference call to discuss its fourth quarter 2014 results on February 24, 2015 at 7:30 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 May 24, 2015 by dialing (855) 859-2056, passcode 70265546. 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) fourth quarter 2014 earnings conference call on February 24, 2015 at 8:30 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 relating to the age of our assets and operational hazards of our assets including, without limitation, 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 year ended December 31, 2014 and 2013. On July 26, 2013, Delek Logistics acquired from Delek US substantially all of the active storage tanks and the product terminal at Delek US’ Tyler, Texas refinery (the “Tyler Assets”). On February 10, 2014, Delek Logistics acquired substantially all of the active storage tanks and product terminal located at Delek US’ El Dorado refinery (the “El Dorado Assets”). Both the Tyler Assets and El Dorado 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 the Tyler Assets and El Dorado Assets. For all periods presented through July 26, 2013, the date of the Tyler Asset acquisition, and February 10, 2014, the acquisition date of the El Dorado Assets, the retrospective adjustments were made to the financial statements. The historical results of the Tyler and El Dorado assets, prior to each acquisition date, are referred to as the “Predecessors.”
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
December 31,
|
|
|
Year Ended
December 31,
|
| ($ in thousands) |
|
|
2014 |
|
|
|
2013(1) |
|
|
2014 (1) |
|
|
2013 (2) |
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
$ |
20,486 |
|
|
|
$ |
10,338 |
|
|
|
$ |
71,054 |
|
|
|
$ |
33,667 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax (benefit) expense |
|
|
(473 |
) |
|
|
210 |
|
|
|
132 |
|
|
|
757 |
|
| Depreciation and amortization |
|
|
3,947 |
|
|
|
3,772 |
|
|
|
14,705 |
|
|
|
13,738 |
|
| Interest expense, net |
|
|
2,105 |
|
|
|
1,807 |
|
|
|
8,656 |
|
|
|
4,570 |
|
| EBITDA |
|
|
$ |
26,065 |
|
|
|
$ |
16,127 |
|
|
|
$ |
94,547 |
|
|
|
$ |
52,732 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
|
$ |
20,991 |
|
|
|
$ |
7,360 |
|
|
|
$ |
85,920 |
|
|
|
$ |
36,971 |
|
| Amortization of unfavorable contract liability to revenue |
|
|
668 |
|
|
|
667 |
|
|
|
2,670 |
|
|
|
2,623 |
|
| Amortization of debt issuance costs |
|
|
(316 |
) |
|
|
(447 |
) |
|
|
(1,267 |
) |
|
|
(1,007 |
) |
| Accretion of asset retirement obligations |
|
|
35 |
|
|
|
(55 |
) |
|
|
(232 |
) |
|
|
(224 |
) |
| Deferred taxes |
|
|
190 |
|
|
|
(267 |
) |
|
|
109 |
|
|
|
(309 |
) |
| Loss on asset disposals |
|
|
(9 |
) |
|
|
(166 |
) |
|
|
(83 |
) |
|
|
(166 |
) |
| Unit-based compensation expense |
|
|
(78 |
) |
|
|
(285 |
) |
|
|
(274 |
) |
|
|
(464 |
) |
| Changes in assets and liabilities |
|
|
2,952 |
|
|
|
7,303 |
|
|
|
(1,084 |
) |
|
|
9,981 |
|
| Income taxes (benefit) expense |
|
|
(473 |
) |
|
|
210 |
|
|
|
132 |
|
|
|
757 |
|
| Interest expense, net |
|
|
2,105 |
|
|
|
1,807 |
|
|
|
8,656 |
|
|
|
4,570 |
|
| EBITDA |
|
|
$ |
26,065 |
|
|
|
$ |
16,127 |
|
|
|
$ |
94,547 |
|
|
|
$ |
52,732 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
$ |
26,065 |
|
|
|
$ |
16,127 |
|
|
|
$ |
94,547 |
|
|
|
$ |
52,732 |
|
| Less: Cash interest, net |
|
|
1,789 |
|
|
|
1,360 |
|
|
|
7,389 |
|
|
|
3,563 |
|
| Less: Maintenance and regulatory capital expenditures |
|
|
3,883 |
|
|
|
3,086 |
|
|
|
6,642 |
|
|
|
12,662 |
|
| Add: Reimbursement from Delek for capital expenditures |
|
|
1,578 |
|
|
|
374 |
|
|
|
1,578 |
|
|
|
837 |
|
| Less: Income tax (benefit) expense |
|
|
(473 |
) |
|
|
210 |
|
|
|
132 |
|
|
|
757 |
|
| Add: Non-cash unit-based compensation expense |
|
|
78 |
|
|
|
285 |
|
|
|
274 |
|
|
|
464 |
|
| Less: Amortization of deferred revenue |
|
|
77 |
|
|
|
50 |
|
|
|
307 |
|
|
|
204 |
|
| Less: Amortization of unfavorable contract liability |
|
|
668 |
|
|
|
667 |
|
|
|
2,670 |
|
|
|
2,623 |
|
| Distributable cash flow |
|
|
$ |
21,777 |
|
|
|
$ |
11,413 |
|
|
|
$ |
79,259 |
|
|
|
$ |
34,224 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) 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.
(2) The information presented includes the results of operations of the Tyler and El Dorado Predecessors. Prior to the Tyler acquisition on July 26, 2013 and the El Dorado acquisition on February 10, 2014, the Predecessors did not record revenues for intercompany terminalling and storage services.
|
| |
| Delek Logistics Partners, LP |
| Reconciliation of Amounts Reported Under U.S. GAAP |
| |
| ($ in thousands) |
|
|
Delek Logistics
Partners, LP
|
|
|
El Dorado Terminal
and Tank Assets (1)
1/1/2014-2/10/2014
|
|
|
Year Ended
December 31, 2014
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
El Dorado Predecessor |
|
|
|
|
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
$ |
71,997 |
|
|
|
$ |
(943 |
) |
|
|
$ |
71,054 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
132 |
|
|
|
— |
|
|
|
132 |
|
| Depreciation and amortization |
|
|
14,591 |
|
|
|
114 |
|
|
|
14,705 |
|
| Interest expense, net |
|
|
8,656 |
|
|
|
— |
|
|
|
8,656 |
|
| EBITDA |
|
|
$ |
95,376 |
|
|
|
$ |
(829 |
) |
|
|
$ |
94,547 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) operating activities |
|
|
$ |
86,749 |
|
|
|
$ |
(829 |
) |
|
|
$ |
85,920 |
|
| Amortization of unfavorable contract liability to revenue |
|
|
2,670 |
|
|
|
— |
|
|
|
2,670 |
|
| Amortization of debt issuance costs |
|
|
(1,267 |
) |
|
|
— |
|
|
|
(1,267 |
) |
| Accretion of asset retirement obligations |
|
|
(238 |
) |
|
|
6 |
|
|
|
(232 |
) |
| Deferred taxes |
|
|
109 |
|
|
|
— |
|
|
|
109 |
|
| Loss on asset disposals |
|
|
(83 |
) |
|
|
— |
|
|
|
(83 |
) |
| Unit-based compensation expense |
|
|
(274 |
) |
|
|
— |
|
|
|
(274 |
) |
| Changes in assets and liabilities |
|
|
(1,078 |
) |
|
|
(6 |
) |
|
|
(1,084 |
) |
| Income tax expense |
|
|
132 |
|
|
|
— |
|
|
|
132 |
|
| Interest expense, net |
|
|
8,656 |
|
|
|
— |
|
|
|
8,656 |
|
| EBITDA |
|
|
$ |
95,376 |
|
|
|
$ |
(829 |
) |
|
|
$ |
94,547 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
$ |
95,376 |
|
|
|
$ |
(829 |
) |
|
|
$ |
94,547 |
|
| Less: Cash interest, net |
|
|
7,389 |
|
|
|
— |
|
|
|
7,389 |
|
| Less: Maintenance and regulatory capital expenditures |
|
|
6,465 |
|
|
|
177 |
|
|
|
6,642 |
|
| Add: Reimbursement from Delek for capital expenditures |
|
|
1,578 |
|
|
|
— |
|
|
|
1,578 |
|
| Less: Income tax expense |
|
|
132 |
|
|
|
— |
|
|
|
132 |
|
| Add: Non-cash unit-based compensation expense |
|
|
274 |
|
|
|
— |
|
|
|
274 |
|
| Less: Amortization of deferred revenue |
|
|
307 |
|
|
|
— |
|
|
|
307 |
|
| Less: Amortization of unfavorable contract liability |
|
|
2,670 |
|
|
|
— |
|
|
|
2,670 |
|
| Distributable cash flow |
|
|
$ |
80,265 |
|
|
|
$ |
(1,006 |
) |
|
|
$ |
79,259 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The information presented is for the year ended December 31, 2014, disaggregated to present the results of operations of 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 |
| Reconciliation of Amounts Reported Under U.S. GAAP |
| |
| |
|
|
Delek
Logistics
Partners, LP
|
|
|
El Dorado
Terminal and
Tank Assets (1)
|
|
|
Three Months
Ended
December 31,
2013
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| ($ in thousands) |
|
|
|
|
|
|
El Dorado
Predecessor
|
|
|
|
|
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
$ |
11,325 |
|
|
|
$ |
(987 |
) |
|
|
$ |
10,338 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
210 |
|
|
|
— |
|
|
|
210 |
|
| Depreciation and amortization |
|
|
3,362 |
|
|
|
410 |
|
|
|
3,772 |
|
| Interest expense, net |
|
|
1,807 |
|
|
|
— |
|
|
|
1,807 |
|
| EBITDA |
|
|
$ |
16,704 |
|
|
|
$ |
(577 |
) |
|
|
$ |
16,127 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) operating activities |
|
|
$ |
8,907 |
|
|
|
$ |
(1,547 |
) |
|
|
$ |
7,360 |
|
| Amortization of unfavorable contract liability to revenue |
|
|
667 |
|
|
|
— |
|
|
|
667 |
|
| Amortization of debt issuance costs |
|
|
(447 |
) |
|
|
— |
|
|
|
(447 |
) |
| Accretion of asset retirement obligations |
|
|
(53 |
) |
|
|
(2 |
) |
|
|
(55 |
) |
| Deferred taxes |
|
|
(267 |
) |
|
|
— |
|
|
|
(267 |
) |
| Loss on asset disposals |
|
|
(166 |
) |
|
|
— |
|
|
|
(166 |
) |
| Unit-based compensation expense |
|
|
(285 |
) |
|
|
— |
|
|
|
(285 |
) |
| Changes in assets and liabilities |
|
|
6,331 |
|
|
|
972 |
|
|
|
7,303 |
|
| Income tax expense |
|
|
210 |
|
|
|
— |
|
|
|
210 |
|
| Interest expense, net |
|
|
1,807 |
|
|
|
— |
|
|
|
1,807 |
|
| EBITDA |
|
|
$ |
16,704 |
|
|
|
$ |
(577 |
) |
|
|
$ |
16,127 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
$ |
16,704 |
|
|
|
$ |
(577 |
) |
|
|
$ |
16,127 |
|
| Less: Cash interest, net |
|
|
1,360 |
|
|
|
— |
|
|
|
1,360 |
|
| Less: Maintenance and regulatory capital expenditures |
|
|
1,781 |
|
|
|
1,305 |
|
|
|
3,086 |
|
| Add: Reimbursement from Delek for capital expenditures |
|
|
374 |
|
|
|
— |
|
|
|
374 |
|
| Less: Income tax expense |
|
|
210 |
|
|
|
— |
|
|
|
210 |
|
| Add: Non-cash unit-based compensation expense |
|
|
285 |
|
|
|
— |
|
|
|
285 |
|
| Less: Amortization of deferred revenue |
|
|
50 |
|
|
|
— |
|
|
|
50 |
|
| Less: Amortization of unfavorable contract liability |
|
|
667 |
|
|
|
— |
|
|
|
667 |
|
| Distributable cash flow |
|
|
$ |
13,295 |
|
|
|
$ |
(1,882 |
) |
|
|
$ |
11,413 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The information presented is for the three months ended December 31, 2013, 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 |
| Reconciliation of Amounts Reported Under U.S. GAAP |
| |
| |
|
|
Delek
Logistics
Partners, LP
|
|
|
Tyler Terminal
and Tank
Assets (1)
|
|
|
El Dorado
Terminal and
Tank Assets (1)
|
|
|
Year Ended
December 31,
2013
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ($ in thousands) |
|
|
|
|
|
|
Tyler Predecessor |
|
|
El Dorado
Predecessor
|
|
|
|
|
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
$ |
47,830 |
|
|
|
$ |
(6,853 |
) |
|
|
$ |
(7,310 |
) |
|
|
$ |
33,667 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
757 |
|
|
|
— |
|
|
|
— |
|
|
|
757 |
|
| Depreciation and amortization |
|
|
10,686 |
|
|
|
1,750 |
|
|
|
1,302 |
|
|
|
13,738 |
|
| Interest expense, net |
|
|
4,570 |
|
|
|
— |
|
|
|
— |
|
|
|
4,570 |
|
| EBITDA |
|
|
$ |
63,843 |
|
|
|
$ |
(5,103 |
) |
|
|
$ |
(6,008 |
) |
|
|
$ |
52,732 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) operating activities |
|
|
$ |
49,447 |
|
|
|
$ |
(5,056 |
) |
|
|
$ |
(7,420 |
) |
|
|
$ |
36,971 |
|
| Amortization of unfavorable contract liability to revenue |
|
|
2,623 |
|
|
|
— |
|
|
|
— |
|
|
|
2,623 |
|
| Amortization of debt issuance costs |
|
|
(1,007 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,007 |
) |
| Accretion of asset retirement obligations |
|
|
(161 |
) |
|
|
(55 |
) |
|
|
(8 |
) |
|
|
(224 |
) |
| Deferred taxes |
|
|
(309 |
) |
|
|
— |
|
|
|
— |
|
|
|
(309 |
) |
| Loss on asset disposals |
|
|
(166 |
) |
|
|
— |
|
|
|
— |
|
|
|
(166 |
) |
| Unit-based compensation expense |
|
|
(464 |
) |
|
|
— |
|
|
|
— |
|
|
|
(464 |
) |
| Changes in assets and liabilities |
|
|
8,553 |
|
|
|
8 |
|
|
|
1,420 |
|
|
|
9,981 |
|
| Income tax expense |
|
|
757 |
|
|
|
— |
|
|
|
— |
|
|
|
757 |
|
| Interest expense, net |
|
|
4,570 |
|
|
|
— |
|
|
|
— |
|
|
|
4,570 |
|
| EBITDA |
|
|
$ |
63,843 |
|
|
|
$ |
(5,103 |
) |
|
|
$ |
(6,008 |
) |
|
|
$ |
52,732 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
$ |
63,843 |
|
|
|
$ |
(5,103 |
) |
|
|
$ |
(6,008 |
) |
|
|
$ |
52,732 |
|
| Less: Cash interest, net |
|
|
3,563 |
|
|
|
— |
|
|
|
— |
|
|
|
3,563 |
|
| Less: Maintenance and regulatory capital expenditures |
|
|
5,127 |
|
|
|
4,271 |
|
|
|
3,264 |
|
|
|
12,662 |
|
| Add: Reimbursement from Delek for capital expenditures |
|
|
837 |
|
|
|
— |
|
|
|
— |
|
|
|
837 |
|
| Less: Income tax expense |
|
|
757 |
|
|
|
— |
|
|
|
— |
|
|
|
757 |
|
| Add: Non-cash unit-based compensation expense |
|
|
464 |
|
|
|
— |
|
|
|
— |
|
|
|
464 |
|
| Less: Amortization of deferred revenue |
|
|
204 |
|
|
|
— |
|
|
|
— |
|
|
|
204 |
|
| Less: Amortization of unfavorable contract liability |
|
|
2,623 |
|
|
|
— |
|
|
|
— |
|
|
|
2,623 |
|
| Distributable cash flow |
|
|
$ |
52,870 |
|
|
|
$ |
(9,374 |
) |
|
|
$ |
(9,272 |
) |
|
|
$ |
34,224 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The information presented is for the year ended December 31, 2013, disaggregated to present the results of operations of the Partnership and the Tyler and El Dorado Predecessors. Prior to the completion of the Tyler acquisition on July 26, 2013 and the El Dorado acquisition on February 10, 2014, the Predecessors did not record revenues for intercompany terminalling and storage services.
|
| |
| Delek Logistics Partners, LP |
| Condensed Consolidated Balance Sheets (Unaudited) |
| |
| |
|
|
December 31, |
|
|
December 31, |
| |
|
|
2014 |
|
|
2013 (1) |
| |
|
|
|
|
|
|
|
|
| |
|
|
(In thousands) |
| ASSETS |
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
$ |
1,861 |
|
|
|
$ |
924 |
|
| Accounts receivable |
|
|
27,956 |
|
|
|
28,976 |
|
| Inventory |
|
|
10,316 |
|
|
|
17,512 |
|
| Deferred tax assets |
|
|
28 |
|
|
|
12 |
|
| Other current assets |
|
|
768 |
|
|
|
341 |
|
| Total current assets |
|
|
40,929 |
|
|
|
47,765 |
|
| Property, plant and equipment: |
|
|
|
|
|
|
|
|
| Property, plant and equipment |
|
|
293,525 |
|
|
|
264,072 |
|
| Less: accumulated depreciation |
|
|
(52,992 |
) |
|
|
(39,566 |
) |
| Property, plant and equipment, net |
|
|
240,533 |
|
|
|
224,506 |
|
| Goodwill |
|
|
11,654 |
|
|
|
11,654 |
|
| Intangible assets, net |
|
|
11,349 |
|
|
|
12,374 |
|
| Other non-current assets |
|
|
7,374 |
|
|
|
5,045 |
|
| Total assets |
|
|
$ |
311,839 |
|
|
|
$ |
301,344 |
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
$ |
18,208 |
|
|
|
$ |
26,045 |
|
| Accounts payable to related parties |
|
|
628 |
|
|
|
1,513 |
|
| Excise and other taxes payable |
|
|
5,443 |
|
|
|
5,700 |
|
| Accrued expenses and other current liabilities |
|
|
1,588 |
|
|
|
4,732 |
|
| Tank inspection liabilities |
|
|
2.829 |
|
|
|
1.719 |
|
| Pipeline release liabilities |
|
|
1.899 |
|
|
|
— |
|
| Total current liabilities |
|
|
30,595 |
|
|
|
39,709 |
|
| Non-current liabilities: |
|
|
|
|
|
|
|
|
| Revolving credit facility |
|
|
251,750 |
|
|
|
164,800 |
|
| Asset retirement obligations |
|
|
3,319 |
|
|
|
3,087 |
|
| Deferred tax liabilities |
|
|
231 |
|
|
|
324 |
|
| Other non-current liabilities |
|
|
5,889 |
|
|
|
6,222 |
|
| Total non-current liabilities |
|
|
261,189 |
|
|
|
174,433 |
|
| Equity: |
|
|
|
|
|
|
|
|
| Predecessor division equity |
|
|
— |
|
|
|
25,161 |
|
| Common unitholders - public; 9,417,189 units issued and outstanding at December 31, 2014 (9,353,240 at December 31, 2013) |
|
|
194,737 |
|
|
|
183,839 |
|
| Common unitholders - Delek; 2,799,258 units issued and outstanding at December 31, 2014 (2,799,258 at December 31, 2013) |
|
|
(241,112 |
) |
|
|
(176,680 |
) |
| Subordinated unitholders - Delek; 11,999,258 units issued and outstanding at December 31, 2014 (11,999,258 at December 31, 2013) |
|
|
73,515 |
|
|
|
59,386 |
|
| General partner - Delek; 494,197 units issued and outstanding at December 31, 2014 (492,893 at December 31, 2013) |
|
|
(7,085 |
) |
|
|
(4,504 |
) |
| Total equity |
|
|
20,055 |
|
|
|
87,202 |
|
| Total liabilities and equity |
|
|
$ |
311,839 |
|
|
|
$ |
301,344 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
(1) Includes the historical balances of the El Dorado Terminal and Tank Assets.
|
| |
| Delek Logistics Partners, LP |
| Condensed Consolidated Statements of Income (Unaudited) |
| |
| |
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
| |
|
|
|
|
| |
|
|
2014 |
|
|
|
2013 (1)
|
|
|
2014 (1) |
|
|
2013 (2) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
(In thousands, except unit and per unit data) |
| Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Affiliate |
|
|
$ |
30,728 |
|
|
|
$ |
23,327 |
|
|
|
$ |
114,583 |
|
|
|
$ |
78,173 |
|
| Third Party |
|
|
142,619 |
|
|
|
199,770 |
|
|
|
726,670 |
|
|
|
829,255 |
|
| Net sales |
|
|
$ |
173,347 |
|
|
|
$ |
223,097 |
|
|
|
$ |
841,253 |
|
|
|
$ |
907,428 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
134,305 |
|
|
|
197,316 |
|
|
|
697,221 |
|
|
|
811,364 |
|
| Operating expenses |
|
|
9,710 |
|
|
|
7,658 |
|
|
|
38,786 |
|
|
|
35,640 |
|
| General and administrative expenses |
|
|
3,258 |
|
|
|
1,830 |
|
|
|
10,616 |
|
|
|
7,526 |
|
| Depreciation and amortization |
|
|
3,947 |
|
|
|
3,772 |
|
|
|
14,705 |
|
|
|
13,738 |
|
| Loss on asset disposals |
|
|
9 |
|
|
|
166 |
|
|
|
83 |
|
|
|
166 |
|
| Total operating costs and expenses |
|
|
151,229 |
|
|
|
210,742 |
|
|
|
761,411 |
|
|
|
868,434 |
|
| Operating income |
|
|
22,118 |
|
|
|
12,355 |
|
|
|
79,842 |
|
|
|
38,994 |
|
| Interest expense, net |
|
|
2,105 |
|
|
|
1,807 |
|
|
|
8,656 |
|
|
|
4,570 |
|
| Income (loss) before income tax expense (benefit) |
|
|
20,013 |
|
|
|
10,548 |
|
|
|
71,186 |
|
|
|
34,424 |
|
| Income tax (benefit) expense |
|
|
(473 |
) |
|
|
210 |
|
|
|
132 |
|
|
|
757 |
|
| Net income |
|
|
$ |
20,486 |
|
|
|
$ |
10,338 |
|
|
|
$ |
71,054 |
|
|
|
$ |
33,667 |
|
| Less: (loss) income attributable to Predecessors |
|
|
— |
|
|
|
(987 |
) |
|
|
(943 |
) |
|
|
(14,163 |
) |
| Net income attributable to partners |
|
|
20,486 |
|
|
|
11,325 |
|
|
|
71,997 |
|
|
|
47,830 |
|
| Comprehensive income attributable to partners |
|
|
$ |
20,486 |
|
|
|
$ |
11,325 |
|
|
|
$ |
71,997 |
|
|
|
$ |
47,830 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less: General partner's interest in net income, including incentive distribution rights |
|
|
(855 |
) |
|
|
(227 |
) |
|
|
(2,366 |
) |
|
|
(957 |
) |
| Limited partners' interest in net income |
|
|
$ |
19,631 |
|
|
|
$ |
11,098 |
|
|
|
$ |
69,631 |
|
|
|
$ |
46,873 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per limited partner unit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common units - (basic) |
|
|
$ |
0.81 |
|
|
|
$ |
0.46 |
|
|
|
$ |
2.88 |
|
|
|
$ |
1.95 |
|
| Common units - (diluted) |
|
|
$ |
0.80 |
|
|
|
$ |
0.46 |
|
|
|
$ |
2.85 |
|
|
|
$ |
1.93 |
|
| Subordinated units - Delek (basic and diluted) |
|
|
$ |
0.81 |
|
|
|
$ |
0.46 |
|
|
|
$ |
2.88 |
|
|
|
$ |
1.95 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average limited partner units outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common units - basic |
|
|
12,189,570 |
|
|
|
12,057,310 |
|
|
|
12,171,548 |
|
|
|
12,025,249 |
|
| Common units - diluted |
|
|
12,328,880 |
|
|
|
12,193,630 |
|
|
|
12,302,629 |
|
|
|
12,148,774 |
|
| Subordinated units - Delek (basic and diluted) |
|
|
11,999,258 |
|
|
|
11,999,258 |
|
|
|
11,999,258 |
|
|
|
11,999,258 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash distribution per limited partner unit |
|
|
$ |
0.510 |
|
|
|
$ |
0.415 |
|
|
|
$ |
1.900 |
|
|
|
$ |
1.600 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The information presented includes the results of operations of 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.
(2) Adjusted to include the historical results of the El Dorado Terminal and Tank Assets.
|
| |
| Delek Logistics Partners, LP |
| Consolidated Statements of Income (Unaudited) |
| Reconciliation of Partnership to Predecessor |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Delek Logistics
Partners, LP
|
|
|
El Dorado Terminal
and Tank Assets (1)
1/1/2014-2/10/2014
|
|
|
Year Ended
December 31, 2014
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
El Dorado Predecessor |
|
|
|
|
| |
|
|
(In thousands) |
| Net Sales |
|
|
$ |
841,253 |
|
|
|
$ |
— |
|
|
|
$ |
841,253 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
697,221 |
|
|
|
— |
|
|
|
697,221 |
|
| Operating expenses |
|
|
38,003 |
|
|
|
783 |
|
|
|
38,786 |
|
| General and administrative expenses |
|
|
10,570 |
|
|
|
46 |
|
|
|
10,616 |
|
| Depreciation and amortization |
|
|
14,591 |
|
|
|
114 |
|
|
|
14,705 |
|
| Loss on asset disposals |
|
|
83 |
|
|
|
— |
|
|
|
83 |
|
| Total operating costs and expenses |
|
|
760,468 |
|
|
|
943 |
|
|
|
761,411 |
|
| Operating income (loss) |
|
|
80,785 |
|
|
|
(943 |
) |
|
|
79,842 |
|
| Interest expense, net |
|
|
8,656 |
|
|
|
— |
|
|
|
8,656 |
|
| Income (loss) before taxes |
|
|
72,129 |
|
|
|
(943 |
) |
|
|
71,186 |
|
| Income tax expense |
|
|
132 |
|
|
|
— |
|
|
|
132 |
|
| Net income (loss) |
|
|
$ |
71,997 |
|
|
|
$ |
(943 |
) |
|
|
$ |
71,054 |
|
| Less: Loss attributable to Predecessors |
|
|
— |
|
|
|
(943 |
) |
|
|
(943 |
) |
| Net income attributable to partners |
|
|
$ |
71,997 |
|
|
|
$ |
— |
|
|
|
$ |
71,997 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The information presented is a summary of our results of operations for the year ended December 31, 2014, disaggregated to present the results of operations of 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 |
| Consolidated Statements of Income (Unaudited) |
| Reconciliation of Partnership to Predecessor |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Delek
Logistics
Partners, LP
|
|
|
El Dorado
Terminal
and Tank
Assets (1)
|
|
|
Three Months
Ended
December 31,
2013
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
El Dorado
Predecessor
|
|
|
|
|
| |
|
|
(In thousands) |
| Net Sales |
|
|
$ |
223,097 |
|
|
|
$ |
— |
|
|
|
$ |
223,097 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
197,316 |
|
|
|
— |
|
|
|
197,316 |
|
| Operating expenses |
|
|
7,227 |
|
|
|
431 |
|
|
|
7,658 |
|
| General and administrative expenses |
|
|
1,684 |
|
|
|
146 |
|
|
|
1,830 |
|
| Depreciation and amortization |
|
|
3,362 |
|
|
|
410 |
|
|
|
3,772 |
|
| Loss on asset disposals |
|
|
166 |
|
|
|
— |
|
|
|
166 |
|
| Total operating costs and expenses |
|
|
209,755 |
|
|
|
987 |
|
|
|
210,742 |
|
| Operating income (loss) |
|
|
13,342 |
|
|
|
(987 |
) |
|
|
12,355 |
|
| Interest expense, net |
|
|
1,807 |
|
|
|
— |
|
|
|
1,807 |
|
| Income (loss) before taxes |
|
|
11,535 |
|
|
|
(987 |
) |
|
|
10,548 |
|
| Income tax expense |
|
|
210 |
|
|
|
— |
|
|
|
210 |
|
| Net income (loss) |
|
|
$ |
11,325 |
|
|
|
$ |
(987 |
) |
|
|
$ |
10,338 |
|
| Less: Loss attributable to Predecessors |
|
|
— |
|
|
|
(987 |
) |
|
|
(987 |
) |
| Net income attributable to partners |
|
|
$ |
11,325 |
|
|
|
$ |
— |
|
|
|
$ |
11,325 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The information presented is a summary of our results of operations for the three months ended December 31, 2013, disaggregated to present the results of operations of 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 |
| |
| Consolidated Statements of Income (Unaudited) |
| Reconciliation of Partnership to Predecessor |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Delek
Logistics
Partners, LP
|
|
|
Tyler Terminal
and Tank
Assets (1)
|
|
|
El Dorado
Terminal and
Tank Assets (1)
|
|
|
Year Ended
December 31,
2013
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
Tyler Predecessor
|
|
|
El Dorado
Predecessor
|
|
|
|
|
| |
|
|
(In thousands) |
| Net Sales |
|
|
$ |
907,428 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
907,428 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
811,364 |
|
|
|
— |
|
|
|
— |
|
|
|
811,364 |
|
| Operating expenses |
|
|
25,801 |
|
|
|
4,501 |
|
|
|
5,338 |
|
|
|
35,640 |
|
| General and administrative expenses |
|
|
6,254 |
|
|
|
602 |
|
|
|
670 |
|
|
|
7,526 |
|
| Depreciation and amortization |
|
|
10,686 |
|
|
|
1,750 |
|
|
|
1,302 |
|
|
|
13,738 |
|
| Loss on asset disposals |
|
|
166 |
|
|
|
— |
|
|
|
— |
|
|
|
166 |
|
| Total operating costs and expenses |
|
|
854,271 |
|
|
|
6,853 |
|
|
|
7,310 |
|
|
|
868,434 |
|
| Operating income (loss) |
|
|
53,157 |
|
|
|
(6,853 |
) |
|
|
(7,310 |
) |
|
|
38,994 |
|
| Interest expense, net |
|
|
4,570 |
|
|
|
— |
|
|
|
— |
|
|
|
4,570 |
|
| Income (loss) before taxes |
|
|
48,587 |
|
|
|
(6,853 |
) |
|
|
(7,310 |
) |
|
|
34,424 |
|
| Income tax expense |
|
|
757 |
|
|
|
— |
|
|
|
— |
|
|
|
757 |
|
| Net income (loss) |
|
|
$ |
47,830 |
|
|
|
$ |
(6,853 |
) |
|
|
$ |
(7,310 |
) |
|
|
$ |
33,667 |
|
| Less: Loss attributable to Predecessors |
|
|
— |
|
|
|
(6,853 |
) |
|
|
(7,310 |
) |
|
|
(14,163 |
) |
| Net income attributable to partners |
|
|
$ |
47,830 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
47,830 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The information presented is a summary of our results of operations for the year ended December 31, 2013, disaggregated to present the results of operations of the Tyler and the El Dorado Predecessors. Prior to the completion of the Tyler acquisition on July 26, 2013 and the El Dorado acquisition on February 10, 2014, the Predecessors did not record revenues for intercompany terminalling and storage services.
|
| |
| Delek Logistics Partners, LP |
| Condensed Consolidated Statements of Cash Flows (Unaudited) |
| (In thousands) |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Year Ended December 31, |
| |
|
|
|
|
|
2014 (1) |
|
|
2013 (2) |
| |
|
|
|
|
|
|
|
|
|
|
|
| Cash Flow Data |
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
|
$ |
85,920 |
|
|
|
$ |
36,971 |
|
| Net cash used in investing activities |
|
|
(29,782 |
) |
|
|
(23,399 |
) |
| Net cash used in financing activities |
|
|
(55,201 |
) |
|
|
(36,100 |
) |
| Net increase (decrease) in cash and cash equivalents |
|
|
$ |
937 |
|
|
|
$ |
(22,528 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
(1) Includes the historical cash flows of the El Dorado Terminal and Tank Assets.
|
|
(2) Adjusted to include the historical cash flows of the El Dorado Terminal and Tank Assets.
|
| |
| Delek Logistics Partners, LP |
| Segment Data (unaudited) |
| (In thousands) |
| |
| |
|
|
Three Months Ended December 31, 2014 |
| |
|
|
Pipelines &
Transportation
|
|
|
Wholesale Marketing
& Terminalling
|
|
|
Consolidated |
| Affiliate |
|
|
$ |
21,360 |
|
|
|
$ |
9,368 |
|
|
|
$ |
30,728 |
| Third Party |
|
|
2,645 |
|
|
|
139,974 |
|
|
|
142,619 |
| Net sales |
|
|
$ |
24,005 |
|
|
|
$ |
149,342 |
|
|
|
$ |
173,347 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
1,027 |
|
|
|
133,278 |
|
|
|
134,305 |
| Operating expenses |
|
|
8,880 |
|
|
|
830 |
|
|
|
9,710 |
| Segment contribution margin |
|
|
$ |
14,098 |
|
|
|
$ |
15,234 |
|
|
|
29,332 |
| General and administrative expense |
|
|
|
|
|
|
|
|
|
|
3,258 |
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
3,947 |
| Loss on asset disposals |
|
|
|
|
|
|
|
|
|
|
9 |
| Operating income |
|
|
|
|
|
|
|
|
|
|
$ |
22,118 |
| Total Assets |
|
|
$ |
210,846 |
|
|
|
$ |
100,993 |
|
|
|
$ |
311,839 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital spending |
|
|
|
|
|
|
|
|
|
|
|
| Regulatory and maintenance capital spending |
|
|
$ |
1,187 |
|
|
|
$ |
1,758 |
|
|
|
$ |
2,945 |
| Discretionary capital spending |
|
|
928 |
|
|
|
500 |
|
|
|
1,428 |
| Total capital spending |
|
|
$ |
2,115 |
|
|
|
$ |
2,258 |
|
|
|
$ |
4,373 |
| |
| |
| |
|
|
Three Months Ended December 31, 2013 (1)
|
| |
|
|
Pipelines &
Transportation
|
|
|
Wholesale Marketing
& Terminalling
|
|
|
Consolidated |
| Affiliate |
|
|
$ |
16,096 |
|
|
|
$ |
7,231 |
|
|
|
$ |
23,327 |
| Third Party |
|
|
1,133 |
|
|
|
198,637 |
|
|
|
199,770 |
| Net sales |
|
|
$ |
17,229 |
|
|
|
$ |
205,868 |
|
|
|
$ |
223,097 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
764 |
|
|
|
196,552 |
|
|
|
197,316 |
| Operating expenses |
|
|
4,976 |
|
|
|
2,682 |
|
|
|
7,658 |
| Segment contribution margin |
|
|
$ |
11,489 |
|
|
|
$ |
6,634 |
|
|
|
18,123 |
| General and administrative expense |
|
|
|
|
|
|
|
|
|
|
1,830 |
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
3,772 |
| Loss on asset disposals |
|
|
|
|
|
|
|
|
|
|
166 |
| Operating income |
|
|
|
|
|
|
|
|
|
|
$ |
12,355 |
| Total assets |
|
|
195,984 |
|
|
|
105,360 |
|
|
|
$ |
301,344 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital spending |
|
|
|
|
|
|
|
|
|
|
|
| Regulatory and maintenance capital spending |
|
|
$ |
482 |
|
|
|
$ |
1,159 |
|
|
|
$ |
1,641 |
| Discretionary capital spending |
|
|
1,170 |
|
|
|
275 |
|
|
|
1,445 |
| Total capital spending (2) |
|
|
$ |
1,652 |
|
|
|
$ |
1,434 |
|
|
|
$ |
3,086 |
| |
|
(1) The information presented includes the results of operations of the El Dorado Predecessor. Prior to the El Dorado acquisition, the El Dorado Predecessor did not record revenues for intercompany terminalling and storage services.
|
|
(2) Capital spending includes expenditures of $1.3 million incurred in connection with the assets acquired in the El Dorado acquisitions.
|
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| (In thousands) |
| |
| |
|
|
Three Months Ended December 31, 2013 |
| |
|
|
Pipelines & Transportation |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor -
El Dorado Storage
Tank Assets
|
|
Three Months
Ended December
31, 2013
|
| Net Sales |
|
|
$ |
17,229 |
|
|
|
$ |
— |
|
|
$ |
17,229 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
764 |
|
|
|
— |
|
|
764 |
| Operating expenses |
|
|
4,710 |
|
|
|
266 |
|
|
4,976 |
| Segment contribution margin |
|
|
$ |
11,755 |
|
|
|
$ |
(266 |
) |
|
$ |
11,489 |
| |
|
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
665 |
|
|
|
$ |
987 |
|
|
$ |
1,652 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three Months Ended December 31, 2013 |
| |
|
|
Wholesale Marketing & Terminalling |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor -
El Dorado
Terminal Assets
|
|
Three Months
Ended December
31, 2013
|
| Net Sales |
|
|
$ |
205,868 |
|
|
|
$ |
— |
|
|
$ |
205,868 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
196,552 |
|
|
|
— |
|
|
196,552 |
| Operating expenses |
|
|
2,517 |
|
|
|
165 |
|
|
2,682 |
| Segment contribution margin |
|
|
$ |
6,799 |
|
|
|
$ |
(165 |
) |
|
$ |
6,634 |
| |
|
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
1,116 |
|
|
|
$ |
318 |
|
|
$ |
1,434 |
| |
| Delek Logistics Partners, LP |
| Segment Data (unaudited) |
| (In thousands) |
| |
| |
|
|
Year Ended December 31, 2014 (1) |
| |
|
|
Pipelines &
Transportation
|
|
|
Wholesale Marketing
& Terminalling
|
|
|
Consolidated |
| Affiliate |
|
|
$ |
80,683 |
|
|
|
$ |
33,900 |
|
|
|
$ |
114,583 |
| Third Party |
|
|
10,665 |
|
|
|
716,005 |
|
|
|
726,670 |
| Net sales |
|
|
$ |
91,348 |
|
|
|
$ |
749,905 |
|
|
|
$ |
841,253 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
4,294 |
|
|
|
692,927 |
|
|
|
697,221 |
| Operating expenses |
|
|
31,300 |
|
|
|
7,486 |
|
|
|
38,786 |
| Segment contribution margin |
|
|
$ |
55,754 |
|
|
|
$ |
49,492 |
|
|
|
105,246 |
| General and administrative expense |
|
|
|
|
|
|
|
|
|
|
10,616 |
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
14,705 |
| Loss on disposal of assets |
|
|
|
|
|
|
|
|
|
|
83 |
| Operating income |
|
|
|
|
|
|
|
|
|
|
$ |
79,842 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital spending |
|
|
|
|
|
|
|
|
|
|
|
| Regulatory and maintenance capital spending |
|
|
$ |
2,521 |
|
|
|
$ |
2,497 |
|
|
|
$ |
5,018 |
| Discretionary capital spending |
|
|
1,247 |
|
|
|
867 |
|
|
|
2,114 |
| Total capital spending (2) |
|
|
$ |
3,768 |
|
|
|
$ |
3,364 |
|
|
|
$ |
7,132 |
| |
|
(1) The information presented includes the results of operations of the El Dorado Predecessor. Prior to the El Dorado acquisition, the El Dorado Predecessor did not record revenues for intercompany terminalling and storage services.
|
|
(2) Capital spending includes expenditures of $0.2 million incurred in connection with the assets acquired in the El Dorado acquisition.
|
| |
|
|
|
| |
|
|
Year Ended December 31, 2013 (1) |
| |
|
|
Pipelines &
Transportation
|
|
|
Wholesale Marketing
& Terminalling
|
|
|
Consolidated |
| Affiliate |
|
|
$ |
51,878 |
|
|
|
$ |
26,295 |
|
|
|
$ |
78,173 |
| Third Party |
|
|
8,359 |
|
|
|
820,896 |
|
|
|
829,255 |
| Net sales |
|
|
$ |
60,237 |
|
|
|
$ |
847,191 |
|
|
|
$ |
907,428 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
764 |
|
|
|
810,600 |
|
|
|
811,364 |
| Operating expenses |
|
|
27,465 |
|
|
|
8,175 |
|
|
|
35,640 |
| Segment contribution margin |
|
|
$ |
32,008 |
|
|
|
$ |
28,416 |
|
|
|
60,424 |
| General and administrative expense |
|
|
|
|
|
|
|
|
|
|
7,526 |
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
13,738 |
| Loss on disposal of assets |
|
|
|
|
|
|
|
|
|
|
166 |
| Operating income |
|
|
|
|
|
|
|
|
|
|
$ |
38,994 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital spending |
|
|
|
|
|
|
|
|
|
|
|
| Regulatory and maintenance capital spending |
|
|
$ |
6,207 |
|
|
|
$ |
2,695 |
|
|
|
$ |
8,902 |
| Discretionary capital spending |
|
|
3,414 |
|
|
|
346 |
|
|
|
3,760 |
| Total capital spending (2) |
|
|
$ |
9,621 |
|
|
|
$ |
3,041 |
|
|
|
$ |
12,662 |
| |
|
(1)The information presented includes the results of operations of our Predecessors. Prior to the Tyler acquisition and the El Dorado acquisition, our Predecessors did not record revenues for intercompany terminalling and storage services.
|
|
(2) Capital spending includes expenditures of $7.5 million incurred in connection with the assets acquired in the Tyler and El Dorado acquisitions.
|
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| (In thousands) |
| |
| |
|
|
Year Ended December 31, 2014 |
| |
|
|
Pipelines & Transportation |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor - El
Dorado Storage Tank
Assets 1/1/2014 -
2/10/2014
|
|
|
Year Ended December
31, 2014
|
| Net Sales |
|
|
$ |
91,348 |
|
|
|
$ |
— |
|
|
|
$ |
91,348 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
4,294 |
|
|
|
— |
|
|
|
4,294 |
| Operating expenses |
|
|
30,619 |
|
|
|
681 |
|
|
|
31,300 |
| Segment contribution margin |
|
|
$ |
56,435 |
|
|
|
$ |
(681 |
) |
|
|
$ |
55,754 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
3,555 |
|
|
|
$ |
213 |
|
|
|
$ |
3,768 |
| |
|
|
|
| |
|
|
|
| |
|
|
Year Ended December 31, 2014 |
| |
|
|
Wholesale Marketing & Terminalling |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor - El
Dorado Terminal
Assets 1/1/2014 -
2/10/2014
|
|
|
Year Ended December
31, 2014
|
| Net Sales |
|
|
$ |
749,905 |
|
|
|
$ |
— |
|
|
|
$ |
749,905 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
692,927 |
|
|
|
— |
|
|
|
692,927 |
| Operating expenses |
|
|
7,384 |
|
|
|
102 |
|
|
|
7,486 |
| Segment contribution margin |
|
|
$ |
49,594 |
|
|
|
$ |
(102 |
) |
|
|
$ |
49,492 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
3,400 |
|
|
|
$ |
(36 |
) |
|
|
$ |
3,364 |
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| (In thousands) |
| |
| |
|
|
Year Ended December 31, 2013 |
| |
|
|
Pipelines & Transportation |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor -
Tyler Storage
Tank Assets
|
|
|
Predecessor -
El Dorado Storage
Tank Assets
|
|
|
Year Ended
December 31, 2013
|
| Net Sales |
|
|
$ |
60,237 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
60,237 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
764 |
|
|
|
— |
|
|
|
— |
|
|
|
764 |
| Operating expenses |
|
|
19,042 |
|
|
|
3,861 |
|
|
|
4,562 |
|
|
|
27,465 |
| Segment contribution margin |
|
|
$ |
40,431 |
|
|
|
$ |
(3,861 |
) |
|
|
$ |
(4,562 |
) |
|
|
$ |
32,008 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
2,658 |
|
|
|
$ |
4,247 |
|
|
|
$ |
2,716 |
|
|
|
$ |
9,621 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Year Ended December 31, 2013 |
| |
|
|
Wholesale Marketing & Terminalling |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor -
Tyler Terminal
Assets
|
|
|
Predecessor -
El Dorado
Terminal Assets
|
|
|
Year Ended
December 31, 2013
|
| Net Sales |
|
|
$ |
847,191 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
847,191 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
810,600 |
|
|
|
— |
|
|
|
— |
|
|
|
810,600 |
| Operating expenses |
|
|
6,759 |
|
|
|
640 |
|
|
|
776 |
|
|
|
8,175 |
| Segment contribution margin |
|
|
$ |
29,832 |
|
|
|
$ |
(640 |
) |
|
|
$ |
(776 |
) |
|
|
$ |
28,416 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
2,469 |
|
|
|
$ |
24 |
|
|
|
$ |
548 |
|
|
|
$ |
3,041 |
| |
|
|
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| |
|
|
|
|
|
|
| |
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
| Throughputs (average bpd) |
|
|
2014 |
|
|
2013 |
|
|
2014(1) |
|
|
2013 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Pipelines and Transportation Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
| Lion Pipeline System: |
|
|
|
|
|
|
|
|
|
|
|
|
| Crude pipelines (non-gathered) |
|
|
50,303 |
|
|
44,096 |
|
|
47,906 |
|
|
46,515 |
| Refined products pipelines to Enterprise Systems |
|
|
56,343 |
|
|
55,637 |
|
|
53,461 |
|
|
49,694 |
| SALA Gathering System |
|
|
23,949 |
|
|
21,904 |
|
|
22,656 |
|
|
22,152 |
| East Texas Crude Logistics System |
|
|
10,863 |
|
|
7,410 |
|
|
7,361 |
|
|
19,896 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Wholesale Marketing and Terminalling Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
| East Texas - Tyler Refinery sales volumes (average bpd) |
|
|
62,172 |
|
|
55,279 |
|
|
61,368 |
|
|
58,773 |
| West Texas marketing throughputs (average bpd) |
|
|
15,441 |
|
|
18,009 |
|
|
16,707 |
|
|
18,156 |
| West Texas marketing margin per barrel |
|
|
$ |
6.36 |
|
|
$ |
1.24 |
|
|
$ |
4.67 |
|
|
$ |
2.12 |
| Terminalling throughputs (average bpd) |
|
|
100,396 |
|
|
69,994 |
|
|
96,801 |
|
|
75,438 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The information presented excludes the throughput from operations of the El Dorado Predecessor.
|
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
El Dorado Terminal
and Tank Assets (1)
1/1/14-2/10/2014
|
|
|
Year Ended
December 31, 2014
|
| Throughputs (average bpd) |
|
|
|
|
|
El Dorado Predecessor |
|
|
|
| Pipelines and Transportation Segment: |
|
|
|
|
|
|
|
|
|
| Lion Pipeline System: |
|
|
|
|
|
|
|
|
|
| Crude pipelines (non-gathered) |
|
|
47,906 |
|
|
— |
|
|
47,906 |
| Refined products pipelines to Enterprise Systems |
|
|
53,461 |
|
|
— |
|
|
53,461 |
| SALA Gathering System |
|
|
22,656 |
|
|
— |
|
|
22,656 |
| East Texas Crude Logistics System |
|
|
7,361 |
|
|
— |
|
|
7,361 |
| |
|
|
|
|
|
|
|
|
|
| Wholesale Marketing and Terminalling Segment: |
|
|
|
|
|
|
|
|
|
| East Texas - Tyler Refinery sales volumes (average bpd) |
|
|
61,368 |
|
|
— |
|
|
61,368 |
| West Texas marketing throughputs (average bpd) |
|
|
16,707 |
|
|
— |
|
|
16,707 |
| West Texas marketing margin per barrel |
|
|
$ |
4.67 |
|
|
$ |
— |
|
|
$ |
4.67 |
| Terminalling throughputs (average bpd) |
|
|
96,801 |
|
|
7,298 |
|
|
96,519 |
| |
|
|
|
|
|
|
|
|
|
|
(1) The information presented includes the throughput from operations for the year ended December 31, 2014, disaggregated to present the results of the El Dorado Terminal and Tank Assets through February 10, 2014.
|
Source: Delek Logistics Partners, LP
U.S. Investor / Media Relations Contact
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