BRENTWOOD, Tenn.--(BUSINESS WIRE)--Nov. 3, 2015-- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the third quarter 2015. For the three months ended September 30, 2015, Delek Logistics reported net income attributable to all partners of $18.6 million, or $0.70 per diluted common limited partner unit. This compares to net income attributable to all partners of $15.1 million, or $0.59 per diluted common limited partner unit in the third quarter 2014. Distributable cash flow was $22.0 million in the third quarter 2015, compared to $17.7 million in the prior-year period.
Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics' general partner, remarked: “Our distributable cash flow increased by 24 percent on a year-over-year basis in the third quarter through the combination of acquisitions, increased contribution from the Paline Pipeline and improved performance in our east Texas assets that benefited from higher volumes from Delek US' Tyler refinery. Our third quarter 2015 distribution of $0.57 per unit is 16.3 percent higher than the third quarter 2014. We ended the quarter in a strong financial position with a distributable cash flow coverage ratio of 1.46 times and a 3.1 times leverage ratio with $372 million of availability on our credit facility."
Yemin concluded, "We continue to focus on using our financial position to create long term value for our unit holders. Our pipeline development projects through two joint ventures with unaffiliated third parties are on schedule to be completed in the second half of 2016 with approximately $31 million being invested through September 30. In addition, we continue to evaluate potential third party acquisition opportunities and options to partner with Delek US to provide future growth, and our balance sheet should allow us to be able to act quickly to take advantage of opportunities in the market."
Distribution and Liquidity
On October 27, 2015, Delek Logistics declared a quarterly cash distribution for the third quarter of $0.57 per limited partner unit, which equates to $2.28 per limited partner unit on an annualized basis. This distribution is payable on November 13, 2015 to unitholders of record on November 6, 2015. This represents a 3.6 percent increase from the second quarter 2015 distribution of $0.55 per limited partner unit, or $2.20 per limited partner unit on an annualized basis, and a 16.3 percent increase over Delek Logistics’ third quarter 2014 distribution of $0.49 per limited partner unit, or $1.96 per limited partner unit annualized. For the third quarter 2015, the total cash distribution declared to all partners, including IDRs, was $15.1 million.
As of September 30, 2015, Delek Logistics had total debt of $325.2 million. Availability under the $700.0 million credit facility was approximately $372.0 million.
Financial Results
Results in the third 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 with a reconciliation provided in the tables attached to this release.
Revenue for the third quarter 2015 was $165.1 million and contribution margin was $29.1 million, which compares to revenue of $228.0 million and a contribution margin of $23.7 million in the third quarter 2014. Total operating expenses were $11.6 million compared to $10.2 million in the third quarter 2014, with the increase primarily due to outside services and maintenance related expenses. General and administrative expenses were $2.7 million for the third quarter 2015 compared to $2.5 million in the prior-year period, which was primarily due to higher expenses related to assets acquired over the past year. For the third quarter 2015, EBITDA was $26.1 million compared to $21.2 million in the prior year period.
Pipelines and Transportation Segment
The Pipeline and Transportation segment's third quarter 2015 contribution margin of $20.4 million improved from $14.7 million in the third quarter 2014. This increase is primarily attributed to a higher contribution from the Paline Pipeline and fees associated with the El Dorado rail offloading racks and Tyler crude oil storage tank purchased on March 31, 2015.
Wholesale Marketing and Terminalling Segment
Contribution margin for the Wholesale Marketing and Terminalling segment was $8.7 million in the third quarter 2015, compared to $9.0 million in the third quarter 2014. This change on a year-over-year basis was primarily due to a lower gross margin per barrel in the west Texas wholesale business, partially offset by improved performance in the east Texas assets.
In the west Texas wholesale business, throughput was 18,824 barrels per day compared to 17,923 barrels per day in the third quarter 2014. The wholesale gross margin per barrel in west Texas decreased year over year to $1.50 and included approximately $1.0 million, or $0.57 per barrel from renewable identification numbers (RINs) generated in the quarter. Also, the third quarter 2015 gross margin was reduced by approximately $0.4 million, or $0.23 per barrel, related to lower of cost or market inventory expense and ethanol costs in the period. During the third quarter 2014, the wholesale gross margin per barrel was $2.20 and included $1.2 million from RINs, or $0.74 per barrel. On a year-over-year basis, reduced drilling activity in west Texas as a result of lower crude oil prices lowered demand in the area, creating a more challenging market environment and playing a role in the change in 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 126,051 barrels per day during the quarter increased on a year-over-year basis from 95,024 barrels per day in the third quarter 2014 primarily due to higher throughput at the Tyler and Big Sandy, Texas terminals. During the third quarter 2015, volume under the east Texas marketing agreement with Delek US was 75,313 barrels per day compared to 59,659 barrels per day during the third 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 has increased by $5.0 million to approximately $96.0 million and will be financed through a combination of cash from operations and borrowings under its revolving credit facility. Through September 30, 2015, approximately $31.0 million has been invested in these projects. Both of these projects are expected to be constructed by the second half of 2016.
Third Quarter 2015 Results | Conference Call Information
Delek Logistics will hold a conference call to discuss its third quarter 2015 results on November 4, 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 February 4, 2016 by dialing (855) 859-2056, passcode 55517449. 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) third quarter 2015 earnings conference call on November 4, 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 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 nine months ended September 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, 2015Delek 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
September 30,
|
|
|
Nine Months Ended
September 30,
|
| ($ in thousands) |
|
|
2015 |
|
|
2014(1) |
|
|
2015 (1) |
|
|
2014 (1) |
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
$ |
18,602 |
|
|
|
$ |
14,839 |
|
|
|
$ |
50,916 |
|
|
|
$ |
49,879 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
109 |
|
|
|
177 |
|
|
|
426 |
|
|
|
605 |
|
| Depreciation and amortization |
|
|
4,541 |
|
|
|
3,847 |
|
|
|
13,785 |
|
|
|
10,947 |
|
| Interest expense, net |
|
|
2,843 |
|
|
|
2,226 |
|
|
|
7,616 |
|
|
|
6,551 |
|
| EBITDA |
|
|
$ |
26,095 |
|
|
|
$ |
21,089 |
|
|
|
$ |
72,743 |
|
|
|
$ |
67,982 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
|
$ |
20,202 |
|
|
|
$ |
19,981 |
|
|
|
$ |
66,762 |
|
|
|
$ |
64,429 |
|
| Amortization of unfavorable contract liability to revenue |
|
|
— |
|
|
|
668 |
|
|
|
— |
|
|
|
2,002 |
|
| Amortization of deferred financing costs |
|
|
(365 |
) |
|
|
(317 |
) |
|
|
(1,095 |
) |
|
|
(951 |
) |
| Accretion of asset retirement obligations |
|
|
(63 |
) |
|
|
(58 |
) |
|
|
(187 |
) |
|
|
(267 |
) |
| Deferred taxes |
|
|
43 |
|
|
|
(29 |
) |
|
|
(23 |
) |
|
|
(81 |
) |
| Loss on equity method investments |
|
|
(293 |
) |
|
|
— |
|
|
|
(442 |
) |
|
|
— |
|
| Gain (loss) on asset disposals |
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
(74 |
) |
| Unit-based compensation expense |
|
|
(104 |
) |
|
|
(75 |
) |
|
|
(298 |
) |
|
|
(196 |
) |
| Changes in assets and liabilities |
|
|
3,723 |
|
|
|
(1,484 |
) |
|
|
(34 |
) |
|
|
(4,036 |
) |
| Income tax expense |
|
|
109 |
|
|
|
177 |
|
|
|
426 |
|
|
|
605 |
|
| Interest expense, net |
|
|
2,843 |
|
|
|
2,226 |
|
|
|
7,616 |
|
|
|
6,551 |
|
| EBITDA |
|
|
$ |
26,095 |
|
|
|
$ |
21,089 |
|
|
|
$ |
72,743 |
|
|
|
$ |
67,982 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
$ |
26,095 |
|
|
|
$ |
21,089 |
|
|
|
$ |
72,743 |
|
|
|
$ |
67,982 |
|
| Less: Cash interest, net |
|
|
2,478 |
|
|
|
1,909 |
|
|
|
6,521 |
|
|
|
5,600 |
|
| Less: Maintenance and regulatory capital expenditures |
|
|
3,531 |
|
|
|
477 |
|
|
|
10,775 |
|
|
|
2,074 |
|
| Less: Capital improvement expenditures |
|
|
— |
|
|
|
350 |
|
|
|
— |
|
|
|
686 |
|
| Add: Reimbursement from Delek for capital expenditures |
|
|
2,323 |
|
|
|
— |
|
|
|
4,926 |
|
|
|
— |
|
| Less: Loss on equity method investments |
|
|
293 |
|
|
|
— |
|
|
|
442 |
|
|
|
— |
|
| Less: Income tax expense |
|
|
109 |
|
|
|
177 |
|
|
|
426 |
|
|
|
605 |
|
| Add: Non-cash unit-based compensation expense |
|
|
104 |
|
|
|
75 |
|
|
|
298 |
|
|
|
196 |
|
| Less: Amortization of deferred revenue |
|
|
95 |
|
|
|
77 |
|
|
|
316 |
|
|
|
230 |
|
| Less: Amortization of unfavorable contract liability |
|
|
— |
|
|
|
668 |
|
|
|
— |
|
|
|
2,002 |
|
| Distributable cash flow |
|
|
$ |
22,016 |
|
|
|
$ |
17,506 |
|
|
|
$ |
59,487 |
|
|
|
$ |
56,981 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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. |
| |
|
| |
| Delek Logistics Partners, LP |
| Reconciliation of Amounts Reported Under U.S. GAAP |
| |
| ($ in thousands) |
|
|
Delek Logistics
Partners, LP
|
|
|
Logistics
Assets (1)
|
|
|
Nine Months
Ended
September 30,
2015
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Logistics Assets
Predecessor
|
|
|
|
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
$ |
51,553 |
|
|
|
$ |
(637 |
) |
|
|
$ |
50,916 |
|
| Add: |
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
426 |
|
|
|
— |
|
|
|
426 |
|
| Depreciation and amortization |
|
|
13,315 |
|
|
|
470 |
|
|
|
13,785 |
|
| Interest expense, net |
|
|
7,616 |
|
|
|
— |
|
|
|
7,616 |
|
| EBITDA |
|
|
$ |
72,910 |
|
|
|
$ |
(167 |
) |
|
|
$ |
72,743 |
|
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) operating activities |
|
|
$ |
66,929 |
|
|
|
$ |
(167 |
) |
|
|
$ |
66,762 |
|
| Amortization of deferred financing costs |
|
|
(1,095 |
) |
|
|
— |
|
|
|
(1,095 |
) |
| Accretion of asset retirement obligations |
|
|
(187 |
) |
|
|
— |
|
|
|
(187 |
) |
| Deferred taxes |
|
|
(23 |
) |
|
|
— |
|
|
|
(23 |
) |
| Loss on equity method investments |
|
|
(442 |
) |
|
|
— |
|
|
|
(442 |
) |
| Gain on asset disposals |
|
|
18 |
|
|
|
— |
|
|
|
18 |
|
| Unit-based compensation expense |
|
|
(298 |
) |
|
|
— |
|
|
|
(298 |
) |
| Changes in assets and liabilities |
|
|
(34 |
) |
|
|
— |
|
|
|
(34 |
) |
| Income tax expense |
|
|
426 |
|
|
|
— |
|
|
|
426 |
|
| Interest expense, net |
|
|
7,616 |
|
|
|
— |
|
|
|
7,616 |
|
| EBITDA |
|
|
$ |
72,910 |
|
|
|
$ |
(167 |
) |
|
|
$ |
72,743 |
|
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
$ |
72,910 |
|
|
|
$ |
(167 |
) |
|
|
$ |
72,743 |
|
| Less: Cash interest, net |
|
|
6,521 |
|
|
|
— |
|
|
|
6,521 |
|
| Less: Maintenance and regulatory capital expenditures |
|
|
10,775 |
|
|
|
— |
|
|
|
10,775 |
|
| Add: Reimbursement from Delek for capital expenditures |
|
|
4,926 |
|
|
|
— |
|
|
|
4,926 |
|
| Less: Loss on equity method investments |
|
|
442 |
|
|
|
— |
|
|
|
442 |
|
| Less: Income tax expense |
|
|
426 |
|
|
|
— |
|
|
|
426 |
|
| Add: Non-cash unit-based compensation expense |
|
|
298 |
|
|
|
— |
|
|
|
298 |
|
| Less: Amortization of deferred revenue |
|
|
316 |
|
|
|
— |
|
|
|
316 |
|
| Distributable cash flow |
|
|
$ |
59,654 |
|
|
|
$ |
(167 |
) |
|
|
$ |
59,487 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The information presented is for the nine months ended September 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 |
| Reconciliation of Amounts Reported Under U.S. GAAP |
| |
| |
|
|
Delek
Logistics
Partners, LP
|
|
|
Logistics
Assets (1)
|
|
|
Three Months
Ended
September 30,
2014
|
| |
|
|
|
|
|
|
|
|
|
| ($ in thousands) |
|
|
|
|
|
Logistics Assets
Predecessor
|
|
|
|
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
$ |
15,085 |
|
|
|
$ |
(246 |
) |
|
|
$ |
14,839 |
|
| Add: |
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
177 |
|
|
|
— |
|
|
|
177 |
|
| Depreciation and amortization |
|
|
3,749 |
|
|
|
98 |
|
|
|
3,847 |
|
| Interest expense, net |
|
|
2,226 |
|
|
|
— |
|
|
|
2,226 |
|
| EBITDA |
|
|
$ |
21,237 |
|
|
|
$ |
(148 |
) |
|
|
$ |
21,089 |
|
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) operating activities |
|
|
$ |
20,129 |
|
|
|
$ |
(148 |
) |
|
|
$ |
19,981 |
|
| Amortization of unfavorable contract liability to revenue |
|
|
668 |
|
|
|
— |
|
|
|
668 |
|
| Amortization of deferred financing costs |
|
|
(317 |
) |
|
|
— |
|
|
|
(317 |
) |
| Accretion of asset retirement obligations |
|
|
(58 |
) |
|
|
— |
|
|
|
(58 |
) |
| Deferred taxes |
|
|
(29 |
) |
|
|
— |
|
|
|
(29 |
) |
| Loss on asset disposals |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Unit-based compensation expense |
|
|
(75 |
) |
|
|
— |
|
|
|
(75 |
) |
| Changes in assets and liabilities |
|
|
(1,484 |
) |
|
|
— |
|
|
|
(1,484 |
) |
| Income tax expense |
|
|
177 |
|
|
|
— |
|
|
|
177 |
|
| Interest expense, net |
|
|
2,226 |
|
|
|
— |
|
|
|
2,226 |
|
| EBITDA |
|
|
$ |
21,237 |
|
|
|
$ |
(148 |
) |
|
|
$ |
21,089 |
|
| |
|
|
|
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
$ |
21,237 |
|
|
|
$ |
(148 |
) |
|
|
$ |
21,089 |
|
| Less: Cash interest, net |
|
|
1,909 |
|
|
|
— |
|
|
|
1,909 |
|
| Less: Maintenance and regulatory capital expenditures |
|
|
477 |
|
|
|
— |
|
|
|
477 |
|
| Less: Capital improvement expenditures |
|
|
350 |
|
|
|
— |
|
|
|
350 |
|
| Less: Income tax expense |
|
|
177 |
|
|
|
— |
|
|
|
177 |
|
| Add: Non-cash unit-based compensation expense |
|
|
75 |
|
|
|
— |
|
|
|
75 |
|
| Less: Amortization of deferred revenue |
|
|
77 |
|
|
|
— |
|
|
|
77 |
|
| Less: Amortization of unfavorable contract liability |
|
|
668 |
|
|
|
— |
|
|
|
668 |
|
| Distributable cash flow |
|
|
$ |
17,654 |
|
|
|
$ |
(148 |
) |
|
|
$ |
17,506 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The information presented is for the three months ended September 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)
|
|
|
Nine Months
Ended
September 30,
2014
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| ($ in thousands) |
|
|
|
|
|
Logistics Assets
Predecessor
|
|
|
El Dorado
Predecessor
|
|
|
|
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
$ |
51,511 |
|
|
|
$ |
(689 |
) |
|
|
$ |
(943 |
) |
|
|
$ |
49,879 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
605 |
|
|
|
— |
|
|
|
— |
|
|
|
605 |
|
| Depreciation and amortization |
|
|
10,644 |
|
|
|
189 |
|
|
|
114 |
|
|
|
10,947 |
|
| Interest expense, net |
|
|
6,551 |
|
|
|
— |
|
|
|
— |
|
|
|
6,551 |
|
| EBITDA |
|
|
$ |
69,311 |
|
|
|
$ |
(500 |
) |
|
|
$ |
(829 |
) |
|
|
$ |
67,982 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) operating activities |
|
|
$ |
65,758 |
|
|
|
$ |
(500 |
) |
|
|
$ |
(829 |
) |
|
|
$ |
64,429 |
|
| Amortization of unfavorable contract liability to revenue |
|
|
2,002 |
|
|
|
— |
|
|
|
— |
|
|
|
2,002 |
|
| Amortization of deferred financing costs |
|
|
(951 |
) |
|
|
— |
|
|
|
— |
|
|
|
(951 |
) |
| Accretion of asset retirement obligations |
|
|
(273 |
) |
|
|
— |
|
|
|
6 |
|
|
|
(267 |
) |
| Deferred taxes |
|
|
(81 |
) |
|
|
— |
|
|
|
— |
|
|
|
(81 |
) |
| Loss on asset disposals |
|
|
(74 |
) |
|
|
— |
|
|
|
— |
|
|
|
(74 |
) |
| Unit-based compensation expense |
|
|
(196 |
) |
|
|
— |
|
|
|
— |
|
|
|
(196 |
) |
| Changes in assets and liabilities |
|
|
(4,030 |
) |
|
|
— |
|
|
|
(6 |
) |
|
|
(4,036 |
) |
| Income tax expense |
|
|
605 |
|
|
|
— |
|
|
|
— |
|
|
|
605 |
|
| Interest expense, net |
|
|
6,551 |
|
|
|
— |
|
|
|
— |
|
|
|
6,551 |
|
| EBITDA |
|
|
$ |
69,311 |
|
|
|
$ |
(500 |
) |
|
|
$ |
(829 |
) |
|
|
$ |
67,982 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
$ |
69,311 |
|
|
|
$ |
(500 |
) |
|
|
$ |
(829 |
) |
|
|
$ |
67,982 |
|
| Less: Cash interest, net |
|
|
5,600 |
|
|
|
— |
|
|
|
— |
|
|
|
5,600 |
|
| Less: Maintenance and regulatory capital expenditures |
|
|
1,990 |
|
|
|
— |
|
|
|
84 |
|
|
|
2,074 |
|
| Less: Capital improvement expenditures |
|
|
593 |
|
|
|
— |
|
|
|
93 |
|
|
|
686 |
|
| Less: Income tax expense |
|
|
605 |
|
|
|
— |
|
|
|
— |
|
|
|
605 |
|
| Add: Non-cash unit-based compensation expense |
|
|
196 |
|
|
|
— |
|
|
|
— |
|
|
|
196 |
|
| Less: Amortization of deferred revenue |
|
|
230 |
|
|
|
— |
|
|
|
— |
|
|
|
230 |
|
| Less: Amortization of unfavorable contract liability |
|
|
2,002 |
|
|
|
— |
|
|
|
— |
|
|
|
2,002 |
|
| Distributable cash flow |
|
|
$ |
58,487 |
|
|
|
$ |
(500 |
) |
|
|
$ |
(1,006 |
) |
|
|
$ |
56,981 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The information presented is for the nine months ended September 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 nine months ended September 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) |
| |
| |
|
|
September 30, |
|
|
December 31, |
| |
|
|
2015 |
|
|
2014 (1) |
| |
|
|
|
|
|
|
| |
|
|
(In thousands) |
| ASSETS |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
$ |
— |
|
|
|
$ |
1,861 |
|
| Accounts receivable |
|
|
37,088 |
|
|
|
27,986 |
|
| Inventory |
|
|
5,018 |
|
|
|
10,316 |
|
| Deferred tax assets |
|
|
28 |
|
|
|
28 |
|
| Other current assets |
|
|
421 |
|
|
|
768 |
|
| Total current assets |
|
|
42,555 |
|
|
|
40,959 |
|
| Property, plant and equipment: |
|
|
|
|
|
|
| Property, plant and equipment |
|
|
321,394 |
|
|
|
308,088 |
|
| Less: accumulated depreciation |
|
|
(66,237 |
) |
|
|
(53,309 |
) |
| Property, plant and equipment, net |
|
|
255,157 |
|
|
|
254,779 |
|
| Equity method investments |
|
|
30,459 |
|
|
|
— |
|
| Goodwill |
|
|
11,654 |
|
|
|
11,654 |
|
| Intangible assets, net |
|
|
15,723 |
|
|
|
16,520 |
|
| Other non-current assets |
|
|
6,255 |
|
|
|
7,374 |
|
| Total assets |
|
|
$ |
361,803 |
|
|
|
$ |
331,286 |
|
| LIABILITIES AND EQUITY (DEFICIT) |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
| Accounts payable |
|
|
$ |
12,437 |
|
|
|
$ |
17,929 |
|
| Accounts payable to related parties |
|
|
9,559 |
|
|
|
628 |
|
| Excise and other taxes payable |
|
|
5,114 |
|
|
|
5,443 |
|
| Tank inspection liabilities |
|
|
2,541 |
|
|
|
2,829 |
|
| Pipeline release liabilities |
|
|
2,429 |
|
|
|
1,899 |
|
| Accrued expenses and other current liabilities |
|
|
2,249 |
|
|
|
1,588 |
|
| Total current liabilities |
|
|
34,329 |
|
|
|
30,316 |
|
| Non-current liabilities: |
|
|
|
|
|
|
| Revolving credit facility |
|
|
325,150 |
|
|
|
251,750 |
|
| Asset retirement obligations |
|
|
3,442 |
|
|
|
3,319 |
|
| Deferred tax liabilities |
|
|
254 |
|
|
|
231 |
|
| Other non-current liabilities |
|
|
10,286 |
|
|
|
5,889 |
|
| Total non-current liabilities |
|
|
339,132 |
|
|
|
261,189 |
|
| Equity (Deficit): |
|
|
|
|
|
|
| Predecessor division equity |
|
|
— |
|
|
|
19,726 |
|
| Common unitholders - public; 9,451,589 units issued and outstanding at September 30, 2015 (9,417,189 at December 31, 2014) |
|
|
198,527 |
|
|
|
194,737 |
|
| Common unitholders - Delek; 2,799,258 units issued and outstanding at September 30, 2015 (2,799,258 at December 31, 2014) |
|
|
(281,357 |
) |
|
|
(241,112 |
) |
| Subordinated unitholders - Delek; 11,999,258 units issued and outstanding at September 30, 2015 (11,999,258 at December 31, 2014) |
|
|
78,558 |
|
|
|
73,515 |
|
| General partner - Delek; 494,900 units issued and outstanding at September 30, 2015 (494,197 at December 31, 2014) |
|
|
(7,386 |
) |
|
|
(7,085 |
) |
| Total (deficit) equity |
|
|
(11,658 |
) |
|
|
39,781 |
|
| Total liabilities and (deficit) equity |
|
|
$ |
361,803 |
|
|
|
$ |
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
September 30,
|
|
|
Nine Months Ended
September 30,
|
| |
|
|
|
|
| |
|
|
2015 |
|
|
2014 (1) |
|
|
2015 (2) |
|
|
2014 (1) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
(In thousands, except unit and per unit data) |
| Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
| Affiliate |
|
|
$ |
41,824 |
|
|
|
$ |
29,682 |
|
|
|
$ |
113,975 |
|
|
|
$ |
83,855 |
|
| Third-Party |
|
|
123,268 |
|
|
|
198,354 |
|
|
|
366,763 |
|
|
|
584,051 |
|
| Net sales |
|
|
165,092 |
|
|
|
228,036 |
|
|
|
480,738 |
|
|
|
667,906 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
124,385 |
|
|
|
194,133 |
|
|
|
365,286 |
|
|
|
562,916 |
|
| Operating expenses |
|
|
11,616 |
|
|
|
10,361 |
|
|
|
33,191 |
|
|
|
29,576 |
|
| General and administrative expenses |
|
|
2,703 |
|
|
|
2,453 |
|
|
|
9,094 |
|
|
|
7,358 |
|
| Depreciation and amortization |
|
|
4,541 |
|
|
|
3,847 |
|
|
|
13,785 |
|
|
|
10,947 |
|
| (Gain) loss on asset disposals |
|
|
— |
|
|
|
— |
|
|
|
(18 |
) |
|
|
74 |
|
| Total operating costs and expenses |
|
|
143,245 |
|
|
|
210,794 |
|
|
|
421,338 |
|
|
|
610,871 |
|
| Operating income |
|
|
21,847 |
|
|
|
17,242 |
|
|
|
59,400 |
|
|
|
57,035 |
|
| Interest expense, net |
|
|
2,843 |
|
|
|
2,226 |
|
|
|
7,616 |
|
|
|
6,551 |
|
| Loss on equity method investments |
|
|
293 |
|
|
|
— |
|
|
|
442 |
|
|
|
— |
|
| Income before income tax expense |
|
|
18,711 |
|
|
|
15,016 |
|
|
|
51,342 |
|
|
|
50,484 |
|
| Income tax expense |
|
|
109 |
|
|
|
177 |
|
|
|
426 |
|
|
|
605 |
|
| Net income |
|
|
$ |
18,602 |
|
|
|
$ |
14,839 |
|
|
|
$ |
50,916 |
|
|
|
$ |
49,879 |
|
| Less: loss attributable to Predecessors |
|
|
— |
|
|
|
(246 |
) |
|
|
(637 |
) |
|
|
(1,632 |
) |
| Net income attributable to partners |
|
|
18,602 |
|
|
|
15,085 |
|
|
|
51,553 |
|
|
|
51,511 |
|
| Comprehensive income attributable to partners |
|
|
$ |
18,602 |
|
|
|
$ |
15,085 |
|
|
|
$ |
51,553 |
|
|
|
$ |
51,511 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Less: General partner's interest in net income, including incentive distribution rights |
|
|
1,383 |
|
|
|
598 |
|
|
|
3,379 |
|
|
|
1,511 |
|
| Limited partners' interest in net income |
|
|
$ |
17,219 |
|
|
|
$ |
14,487 |
|
|
|
$ |
48,174 |
|
|
|
$ |
50,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per limited partner unit: |
|
|
|
|
|
|
|
|
|
|
|
|
| Common units - (basic) |
|
|
$ |
0.71 |
|
|
|
$ |
0.60 |
|
|
|
$ |
1.99 |
|
|
|
$ |
2.07 |
|
| Common units - (diluted) |
|
|
$ |
0.70 |
|
|
|
$ |
0.59 |
|
|
|
$ |
1.97 |
|
|
|
$ |
2.05 |
|
| Subordinated units - Delek (basic and diluted) |
|
|
$ |
0.71 |
|
|
|
$ |
0.60 |
|
|
|
$ |
1.99 |
|
|
|
$ |
2.07 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average limited partner units outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
| Common units - basic |
|
|
12,250,847 |
|
|
|
12,183,847 |
|
|
|
12,230,560 |
|
|
|
12,165,474 |
|
| Common units - diluted |
|
|
12,369,777 |
|
|
|
12,327,321 |
|
|
|
12,362,340 |
|
|
|
12,299,963 |
|
| Subordinated units - Delek (basic and diluted) |
|
|
11,999,258 |
|
|
|
11,999,258 |
|
|
|
11,999,258 |
|
|
|
11,999,258 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash distribution per limited partner unit |
|
|
$ |
0.570 |
|
|
|
$ |
0.490 |
|
|
|
$ |
1.650 |
|
|
|
$ |
1.390 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 Logistics Assets Predecessor. 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)
|
|
|
Nine Months
Ended
September 30,
2015
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
El Dorado Assets
Predecessor
|
|
|
Tyler Assets
Predecessor
|
|
|
|
| |
|
|
(In thousands) |
| Net Sales |
|
|
$ |
480,738 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
480,738 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
365,286 |
|
|
|
— |
|
|
|
— |
|
|
|
365,286 |
|
| Operating expenses |
|
|
33,024 |
|
|
|
167 |
|
|
|
— |
|
|
|
33,191 |
|
| General and administrative expenses |
|
|
9,094 |
|
|
|
— |
|
|
|
— |
|
|
|
9,094 |
|
| Depreciation and amortization |
|
|
13,315 |
|
|
|
372 |
|
|
|
98 |
|
|
|
13,785 |
|
| Gain on asset disposals |
|
|
(18 |
) |
|
|
— |
|
|
|
— |
|
|
|
(18 |
) |
| Total operating costs and expenses |
|
|
420,701 |
|
|
|
539 |
|
|
|
98 |
|
|
|
421,338 |
|
| Operating income (loss) |
|
|
60,037 |
|
|
|
(539 |
) |
|
|
(98 |
) |
|
|
59,400 |
|
| Interest expense, net |
|
|
7,616 |
|
|
|
— |
|
|
|
— |
|
|
|
7,616 |
|
| Loss on equity method investments |
|
|
442 |
|
|
|
— |
|
|
|
— |
|
|
|
442 |
|
| Net income (loss) before income tax expense |
|
|
51,979 |
|
|
|
(539 |
) |
|
|
(98 |
) |
|
|
51,342 |
|
| Income tax expense |
|
|
426 |
|
|
|
— |
|
|
|
— |
|
|
|
426 |
|
| Net income (loss) |
|
|
$ |
51,553 |
|
|
|
$ |
(539 |
) |
|
|
$ |
(98 |
) |
|
|
$ |
50,916 |
|
| Less: loss attributable to Predecessors |
|
|
— |
|
|
|
(539 |
) |
|
|
(98 |
) |
|
|
(637 |
) |
| Net income attributable to partners |
|
|
$ |
51,553 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
51,553 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The information presented is for the nine months ended September 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
September 30,
2014
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
El Dorado Assets
Predecessor
|
|
|
Tyler Assets
Predecessor
|
|
|
|
| |
|
|
(In thousands) |
| Net Sales |
|
|
$ |
228,036 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
228,036 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
194,133 |
|
|
|
— |
|
|
|
— |
|
|
|
194,133 |
|
| Operating expenses |
|
|
10,213 |
|
|
|
148 |
|
|
|
— |
|
|
|
10,361 |
|
| General and administrative expenses |
|
|
2,453 |
|
|
|
— |
|
|
|
— |
|
|
|
2,453 |
|
| Depreciation and amortization |
|
|
3,749 |
|
|
|
98 |
|
|
|
— |
|
|
|
3,847 |
|
| Loss on asset disposals |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Total operating costs and expenses |
|
|
210,548 |
|
|
|
246 |
|
|
|
— |
|
|
|
210,794 |
|
| Operating income (loss) |
|
|
17,488 |
|
|
|
(246 |
) |
|
|
— |
|
|
|
17,242 |
|
| Interest expense, net |
|
|
2,226 |
|
|
|
— |
|
|
|
— |
|
|
|
2,226 |
|
| Net income (loss) before income tax expense |
|
|
15,262 |
|
|
|
(246 |
) |
|
|
— |
|
|
|
15,016 |
|
| Income tax expense |
|
|
177 |
|
|
|
— |
|
|
|
— |
|
|
|
177 |
|
| Net income (loss) |
|
|
$ |
15,085 |
|
|
|
$ |
(246 |
) |
|
|
$ |
— |
|
|
|
$ |
14,839 |
|
| Less: loss attributable to Predecessors |
|
|
— |
|
|
|
(246 |
) |
|
|
— |
|
|
|
(246 |
) |
| Net income attributable to partners |
|
|
$ |
15,085 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
15,085 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The information presented is for the three months ended September 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)
|
|
|
Nine Months
Ended
September 30,
2014
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
El Dorado Assets
Predecessor
|
|
|
Tyler
Predecessor
|
|
|
El Dorado
Predecessor
|
|
|
|
| |
|
|
(In thousands) |
| Net Sales |
|
|
$ |
667,906 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
667,906 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
562,916 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
562,916 |
|
| Operating expenses |
|
|
28,293 |
|
|
|
500 |
|
|
|
— |
|
|
|
783 |
|
|
|
29,576 |
|
| General and administrative expenses |
|
|
7,312 |
|
|
|
— |
|
|
|
— |
|
|
|
46 |
|
|
|
7,358 |
|
| Depreciation and amortization |
|
|
10,644 |
|
|
|
189 |
|
|
|
— |
|
|
|
114 |
|
|
|
10,947 |
|
| Loss on asset disposals |
|
|
74 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
74 |
|
| Total operating costs and expenses |
|
|
609,239 |
|
|
|
689 |
|
|
|
— |
|
|
|
943 |
|
|
|
610,871 |
|
| Operating income (loss) |
|
|
58,667 |
|
|
|
(689 |
) |
|
|
|
|
|
(943 |
) |
|
|
57,035 |
|
| Interest expense, net |
|
|
6,551 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,551 |
|
| Net income (loss) before income tax expense |
|
|
52,116 |
|
|
|
(689 |
) |
|
|
|
|
|
(943 |
) |
|
|
50,484 |
|
| Income tax expense |
|
|
605 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
605 |
|
| Net income (loss) |
|
|
$ |
51,511 |
|
|
|
$ |
(689 |
) |
|
|
$ |
— |
|
|
|
$ |
(943 |
) |
|
|
$ |
49,879 |
|
| Less: loss attributable to Predecessors |
|
|
— |
|
|
|
(689 |
) |
|
|
— |
|
|
|
(943 |
) |
|
|
(1,632 |
) |
| Net income attributable to partners |
|
|
$ |
51,511 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
51,511 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The information presented is for the nine months ended September 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) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
| |
|
|
|
|
|
|
|
|
2015 (1) |
|
|
|
|
2014 (2) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash Flow Data |
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
|
|
|
$ |
66,762 |
|
|
|
|
|
$ |
64,429 |
|
| Net cash used in investing activities |
|
|
|
|
(43,878 |
) |
|
|
|
|
(4,930 |
) |
| Net cash used in financing activities |
|
|
|
|
(24,745 |
) |
|
|
|
|
(59,690 |
) |
| |
Net decrease in cash and cash equivalents |
|
|
|
|
$ |
(1,861 |
) |
|
|
|
|
$ |
(191 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 September 30, 2015 |
| |
|
|
Pipelines &
Transportation
|
|
|
Wholesale Marketing
& Terminalling
|
|
|
Consolidated |
| Affiliate |
|
|
$ |
26,358 |
|
|
|
$ |
15,466 |
|
|
|
$ |
41,824 |
| Third-Party |
|
|
7,581 |
|
|
|
115,687 |
|
|
|
123,268 |
| Net sales |
|
|
33,939 |
|
|
|
131,153 |
|
|
|
165,092 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
5,211 |
|
|
|
119,174 |
|
|
|
124,385 |
| Operating expenses |
|
|
8,368 |
|
|
|
3,248 |
|
|
|
11,616 |
| Segment contribution margin |
|
|
$ |
20,360 |
|
|
|
$ |
8,731 |
|
|
|
29,091 |
| General and administrative expense |
|
|
|
|
|
|
|
|
2,703 |
| Depreciation and amortization |
|
|
|
|
|
|
|
|
4,541 |
| Operating income |
|
|
|
|
|
|
|
|
$ |
21,847 |
| Total Assets |
|
|
$ |
274,336 |
|
|
|
$ |
87,467 |
|
|
|
$ |
361,803 |
| |
|
|
|
|
|
|
|
|
|
| Capital spending |
|
|
|
|
|
|
|
|
|
| Regulatory and maintenance capital spending |
|
|
$ |
2,672 |
|
|
|
$ |
461 |
|
|
|
$ |
3,133 |
| Discretionary capital spending |
|
|
200 |
|
|
|
862 |
|
|
|
1,062 |
| Total capital spending |
|
|
$ |
2,872 |
|
|
|
$ |
1,323 |
|
|
|
$ |
4,195 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three Months Ended September 30, 2014 |
| |
|
|
Pipelines &
Transportation
|
|
|
Wholesale Marketing
& Terminalling
|
|
|
Consolidated (1) |
| Affiliate |
|
|
$ |
21,008 |
|
|
|
$ |
8,674 |
|
|
|
$ |
29,682 |
| Third-Party |
|
|
2,759 |
|
|
|
195,595 |
|
|
|
198,354 |
| Net sales |
|
|
23,767 |
|
|
|
204,269 |
|
|
|
228,036 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
1,011 |
|
|
|
193,122 |
|
|
|
194,133 |
| Operating expenses |
|
|
8,234 |
|
|
|
2,127 |
|
|
|
10,361 |
| Segment contribution margin |
|
|
$ |
14,522 |
|
|
|
$ |
9,020 |
|
|
|
23,542 |
| General and administrative expense |
|
|
|
|
|
|
|
|
2,453 |
| Depreciation and amortization |
|
|
|
|
|
|
|
|
3,847 |
| Operating income |
|
|
|
|
|
|
|
|
$ |
17,242 |
| Total assets |
|
|
$ |
241,380 |
|
|
|
$ |
74,393 |
|
|
|
$ |
315,773 |
| |
|
|
|
|
|
|
|
|
|
| Capital spending |
|
|
|
|
|
|
|
|
|
| Regulatory and maintenance capital spending |
|
|
$ |
245 |
|
|
|
$ |
114 |
|
|
|
$ |
359 |
| Discretionary capital spending |
|
|
163 |
|
|
|
209 |
|
|
|
372 |
| Total capital spending (2) |
|
|
$ |
408 |
|
|
|
$ |
323 |
|
|
|
$ |
731 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 ($0.1) million incurred in connection with the Logistics Assets Predecessor. |
| |
|
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| (In thousands) |
| |
| |
|
|
Three Months Ended September 30, 2014 |
| |
|
|
Pipelines & Transportation |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor -
Logistics Assets
|
|
|
Three Months
Ended
September 30,
2014
|
| Net Sales |
|
|
$ |
23,767 |
|
|
|
$ |
— |
|
|
|
$ |
23,767 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
1,011 |
|
|
|
— |
|
|
|
1,011 |
| Operating expenses |
|
|
8,086 |
|
|
|
148 |
|
|
|
8,234 |
| Segment contribution margin |
|
|
$ |
14,670 |
|
|
|
$ |
(148 |
) |
|
|
$ |
14,522 |
| |
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
505 |
|
|
|
$ |
(97 |
) |
|
|
$ |
408 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Three Months Ended September 30, 2014 |
| |
|
|
Wholesale Marketing & Terminalling |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor -
Logistics Assets
|
|
|
Three Months
Ended
September 30,
2014
|
| Net Sales |
|
|
$ |
204,269 |
|
|
|
$ |
— |
|
|
|
$ |
204,269 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
193,122 |
|
|
|
— |
|
|
|
193,122 |
| Operating expenses |
|
|
2,127 |
|
|
|
— |
|
|
|
2,127 |
| Segment contribution margin |
|
|
$ |
9,020 |
|
|
|
$ |
— |
|
|
|
$ |
9,020 |
| |
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
323 |
|
|
|
$ |
— |
|
|
|
$ |
323 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Delek Logistics Partners, LP |
| Segment Data (unaudited) |
| (In thousands) |
| |
| |
|
|
Nine Months Ended September 30, 2015 (1) |
| |
|
|
Pipelines &
Transportation
|
|
|
Wholesale Marketing
& Terminalling
|
|
|
Consolidated |
| Affiliate |
|
|
$ |
76,436 |
|
|
|
$ |
37,539 |
|
|
|
$ |
113,975 |
|
| Third-Party |
|
|
22,239 |
|
|
|
344,524 |
|
|
|
366,763 |
|
| Net sales |
|
|
$ |
98,675 |
|
|
|
$ |
382,063 |
|
|
|
$ |
480,738 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
15,126 |
|
|
|
350,160 |
|
|
|
365,286 |
|
| Operating expenses |
|
|
23,031 |
|
|
|
10,160 |
|
|
|
33,191 |
|
| Segment contribution margin |
|
|
$ |
60,518 |
|
|
|
$ |
21,743 |
|
|
|
82,261 |
|
| General and administrative expense |
|
|
|
|
|
|
|
|
9,094 |
|
| Depreciation and amortization |
|
|
|
|
|
|
|
|
13,785 |
|
| Gain on disposal of assets |
|
|
|
|
|
|
|
|
(18 |
) |
| Operating income |
|
|
|
|
|
|
|
|
$ |
59,400 |
|
| |
|
|
|
|
|
|
|
|
|
| Capital spending: |
|
|
|
|
|
|
|
|
|
| Regulatory and maintenance capital spending |
|
|
$ |
11,765 |
|
|
|
$ |
1,136 |
|
|
|
$ |
12,901 |
|
| Discretionary capital spending |
|
|
862 |
|
|
|
3,967 |
|
|
|
4,829 |
|
| Total capital spending |
|
|
$ |
12,627 |
|
|
|
$ |
5,103 |
|
|
|
$ |
17,730 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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. |
| |
|
|
|
| |
|
|
Nine Months Ended September 30, 2014 (1) |
| |
|
|
Pipelines &
Transportation
|
|
|
Wholesale Marketing
& Terminalling
|
|
|
Consolidated |
| Affiliate |
|
|
$ |
58,753 |
|
|
|
$ |
25,102 |
|
|
|
$ |
83,855 |
| Third-Party |
|
|
7,204 |
|
|
|
576,847 |
|
|
|
584,051 |
| Net sales |
|
|
$ |
65,957 |
|
|
|
$ |
601,949 |
|
|
|
$ |
667,906 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
3,267 |
|
|
|
559,649 |
|
|
|
562,916 |
| Operating expenses |
|
|
23,718 |
|
|
|
5,858 |
|
|
|
29,576 |
| Segment contribution margin |
|
|
$ |
38,972 |
|
|
|
$ |
36,442 |
|
|
|
75,414 |
| General and administrative expense |
|
|
|
|
|
|
|
|
7,358 |
| Depreciation and amortization |
|
|
|
|
|
|
|
|
10,947 |
| Loss on disposal of assets |
|
|
|
|
|
|
|
|
74 |
| Operating income |
|
|
|
|
|
|
|
|
$ |
57,035 |
| |
|
|
|
|
|
|
|
|
|
| Capital spending |
|
|
|
|
|
|
|
|
|
| Regulatory and maintenance capital spending |
|
|
$ |
3,413 |
|
|
|
$ |
739 |
|
|
|
$ |
4,152 |
| Discretionary capital spending |
|
|
411 |
|
|
|
367 |
|
|
|
778 |
| Total capital spending (2) |
|
|
$ |
3,824 |
|
|
|
$ |
1,106 |
|
|
|
$ |
4,930 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 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 assets predecessor. |
| |
|
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| (In thousands) |
| |
| |
|
|
Nine Months Ended September 30, 2015 |
| |
|
|
Pipelines & Transportation |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor -
Logistics Assets
|
|
Nine Months
Ended
September 30,
2015
|
| Net Sales |
|
|
$ |
98,675 |
|
|
|
$ |
— |
|
|
$ |
98,675 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
15,126 |
|
|
|
— |
|
|
15,126 |
| Operating expenses |
|
|
22,864 |
|
|
|
167 |
|
|
23,031 |
| Segment contribution margin |
|
|
$ |
60,685 |
|
|
|
$ |
(167 |
) |
|
$ |
60,518 |
| |
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
12,679 |
|
|
|
$ |
(52 |
) |
|
$ |
12,627 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Nine Months Ended September 30, 2015 |
| |
|
|
Wholesale Marketing & Terminalling |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor -
Logistics Assets
|
|
|
Nine Months
Ended
September 30,
2015
|
| Net Sales |
|
|
$ |
382,063 |
|
|
|
$ |
— |
|
|
|
$ |
382,063 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
350,160 |
|
|
|
— |
|
|
|
350,160 |
| Operating expenses |
|
|
10,160 |
|
|
|
— |
|
|
|
10,160 |
| Segment contribution margin |
|
|
$ |
21,743 |
|
|
|
$ |
— |
|
|
|
$ |
21,743 |
| |
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
5,103 |
|
|
|
$ |
— |
|
|
|
$ |
5,103 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| (In thousands) |
| |
| |
|
|
Nine Months Ended September 30, 2014 |
| |
|
|
Pipelines & Transportation |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor -
Logistics Assets
|
|
|
Predecessor -
El Dorado
Storage Tank
Assets
|
|
|
Nine Months
Ended
September 30,
2014
|
| Net Sales |
|
|
$ |
65,957 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
65,957 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
3,267 |
|
|
|
— |
|
|
|
— |
|
|
|
3,267 |
| Operating expenses |
|
|
22,537 |
|
|
|
500 |
|
|
|
681 |
|
|
|
23,718 |
| Segment contribution margin |
|
|
$ |
40,153 |
|
|
|
$ |
(500 |
) |
|
|
$ |
(681 |
) |
|
|
$ |
38,972 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
1,441 |
|
|
|
$ |
2,170 |
|
|
|
$ |
213 |
|
|
|
$ |
3,824 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Nine Months Ended September 30, 2014 |
| |
|
|
Wholesale Marketing & Terminalling |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor -
Logistics Assets
|
|
|
Predecessor -
El Dorado
Terminal Assets
|
|
|
Nine Months
Ended
September 30,
2014
|
| Net Sales |
|
|
$ |
601,949 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
601,949 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
559,649 |
|
|
|
— |
|
|
|
— |
|
|
|
559,649 |
| Operating expenses |
|
|
5,756 |
|
|
|
— |
|
|
|
102 |
|
|
|
5,858 |
| Segment contribution margin |
|
|
$ |
36,544 |
|
|
|
$ |
— |
|
|
|
$ |
(102 |
) |
|
|
$ |
36,442 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
1,142 |
|
|
|
$ |
— |
|
|
|
$ |
(36 |
) |
|
|
$ |
1,106 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| |
|
|
|
|
| |
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
| Throughputs (average bpd) |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
| |
|
|
|
|
|
|
|
|
| Pipelines and Transportation Segment: |
|
|
|
|
|
|
|
|
| Lion Pipeline System: |
|
|
|
|
|
|
|
|
| Crude pipelines (non-gathered) |
|
54,973 |
|
|
57,254 |
|
|
55,168 |
|
|
47,098 |
| Refined products pipelines to Enterprise Systems |
|
54,397 |
|
|
65,439 |
|
|
56,294 |
|
|
52,490 |
| SALA Gathering System |
|
20,264 |
|
|
22,258 |
|
|
21,031 |
|
|
22,221 |
| East Texas Crude Logistics System |
|
19,078 |
|
|
4,361 |
|
|
22,270 |
|
|
6,181 |
| El Dorado Rail Offloading Rack |
|
— |
|
|
— |
|
|
1,474 |
|
|
— |
| |
|
|
|
|
|
|
|
|
| Wholesale Marketing and Terminalling Segment: |
|
|
|
|
|
|
|
|
| East Texas - Tyler Refinery sales volumes (average bpd) |
|
75,313 |
|
|
59,659 |
|
|
56,553 |
|
|
61,097 |
| West Texas marketing throughputs (average bpd) |
|
18,824 |
|
|
17,923 |
|
|
17,661 |
|
|
17,132 |
| West Texas marketing margin per barrel |
|
$ |
1.50 |
|
|
$ |
2.20 |
|
|
$ |
1.41 |
|
|
$ |
4.09 |
| Terminalling throughputs (average bpd) |
|
126,051 |
|
|
95,024 |
|
|
102,534 |
|
|
94,656 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| |
| |
|
|
Delek
Logistics
Partners, LP
|
|
|
Predecessor -
Logistics Assets
|
|
|
Nine Months
Ended
September 30,
2015
|
| Throughputs (average bpd) |
|
|
|
|
|
|
|
|
|
| Pipelines and Transportation Segment: |
|
|
|
|
|
|
|
|
|
| Lion Pipeline System: |
|
|
|
|
|
|
|
|
|
| Crude pipelines (non-gathered) |
|
|
55,168 |
|
|
|
— |
|
|
|
55,168 |
| Refined products pipelines to Enterprise Systems |
|
|
56,294 |
|
|
|
— |
|
|
|
56,294 |
| SALA Gathering System |
|
|
21,031 |
|
|
|
— |
|
|
|
21,031 |
| East Texas Crude Logistics System |
|
|
22,270 |
|
|
|
— |
|
|
|
22,270 |
| El Dorado Rail Offloading Rack |
|
|
1,474 |
|
|
|
5,151 |
|
|
|
2,686 |
| |
|
|
|
|
|
|
|
|
|
| Wholesale Marketing and Terminalling Segment: |
|
|
|
|
|
|
|
|
|
| East Texas - Tyler Refinery sales volumes (average bpd) |
|
|
56,553 |
|
|
|
— |
|
|
|
56,553 |
| West Texas marketing throughputs (average bpd) |
|
|
17,661 |
|
|
|
— |
|
|
|
17,661 |
| West Texas marketing margin per barrel |
|
|
$ |
1.41 |
|
|
|
$ |
— |
|
|
|
$ |
1.41 |
| Terminalling throughputs (average bpd) |
|
|
102,534 |
|
|
|
— |
|
|
|
102,534 |
| |
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151103006944/en/
Source: Delek Logistics Partners, LP
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