BRENTWOOD, Tenn.--(BUSINESS WIRE)--Feb. 25, 2016-- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the fourth quarter 2015. For the three months ended December 31, 2015, Delek Logistics reported net income attributable to all partners of $15.3 million, or $0.55 per diluted common limited partner unit. This compares to net income attributable to all partners of $20.5 million, or $0.80 per diluted common limited partner unit, in the fourth quarter 2014. Distributable cash flow was $18.9 million in the fourth quarter 2015, compared to $21.8 million in the prior-year period.
Results in the fourth quarter 2015 declined on a year-over-year basis primarily due to lower performance in the west Texas wholesale business, which was partially offset by better performance in the Pipelines and Transportation segment. The gross margin per barrel in west Texas was $1.05 in the fourth quarter 2015 compared to $6.36 per barrel in the fourth quarter 2014. This decline was due to more challenging market conditions and a reduction of approximately $1.0 million, or $0.90 per barrel, due to a change in inventory values, including lower of cost or market, as a result of a decline in prices during the quarter. Excluding this effect, the gross margin per barrel would have been approximately $1.95 per barrel, compared to the reported $1.05 per barrel. This inventory effect lowered distributable cash flow for the period.
For 2015, net income attributable to all partners was $66.8 million, or $2.52 per diluted common limited partner unit. This compares to net income attributable to all partners of $72.0 million, or $2.85 per diluted common limited partner unit for 2014. Distributable cash flow was $81.3 million in 2015 compared to $80.3 million in 2014, while earnings before interest, taxes, depreciation and amortization ("EBITDA") was $96.5 million in 2015, compared to $95.4 million in 2014.
Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics' general partner, remarked: "Our business model is anchored by stable fee based contracts, which served us well during a year in which uncertainty and volatility in energy markets created a challenging environment for our industry. For 2015, our EBITDA and distributable cash flow improved compared to 2014, which supported an increase in our declared distributions per limited partner unit for 2015 to $2.24 from $1.90 for 2014. We ended the year with a 3.5 times leverage ratio and $347 million of capacity on our credit facility."
Yemin concluded, "Our pipeline development projects through two joint ventures with unaffiliated third parties are moving toward completion in the second half of 2016. In addition, we continue to evaluate potential third party acquisition opportunities and options to partner with Delek US to provide future growth. With a focus on creating long term value for our unit holders, we believe that our balance sheet should allow the flexibility to take advantage of opportunities, while targeting growth in our distribution per limited partner unit by 15 percent for 2016."
Distribution and Liquidity
On January 25, 2016, Delek Logistics declared a quarterly cash distribution for the fourth quarter of $0.59 per limited partner unit, which equates to $2.36 per limited partner unit on an annualized basis. This distribution was paid on February 12, 2016 to unitholders of record on February 5, 2016. This represents a 3.5 percent increase from the third quarter 2015 distribution of $0.57 per limited partner unit, or $2.28 per limited partner unit on an annualized basis, and a 15.7 percent increase over Delek Logistics’ fourth quarter 2014 distribution of $0.51 per limited partner unit, or $2.04 per limited partner unit annualized. For the fourth quarter 2015, the total cash distribution declared to all partners, including IDRs, was $16.1 million. For 2015 the total cash distribution declared to all partners, including IDRs, was $59.3 million.
As of December 31, 2015, Delek Logistics had total debt of $351.6 million. Additional borrowing capacity, subject to certain covenants, under the $700.0 million credit facility was approximately $346.9 million.
Financial Results
Results in the fourth 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, from subsidiaries of Delek US Holdings, Inc. ("Delek US"). 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 fourth quarter 2015 was $108.9 million and contribution margin was $26.2 million, which compares to revenue of $173.3 million and a contribution margin of $29.3 million in the fourth quarter 2014. The decrease in contribution margin is primarily due to lower performance in the west Texas wholesale business, which was partially offset by improved performance in the Pipelines and Transportation segment. Total operating expenses were $11.7 million compared to $9.7 million in the fourth quarter 2014, with the increase primarily due to maintenance related expenses. General and administrative expenses decreased to $2.3 million for the fourth quarter 2015 compared to $3.3 million in the prior-year period, which was primarily due to lower professional services expenses on a year-over-year basis. For the fourth quarter 2015, EBITDA was $23.6 million compared to $26.1 million in the prior-year period.
Pipelines and Transportation Segment
The Pipelines and Transportation segment's fourth quarter 2015 contribution margin of $17.5 million improved from $14.1 million in the fourth 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 fourth quarter 2015, compared to $15.2 million in the fourth quarter 2014. This change on a year-over-year basis was primarily due to a lower gross margin per barrel and lower volume sold in the west Texas wholesale business, which was partially offset by improved performance in the east Texas assets.
In the west Texas wholesale business, throughput was 12,488 barrels per day compared to 15,441 barrels per day in the fourth quarter 2014. The wholesale gross margin per barrel in west Texas decreased year-over-year to $1.05 and included approximately $0.9 million, or $0.79 per barrel from renewable identification numbers (RINs) generated in the quarter. Also, the fourth quarter 2015 gross margin was reduced by approximately $1.0 million, or $0.90 per barrel, due to a reduction in inventory values, including lower of cost or market, as a result of a decline in prices during the fourth quarter 2015. During the fourth quarter 2014, the wholesale gross margin per barrel was $6.36 and included $1.2 million from RINs, or $0.82 per barrel. The fourth quarter 2014 gross margin per barrel benefited as the local market sales price in west Texas did not decline as quickly as the Gulf Coast light product prices, thereby expanding the margin 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 and volume sold.
Both terminalling and the east Texas marketing throughputs benefited from higher volume at Delek US'Tyler, Texas refinery. Terminalling throughput volume of 114,136 barrels per day during the quarter increased on a year-over-year basis from 100,396 barrels per day in the fourth quarter 2014 primarily due to higher throughput at the Tyler and Big Sandy, Texas terminals. During the fourth quarter 2015, volume under the east Texas marketing agreement with Delek US was 66,950 barrels per day compared to 62,172 barrels per day during the fourth quarter 2014.
Project Development Update
In March 2015, Delek Logistics, through wholly owned subsidiaries, entered into two joint ventures (Caddo Pipeline and RIO Pipeline) that will construct logistics assets. Delek Logistics’ total projected investment for the two joint ventures is approximately $96.0 million and will be financed through a combination of cash from operations and borrowings under its revolving credit facility. Through December 31, 2015, approximately $41.3 million has been invested in these projects. Both of these projects are expected to be constructed by the second half of 2016.
Fourth Quarter 2015 Results | Conference Call Information
Delek Logistics will hold a conference call to discuss its fourth quarter 2015 results on Friday, February 26, 2016 at 7:00 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekLogistics.com. Participants are encouraged to register at least 15 minutes early to download and install any necessary software. For those who cannot listen to the live broadcast, a telephonic replay will be available through May 26, 2016 by dialing (855) 859-2056, passcode 28236906. 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 2015 earnings conference call on Friday, February 26, 2016 at 8:00 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 year ended December 31, 2015 and 2014. On February 10, 2014, Delek Logistics acquired substantially all of the active storage tanks and product terminal located adjacent to Delek US' El Dorado refinery (the "El Dorado Assets"). On March 31, 2015, Delek Logistics acquired the Tyler crude oil storage tank and the El Dorado rail offloading facility (the "Logistics Assets") from Delek US. These assets were accounted for as transfers between entities under common control. Accordingly, the accompanying financial statements of the Partnership have been retrospectively adjusted to include the historical results of these assets. For all periods presented through February 10, 2014, the acquisition date of the El Dorado Assets, and March 31, 2015, the acquisition date of the Logistics Assets, the retrospective adjustments were made to the financial statements. The historical results of the El Dorado Assets and Logistics Assets, prior to the acquisition dates, are referred to as the "El Dorado Assets 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 in isolation or 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. 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.
We also include the results of our operations excluding the results of our Predecessors. We believe that the presentation of our results of operations excluding results of our Predecessors will provide useful information to investors in assessing our results of operations by allowing them to analyze operations of our business under our current commercial agreements with Delek US.
| |
| Delek Logistics Partners, LP |
| Reconciliation of Amounts Reported Under U.S. GAAP |
| |
| |
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
| ($ in thousands) |
|
2015 |
|
2014(1)
|
|
2015 (1) |
|
2014 (1) |
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
|
|
| Net income |
|
$ |
15,295 |
|
|
$ |
20,179 |
|
|
$ |
66,211 |
|
|
$ |
70,058 |
|
| Add: |
|
|
|
|
|
|
|
|
| Income tax (benefit) expense |
|
(621 |
) |
|
(473 |
) |
|
(195 |
) |
|
132 |
|
| Depreciation and amortization |
|
5,907 |
|
|
4,075 |
|
|
19,692 |
|
|
15,022 |
|
| Interest expense, net |
|
3,042 |
|
|
2,105 |
|
|
10,658 |
|
|
8,656 |
|
| EBITDA |
|
$ |
23,623 |
|
|
$ |
25,886 |
|
|
$ |
96,366 |
|
|
$ |
93,868 |
|
| |
|
|
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash from operating activities: |
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
$ |
1,262 |
|
|
$ |
20,655 |
|
|
$ |
68,024 |
|
|
$ |
85,084 |
|
| Amortization of unfavorable contract liability to revenue |
|
— |
|
|
668 |
|
|
— |
|
|
2,670 |
|
| Amortization of deferred revenue |
|
260 |
|
|
77 |
|
|
596 |
|
|
307 |
|
| Amortization of deferred financing costs |
|
(365 |
) |
|
(316 |
) |
|
(1,460 |
) |
|
(1,267 |
) |
| Accretion of asset retirement obligations |
|
(64 |
) |
|
35 |
|
|
(251 |
) |
|
(232 |
) |
| Deferred income taxes |
|
9 |
|
|
190 |
|
|
(14 |
) |
|
109 |
|
| Loss on equity method investments |
|
(146 |
) |
|
— |
|
|
(588 |
) |
|
— |
|
| Loss on asset disposals |
|
(122 |
) |
|
(9 |
) |
|
(104 |
) |
|
(83 |
) |
| Unit-based compensation expense |
|
(108 |
) |
|
(78 |
) |
|
(406 |
) |
|
(274 |
) |
| Changes in assets and liabilities |
|
20,476 |
|
|
3,032 |
|
|
20,106 |
|
|
(1,234 |
) |
| Income tax (benefit) expense |
|
(621 |
) |
|
(473 |
) |
|
(195 |
) |
|
132 |
|
| Interest expense, net |
|
3,042 |
|
|
2,105 |
|
|
10,658 |
|
|
8,656 |
|
| EBITDA |
|
$ |
23,623 |
|
|
$ |
25,886 |
|
|
$ |
96,366 |
|
|
$ |
93,868 |
|
| |
|
|
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
|
|
| EBITDA |
|
$ |
23,623 |
|
|
$ |
25,886 |
|
|
$ |
96,366 |
|
|
$ |
93,868 |
|
| Less: Cash interest, net |
|
2,677 |
|
|
1,789 |
|
|
9,198 |
|
|
7,389 |
|
| Less: Maintenance capital expenditures |
|
2,674 |
|
|
3,882 |
|
|
11,841 |
|
|
6,642 |
|
| Add: Reimbursement from Delek for capital expenditures |
|
14 |
|
|
1,578 |
|
|
5,220 |
|
|
1,578 |
|
| Less: Loss on equity method investments |
|
(146 |
) |
|
— |
|
|
(588 |
) |
|
— |
|
| Less: Income tax (benefit) expense |
|
(621 |
) |
|
(473 |
) |
|
(195 |
) |
|
132 |
|
| Add: Non-cash unit-based compensation expense |
|
108 |
|
|
78 |
|
|
406 |
|
|
274 |
|
| Less: Amortization of deferred revenue |
|
260 |
|
|
77 |
|
|
596 |
|
|
307 |
|
| Less: Amortization of unfavorable contract liability |
|
— |
|
|
668 |
|
|
— |
|
|
2,670 |
|
| Distributable cash flow |
|
$ |
18,901 |
|
|
$ |
21,599 |
|
|
$ |
81,140 |
|
|
$ |
78,580 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) |
|
Year Ended
December 31, 2015
|
| |
|
|
|
Logistics Assets
Predecessor
|
|
|
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
| Net income (loss) |
|
$ |
66,848 |
|
|
$ |
(637 |
) |
|
$ |
66,211 |
|
| Add: |
|
|
|
|
|
|
| Income tax benefit |
|
(195 |
) |
|
— |
|
|
(195 |
) |
| Depreciation and amortization |
|
19,222 |
|
|
470 |
|
|
19,692 |
|
| Interest expense, net |
|
10,658 |
|
|
— |
|
|
10,658 |
|
| EBITDA |
|
$ |
96,533 |
|
|
$ |
(167 |
) |
|
$ |
96,366 |
|
| |
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash from operating activities: |
|
|
|
|
|
|
| Net cash provided by (used in) operating activities |
|
$ |
68,191 |
|
|
$ |
(167 |
) |
|
$ |
68,024 |
|
| Amortization of deferred revenue |
|
596 |
|
|
— |
|
|
596 |
|
| Amortization of deferred financing costs |
|
(1,460 |
) |
|
— |
|
|
(1,460 |
) |
| Accretion of asset retirement obligations |
|
(251 |
) |
|
— |
|
|
(251 |
) |
| Deferred income taxes |
|
(14 |
) |
|
— |
|
|
(14 |
) |
| Loss on equity method investments |
|
(588 |
) |
|
— |
|
|
(588 |
) |
| Loss on asset disposals |
|
(104 |
) |
|
— |
|
|
(104 |
) |
| Unit-based compensation expense |
|
(406 |
) |
|
— |
|
|
(406 |
) |
| Changes in assets and liabilities |
|
20,106 |
|
|
— |
|
|
20,106 |
|
| Income tax expense |
|
(195 |
) |
|
— |
|
|
(195 |
) |
| Interest expense, net |
|
10,658 |
|
|
— |
|
|
10,658 |
|
| EBITDA |
|
$ |
96,533 |
|
|
$ |
(167 |
) |
|
$ |
96,366 |
|
| |
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
| EBITDA |
|
$ |
96,533 |
|
|
$ |
(167 |
) |
|
$ |
96,366 |
|
| Less: Cash interest, net |
|
9,198 |
|
|
— |
|
|
9,198 |
|
| Less: Maintenance capital expenditures |
|
11,841 |
|
|
— |
|
|
11,841 |
|
| Add: Reimbursement from Delek for capital expenditures |
|
5,220 |
|
|
— |
|
|
5,220 |
|
| Less: Loss on equity method investments |
|
(588 |
) |
|
— |
|
|
(588 |
) |
| Less: Income tax benefit |
|
(195 |
) |
|
— |
|
|
(195 |
) |
| Add: Non-cash unit-based compensation expense |
|
406 |
|
|
— |
|
|
406 |
|
| Less: Amortization of deferred revenue |
|
596 |
|
|
— |
|
|
596 |
|
| Distributable cash flow |
|
$ |
81,307 |
|
|
$ |
(167 |
) |
|
$ |
81,140 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The information presented is for the year ended December 31, 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
December 31, 2014
|
| ($ in thousands) |
|
|
|
Logistics Assets
Predecessor
|
|
|
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
| Net income (loss) |
|
$ |
20,486 |
|
|
$ |
(307 |
) |
|
$ |
20,179 |
|
| Add: |
|
|
|
|
|
|
| Income tax benefit |
|
(473 |
) |
|
— |
|
|
(473 |
) |
| Depreciation and amortization |
|
3,947 |
|
|
128 |
|
|
4,075 |
|
| Interest expense, net |
|
2,105 |
|
|
— |
|
|
2,105 |
|
| EBITDA |
|
$ |
26,065 |
|
|
$ |
(179 |
) |
|
$ |
25,886 |
|
| |
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash from operating activities: |
|
|
|
|
|
|
| Net cash provided by (used in) operating activities |
|
$ |
20,834 |
|
|
$ |
(179 |
) |
|
$ |
20,655 |
|
| Amortization of unfavorable contract liability to revenue |
|
668 |
|
|
— |
|
|
668 |
|
| Amortization of deferred financing costs |
|
(316 |
) |
|
— |
|
|
(316 |
) |
| Amortization of deferred revenue |
|
77 |
|
|
— |
|
|
77 |
|
| Accretion of asset retirement obligations |
|
35 |
|
|
— |
|
|
35 |
|
| Deferred income taxes |
|
190 |
|
|
— |
|
|
190 |
|
| Loss on asset disposals |
|
(9 |
) |
|
— |
|
|
(9 |
) |
| Unit-based compensation expense |
|
(78 |
) |
|
— |
|
|
(78 |
) |
| Changes in assets and liabilities |
|
3,032 |
|
|
— |
|
|
3,032 |
|
| Income tax benefit |
|
(473 |
) |
|
— |
|
|
(473 |
) |
| Interest expense, net |
|
2,105 |
|
|
— |
|
|
2,105 |
|
| EBITDA |
|
$ |
26,065 |
|
|
$ |
(179 |
) |
|
$ |
25,886 |
|
| |
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
| EBITDA |
|
$ |
26,065 |
|
|
$ |
(179 |
) |
|
$ |
25,886 |
|
| Less: Cash interest, net |
|
1,789 |
|
|
— |
|
|
1,789 |
|
| Less: Maintenance capital expenditures |
|
3,882 |
|
|
— |
|
|
3,882 |
|
| Add: Reimbursement from Delek for capital expenditures |
|
1,578 |
|
|
— |
|
|
1,578 |
|
| Less: Income tax benefit |
|
(473 |
) |
|
— |
|
|
(473 |
) |
| Add: Non-cash unit-based compensation expense |
|
78 |
|
|
— |
|
|
78 |
|
| Less: Amortization of deferred revenue |
|
77 |
|
|
— |
|
|
77 |
|
| Less: Amortization of unfavorable contract liability |
|
668 |
|
|
— |
|
|
668 |
|
| Distributable cash flow |
|
$ |
21,778 |
|
|
$ |
(179 |
) |
|
$ |
21,599 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The information presented is for the three months ended December 31, 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)
|
|
Year Ended
December 31, 2014
|
| ($ in thousands) |
|
|
|
Logistics Assets
Predecessor
|
|
El Dorado
Predecessor
|
|
|
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
71,997 |
|
|
$ |
(996 |
) |
|
$ |
(943 |
) |
|
$ |
70,058 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
132 |
|
|
— |
|
|
— |
|
|
132 |
|
| Depreciation and amortization |
|
14,591 |
|
|
317 |
|
|
114 |
|
|
15,022 |
|
| Interest expense, net |
|
8,656 |
|
|
—
|
|
|
— |
|
|
8,656 |
|
| EBITDA |
|
$ |
95,376 |
|
|
$ |
(679 |
) |
|
$ |
(829 |
) |
|
$ |
93,868 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) operating activities |
|
$ |
86,592 |
|
|
$ |
(679 |
) |
|
$ |
(829 |
) |
|
$ |
85,084 |
|
| Amortization of unfavorable contract liability to revenue |
|
2,670 |
|
|
— |
|
|
— |
|
|
2,670 |
|
| Amortization of deferred financing costs |
|
(1,267 |
) |
|
— |
|
|
— |
|
|
(1,267 |
) |
| Amortization of deferred revenue |
|
307 |
|
|
—
|
|
|
—
|
|
|
307 |
|
| Accretion of asset retirement obligations |
|
(238 |
) |
|
— |
|
|
6 |
|
|
(232 |
) |
| Deferred income taxes |
|
109 |
|
|
— |
|
|
— |
|
|
109 |
|
| Loss on asset disposals |
|
(83 |
) |
|
— |
|
|
— |
|
|
(83 |
) |
| Unit-based compensation expense |
|
(274 |
) |
|
— |
|
|
— |
|
|
(274 |
) |
| Changes in assets and liabilities |
|
(1,228 |
) |
|
— |
|
|
(6 |
) |
|
(1,234 |
) |
| Income tax expense |
|
132 |
|
|
— |
|
|
— |
|
|
132 |
|
| Interest expense, net |
|
8,656 |
|
|
— |
|
|
— |
|
|
8,656 |
|
| EBITDA |
|
$ |
95,376 |
|
|
$ |
(679 |
) |
|
$ |
(829 |
) |
|
$ |
93,868 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
$ |
95,376 |
|
|
$ |
(679 |
) |
|
$ |
(829 |
) |
|
$ |
93,868 |
|
| Less: Cash interest, net |
|
7,389 |
|
|
— |
|
|
— |
|
|
7,389 |
|
| Less: Maintenance 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 |
|
|
$ |
(679 |
) |
|
$ |
(1,006 |
) |
|
$ |
78,580 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The information presented is for the year ended December 31, 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 year ended December 31, 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) |
| |
| |
|
December 31, |
|
December 31, |
| |
|
2015 |
|
2014 (1) |
| |
|
|
|
|
| |
|
(In thousands) |
| ASSETS |
|
|
|
|
| Current assets: |
|
|
|
|
| Cash and cash equivalents |
|
$ |
— |
|
|
$ |
1,861 |
|
| Accounts receivable |
|
35,049 |
|
|
27,986 |
|
| Inventory |
|
10,451 |
|
|
10,316 |
|
| Deferred tax assets |
|
— |
|
|
28 |
|
| Other current assets |
|
1,540 |
|
|
768 |
|
| Total current assets |
|
47,040 |
|
|
40,959 |
|
| Property, plant and equipment: |
|
|
|
|
| Property, plant and equipment |
|
325,647 |
|
|
308,088 |
|
| Less: accumulated depreciation |
|
(71,799 |
) |
|
(53,309 |
) |
| Property, plant and equipment, net |
|
253,848 |
|
|
254,779 |
|
| Equity method investments |
|
40,678 |
|
|
— |
|
| Goodwill |
|
12,203 |
|
|
11,654 |
|
| Intangible assets, net |
|
15,482 |
|
|
16,520 |
|
| Other non-current assets |
|
6,037 |
|
|
7,374 |
|
| Total assets |
|
$ |
375,288 |
|
|
$ |
331,286 |
|
| LIABILITIES AND EQUITY (DEFICIT) |
|
|
|
|
| Current liabilities: |
|
|
|
|
| Accounts payable |
|
$ |
6,850 |
|
|
$ |
17,929 |
|
| Accounts payable to related parties |
|
3,992 |
|
|
628 |
|
| Excise and other taxes payable |
|
4,871 |
|
|
5,443 |
|
| Tank inspection liabilities |
|
1,890 |
|
|
2,829 |
|
| Pipeline release liabilities |
|
1,393 |
|
|
1,899 |
|
| Accrued expenses and other current liabilities |
|
1,694 |
|
|
1,588 |
|
| Total current liabilities |
|
20,690 |
|
|
30,316 |
|
| Non-current liabilities: |
|
|
|
|
| Revolving credit facility |
|
351,600 |
|
|
251,750 |
|
| Asset retirement obligations |
|
3,506 |
|
|
3,319 |
|
| Deferred tax liabilities |
|
— |
|
|
231 |
|
| Other non-current liabilities |
|
10,510 |
|
|
5,889 |
|
| Total non-current liabilities |
|
365,616 |
|
|
261,189 |
|
| Equity (Deficit): |
|
|
|
|
| Predecessor division equity |
|
— |
|
|
19,726 |
|
| Common unitholders - public; 9,478,273 units issued and outstanding at December 31, 2015 (9,417,189 at December 31, 2014) |
|
198,401 |
|
|
194,737 |
|
| Common unitholders - Delek; 2,799,258 units issued and outstanding at December 31, 2015 (2,799,258 at December 31, 2014) |
|
(280,828 |
) |
|
(241,112 |
) |
| Subordinated unitholders - Delek; 11,999,258 units issued and outstanding at December 31, 2015 (11,999,258 at December 31, 2014) |
|
78,601 |
|
|
73,515 |
|
| General partner - Delek; 495,445 units issued and outstanding at December 31, 2015 (494,197 at December 31, 2014) |
|
(7,192 |
) |
|
(7,085 |
) |
| Total (deficit) equity |
|
(11,018 |
) |
|
39,781 |
|
| Total liabilities and (deficit) equity |
|
$ |
375,288 |
|
|
$ |
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
December 31,
|
|
Year Ended
December 31,
|
| |
|
|
| |
|
2015 |
|
2014 (1) |
|
2015 (2) |
|
2014 (1) |
| |
|
|
|
|
|
|
|
|
| |
|
(In thousands, except unit and per unit data) |
| Net sales: |
|
|
|
|
|
|
|
|
| Affiliate |
|
$ |
38,589 |
|
|
$ |
30,728 |
|
|
$ |
152,564 |
|
|
$ |
114,583 |
|
| Third-Party |
|
70,342 |
|
|
142,619 |
|
|
437,105 |
|
|
726,670 |
|
| Net sales |
|
108,931 |
|
|
173,347 |
|
|
589,669 |
|
|
841,253 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
71,018 |
|
|
134,305 |
|
|
436,304 |
|
|
697,221 |
|
| Operating expenses |
|
11,732 |
|
|
9,889 |
|
|
44,923 |
|
|
39,465 |
|
| General and administrative expenses |
|
2,290 |
|
|
3,258 |
|
|
11,384 |
|
|
10,616 |
|
| Depreciation and amortization |
|
5,907 |
|
|
4,075 |
|
|
19,692 |
|
|
15,022 |
|
| Loss on asset disposals |
|
122 |
|
|
9 |
|
|
104 |
|
|
83 |
|
| Total operating costs and expenses |
|
91,069 |
|
|
151,536 |
|
|
512,407 |
|
|
762,407 |
|
| Operating income |
|
17,862 |
|
|
21,811 |
|
|
77,262 |
|
|
78,846 |
|
| Interest expense, net |
|
3,042 |
|
|
2,105 |
|
|
10,658 |
|
|
8,656 |
|
| Loss on equity method investments |
|
146 |
|
|
— |
|
|
588 |
|
|
— |
|
| Net Income before income tax (benefit) expense |
|
14,674 |
|
|
19,706 |
|
|
66,016 |
|
|
70,190 |
|
| Income tax (benefit) expense |
|
(621 |
) |
|
(473 |
) |
|
(195 |
) |
|
132 |
|
| Net income |
|
$ |
15,295 |
|
|
$ |
20,179 |
|
|
$ |
66,211 |
|
|
$ |
70,058 |
|
| Less: loss attributable to Predecessors |
|
— |
|
|
(307 |
) |
|
(637 |
) |
|
(1,939 |
) |
| Net income attributable to partners |
|
15,295 |
|
|
20,486 |
|
|
66,848 |
|
|
71,997 |
|
| Comprehensive income attributable to partners |
|
$ |
15,295 |
|
|
$ |
20,486 |
|
|
$ |
66,848 |
|
|
$ |
71,997 |
|
| |
|
|
|
|
|
|
|
|
| Less: General partner's interest in net income, including incentive distribution rights |
|
1,784 |
|
|
855 |
|
|
5,163 |
|
|
2,366 |
|
| Limited partners' interest in net income |
|
$ |
13,511 |
|
|
$ |
19,631 |
|
|
$ |
61,685 |
|
|
$ |
69,631 |
|
| |
|
|
|
|
|
|
|
|
| Net income per limited partner unit: |
|
|
|
|
|
|
|
|
| Common units - (basic) |
|
$ |
0.56 |
|
|
$ |
0.81 |
|
|
$ |
2.55 |
|
|
$ |
2.88 |
|
| Common units - (diluted) |
|
$ |
0.55 |
|
|
$ |
0.80 |
|
|
$ |
2.52 |
|
|
$ |
2.85 |
|
| Subordinated units - Delek (basic and diluted) |
|
$ |
0.56 |
|
|
$ |
0.81 |
|
|
$ |
2.54 |
|
|
$ |
2.88 |
|
| |
|
|
|
|
|
|
|
|
| Weighted average limited partner units outstanding: |
|
|
|
|
|
|
|
|
| Common units - basic |
|
12,256,721 |
|
|
12,189,570 |
|
|
12,237,154 |
|
|
12,171,548 |
|
| Common units - diluted |
|
12,360,179 |
|
|
12,328,880 |
|
|
12,356,914 |
|
|
12,302,629 |
|
| Subordinated units - Delek (basic and diluted) |
|
11,999,258 |
|
|
11,999,258 |
|
|
11,999,258 |
|
|
11,999,258 |
|
| |
|
|
|
|
|
|
|
|
| Cash distribution per limited partner unit |
|
$ |
0.590 |
|
|
$ |
0.510 |
|
|
$ |
2.240 |
|
|
$ |
1.900 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted to include the historical results of the Logistics Assets Predecessor. Prior to the El Dorado offloading racks acquisition and Tyler crude oil storage tank acquisition on March 31, 2015, the Logistics Assets Predecessor did not record revenues for intercompany throughput and storage services.
|
|
(2) The information presented includes the results of operations of the 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)
|
|
Year Ended
December 31, 2015
|
| |
|
|
|
El Dorado Assets
Predecessor
|
|
Tyler Assets
Predecessor
|
|
|
| |
|
(In thousands) |
| Net Sales |
|
$ |
589,669 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
589,669 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
436,304 |
|
|
— |
|
|
— |
|
|
436,304 |
|
| Operating expenses |
|
44,756 |
|
|
167 |
|
|
— |
|
|
44,923 |
|
| General and administrative expenses |
|
11,384 |
|
|
— |
|
|
— |
|
|
11,384 |
|
| Depreciation and amortization |
|
19,222 |
|
|
372 |
|
|
98 |
|
|
19,692 |
|
| Loss on asset disposals |
|
104 |
|
|
— |
|
|
— |
|
|
104 |
|
| Total operating costs and expenses |
|
511,770 |
|
|
539 |
|
|
98 |
|
|
512,407 |
|
| Operating income (loss) |
|
77,899 |
|
|
(539 |
) |
|
(98 |
) |
|
77,262 |
|
| Interest expense, net |
|
10,658 |
|
|
— |
|
|
— |
|
|
10,658 |
|
| Loss on equity method investments |
|
588 |
|
|
— |
|
|
— |
|
|
588 |
|
| Net income (loss) before income tax expense |
|
66,653 |
|
|
(539 |
) |
|
(98 |
) |
|
66,016 |
|
| Income tax benefit |
|
(195 |
) |
|
— |
|
|
— |
|
|
(195 |
) |
| Net income (loss) |
|
$ |
66,848 |
|
|
$ |
(539 |
) |
|
$ |
(98 |
) |
|
$ |
66,211 |
|
| Less: loss attributable to Predecessors |
|
— |
|
|
(539 |
) |
|
(98 |
) |
|
(637 |
) |
| Net income attributable to partners |
|
$ |
66,848 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
66,848 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The information presented is for the year ended December 31, 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
December 31, 2014
|
| |
|
|
|
El Dorado Assets
Predecessor
|
|
Tyler Assets
Predecessor
|
|
|
| |
|
(In thousands) |
| Net Sales |
|
$ |
173,347 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
173,347 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
134,305 |
|
|
— |
|
|
— |
|
|
134,305 |
|
| Operating expenses |
|
9,710 |
|
|
179 |
|
|
— |
|
|
9,889 |
|
| General and administrative expenses |
|
3,258 |
|
|
— |
|
|
— |
|
|
3,258 |
|
| Depreciation and amortization |
|
3,947 |
|
|
128 |
|
|
— |
|
|
4,075 |
|
| Loss on asset disposals |
|
9 |
|
|
— |
|
|
— |
|
|
9 |
|
| Total operating costs and expenses |
|
151,229 |
|
|
307 |
|
|
— |
|
|
151,536 |
|
| Operating income (loss) |
|
22,118 |
|
|
(307 |
) |
|
— |
|
|
21,811 |
|
| Interest expense, net |
|
2,105 |
|
|
— |
|
|
— |
|
|
2,105 |
|
| Net income (loss) before income tax benefit |
|
20,013 |
|
|
(307 |
) |
|
— |
|
|
19,706 |
|
| Income tax benefit |
|
(473 |
) |
|
— |
|
|
— |
|
|
(473 |
) |
| Net income (loss) |
|
$ |
20,486 |
|
|
$ |
(307 |
) |
|
$ |
— |
|
|
$ |
20,179 |
|
| Less: loss attributable to Predecessors |
|
— |
|
|
(307 |
) |
|
— |
|
|
(307 |
) |
| Net income attributable to partners |
|
$ |
20,486 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
20,486 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The information presented is for the three months ended December 31, 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)
|
|
Year Ended
December 31, 2014
|
| |
|
|
|
El Dorado Assets
Predecessor
|
|
Tyler Assets
Predecessor
|
|
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 |
|
|
679 |
|
|
— |
|
|
783 |
|
|
39,465 |
|
| General and administrative expenses |
|
10,570 |
|
|
— |
|
|
— |
|
|
46 |
|
|
10,616 |
|
| Depreciation and amortization |
|
14,591 |
|
|
317 |
|
|
— |
|
|
114 |
|
|
15,022 |
|
| Loss on asset disposals |
|
83 |
|
|
— |
|
|
— |
|
|
— |
|
|
83 |
|
| Total operating costs and expenses |
|
760,468 |
|
|
996 |
|
|
— |
|
|
943 |
|
|
762,407 |
|
| Operating income (loss) |
|
80,785 |
|
|
(996 |
) |
|
|
|
(943 |
) |
|
78,846 |
|
| Interest expense, net |
|
8,656 |
|
|
— |
|
|
— |
|
|
— |
|
|
8,656 |
|
| Income before income tax expense |
|
72,129 |
|
|
(996 |
) |
|
|
|
(943 |
) |
|
70,190 |
|
| Income tax expense |
|
132 |
|
|
— |
|
|
— |
|
|
— |
|
|
132 |
|
| Net income (loss) |
|
$ |
71,997 |
|
|
$ |
(996 |
) |
|
$ |
— |
|
|
$ |
(943 |
) |
|
$ |
70,058 |
|
| Less: loss attributable to Predecessors |
|
— |
|
|
(996 |
) |
|
— |
|
|
(943 |
) |
|
(1,939 |
) |
| Net income attributable to partners |
|
$ |
71,997 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
71,997 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The information presented is for the year ended December 31, 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) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
Year Ended December 31, |
| |
|
|
|
|
|
|
|
|
2015 (1) |
|
|
2014 (2) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash Flow Data |
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
|
|
|
$ |
68,024 |
|
|
|
$ |
85,084 |
|
| Net cash used in investing activities |
|
|
|
|
(56,592 |
) |
|
|
(31,662 |
) |
| Net cash used in financing activities |
|
|
|
|
(13,293 |
) |
|
|
(52,485 |
) |
| |
Net (decrease) increase in cash and cash equivalents |
|
|
|
|
$ |
(1,861 |
) |
|
|
$ |
937 |
|
| |
|
(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 December 31, 2015 |
| |
|
Pipelines &
Transportation
|
|
Wholesale Marketing
& Terminalling
|
|
Consolidated |
| Affiliate |
|
$ |
26,115 |
|
|
$ |
12,474 |
|
|
$ |
38,589 |
| Third-Party |
|
6,589 |
|
|
63,753 |
|
|
70,342 |
| Net sales |
|
32,704 |
|
|
76,227 |
|
|
108,931 |
| Operating costs and expenses: |
|
|
|
|
|
|
| Cost of goods sold |
|
4,481 |
|
|
66,537 |
|
|
71,018 |
| Operating expenses |
|
10,720 |
|
|
1,012 |
|
|
11,732 |
| Segment contribution margin |
|
$ |
17,503 |
|
|
$ |
8,678 |
|
|
26,181 |
| General and administrative expense |
|
|
|
|
|
2,290 |
| Depreciation and amortization |
|
|
|
|
|
5,907 |
| Loss on asset disposals |
|
|
|
|
|
122 |
| Operating income |
|
|
|
|
|
$ |
17,862 |
| Total Assets |
|
$ |
283,553 |
|
|
$ |
91,735 |
|
|
$ |
375,288 |
| |
|
|
|
|
|
|
| Capital spending |
|
|
|
|
|
|
| Maintenance capital spending |
|
$ |
1,200 |
|
|
$ |
808 |
|
|
$ |
2,008 |
| Discretionary capital spending |
|
2,203 |
|
|
486 |
|
|
2,689 |
| Total capital spending |
|
$ |
3,403 |
|
|
$ |
1,294 |
|
|
$ |
4,697 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, 2014 |
| |
|
Pipelines &
Transportation
|
|
Wholesale Marketing
& Terminalling
|
|
Consolidated (1) |
| 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 |
|
9,059 |
|
|
830 |
|
|
9,889 |
| Segment contribution margin |
|
$ |
13,919 |
|
|
$ |
15,234 |
|
|
29,153 |
| General and administrative expense |
|
|
|
|
|
3,258 |
| Depreciation and amortization |
|
|
|
|
|
4,075 |
| Loss on asset disposals |
|
|
|
|
|
9 |
| Operating income |
|
|
|
|
|
$ |
21,811 |
| Total assets |
|
$ |
230,293 |
|
|
$ |
100,993 |
|
|
$ |
331,286 |
| |
|
|
|
|
|
|
| Capital spending |
|
|
|
|
|
|
| Maintenance capital spending |
|
$ |
1,186 |
|
|
$ |
1,872 |
|
|
$ |
3,058 |
| Discretionary capital spending |
|
794 |
|
|
709 |
|
|
1,503 |
| Total capital spending (2) |
|
$ |
1,980 |
|
|
$ |
2,581 |
|
|
$ |
4,561 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
(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 December 31, 2014 |
| |
|
Pipelines & Transportation |
| |
|
Delek Logistics
Partners, LP
|
|
Predecessor -
Logistics Assets
|
|
Three Months Ended
December 31, 2014
|
| Net Sales |
|
$ |
24,005 |
|
|
$ |
— |
|
|
$ |
24,005 |
| Operating costs and expenses: |
|
|
|
|
|
|
| Cost of goods sold |
|
1,027 |
|
|
— |
|
|
1,027 |
| Operating expenses |
|
8,880 |
|
|
179 |
|
|
9,059 |
| Segment contribution margin |
|
$ |
14,098 |
|
|
$ |
(179 |
) |
|
$ |
13,919 |
| |
|
|
|
|
|
|
| Total capital spending |
|
$ |
2,114 |
|
|
$ |
(134 |
) |
|
$ |
1,980 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended December 31, 2014 |
| |
|
Wholesale Marketing & Terminalling |
| |
|
Delek Logistics
Partners, LP
|
|
Predecessor -
Logistics Assets
|
|
Three Months Ended
December 31, 2014
|
| Net Sales |
|
$ |
149,342 |
|
|
$ |
— |
|
|
$ |
149,342 |
| Operating costs and expenses: |
|
|
|
|
|
|
| Cost of goods sold |
|
133,278 |
|
|
— |
|
|
133,278 |
| Operating expenses |
|
830 |
|
|
— |
|
|
830 |
| Segment contribution margin |
|
$ |
15,234 |
|
|
$ |
— |
|
|
$ |
15,234 |
| |
|
|
|
|
|
|
| Total capital spending |
|
$ |
2,581 |
|
|
$ |
— |
|
|
$ |
2,581 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
| Delek Logistics Partners, LP |
| Segment Data (unaudited) |
| (In thousands) |
| |
| |
|
Year Ended December 31, 2015 (1) |
| |
|
Pipelines &
Transportation
|
|
Wholesale Marketing
& Terminalling
|
|
Consolidated |
| Affiliate |
|
$ |
102,551 |
|
|
$ |
50,013 |
|
|
$ |
152,564 |
| Third-Party |
|
28,828 |
|
|
408,277 |
|
|
437,105 |
| Net sales |
|
$ |
131,379 |
|
|
$ |
458,290 |
|
|
$ |
589,669 |
| Operating costs and expenses: |
|
|
|
|
|
|
| Cost of goods sold |
|
19,607 |
|
|
416,697 |
|
|
436,304 |
| Operating expenses |
|
33,751 |
|
|
11,172 |
|
|
44,923 |
| Segment contribution margin |
|
$ |
78,021 |
|
|
$ |
30,421 |
|
|
108,442 |
| General and administrative expense |
|
|
|
|
|
11,384 |
| Depreciation and amortization |
|
|
|
|
|
19,692 |
| Loss on asset disposals |
|
|
|
|
|
104 |
| Operating income |
|
|
|
|
|
$ |
77,262 |
| |
|
|
|
|
|
|
| Capital spending: |
|
|
|
|
|
|
| Maintenance capital spending |
|
$ |
12,965 |
|
|
$ |
1,944 |
|
|
$ |
14,909 |
| Discretionary capital spending |
|
3,065 |
|
|
4,453 |
|
|
7,518 |
| Total capital spending |
|
$ |
16,030 |
|
|
$ |
6,397 |
|
|
$ |
22,427 |
|
(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.
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
31,979 |
|
|
7,486 |
|
|
39,465 |
| Segment contribution margin |
|
$ |
55,075 |
|
|
$ |
49,492 |
|
|
104,567 |
| General and administrative expense |
|
|
|
|
|
10,616 |
| Depreciation and amortization |
|
|
|
|
|
15,022 |
| Loss on asset disposals |
|
|
|
|
|
83 |
| Operating income |
|
|
|
|
|
$ |
78,846 |
| |
|
|
|
|
|
|
| Capital spending |
|
|
|
|
|
|
| Maintenance capital spending |
|
$ |
4,465 |
|
|
$ |
2,497 |
|
|
$ |
6,962 |
| Discretionary capital spending |
|
1,339 |
|
|
867 |
|
|
2,206 |
| Total capital spending (2) |
|
$ |
5,804 |
|
|
$ |
3,364 |
|
|
$ |
9,168 |
|
(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 $2.2 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) |
| |
| |
|
Year Ended December 31, 2015 |
| |
|
Pipelines & Transportation |
| |
|
Delek Logistics
Partners, LP
|
|
Logistics Assets
Predecessor
|
|
Year Ended
December 31, 2015
|
| Net Sales |
|
$ |
131,379 |
|
|
$ |
— |
|
|
$ |
131,379 |
| Operating costs and expenses: |
|
|
|
|
|
|
| Cost of goods sold |
|
19,607 |
|
|
— |
|
|
19,607 |
| Operating expenses |
|
33,584 |
|
|
167 |
|
|
33,751 |
| Segment contribution margin |
|
$ |
78,188 |
|
|
$ |
(167 |
) |
|
$ |
78,021 |
| |
|
|
|
|
|
|
| Total capital spending |
|
$ |
16,082 |
|
|
$ |
(52 |
) |
|
$ |
16,030 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31, 2015 |
| |
|
Wholesale Marketing & Terminalling |
| |
|
Delek Logistics
Partners, LP
|
|
Logistics Assets
Predecessor
|
|
Year Ended
December 31, 2015
|
| Net Sales |
|
$ |
458,290 |
|
|
$ |
— |
|
|
$ |
458,290 |
| Operating costs and expenses: |
|
|
|
|
|
|
| Cost of goods sold |
|
416,697 |
|
|
— |
|
|
416,697 |
| Operating expenses |
|
11,172 |
|
|
— |
|
|
11,172 |
| Segment contribution margin |
|
$ |
30,421 |
|
|
$ |
— |
|
|
$ |
30,421 |
| |
|
|
|
|
|
|
| Total capital spending |
|
$ |
6,397 |
|
|
$ |
— |
|
|
$ |
6,397 |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| (In thousands) |
| |
| |
|
Year Ended December 31, 2014 |
| |
|
Pipelines & Transportation |
| |
|
Delek Logistics
Partners, LP
|
|
Logistics Assets
Predecessor
|
|
El Dorado Storage Tank
Assets Predecessor
|
|
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 |
|
|
679 |
|
|
681 |
|
|
31,979 |
| Segment contribution margin |
|
$ |
56,435 |
|
|
$ |
(679 |
) |
|
$ |
(681 |
) |
|
$ |
55,075 |
| |
|
|
|
|
|
|
|
|
| Total capital spending |
|
$ |
3,555 |
|
|
$ |
2,036 |
|
|
$ |
213 |
|
|
$ |
5,804 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31, 2014 |
| |
|
Wholesale Marketing & Terminalling |
| |
|
Delek Logistics
Partners, LP
|
|
Logistics Assets
Predecessor
|
|
El Dorado Storage Tank
Assets Predecessor
|
|
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) |
| |
|
|
|
|
| |
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
| Throughputs (average bpd) |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
| |
|
|
|
|
|
|
|
|
| Pipelines and Transportation Segment: |
|
|
|
|
|
|
|
|
| Lion Pipeline System: |
|
|
|
|
|
|
|
|
| Crude pipelines (non-gathered) |
|
|
54,342 |
|
|
|
50,303 |
|
|
|
54,960 |
|
|
|
47,906 |
| Refined products pipelines to Enterprise Systems |
|
|
60,549 |
|
|
|
56,343 |
|
|
|
57,366 |
|
|
|
53,461 |
| SALA Gathering System |
|
|
19,741 |
|
|
|
23,949 |
|
|
|
20,673 |
|
|
|
22,656 |
| East Texas Crude Logistics System |
|
|
8,613 |
|
|
|
10,863 |
|
|
|
18,828 |
|
|
|
7,361 |
| El Dorado Rail Offloading Rack |
|
|
— |
|
|
|
— |
|
|
|
981 |
|
|
|
— |
| |
|
|
|
|
|
|
|
|
| Wholesale Marketing and Terminalling Segment: |
|
|
|
|
|
|
|
|
| East Texas - Tyler Refinery sales volumes (average bpd) |
|
|
66,950 |
|
|
|
62,172 |
|
|
|
59,174 |
|
|
|
61,368 |
| West Texas marketing throughputs (average bpd) |
|
|
12,488 |
|
|
|
15,441 |
|
|
|
16,357 |
|
|
|
16,707 |
| West Texas marketing margin per barrel |
|
$ |
1.05 |
|
|
$ |
6.36 |
|
|
$ |
1.35 |
|
|
$ |
4.67 |
| Terminalling throughputs (average bpd) |
|
|
114,136 |
|
|
|
100,396 |
|
|
|
106,514 |
|
|
|
96,801 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160225006753/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