EX-99.1 2 dkl-ex991xearningsreleasex.htm EXHIBIT 99.1 DKL EARNINGS RELEASE 5.6.19 Exhibit
Exhibit 99.1


deleklogisticsglobe5x5a03.jpg

Delek Logistics Partners, LP Reports First Quarter 2019 Results
Declared first quarter distribution of $0.82 per limited partner unit; increased by 9.3% percent year-over-year
Reported first quarter net income attributable to all partners of $19.7 million; EBITDA increased 13.5% year-over-year
First quarter net cash from operations was $26.2 million
Distributable cash flow coverage ratio of 1.06x for the first quarter 2019
Balance sheet positioned to support future growth

BRENTWOOD, Tenn., May 6, 2019 -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the first quarter 2019. For the three months ended March 31, 2019, Delek Logistics reported net income attributable to all partners of $19.7 million, or $0.51 per diluted common limited partner unit. This compares to net income attributable to all partners of $20.0 million, or $0.59 per diluted common limited partner unit, in the first quarter 2018. Net cash from operating activities was $26.2 million in the first quarter 2019 compared to $23.7 million in the prior year period. Distributable cash flow was $29.0 million in the first quarter 2019, compared to $28.0 million in the prior-year period. Reconciliation of cash from operating activities as reported under U.S. GAAP to distributable cash flow is included in the financial tables attached to this release.
For the first quarter 2019, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $39.4 million compared to $34.7 million in the prior-year period. This increase was primarily due to the contribution from the Big Spring logistics assets acquired from Delek US Holdings, Inc. (“Delek US”) effective March 1, 2018 (the "Big Spring acquisition"). On a year over year basis, lower throughputs primarily at assets supporting Delek US' El Dorado, Arkansas refinery reduced gross margin by approximately $1.2 million. Reconciliation of net income attributable to all partners as reported under U.S. GAAP to EBITDA is included in the financial tables attached to this release.
Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics' general partner, remarked: "Our EBITDA increased by 13.5 percent on a year over year basis and we ended the quarter with $389 million of availability on our credit facility. This financial flexibility should support our growth efforts as we evaluate the potential drop down of the Krotz Springs logistics assets and explore third party opportunities. Also, Delek US is pursuing midstream initiatives which should increase potential drop down inventory that can provide future growth. The increase in crude oil prices has continued to support demand in our west Texas operations and the wider Brent-WTI differential is supporting volumes on our Paline Pipeline. In addition, the incentive tariff of $0.75 per barrel on Paline expired at the end of February and the FERC tariff of $1.57 per barrel is in place, which should add approximately $0.9 million per month of EBITDA. We were pleased to announce the 9.3% year-over-year increase in our first quarter distribution, and we remain committed to grow our distribution per limited partner unit by at least 10% annually through 2019."
Distribution and Liquidity
On April 26, 2019, Delek Logistics declared a quarterly cash distribution of $0.82 per common limited partner unit for the first quarter, which equates to $3.28 per common limited partner unit on an annualized basis. This distribution is to be paid on May 14, 2019 to unitholders of record on May 7, 2019. This represents a 1.2 percent increase from the fourth quarter 2018 distribution of $0.81 per common limited partner unit, or $3.24 per common limited partner unit on an annualized basis, and a 9.3 percent increase over Delek Logistics’ first quarter 2018 distribution of $0.75 per common limited partner unit, or $3.00 per common limited partner unit annualized. For the first quarter 2019, the total cash distribution declared to all partners, including incentive distribution rights (IDRs), was approximately $27.4 million. Based on the distribution for the first quarter 2019, the distributable cash flow coverage ratio for the first quarter was 1.06x.
As of March 31, 2019, Delek Logistics had total debt of approximately $705.2 million and cash of $5.4 million. Additional borrowing capacity, subject to certain covenants, under the $850.0 million credit facility was $388.8 million. The total leverage ratio, calculated in accordance with the credit facility, for the first quarter 2019 was approximately 4.2x, which is within the current requirements of the maximum allowable leverage ratio of 5.25x.

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Financial Results
Revenue for the first quarter 2019 was $152.5 million compared to $167.9 million in the prior-year period. The decrease in revenue is primarily due to lower prices in the west Texas wholesale business, partially offset by the Big Spring acquisition that was effective March 1, 2018. Total operating expenses were $16.1 million in the first quarter 2019, compared to $12.6 million in the first quarter 2018. This increase was primarily due to the contribution from the acquired Big Spring assets and outside services. Total segment contribution margin was $40.2 million in the first quarter 2019 compared to $36.3 million in the first quarter 2018. General and administrative expenses were $4.5 million for the first quarter 2019, compared to $3.0 million in the prior-year period. This increase was partially due to employee expenses.
Pipelines and Transportation Segment
Contribution margin in the first quarter 2019 was $24.2 million compared to $19.7 million in the first quarter 2018. This increase was primarily due to the contribution from the Big Spring acquisition, partially offset by lower performance from the Lion Oil Pipeline system due to lower throughput at Delek US' El Dorado, Arkansas refinery. Operating expenses were $10.8 million in the first quarter 2019 compared to $9.6 million in the prior-year period, primarily due to the Big Spring acquisition.
Wholesale Marketing and Terminalling Segment
During the first quarter 2019, contribution margin was $15.9 million, compared to $16.7 million in the first quarter 2018. This decrease was primarily due to a lower gross margin in west Texas, which was partially offset by the contribution from the Big Spring acquisition. Operating expenses increased to $5.2 million in the first quarter 2019, compared to $3.0 million in the prior-year period primarily due to the Big Spring acquisition.
In the west Texas wholesale business, average throughput in the first quarter 2019 was 13,314 barrels per day compared to 15,942 barrels per day in the first quarter 2018. The west Texas gross margin per barrel decreased year-over-year to $3.56 per barrel and included approximately $0.3 million, or $0.27 per barrel, from renewable identification numbers (RINs) generated in the quarter. During the first quarter 2018, the west Texas gross margin per barrel was $5.16 per barrel and included $1.2 million from RINs, or $0.81 per barrel.
Average terminalling throughput volume of 152,469 barrels per day during the first quarter 2019 increased on a year-over-year basis from 143,476 barrels per day in the first quarter 2018 primarily due to the Big Spring acquisition. During the first quarter 2019, average volume under the East Texas marketing agreement with Delek US was 68,577 barrels per day compared to 73,244 barrels per day during the first quarter 2018.
First Quarter 2019 Results | Conference Call Information
Delek Logistics will hold a conference call to discuss its first quarter 2019 results on Monday, May 6, 2019 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 August 6, 2019 by dialing (855) 859-2056, passcode 3455428. 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) first quarter 2019 earnings conference call on Monday, May 6, 2019 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 that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under 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, thereby subjecting us to Delek US' 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 effects 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 utilization of Delek Logistics' assets and business performance, including margins generated by its wholesale fuel business; an inability of Delek US to grow as expected as it relates to our potential future growth opportunities, including dropdowns, and other potential benefits; the results of our investments in joint ventures; 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

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the United States Securities and Exchange Commission. Forward looking statements include, but are not limited to, statements regarding future growth at Delek Logistics; distributions and the amounts and timing thereof; potential dropdown inventory, including the Krotz Springs logistics assets; ability to create long-term value for our unit holders; financial flexibility and borrowing capacity; and distribution growth of 10% or at all. Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved.  Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements.  Delek Logistics undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof, except as required by applicable law or regulation
Non-GAAP Disclosures:
Our management uses certain "non-GAAP" operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our GAAP financial information presented in accordance with U.S. GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include:
Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income before net interest expense, income tax expense, depreciation and amortization expense, including amortization of customer contract intangible assets, which is included as a component of net revenues in our accompanying condensed consolidated statements of income.
Distributable cash flow - calculated as net cash flow from operating activities plus or minus changes in assets and liabilities, less maintenance capital expenditures net of reimbursements and other adjustments not expected to settle in cash. Delek Logistics believes this is an appropriate reflection of a liquidity measure by which users of its financial statements can assess its ability to generate cash.
EBITDA and distributable cash flow are non-U.S. GAAP supplemental financial measures that management and external users of our condensed consolidated 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 our 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, distributable cash flow and distributable cash flow coverage ratio provide useful information to investors in assessing its financial condition, its results of operations and the cash flow its business is generating. EBITDA, distributable cash flow and distributable cash flow coverage ratio should not be considered in isolation or as alternatives to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP.
Non-GAAP measures 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. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. 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. See the accompanying tables in this earnings release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.






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Delek Logistics Partners, LP
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except unit and per unit data)

 
 
March 31,
 
December 31,
 
 
2019
 
2018
ASSETS
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
5,356

 
$
4,522

   Accounts receivable
 
21,538

 
21,586

Inventory
 
6,669

 
5,491

Other current assets
 
629

 
969

Total current assets
 
34,192

 
32,568

Property, plant and equipment:
 
 

 
 

Property, plant and equipment
 
453,591

 
452,746

Less: accumulated depreciation
 
(146,712
)
 
(140,184
)
Property, plant and equipment, net
 
306,879

 
312,562

Equity method investments
 
107,830


104,770

Operating lease right-of-use assets
 
19,186

 

Goodwill
 
12,203

 
12,203

Marketing Contract Intangible, net
 
136,407

 
138,210

Other non-current assets
 
23,511

 
24,280

Total assets
 
$
640,208

 
$
624,593

 
 
 
 
 
LIABILITIES AND DEFICIT
 
 

 
 

Current liabilities:
 
 

 
 

Accounts payable
 
$
5,511

 
$
14,226

Accounts payable to related parties
 
10,522

 
7,833

Excise and other taxes payable
 
4,496

 
4,069

Pipeline release liabilities
 
3,293

 
4,419

Current portion of operating lease liabilities
 
4,258

 

Accrued expenses and other current liabilities
 
10,940

 
5,958

Total current liabilities
 
39,020

 
36,505

Non-current liabilities:
 
 
 
 
Long-term debt
 
705,175

 
700,430

Asset retirement obligations
 
5,290

 
5,191

Operating lease liabilities, net of current portion
 
14,928

 

Other non-current liabilities
 
17,700

 
17,290

Total non-current liabilities
 
743,093

 
722,911

Deficit:
 


 
 
Common unitholders - public; 9,113,359 units issued and outstanding at March 31, 2019 (9,109,807 at December 31, 2018)
 
168,389

 
171,023

Common unitholders - Delek Holdings; 15,294,046 units issued and outstanding at March 31, 2019 (15,294,046 at December 31, 2018)
 
(303,902
)
 
(299,360
)
General partner - 498,110 units issued and outstanding at March 31, 2019 (498,038 at December 31, 2018)
 
(6,392
)
 
(6,486
)
Total deficit
 
(141,905
)
 
(134,823
)
Total liabilities and deficit
 
$
640,208

 
$
624,593


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Delek Logistics Partners, LP
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except unit and per unit data)

 
 
Three Months Ended March 31,
 
 
2019
 
2018 (1)
Net revenues:
 
 
 
 
Affiliate
 
$
62,965

 
$
61,644

Third-party
 
89,518

 
106,277

Net revenues
 
152,483

 
167,921

Operating costs and expenses:
 
 
 
 
Cost of materials and other
 
96,265

 
119,032

Operating expenses (excluding depreciation and amortization presented below)
 
15,307

 
11,898

Depreciation and amortization
 
6,124

 
5,464

Total cost of sales
 
117,696

 
136,394

Operating expenses related to wholesale business (excluding depreciation and amortization presented below)
 
751

 
679

General and administrative expenses
 
4,473

 
2,975

Depreciation and amortization
 
450

 
536

Loss on asset disposals
 
2

 
60

Total operating costs and expenses
 
123,372

 
140,644

Operating income
 
29,111

 
27,277

Interest expense, net
 
11,301

 
8,062

(Income) loss from equity method investments
 
(1,951
)
 
(858
)
Income before income tax expense
 
19,761

 
20,073

Income tax expense
 
65

 
78

Net income attributable to partners
 
$
19,696

 
$
19,995

Comprehensive income attributable to partners
 
$
19,696

 
$
19,995

 
 
 
 
 
Less: General partner's interest in net income, including incentive distribution rights
 
7,270

 
5,630

Limited partners' interest in net income
 
$
12,426

 
$
14,365

 
 
 
 
 
Net income per limited partner unit:
 
 
 
 
Common units - (basic)
 
$
0.51

 
$
0.59

Common units - (diluted)
 
$
0.51

 
$
0.59

 
 
 
 
 
Weighted average limited partner units outstanding:
 
 
 
 
Common units - basic
 
24,407,168

 
24,382,633

Common units - diluted
 
24,416,058

 
24,393,746

 
 
 
 
 
Cash distribution per limited partner unit
 
$
0.820

 
$
0.750

(1) 
Certain changes to presentation of the prior period statements of income have been made in order to conform to the current period presentation, primarily relating to the addition of a subtotal entitled 'cost of sales' which includes all costs directly attributable to the generation of the related revenue, as defined by GAAP, and the retitling of what was previously referred to as 'cost of goods sold' to 'cost of materials and other'. Operating expenses and depreciation and amortization related to the wholesale business and the retail business are excluded from cost of sales because they primarily relate to costs associated with selling the products.


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Delek Logistics Partners, LP
 
 
 
 
Condensed Consolidated Statements of Cash Flows (Unaudited)
 
 
 
 
(In thousands)
 
 
 
 
 
 
Three Months Ended March 31,
 
 
2019
 
2018
Cash flows from operating activities
 
 
 
 
Net income
 
$
19,696

 
$
19,995

Adjustments to reconcile net income to net cash provided by operating activities:
 

 

Depreciation and amortization
 
6,574

 
6,000

Non-cash lease expense
 
1,016

 

Amortization of customer contract intangible assets
 
1,803

 
601

Amortization of deferred revenue
 
(402
)
 
(350
)
Amortization of deferred financing costs and debt discount
 
905

 
656

Accretion of asset retirement obligations
 
99

 
78

Income from equity method investments
 
(1,951
)
 
(858
)
Dividends from equity method investments
 
1,488

 
1,033

Loss on asset disposals
 
2

 
60

Unit-based compensation expense
 
144

 
147

Changes in assets and liabilities:
 
 
 
 
Accounts receivable
 
48

 
(2,352
)
Inventories and other current assets
 
(838
)
 
7,977

Accounts payable and other current liabilities
 
(5,177
)
 
7,091

Accounts receivable/payable to related parties
 
2,689

 
(15,790
)
Non-current assets and liabilities, net
 
109

 
(632
)
Net cash provided by operating activities
 
26,205

 
23,656

Cash flows from investing activities
 
 
 
 
Asset acquisitions, net of assumed asset retirement obligation liabilities
 

 
(72,376
)
Purchases of property, plant and equipment
 
(1,181
)
 
(3,253
)
Proceeds from sales of property, plant and equipment
 
12

 
91

Purchases of intangible assets
 

 
(144,219
)
Distributions from equity method investments
 
804

 
660

Equity method investment contributions
 
(3,401
)
 

Net cash (used in) provided by financing activities
 
(3,766
)
 
(219,097
)
Cash flows from financing activities
 
 
 
 
Proceeds from issuance of additional units to maintain 2% General Partner interest
 
2

 
13

Distributions to general partner
 
(7,179
)
 
(5,100
)
Distributions to common unitholders - public
 
(7,352
)
 
(6,590
)
Distributions to common unitholders - Delek Holdings
 
(12,388
)
 
(11,088
)
Distributions to Delek Holdings unitholders and general partner related to Big Spring Logistic Assets Acquisition
 

 
(98,798
)
Proceeds from revolving credit facility
 
119,000

 
409,200

Payments of revolving credit facility
 
(114,500
)
 
(94,400
)
Reimbursement of capital expenditures by Delek Holdings
 
812

 
2,316

Net cash (used in) provided by financing activities
 
(21,605
)
 
195,553

Net increase in cash and cash equivalents
 
834

 
112

Cash and cash equivalents at the beginning of the period
 
4,522

 
4,675

Cash and cash equivalents at the end of the period
 
$
5,356

 
$
4,787

Supplemental disclosures of cash flow information:
 
 
 
 
Cash paid during the period for:
 
 
 
 
Interest
 
$
5,997

 
$
3,009

Income taxes
 
$
58

 
$

Non-cash investing activities:
 
 

 
 

Decrease in accrued capital expenditures
 
$
(276
)
 
$
(1,004
)
Non-cash financing activities:
 
 
 
 
 Non-cash lease liability arising from recognition of right of use assets upon adoption of ASU 2016-02
 
$
20,202

 
$


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Delek Logistics Partners, LP
Reconciliation of Amounts Reported Under U.S. GAAP
(In thousands)
 
 
Three Months Ended March 31,
 
 
2019
 
2018
Reconciliation of net income to EBITDA:
 
 
 
 
Net income
 
$
19,696

 
$
19,995

Add:
 
 
 
 
Income tax expense
 
65

 
78

Depreciation and amortization
 
6,574

 
6,000

Amortization of customer contract intangible assets
 
1,803

 
601

Interest expense, net
 
11,301

 
8,062

EBITDA
 
$
39,439

 
$
34,736

 
 
 
 
 
Reconciliation of net cash from operating activities to distributable cash flow:
 
 
 
 
Net cash provided by operating activities
 
$
26,205

 
$
23,656

Changes in assets and liabilities
 
3,169

 
3,706

Non-cash lease expense
 
(1,016
)
 
$

Distributions from equity method investments in investing activities
 
804

 
660

Maintenance and regulatory capital expenditures
 
(818
)
 
(324
)
Reimbursement from Delek Holdings for capital expenditures 
 
714

 
391

Accretion of asset retirement obligations
 
(99
)
 
(78
)
Loss on asset disposals
 
(2
)
 
(60
)
Distributable Cash Flow
 
$
28,957

 
$
27,951


Delek Logistics Partners, LP
Distributable Coverage Ratio Calculation
 (In thousands)
 
 
Three Months Ended March 31,
Distributions to partners of Delek Logistics, LP
 
2019
 
2018
Limited partners' distribution on common units
 
$
20,014

 
$
18,287

General partner's distributions
 
408

 
373

General partner's incentive distribution rights
 
7,016

 
5,337

Total distributions to be paid
 
$
27,438

 
$
23,997

 
 
 
 
 
Distributable cash flow
 
$
28,957

 
$
27,951

Distributable cash flow coverage ratio (1)
 
1.06x

 
1.16x

(1) Distributable cash flow coverage ratio is calculated by dividing distributable cash flow by distributions to be paid in each respective period.



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Delek Logistics Partners, LP
Segment Data (unaudited)
 (In thousands)

 
 
Three Months Ended March 31,
 
 
2019
 
2018
Pipelines and Transportation
 
 
 
 
Net revenues:
 
 
 
 
Affiliate
 
$
36,659

 
$
29,462

Third party
 
3,974

 
4,251

Total pipelines and transportation
 
40,633

 
33,713

     Cost of sales:
 
 
 
 
Cost of materials and other
 
5,567

 
4,441

Operating expenses (excluding depreciation and amortization)
 
10,834

 
9,622

Segment contribution margin
 
$
24,232

 
$
19,650

Total Assets
 
$
401,833

 
$
417,781

 
 
 
 
 
Wholesale Marketing and Terminalling
 
 
 
 
Net revenues:
 
 
 
 
     Affiliates (1)
 
$
26,306

 
$
32,182

Third party
 
85,544

 
102,026

Total wholesale marketing and terminalling
 
111,850

 
134,208

     Cost of sales:
 
 
 
 
Cost of materials and other
 
90,698

 
114,591

Operating expenses (excluding depreciation and amortization)
 
5,224

 
2,955

Segment contribution margin
 
$
15,928

 
$
16,662

Total Assets
 
$
238,375

 
$
248,165

 
 
 
 
 
Consolidated
 
 
 
 
Net revenues:
 
 
 
 
     Affiliates
 
$
62,965

 
$
61,644

     Third party
 
89,518

 
106,277

          Total consolidated
 
152,483

 
167,921

     Cost of sales:
 
 
 
 
     Cost of materials and other
 
96,265

 
119,032

     Operating expenses (excluding depreciation and amortization presented below)
 
16,058

 
12,577

     Contribution margin
 
40,160

 
36,312

     General and administrative expenses
 
4,473

 
2,975

     Depreciation and amortization
 
6,574

 
6,000

     Loss (gain) on asset disposals
 
2

 
60

     Operating income
 
$
29,111

 
$
27,277

Total Assets
 
$
640,208

 
$
665,946

(1) Affiliate revenue for the wholesale marketing and terminalling segment is presented net of amortization expense pertaining to the marketing contract intangible we acquired in connection with the Big Spring acquisition.




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Delek Logistics Partners, LP
Segment Capital Spending
 (In thousands)
 
 
Three Months Ended March 31,
Pipelines and Transportation
 
2019
 
2018
Maintenance capital spending
 
$
410

 
$
517

Discretionary capital spending
 
14

 
891

Segment capital spending
 
$
424

 
$
1,408

Wholesale Marketing and Terminalling
 

 

Maintenance capital spending
 
$
107

 
$
202

Discretionary capital spending
 
373

 
587

Segment capital spending
 
$
480

 
$
789

Consolidated
 
 
 
 
Maintenance capital spending
 
$
517

 
$
719

Discretionary capital spending
 
387

 
1,478

Total capital spending
 
$
904

 
$
2,197


Delek Logistics Partners, LP
Segment Data (Unaudited)
 
 
Three Months Ended March 31,
 
 
2019
 
2018
Pipelines and Transportation Segment:
 
 
 
 
Throughputs (average bpd)
 
 
 
 
Lion Pipeline System:
 
 
 
 
    Crude pipelines (non-gathered)
 
28,683

 
54,728

    Refined products pipelines to Enterprise Systems
 
23,092

 
49,754

SALA Gathering System
 
16,998

 
16,672

East Texas Crude Logistics System
 
18,113

 
18,062

 
 
 
 
 
Wholesale Marketing and Terminalling Segment:
 
 
 
 
East Texas - Tyler Refinery sales volumes (average bpd) (1)
 
68,577

 
73,244

Big Spring marketing throughputs (average bpd) (2)
 
87,741

 
75,139

West Texas marketing throughputs (average bpd)
 
13,314

 
15,942

West Texas gross margin per barrel
 
$
3.56

 
$
5.16

Terminalling throughputs (average bpd) (3)
 
152,469

 
143,476

(1) Excludes jet fuel and petroleum coke.
(2) Throughputs for the three months ended March 31, 2018 are for the 31 days we marketed certain finished products produced at or sold from the Big Spring Refinery following the execution of the Big Spring Marketing Agreement, effective March 31, 2018.
(3) Consists of terminalling throughputs at our Tyler, Big Spring, Big Sandy and Mount Pleasant, Texas, our El Dorado and North Little Rock, Arkansas and our Memphis and Nashville, Tennessee terminals. Throughputs for the Big Spring terminal for three months ended March 31, 2018 are for the 31 days we operated the terminal following its acquisition effective March 1, 2018. Barrels per day are calculated for only the days we operated each terminal. Total throughput for the three months ended March 31, 2018 was 11.3 million barrels, which averaged 125,639 bpd for the period.


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Reconciliation of Forecast Incremental U.S. GAAP Net Income (Loss) to Forecast Incremental EBITDA for Paline Pipeline Tariff Increase
 
 
 
 
 
 
 
 
($ in millions)
 
Annual
Monthly
 
 
 
 
 
 
 
 
Forecasted Incremental Net Income
 
$
10.8

$
0.9

 
 
Add Forecasted Incremental Amounts for:
 
 
 
 
 
Interest Expense, net
 


 
 
Depreciation and amortization
 


 
 
Forecasted Incremental EBITDA
 
$
10.8

$
0.9

 
 
 
 
 
 
 

Investor / Media Relations Contact:
Keith Johnson
Vice President of Investor Relations        
615-435-1366

Media/Public Affairs Contact:
Michael P. Ralsky
Vice President - Government Affairs, Public Affairs & Communications
615-435-1407



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