DKL
$30.88
Delek Logistics Partners LP
($.07)
(.23%)
Earnings Details
4th Quarter December 2016
Monday, February 27, 2017 6:05:38 PM
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Summary

Delek Logistics Partners LP (DKL) Recent Earnings

Delek Logistics Partners LP (DKL) reported 4th Quarter December 2016 earnings of $0.47 per share on revenue of $124.7 million. The consensus earnings estimate was $0.48 per share on revenue of $111.6 million. Revenue grew 14.5% on a year-over-year basis.

Delek Logistics Partners LP is a limited partnership. It owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets.

Results
Reported Earnings
$0.47
Earnings Whisper
-
Consensus Estimate
$0.48
Reported Revenue
$124.7 Mil
Revenue Estimate
$111.6 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Delek Logistics Partners, LP Reports Fourth Quarter and Full Year 2016 Results

Caddo joint venture crude oil pipeline began operations in January 2017

Declared quarterly distribution of $0.68 per limited partner unit; increased by 15.3 percent year-over-year

Reported fourth quarter net cash from operating activities of $13.9 million and distributable cash flow of $18.5 million

Potential for increased dropdown assets at our sponsor should support annual distribution growth per limited partner unit of at least 10% through 2019

Delek Logistics Partners, LP (DKL) ("Delek Logistics") today announced its financial results for the fourth quarter 2016. For the three months ended December 31, 2016, Delek Logistics reported net income attributable to all partners of $15.3 million, or $0.47 per diluted common limited partner unit. This compares to net income attributable to all partners of $15.3 million, or $0.55 per diluted common limited partner unit, in the fourth quarter 2015. Distributable cash flow ("DCF") was $18.5 million in the fourth quarter 2016, compared to $18.9 million in the prior-year period.

For the fourth quarter 2016, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $24.4 million compared to $23.6 million in the prior-year period. This improvement was driven by a combination of higher volume and gross margin per barrel in west Texas as demand benefited from increased drilling activity in the Permian Basin and lower operating expenses, which was partially offset by lower volume in SALA Gathering System and on the Paline pipeline.

For 2016, net income attributable to all partners was $62.8 million, or $2.07 per diluted common limited partner unit. This compares to net income attributable to all partners of $66.8 million, or $2.52 per diluted common limited partner unit for 2015. Net cash from operations was $100.7 million and distributable cash flow was $81.7 million in 2016 compared to net cash from operations of $68.0 million and distributable cash flow of $81.3 million in 2015. EBITDA was $97.3 million in 2016, compared to $96.5 million in 2015.

Based on the declared distribution for the fourth quarter 2016, the distributable cash flow coverage ratio for the fourth quarter was 0.90x, which was reduced by spending for maintenance and regulatory capital expenditures that shifted into the fourth quarter. On an annual basis for 2016, the distributable cash flow coverage ratio was 1.09x.

Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics’ general partner, remarked: "During the fourth quarter, our focus on cost savings initiatives played a role in the 25 percent year-over-year decline in operating expenses. Also the improvement in west Texas activity in the Permian Basin that benefited our wholesale business during the fourth quarter has continued into 2017. We maintained financial flexibility, ending the quarter with approximately $300 million of capacity on our credit facility and a leverage ratio of 3.85 times. This financial position supported the 15.3 percent year-over-year increase in our declared fourth quarter distribution."

Yemin concluded, "In January, the Caddo joint venture crude oil pipeline began operating and we expect utilization to increase through 2017. With a continued increase in drilling activity in the Permian Basin, our RIO joint venture pipeline, which began operating in September, is well positioned in the Delaware Basin to benefit from increased crude oil production in the future. As we benefit from our joint venture investments in 2017, we remain focused on creating long term value for our unitholders as we continue to evaluate potential third party acquisition opportunities and explore options to partner with Delek US in the future. Delek US’ recent announcement of a definitive agreement to acquire the remaining outstanding common stock of Alon USA Energy, Inc. should create future potential drop down opportunities after closing that can support additional growth at Delek Logistics. It will also create a refining system with significant access to the Permian Basin, which should provide a platform for future potential logistics projects to support these operations. The combination of the financial flexibility provided by our balance sheet, potential for increased dropdown assets at our sponsor and continued focus on growth initiatives, gives us confidence that we can increase our distribution per limited partner unit by at least 10% annually through 2019."

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Distribution and Liquidity</span>

On January 25, 2017, Delek Logistics declared a quarterly cash distribution for the fourth quarter of $0.68 per limited partner unit, which equates to $2.72 per limited partner unit on an annualized basis. This distribution was paid on February 14, 2017 to unitholders of record on February 7, 2017. This represents a 3.8 percent increase from the third quarter 2016 distribution of $0.655 per limited partner unit, or $2.62 per limited partner unit on an annualized basis, and a 15.3 percent increase over Delek Logistics’ fourth quarter 2015 distribution of $0.59 per limited partner unit, or $2.36 per limited partner unit annualized. For the fourth quarter 2016, the total cash distribution declared to all partners, including IDRs, was $20.5 million.

As of December 31, 2016, Delek Logistics had total debt of approximately $392.6 million. Additional borrowing capacity, subject to certain covenants, under the $700.0 million credit facility was approximately $301.4 million.

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Financial Results</span>

Revenue for the fourth quarter 2016 was $124.7 million compared to $108.9 million in the prior year period. The increase in revenue is primarily due to higher volume and prices in the west Texas wholesale business. Total operating expenses were $8.8 million compared to $11.7 million in the fourth quarter 2015. This reduction in operating expenses was primarily due to lower outside services and maintenance costs on a year-over-year basis, partly as a result of a higher level of maintenance projects that were completed in the prior year period and cost savings initiatives. Total segment contribution margin increased to $27.2 million in the fourth quarter of 2016 compared to $26.2 million in the fourth quarter 2015. General and administrative expenses were $2.3 million for the fourth quarter 2016, in line with $2.3 million in the prior-year period.

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Pipelines and Transportation Segment</span>

The contribution margin in the fourth quarter 2016 was $16.8 million compared to $17.5 million in the fourth quarter 2015. This change was primarily due to reduced performance in the Paline Pipeline as a result of a reduction in both the amount of capacity that is leased and the lease fee on a year-over-year basis. Also, lower volume on the SALA gathering system on a year-over-year basis was a factor in the change in contribution margin. This was partially offset by a decline in operating expenses to $6.9 million in the fourth quarter 2016 compared to $10.7 million in the prior year period.

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Wholesale Marketing and Terminalling Segment</span>

During the fourth quarter 2016, contribution margin was $10.3 million, compared to $8.7 million in the fourth quarter 2015. This increase was primarily due to improved performance in the west Texas wholesale operations, at the El Dorado terminal and under the east Texas marketing agreement on a year-over-year basis. Operating expenses were $1.8 million in the fourth quarter 2016, compared to $1.0 million in the fourth quarter of 2015.

In the west Texas wholesale business, average throughput in the fourth quarter 2016 was 13,906 barrels per day compared to 12,488 barrels per day in the fourth quarter 2015. The wholesale gross margin in west Texas increased year-over-year to $1.96 per barrel and included approximately $1.9 million, or $1.51 per barrel, from renewable identification numbers (RINs) generated in the quarter. During the fourth quarter 2015, the wholesale gross margin was $1.05 per barrel and included $0.9 million from RINs, or $0.79 per barrel.

Average terminalling throughput volume of 119,934 barrels per day during the quarter increased on a year-over-year basis from 114,136 barrels per day in the fourth quarter 2015 primarily due to higher throughput at the El Dorado, Arkansas and Mount Pleasant, Texas terminals. During the fourth quarter 2016, average volume under the east Texas marketing agreement with Delek US was 68,114 barrels per day compared to 66,950 barrels per day during the fourth quarter 2015.

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Project Development Update</span>

In March 2015, Delek Logistics, through wholly owned subsidiaries, entered into two joint ventures (Caddo Pipeline and RIO Pipeline). Delek Logistics’ total investment for the construction of the two joint venture pipelines was financed through a combination of cash from operations and borrowings under its revolving credit facility. Through December 31, 2016, approximately $102.7 million has been invested in these projects. The RIO Pipeline began operating in September 2016 and the Caddo Pipeline was operational in January 2017.

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Fourth Quarter 2016 Results | Conference Call Information</span>

Delek Logistics will hold a conference call to discuss its fourth quarter 2016 results on Tuesday, February 28, 2017 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 29, 2017 by dialing (855) 859-2056, passcode 49469876. 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’ (DK) fourth quarter 2016 earnings conference call on Tuesday, February 28, 2017 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.

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">About Delek Logistics Partners, LP</span>

Delek Logistics Partners, LP, headquartered in Brentwood, Tennessee, was formed by Delek US Holdings, Inc. (DK) to own, operate, acquire and construct crude oil and refined products logistics and marketing assets.

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Safe Harbor Provisions Regarding Forward-Looking Statements</span>

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 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; uncertainty regarding the outcome of Delek US’ agreement to acquire the remaining outstanding common stock of Alon USA Energy, Inc.; 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 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.

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Factors Affecting Comparability:</span>

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 in accordance with U.S. GAAP. For the period ended March 31, 2015, the acquisition date of the Logistics Assets, the retrospective adjustments were made to the financial statements. The historical results of the Logistics Assets, prior to the acquisition date, are referred to as the "Logistics Assets Predecessor".

<span data-mce-style="text-decoration: underline;" style="text-decoration: underline;">Non-GAAP Disclosures:</span>

EBITDA, distributable cash flow and distributable cash flow coverage ratio 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, distributable cash flow and distributable cash flow coverage ratio provide useful information to investors in assessing its financial condition, its results of operations and 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 from operations or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. EBITDA, distributable cash flow and distributable cash flow coverage ratio 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. Also, please see the accompanying table providing the calculation of distributable cash flow coverage ratio.

We also include the results of our operations excluding the results of our Logistics Assets Predecessor. We believe that the presentation of our results of operations excluding results of our Logistics Assets Predecessor 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
Condensed Consolidated Balance Sheets (Unaudited)
December 31,
December 31,
2016
2015
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents
$
59
$
--
Accounts receivable
19,202
35,049
Accounts receivable from related parties
2,834
--
Inventory
8,875
10,451
Other current assets
1,071
1,540
Total current assets
32,041
47,040
Property, plant and equipment:
Property, plant and equipment
342,407
325,647
Less: accumulated depreciation
(91,378
)
(71,799
)
Property, plant and equipment, net
251,029
253,848
Equity method investments
101,080
40,678
Goodwill
12,203
12,203
Intangible assets, net
14,420
15,482
Other non-current assets
4,774
6,037
Total assets
$
415,547
$
375,288
LIABILITIES AND DEFICIT
Current liabilities:
Accounts payable
$
10,853
$
6,850
Accounts payable to related parties
--
3,992
Excise and other taxes payable
4,841
4,871
Tank inspection liabilities
1,013
1,890
Pipeline release liabilities
1,097
1,393
Accrued expenses and other current liabilities
2,925
1,694
Total current liabilities
20,729
20,690
Non-current liabilities:
Revolving credit facility
392,600
351,600
Asset retirement obligations
3,772
3,506
Other non-current liabilities
11,730
10,510
Total non-current liabilities
408,102
365,616
Total liabilities
428,831
386,306
Deficit:
Common unitholders - public; 9,263,415 units issued and outstanding at December 31, 2016 (9,478,273 at December 31, 2015)
188,013
198,401
Common unitholders - Delek; 15,065,192 units issued and outstanding at December 31, 2016 (2,799,258 at December 31, 2015)
(195,076
)
(280,828
)
Subordinated unitholders - Delek; 0 units issued and outstanding at December 31, 2016 (11,999,258 at December 31, 2015)
--
78,601
General partner - 496,502 units issued and outstanding at December 31, 2016 (495,445 at December 31, 2015)
(6,221
)
(7,192
)
Total deficit
(13,284
)
(11,018
)
Total liabilities and deficit
$
415,547
$
375,288
Delek Logistics Partners, LP
Condensed Consolidated Statements of Income (Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2016
2015
2016
2015
(In thousands, except unit and per unit data)
Net sales:
Affiliate
$
37,750
$
38,589
$
149,564
$
152,564
Third-Party
86,930
70,342
298,495
437,105
Net sales
124,680
108,931
448,059
589,669
Operating costs and expenses:
Cost of goods sold
88,777
71,018
302,158
436,304
Operating expenses
8,753
11,732
37,198
44,923
General and administrative expenses
2,338
2,290
10,256
11,384
Depreciation and amortization
5,649
5,907
20,813
19,692
Loss (gain) on asset disposals
--
122
(16
)
104
Total operating costs and expenses
105,517
91,069
370,409
512,407
Operating income
19,163
17,862
77,650
77,262
Interest expense, net
3,695
3,042
13,587
10,658
Loss on equity method investments
435
146
1,178
588
Income before income tax (benefit) expense
15,033
14,674
62,885
66,016
Income tax (benefit) expense
(279
)
(621
)
81
(195
)
Net income
15,312
15,295
62,804
66,211
Less: loss attributable to the Logistics Assets Predecessor
--
--
--
(637
)
Net income attributable to partners
15,312
15,295
62,804
66,848
Comprehensive income attributable to partners
$
15,312
$
15,295
$
62,804
$
66,848
Less: General partner’s interest in net income, including incentive distribution rights
3,890
1,784
12,193
5,163
Limited partners’ interest in net income
$
11,422
$
13,511
$
50,611
$
61,685
Net income per limited partner unit:
Common units - (basic)
$
0.47
$
0.56
$
2.08
$
2.55
Common units - (diluted)
$
0.47
$
0.55
$
2.07
$
2.52
Subordinated units - Delek (basic and diluted)
$
--
$
0.56
$
2.19
$
2.54
Weighted average limited partner units outstanding:
Common units - basic
24,310,962
12,256,721
22,490,264
12,237,154
Common units - diluted
24,366,999
12,360,179
22,558,717
12,356,914
Subordinated units - Delek (basic and diluted)
--
11,999,258
1,803,167
11,999,258
Cash distribution per limited partner unit
$
0.680
$
0.590
$
2.575
$
2.240
Delek Logistics Partners, LP
Consolidated Statements of Income (Unaudited)
Reconciliation of Partnership to Predecessor
Delek
El Dorado Rail
Tyler Crude
Year Ended
Logistics
Offloading
Oil Storage
December 31,
Partners, LP
Racks
Tank
2015
El Dorado
Tyler Assets
Assets
Predecessor
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 benefit
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
Delek Logistics Partners, LP
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
Year Ended December 31,
2016
2015
Cash Flow Data
Net cash provided by operating activities
$
100,707
$
68,024
Net cash used in investing activities
(72,692
)
(56,592
)
Net cash used in financing activities
(27,956
)
(13,293
)
Net increase (decrease) in cash and cash equivalents
$
59
$
(1,861 )
Delek Logistics Partners, LP
Reconciliation of
Amounts Reported Under U.S. GAAP
Three Months Ended
Year Ended
December 31,
December 31,
($ in thousands)
2016
2015
2016
2015
Reconciliation of net income to EBITDA:
Net income
$
15,312
$
15,295
$
62,804
$
66,211
Add:
Income tax (benefit) expense
(279
)
(621
)
81
(195
)
Depreciation and amortization
5,649
5,907
20,813
19,692
Interest expense, net
3,695
3,042
13,587
10,658
EBITDA
$
24,377
$
23,623
$
97,285
$
96,366
Reconciliation of net cash from operating activities to distributable cash flow:
Net cash provided by operating activities
$
13,946
$
1,262
$
100,707
$
68,024
Changes in assets and liabilities
7,652
20,476
(14,861
)
20,106
Maintenance and regulatory capital expenditures
(3,569
)
(2,674
)
(5,920
)
(11,841
)
Reimbursement from Delek for capital expenditures
352
14
1,880
5,220
Accretion of asset retirement obligations
(67
)
(64
)
(266
)
(251
)
Deferred income taxes
173
9
173
(14
)
(Loss) gain on asset disposals
--
(122
)
16
(104
)
Distributable Cash Flow
$
18,487
$
18,901
$
81,729
$
81,140
Delek Logistics Partners, LP
Reconciliation of
Amounts Reported Under U.S. GAAP
Delek
Logistics
Year Ended
Logistics
Assets
December 31,
Partners, LP
2015
($ in thousands)
Logistics
Assets
Predecessor
Reconciliation of net income to EBITDA:
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 net cash from operating activities to distributable cash flow:
Net cash provided by (used in) operating activities
$
68,191
$
(167 )
$
68,024
Changes in assets and liabilities
20,106
--
20,106
Maintenance and regulatory capital expenditures
5,220
--
5,220
Reimbursement from Delek for capital expenditures
(11,841
)
--
(11,841
)
Accretion of asset retirement obligations
(251
)
--
(251
)
Deferred income taxes
(14
)
--
(14
)
Loss on asset disposals
(104
)
--
(104
)
Distributable Cash Flow
$
81,307
$
(167 )
$
81,140
Delek Logistics Partners, LP
Distributable Coverage Ratio Calculation
(In thousands)
Three Months Ended
Year Ended
December 31,
December 31,
Distributions to partners of Delek Logistics, LP
2016
2015
2016
2015
Limited partners’ distribution on common units
$
16,543
$
14,324
$
62,582
$
54,318
General partner’s distributions
338
292
1,278
1,108
General partner’s incentive distribution rights
3,656
1,508
11,159
3,904
Total Distributions to be paid
$
20,537
$
16,124
$
75,019
$
59,330
Distributable Cash Flow
$
18,487
$
18,901
$
81,729
$
81,307
Distributable cash flow coverage ratio
0.90x
1.17x
1.09x
1.37x
Distributable cash flow coverage ratio is calculated by dividing distributable cash flow by distributions to be paid in each respective period.
Predecessor costs are excluded from distributable cash flow for the year ended December 31, 2015.
Delek Logistics Partners, LP
Segment Data (unaudited)
(In thousands)
Three Months Ended December 31, 2016
Pipelines &
Wholesale Marketing
Consolidated
Transportation & Terminalling
Affiliate
$
26,069
$
11,681
$
37,750
Third-Party
2,684
84,246
86,930
Net sales
28,753
95,927
124,680
Operating costs and expenses:
Cost of goods sold
5,024
83,753
88,777
Operating expenses
6,918
1,835
8,753
Segment contribution margin
$
16,811
$
10,339
27,150
General and administrative expense
2,338
Depreciation and amortization
5,649
Operating income
$
19,163
Total Assets
$
337,349
$
78,198
$
415,547
Capital spending
Maintenance capital spending
$
3,758
$
1,144
$
4,902
Discretionary capital spending
683
1,173
1,856
Total capital spending
$
4,441
$
2,317
$
6,758
Three Months Ended December 31, 2015
Pipelines &
Wholesale Marketing
Consolidated
Transportation & Terminalling
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
2,403
486
2,889
Total capital spending
$
3,603
$
1,294
$
4,897
Delek Logistics Partners, LP
Segment Data (unaudited)
(In thousands)
Year Ended December 31, 2016
Pipelines &
Wholesale Marketing
Consolidated
Transportation &Terminalling
Affiliate
$
103,749
$
45,815
$
149,564
Third-Party
18,423
280,072
298,495
Net sales
$
122,172
$
325,887
$
448,059
Operating costs and expenses:
Cost of goods sold
19,425
282,733
302,158
Operating expenses
29,235
7,963
37,198
Segment contribution margin
$
73,512
$
35,191
108,703
General and administrative expense
10,256
Depreciation and amortization
20,813
Gain on asset disposals
(16
)
Operating income
$
77,650
Capital spending:
Maintenance capital spending
$
7,386
$
1,317
$
8,703
Discretionary capital spending
1,092
1,972
3,064
Total capital spending
$
8,478
$
3,289
$
11,767
Year Ended December 31, 2015
Pipelines &
Wholesale Marketing
Consolidated
Transportation & Terminalling
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
Delek Logistics Partners, LP
Segment Data (Unaudited)
(In thousands)
Year Ended December 31, 2015
Pipelines & Transportation
Delek Logistics Predecessor -
Year Ended
Partners, LP
Logistics Assets
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 Predecessor -
Year Ended
Partners, LP
Logistics Assets
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)
Three Months Ended
Year Ended
December 31,
December 31,
Throughputs (average bpd)
2016
2015
2016
2015
Pipelines and Transportation Segment:
Lion Pipeline System:
Crude pipelines (non-gathered)
58,353
54,342
56,555
54,960
Refined products pipelines
52,895
60,549
52,071
57,366
SALA Gathering System
16,518
19,741
17,756
20,673
East Texas Crude Logistics System
11,624
8,613
12,735
18,828
El Dorado Rail Offloading Rack
--
--
--
981
Wholesale Marketing and Terminalling Segment:
East Texas - Tyler Refinery sales volumes (average bpd)
68,114
66,950
68,131
59,174
West Texas marketing throughputs (average bpd)
13,906
12,488
13,257
16,357
West Texas marketing margin per barrel
$
1.96
$
1.05
$
1.43
$
1.35
Terminalling throughputs (average bpd)
119,934
114,136
122,350
106,514
U.S. Investor / Media Relations Contact:
Keith Johnson
Vice President of Investor Relations
615-435-1366

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