Delek Logistics Partners, LP Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Delek Logistics Partners, LP filed its Q1 2024 10-Q report on May 8, 2024.</b>

AI Summary

Delek Logistics Partners, LP (DKL) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Delek Logistics Partners, LP filed a 10-Q for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's standard industrial classification is Pipe Lines (No Natural Gas). The filing was submitted on May 8, 2024. The company's principal business address is in Brentwood, TN.

Why It Matters

For investors and stakeholders tracking Delek Logistics Partners, LP, this filing contains several important signals. This 10-Q filing provides the latest financial and operational details for Delek Logistics Partners, LP, crucial for investors to assess performance and outlook. Understanding the segment performance and financial health detailed in this report is key for stakeholders evaluating the company's strategic direction and potential risks.

Risk Assessment

Risk Level: low — Delek Logistics Partners, LP shows low risk based on this filing. The filing is a routine quarterly report (10-Q) and does not contain significant new risks or material adverse events, indicating a stable operational status.

Analyst Insight

Review the detailed financial statements and segment performance within this 10-Q to understand Delek Logistics Partners, LP's current operational and financial standing.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-08 — Filing Date (Filed as of date)
• 2024-01-01 — Quarter Start Date (Reporting period start date)
• 1231 — Fiscal Year End (Fiscal year end)

Key Players & Entities

• Delek Logistics Partners, LP (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-08 (date) — Filed as of date
• Brentwood, TN (location) — Business address city and state
• 6157716701 (phone) — Business phone
• 0001552797-24-000040 (accession_number) — Accession number
• DKL (ticker) — Ticker symbol
• Delek US (company) — Related entity

FAQ

Industry Context

Delek Logistics Partners, LP operates in the energy and transportation sector, specifically focusing on pipelines.

Regulatory Implications

The company is subject to standard SEC reporting requirements for publicly traded entities, including the filing of quarterly reports (10-Q).

What Investors Should Do

1. Analyze the financial statements for revenue, expenses, and net income for Q1 2024.
2. Examine any disclosures regarding operational performance or segment-specific information.
3. Review the balance sheet for changes in assets, liabilities, and equity compared to the previous period.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the 10-Q filing for the first quarter of 2024, following the 10-K annual report for the fiscal year ending December 31, 2023.

Key Financial Figures

• $1,803 — 112,309 $ 38,784 $ 243,525 (1) Net of $1,803 of amortization expense for both the th

Filing Documents

• dkl-20240331.htm (10-Q) — 1018KB
• dkl-ex311xceocertification.htm (EX-31.1) — 9KB
• dkl-ex312xcfocertification.htm (EX-31.2) — 9KB
• dkl-ex321xceocertification.htm (EX-32.1) — 5KB
• dkl-ex322xcfocertification.htm (EX-32.2) — 5KB
• dkl-20240331_g1.jpg (GRAPHIC) — 77KB
• dkl-20240331_g2.jpg (GRAPHIC) — 71KB
• dkl-20240331_g3.jpg (GRAPHIC) — 72KB
• dkl-20240331_g4.jpg (GRAPHIC) — 67KB
• dkl-20240331_g5.jpg (GRAPHIC) — 66KB
• dkl-20240331_g6.jpg (GRAPHIC) — 52KB
• dkl-20240331_g7.jpg (GRAPHIC) — 43KB
• dkl-20240331_g8.jpg (GRAPHIC) — 40KB
• dkl-20240331_g9.jpg (GRAPHIC) — 47KB
• 0001552797-24-000040.txt (&nbsp;) — 6655KB
• dkl-20240331.xsd (EX-101.SCH) — 36KB
• dkl-20240331_cal.xml (EX-101.CAL) — 56KB
• dkl-20240331_def.xml (EX-101.DEF) — 244KB
• dkl-20240331_lab.xml (EX-101.LAB) — 479KB
• dkl-20240331_pre.xml (EX-101.PRE) — 360KB
• dkl-20240331_htm.xml (XML) — 688KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

OTHER INFORMATION

PART II. OTHER INFORMATION 3

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 38

Legal Proceedings

Item 1. Legal Proceedings 3 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Comprehensive Income 38

Risk Factors

Item 1A. Risk Factors 5 Condensed Consolidated Statements of Partner's Equity (Deficit) 6 Condensed Consolidated Statements of Cash Flows 38

Other Information

Item 5. Other Information 7 Notes to Condensed Consolidated Financial Statements 7 Note 1 - Organization and Basis of Presentation 39

Exhibits

Item 6. Exhibits 7 Note 2 - Related Party Transactions 9 Note 3 - Revenues 40

Signatures

Signatures 10 Note 4 - Net Income Per Unit 10 Note 5 - Long-Term Obligations 12 Note 6 - Equity 13 Note 7 - Equity Method Investments 13 Note 8 - Segments 14 Note 9 - Commitments and Contingencies 15 Note 10 - Subsequent Events 16

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Summary of Financial and Other Information 26 Results of Operations 26 Consolidated 28 Gathering and Processing 30 Wholesale Marketing and Terminalling 32 Storage and Transportation 33 Investments in Pipeline Joint Ventures 33 Liquidity and Capital Resources 36

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 37

Controls and Procedures

Item 4. Controls and Procedures 2 |

Financial Statements

Financial Statements

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Delek Logistics Partners, LP Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except unit and per unit data) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 9,672 $ 3,755 Accounts receivable 56,993 41,131 Accounts receivable from related parties 36,588 28,443 Inventory 1,655 2,264 Other current assets 615 676 Total current assets 105,523 76,269 Property, plant and equipment: Property, plant and equipment 1,336,053 1,320,510 Less: accumulated depreciation ( 406,009 ) ( 384,359 ) Property, plant and equipment, net 930,044 936,151 Equity method investments 238,185 241,337 Customer relationship intangible, net 176,811 181,336 Marketing contract intangible, net 100,352 102,155 Rights-of-way, net 60,141 59,536 Goodwill 12,203 12,203 Operating lease right-of-use assets 17,641 19,043 Other non-current assets 13,471 14,216 Total assets $ 1,654,371 $ 1,642,246 LIABILITIES AND DEFICIT Current liabilities: Accounts payable $ 26,313 $ 26,290 Current portion of long-term debt — 30,000 Interest payable 12,710 5,805 Excise and other taxes payable 7,638 10,321 Current portion of operating lease liabilities 6,442 6,697 Accrued expenses and other current liabilities 4,098 11,477 Total current liabilities 57,201 90,590 Non-current liabilities: Long-term debt, net of current portion 1,601,226 1,673,789 Operating lease liabilities, net of current portion 7,367 8,335 Asset retirement obligations 10,225 10,038 Other non-current liabilities 20,819 21,363 Total non-current liabilities 1,639,637 1,713,525 Equity (Deficit): Common unitholders - public; 12,898,253 units issued and outstanding at March 31, 2024 ( 9,299,763 at December 31, 2023) 290,051 160,402 Common unitholders - Delek Holdings; 34,311,278 units issued and outstanding at March 31, 2024 ( 34,311,278 at December 31, 2023) ( 332,518 ) ( 322,271 ) Total deficit ( 42,467 ) ( 161,869 ) Total liabilities an

Financial Statements

Financial Statements Delek Logistics Partners, LP Condensed Consolidated Statements of Comprehensive Income (Unaudited) (In thousands, except unit and per unit data) Three Months Ended March 31, 2024 2023 Net revenues Affiliate (1) $ 139,625 $ 124,999 Third Party 112,450 118,526 Net revenues 252,075 243,525 Cost of sales: Cost of materials and other - affiliate (1) 92,882 91,071 Cost of materials and other - third party 30,810 35,025 Operating expenses (excluding depreciation and amortization presented below) 31,695 24,215 Depreciation and amortization 25,167 19,764 Total cost of sales 180,554 170,075 Operating expenses related to wholesale business (excluding depreciation and amortization presented below) 221 525 General and administrative expenses 4,863 7,510 Depreciation and amortization 1,328 1,341 Loss on disposal of assets 567 142 Total operating costs and expenses 187,533 179,593 Operating income 64,542 63,932 Interest expense, net 40,229 32,581 Income from equity method investments ( 8,490 ) ( 6,316 ) Other income, net ( 171 ) ( 2 ) Total non-operating expenses, net 31,568 26,263 Income before income tax expense 32,974 37,669 Income tax expense 326 302 Net income attributable to partners $ 32,648 $ 37,367 Comprehensive income attributable to partners $ 32,648 $ 37,367 Net income per limited partner unit: Basic $ 0.74 $ 0.86 Diluted $ 0.73 $ 0.86 Weighted average limited partner units outstanding: Basic 44,406,356 43,569,963 Diluted 44,422,817 43,585,297 Cash distributions per common limited partner unit $ 1.070 $ 1.025 (1) See Note 2 for a description of our material affiliate revenue and purchases transactions. See accompanying notes to the condensed consolidated financial statements 4 |

Financial Statements

Financial Statements Delek Logistics Partners, LP Condensed Consolidated Statements of Partners' Equity (Deficit) (Unaudited) (in thousands) Common - Public Common - Delek Holdings Total Balance as of December 31, 2023 $ 160,402 $ ( 322,271 ) $ ( 161,869 ) Cash distributions ( 10,012 ) ( 36,198 ) ( 46,210 ) Net income attributable to partners 7,404 25,244 32,648 Issuance of units 132,327 — 132,327 Other ( 70 ) 707 637 Balance as of March 31, 2024 $ 290,051 $ ( 332,518 ) $ ( 42,467 ) Common - Public Common - Delek Holdings Total Balance as of December 31, 2022 $ 172,119 $ ( 282,819 ) $ ( 110,700 ) Cash distributions ( 9,442 ) ( 34,998 ) ( 44,440 ) Net income attributable to partners 7,940 29,427 37,367 Other ( 95 ) 446 351 Balance as of March 31, 2023 $ 170,522 $ ( 287,944 ) $ ( 117,422 ) See accompanying notes to the condensed consolidated financial statements 5 |

Financial Statements

Financial Statements Delek Logistics Partners, LP Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) Three Months Ended March 31, 2024 2023 Cash flows from operating activities: Net income $ 32,648 $ 37,367 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 26,495 21,105 Non-cash lease expense 1,939 2,200 Amortization of marketing contract intangible 1,803 1,803 Amortization of deferred revenue ( 572 ) ( 444 ) Amortization of deferred financing costs and debt discount 1,250 1,127 Income from equity method investments ( 8,490 ) ( 6,316 ) Dividends from equity method investments 9,509 9,238 Loss on extinguishment of debt 3,571 — Other non-cash adjustments 1,492 780 Changes in assets and liabilities: Accounts receivable ( 15,862 ) 2,165 Inventories and other current assets 670 ( 1,482 ) Accounts payable and other current liabilities ( 2,359 ) ( 36,430 ) Accounts receivable/payable to related parties ( 8,145 ) ( 1,578 ) Non-current assets and liabilities, net ( 91 ) ( 345 ) Net cash provided by operating activities 43,858 29,190 Cash flows from investing activities: Purchases of property, plant and equipment ( 11,255 ) ( 27,837 ) Proceeds from sales of property, plant and equipment 42 — Purchases of intangible assets ( 781 ) ( 582 ) Distributions from equity method investments 2,133 1,440 Net cash used in investing activities ( 9,861 ) ( 26,979 ) Cash flows from financing activities: Distributions to common unitholders - public ( 10,012 ) ( 9,442 ) Distributions to common unitholders - Delek Holdings ( 36,198 ) ( 34,998 ) Proceeds from term debt 650,000 — Payments on term debt ( 531,250 ) ( 3,750 ) Proceeds from revolving facility 184,900 143,500 Payments on revolving facility ( 400,200 ) ( 93,400 ) Proceeds from issuance of units 132,327 — Payments on other financing agreements ( 6,214 ) — Deferred financing costs paid ( 10,946 ) ( 400 )

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View this 10-Q filing on SEC EDGAR