Delek Logistics Partners LP Files Q2 2024 10-Q

Ticker: DKL · Form: 10-Q · Filed: Aug 7, 2024 · CIK: 1552797

Sentiment: neutral

Topics: 10-Q, financials, operations, energy

TL;DR

**DKL Q2 10-Q filed. Financials and ops details out.**

AI Summary

Delek Logistics Partners, LP filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter. Key financial metrics and business segment information are provided, reflecting the company's ongoing operations in the energy and transportation sector.

Why It Matters

This filing provides investors with crucial financial data and operational insights into Delek Logistics Partners, LP's performance during the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings inherently carry medium risk due to the detailed financial and operational information that can reveal performance trends and potential future challenges.

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The reporting period for this 10-Q filing is the quarter ended June 30, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed on August 7, 2024.

What is the primary business of Delek Logistics Partners, LP?

Delek Logistics Partners, LP operates in the PIPE LINES (NO NATURAL GAS) sector, SIC code 4610.

Where is Delek Logistics Partners, LP headquartered?

Delek Logistics Partners, LP is headquartered in Brentwood, Tennessee.

What is the SEC file number for Delek Logistics Partners, LP?

The SEC file number for Delek Logistics Partners, LP is 001-35721.

Filing Stats: 4,559 words · 18 min read · ~15 pages · Grade level 20 · Accepted 2024-08-07 15:17:19

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

OTHER INFORMATION

PART II. OTHER INFORMATION 3

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 42

Legal Proceedings

Item 1. Legal Proceedings 3 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Comprehensive Income 42

Risk Factors

Item 1A. Risk Factors 5 Condensed Consolidated Statements of Partner's Equity (Deficit) 6 Condensed Consolidated Statements of Cash Flows 43

Other Information

Item 5. Other Information 7 Notes to Condensed Consolidated Financial Statements 7 Note 1 - Organization and Basis of Presentation 44

Exhibits

Item 6. Exhibits 8 Note 2 - Related Party Transactions 10 Note 3 - Revenues 46

Signatures

Signatures 11 Note 4 - Net Income Per Unit 11 Note 5 - Long-Term Obligations 13 Note 6 - Equity 14 Note 7 - Equity Method Investments 14 Note 8 - Segments 16 Note 9 - Commitments and Contingencies 16 Note 10 - Subsequent Events 18

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 28 Summary of Financial and Other Information 29 Results of Operations 29 Consolidated 32 Gathering and Processing 34 Wholesale Marketing and Terminalling 37 Storage and Transportation 38 Investments in Pipeline Joint Ventures 38 Liquidity and Capital Resources 41

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 41

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) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 5,111 $ 3,755 Accounts receivable 48,968 41,131 Accounts receivable from related parties 39,584 28,443 Inventory 1,756 2,264 Other current assets 1,150 676 Total current assets 96,569 76,269 Property, plant and equipment: Property, plant and equipment 1,343,356 1,320,510 Less: accumulated depreciation ( 424,283 ) ( 384,359 ) Property, plant and equipment, net 919,073 936,151 Equity method investments 235,911 241,337 Customer relationship intangible, net 172,285 181,336 Marketing contract intangible, net 98,550 102,155 Rights-of-way, net 60,416 59,536 Goodwill 12,203 12,203 Operating lease right-of-use assets 16,574 19,043 Other non-current assets 11,721 14,216 Total assets $ 1,623,302 $ 1,642,246 LIABILITIES AND DEFICIT Current liabilities: Accounts payable $ 26,236 $ 26,290 Current portion of long-term debt — 30,000 Interest payable 25,557 5,805 Excise and other taxes payable 8,407 10,321 Current portion of operating lease liabilities 6,034 6,697 Accrued expenses and other current liabilities 3,794 11,477 Total current liabilities 70,028 90,590 Non-current liabilities: Long-term debt, net of current portion 1,566,346 1,673,789 Operating lease liabilities, net of current portion 6,656 8,335 Asset retirement obligations 10,411 10,038 Other non-current liabilities 21,168 21,363 Total non-current liabilities 1,604,581 1,713,525 Equity (Deficit): Common unitholders - public; 12,918,673 units issued and outstanding at June 30, 2024 ( 9,299,763 at December 31, 2023) 287,195 160,402 Common unitholders - Delek Holdings; 34,311,278 units issued and outstanding at June 30, 2024 ( 34,311,278 at December 31, 2023) ( 338,502 ) ( 322,271 ) Total deficit ( 51,307 ) ( 161,869 ) Total liabilities and d

Financial Statements

Financial Statements Delek Logistics Partners, LP Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) (In thousands, except unit and per unit data) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net revenues Affiliate (1) $ 156,828 $ 132,993 $ 296,453 $ 257,992 Third Party 107,800 113,918 220,250 232,444 Net revenues 264,628 246,911 516,703 490,436 Cost of sales: Cost of materials and other - affiliate (1) 103,065 92,042 195,947 183,113 Cost of materials and other - third party 34,995 36,083 65,805 71,108 Operating expenses (excluding depreciation and amortization presented below) 29,454 28,476 61,149 52,691 Depreciation and amortization 22,746 22,469 47,913 42,233 Total cost of sales 190,260 179,070 370,814 349,145 Operating expenses related to wholesale business (excluding depreciation and amortization presented below) 174 480 395 1,005 General and administrative expenses 6,016 6,611 10,879 14,121 Depreciation and amortization 1,461 1,258 2,789 2,599 Other operating income, net ( 1,744 ) ( 455 ) ( 1,177 ) ( 313 ) Total operating costs and expenses 196,167 186,964 383,700 366,557 Operating income 68,461 59,947 133,003 123,879 Interest expense, net 35,268 35,099 75,497 67,680 Income from equity method investments ( 7,882 ) ( 7,285 ) ( 16,372 ) ( 13,601 ) Other income, net ( 40 ) ( 19 ) ( 211 ) ( 21 ) Total non-operating expenses, net 27,346 27,795 58,914 54,058 Income before income tax expense 41,115 32,152 74,089 69,821 Income tax expense 57 256 383 558 Net income attributable to partners $ 41,058 $ 31,896 $ 73,706 $ 69,263 Comprehensive income attributable to partners $ 41,058 $ 31,896 $ 73,706 $ 69,263 Net income per limited partner unit: Basic $ 0.87 $ 0.73 $ 1.61 $ 1.59 Diluted $ 0.87 $ 0.73 $ 1.61 $ 1.59 Weighted average limited partner units outstanding: Basic 47,219,184 43,577,428 45,812,770 43,573,716 Diluted 47,232,507 43,597,282 45,829,522 43,591,726 Cash di

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 March 31, 2024 $ 290,051 $ ( 332,518 ) $ ( 42,467 ) Cash distributions ( 13,893 ) ( 36,713 ) ( 50,606 ) Net income attributable to partners 11,100 29,958 41,058 Other ( 63 ) 771 708 Balance as of June 30, 2024 $ 287,195 $ ( 338,502 ) $ ( 51,307 ) Common - Public Common - Delek Holdings Total Balance as of March 31, 2023 $ 170,522 $ ( 287,944 ) $ ( 117,422 ) Cash distributions ( 9,496 ) ( 35,168 ) ( 44,664 ) Net income attributable to partners 6,783 25,113 31,896 Other ( 49 ) 737 688 Balance as of June 30, 2023 $ 167,760 $ ( 297,262 ) $ ( 129,502 ) Common - Public Common - Delek Holdings Total Balance as of December 31, 2023 $ 160,402 $ ( 322,271 ) $ ( 161,869 ) Cash distributions ( 23,905 ) ( 72,911 ) ( 96,816 ) Net income attributable to partners 18,504 55,202 73,706 Issuance of units 132,202 — 132,202 Other ( 8 ) 1,478 1,470 Balance as of June 30, 2024 $ 287,195 $ ( 338,502 ) $ ( 51,307 ) Common - Public Common - Delek Holdings Total Balance as of December 31, 2022 $ 172,119 $ ( 282,819 ) $ ( 110,700 ) Cash distributions ( 18,938 ) ( 70,166 ) ( 89,104 ) Net income attributable to partners 14,723 54,540 69,263 Other ( 144 ) 1,183 1,039 Balance as of June 30, 2023 $ 167,760 $ ( 297,262 ) $ ( 129,502 ) 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) Six Months Ended June 30, 2024 2023 Cash flows from operating activities: Net income $ 73,706 $ 69,263 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 50,702 44,832 Non-cash lease expense 1,901 4,447 Amortization of marketing contract intangible 3,605 3,605 Amortization of deferred revenue ( 1,297 ) ( 887 ) Amortization of deferred financing costs and debt discount 2,621 2,316 Income from equity method investments ( 16,372 ) ( 13,601 ) Dividends from equity method investments 19,125 17,049 Loss on extinguishment of debt 3,571 — Other non-cash adjustments ( 4,583 ) 1,707 Changes in assets and liabilities: Accounts receivable ( 7,837 ) ( 3,143 ) Inventories and other current assets 34 ( 1,664 ) Accounts payable and other current liabilities 14,013 ( 46,245 ) Accounts receivable/payable to related parties ( 10,650 ) ( 13,457 ) Non-current assets and liabilities, net 2,958 ( 420 ) Net cash provided by operating activities 131,497 63,802 Cash flows from investing activities: Purchases of property, plant and equipment ( 26,407 ) ( 55,421 ) Proceeds from sales of property, plant and equipment 9,544 455 Purchases of intangible assets ( 1,231 ) ( 1,367 ) Distributions from equity method investments 2,673 1,440 Net cash used in investing activities ( 15,421 ) ( 54,893 ) Cash flows from financing activities: Distributions to common unitholders - public ( 23,905 ) ( 18,938 ) Distributions to common unitholders - Delek Holdings ( 72,911 ) ( 70,166 ) Proceeds from term debt 852,500 — Payments on term debt ( 531,250 ) ( 7,500 ) Proceeds from revolving facility 283,900 238,500 Payments on revolving facility ( 734,200 ) ( 148,000 ) Proceeds from issuance of units 132,202 — Payments on other financing agreements ( 6,214 ) — Deferred financing costs p

View Full Filing

View this 10-Q filing on SEC EDGAR

View on Read The Filing