{"id":522539,"date":"2021-08-03T16:20:24","date_gmt":"2021-08-03T20:20:24","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/delek-logistics-partners-lp-reports-second-quarter-2021-results\/"},"modified":"2021-08-03T16:20:24","modified_gmt":"2021-08-03T20:20:24","slug":"delek-logistics-partners-lp-reports-second-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/delek-logistics-partners-lp-reports-second-quarter-2021-results\/","title":{"rendered":"Delek Logistics Partners, LP Reports Second Quarter 2021 Results"},"content":{"rendered":"
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– Reported second quarter net income attributable to all partners of $43.2 million<\/h2>\n

– EBITDA of $66.8 million represented an increase of 3% y\/y<\/h2>\n

– Second quarter distributable cash flow coverage ratio of 1.32x and total leverage ratio of approximately 3.6x<\/h2>\n

– Declared second quarter distribution of $0.940 per limited partner unit; reflects 4.4% increase y\/y<\/h2>\n

– On-track to deliver 5% distribution growth in 2021 versus 2020 distributions<\/h2>\n

– Completed $400 million senior notes offering; creating flexibility and extending maturities<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n BRENTWOOD, Tenn.<\/span>, Aug. 3, 2021<\/span> \/PRNewswire\/ —\u00a0<\/b>Delek Logistics Partners, LP (NYSE: DKL) (“Delek Logistics”) today announced its financial results for the second quarter 2021. For the three months ended June 30, 2021<\/span>, Delek Logistics reported net income attributable to all partners of $43.2 million<\/span>, or $1.00<\/span> per diluted common limited partner unit. This compares to net income attributable to all partners of $44.4 million<\/span>, or $1.18<\/span> per diluted common limited partner unit, in the second quarter 2020. Net cash from operating activities was $85.8 million<\/span> in the second quarter 2021 compared to $37.5 million<\/span> in the second quarter 2020. Distributable cash flow was $53.8 million<\/span> in the second quarter 2021, compared to $57.0 million<\/span> in the second quarter 2020.\u00a0\u00a0\u00a0 <\/p>\n

For the second quarter 2021, earnings before interest, taxes, depreciation and amortization (“EBITDA”) was $66.8 million<\/span> compared to $64.8 million<\/span> in the second quarter 2020.\u00a0 <\/p>\n

\n Uzi Yemin<\/span>, Chairman, President and Chief Executive Officer of Delek Logistics’ general partner, remarked: “Second quarter results improved sequentially based on the absence of Winter Storm Uri<\/span> impacts and Paline pipeline maintenance both of which had unfavorable impacts on the first quarter results. Major planned turnaround activity for the year at Delek US is now complete, paving the way for strong utilization of DKL owned infrastructure.”<\/p>\n

Mr. Yemin continued, “Distribution growth in the quarter was 4.4% on a year-over-year basis and we remain committed to 5% distribution growth on a full-year basis. Our leverage and coverage ratios remain healthy providing flexibility to capitalize on growth opportunities. During the quarter, we successfully raised $400 million<\/span> through a senior notes offering. This offering increases balance sheet flexibility and extends our debt maturities. DKL continues to perform well operationally and is well positioned for the future.”<\/p>\n

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\n Distribution and Liquidity<\/u>
\n <\/b>\n <\/p>\n

On July\u00a026, 2021, Delek Logistics declared a quarterly cash distribution of $0.94<\/span> per common limited partner unit for the second quarter 2021, which equates to $3.76<\/span> per common limited partner unit on an annualized basis. This distribution will be paid on August\u00a011, 2021 to unitholders of record on August\u00a05, 2021. This represents a 2.2% increase from the first quarter 2021 distribution of $0.92<\/span> per common limited partner unit, or $3.68<\/span> per common limited partner unit on an annualized basis, and a 4.4% increase over Delek Logistics’ second quarter 2020 distribution of $0.90<\/span> per common limited partner unit, or $3.60<\/span> per common limited partner unit annualized. For the second quarter 2021, the total cash distribution declared to all partners was approximately $40<\/span>.8\u00a0million, resulting in a distributable cash flow coverage ratio of 1.32x. <\/p>\n

As of June 30, 2021<\/span>, Delek Logistics had total debt of approximately $928<\/span>.7\u00a0million and cash of $2.2 million<\/span>. Additional borrowing capacity, subject to certain covenants, under the $850.0 million<\/span> credit facility was $561.2 million<\/span>, which was enhanced by the recent notes offering. The total leverage ratio was within the requirements of the maximum allowable leverage ratio under the credit facility. <\/p>\n

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\n Financial Results <\/u>
\n <\/b>\n <\/p>\n

Contribution margin in the second quarter 2021 was $64.3 million<\/span> compared to $61.3 million<\/span> in the second quarter 2020. Higher refinery utilization, increased demand, contribution from the trucking asset dropdown and a lack of pipeline maintenance resulted in improved year-over-year performance in our assets. <\/p>\n

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\n Pipelines and Transportation Segment<\/u>
\n <\/b>\n <\/p>\n

Contribution margin in the second quarter 2021 was $45.2 million<\/span> compared to $42.5 million<\/span> in the second quarter 2020. This increase was primarily attributable to the higher utilization at the refineries, drop-down of the trucking assets (dropped on May 1st, 2020<\/span>) and improved Paline pipeline performance.<\/p>\n

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\n Wholesale Marketing and Terminalling Segment <\/u>
\n <\/b>\n <\/p>\n

During the second quarter 2021, contribution margin was $19.1 million<\/span> compared to $18.8 million<\/span> in the second quarter 2020. This increase was primarily due to improved volumes and a higher gross margin in our West Texas<\/span> wholesale business. <\/p>\n

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\n Second Quarter 2021 Results | Conference Call Information<\/u>
\n <\/b>\n <\/p>\n

Delek Logistics will hold a conference call to discuss its second quarter 2021 results on Wednesday, August 4, 2021<\/span> at 7:30 a.m. Central Time<\/span>. Investors will have the opportunity to listen to the conference call live by going to www.DelekLogistics.com<\/a>. Participants are encouraged to register at least 15 minutes early to download and install any necessary software.\u00a0 An archived version of the replay will also be available at www.DelekLogistics.com<\/a> for 90 days.\u00a0\u00a0\u00a0\u00a0 <\/p>\n

Investors may also wish to listen to Delek US’ (NYSE: DK) second quarter 2021 earnings conference call on Wednesday, August 4, 2021<\/span> at 8:30 a.m. Central Time<\/span> 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<\/a>.<\/p>\n

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\n About Delek Logistics Partners, LP<\/u>
\n <\/b>\n <\/p>\n

Delek Logistics Partners, LP, headquartered in Brentwood, Tennessee<\/span>, was formed by Delek US Holdings, Inc. (NYSE: DK) to own, operate, acquire and construct crude oil and refined products logistics and marketing assets. <\/p>\n

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\n Safe Harbor Provisions Regarding Forward-Looking Statements<\/u>
\n <\/b>\n <\/p>\n

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.\u00a0These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,”\u00a0 “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; the impact of the COVID-19 outbreak on the demand for crude oil, refined products and transportation and storage services; uncertainties regarding future decisions by OPEC regarding production and pricing disputes between OPEC members and Russia<\/span>; 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 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; expected earnings or returns from joint ventures or other acquisitions; expansion projects; ability to create long-term value for our unit holders; financial flexibility and borrowing capacity; and distribution growth of 5% 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.\u00a0 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.\u00a0 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<\/p>\n

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\n Non-GAAP Disclosures:<\/u>
\n <\/b>\n <\/p>\n

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:<\/p>\n