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Delek Logistics Partners, LP Reports Fourth Quarter 2019 Results

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  • Declared fourth quarter distribution of $0.885 per limited partner unit; increased by 9.3% percent year-over-year

  • Reported fourth quarter net income attributable to all partners of $21.6 million; EBITDA increased 6.1% year-over-year

  • Fourth quarter net cash from operations was $45.8 million

  • Distributable cash flow coverage ratio of 1.08x for the fourth quarter 2019

  • Forecasting 5% distribution growth in 2020

BRENTWOOD, Tenn., Feb. 25, 2020 (GLOBE NEWSWIRE) -- Delek Logistics Partners, LP (DKL) ("Delek Logistics") today announced its financial results for the fourth quarter 2019. For the three months ended December 31, 2019, Delek Logistics reported net income attributable to all partners of $21.6 million, or $0.52 per diluted common limited partner unit. This compares to net income attributable to all partners of $21.3 million, or $0.58 per diluted common limited partner unit, in the fourth quarter 2018. Net cash from operating activities was $45.8 million in the fourth quarter 2019 compared to $95.4 million in the fourth quarter 2018. Distributable cash flow was $33.0 million in the fourth quarter 2019, compared to $27.6 million in the fourth quarter 2018. Reconciliation of net 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 fourth quarter 2019, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $43.3 million compared to $40.8 million in the fourth quarter 2018. Despite spill related costs of $7.1 million in the fourth quarter 2019, results improved on a year-over-year basis. This was primarily due to a $3.4 million increase to income from equity method investments, as well as increased contributions from the Paline Pipeline and Gathering Assets. This was partially offset by lower West Texas gross margin on a year-over-year basis. 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, President and Chief Executive Officer of Delek Logistics' general partner, remarked: "Delek Logistics delivered strong financial performance in fourth quarter with EBITDA increasing approximately 23% excluding spill related costs. Full-year 2019 distribution growth was over 10 percent on a year-over-year basis. The acquisition of the Red River pipeline joint venture bolstered results in 2019. The pipeline expansion, currently underway, should increase the contribution into the second half of 2020. Looking forward, we are targeting distribution growth of 5% in 2020. We are looking at simplifying the capital structure and preparing the balance sheet for potential asset drop-down options from our sponsor, Delek US Holdings, Inc. (DK) ("Delek US"). From a strategic perspective, we remain focused on maintaining strong cash flow coverage and flexibility."

Distribution and Liquidity

On January 24, 2020, Delek Logistics declared a quarterly cash distribution of $0.885 per common limited partner unit for the fourth quarter 2019, which equates to $3.54 per common limited partner unit on an annualized basis. This distribution was paid on February 12, 2020 to unitholders of record on February 4, 2020. This represents a 1.0 percent increase from the third quarter 2019 distribution of $0.880 per common limited partner unit, or $3.52 per common limited partner unit on an annualized basis, and a 9.3% increase over Delek Logistics’ fourth quarter 2018 distribution of $0.810 per common limited partner unit, or $3.24 per common limited partner unit annualized. For the fourth quarter 2019, the total cash distribution declared to all partners, including incentive distribution rights (IDRs), was approximately $30.6 million. Based on the distribution for the fourth quarter 2019, the distributable cash flow coverage ratio for the fourth quarter was 1.08x.

As of December 31, 2019, Delek Logistics had total debt of approximately $833.1 million and cash of $5.5 million. Additional borrowing capacity, subject to certain covenants, under the $850.0 million credit facility was $261.6 million. The total leverage ratio, calculated in accordance with the credit facility, for the fourth quarter 2019 was approximately 4.43x, which is within the current requirements of the maximum allowable leverage ratio of 5.25x and a decrease from the third quarter 2019 level of 4.60x

Financial Results

Revenue for the fourth quarter 2019 was $138.6 million compared to $159.3 million in the prior-year period. The decrease in revenue is primarily due to lower prices and volumes in the west Texas wholesale business, partially offset by improved performance from the Gathering Assets and Paline Pipeline. Total operating expenses were $22.3 million in the fourth quarter 2019, compared to $15.9 million in the fourth quarter 2018. The increase was primarily due to spill related costs, higher maintenance and repair and outside services. Total contribution margin was $42.5 million in the fourth quarter 2019 compared to $45.0 million in the fourth quarter 2018. General and administrative expenses were $5.8 million for the fourth quarter 2019, compared to $7.4 million in the prior-year period, with the decrease being primarily due to services rendered in fourth quarter 2018 to support the development and operations of the Big Spring Gathering project not occurring in fourth quarter 2019.

Pipelines and Transportation Segment

Contribution margin in the fourth quarter 2019 was $25.2 million compared to $26.3 million in the fourth quarter 2018. Operating expenses were $18.7 million in the fourth quarter 2019 compared to $10.9 million in the prior-year period. The increase was primarily driven by spill related costs. Excluding those costs, the contribution margin would have increased year-over-year due to strong performance from Paline and the Gathering Assets.

Wholesale Marketing and Terminalling Segment

During the fourth quarter 2019, contribution margin was $17.3 million, compared to $18.8 million in the fourth quarter 2018. This decrease was primarily due to lower gross margin in west Texas. Operating expenses of $3.6 million in the fourth quarter 2019 were lower than the $5.0 million in the prior-year period.

In the west Texas wholesale business, average throughput in the fourth quarter 2019 was 9,972 barrels per day compared to 12,938 barrels per day in the fourth quarter 2018. The west Texas gross margin per barrel decreased year-over-year to $3.12 per barrel and included approximately $0.3 million, or $0.28 per barrel, from renewable identification numbers (RINs) generated in the quarter. During the fourth quarter 2018, the west Texas gross margin per barrel was $4.60 per barrel and included $0.2 million from RINs, or $0.14 per barrel.

Average terminalling throughput volume of 160,298 barrels per day during the fourth quarter 2019 decreased on a year-over-year basis from 164,028 barrels per day in the fourth quarter 2018. During the fourth quarter 2019, average volume under the East Texas marketing agreement with Delek US was 73,016 barrels per day compared to 77,896 barrels per day during the fourth quarter 2018.

Fourth Quarter 2019 Results | Conference Call Information

Delek Logistics will hold a conference call to discuss its fourth quarter 2019 results on Wednesday, February 26, 2020 at 7:30 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.Delek Logistics.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 March 11, 2020 by dialing (855) 859-2056, passcode 1297317. 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 2019 earnings conference call on Wednesday, February 26, 2020 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. (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; the ability of the Red River joint venture to complete the expansion to increase the Red River pipeline capacity; 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 and the evaluation of incentive distribution rights; 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 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.


Delek Logistics Partners, LP

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands, except unit and per unit data)

December 31, 2019

December 31, 2018

ASSETS

Current assets:

Cash and cash equivalents

$

5,545

$

4,522

Accounts receivable

13,204

21,586

Inventory

12,617

5,491

Other current assets

2,204

969

Total current assets

33,570

32,568

Property, plant and equipment:

Property, plant and equipment

461,325

452,746

Less: accumulated depreciation

(166,281

)

(140,184

)

Property, plant and equipment, net

295,044

312,562

Equity method investments

246,984

104,770

Operating lease right-of-use assets

3,745

Goodwill

12,203

12,203

Marketing Contract Intangible, net

130,999

138,210

Other non-current assets

21,902

24,280

Total assets

$

744,447

$

624,593

LIABILITIES AND DEFICIT

Current liabilities:

Accounts payable

$

12,471

$

14,226

Accounts payable to related parties

8,898

7,833

Interest Payable

2,572

2,664

Excise and other taxes payable

3,941

4,069

Current portion of operating lease liabilities

1,435

Accrued expenses and other current liabilities

5,765

7,713

Total current liabilities

35,082

36,505

Non-current liabilities:

Long-term debt

833,110

700,430

Asset retirement obligations

5,588

5,191

Deferred tax liabilities

215

Operating lease liabilities, net of current portion

2,310

Other non-current liabilities

19,261

17,290

Total non-current liabilities

860,484

722,911

Total liabilities

895,566

759,416

Equity (Deficit):

Common unitholders - public; 9,131,579 units issued and outstanding at December 31, 2019 (9,109,807 at December 31, 2018)

164,436

171,023

Common unitholders - Delek Holdings; 15,294,046 units issued and outstanding at December 31, 2019 (15,294,046 at December 31, 2018)

(310,513

)

(299,360

)

General partner - 498,482 units issued and outstanding at December 31, 2019 (498,038 at December 31, 2018)

(5,042

)

(6,486

)

Total deficit

(151,119

)

(134,823

)

Total liabilities and deficit

$

744,447

$

624,593


Delek Logistics Partners, LP

Condensed Consolidated Statements of Income (Unaudited)

(In thousands, except unit and per unit data)

Three Months Ended December 31,

Twelve Months Ended December 31,

2019

2018

2019

2018

Net revenues:

Affiliate

$

69,484

$

62,250

$

261,014

$

240,809

Third-party

69,126

97,048

322,978

416,800

Net revenues

138,610

159,298

583,992

657,609

Cost of Sales:

Cost of materials and other

73,760

98,417

336,473

429,061

Operating expenses (excluding depreciation and amortization presented below)

22,023

15,423

71,341

55,924

Depreciation and amortization

6,443

5,821

24,893

24,108

Total cost of sales

102,226

119,661

432,707

509,093

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

314

432

2,816

2,820

General and administrative expenses

5,769

7,367

20,815

17,166

Depreciation and amortization

457

448

1,808

1,882

Other operating expense (income), net

129

243

34

891

Total operating costs and expenses

108,895

128,151

458,180

531,852

Operating income

29,715

31,147

125,812

125,757

Interest expense, net

12,164

11,167

47,328

41,263

Income from equity method investments

(4,972

)

(1,549

)

(19,832

)

(6,230

)

Other expense, net

139

600

8

Total non-operating expenses, net

7,331

9,618

28,096

35,041

Income before income tax expense

22,384

21,529

97,716

90,716

Income tax expense (benefit)

746

249

967

534

Net income attributable to partners

$

21,638

$

21,280

$

96,749

$

90,182

Comprehensive income attributable to partners

$

21,638

$

21,280

$

96,749

$

90,182

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

8,834

7,065

33,080

25,543

Limited partners' interest in net income

$

12,804

$

14,215

$

63,669

$

64,639

Net income per limited partner unit:

Common units - basic

$

0.52

$

0.58

$

2.61

$

2.65

Common units - diluted

$

0.52

$

0.58

$

2.61

$

2.65

Weighted average limited partner units outstanding:

Common units - basic

24,419,189

24,397,085

24,413,294

24,390,286

Common units - diluted

24,424,715

24,405,661

24,418,641

24,396,881

Cash distribution per limited partner unit

$

0.885

$

0.810

$

3.440

$

3.120


Delek Logistics Partners, LP

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

Twelve Months Ended December 31,

2019

2018

Cash flows from operating activities

Net income

$

96,749

$

90,182

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

Depreciation and amortization

26,701

25,990

Non-cash lease expense

193

Amortization of customer contract intangible assets

7,211

6,009

Amortization of deferred revenue

(1,688

)

(1,497

)

Amortization of deferred financing costs and debt discount

2,629

2,577

Accretion of asset retirement obligations

397

359

Income from equity method investments

(19,832

)

(6,230

)

Dividends from equity method investments

16,108

6,936

(Gain) loss on asset disposals

(197

)

891

Other non-cash adjustments

1,557

826

Changes in assets and liabilities:

Accounts receivable

8,382

1,427

Inventories and other current assets

(7,702

)

15,178

Accounts payable and other current liabilities

(4,836

)

(1,747

)

Accounts receivable/payable to related parties

1,065

9,038

Non-current assets and liabilities, net

3,662

3,019

Changes in assets and liabilities

571

26,915

Net cash provided by operating activities

130,399

152,958

Cash flows from investing activities

Asset acquisitions, net of assumed asset retirement obligation liabilities

(72,380

)

Purchases of property, plant and equipment

(9,070

)

(12,931

)

Proceeds from sales of property, plant and equipment

144

502

Purchases of intangible assets

(144,219

)

Distributions from equity method investments

804

1,162

Equity method investment contributions

(139,294

)

(173

)

Net cash used in investing activities

(147,416

)

(228,039

)

Cash flows from financing activities

Proceeds from issuance of additional units to maintain 2% General Partner interest

8

26

Distributions to general partner

(31,654

)

(23,698

)

Distributions to common unitholders - public

(30,626

)

(27,721

)

Distributions to common unitholders - Delek Holdings

(51,388

)

(46,417

)

Distributions to Delek Holdings unitholders and general partner related to Big Spring Logistic Assets Acquisition

(98,798

)

Proceeds from revolving credit facility

564,700

735,000

Payments on revolving credit facility

(433,000

)

(458,200

)

Deferred financing costs paid

(5,264

)

Net cash provided by (used in) financing activities

18,040

74,928

Net increase (decrease) in cash and cash equivalents

1,023

(153

)

Cash and cash equivalents at the beginning of the period

4,522

4,675

Cash and cash equivalents at the end of the period

$

5,545

$

4,522

Supplemental disclosures of cash flow information:

Cash paid during the period for:

Interest

$

44,791

$

38,959

Income taxes

$

144

$

137

Non-cash investing activities:

Increase/(Decrease) in accrued capital expenditures

$

917

$

(1,363

)

Non-cash financing activities:

Sponsor contribution of fixed assets

$

$

154

Non-cash lease liability arising from obtaining right of use assets during the period

$

1,285

$

Non-cash lease liability arising from recognition of right of use assets upon adoption of ASU 2016-02

$

2,654

$


Delek Logistics Partners, LP

Reconciliation of Amounts Reported Under U.S. GAAP

(In thousands)

Three Months Ended December 31,

Twelve Months Ended December 31,

2019

2018

2019

2018

Reconciliation of Net Income to EBITDA:

Net income

$

21,638

$

21,280

$

96,749

$

90,182

Add:

Income tax expense

746

249

967

534

Depreciation and amortization

6,900

6,269

26,701

25,990

Amortization of customer contract intangible assets

1,803

1,803

7,211

6,009

Interest expense, net

12,164

11,167

47,328

41,263

EBITDA

$

43,251

$

40,768

$

178,956

$

163,978

Reconciliation of net cash from operating activities to distributable cash flow:

Net cash provided by operating activities

$

45,809

$

95,358

$

130,399

$

152,958

Changes in assets and liabilities

(14,793

)

(64,915

)

(571

)

(26,915

)

Non-cash lease expense

2,361

(193

)

Distributions from equity method investments in investing activities

205

804

1,162

Maintenance and regulatory capital expenditures

(2,947

)

(3,485

)

(8,569

)

(7,326

)

Reimbursement from Delek Holdings for capital expenditures

3,221

936

5,828

3,115

Accretion of asset retirement obligations

(99

)

(92

)

(397

)

(359

)

Deferred income taxes

(611

)

(152

)

(496

)

$

(152

)

Gain (loss) on asset disposals

102

(243

)

197

(891

)

Distributable Cash Flow

$

33,043

$

27,612

127,002

$

121,592

Delek Logistics Partners, LP

Distributable Coverage Ratio Calculation

(In thousands)

Three Months Ended December 31,

Twelve Months Ended December 31,

Distributions to partners of Delek Logistics, LP

2019

2018

2019

2018

Limited partners' distribution on common units

$

21,616

$

19,770

$

83,873

$

76,113

General partner's distributions

444

$

1,711

$

1,553

General partner's incentive distribution rights

8,573

6,775

$

31,781

$

24,224

Total distributions to be paid

$

30,633

$

26,545

$

117,365

$

101,890

Distributable cash flow

$

33,043

$

27,612

$

127,002

$

121,592

Distributable cash flow coverage ratio (1)

1.08x

1.04x

1.08x

1.19x

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

Delek Logistics Partners, LP

Segment Data (unaudited)

(In thousands)

Three Months Ended December 31,

Twelve Months Ended December 31,

2019

2018

2019

2018

Pipelines and Transportation

Net revenues:

Affiliate

$

42,517

$

38,794

$

155,211

$

138,418

Third party

6,374

3,531

23,107

15,149

Total pipelines and transportation

48,891

42,325

178,318

153,567

Cost of sales:

Cost of materials and other

4,955

5,187

22,826

19,878

Operating expenses (excluding depreciation and amortization)

18,718

10,880

54,827

39,934

Segment contribution margin

$

25,218

$

26,258

$

100,665

$

93,755

Total Assets

$

537,580

$

387,333

Wholesale Marketing and Terminalling

Net revenues:

Affiliates (1)

$

26,967

$

23,456

$

105,803

$

102,391

Third party

62,752

93,517

299,871

401,651

Total wholesale marketing and terminalling

89,719

116,973

405,674

504,042

Cost of sales:

Cost of materials and other

68,805

93,230

313,647

409,183

Operating expenses (excluding depreciation and amortization)

3,619

4,975

19,330

18,810

Segment contribution margin

$

17,295

$

18,768

$

72,697

$

76,049

Total Assets

$

206,867

$

237,260

Consolidated

Net revenues:

Affiliates

$

69,484

$

62,250

$

261,014

$

240,809

Third party

69,126

97,048

322,978

416,800

Total consolidated

138,610

159,298

583,992

657,609

Cost of sales:

Cost of materials and other

73,760

98,417

336,473

429,061

Operating expenses (excluding depreciation and amortization presented below)

22,337

15,855

74,157

58,744

Contribution margin

42,513

45,026

173,362

169,804

General and administrative expenses

5,769

7,367

20,815

17,166

Depreciation and amortization

6,900

6,269

26,701

25,990

Loss (gain) on asset disposals

129

243

34

891

Operating income

$

29,715

$

31,147

$

125,812

$

125,757

Total Assets

$

744,447

$

624,593

(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.

Delek Logistics Partners, LP

Segment Capital Spending

(In thousands)

Three Months Ended December 31,

Twelve Months Ended December 31,

Pipelines and Transportation

2019

2018

2019

2018

Maintenance capital spending

2,434

1,084

6,435

3,669

Discretionary capital spending

40

1,436

165

3,171

Segment capital spending

$

2,474

$

2,520

$

6,600

$

6,840

Wholesale Marketing and Terminalling

Maintenance capital spending

$

1,199

$

1,429

2,588

$

2,880

Discretionary capital spending

295

176

799

1,845

Segment capital spending

$

1,494

$

1,605

$

3,387

$

4,725

Consolidated

Maintenance capital spending

$

3,633

$

2,513

$

9,023

$

6,549

Discretionary capital spending

335

1,612

964

5,016

Total capital spending

$

3,968

$

4,125

$

9,987

$

11,565

Delek Logistics Partners, LP

Segment Data (Unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2019

2018

2019

2018

Pipelines and Transportation Segment:

Throughputs (average bpd)

Lion Pipeline System:

Crude pipelines (non-gathered)

55,521

45,416

42,918

51,992

Refined products pipelines to Enterprise Systems

53,960

41,496

37,716

45,728

Gathering Assets

30,917

15,536

21,869

16,571

East Texas Crude Logistics System

16,612

13,602

19,927

15,696

Wholesale Marketing and Terminalling Segment:

East Texas - Tyler Refinery sales volumes (average bpd) (1)

73,016

77,896

74,206

77,487

Big Spring marketing throughputs (average bpd) (2)

79,985

84,135

82,695

81,117

West Texas marketing throughputs (average bpd)

9,972

12,938

11,075

13,323

West Texas gross margin per barrel

$

3.12

$

4.60

$

4.44

$

5.57

Terminalling throughputs (average bpd) (3)

160,298

164,028

160,075

161,284

(1) Excludes jet fuel and petroleum coke.

(2) Throughputs for the twelve months ended December 31, 2018 are for the 306 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 twelve months ended December 31, 2018 are for the 306 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 twelve months ended months ended December 31, 2018 was 56.6 million barrels, which averaged 155,193 bpd for the period.

Investor/Media Relations Contacts:
Blake Fernandez, Senior Vice President of Investor Relations and Market Intelligence, 615-224-1312
Jeb Bachmann, Manager of Investor Relations and Market Intelligence, 615-224-1118
Lenny Raymond, Manager of Investor Relations and Market Intelligence, 615-224-0828

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