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Delek Logistics Partners, LP Reports Fourth Quarter 2020 Results

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·18 min read
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- Reported fourth quarter net income attributable to all partners of $40.7 million; represents an 88% increase y/y

- EBITDA of $64.0 million represented an increase of 48% y/y

- Zero recordable incidents for the full-year 2020

- Fourth quarter distributable cash flow coverage ratio of 1.41x and total leverage ratio of 3.8x

- Declared fourth quarter distribution of $0.910 per limited partner unit; reflects 2.8% percent increase y/y

- Achieved full-year distribution growth target of 5% in 2020; expect another 5% increase in 2021

- Delivered on year-end distribution coverage and leverage ratio targets earlier than expected

- Announced Sherri A. Brillon to the Board of Directors on February 1, 2021, bringing deep industry experience, diversity and fresh perspective

BRENTWOOD, Tenn., Feb. 23, 2021 /PRNewswire/ -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the fourth quarter 2020. For the three months ended December 31, 2020, Delek Logistics reported net income attributable to all partners of $40.7 million, or $0.94 per diluted common limited partner unit. This compares to net income attributable to all partners of $21.6 million, or $0.52 per diluted common limited partner unit, in the fourth quarter 2019. Net cash from operating activities was $58.4 million in the fourth quarter 2020 compared to $45.8 million in the fourth quarter 2019. Distributable cash flow was $55.9 million in the fourth quarter 2020, compared to $33.0 million in the fourth quarter 2019. 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 2020, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $64.0 million compared to $43.3 million in the fourth quarter 2019. Results improved on a year-over-year basis primarily due to the drop down of the Big Spring Gathering System and Trucking Assets and a reduction in operating expenses by $7.5 million, partially due to a decrease in contract services. 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: "I'm pleased to announce zero recordable incidents for the year, which is a true testament to our employees and our core values. Our fourth quarter results rounded out a stellar year for our company, as we delivered strong relative stock performance, despite macro headwinds for the industry. Net income and EBITDA in the fourth quarter increased approximately 88% and 48%, respectively, versus last year. Distribution growth in the quarter was 2.8% on a year-over-year basis and we delivered on our commitment of 5% distribution growth on a full-year basis. We expect another 5% increase in distributions in 2021, underpinned by our outlook for continued strong operational performance."

Mr. Yemin continued, "Eliminating the incentive distribution rights (IDRs) last year helped lower our cost of capital and positions our company for the next phase of growth. We exceeded our year-end distribution coverage and leverage ratio targets earlier than expected, creating tremendous flexibility as we progress into 2021."

Distribution and Liquidity

On January 22, 2021, Delek Logistics declared a quarterly cash distribution of $0.910 per common limited partner unit for the fourth quarter 2020, which equates to $3.640 per common limited partner unit on an annualized basis. This distribution was paid on February 9, 2021 to unitholders of record on February 2, 2021. This represents a 0.6% increase from the third quarter 2020 distribution of $0.905 per common limited partner unit, or $3.620 per common limited partner unit on an annualized basis, and a 2.8% increase over Delek Logistics' fourth quarter 2019 distribution of $0.885 per common limited partner unit, or $3.540 per common limited partner unit annualized. For the fourth quarter 2020, the total cash distribution declared to all partners was approximately $39.5 million, resulting in a distributable cash flow coverage ratio of 1.41x.

1

As of December 31, 2020, Delek Logistics had total debt of approximately $992.3 million and cash of $4.2 million. Additional borrowing capacity, subject to certain covenants, under the $850.0 million credit facility was $103.4 million. The total leverage ratio was within the requirements of the maximum allowable leverage ratio under the credit facility.

Financial Results

Revenue for the fourth quarter 2020 was $140.1 million compared to $138.6 million in the prior-year period. The increase in revenue is primarily attributable to the drop downs of the Big Spring Gathering System and Trucking Assets but this was largely offset by lower revenue in the West Texas wholesale business. Total operating expenses were $14.9 million in the fourth quarter 2020, compared to $22.3 million in the fourth quarter 2019. The decrease was primarily due to cost control measures put in place at the end of the first quarter 2020 and a lack of spill related expenses that were included in fourth quarter 2019 results. Total contribution margin was $62.0 million in the fourth quarter 2020 compared to $42.5 million in the fourth quarter 2019, mainly driven by the aforementioned contribution from new assets and lower expenses. General and administrative expenses were $5.6 million for the fourth quarter 2020, compared to $5.8 million in the prior-year period.

Pipelines and Transportation Segment

Contribution margin in the fourth quarter 2020 was $44.0 million compared to $25.2 million in the fourth quarter 2019. The drop downs of the Big Spring Gathering System and the Trucking Assets in the first half of 2020 were the primary drivers behind the year-over-year growth. Operating expenses were $10.3 million in the fourth quarter 2020 compared to $18.7 million in the prior-year period largely driven by a lack of environmental remediation costs that were incurred in the fourth quarter of 2019.

Wholesale Marketing and Terminalling Segment

During the fourth quarter 2020, contribution margin was $18.1 million, compared to $17.3 million in the fourth quarter 2019. The increase in contribution margin was primarily due to higher volumes associated with assets and agreements that support the Delek Big Spring refinery in the fourth quarter of 2020, which was partially offset by lower West Texas wholesale margins.

Average terminalling throughput volume of 153,243 barrels per day during the fourth quarter 2020 decreased on a year-over-year basis from 160,298 barrels per day in the fourth quarter 2019. During the fourth quarter 2020, average volume under the East Texas marketing agreement with Delek US was 73,584 barrels per day compared to 73,016 barrels per day during the fourth quarter 2019.

Fourth Quarter 2020 Results | Conference Call Information

Delek Logistics will hold a conference call to discuss its fourth quarter 2020 results on Wednesday, February 24, 2021 at 7:30 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. 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' (NYSE: DK) fourth quarter 2020 earnings conference call on Wednesday, February 24, 2021 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. (NYSE: 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; 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; 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. 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.

2

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 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.

3

Delek Logistics Partners, LP

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands, except unit and per unit data)



December 31, 2020


December 31, 2019

ASSETS





Current assets:





Cash and cash equivalents


$

4,243



$

5,545


Accounts receivable


15,676



13,204


Accounts receivable from related parties


5,932




Inventory


3,127



12,617


Other current assets


331



2,204


Total current assets


29,309



33,570


Property, plant and equipment:





Property, plant and equipment


692,282



461,325


Less: accumulated depreciation


(227,470)



(166,281)


Property, plant and equipment, net


464,812



295,044


Equity method investments


253,675



246,984


Operating lease right-of-use assets


24,199



3,745


Goodwill


12,203



12,203


Marketing Contract Intangible, net


123,788



130,999


Rights-of-way


36,316



15,597


Other non-current assets


12,115



6,305


Total assets


$

956,417



$

744,447







LIABILITIES AND DEFICIT





Current liabilities:





Accounts payable


$

6,659



$

12,471


Accounts payable to related parties




8,898


Interest payable


2,452



2,572


Excise and other taxes payable


4,969



3,941


Current portion of operating lease liabilities


8,691



1,435


Accrued expenses and other current liabilities


5,529



5,765


Total current liabilities


28,300



35,082


Non-current liabilities:





Long-term debt


992,291



833,110


Asset retirement obligations


6,015



5,588


Deferred tax liabilities


616



215


Operating lease liabilities, net of current portion


15,418



2,310


Other non-current liabilities


22,078



19,261


Total non-current liabilities


1,036,418



860,484


Total liabilities


1,064,718



895,566


Equity (Deficit):





Common unitholders - public; 8,697,468 units issued and outstanding at December 31, 2020 (9,131,579 at December 31, 2019)


164,614



164,436


Common unitholders - Delek Holdings; 34,745,868 units issued and outstanding at December 31, 2020 (15,294,046 at December 31, 2019)


(272,915)



(310,513)


General partner - 0 units issued and outstanding at December 31, 2020 (498,482 at December 31, 2019)




(5,042)


Total deficit


(108,301)



(151,119)


Total liabilities and deficit


$

956,417



$

744,447


4

Delek Logistics Partners, LP

Condensed Consolidated Statements of Income (Unaudited)

(In thousands, except unit and per unit data)


Three Months Ended December 31,


Year Ended December 31,


2020


2019


2020


2019

Net revenues:








Affiliate

$

92,927



$

69,484



$

382,666



$

261,014


Third-party

47,185



69,126



180,752



322,978


Net revenues

140,112



138,610



563,418



583,992


Cost of sales:








Cost of materials and other

63,217



73,760



269,094



336,473


Operating expenses (excluding depreciation and amortization presented below)

14,575



22,023



53,846



71,341


Depreciation and amortization

10,780



6,443



33,737



24,893


Total cost of sales

88,572



102,226



356,677



432,707


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

281



314



2,433



2,816


General and administrative expenses

5,614



5,769



22,587



20,815


Depreciation and amortization

499



457



1,994



1,808


Other operating expense (income), net

41



129



(66)



34


Total operating costs and expenses

95,007



108,895



383,625



458,180


Operating income

45,105



29,715



179,793



125,812


Interest expense, net

10,020



12,164



42,874



47,328


Income from equity method investments

(5,818)



(4,972)



(22,693)



(19,832)


Other expense, net

30



139



133



600


...

Total non-operating expenses, net

4,232



7,331



20,314



28,096


Income before income tax expense

40,873



22,384



159,479



97,716


Income tax expense

156



746



223



967


Net income attributable to partners

$

40,717



$

21,638



$

159,256



$

96,749


Comprehensive income attributable to partners

$

40,717



$

21,638



$

159,256



$

96,749










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



8,834



18,724



33,080


Limited partners' interest in net income

$

40,717



$

12,804



$

140,532



$

63,669










Net income per limited partner unit:








Common units - basic

$

0.94



$

0.52



$

4.18



$

2.61


Common units - diluted

$

0.94



$

0.52



$

4.18



$

2.61










Weighted average limited partner units outstanding:








Common units - basic

43,435,153



24,419,189



33,594,284



24,413,294


Common units - diluted

43,441,693



24,424,715



33,597,418



24,418,641










Cash distribution per limited partner unit

$

0.910



$

0.885



$

3.605



$

3.440


5

Delek Logistics Partners, LP

Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)



Year Ended December 31,



2020


2019

Cash flows from operating activities





Net income


$

159,256



$

96,749


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





Depreciation and amortization


35,731



26,701


Non-cash lease expense


6,075



193


Amortization of customer contract intangible assets


7,211



7,211


Amortization of deferred revenue


(1,888)



(1,688)


Amortization of deferred financing costs and debt discount


2,412



2,629


Accretion of asset retirement obligations


427



397


Income from equity method investments


(22,693)



(19,832)


Dividends from equity method investments


25,436



16,108


Gain on disposal of assets


(66)



(197)


Deferred income taxes


401



496


Other non-cash adjustments


491



1,061


Changes in assets and liabilities:





Accounts receivable


(2,472)



8,382


Inventories and other current assets


11,363



(7,702)


Accounts payable and other current liabilities


(13,479)



(4,836)


Accounts receivable/payable to related parties


(14,628)



1,065


Non-current assets and liabilities, net


(561)



3,662


Changes in assets and liabilities


(19,777)



571


Net cash provided by operating activities


193,016



130,399


Cash flows from investing activities





Asset acquisitions from Delek Holdings, net of assumed liabilities


(100,527)




Purchases of property, plant and equipment


(13,271)



(9,070)


Proceeds from sales of property, plant and equipment


107



144


Purchases of intangible assets


(13)




Distributions from equity method investments


2,741



804


Equity method investment contributions


(12,175)



(139,294)


Net cash used in investing activities


(123,138)



(147,416)


Cash flows from financing activities





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


10



8


Distributions to general partner


(27,635)



(31,654)


Distributions to common unitholders - public


(31,532)



(30,626)


Distributions to common unitholders - Delek Holdings


(77,665)



(51,388)


Distributions to Delek Holdings unitholders and general partner related to Trucking Assets Acquisition


(47,558)




Distribution to general partner for conversion of its interest and IDR elimination


(45,000)




Proceeds from revolving credit facility


599,600



564,700


Payments on revolving credit facility


(441,400)



(433,000)


Net cash (used in) provided by financing activities


(71,180)



18,040


Net (decrease) increase in cash and cash equivalents


(1,302)



1,023


Cash and cash equivalents at the beginning of the period


5,545



4,522


Cash and cash equivalents at the end of the period


$

4,243



$

5,545


Supplemental disclosures of cash flow information:





Cash paid during the period for:





Interest


$

40,582



$

44,791


Income taxes


$

98



$

144


Non-cash investing activities:





Increase (decrease) in accrued capital expenditures


$

198



$

917


Equity issuance to Delek Holdings unitholders in connection with Big Spring Gathering Assets Acquisition


$

109,513



$


Non-cash financing activities:





Sponsor contribution of property, plant and equipment


$

2,938



$


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


$

32,090



$

1,285


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


$



$

2,654


6

Delek Logistics Partners, LP

Reconciliation of Amounts Reported Under U.S. GAAP

(In thousands)


Three Months Ended December 31,


Year Ended December 31,


2020


2019


2020


2019

Reconciliation of Net Income to EBITDA:








Net income

$

40,717



$

21,638



$

159,256



$

96,749


Add:








Income tax expense

156



746



223



967


Depreciation and amortization

11,279



6,900



35,731



26,701


Amortization of customer contract intangible assets

1,803



1,803



7,211



7,211


Interest expense, net

10,020



12,164



42,874



47,328


EBITDA

$

63,975



$

43,251



$

245,295



$

178,956










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








Net cash provided by operating activities

$

58,362



$

45,809



$

193,016



$

130,399


Changes in assets and liabilities

1,236



(14,793)



19,777



(571)


Non-cash lease expense

(3,839)



2,361



(6,075)



(193)


Distributions from equity method investments in investing activities

18





2,741



804


Maintenance and regulatory capital expenditures

(536)



(2,947)



(1,296)



(8,569)


Reimbursement from Delek Holdings for capital expenditures

182



3,221



263



5,828


Accretion of asset retirement obligations

(107)



(99)



(427)



(397)


Deferred income taxes

589



(611)



(401)



(496)


Other operating (expense) income, net

(41)



102



66



197


Distributable Cash Flow

$

55,864



$

33,043



$

207,664



$

127,002


Delek Logistics Partners, LP

Distributable Coverage Ratio Calculation

(In thousands)


Three Months Ended December 31,


Year Ended December 31,

Distributions to partners of Delek Logistics, LP

2020


2019


2020


2019

Limited partners' distribution on common units

$

39,533



$

21,616



$

127,070



$

83,873


General partner's distributions



444



986



1,711


General partner's incentive distribution rights



8,573



17,632



31,781


Total distributions to be paid (1)

$

39,533



$

30,633



$

145,688



$

117,365










Distributable cash flow

$

55,864



$

33,043



$

207,664



$

127,002


Distributable cash flow coverage ratio (2)

1.41x



1.08x



1.43x



1.08x




(1)

The distributions for the three months ended and year ended December 31, 2020 reflect the impact of the distribution waiver that waived all of the distributions for the first quarter of 2020 on the 5.0 million Additional Units, related to the Big Spring Gathering Assets transaction, with respect to base distributions and the IDRs. In addition, the distributions for the three months ended and year ended December 31, 2020 reflect the waiver of distributions in respect of the IDRs associated with the Additional Units for at least two years. Subsequently, the IDRs were eliminated in the Restructuring Transaction on August 13, 2020.

(2)

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

7

Delek Logistics Partners, LP

Segment Data (unaudited)

(In thousands)


Three Months Ended December 31,


Year Ended December 31,


2020


2019


2020


2019

Pipelines and Transportation








Net revenues:








Affiliate

$

65,588



$

42,517



$

233,873



$

155,211


Third party

3,009



6,374



17,596



23,107


Total pipelines and transportation

68,597



48,891



251,469



178,318


Cost of sales:








Cost of materials and other

14,312



4,955



45,934



22,826


Operating expenses (excluding depreciation and amortization)

10,331



18,718



42,267



54,827


Segment contribution margin

$

43,954



$

25,218



$

163,268



$

100,665


Total Assets

$

723,317



$

509,666














Wholesale Marketing and Terminalling








Net revenues:








Affiliates (1)

$

27,339



$

26,967



$

148,793



$

105,803


Third party

44,176



62,752



163,156



299,871


Total wholesale marketing and terminalling

71,515



89,719



311,949



405,674


Cost of sales:








Cost of materials and other

48,905



68,805



223,160



313,647


Operating expenses (excluding depreciation and amortization)

4,525



3,619



14,012



19,330


Segment contribution margin

$

18,085



$

17,295



$

74,777



$

72,697


Total Assets

$

206,918



214,259














Consolidated








Net revenues:








Affiliates

$

92,927



$

69,484



$

382,666



$

261,014


Third party

47,185



69,126



180,752



322,978


Total consolidated

140,112



138,610



563,418



583,992


Cost of sales:








Cost of materials and other

63,217



73,760



269,094



336,473


Operating expenses (excluding depreciation and amortization presented below)

14,856



22,337



56,279



74,157


Contribution margin

62,039



42,513



238,045



173,362


General and administrative expenses

5,614



5,769



22,587



20,815


Depreciation and amortization

11,279



6,900



35,731



26,701


Other operating expense (income), net

41



129



(66)



34


Operating income

$

45,105



$

29,715



$

179,793



$

125,812


Other Assets

$

26,182



$

20,522






Total Assets

$

956,417



$

744,447








(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.

8

Delek Logistics Partners, LP

Segment Capital Spending

(In thousands)


Three Months Ended December 31,


Year Ended December 31,

Pipelines and Transportation

2020


2019


2020


2019

Maintenance capital spending

$

1,265



$

2,434



$

1,732



$

6,435


Discretionary capital spending

2,942



40



5,899



165


Segment capital spending

$

4,207



$

2,474



7,631



6,600


Wholesale Marketing and Terminalling








Maintenance capital spending

$

232



$

1,199



1,712



2,588


Discretionary capital spending

4,092



295



6,106



799


Segment capital spending

$

4,324



$

1,494



7,818



3,387


Consolidated








Maintenance capital spending

$

1,497



$

3,633



3,444



9,023


Discretionary capital spending

7,034



335



12,005



964


Total capital spending

$

8,531



$

3,968



$

15,449



$

9,987


Delek Logistics Partners, LP





Segment Data (Unaudited)






Three Months Ended December 31,


Year Ended December 31,


2020


2019


2020


2019

Pipelines and Transportation Segment:








Throughputs (average bpd)








El Dorado Assets:








Crude pipelines (non-gathered)

66,521



69,910



74,179



49,485


Refined products pipelines to Enterprise Systems

48,900



53,960



53,702



37,716


El Dorado Gathering System

13,308



15,919



13,466



15,325


East Texas Crude Logistics System

16,719



16,612



15,960



19,927


Big Spring Gathering System (1)

76,795





82,817




Plains Connection System (1)

120,304





104,770












Wholesale Marketing and Terminalling Segment:








East Texas - Tyler Refinery sales volumes (average bpd) (2)

73,584



73,016



71,182



74,206


Big Spring marketing throughputs (average bpd)

84,219



79,985



76,345



82,695


West Texas marketing throughputs (average bpd)

9,915



9,972



11,264



11,075


West Texas gross margin per barrel

$

2.36



$

3.12



$

2.37



$

4.44


Terminalling throughputs (average bpd)

153,243



160,298



147,251



160,075




















(1)

Throughput for the Big Spring Gathering System and the Plains Connection System are for 275 days we owned the assets following the Big Spring Gathering Assets Acquisition effective March 31, 2020.

(2)

Excludes jet fuel and petroleum coke.

Information about Delek Logistics Partners, LP can be found on its website (www.deleklogistics.com), investor relations webpage (ir.deleklogistics.com), news webpage (www.deleklogistics.com/news-releases) and its Twitter account (@DelekLogistics).

9

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