PART I [Item 1. Business](index=3&type=section&id=ITEM%201.%20BUSINESS) Delek Logistics Partners, LP operates crude oil and refined products logistics, highly integrated with Delek US Holdings, Inc., across pipelines and wholesale marketing segments - Delek Logistics Partners, LP, a Delaware limited partnership, was formed in 2012 by Delek US Holdings, Inc. and its subsidiary Delek Logistics GP, LLC[10](index=10&type=chunk) - The Partnership's assets are integral to and dependent on Delek Holdings' refining operations, with Delek Holdings as the primary customer for the majority of the contribution margin[11](index=11&type=chunk) - In May 2019, the Partnership invested **$124.7 million** for a **33%** interest in the Red River Pipeline Joint Venture, plus **$3.5 million** for an expansion project to increase pipeline capacity from **150,000 bpd** to **235,000 bpd**[18](index=18&type=chunk) - On July 1, 2019, tariffs on FERC-regulated pipelines and throughput/storage fees decreased by approximately **0.1%** due to changes in the FERC oil pipeline index[16](index=16&type=chunk) - Capacity agreements on the Paline Pipeline System with an unrelated third party and Delek Refining, Ltd. terminated on February 28, 2019, making capacity available at a tariff of **$1.64 per barrel**[17](index=17&type=chunk) Company Overview Significant Acquisitions 2019 Developments Assets and Operations Pipelines and Transportation Segment Wholesale Marketing and Terminalling Segment Joint Ventures Commercial Agreements Commercial Agreements with Delek Holdings Other Agreements with Delek Holdings Other Agreements with Third Parties Major Customers Employees Seasonality and Customer Maintenance Programs Working Capital Competition Pipelines and Transportation Wholesale Marketing and Terminalling Governmental Regulation and Environmental Matters Rate Regulation of Petroleum Pipelines Department of Transportation Environmental, Health and Safety Air Emissions and Climate Change Renewable Fuel Standard Hazardous Substances and Substances Water [Item 1A. Risk Factors](index=23&type=section&id=ITEM%201A.%20RISK%20FACTORS) The Partnership faces significant risks from its dependence on Delek Holdings, operational hazards, cash flow, commodity price volatility, regulatory compliance, and partnership structure conflicts - The Partnership is substantially dependent on Delek Holdings, which accounted for approximately **87%** of its contribution margin in 2019, exposing it to risks from Delek Holdings' nonpayment or operational difficulties[106](index=106&type=chunk) - Operations are subject to inherent risks and operational hazards, including business interruptions, mechanical failures, natural disasters, and cyber-attacks, which could lead to substantial losses and affect financial performance[112](index=112&type=chunk)[113](index=113&type=chunk) - The Partnership's ability to pay quarterly distributions depends on cash flow, which can be affected by uncontrollable economic, financial, competitive, and regulatory factors, potentially decreasing unit price[123](index=123&type=chunk)[124](index=124&type=chunk) - The Partnership is exposed to direct commodity price risk in its wholesale marketing business and interest rate risk on floating-rate debt, with potential losses from unsuccessful derivative strategies[159](index=159&type=chunk)[160](index=160&type=chunk) - Conflicts of interest exist between the general partner (controlled by Delek Holdings) and unitholders, as the general partner may prioritize its own or Delek Holdings' interests, and unitholders have limited voting rights[258](index=258&type=chunk)[259](index=259&type=chunk) [Item 1B. Unresolved Staff Comments](index=47&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS) There are no unresolved staff comments - No unresolved staff comments[363](index=363&type=chunk) [Item 2. Properties](index=47&type=section&id=ITEM%202.%20PROPERTIES) Descriptions of the Partnership's properties are detailed in Item 1. 'Business - Assets and Operations' - Descriptions of the Partnership's properties are included in Item 1. 'Business - Assets and Operations'[364](index=364&type=chunk) [Item 3. Legal Proceedings](index=47&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) The Partnership is subject to routine legal proceedings, including environmental matters, with a 2013 Magnolia Release civil action settled in 2018, and no material adverse effects expected from current cases - The Partnership is subject to routine lawsuits, investigations, and claims, including environmental claims and employee-related matters[364](index=364&type=chunk) - A civil action related to the 2013 Magnolia Release was settled in December 2018 for **$2.2 million**, with final payments of **$0.6 million** to the State of Arkansas and **$1.7 million** to the DOJ made in November 2019[365](index=365&type=chunk) - Management does not believe that any currently pending legal proceeding will have a material adverse effect on the business, financial condition, or results of operations[364](index=364&type=chunk) [Item 4. Mine Safety Disclosures](index=47&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) Mine safety disclosures are not applicable to the Partnership - Mine safety disclosures are not applicable[366](index=366&type=chunk) PART II [Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=48&type=section&id=ITEM%205.%20MARKET%20FOR%20THE%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%2C%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) The Partnership's common units trade on the NYSE as 'DKL', with Delek Holdings holding a 63.4% ownership interest and a target of 5% annual distribution growth through 2020 - Common units trade on the NYSE under the symbol **'DKL'**[369](index=369&type=chunk) - As of February 21, 2020, Delek Holdings and its affiliates owned **15,294,046 common units** and **498,482 general partner units**, representing a **63.4%** ownership interest[369](index=369&type=chunk) - The Partnership Agreement requires quarterly distribution of all available cash to unitholders[370](index=370&type=chunk) - The general partner is entitled to **2.0%** of all quarterly distributions and holds incentive distribution rights (IDRs) that can reach a maximum of **48.0%** of cash distributed from Operating Surplus above **$0.43125 per unit per quarter**[373](index=373&type=chunk)[374](index=374&type=chunk) - The Partnership aims to grow its distribution per limited partner unit by **5% annually** through 2020[372](index=372&type=chunk) Unregistered Sales of General Partner Equity Securities (Q4 2019) | Date of Sale | Number of General Partner Units Sold | Price per General Partner Unit | Consideration Paid to the Partnership | | :-------------- | :----------------------------------- | :----------------------------- | :------------------------------------ | | December 10, 2019 | 170 | $32.72 | $5,569 | [Item 6. Selected Financial Data](index=52&type=section&id=ITEM%206.%20SELECTED%20FINANCIAL%20DATA) This section presents selected consolidated financial data for the five years ended December 31, 2019, including income and balance sheet data, noting key acquisitions' impact on comparability - The Partnership acquired El Dorado Rail Offloading Racks and Tyler Crude Tank assets from Delek Holdings in March 2015, accounted for as common control transfers with retrospective adjustments to prior years' results[379](index=379&type=chunk)[380](index=380&type=chunk) - In March 2018, the Partnership acquired Big Spring Logistic Assets from Delek Holdings as a common control transaction, with prior periods not recast as these assets did not constitute a business[380](index=380&type=chunk) Statements of Income and Other Comprehensive Income Data (2015-2019, in thousands except per unit data) | Metric | 2019 | 2018 | 2017 | 2016 | 2015 | | :---------------------------------------------------------------------- | :--------- | :--------- | :--------- | :--------- | :--------- | | Net revenues | $583,992 | $657,609 | $538,075 | $448,059 | $589,669 | | Operating costs and expenses | 458,180 | 531,852 | 449,898 | 370,409 | 512,407 | | Operating income | 125,812 | 125,757 | 88,177 | 77,650 | 77,262 | | Net income attributable to partners | $96,749 | $90,182 | $69,409 | $62,804 | $66,848 | | Limited partners' interest in net income | $63,669 | $64,639 | $50,980 | $50,611 | $61,685 | | Net income per limited partner unit (Common - basic) | $2.61 | $2.65 | $2.09 | $2.08 | $2.55 | | Cash distributions per limited partner unit | $3.440 | $3.120 | $2.835 | $2.575 | $2.240 | Balance Sheet Data (2015-2019, in thousands) | Metric | 2019 | 2018 | 2017 | 2016 | 2015 | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Property, plant and equipment, net | $295,044 | $312,562 | $255,068 | $251,029 | $253,848 | | Total assets | 744,447 | 624,593 | 443,530 | 415,547 | 375,288 | | Total debt, including current maturities | 833,110 | 700,430 | 422,649 | 392,600 | 351,600 | | Total liabilities | 895,566 | 759,416 | 472,755 | 428,831 | 386,306 | | Total deficit | (151,119) | (134,823) | (29,225) | (13,284) | (11,018) | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) MD&A reviews the Partnership's financial performance, strategies, and market trends, aiming for stable cash flows and distribution growth through acquisitions and asset optimization, with 2019 seeing decreased net revenues but increased net income from equity investments - The Partnership's business consists of two reportable segments: Pipelines and Transportation, and Wholesale Marketing and Terminalling[404](index=404&type=chunk)[405](index=405&type=chunk) - Key business strategies include generating stable cash flow through long-term, fee-based contracts, growing the business via strategic acquisitions and expansion projects (including joint ventures), engaging in mutually beneficial transactions with Delek Holdings, and optimizing existing assets while expanding the customer base[411](index=411&type=chunk)[412](index=412&type=chunk)[413](index=413&type=chunk)[414](index=414&type=chunk)[415](index=415&type=chunk)[416](index=416&type=chunk)[417](index=417&type=chunk) - Net revenues decreased by **$73.6 million** (**11.2%**) in 2019 compared to 2018, primarily due to lower average volumes and sales prices of gasoline and diesel in West Texas marketing operations[482](index=482&type=chunk)[483](index=483&type=chunk) - Operating expenses increased by **$15.4 million** (**26.2%**) in 2019, driven by **$7.1 million** in cleanup costs for a diesel fuel release near Sulphur Springs, Texas, and higher allocated contract and employee costs[489](index=489&type=chunk) - Income from equity method investments increased by **$13.6 million** (**218.3%**) in 2019, primarily due to the addition of the Red River Pipeline Joint Venture and increased income from other joint ventures (Andeavor Logistics and CP LLC)[496](index=496&type=chunk) Forward-Looking Statements Business Overview Our Reporting Segments and Assets 2019 Developments Business Strategies Commercial Agreements with Delek Holdings Other Transactions How We Evaluate Our Operations Market Trends Non-GAAP Measures Results of Operations Non-GAAP Reconciliations Critical Accounting Policies and Estimates Consolidated Results of Operations - Comparison of the Year Ended December 31, 2019 versus the Year Ended December 31, 2018 Operating Segments Pipelines and Transportation Segment Wholesale Marketing and Terminalling Segment [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=79&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The Partnership faces market risks from commodity price fluctuations and interest rate changes on floating-rate debt, with a 1% rate change impacting interest expense by $5.9 million, and LIBOR transition posing future borrowing cost risks - The Partnership's revenues and cash flows are sensitive to changes in commodity prices (crude oil, refined products, ethanol) and interest rates[564](index=564&type=chunk)[565](index=565&type=chunk) - A hypothetical **1%** change in interest rates on floating-rate debt outstanding as of December 31, 2019, would change interest expense by approximately **$5.9 million**[565](index=565&type=chunk) - The discontinuation of LIBOR after 2021 poses a risk, as the transition to an alternative reference rate could materially impact borrowing costs on variable rate indebtedness[566](index=566&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=80&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This item incorporates by reference the financial statements and supplementary data from page F-1 of this Annual Report on Form 10-K - The information required by Item 8 is incorporated by reference to the section beginning on page F-1[568](index=568&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=80&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) There have been no changes in or disagreements with accountants on accounting and financial disclosure - No changes in and disagreements with accountants on accounting and financial disclosure[568](index=568&type=chunk) [Item 9A. Controls and Procedures](index=80&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2019, with no material changes during the quarter - Disclosure controls and procedures were evaluated and deemed effective as of December 31, 2019[569](index=569&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2019, based on the COSO framework[572](index=572&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended December 31, 2019[573](index=573&type=chunk) [Item 9B. Other Information](index=80&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) There is no other information to report under this item - No other information to report[574](index=574&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=81&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE) Delek Logistics GP, LLC, the general partner, is controlled by Delek Holdings, appointing officers and directors, with the Board comprising eight members, a majority being independent, and committees overseeing governance and executive incentives - Delek Logistics GP, LLC, the general partner, is an indirect subsidiary of Delek Holdings, which controls its officers and directors[577](index=577&type=chunk) - The Board of Directors has eight members, with five qualifying as independent directors under SEC and NYSE rules[580](index=580&type=chunk) - Executive officers of the general partner are employees of Delek Holdings; most devote less than **50%** of their time to the Partnership's business, except for Mr. Sakazi[582](index=582&type=chunk) - The Board has an Audit Committee, Conflicts Committee, and EHS Committee, all composed of independent directors[606](index=606&type=chunk)[609](index=609&type=chunk)[613](index=613&type=chunk) - The Conflicts Committee administers the Long-Term Incentive Plan (LTIP) for awards to executives, aligning their interests with unitholders[616](index=616&type=chunk) [Item 11. Executive Compensation](index=86&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION) Executive officers are compensated by Delek Holdings via long-term incentives under the LTIP, with no 2019 equity awards for NEOs, while non-officer directors receive cash retainers and annual phantom unit awards - Executive officers are employees of Delek Holdings and do not receive traditional fixed or discretionary compensation directly from the Partnership[621](index=621&type=chunk)[626](index=626&type=chunk) - Executive compensation is primarily through long-term incentive awards (phantom units) under the LTIP, administered by the Conflicts Committee, to align interests with unitholders[627](index=627&type=chunk)[628](index=628&type=chunk) - No plan-based equity awards were granted to NEOs in 2019, and no outstanding equity awards were held by NEOs at December 31, 2019[641](index=641&type=chunk)[642](index=642&type=chunk)[643](index=643&type=chunk) - Compensated Directors (non-officer/employee directors) receive cash retainers for Board and committee service, plus an annual equity award of phantom units[651](index=651&type=chunk) Compensation of Directors in 2019 | Name | Fees Earned or Paid in Cash ($) | Stock Awards ($) | Total ($) | | :-------------------- | :------------------------------ | :--------------- | :-------- | | Charles J. Brown, III | 87,000 | 99,991 | 186,991 | | Francis C. D'Andrea | 90,900 | 99,991 | 190,891 | | Eric D. Gadd | 88,100 | 99,991 | 188,091 | | Ron W. Haddock | 78,900 | 99,991 | 178,891 | | Reuven Spiegel | 96,500 | 99,991 | 196,491 | [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=90&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) As of February 21, 2020, Delek US Holdings, Inc. beneficially owned 62.7% of common units and 100% of general partner units, with other significant holders and 582,505 securities available for future issuance under equity compensation plans Security Ownership of Certain Beneficial Owners and Management (as of Feb 21, 2020) | Name of Beneficial Owner | Common Units () | Common Units (%) | General Partner Units () | General Partner Units (%) | Common Stock Delek US Holdings, Inc. () | Common Stock Delek US Holdings, Inc. (%) | | :-------------------------------- | :--------------- | :--------------- | :------------------------ | :------------------------ | :--------------------------------------- | :--------------------------------------- | | Delek US Holdings, Inc. | 15,294,046 | 62.7 | 498,482 | 100.0 | n/a | n/a | | Tortoise Capital Advisors, L.L.C. | 60,250 | 7.2 | — | n/a | n/a | n/a | | Ezra Uzi Yemin | 267,522 | 1.1 | — | n/a | 761,124 | 1.0 | | Assaf Ginzburg | 16,510 | * | — | n/a | 33,641 | * | | Frederec Green | 68,552 | * | — | n/a | 125,085 | * | Equity Compensation Plan Information (as of Dec 31, 2019) | Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance | | :------------------------------------------------------- | :---------------------------------------------------------------------------------------- | :---------------------------------------------------------- | :----------------------------------------------------------- | | Equity compensation plans approved by security holders | 582,505 | N/A | 87,310 | | Equity compensation plans not approved by security holders | — | N/A | — | | TOTAL | 582,505 | N/A | 87,310 | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=92&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) The Partnership has significant related party transactions with Delek Holdings due to its majority ownership, including cash distributions and commercial agreements, governed by the Omnibus Agreement and a formal related party transactions policy - Delek Holdings and its affiliates hold a **63.4%** ownership interest in the Partnership, leading to numerous related party transactions[667](index=667&type=chunk) - In 2019, **$83.0 million** of the **$113.7 million** in total cash distributions were paid to Delek Holdings and the general partner, including incentive distribution rights[671](index=671&type=chunk) - The Partnership has long-term, fee-based commercial agreements with Delek Holdings for various logistics and marketing services, with minimum throughput commitments[673](index=673&type=chunk) - The Omnibus Agreement outlines non-compete clauses, a right of first offer for Delek Holdings' logistics assets, reimbursement for certain operating and capital expenditures, and indemnification for environmental, title, and tax matters[674](index=674&type=chunk) - The Board has a formal written related party transactions policy, generally requiring approval by the Board or the Conflicts Committee for transactions exceeding **$2.5 million** annually or those outside the ordinary course of business[681](index=681&type=chunk)[684](index=684&type=chunk) [Item 14. Principal Accountant Fees and Services](index=95&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES) Ernst & Young LLP served as the independent auditor, with audit fees of $694,050 in 2019 and audit-related fees of $54,622, all pre-approved by the Audit Committee to ensure independence Principal Accountant Fees (in USD) | Fee Type | 2019 | 2018 | | :---------------- | :-------- | :-------- | | Audit fees | $694,050 | $677,525 | | Audit-related fees | $54,622 | $81,447 | | Tax fees | $0 | $0 | | All other fees | $0 | $0 | - All services performed by Ernst & Young LLP were pre-approved by the Audit Committee, which has a policy to ensure auditor independence[691](index=691&type=chunk)[692](index=692&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=98&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists financial statements, schedules, and exhibits filed with the Annual Report on Form 10-K, including organizational documents, commercial agreements, and certifications - The section includes the Index to Financial Statements and Schedule, and a list of exhibits[696](index=696&type=chunk) - Exhibits include organizational documents (Certificate of Limited Partnership, Partnership Agreement), debt instruments (Indenture for 2025 Notes, Credit Agreement), commercial agreements with Delek Holdings and third parties, and equity compensation plans[699](index=699&type=chunk)[700](index=700&type=chunk) - Certifications by the Chief Executive Officer and Chief Financial Officer, and the Report of Independent Registered Public Accounting Firm for Red River Pipeline Company LLC are also filed as exhibits[703](index=703&type=chunk) Financial Statements [Reports of Independent Registered Public Accounting Firm](index=103&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firm) [Consolidated Balance Sheets](index=105&type=section&id=Consolidated%20Balance%20Sheets) [Consolidated Statements of Income and Comprehensive Income](index=106&type=section&id=Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) [Consolidated Statements of Partners' Equity (Deficit)](index=107&type=section&id=Consolidated%20Statements%20of%20Partners%27%20Equity%20%28Deficit%29) [Consolidated Statements of Cash Flows](index=108&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) [Notes to Consolidated Financial Statements](index=110&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) 1. General 2. Accounting Policies 3. Acquisitions 4. Related Party Transactions 5. Revenues 6. Net Income Per Unit 7. Inventory 8. Property, Plant and Equipment 9. Goodwill 10. Other Intangible Assets 11. Long-Term Obligations 12. Equity 13. Equity Based Compensation 14. Equity Method Investments 15. Segment Data 16. Income Taxes 17. Commitments and Contingencies 18. Leases 19. Selected Quarterly Financial Data (Unaudited) 20. Subsequent Events This section presents the audited consolidated financial statements of Delek Logistics Partners, LP for 2017-2019, including reports, balance sheets, income statements, equity statements, cash flows, and detailed notes on financial position and policies - The consolidated financial statements include the balance sheets as of December 31, 2019 and 2018, and statements of income, partners' equity, and cash flows for the three years ended December 31, 2019[708](index=708&type=chunk) - Ernst & Young LLP issued an unqualified opinion on the financial statements and the effectiveness of internal control over financial reporting as of December 31, 2019[708](index=708&type=chunk)[710](index=710&type=chunk)[716](index=716&type=chunk) - The financial statements are prepared in conformity with U.S. GAAP and include estimates and assumptions that affect reported amounts[740](index=740&type=chunk) Item 16. Form 10-K Summary This item states that there is no Form 10-K Summary - No Form 10-K Summary is provided[916](index=916&type=chunk) Signatures The report is signed by Delek Logistics GP, LLC's Director, EVP, and CFO, Assaf Ginzburg, along with the Chairman and other directors, affirming compliance with the Securities Exchange Act of 1934 - The report is signed by Assaf Ginzburg, Director, Executive Vice President and Chief Financial Officer of Delek Logistics GP, LLC, on behalf of Delek Logistics Partners, LP[920](index=920&type=chunk) - Signatures also include Ezra Uzi Yemin, Chairman of the Board of Directors and Chief Executive Officer, and other directors, affirming compliance with the Securities Exchange Act of 1934[920](index=920&type=chunk)

Delek Logistics Partners, LP (NYSE:DKL) Q4 2019 Earnings Conference Call February 26, 2020 8:30 AM ET Company Participants Blake Fernandez - SVP, IR and Market Intelligence Uzi Yemin - Chairman and CEO Assi Ginzburg - CFO Conference Call Participants Operator Ladies and gentlemen, thank you for standing by, and welcome to the Delek Logistics Fourth Quarter Earnings Conference Call. At this time, all participants' lines are in a listen-only mode. After the speakers’ presentation, there will be a question and ...

Financial Performance - Net revenues for the three months ended September 30, 2019, were $137,556,000, a decrease of 16% from $164,110,000 for the same period in 2018[14] - Operating income for the three months ended September 30, 2019, was $34,729,000, up from $32,624,000 in the prior year, indicating an increase of about 6.4%[14] - Net income attributable to partners for the three months ended September 30, 2019, was $30,530,000, compared to $23,326,000 in the same period last year, marking an increase of about 31%[14] - Net income attributable to partners for the nine months ended September 30, 2019, was $75,112,000, an increase of 9.5% compared to $68,903,000 for the same period in 2018[21] - Net income for the three months ended September 30, 2019, was $14,342 million, representing a 64.5% increase from $8,709 million in the prior year[96] - Net income attributable to partners for the three months ended September 30, 2019, was $30.530 million, compared to $23.326 million for the same period in 2018, reflecting a year-over-year increase of 31.6%[86] Assets and Liabilities - Total assets increased to $767,807,000 as of September 30, 2019, compared to $624,593,000 at December 31, 2018, representing a growth of approximately 23%[10] - Long-term debt rose to $840,765,000 as of September 30, 2019, compared to $700,430,000 at December 31, 2018, reflecting an increase of approximately 20%[10] - Total current liabilities decreased to $32,341,000 as of September 30, 2019, down from $36,505,000 at December 31, 2018, a reduction of approximately 11.9%[10] - The equity method investments increased significantly to $246,998,000 as of September 30, 2019, from $104,770,000 at December 31, 2018, representing a growth of approximately 135%[10] - Current assets increased to $11,618 million as of September 30, 2019, from $6,594 million as of December 31, 2018, reflecting a significant growth[94] Cash Distributions - Cash distributions per limited partner unit increased to $0.880 for the three months ended September 30, 2019, compared to $0.790 for the same period in 2018[14] - The total cash distributions for the three months ended September 30, 2019, were $30.379 million, compared to $25.960 million for the same period in 2018, representing an increase of 5.419 million[90] - Quarterly cash distributions in August 2019 totaled $28.9 million, an increase from $25.0 million in August 2018, representing a year-over-year growth of 11.6%[52] - Cash distributions for the nine months ended September 30, 2019, totaled $83,271,000, compared to $71,845,000 for the same period in 2018, reflecting a 15.9% increase[21] - The Partnership's cash distribution rate is set at $0.88 per unit for Q3 2019, equating to an annualized rate of $3.52 per unit[177] Revenue and Expenses - Total revenue for the three months ended September 30, 2019, was $137.6 million, with lease revenue from affiliates contributing $60.1 million[55] - Revenues for the three months ended September 30, 2019, were $66.6 million, compared to $63.8 million for the same period in 2018, reflecting a year-over-year increase of 4.3%[51] - The Partnership's operating and maintenance expenses for the three months ended September 30, 2019, were $18.3 million, compared to $10.3 million in the same period of 2018, reflecting an increase of 77.5%[51] - General and administrative expenses for the three months ended September 30, 2019, were $4.3 million, significantly higher than $0.8 million in the same period of 2018[51] - Total operating costs and expenses for the three months ended September 30, 2019, were $102.8 million, a decrease of approximately 21.7% from $131.5 million in the same period of 2018[206] Investments and Acquisitions - The company contributed $124.7 million to Red River for a 33% membership interest, with an additional $3.5 million for an expansion project expected to complete in the first half of 2020[94] - The company incurred equity method investment contributions of $137,361,000 during the nine months ended September 30, 2019, compared to $172,000 in the same period of 2018[21] - The total purchase price for the Big Spring Logistic Assets Acquisition was $170.8 million, financed through borrowings under the Partnership's revolving credit facility[36] - A contract intangible asset related to the Marketing Contract Intangible Acquisition was recorded at $144.2 million, amortized over a twenty-year period[39] Debt and Financing - The DKL Credit Facility was increased from $700 million to $850 million, with an accordion feature allowing for an increase to $1 billion[70] - As of September 30, 2019, the outstanding borrowings under the DKL Credit Facility amounted to $596.3 million, with unused credit commitments of $253.7 million[73] - The weighted average interest rate for borrowings under the DKL Credit Facility was approximately 4.9% as of September 30, 2019[72] - The Partnership issued $250.0 million in aggregate principal amount of 6.75% senior notes due 2025, with an effective interest rate of approximately 7.2% as of September 30, 2019[80] Regulatory and Environmental Matters - The company expects maintenance and remediation efforts for the Sulphur Springs Release to cost between $4.0 million and $6.0 million[121] - The company anticipates that continuing capital investments will be required to comply with evolving environmental and safety regulations[114] - The company experienced five crude oil releases in 2019 and six in 2018, with remediation efforts at various stages of completion[118] - The company expects regulatory closure for some release sites by the end of 2019, with a few remaining sites expected to close in 2020[118] Market and Operational Insights - The Partnership's operations are significantly influenced by crude oil prices, which affect drilling activity and capital spending in the midstream energy sector[178] - A substantial majority of the Partnership's revenue is derived from long-term commercial agreements with Delek Holdings, which include minimum volume commitments[163] - The Partnership's revenue generation is closely tied to the volumes of crude oil and refined products handled, influenced by supply and demand dynamics[170] - The Partnership manages operating and maintenance expenses to maximize profitability, which include costs associated with terminals and pipelines[173]

Delek Logistics Partners (NYSE:DKL) Q3 2019 Earnings Conference Call November 5, 2019 8:30 AM ET Company Participants Uzi Yemin - President, Chief Executive Officer Assaf Ginzburg - Executive Vice President, Chief Financial Officer Blake Fernandez - Senior Vice President, Investor Relations and Market Intelligence Conference Call Participants Operator Ladies and gentlemen, thank you for standing by, and welcome to the third quarter earnings call for Delek Logistics Partners LP. At this time, all participan ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35721 DELEK LOGISTICS PARTNERS, LP (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpo ...

Delek Logistics Partners, LP (NYSE:DKL) Q2 2019 Results Conference Call August 5, 2019 8:30 AM ET Company Participants Keith Johnson - Investor Relations Uzi Yemin - Chairman and Chief Executive Officer Assaf Ginzburg - Chief Financial Officer Blake Fernandez - Senior Vice President of Investor Relations Conference Call Participants Spiro Dounis - Credit Suisse Justin Jenkins - Raymond James Ned Baramov - Wells Fargo Operator Good day. My name is Jay and I will be your conference operator for today. At this ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income, equity, cash flows, and related notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (in thousands) | Metric | March 31, 2019 (in thousands) | December 31, 2018 (in thousands) | | :-------------------------- | :---------------------------- | :------------------------------- | | **Assets** | | | | Total current assets | $34,192 | $32,568 | | Property, plant & equipment, net | $306,879 | $312,562 | | Equity method investments | $107,830 | $104,770 | | Total assets | $640,208 | $624,593 | | **Liabilities & Deficit** | | | | Total current liabilities | $39,020 | $36,505 | | Total non-current liabilities | $743,093 | $722,911 | | Total deficit | $(141,905) | $(134,823) | | Total liabilities & deficit | $640,208 | $624,593 | [Condensed Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Income Statement Summary (in thousands) | Metric | Three months ended March 31, 2019 (in thousands) | Three months ended March 31, 2018 (in thousands) | | :----------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Net revenues | $152,483 | $167,921 | | Total operating costs and expenses | $123,372 | $140,644 | | Operating income | $29,111 | $27,277 | | Interest expense, net | $11,301 | $8,062 | | Income from equity method investments | $(1,951) | $(858) | | Income before income tax expense | $19,761 | $20,073 | | Net income attributable to partners | $19,696 | $19,995 | | Limited partners' interest in net income | $12,426 | $14,365 | | Net income per limited partner unit (basic)| $0.51 | $0.59 | | Cash distributions per limited partner unit| $0.820 | $0.750 | [Condensed Consolidated Statements of Partner's Equity (Deficit)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Partner's%20Equity%20(Deficit)) Partner's Equity Summary (in thousands) | Metric | March 31, 2019 (in thousands) | December 31, 2018 (in thousands) | | :---------------------------------------- | :---------------------------- | :------------------------------- | | Balance at period start | $(134,823) | $(29,225) | | Cash distributions | $(26,919) | $(22,778) | | Net income attributable to partners | $19,696 | $19,995 | | Unit-based compensation | $144 | $147 | | Balance at period end | $(141,905) | $(130,646) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (in thousands) | Metric | Three months ended March 31, 2019 (in thousands) | Three months ended March 31, 2018 (in thousands) | | :---------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Net cash provided by operating activities | $26,205 | $23,656 | | Net cash used in investing activities | $(3,766) | $(219,097) | | Net cash (used in) provided by financing activities | $(21,605) | $195,553 | | Net increase in cash and cash equivalents | $834 | $112 | | Cash and cash equivalents at period end | $5,356 | $4,787 | | Cash paid for interest | $5,997 | $3,009 | | Cash paid for income taxes | $58 | $0 | [Note 1 - Organization and Basis of Presentation](index=11&type=section&id=Note%201%20-%20Organization%20and%20Basis%20of%20Presentation) This note details the Partnership's formation, key acquisitions, and adoption of new accounting standards - The Partnership is a Delaware limited partnership formed in April 2012 by Delek US Holdings, Inc. (Delek Holdings) and its general partner, Delek Logistics GP, LLC[25](index=25&type=chunk) - Effective March 1, 2018, the Partnership acquired the Big Spring Logistic Assets from Delek Holdings, including assets near the Big Spring Refinery and a light products distribution terminal in Stephens County, Oklahoma[26](index=26&type=chunk) - The company adopted ASU 2017-12 (Derivatives and Hedging) and ASU 2016-02 (Leases) in Q1 2019. The adoption of ASU 2016-02 resulted in the recognition of a **$20.2 million** lease liability and a corresponding right-of-use asset, with no material impact on the income statement[33](index=33&type=chunk)[37](index=37&type=chunk) [Note 2 - Acquisitions](index=13&type=section&id=Note%202%20-%20Acquisitions) This note details the acquisition of Big Spring Logistic Assets and a Marketing Contract Intangible, including financing and accounting - On March 1, 2018, the Partnership acquired the Big Spring Logistic Assets from Delek Holdings for **$170.8 million**, financed through its revolving credit facility, including storage tanks, terminals, pipelines, and saltwells[40](index=40&type=chunk)[41](index=41&type=chunk) - The acquisition was treated as a common control transaction, with assets recorded at Delek Holdings' historical carrying value of **$72.0 million**, and the excess cash paid (**$98.8 million**) recorded as a reduction in equity[43](index=43&type=chunk)[44](index=44&type=chunk) - Concurrent with the Big Spring acquisition, the Partnership acquired a Marketing Contract Intangible for **$144.2 million**, amortized over twenty years, for marketing refined products[47](index=47&type=chunk) [Note 3 - Related Party Transactions](index=15&type=section&id=Note%203%20-%20Related%20Party%20Transactions) This note outlines the Partnership's long-term, fee-based commercial agreements and other transactions with Delek Holdings - The Partnership has long-term, fee-based commercial agreements with Delek Holdings for crude oil gathering, transportation, storage, and marketing services, with initial terms of **five to ten years** and annual inflation-indexed fee adjustments[48](index=48&type=chunk) - New agreements related to the Big Spring Logistic Assets Acquisition include the Logistics Agreement, Asphalt Services Agreement, and Marketing Agreement, all with initial **ten-year terms** and annual inflation adjustments[50](index=50&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - Under the Omnibus Agreement, the Partnership pays an annual fee of **$3.9 million** to Delek Holdings for centralized corporate services and is reimbursed for certain capital expenditures and asset failure costs, with **$0.8 million** reimbursed for capital expenditures and **$3.5 million** for asset failures in Q1 2019[55](index=55&type=chunk)[56](index=56&type=chunk) Related Party Transaction Summary (in thousands) | Transaction Type | Three Months Ended March 31, 2019 (in thousands) | Three Months Ended March 31, 2018 (in thousands) | | :-------------------------------- | :----------------------------------------------- | :----------------------------------------------- | | Revenues from Affiliates | $62,965 | $61,644 | | Purchases from Affiliates | $79,434 | $83,401 | | Operating and maintenance expenses| $9,925 | $7,489 | | General and administrative expenses| $1,370 | $957 | [Note 4 - Revenues](index=19&type=section&id=Note%204%20-%20Revenues) This note details revenue sources from logistics services and marketing, primarily from long-term agreements with Delek Holdings - Revenue is generated from fees for gathering, transporting, offloading, storing crude oil and refined products, and marketing refined products, with a significant portion from long-term commercial agreements with Delek Holdings that include annual inflation-indexed fee adjustments[64](index=64&type=chunk) - The majority of commercial agreements with Delek Holdings are classified as leases under ASC 842, with **$257.7 million** of net property, plant, and equipment subject to operating leases as of March 31, 2019[65](index=65&type=chunk) Revenue Breakdown by Type (Q1 2019, in thousands) | Revenue Type | Pipelines and Transportation (in thousands) | Wholesale Marketing and Terminalling (in thousands) | Consolidated (in thousands) | | :-------------------------------- | :------------------------------------------ | :-------------------------------------------------- | :-------------------------- | | Service Revenue - Third Party | $3,974 | $120 | $4,094 | | Product Revenue - Third Party | — | $85,424 | $85,424 | | Product Revenue - Affiliate | — | $9,386 | $9,386 | | Lease Revenue - Affiliate | $36,659 | $16,920 | $53,579 | | **Total Revenue (Q1 2019)** | **$40,633** | **$111,850** | **$152,483** | Expected Revenue on Remaining Performance Obligations (in thousands) | Period | Expected Revenue on Remaining Performance Obligations (in thousands) | | :-------------------------------- | :----------------------------------------------------------------- | | Remainder of 2019 | $126,236 | | 2020 | $167,965 | | 2021 | $167,714 | | 2022 | $166,587 | | 2023 and thereafter | $474,200 | | **Total expected revenue** | **$1,102,702** | [Note 5 - Net Income Per Unit](index=20&type=section&id=Note%205%20-%20Net%20Income%20Per%20Unit) This note explains the two-class method for calculating net income per unit, allocating earnings to common units, general partner units, and IDRs - The Partnership uses the two-class method for calculating net income per unit, allocating net income to common units, general partner units, and Incentive Distribution Rights (IDRs)[72](index=72&type=chunk) Net Income Per Unit Calculation (in thousands) | Metric | Three months ended March 31, 2019 | Three months ended March 31, 2018 | | :---------------------------------------- | :-------------------------------- | :-------------------------------- | | Net income attributable to partners | $19,696 | $19,995 | | General partner's earnings | $7,270 | $5,630 | | Limited partners' earnings on common units| $12,426 | $14,365 | | Common units - (basic) EPS | $0.51 | $0.59 | | Common units - (diluted) EPS | $0.51 | $0.59 | | Weighted average common units (basic) | 24,407,168 | 24,382,633 | | Weighted average common units (diluted) | 24,416,058 | 24,393,746 | [Note 6 - Inventory](index=22&type=section&id=Note%206%20-%20Inventory) This note describes the valuation of refined petroleum product inventory at the lower of cost or net realizable value using FIFO Inventory Value (in thousands) | Metric | March 31, 2019 (in thousands) | December 31, 2018 (in thousands) | | :---------- | :---------------------------- | :------------------------------- | | Inventory | $6,669 | $5,491 | - Inventory consists of refined petroleum products, valued at the lower of cost or net realizable value using a first-in, first-out (FIFO) basis, with nominal charges recognized in Q1 2019 and Q1 2018[78](index=78&type=chunk) [Note 7 - Long-Term Obligations](index=22&type=section&id=Note%207%20-%20Long-Term%20Obligations) This note details the Partnership's senior secured revolving credit facility and 6.75% senior notes due 2025 - On September 28, 2018, the Partnership amended its DKL Credit Facility, increasing commitments from **$700.0 million to $850.0 million**, with an accordion feature up to **$1.0 billion**, maturing on September 28, 2023[80](index=80&type=chunk)[82](index=82&type=chunk) - As of March 31, 2019, the Partnership had **$461.2 million** in outstanding borrowings under the DKL Credit Facility, with **$388.8 million** in unused credit commitments and a weighted average interest rate of approximately **5.1%**[82](index=82&type=chunk)[83](index=83&type=chunk) - The Partnership has **$250.0 million** in aggregate principal amount of **6.75%** senior notes due 2025, which are general unsecured senior obligations redeemable under specific conditions[84](index=84&type=chunk)[85](index=85&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[91](index=91&type=chunk) [Note 8 - Equity](index=24&type=section&id=Note%208%20-%20Equity) This note details the Partnership's ownership structure, including Delek Holdings' interests, public unitholdings, and cash distributions - As of March 31, 2019, Delek Holdings owned a **61.4%** limited partner interest (**15,294,046 common units**) and a **94.6%** interest in the general partner (**498,110 general partner units**), with public unitholders holding **9,113,359 common units**[92](index=92&type=chunk) Units Outstanding | Unit Type | December 31, 2018 | March 31, 2019 | | :------------------------ | :---------------- | :------------- | | Common - Public | 9,109,807 | 9,113,359 | | Common - Delek Holdings | 15,294,046 | 15,294,046 | | General Partner | 498,038 | 498,110 | | **Total Units Outstanding** | **24,901,891** | **24,905,515** | - The general partner holds Incentive Distribution Rights (IDRs) entitling it to increasing percentages, up to a maximum of **48.0%**, of cash distributed from operating surplus exceeding **$0.43125 per unit per quarter**[100](index=100&type=chunk) Cash Distributions (in thousands) | Distribution Metric | Q1 2019 (in thousands) | Q1 2018 (in thousands) | | :---------------------------------------- | :--------------------- | :--------------------- | | Total cash distributions | $27,438 | $23,997 | | General partner's distributions (including IDRs) | $7,424 | $5,710 | | Common limited partners' distributions | $20,014 | $18,287 | | Cash distributions per limited partner unit | $0.820 | $0.750 | [Note 9 - Equity Based Compensation](index=27&type=section&id=Note%209%20-%20Equity%20Based%20Compensation) This note outlines unit-based compensation expense and unrecognized compensation cost for non-vested equity arrangements - The Partnership incurred approximately **$0.1 million** in unit-based compensation expense for both Q1 2019 and Q1 2018, included in general and administrative expenses[105](index=105&type=chunk) - As of March 31, 2019, **$0.1 million** of unrecognized compensation cost related to non-vested equity-based arrangements is expected to be recognized over a weighted-average period of **0.2 years**[107](index=107&type=chunk) [Note 10 - Equity Method Investments](index=28&type=section&id=Note%2010%20-%20Equity%20Method%20Investments) This note details the Partnership's equity method investments in joint ventures operating crude oil pipeline systems - The Partnership holds **50%** interest in CP LLC and **33%** interest in Andeavor Logistics (formerly Rangeland Energy II, LLC), both joint ventures operating crude oil pipeline systems[108](index=108&type=chunk) Equity Method Investment Details (in thousands) | Metric | March 31, 2019 (in thousands) | December 31, 2018 (in thousands) | | :---------------------- | :---------------------------- | :------------------------------- | | Investment balance | $107,830 | $104,770 | | Current assets (100%) | $21,948 | $15,450 | | Non-current assets (100%) | $250,977 | $240,852 | | Current liabilities (100%)| $12,719 | $4,362 | | Revenues (100%) | $9,114 | $7,990 | | Net Income (100%) | $4,417 | $2,712 | [Note 11 - Segment Data](index=28&type=section&id=Note%2011%20-%20Segment%20Data) This note presents financial data for the Partnership's two reportable segments, measured by contribution margin - The Partnership operates in two reportable segments: (i) pipelines and transportation, and (ii) wholesale marketing and terminalling, with performance measured by contribution margin[112](index=112&type=chunk)[113](index=113&type=chunk)[116](index=116&type=chunk) Segment Performance (in thousands) | Segment Performance (in thousands) | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | **Pipelines and Transportation** | | | | Total Net Revenues | $40,633 | $33,713 | | Segment Contribution Margin | $24,232 | $19,650 | | Capital Spending | $424 | $1,408 | | **Wholesale Marketing and Terminalling** | | | | Total Net Revenues | $111,850 | $134,208 | | Segment Contribution Margin | $15,928 | $16,662 | | Capital Spending | $480 | $789 | | **Consolidated** | | | | Total Net Revenues | $152,483 | $167,921 | | Contribution Margin | $40,160 | $36,312 | | Operating Income | $29,111 | $27,277 | | Capital Spending | $904 | $2,197 | Segment Assets and Depreciation (in thousands) | Segment Assets (in thousands) | March 31, 2019 | December 31, 2018 | | :--------------------------------- | :------------- | :---------------- | | Pipelines and transportation | $401,833 | $387,333 | | Wholesale marketing and terminalling | $238,375 | $237,260 | | **Total assets** | **$640,208** | **$624,593** | | **Property, plant & equipment, net (March 31, 2019)** | | | | Pipelines and Transportation | $247,043 | | | Wholesale Marketing and Terminalling | $59,836 | | | **Consolidated** | **$306,879** | | | Depreciation expense (Q1 2019) | $5,241 | | | Wholesale Marketing and Terminalling | $1,333 | | | **Consolidated** | **$6,574** | | [Note 12 - Fair Value Measurements](index=32&type=section&id=Note%2012%20-%20Fair%20Value%20Measurements) This note describes the Partnership's application of ASC 820 for fair value measurements, categorizing assets and liabilities by input observability - The Partnership applies ASC 820 for fair value measurements, categorizing assets and liabilities into Level 1, 2, or 3 based on input observability, with commodity derivatives generally classified as Level 2[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) Fair Value Hierarchy of Derivatives (in thousands) | Fair Value Hierarchy (in thousands) | March 31, 2019 | December 31, 2018 | | :---------------------------------- | :------------- | :---------------- | | **Assets** | | | | Commodity derivatives (Level 2) | $61 | $186 | | Total assets | $61 | $186 | | **Liabilities** | | | | Commodity derivatives (Level 2) | $(87) | $(2) | | Net liabilities | $(26) | $184 | [Note 13 - Derivative Instruments](index=33&type=section&id=Note%2013%20-%20Derivative%20Instruments) This note details the Partnership's use of forward fuel contracts to hedge against price fluctuations for refined product purchases - The Partnership uses forward fuel contracts to hedge against price fluctuations for physical purchases of refined products, typically with terms less than **90 days**, with changes in fair value marked to market as hedge accounting was not elected[130](index=130&type=chunk)[131](index=131&type=chunk)[134](index=134&type=chunk) Derivative Fair Values (in thousands) | Derivative Type (in thousands) | March 31, 2019 (Assets) | March 31, 2019 (Liabilities) | December 31, 2018 (Assets) | December 31, 2018 (Liabilities) | | :----------------------------- | :---------------------- | :--------------------------- | :------------------------- | :------------------------------ | | Commodity derivatives | $61 | $(87) | $186 | $(2) | | Total gross fair value | $61 | $(87) | $186 | $(2) | | Net fair value of derivatives | $244 | $0 | $590 | $0 | Recognized Gains (Losses) from Derivatives (in thousands) | Recognized Gains (Losses) (in thousands) | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Commodity derivatives (Cost of materials and other) | $(1,014) | $1,583 | [Note 14 - Income Taxes](index=34&type=section&id=Note%2014%20-%20Income%20Taxes) This note clarifies the Partnership's federal income tax status and its subjection to entity-level tax in Tennessee and Texas - The Partnership is not a taxable entity for federal income tax purposes, with each partner accounting for its share of income/loss, but is subject to entity-level tax in Tennessee and Texas[136](index=136&type=chunk)[137](index=137&type=chunk) [Note 15 - Commitments and Contingencies](index=35&type=section&id=Note%2015%20-%20Commitments%20and%20Contingencies) This note addresses the Partnership's exposure to lawsuits, investigations, and claims, including environmental matters - The Partnership is subject to lawsuits, investigations, and claims, including environmental and employee-related matters, but management believes no currently pending legal proceeding will have a material adverse effect on financial statements[140](index=140&type=chunk) - The Partnership has experienced several crude oil releases, accruing **$1.1 million** for remediation as of March 31, 2019, with most expenses reimbursed by Delek Holdings under the Omnibus Agreement[144](index=144&type=chunk) - Regarding the Magnolia Release, the Partnership accrued **$2.2 million** as of March 31, 2019, for monetary penalties and other relief related to a civil action, with settlement expected in H2 2019[148](index=148&type=chunk) [Note 16 - Leases](index=37&type=section&id=Note%2016%20-%20Leases) This note details the Partnership's lease accounting policies, including short-term leases and operating lease liabilities - The Partnership leases pipeline and transportation equipment, with leases of **12 months or less** not recorded on the balance sheet and expense recognized straight-line[150](index=150&type=chunk) Lease Costs and Terms (in thousands) | Lease Metric (in thousands) | Three months ended March 31, 2019 | | :-------------------------- | :-------------------------------- | | Operating lease cost | $1,427 | | Short-term lease cost | $477 | | Total lease cost | $1,904 | | Cash paid for operating leases | $(1,427) | | Weighted-average remaining lease term | 4.2 years | | Weighted-average discount rate | 8.0% | Operating Lease Liabilities Maturity (in thousands) | Operating Lease Liabilities Maturity (in thousands) | Under ASC 842 (March 31, 2019) | Under ASC 840 (December 31, 2018) | | :-------------------------------------------------- | :----------------------------- | :-------------------------------- | | April 1 to December 31, 2019 | $4,328 | $5,755 | | 2020 | $5,659 | $5,659 | | 2021 | $5,337 | $5,337 | | 2022 | $5,031 | $5,031 | | 2023 | $2,429 | $2,429 | | Thereafter | $8 | $8 | | Total future minimum lease payments | $22,792 | $24,219 | | Less: Interest | $3,606 | | | Present value of lease liabilities | $19,186 | | [Note 17 - Subsequent Events](index=39&type=section&id=Note%2017%20-%20Subsequent%20Events) This note reports the declaration of a quarterly cash distribution of **$0.820 per unit** by the general partner's board on April 26, 2019 - On April 26, 2019, the general partner's board declared a quarterly cash distribution of **$0.820 per unit**, payable on May 14, 2019, to unitholders of record on May 7, 2019[161](index=161&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of the Partnership's financial performance, trends, and prospects, including business, segments, and liquidity Statement of Operations and Non-GAAP Measures (in thousands) | Statement of Operations Data (in thousands) | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net revenues | $152,483 | $167,921 | | Total operating costs and expenses | $123,372 | $140,644 | | Operating income | $29,111 | $27,277 | | Net income attributable to partners | $19,696 | $19,995 | | EBITDA | $39,439 | $34,736 | | Distributable cash flow | $28,957 | $27,951 | [Forward-Looking Statements](index=40&type=section&id=Forward-Looking%20Statements) This section highlights forward-looking statements reflecting current estimates and projections, subject to various risks - The report contains forward-looking statements reflecting current estimates and projections about future results, performance, prospects, and opportunities, identified by words like 'expects,' 'anticipates,' 'plans,' and 'believes'[168](index=168&type=chunk) - Key factors that could cause actual results to differ materially include dependence on Delek Holdings, commodity price fluctuations, legal actions, changes in insurance markets, growth strategies, and regulatory changes[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) [Business Overview](index=42&type=section&id=Business%20Overview) This section describes the Partnership's primary business of owning and operating crude oil and refined products logistics and marketing assets - The Partnership primarily owns and operates crude oil, intermediate, and refined products logistics and marketing assets, gathering, transporting, offloading, and storing products for Delek Holdings and third parties in the southeastern U.S. and Texas[177](index=177&type=chunk)[178](index=178&type=chunk) - A substantial majority of assets are integral to and dependent on Delek Holdings' refining operations, with many assets exclusively contracted to support its Tyler, El Dorado, and Big Spring refineries[179](index=179&type=chunk) [Our Reporting Segments and Assets](index=42&type=section&id=Our%20Reporting%20Segments%20and%20Assets) This section outlines the Partnership's two reportable segments: pipelines and transportation, and wholesale marketing and terminalling - The Partnership has two reportable segments: (i) pipelines and transportation, and (ii) wholesale marketing and terminalling[181](index=181&type=chunk) - The pipelines and transportation segment includes pipelines, tanks, offloading facilities, trucks, and ancillary assets, providing crude oil gathering and product transportation/storage services without taking ownership of products, limiting commodity price exposure[182](index=182&type=chunk)[183](index=183&type=chunk) - The wholesale marketing and terminalling segment generates revenue from marketing services for refined products from Tyler and Big Spring refineries, wholesale activity in west Texas, and terminalling services to third parties and Delek Holdings[186](index=186&type=chunk) [How We Generate Revenue](index=44&type=section&id=How%20We%20Generate%20Revenue) This section explains that revenue is generated by charging fees for logistics services and marketing, primarily through long-term agreements with Delek Holdings - Revenue is generated by charging fees to Delek Holdings and third parties for gathering, transporting, offloading, storing crude oil, and marketing/distributing intermediate and refined products, with a substantial majority of contribution margin from long-term, fee-based commercial agreements with Delek Holdings, often with minimum volume commitments and inflation-indexed fees[188](index=188&type=chunk) [Commercial Agreements with Delek Holdings](index=44&type=section&id=Commercial%20Agreements%20with%20Delek%20Holdings) This section details the numerous long-term, fee-based commercial agreements with Delek Holdings for various logistics services - The Partnership maintains numerous long-term, fee-based commercial agreements with Delek Holdings for various logistics services, including crude oil gathering, transportation, storage, marketing, terminalling, and offloading, typically with minimum quarterly volume, revenue, or throughput commitments and tariffs or fees indexed to inflation-based indices[189](index=189&type=chunk) [Other Transactions](index=44&type=section&id=Other%20Transactions) This section describes the Partnership's management of the Delek Permian Gathering Project for Delek Holdings, receiving monthly fees - Since 2018, the Partnership manages the Delek Permian Gathering Project, a **250-mile** gathering system in the Permian Basin, for Delek Holdings under a construction management and operating agreement, receiving monthly operating and construction services fees[190](index=190&type=chunk) [How We Evaluate Our Operations](index=44&type=section&id=How%20We%20Evaluate%20Our%20Operations) This section explains that operational performance is evaluated using metrics such as volumes, contribution margin, and non-GAAP measures - Operational performance is evaluated using metrics such as volumes (pipeline throughput, terminal volumes), contribution margin per barrel, operating and maintenance expenses, cost of materials and other, and non-GAAP measures like EBITDA and distributable cash flow[191](index=191&type=chunk)[192](index=192&type=chunk)[196](index=196&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) - Contribution margin is calculated as net revenues less cost of materials and other and operating expenses (excluding depreciation and amortization), with gross margin per barrel also measured for wholesale marketing[196](index=196&type=chunk)[197](index=197&type=chunk) [Financing](index=46&type=section&id=Financing) This section outlines the Partnership's intention to make quarterly cash distributions and its funding strategy for future capital expenditures - The Partnership intends to make quarterly cash distributions of **$0.82 per unit** for Q1 2019 (**$3.28 annualized**), with future capital expenditures expected to be funded primarily from operating cash flows, borrowings under the revolving credit facility, and potential equity/debt issuances[200](index=200&type=chunk) [Market Trends](index=47&type=section&id=Market%20Trends) This section discusses market trends impacting the Partnership, including crude oil and refined product prices, and RINs - Crude oil and refined product prices, after decreasing in Q4 2018, began to rebound in Q1 2019, with drilling activity in the Permian Basin driving favorable market conditions for the Partnership's assets[203](index=203&type=chunk)[205](index=205&type=chunk) - Volatility in refined product prices can impact west Texas marketing margins when selling prices do not adjust as quickly as purchase prices, and RINs generated from ethanol blending also affect results, with sales to Delek Holdings at market prices[208](index=208&type=chunk)[213](index=213&type=chunk) Average Fuel Prices (Price per gallon) | Metric (Price per gallon) | Q1 2018 (Average) | Q2 2018 (Average) | Q3 2018 (Average) | Q4 2018 (Average) | Q1 2019 (Average) | | :------------------------ | :---------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Gasoline Prices | $1.77 | $1.96 | $1.90 | $1.52 | $1.88 | | Diesel Prices | $1.93 | $2.14 | $2.01 | $1.60 | $1.88 | Average Ethanol RIN Prices (Price per RIN) | Metric (Price per RIN) | Q1 2018 (Average) | Q2 2018 (Average) | Q3 2018 (Average) | Q4 2018 (Average) | Q1 2019 (Average) | | :--------------------- | :---------------- | :---------------- | :---------------- | :---------------- | :---------------- | | Ethanol RIN Prices | $0.31 | $0.21 | $0.12 | $0.07 | $0.14 | [Contractual Obligations](index=51&type=section&id=Contractual%20Obligations) This section states no material changes to the Partnership's contractual obligations and commercial commitments in Q1 2019 - There have been no material changes to the Partnership's contractual obligations and commercial commitments during the three months ended March 31, 2019, compared to those disclosed in the Annual Report on Form 10-K[219](index=219&type=chunk) [Critical Accounting Policies](index=51&type=section&id=Critical%20Accounting%20Policies) This section identifies critical accounting policies, including impairment evaluations for assets and goodwill, with no material modifications - Critical accounting policies include evaluating impairment for property, plant and equipment and definite life intangibles, evaluating potential impairment of goodwill, and estimating environmental expenditures, with no material modifications in Q1 2019, except for the adoption of ASC 606 (Revenue from Contracts with Customers)[220](index=220&type=chunk) [Non-GAAP Measures](index=51&type=section&id=Non-GAAP%20Measures) This section explains management's use of non-GAAP measures like EBITDA and distributable cash flow to evaluate performance - Management uses non-GAAP measures like EBITDA (Earnings before interest, taxes, depreciation, and amortization) and distributable cash flow to evaluate operating segment performance and financial prospects, used by external users to assess operating performance, cash flow for distributions, debt servicing ability, and capital expenditure funding[221](index=221&type=chunk)[222](index=222&type=chunk) - EBITDA and distributable cash flow are supplemental measures and should not be considered alternatives to GAAP measures like net income or cash flow from operating activities, as they have limitations and may not be comparable to similarly titled measures of other partnerships[223](index=223&type=chunk) [Results of Operations](index=55&type=section&id=Results%20of%20Operations) This section provides a detailed comparison of the Partnership's consolidated and segment-specific financial results for Q1 2019 versus 2018 [Consolidated Results of Operations — Comparison of the three months ended March 31, 2019 compared to the three months ended March 31, 2018](index=55&type=section&id=Consolidated%20Results%20of%20Operations%20%E2%80%94%20Comparison%20of%20the%20three%20months%20ended%20March%2031%2C%202019%20compared%20to%20the%20three%20months%20ended%20March%2031%2C%202018) This section provides a detailed comparison of the Partnership's consolidated financial performance for Q1 2019 versus Q1 2018 Consolidated Financial Performance (in thousands) | Consolidated Results (in thousands) | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :---------------------------------- | :-------------------------------- | :-------------------------------- | | Net Revenues | $152,483 | $167,921 | | Cost of materials and other | $96,265 | $119,032 | | Operating expenses | $16,058 | $12,577 | | Contribution margin | $40,160 | $36,312 | | General and administrative expenses | $4,473 | $2,975 | | Depreciation and amortization | $6,574 | $6,000 | | Operating income | $29,111 | $27,277 | - Net revenues decreased by **$15.4 million (9.2%)** due to lower average volumes and sales prices of gasoline and diesel in west Texas marketing operations, partially offset by revenues from the Big Spring Logistic Assets Acquisition[235](index=235&type=chunk)[236](index=236&type=chunk) - Cost of materials and other decreased by **$22.8 million (19.1%)** due to lower average volumes and costs of gasoline and diesel purchased in west Texas[237](index=237&type=chunk)[238](index=238&type=chunk) - Operating expenses increased by **$3.5 million (27.7%)** due to higher operating costs from the Big Spring Logistic Assets Acquisition, increased storage expenses at El Dorado Refinery, and higher allocated employee costs[241](index=241&type=chunk) - General and administrative expenses increased by **$1.5 million (50.4%)** due to higher employee-related expenses for managing projects for Delek Holdings and a higher proportion of incentive and payroll expense allocated by Delek Holdings[242](index=242&type=chunk) - Interest expense increased by **$3.2 million (40.2%)** due to increased borrowings under the DKL Credit Facility following the Big Spring Logistic Assets Acquisition and higher floating interest rates[244](index=244&type=chunk) [Pipelines and Transportation Segment](index=59&type=section&id=Pipelines%20and%20Transportation%20Segment) This section analyzes the financial performance of the Pipelines and Transportation segment, highlighting changes in net revenues and contribution margin Pipelines and Transportation Segment Performance (in thousands) | Pipelines and Transportation (in thousands) | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net Revenues | $40,633 | $33,713 | | Cost of materials and other | $5,567 | $4,441 | | Operating expenses | $10,834 | $9,622 | | Segment contribution margin | $24,232 | $19,650 | - Net revenues increased by **$6.9 million (20.5%)** due to increased revenues from Big Spring Logistic Assets Acquisition, fees from the Delek Permian Gathering Project, and trucking assets[254](index=254&type=chunk) - Segment contribution margin increased by **$4.6 million (23.3%)** driven by higher net revenues from the Big Spring Logistic Assets Acquisition, Delek Permian Gathering Project, and trucking assets[257](index=257&type=chunk) Pipelines and Transportation Throughputs (average bpd) | Throughputs (average bpd) | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :----------------------------------------- | :-------------------------------- | :-------------------------------- | | Lion Pipeline System (Crude pipelines) | 28,683 | 54,728 | | Lion Pipeline System (Refined products pipelines to Enterprise Systems) | 23,092 | 49,754 | | SALA Gathering System | 16,998 | 16,672 | | East Texas Crude Logistics System | 18,113 | 18,062 | [Wholesale Marketing and Terminalling Segment](index=62&type=section&id=Wholesale%20Marketing%20and%20Terminalling%20Segment) This section analyzes the financial performance of the Wholesale Marketing and Terminalling segment, focusing on changes in net revenues and contribution margin Wholesale Marketing and Terminalling Segment Performance (in thousands) | Wholesale Marketing and Terminalling (in thousands) | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :-------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net Revenues | $111,850 | $134,208 | | Cost of materials and other | $90,698 | $114,591 | | Operating expenses | $5,224 | $2,955 | | Segment contribution margin | $15,928 | $16,662 | - Net revenues decreased by **$22.4 million (16.7%)** due to lower average volumes and sales prices of gasoline and diesel in west Texas marketing operations, partially offset by revenue from the Big Spring Logistic Assets Acquisition[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk) - Cost of materials and other decreased by **$23.9 million (20.9%)** due to lower average volumes and costs of gasoline and diesel purchased in west Texas[270](index=270&type=chunk)[271](index=271&type=chunk) - Contribution margin decreased by **$0.7 million (4.4%)** primarily due to decreases in average sales prices of gasoline and diesel in west Texas, partially offset by increased revenue from the Big Spring Logistic Assets Acquisition[278](index=278&type=chunk)[279](index=279&type=chunk) Wholesale Marketing and Terminalling Operating Information (average bpd) | Operating Information (average bpd) | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :---------------------------------- | :-------------------------------- | :-------------------------------- | | East Texas - Tyler Refinery sales volumes | 68,577 | 73,244 | | Big Spring marketing throughputs | 87,741 | 75,139 | | West Texas marketing throughputs | 13,314 | 15,942 | | West Texas gross margin per barrel | $3.56 | $5.16 | | Terminalling throughputs | 152,469 | 143,476 | [Liquidity and Capital Resources](index=67&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the Partnership's liquidity based on cash from operations, credit facility borrowings, and capital expenditures - The Partnership assesses liquidity based on cash from operations, revolving credit facility borrowings, and potential equity/debt issuances, believing it has sufficient resources for the next **12 months**, including distributions and capital expenditures[282](index=282&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Summary (in thousands) | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $26,205 | $23,656 | | Net cash used in investing activities | $(3,766) | $(219,097) |\ | Net cash (used in) provided by financing activities | $(21,605) | $195,553 | | Net increase in cash and cash equivalents | $834 | $112 | - Net cash provided by operating activities increased by **$2.5 million**, primarily due to a decrease in Accounts receivable/payable to related parties, shifting from a net receivable to a net payable position[285](index=285&type=chunk) - Net cash used in investing activities decreased by **$215.3 million**, mainly due to the absence of large acquisition activities comparable to the Big Spring Logistic Assets Acquisition and Marketing Contract Intangible Acquisition in Q1 2018[288](index=288&type=chunk) - Net cash provided by financing activities decreased by **$217.2 million**, primarily due to a decrease in net proceeds from the revolving credit facility and increased quarterly cash distributions, partially offset by the absence of the Big Spring Logistic Assets Acquisition-related distribution from Q1 2018[289](index=289&type=chunk) - As of March 31, 2019, the Partnership had **$5.4 million** in cash and cash equivalents, **$705.2 million** in total indebtedness, and **$388.8 million** in unused credit commitments under its revolving credit facility[290](index=290&type=chunk) Capital Expenditures (in thousands) | Capital Expenditures (in thousands) | Full Year 2019 Planned | Q1 2019 Actual | | :---------------------------------- | :--------------------- | :------------- | | **Pipelines and Transportation** | | | | Regulatory | $2,542 | $96 | | Maintenance | $4,129 | $314 | | Discretionary projects | $14 | $14 | | Segment Total | $6,685 | $424 | | **Wholesale Marketing and Terminalling** | | | | Regulatory | $2,722 | $9 | | Maintenance | $2,376 | $98 | | Discretionary | $433 | $373 | | Segment Total | $5,531 | $480 | | **Total Capital Spending** | **$12,216** | **$904** | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=72&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the Partnership's exposure to market risks, primarily commodity price and interest rate risk - The Partnership has limited direct exposure to fluctuating commodity prices as it generally does not take title to crude oil and only limited volumes of light products, using forward fuel contracts (commodity swaps) to hedge exposure to price fluctuations for physical purchases of refined products[299](index=299&type=chunk) - As of March 31, 2019, open derivative contracts represented **68,000 barrels** of refined petroleum products, with recognized losses from commodity derivatives not designated as hedging instruments at **$(1.0) million** in Q1 2019, compared to gains of **$1.6 million** in Q1 2018[299](index=299&type=chunk) - Debt under the revolving credit facility bears floating interest rates, exposing the Partnership to interest rate risk, where a hypothetical **one percent** change in interest rates would impact interest expense by approximately **$4.6 million annually** based on March 31, 2019, outstanding debt[302](index=302&type=chunk) [Item 4. Controls and Procedures](index=72&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and reports no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the Partnership's disclosure controls and procedures were effective as of March 31, 2019[303](index=303&type=chunk) - No material changes in internal control over financial reporting were identified during Q1 2019[303](index=303&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) This section reiterates that the Partnership is subject to various legal proceedings, with no anticipated material adverse effect - The Partnership is routinely involved in lawsuits, investigations, and claims, including environmental and employee-related matters, but management does not believe any currently pending legal proceeding will have a material adverse effect on the business[307](index=307&type=chunk) - No material developments to previously reported proceedings in the Form 10-K have occurred, aside from the disclosures in Note 15[307](index=307&type=chunk) [Item 1A. Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) This section states no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K - There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2018[308](index=308&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=74&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on unregistered sales of general partner units to maintain the general partner's proportionate **2%** interest Unregistered Sales of General Partner Units | Date of Sale | Number of General Partner Units Sold | Price per General Partner Unit | Consideration Paid to the Partnership | | :----------- | :----------------------------------- | :----------------------------- | :------------------------------------ | | January 7, 2019 | 72 | $30.22 | $2,191 | - The sales of general partner units were exempt from registration under Section 4(a)(2) of the Securities Act[310](index=310&type=chunk) [Item 6. Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including certifications and XBRL financial statements - Exhibits include certifications from the CEO and CFO (**31.1, 31.2, 32.1, 32.2**) and XBRL formatted financial statements (**101**)[312](index=312&type=chunk) [SIGNATURES](index=75&type=section&id=SIGNATURES) This section contains the required signatures for the Quarterly Report on Form 10-Q, confirming its submission by the General Partner - The report was signed on **May 8, 2019**, by Ezra Uzi Yemin (Chairman and CEO) and Assaf Ginzburg (EVP and CFO) on behalf of Delek Logistics Partners, LP's General Partner, Delek Logistics GP, LLC[315](index=315&type=chunk)[316](index=316&type=chunk)

Delek Logistics Partners, LP (NYSE:DKL) Q1 2019 Earnings Conference Call May 6, 2019 8:30 AM ET Company Participants Keith Johnson - Vice President of Investor Relations Assaf Ginzburg - Executive Vice President and Chief Financial Officer Danny Norris - Chief Administrative Officer Ezra Yemin - Chief Executive Officer Conference Call Participants Justin Jenkins - Raymond James & Associates, Inc. Operator Good morning. We would like to welcome everyone to the Delek Logistics’ First Quarter Earnings Call. I ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) þ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2018 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35721 DELEK LOGISTICS PARTNERS, LP (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporati ...

Start Time: 08:30 January 1, 0000 8:44 AM ET Delek Logistics Partners, LP (NYSE:DKL) Q4 2018 Earnings Conference Call February 20, 2019, 08:30 AM ET Company Participants Ezra Yemin - CEO Kevin Kremke - EVP and CFO Assaf Ginzburg - EVP Keith Johnson - VP of IR Conference Call Participants Justin Jenkins - Raymond James Ned Baramov - Wells Fargo Operator Good morning. My name is Mary and I will be your conference operator for today. At this time, I would like to welcome everyone to the Q4 Earnings Call for De ...