Delek Logistics(DKL) - 2024 Q3 - Quarterly Results

Financial Performance - Net income attributable to limited partners for Q3 2024 was $33.7 million, or $0.71 per diluted common limited partner unit, compared to $34.8 million, or $0.80 per diluted common limited partner unit in Q3 2023[1] - Adjusted EBITDA for Q3 2024 reached a record $106.8 million, up 9% year over year from $98.2 million in Q3 2023[1] - Distributable cash flow, as adjusted, was $62.0 million in Q3 2024, slightly up from $61.4 million in Q3 2023[1] - Net income for Q3 2024 was $33,674, a decrease of 3.3% from $34,825 in Q3 2023[17] - Adjusted EBITDA for Q3 2024 increased to $106,829, up from $98,241 in Q3 2023, representing an increase of 8.1%[17] - Distributable cash flow for Q3 2024 was $61,959, compared to $61,396 in Q3 2023, reflecting a slight increase of 0.9%[18] - Total revenue for Q3 2024 was $214,070, a decrease of 6.5% from $228,000 in Q3 2023[19] - Operating income decreased to $31,808,000 for the three months ended September 30, 2024, compared to $62,554,000 in the prior year, a decline of 49.1%[16] - The company reported a net income of $107.380 million for the nine months ended September 30, 2023, compared to a net loss in the previous year[22] Cash Distribution and Coverage - The company declared a quarterly cash distribution of $1.100 per common limited partner unit, representing a 5.3% increase over Q3 2023 distribution of $1.045[2] - The distribution cash flow coverage ratio, as adjusted, was 1.1x, lower than the target of 1.3x due to timing effects[2] - Cash distribution per common limited partner unit increased to $1.095 for the three months ended September 30, 2024, compared to $1.045 in the same period of 2023, a rise of 4.8%[16] - The distributable cash flow coverage ratio for Q3 2024 was 0.94x, down from 1.35x in Q3 2023[18] - The company expects to continue increasing distributions in the future, maintaining a consistent growth policy[1] Debt and Liabilities - Total debt as of September 30, 2024, was approximately $1.89 billion, with a leverage ratio of approximately 4.15x[2] - Long-term debt increased to $1,894,257,000 as of September 30, 2024, compared to $1,673,789,000 at December 31, 2023, an increase of 13.2%[14] - Total liabilities increased to $2,005,831,000 as of September 30, 2024, compared to $1,804,115,000 at December 31, 2023, an increase of 11.1%[14] - Total current liabilities decreased to $69,582,000 as of September 30, 2024, from $90,590,000 at December 31, 2023, a reduction of 23.2%[14] Revenue and Segment Performance - Net revenues for the three months ended September 30, 2024, were $214,070,000, down 22.3% from $275,824,000 in the same period of 2023[16] - The company reported an increase in Adjusted EBITDA from the Gathering and Processing segment to $55.0 million in Q3 2024, up from $52.9 million in Q3 2023[3] - Segment EBITDA for the Gathering and Processing segment was $42,380, while the Wholesale Marketing and Terminalling segment reported $20,245 for Q3 2024[19] - The Gathering and Processing segment reported revenues of $270.053 million for the nine months ended September 30, 2023, compared to $143.992 million in 2022, a growth of 87.5%[22] - The Wholesale Marketing and Terminalling segment generated revenues of $361.808 million for the nine months ended September 30, 2023, up from $186.345 million in the previous year, marking a 93.7% increase[22] Capital Expenditures - Capital spending for Q3 2024 was $65,198, significantly higher than $1,910 in Q3 2023[19] - The company plans to invest $53.4 million in capital spending related to a new gas processing plant in 2024[24] - Capital spending for the nine months ended September 30, 2023, totaled $90.550 million, compared to $68.628 million in 2022, indicating a 31.9% increase[24] Cash Flow and Operating Activities - Net cash provided by operating activities was $24,944,000 for the three months ended September 30, 2024, down from $46,828,000 in 2023, a decrease of 46.8%[15] - The company’s net cash provided by operating activities for Q3 2024 was $24,944, down from $46,828 in Q3 2023[17] - Cash and cash equivalents at the end of the period were $7,317,000, up from $4,182,000 in the same period of 2023, an increase of 74.1%[15] Acquisitions and Growth Opportunities - The acquisition of H2O Midstream was completed during Q3 2024, enhancing growth opportunities in the Delaware Basin[1] - Income from equity method investments rose to $15.6 million in Q3 2024, compared to $9.3 million in Q3 2023, driven by the W2W dropdown[6] - Average throughput for the Gathering and Processing segment was 125,123 bpd for the nine months ended September 30, 2023, compared to 111,973 bpd in 2022, an increase of 11.4%[25]