Delek Logistics(DKL) - 2024 Q4 - Annual Results

Financial Performance - Delek Logistics reported fourth quarter 2024 net income of $35.3 million, an increase from $22.1 million in the fourth quarter 2023, with net income per diluted common limited partner unit rising to $0.68 from $0.51[4]. - Adjusted EBITDA for the fourth quarter 2024 was $107.2 million, reflecting a 6% year-over-year increase from $100.9 million in the fourth quarter 2023[5][10]. - Total net revenues for Q4 2024 were $209.9 million, a decrease of 17.4% compared to $254.1 million in Q4 2023[24]. - Net income for Q4 2024 was $35.3 million, up 59.4% from $22.1 million in Q4 2023[24]. - Adjusted EBITDA for Q4 2024 was $107.2 million, an increase of 6.4% from $100.9 million in Q4 2023[27]. - Total revenue for the year ended December 31, 2024, reached $940,636,000, a decrease of 7.8% compared to $1,020,409,000 in 2023[31]. - Adjusted EBITDA for the year ended December 31, 2024, was $417,964,000, down from $385,128,000 in 2023, reflecting an 8.5% increase[31]. - Net income for Q4 2024 was $35,305,000, compared to $22,148,000 in Q4 2023, marking a 59.2% increase[30]. Cash Flow and Distributions - The company reported a net cash provided by operating activities of $49.9 million for Q4 2024, down from $114.7 million in Q4 2023[25]. - Distributions to partners increased to $59,303,000 for Q4 2024, up from $46,010,000 in Q4 2023, representing a 28.8% increase[28]. - Distributable cash flow for Q4 2024 was $66,721,000, slightly up from $64,569,000 in Q4 2023, indicating a 3.3% growth[28]. - The distributable cash flow coverage ratio for Q4 2024 was 1.13x, down from 1.40x in Q4 2023[28]. Debt and Capital Expenditures - Total debt as of December 31, 2024, was approximately $1.88 billion, with a leverage ratio of approximately 4.06x[7]. - Long-term debt increased to $1.88 billion in Q4 2024, compared to $1.67 billion in Q4 2023, marking a rise of 12.5%[23]. - Capital spending for the year ended December 31, 2024, totaled $139,986,000, up from $81,342,000 in 2023, indicating a 71.9% increase[31]. - Total capital spending for 2024 is projected to be $139.986 million, which includes $95.5 million for a new gas processing plant[33]. - Growth capital spending in the Gathering and Processing segment increased significantly to $127.328 million in 2024 from $72.636 million in 2023, representing a 75% increase[33]. - Total segment capital spending for the Gathering and Processing segment was $128.927 million in 2024, up from $74.683 million in 2023, reflecting a 72.5% increase[33]. - The total regulatory capital spending for 2024 is $1.946 million, down from $2.960 million in 2023, a decrease of about 34%[33]. Operational Performance - Adjusted EBITDA in the Gathering and Processing Segment for the fourth quarter 2024 was $66.0 million, up from $53.3 million in the fourth quarter 2023, driven by higher throughput from Permian Basin assets[11]. - The Wholesale Marketing and Terminalling Segment reported Adjusted EBITDA of $21.2 million for the fourth quarter 2024, down from $28.4 million in the fourth quarter 2023 due to declining wholesale margins[12]. - Average throughput for crude pipelines (non-gathered) decreased to 64,920 bpd in 2024 from 73,438 bpd in 2023, a decline of approximately 11%[34]. - Average throughput for refined products pipelines to Enterprise Systems decreased to 57,513 bpd in 2024 from 68,552 bpd in 2023, a decline of about 16%[34]. - Average water disposal and recycling throughput in the Midland Water Gathering System was 274,361 bpd in 2024, compared to no recorded throughput in 2023[34]. - The average gross margin per barrel for West Texas marketing decreased to $4.35 in 2024 from $4.73 in 2023, a decline of approximately 8%[34]. - The El Dorado Gathering System's average throughput increased to 13,883 bpd in 2024 from 13,329 bpd in 2023, an increase of about 4%[34]. - The average crude oil gathering throughput in the Delaware Gathering Assets increased to 123,346 bpd in 2024 from 112,522 bpd in 2023, a rise of approximately 10%[34]. Strategic Acquisitions - The acquisition of Gravity Water Midstream in January 2025 is expected to increase third-party cash flow contribution to approximately 70%[3]. - The company completed the acquisition of Delek US' interest in the Wink to Webster pipeline and closed the acquisition of H2O Midstream in 2024, enhancing its operational capabilities[9].