Delek Logistics(DKL) - 2023 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total EBITDA for Delek Logistics Partners was $93 million for Q2 2023, up from $65 million in Q2 2022, indicating a significant increase in performance [5][7] - Distributable cash flow for Q2 2023 was $60 million, reflecting strong cash generation capabilities [7] - The coverage ratio was reported at 1.34x, suggesting a healthy ability to cover distributions [18] Business Line Data and Key Metrics Changes - The Wholesale Marketing and Terminalling segment reported EBITDA of $28 million for Q2 2023, compared to $19 million in Q2 2022, driven by higher throughput and gross margins [8] - The Storage and Transportation segment maintained EBITDA at $15 million, consistent with the previous year's results [8] - The Investments in Pipeline Joint Ventures segment contributed $7 million, flat compared to Q2 2022 [8] - The Gathering and Processing segment saw EBITDA increase to $53 million from $38 million year-over-year, primarily due to strong contributions from the Midland and Delaware Gathering Systems [18] Market Data and Key Metrics Changes - Midland Gathering System volumes more than doubled compared to the previous year, averaging approximately 222,000 barrels per day in Q2 2023, up from 100,000 barrels per day in Q2 2022 [15][18] Company Strategy and Development Direction - The company is focused on sustainable growth and plans to exceed a $100 million quarterly EBITDA run rate by Q4 2023 [15] - Capital expenditures for Q2 2023 were $19 million, primarily for growth projects in the Delaware and Midland Gathering Systems, with a total capital outlook of $81 million for the year [19] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook, citing consistent results and stable cash flow, particularly as production in the Permian Basin ramps up [5] - The company is committed to increasing quarterly distributions, with a 5.1% increase approved for Q2 2023 to $1.035 per limited partner unit [6] Other Important Information - The company has identified more value-add opportunities with producers, indicating a proactive approach to enhancing operational efficiency and profitability [15] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded with management expressing gratitude to employees, the Board of Directors, and investors for a successful quarter [20][21]