Delek Logistics(US:DKL)2023-03-01 01:07Financial Data and Key Metrics Changes - Delek Logistics Partners reported a record EBITDA of $92.5 million for Q4 2022, which is 33% higher than the previous record of $70 million in Q4 2021 [9][11] - The distributable cash flow (DCF) for Q4 2022 was $51 million, with a DCF coverage ratio of 1.16x [11] - For the full year of 2022, the company spent $131 million on capital expenditures, with $120 million allocated for growth [4] Business Line Data and Key Metrics Changes - The Gathering and Processing segment achieved an EBITDA of $48 million in Q4 2022, up from $34 million in Q4 2021 [18] - The Wholesale Marketing and Terminalling segment contributed $23 million of EBITDA in Q4 2022, compared to $19 million in the same period last year, driven by the West Texas Wholesale business [3] - The Storage and Transportation segment maintained an EBITDA of $16 million in Q4 2022, consistent with Q4 2021 [19] - The Pipeline Joint Venture segment contributed $9 million in Q4 2022, an increase from $7 million in Q4 2021, primarily due to increased volumes [19] Market Data and Key Metrics Changes - The company is optimistic about the outlook for the midstream business, indicating a strong position for future growth [10] Company Strategy and Development Direction - The company has restructured its reporting segments to better align with its business management, creating a new segment called Gathering and Processing [2] - Delek Logistics aims to continue its trend of increasing distributions, having achieved a 5% increase in 2022 and expecting to maintain this in 2023 [10] - The integration of the 3 Bear assets is considered complete, and the company is well-positioned to continue its growth trajectory [9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the performance of the Delek Permian Gathering System and the overall midstream market, expecting growth to exceed the average of the market [22] - The company has 325,000 acres in the Permian Basin and 25 active rigs, indicating strong operational capacity and growth potential [22] Other Important Information - The Board approved an increase in the quarterly distribution to $1.02 per unit for Q4 2022, marking the 40th consecutive quarterly distribution increase [16] Q&A Session Summary Question: Outlook for 2023 and Permian G&P segment growth - Management indicated that while specific numbers for 2023 are not provided, they expect significant organic growth in the Permian G&P segment, exceeding market averages [22] Question: General partner structure and its implications - Management emphasized that any potential deals would prioritize the benefit of unitholders and that they are committed to structuring the right corporate governance to support both investors and the company [12][13]