(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||
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(Address of Principal Executive) | (Zip Code) | ||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| (d) | Exhibits. | |||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | |||||||
Date: November 4, 2021 | DELEK LOGISTICS PARTNERS, LP | ||||
By: Delek Logistics GP, LLC | |||||
its General Partner | |||||
/s/ Reuven Spiegel | |||||
Name: Reuven Spiegel | |||||
Title: Executive Vice President and Chief Financial Officer (Principal Financial Officer) | |||||

1 | | |||||
2 | | |||||
Delek Logistics Partners, LP | ||||||||||||||
Condensed Consolidated Balance Sheets (Unaudited) | ||||||||||||||
| (In thousands, except unit and per unit data) | ||||||||||||||
| September 30, 2021 | December 31, 2020 | |||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 4,864 | $ | 4,243 | ||||||||||
| Accounts receivable | 18,421 | 15,676 | ||||||||||||
| Accounts receivable from related parties | — | 5,932 | ||||||||||||
| Inventory | 2,222 | 3,127 | ||||||||||||
| Other current assets | 1,081 | 331 | ||||||||||||
| Total current assets | 26,588 | 29,309 | ||||||||||||
| Property, plant and equipment: | ||||||||||||||
| Property, plant and equipment | 704,905 | 692,282 | ||||||||||||
| Less: accumulated depreciation | (256,696) | (227,470) | ||||||||||||
| Property, plant and equipment, net | 448,209 | 464,812 | ||||||||||||
| Equity method investments | 251,919 | 253,675 | ||||||||||||
| Operating lease right-of-use assets | 22,911 | 24,199 | ||||||||||||
| Goodwill | 12,203 | 12,203 | ||||||||||||
| Marketing contract intangible, net | 118,380 | 123,788 | ||||||||||||
| Rights-of-way | 37,062 | 36,316 | ||||||||||||
| Other non-current assets | 13,271 | 12,115 | ||||||||||||
| Total assets | $ | 930,543 | $ | 956,417 | ||||||||||
| LIABILITIES AND DEFICIT | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 7,441 | $ | 6,659 | ||||||||||
| Accounts payable to related parties | 44,574 | — | ||||||||||||
| Interest payable | 17,037 | 2,452 | ||||||||||||
| Excise and other taxes payable | 3,798 | 4,969 | ||||||||||||
| Current portion of operating lease liabilities | 7,364 | 8,691 | ||||||||||||
| Accrued expenses and other current liabilities | 7,830 | 5,529 | ||||||||||||
| Total current liabilities | 88,044 | 28,300 | ||||||||||||
| Non-current liabilities: | ||||||||||||||
| Long-term debt | 901,404 | 992,291 | ||||||||||||
| Asset retirement obligations | 6,361 | 6,015 | ||||||||||||
| Operating lease liabilities, net of current portion | 15,489 | 15,418 | ||||||||||||
| Other non-current liabilities | 23,998 | 22,694 | ||||||||||||
| Total non-current liabilities | 947,252 | 1,036,418 | ||||||||||||
| Total liabilities | 1,035,296 | 1,064,718 | ||||||||||||
| Equity (Deficit): | ||||||||||||||
| Common unitholders - public; 8,713,195 units issued and outstanding at September 30, 2021 (8,697,468 at December 31, 2020) | 165,281 | 164,614 | ||||||||||||
| Common unitholders - Delek Holdings; 34,745,868 units issued and outstanding at September 30, 2021 (34,745,868 at December 31, 2020) | (270,034) | (272,915) | ||||||||||||
| Total deficit | (104,753) | (108,301) | ||||||||||||
| Total liabilities and deficit | $ | 930,543 | $ | 956,417 | ||||||||||
3 | | |||||
Delek Logistics Partners, LP | |||||||||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) | |||||||||||||||||||||||
| (In thousands, except unit and per unit data) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Net revenues: | |||||||||||||||||||||||
| Affiliate | $ | 123,519 | $ | 95,410 | $ | 308,435 | $ | 289,739 | |||||||||||||||
| Third-party | 66,108 | 46,858 | 202,583 | 133,567 | |||||||||||||||||||
| Net revenues | 189,627 | 142,268 | 511,018 | 423,306 | |||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||
| Cost of materials and other | 105,129 | 60,692 | 274,995 | 205,877 | |||||||||||||||||||
| Operating expenses (excluding depreciation and amortization presented below) | 16,830 | 13,694 | 45,201 | 39,271 | |||||||||||||||||||
| Depreciation and amortization | 9,666 | 8,931 | 29,393 | 22,957 | |||||||||||||||||||
| Total cost of sales | 131,625 | 83,317 | 349,589 | 268,105 | |||||||||||||||||||
| Operating expenses related to wholesale business (excluding depreciation and amortization presented below) | 515 | 536 | 1,741 | 2,152 | |||||||||||||||||||
| General and administrative expenses | 6,141 | 6,122 | 17,018 | 16,973 | |||||||||||||||||||
| Depreciation and amortization | 490 | 528 | 1,469 | 1,495 | |||||||||||||||||||
| Other operating expense (income), net | 273 | — | 54 | (107) | |||||||||||||||||||
| Total operating costs and expenses | 139,044 | 90,503 | 369,871 | 288,618 | |||||||||||||||||||
| Operating income | 50,583 | 51,765 | 141,147 | 134,688 | |||||||||||||||||||
| Interest expense, net | 14,529 | 10,360 | 35,924 | 32,854 | |||||||||||||||||||
| Income from equity method investments | (7,261) | (4,860) | (17,952) | (16,875) | |||||||||||||||||||
| Other (income) expense, net | (115) | 105 | (118) | 103 | |||||||||||||||||||
| Total non-operating expenses, net | 7,153 | 5,605 | 17,854 | 16,082 | |||||||||||||||||||
| Income before income tax (benefit) expense | 43,430 | 46,160 | 123,293 | 118,606 | |||||||||||||||||||
| Income tax (benefit) expense | (194) | (168) | 156 | 67 | |||||||||||||||||||
| Net income attributable to partners | $ | 43,624 | $ | 46,328 | $ | 123,137 | $ | 118,539 | |||||||||||||||
| Comprehensive income attributable to partners | $ | 43,624 | $ | 46,328 | $ | 123,137 | $ | 118,539 | |||||||||||||||
| Less: General partner's interest in net income, including incentive distribution rights | — | — | — | 18,724 | |||||||||||||||||||
| Limited partners' interest in net income | $ | 43,624 | $ | 46,328 | $ | 123,137 | $ | 99,815 | |||||||||||||||
| Net income per limited partner unit: | |||||||||||||||||||||||
| Common units - basic | $ | 1.00 | $ | 1.26 | $ | 2.83 | $ | 3.30 | |||||||||||||||
| Common units - diluted | $ | 1.00 | $ | 1.26 | $ | 2.83 | $ | 3.30 | |||||||||||||||
| Weighted average limited partner units outstanding: | |||||||||||||||||||||||
| Common units - basic | 43,454,535 | 36,889,761 | 43,447,739 | 30,290,051 | |||||||||||||||||||
| Common units - diluted | 43,468,289 | 36,894,043 | 43,457,857 | 30,292,261 | |||||||||||||||||||
| Cash distribution per limited partner unit | $ | 0.950 | $ | 0.905 | $ | 3.800 | $ | 2.695 | |||||||||||||||
4 | | |||||
| Delek Logistics Partners, LP | ||||||||||||||
| Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | ||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| Cash flows from operating activities | ||||||||||||||
| Net income | $ | 123,137 | $ | 118,539 | ||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
| Depreciation and amortization | 30,862 | 24,452 | ||||||||||||
| Non-cash lease expense | 6,967 | 2,236 | ||||||||||||
| Amortization of customer contract intangible assets | 5,408 | 5,408 | ||||||||||||
| Amortization of deferred revenue | (1,475) | (1,418) | ||||||||||||
| Amortization of deferred financing costs and debt discount | 2,169 | 1,786 | ||||||||||||
| Income from equity method investments | (17,952) | (16,875) | ||||||||||||
| Dividends from equity method investments | 14,849 | 17,572 | ||||||||||||
| Other non-cash adjustments | 1,413 | 1,495 | ||||||||||||
| Changes in assets and liabilities: | ||||||||||||||
| Accounts receivable | (2,745) | (4,268) | ||||||||||||
| Inventories and other current assets | 109 | 12,714 | ||||||||||||
| Accounts payable and other current liabilities | 12,323 | (7,638) | ||||||||||||
| Accounts receivable/payable to related parties | 47,483 | (19,002) | ||||||||||||
| Non-current assets and liabilities, net | (272) | (347) | ||||||||||||
| Changes in assets and liabilities | 56,898 | (18,541) | ||||||||||||
| Net cash provided by operating activities | 222,276 | 134,654 | ||||||||||||
| Cash flows from investing activities | ||||||||||||||
| Asset acquisitions from Delek Holdings, net of assumed liabilities | — | (100,527) | ||||||||||||
| Purchases of property, plant and equipment | (12,352) | (6,918) | ||||||||||||
| Proceeds from sales of property, plant and equipment | 275 | 107 | ||||||||||||
| Purchases of intangible assets | (746) | — | ||||||||||||
| Distributions from equity method investments | 6,245 | 2,723 | ||||||||||||
| Equity method investment contributions | (1,393) | (11,804) | ||||||||||||
| Net cash used in investing activities | (7,971) | (116,419) | ||||||||||||
| Cash flows from financing activities | ||||||||||||||
| Proceeds from issuance of additional units to maintain 2% General Partner interest | — | 10 | ||||||||||||
| Distributions to general partner | — | (27,635) | ||||||||||||
| Distributions to common unitholders - public | (24,153) | (23,653) | ||||||||||||
| Distributions to common unitholders - Delek Holdings | (96,246) | (46,220) | ||||||||||||
| Distributions to Delek Holdings unitholders and general partner related to Trucking Assets Acquisition | — | (47,558) | ||||||||||||
| Distribution to general partner for conversion of its interest and IDR elimination | — | (45,000) | ||||||||||||
| Proceeds from revolving credit facility | 236,000 | 515,900 | ||||||||||||
| Payments on revolving credit facility | (721,700) | (343,600) | ||||||||||||
| Proceeds from issuance of senior notes | 400,000 | — | ||||||||||||
| Deferred financing costs paid in connection with debt issuances | (6,216) | — | ||||||||||||
| Payments on finance lease | (1,369) | — | ||||||||||||
| Net cash used in financing activities | (213,684) | (17,756) | ||||||||||||
| Net increase in cash and cash equivalents | 621 | 479 | ||||||||||||
| Cash and cash equivalents at the beginning of the period | 4,243 | 5,545 | ||||||||||||
| Cash and cash equivalents at the end of the period | $ | 4,864 | $ | 6,024 | ||||||||||
| Supplemental disclosures of cash flow information: | ||||||||||||||
| Cash paid during the period for: | ||||||||||||||
| Interest | $ | 19,170 | $ | 26,895 | ||||||||||
| Income taxes | $ | — | $ | 141 | ||||||||||
| Non-cash investing activities: | ||||||||||||||
| Increase (decrease) in accrued capital expenditures and other | $ | 1,638 | $ | (948) | ||||||||||
| Equity issuance to Delek Holdings unitholders in connection with Big Spring Gathering Assets Acquisition | $ | — | $ | 109,513 | ||||||||||
| Non-cash financing activities: | ||||||||||||||
| Sponsor contribution of property, plant and equipment | $ | — | $ | 1,378 | ||||||||||
| Non-cash lease liability arising from obtaining right of use assets during the period | $ | 8,750 | $ | 16,644 | ||||||||||
5 | | |||||
Delek Logistics Partners, LP | |||||||||||||||||||||||
Reconciliation of Amounts Reported Under U.S. GAAP | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Reconciliation of Net Income to EBITDA: | |||||||||||||||||||||||
| Net income | $ | 43,624 | $ | 46,328 | $ | 123,137 | $ | 118,539 | |||||||||||||||
| Add: | |||||||||||||||||||||||
| Income tax (benefit) expense | (194) | (168) | 156 | 67 | |||||||||||||||||||
| Depreciation and amortization | 10,156 | 9,459 | 30,862 | 24,452 | |||||||||||||||||||
| Amortization of customer contract intangible assets | 1,802 | 1,803 | 5,408 | 5,408 | |||||||||||||||||||
| Interest expense, net | 14,529 | 10,360 | 35,924 | 32,854 | |||||||||||||||||||
| EBITDA | $ | 69,917 | $ | 67,782 | $ | 195,487 | $ | 181,320 | |||||||||||||||
| Reconciliation of net cash from operating activities to distributable cash flow: | |||||||||||||||||||||||
| Net cash provided by operating activities | $ | 74,752 | $ | 62,273 | $ | 222,276 | $ | 134,654 | |||||||||||||||
| Changes in assets and liabilities | (16,256) | (2,458) | (56,898) | 18,541 | |||||||||||||||||||
| Non-cash lease expense | (2,460) | (1,596) | (6,967) | (2,236) | |||||||||||||||||||
| Distributions from equity method investments in investing activities | 845 | 1,033 | 6,245 | 2,723 | |||||||||||||||||||
| Maintenance and regulatory capital expenditures | (850) | (27) | (3,712) | (760) | |||||||||||||||||||
Reimbursement from Delek Holdings for capital expenditures | 11 | 26 | 1,588 | 81 | |||||||||||||||||||
| Accretion of asset retirement obligations | (116) | (106) | (346) | (320) | |||||||||||||||||||
| Deferred income taxes | (138) | (47) | (203) | (990) | |||||||||||||||||||
| Other operating (expense) income, net | (273) | — | (54) | 107 | |||||||||||||||||||
| Distributable Cash Flow | $ | 55,515 | $ | 59,098 | $ | 161,929 | $ | 151,800 | |||||||||||||||
Delek Logistics Partners, LP | |||||||||||||||||||||||
Distributable Coverage Ratio Calculation | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| Distributions to partners of Delek Logistics, LP | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Limited partners' distribution on common units | $ | 41,286 | $ | 39,307 | $ | 122,100 | $ | 87,536 | |||||||||||||||
| General partner's distributions | — | — | — | 986 | |||||||||||||||||||
| General partner's incentive distribution rights | — | — | — | 17,632 | |||||||||||||||||||
Total distributions to be paid (1) | $ | 41,286 | $ | 39,307 | $ | 122,100 | $ | 106,154 | |||||||||||||||
| Distributable cash flow | $ | 55,515 | $ | 59,098 | $ | 161,929 | $ | 151,800 | |||||||||||||||
Distributable cash flow coverage ratio (2) | 1.34x | 1.50x | 1.33x | 1.43x | |||||||||||||||||||
6 | | |||||
Delek Logistics Partners, LP | |||||||||||||||||||||||
Segment Data (unaudited) | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Pipelines and Transportation | |||||||||||||||||||||||
| Net revenues: | |||||||||||||||||||||||
| Affiliate | $ | 70,879 | $ | 68,444 | $ | 199,591 | $ | 168,285 | |||||||||||||||
| Third party | 5,323 | 3,035 | 12,021 | 14,587 | |||||||||||||||||||
| Total pipelines and transportation | 76,202 | 71,479 | 211,612 | 182,872 | |||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||
| Cost of materials and other | 15,170 | 14,342 | 42,595 | 31,622 | |||||||||||||||||||
| Operating expenses (excluding depreciation and amortization) | 13,680 | 10,749 | 34,710 | 31,936 | |||||||||||||||||||
| Segment contribution margin | $ | 47,352 | $ | 46,388 | $ | 134,307 | $ | 119,314 | |||||||||||||||
| Capital spending | $ | 2,570 | $ | 2,552 | $ | 9,946 | $ | 3,424 | |||||||||||||||
| Wholesale Marketing and Terminalling | |||||||||||||||||||||||
| Net revenues: | |||||||||||||||||||||||
Affiliates (1) | $ | 52,640 | $ | 26,966 | $ | 108,844 | $ | 121,454 | |||||||||||||||
| Third party | 60,785 | 43,823 | 190,562 | 118,980 | |||||||||||||||||||
| Total wholesale marketing and terminalling | 113,425 | 70,789 | 299,406 | 240,434 | |||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||
| Cost of materials and other | 89,959 | 46,350 | 232,400 | 174,255 | |||||||||||||||||||
| Operating expenses (excluding depreciation and amortization) | 3,665 | 3,481 | 12,232 | 9,487 | |||||||||||||||||||
| Segment contribution margin | $ | 19,801 | $ | 20,958 | $ | 54,774 | $ | 56,692 | |||||||||||||||
| Capital spending | $ | 1,566 | $ | 676 | $ | 4,580 | $ | 3,494 | |||||||||||||||
| Consolidated | |||||||||||||||||||||||
| Net revenues: | |||||||||||||||||||||||
| Affiliates | $ | 123,519 | $ | 95,410 | $ | 308,435 | $ | 289,739 | |||||||||||||||
| Third party | 66,108 | 46,858 | 202,583 | 133,567 | |||||||||||||||||||
| Total consolidated | 189,627 | 142,268 | 511,018 | 423,306 | |||||||||||||||||||
| Cost of sales: | |||||||||||||||||||||||
| Cost of materials and other | 105,129 | 60,692 | 274,995 | 205,877 | |||||||||||||||||||
| Operating expenses (excluding depreciation and amortization presented below) | 17,345 | 14,230 | 46,942 | 41,423 | |||||||||||||||||||
| Contribution margin | 67,153 | 67,346 | 189,081 | 176,006 | |||||||||||||||||||
| General and administrative expenses | 6,141 | 6,122 | 17,018 | 16,973 | |||||||||||||||||||
| Depreciation and amortization | 10,156 | 9,459 | 30,862 | 24,452 | |||||||||||||||||||
| Other operating expense (income), net | 273 | — | 54 | (107) | |||||||||||||||||||
| Operating income | $ | 50,583 | $ | 51,765 | $ | 141,147 | $ | 134,688 | |||||||||||||||
| Capital spending | $ | 4,136 | $ | 3,228 | $ | 14,526 | $ | 6,918 | |||||||||||||||
7 | | |||||
Delek Logistics Partners, LP | |||||||||||||||||||||||
Segment Capital Spending | |||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| Pipelines and Transportation | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Maintenance capital spending | $ | 215 | $ | 28 | $ | 1,141 | $ | 467 | |||||||||||||||
| Discretionary capital spending | 2,355 | 2,524 | 8,805 | 2,957 | |||||||||||||||||||
| Segment capital spending | $ | 2,570 | $ | 2,552 | 9,946 | 3,424 | |||||||||||||||||
| Wholesale Marketing and Terminalling | |||||||||||||||||||||||
Maintenance capital spending | $ | 674 | $ | 118 | 1,394 | 1,480 | |||||||||||||||||
| Discretionary capital spending | 892 | 558 | 3,186 | 2,014 | |||||||||||||||||||
| Segment capital spending | $ | 1,566 | $ | 676 | 4,580 | 3,494 | |||||||||||||||||
| Consolidated | |||||||||||||||||||||||
| Maintenance capital spending | $ | 889 | $ | 146 | 2,535 | 1,947 | |||||||||||||||||
| Discretionary capital spending | 3,247 | 3,082 | 11,991 | 4,971 | |||||||||||||||||||
| Total capital spending | $ | 4,136 | $ | 3,228 | $ | 14,526 | $ | 6,918 | |||||||||||||||
Delek Logistics Partners, LP | |||||||||||||||||||||||
Segment Data (Unaudited) | |||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Pipelines and Transportation Segment: | |||||||||||||||||||||||
| Throughputs (average bpd) | |||||||||||||||||||||||
| El Dorado Assets: | |||||||||||||||||||||||
| Crude pipelines (non-gathered) | 81,929 | 78,244 | 60,344 | 76,750 | |||||||||||||||||||
| Refined products pipelines to Enterprise Systems | 62,263 | 55,740 | 42,733 | 55,315 | |||||||||||||||||||
| El Dorado Gathering System | 14,086 | 13,659 | 14,056 | 13,520 | |||||||||||||||||||
| East Texas Crude Logistics System | 18,644 | 22,591 | 24,045 | 15,705 | |||||||||||||||||||
| Big Spring Gathering System | 84,325 | 90,719 | 79,251 | 85,845 | |||||||||||||||||||
| Plains Connection System | 131,571 | 104,314 | 120,905 | 96,961 | |||||||||||||||||||
| Wholesale Marketing and Terminalling Segment: | |||||||||||||||||||||||
East Texas - Tyler Refinery sales volumes (average bpd) (1) | 71,847 | 73,417 | 72,791 | 70,376 | |||||||||||||||||||
| Big Spring marketing throughputs (average bpd) | 81,880 | 78,659 | 76,680 | 73,701 | |||||||||||||||||||
| West Texas marketing throughputs (average bpd) | 10,560 | 9,948 | 10,033 | 11,718 | |||||||||||||||||||
| West Texas gross margin per barrel | $ | 3.33 | $ | 3.42 | $ | 3.64 | $ | 2.37 | |||||||||||||||
Terminalling throughputs (average bpd) (2) | 144,355 | 160,843 | 142,959 | 145,240 | |||||||||||||||||||
8 | | |||||