Delek Logistics Partners, LP Reports Fourth Quarter and Full Year 2017 Results
February 26, 2018 - 7:00 PM EST
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Delek Logistics Partners, LP Reports Fourth Quarter and Full Year 2017 Results
Declared quarterly distribution of $0.725 per limited partner unit; increased by 6.6 percent year-over-year
Reported fourth quarter 2017 net cash from operating activities of $9.8 million and distributable cash flow of $21.9 million
Announces agreement to acquire Big Spring logistics assets with approximately $40 million of forecasted annual EBITDA from Delek US
Announced formation of 50/50 joint venture with Green Plains Partners LP to acquire two light products terminals for $138.5 million
BRENTWOOD, Tenn., Feb. 26, 2018 (GLOBE NEWSWIRE) -- Delek Logistics Partners, LP (NYSE:DKL) ("Delek Logistics") today announced its financial results for the fourth quarter 2017. For the three months ended December 31, 2017, Delek Logistics reported net income attributable to all partners of $18.9 million, or $0.57 per diluted common limited partner unit. This compares to net income attributable to all partners of $15.3 million, or $0.47 per diluted common limited partner unit, in the fourth quarter 2016. Distributable cash flow was $21.9 million in the fourth quarter 2017, compared to $20.5 million in the prior-year period.
For the fourth quarter 2017, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $31.2 million compared to $24.4 million in the prior-year period. The combination of a higher gross margin per barrel in west Texas, improved performance from the Paline Pipeline and the east Texas marketing agreement were the primary factors in the year-over-year increase.
For 2017, net income attributable to all partners was $69.4 million, or $2.09 per diluted common limited partner unit. This compares to net income attributable to all partners of $62.8 million, or $2.07 per diluted common limited partner unit for 2016. Net cash from operations was $87.7 million and distributable cash flow was $85.0 million in 2017 compared to net cash from operations of $100.7 million and distributable cash flow of $83.1 million in 2016. EBITDA was $115.0 million in 2017, compared to $97.3 million in 2016.
Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics' general partner, remarked: "Our operations performed well in the fourth quarter resulting in our highest quarterly EBITDA to date. At December 31, 2017, we had approximately $511 million of capacity on our credit facility and a total leverage ratio of approximately 3.8 times. This financial position supported the 6.6 percent year-over-year increase in our declared fourth quarter distribution. For 2017, our annual distribution declared per limited partner unit was 10.1 percent above 2016."
Yemin concluded, "I am excited about the future growth at Delek Logistics. We expect to close on the drop down of logistics assets from Delek US' Big Spring, Texas refinery in March with an effective date of March 1. These assets are expected to provide approximately $40.0 million of EBITDA on an annualized basis and will be financed with our existing borrowing capacity on the credit facility. Through our new joint venture with Green Plains Partners, we announced an agreement to acquire two third party terminals, which fits with our strategy to grow in our existing market areas. This joint venture should benefit from synergies between complementary assets and be better positioned to support Delek US' Tyler, Texas and El Dorado, Arkansas refineries and third party customers. The expansion of the Paline Pipeline capacity to 42,000 barrels per day is expected to be completed in early March and this should provide incremental growth from this asset as crude oil differentials support future shipments on this pipeline. We anticipate that the financial flexibility provided by our balance sheet and our focus on growth initiatives should support a distribution per limited partner unit increase of at least 10% annually through 2019."
Big Spring Logistics Asset Dropdown On February 26, 2018, a definitive agreement was entered into with Delek US to acquire the Big Spring logistics assets, subject to customary closing conditions. These assets consist of storage tanks, terminals and a new marketing agreement associated with Delek US' Big Spring, Texas refinery. The expected annual EBITDA is $40.2 million and the purchase price is $315.0 million, which equates to a 7.8x EBITDA multiple. This dropdown will be financed through a combination of cash on hand and borrowings on the revolving credit facility.
This acquisition consists of the following assets and agreements:
Storage tanks and salt wells - Approximately 2.9 million barrels of aggregate shell capacity, consisting of 62 tanks, 4 salt wells and ancillary assets, including piping and pumps located at the refinery and at Duncan, Oklahoma.
Products terminals - An asphalt terminal that operated at 3,900 barrels per day during the second half of 2017 and a light products terminal with 54,000 barrels per day throughput capacity, which operated at 28,000 barrels per day during the second half of 2017.
Marketing agreement - As part of this transaction, Delek US will enter into a new wholesale marketing agreement whereby Delek Logistics will provide services necessary to market various refinery products produced at the Big Spring refinery. During the second half of 2017, total sales volume for products to be covered by this agreement was approximately 74,700 barrels per day.
In connection with the closing of the transaction, Delek US, Delek Logistics and various of their subsidiaries would enter into various long-term agreements for these assets. The transaction and related agreements were approved by the Conflicts Committee of Delek Logistics’ general partner, which is comprised solely of independent directors. The Conflicts Committee engaged Duff & Phelps to act as its financial advisor and Orrick, Herrington & Sutcliffe LLP to act as its legal counsel.
Joint Venture Formation and Terminal Acquisition On February 20, 2018, Delek Logistics and Green Plains Partners LP (NASDAQ:GPP) announced the formation of a 50/50 joint venture, DKGP Energy Terminals LLC ("DKGP"). DKGP signed a membership interest purchase agreement to acquire two light products terminals from an affiliate of American Midstream Partners, LP (NYSE:AMID). These light products terminals are located in Caddo Mills, Texas and North Little Rock, Arkansas. The total purchase price for these assets is $138.5 million in cash. Subject to customary closing conditions and regulatory approvals, this transaction is expected to close in the first half of 2018.
If completed, DKGP is expected to consist of the assets purchased from an affiliate of American Midstream and assets contributed by Delek Logistics, with a total value of approximately $162.5 million. Taking into consideration the combination of the assets, synergies and future growth, the joint venture is currently forecasted to generate annualized EBITDA of approximately $19.2 million in 2019. Delek Logistics is expected to contribute to the joint venture its North Little Rock, Arkansas terminal with throughput capacity of 17,100 barrels per day and its Greenville tank farm located in Caddo Mills, Texas with approximately 330,000 barrels of aggregate shell capacity, which together will be valued at $24.0 million, along with $57.25 million in cash. Green Plains Partners will contribute $81.25 million in cash to DKGP. The DKGP board will oversee the newly formed joint venture and will appoint Delek Logistics as the operator with day-to-day operational responsibilities of the four terminals.
Distribution and Liquidity On January 23, 2018, Delek Logistics declared a quarterly cash distribution for the fourth quarter of $0.725 per limited partner unit, which equates to $2.90 per limited partner unit on an annualized basis. This distribution was paid on February 12, 2018 to unitholders of record on February 2, 2018. This represents a 1.4 percent increase from the third quarter 2017 distribution of $0.715 per limited partner unit, or $2.86 per limited partner unit on an annualized basis, and a 6.6 percent increase over Delek Logistics’ fourth quarter 2016 distribution of $0.680 per limited partner unit, or $2.72 per limited partner unit annualized. For the fourth quarter 2017, the total cash distribution declared to all partners, including IDRs, was approximately $22.8 million. Based on the declared distribution for the fourth quarter 2017, the distributable cash flow coverage ratio for the fourth quarter was 0.96x. For 2017, the annual distributable coverage ratio was 0.97x.
As of December 31, 2017, Delek Logistics had total debt of approximately $422.6 million and cash of $4.7 million. Additional borrowing capacity, subject to certain covenants, under the $700.0 million credit facility was $511.1 million.
Financial Results Revenue for the fourth quarter 2017 was $151.2 million compared to $124.7 million in the prior year period. The increase in revenue is primarily due to higher sales prices in the west Texas wholesale business. Total operating expenses were $12.3 million in the fourth quarter 2017, compared to $8.8 million in the fourth quarter 2016. This increase was primarily due to outside services, maintenance, variable expenses and employee expenses. Total segment contribution margin was $32.8 million in the fourth quarter 2017 compared to $27.2 million in the fourth quarter 2016. General and administrative expenses were $3.6 million for the fourth quarter 2017, compared to $2.3 million in the prior year period primarily due to professional services and employee expenses.
Pipelines and Transportation Segment Contribution margin in the fourth quarter 2017 was $18.7 million compared to $16.8 million in the fourth quarter 2016. This change was primarily due to improved performance on the Paline Pipeline and Lion Pipeline system, partially offset by lower volume on the SALA system. During the fourth quarter 2017, the Paline Pipeline was a FERC regulated pipeline with a tariff established for potential shippers, compared to the prior year period when 10,000 barrels per day of the pipeline capacity was under contract with a third-party for a monthly fee. Operating expenses were $8.6 million in the fourth quarter 2017 compared to $6.9 million in the prior year period primarily due to outside services and variable costs.
Wholesale Marketing and Terminalling Segment During the fourth quarter 2017, contribution margin was $14.0 million, compared to $10.3 million in the fourth quarter 2016. This increase was primarily due to improved performance in the west Texas wholesale operations and east Texas marketing agreement on a year-over-year basis. Operating expenses increased to $3.7 million in the fourth quarter 2017, compared to $1.8 million in the prior year period primarily due to outside services.
In the west Texas wholesale business, average throughput in the fourth quarter 2017 was 14,322 barrels per day compared to 13,906 barrels per day in the fourth quarter 2016. The wholesale gross margin in west Texas increased year-over-year to $5.18 per barrel and included approximately $1.7 million, or $1.26 per barrel, from renewable identification numbers (RINs) generated in the quarter. During the fourth quarter 2016, the wholesale gross margin was $1.96 per barrel and included $1.9 million from RINs, or $1.51 per barrel. On a year-over-year basis, continued growth in drilling activity in the Permian Basin increased fuel demand and improved the supply/demand balance, which led to improved performance in the west Texas wholesale business.
Average terminalling throughput volume of 130,547 barrels per day during the quarter increased on a year-over-year basis from 119,934 barrels per day in the fourth quarter 2016 primarily due to higher throughput at the Tyler, Texas terminal. During the fourth quarter 2017, average volume under the east Texas marketing agreement with Delek US was 78,810 barrels per day compared to 68,114 barrels per day during the fourth quarter 2016.
Fourth Quarter 2017 Results | Conference Call Information Delek Logistics will hold a conference call to discuss its fourth quarter 2017 results on Tuesday, February 27, 2018 at 7:30 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekLogistics.com. Participants are encouraged to register at least 15 minutes early to download and install any necessary software. For those who cannot listen to the live broadcast, a telephonic replay will be available through May 27, 2018 by dialing (855) 859-2056, passcode 2677645. An archived version of the replay will also be available at www.DelekLogistics.com for 90 days.
Investors may also wish to listen to Delek US’ (NYSE:DK) fourth quarter 2017 earnings conference call on Tuesday, February 27, 2018 at 8:30 a.m. Central Time and review Delek US’ earnings press release. Market trends and information disclosed by Delek US may be relevant to Delek Logistics, as it is a consolidated subsidiary of Delek US. Investors can find information related to Delek US and the timing of its earnings release online by going to www.DelekUS.com.
About Delek Logistics Partners, LP Delek Logistics Partners, LP, headquartered in Brentwood, Tennessee, was formed by Delek US Holdings, Inc. (NYSE:DK) to own, operate, acquire and construct crude oil and refined products logistics and marketing assets.
Safe Harbor Provisions Regarding Forward-Looking Statements This press release contains “forward-looking” statements within the meaning of the federal securities laws. These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or similar expressions, as well as statements in the future tense, and can be impacted by numerous factors, including the fact that a substantial majority of Delek Logistics' contribution margin is derived from Delek US Holdings, thereby subjecting us to Delek US Holdings' business risks; risks relating to the securities markets generally; risks and costs relating to the age and operational hazards of our assets including, without limitation, costs, penalties, regulatory or legal actions and other effects related to releases, spills and other hazards inherent in transporting and storing crude oil and intermediate and finished petroleum products; the impact of adverse market conditions affecting the utilization of Delek Logistics' assets and business performance, including margins generated by its wholesale fuel business; an inability of Delek to successfully integrate the businesses of Delek and Alon USA Energy, Inc., to grow as expected and realize the synergies and the other anticipated benefits of its merger with Alon, which became effective as of July 1, 2017, as it relates to our potential future growth opportunities, including dropdowns, and other potential benefits; the results of our investments in joint ventures; adverse changes in laws including with respect to tax and regulatory matters and other risks as disclosed in our annual report on Form 10-K, quarterly reports on Form 10-Q and other reports and filings with the United States Securities and Exchange Commission. Forward looking statements include, but are not limited to, statements regarding future growth at Delek Logistics; the ability to close the acquisition of Big Spring logistics assets and the proposed timing and projected results thereof; the ability of the newly formed joint venture with Green Plains Partners LP to acquire additional assets, the amount of such acquisition, and the potential benefits therefrom; the ability to complete the expansion of the Paline Pipeline and the timing for and potential results of such expansion; future distributions and the amounts thereof; a new marketing agreement and the terms and benefits thereof; the availability of borrowing capacity. There can be no assurance that actual results will not differ from those expected by management or described in forward-looking statements of Delek Logistics. Delek Logistics undertakes no obligation to update or revise such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof.
Non-GAAP Disclosures: EBITDA, distributable cash flow and distributable cash flow coverage ratio are non-U.S. GAAP supplemental financial measures that management and external users of our combined financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
Delek Logistics' operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
the ability of our assets to generate sufficient cash flow to make distributions to Delek Logistics' unitholders;
Delek Logistics' ability to incur and service debt and fund capital expenditures; and
the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
Delek Logistics believes that the presentation of EBITDA, distributable cash flow and distributable cash flow coverage ratio provide useful information to investors in assessing its financial condition, its results of operations and the cash flow its business is generating. EBITDA, distributable cash flow and distributable cash flow coverage ratio should not be considered in isolation or as alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. EBITDA, distributable cash flow and distributable cash flow coverage ratio have important limitations as analytical tools because they exclude some, but not all items that affect net income and net cash provided by operating activities. Additionally, because EBITDA and distributable cash flow may be defined differently by other partnerships in its industry, Delek Logistics' definitions of EBITDA and distributable cash flow may not be comparable to similarly titled measures of other partnerships. Please see the tables below for a reconciliation of EBITDA and distributable cash flow to their most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. Also, please see the accompanying table providing the calculation of distributable cash flow coverage ratio.
Delek Logistics Partners, LP
Condensed Consolidated Balance Sheets (Unaudited)
December 31,
December 31,
2017
2016
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents
$
4,675
$
59
Accounts receivable
23,013
19,202
Accounts receivable from related parties
1,124
2,834
Inventory
20,855
8,875
Other current assets
783
1,071
Total current assets
50,450
32,041
Property, plant and equipment:
Property, plant and equipment
367,179
342,407
Less: accumulated depreciation
(112,111
)
(91,378
)
Property, plant and equipment, net
255,068
251,029
Equity method investments
106,465
101,080
Goodwill
12,203
12,203
Intangible assets, net
15,917
14,420
Other non-current assets
3,427
4,774
Total assets
$
443,530
$
415,547
LIABILITIES AND DEFICIT
Current liabilities:
Accounts payable
$
19,147
$
10,853
Excise and other taxes payable
4,700
4,841
Tank inspection liabilities
902
1,013
Pipeline release liabilities
1,000
1,097
Accrued expenses and other current liabilities
6,033
2,925
Total current liabilities
31,782
20,729
Non-current liabilities:
Long-term debt
422,649
392,600
Asset retirement obligations
4,064
3,772
Other non-current liabilities
14,260
11,730
Total non-current liabilities
440,973
408,102
Total liabilities
472,755
428,831
Deficit:
Common unitholders - public; 9,088,587 units issued and outstanding at December 31, 2017 (9,263,415 at December 31, 2016)
174,378
188,013
Common unitholders - Delek; 15,294,046 units issued and outstanding at December 31, 2017 (15,065,192 at December 31, 2016)
(197,206
)
(195,076
)
General partner - 497,604 units issued and outstanding at December 31, 2017 (496,502 at December 31, 2016)
(6,397
)
(6,221
)
Total deficit
(29,225
)
(13,284
)
Total liabilities and deficit
$
443,530
$
415,547
Delek Logistics Partners, LP
Condensed Consolidated Statements of Income (Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2017
2016
2017
2016
(In thousands, except unit and per unit data)
Net sales:
Affiliate
$
39,706
$
37,750
$
156,280
$
149,564
Third-party
111,501
86,930
381,795
298,495
Net sales
151,207
124,680
538,075
448,059
Operating costs and expenses:
Cost of goods sold
106,141
88,777
372,890
302,158
Operating expenses
12,288
8,753
43,274
37,198
General and administrative expenses
3,585
2,338
11,840
10,256
Depreciation and amortization
5,517
5,649
21,914
20,813
(Gain) on asset disposals
(22
)
—
(20
)
(16
)
Total operating costs and expenses
127,509
105,517
449,898
370,409
Operating income
23,698
19,163
88,177
77,650
Interest expense, net
7,287
3,695
23,944
13,587
(Income) loss from equity method investments
(1,948
)
435
(4,953
)
1,178
Other income, net
—
—
(1
)
—
Income before income tax (benefit) expense
18,359
15,033
69,187
62,885
Income tax (benefit) expense
(555
)
(279
)
(222
)
81
Net income attributable to partners
18,914
15,312
69,409
62,804
Comprehensive income attributable to partners
$
18,914
$
15,312
$
69,409
$
62,804
Less: General partner's interest in net income, including incentive distribution rights
5,023
3,890
18,429
12,193
Limited partners' interest in net income
$
13,891
$
11,422
$
50,980
$
50,611
Net income per limited partner unit:
Common units - (basic)
$
0.57
$
0.47
$
2.09
$
2.08
Common units - (diluted)
$
0.57
$
0.47
$
2.09
$
2.07
Subordinated units - Delek (basic and diluted)
$
—
$
—
$
—
$
2.19
Weighted average limited partner units outstanding:
Common units - basic
24,366,291
24,310,962
24,348,063
22,490,264
Common units - diluted
24,382,560
24,366,999
24,376,972
22,558,717
Subordinated units - Delek (basic and diluted)
—
—
—
1,803,167
Cash distribution per limited partner unit
$
0.725
$
0.680
$
2.835
$
2.575
Delek Logistics Partners, LP
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
Year Ended December 31,
2017
2016
Cash Flow Data
Operating activities
$
87,703
$
100,707
Investing activities
(30,672
)
(72,692
)
Financing activities
(52,415
)
(27,956
)
Net increase
$
4,616
$
59
Delek Logistics Partners, LP
Reconciliation of Amounts Reported Under U.S. GAAP
Three Months Ended December 31,
Year Ended December 31,
($ in thousands)
2017
2016
2017
2016
Reconciliation of net income to EBITDA:
Net income
$
18,914
$
15,312
$
69,409
$
62,804
Add:
Income tax (benefit) expense
(555
)
(279
)
(222
)
81
Depreciation and amortization
5,517
5,649
21,914
20,813
Interest expense, net
7,287
3,695
23,944
13,587
EBITDA
$
31,163
$
24,377
$
115,045
$
97,285
Reconciliation of net cash from operating activities to distributable cash flow:
Net cash provided by operating activities
$
9,799
$
13,946
$
87,703
$
100,707
Changes in assets and liabilities
14,603
7,652
3,462
(14,861
)
Maintenance and regulatory capital expenditures
(4,433
)
(3,569
)
(9,444
)
(5,920
)
Reimbursement from Delek for capital expenditures (1)
1,723
2,403
3,453
3,251
Accretion of asset retirement obligations
(73
)
(67
)
(292
)
(266
)
Deferred income taxes
269
173
111
173
Gain on asset disposals
22
—
20
16
Distributable Cash Flow
$
21,910
$
20,538
$
85,013
$
83,100
In the current year, the reimbursed capital expenditure amounts in the determination of distributable cash flow were revised to reflect the accrual of reimbursed capital expenditures from Delek rather than the cash amounts received for reimbursed capital expenditures during the years ended December 31, 2017 and 2016. This resulted in an increase to the distributable cash flow of $2.0 million and $1.4 million during the three months and year ended December 31, 2016, respectively.
Delek Logistics Partners, LP
Distributable Coverage Ratio Calculation
(In thousands)
Three Months Ended December 31,
Year Ended December 31,
Distributions to partners of Delek Logistics, LP
2017
2016
2017
2016
Limited partners' distribution on common units
$
17,677
$
16,543
$
69,057
$
62,582
General partner's distributions
361
338
1,408
1,278
General partner's incentive distribution rights
4,739
3,656
17,389
11,159
Total Distributions to be paid
$
22,777
$
20,537
$
87,854
$
75,019
Distributable Cash Flow
$
21,910
$
20,538
$
85,013
$
83,100
Distributable cash flow coverage ratio (1)
0.96x
1.00x
0.97x
1.11x
(1) Distributable cash flow coverage ratio is calculated by dividing distributable cash flow by distributions to be paid in each respective period.
Delek Logistics Partners, LP
Segment Data (unaudited)
(In thousands)
Three Months Ended
Year Ended
December 31,
December 31,
2017
2016
2017
2016
Pipelines and Transportation
Net sales:
Affiliate
$
27,327
$
26,069
$
109,298
$
103,749
Third party
4,520
2,684
12,431
18,423
Total pipelines and transportation
31,847
28,753
121,729
122,172
Operating costs and expenses:
Cost of goods sold
4,519
5,024
18,210
19,425
Operating expenses
8,579
6,918
33,240
29,235
Segment contribution margin
$
18,749
$
16,811
$
70,279
$
73,512
Total Assets
$
349,351
$
337,349
Wholesale Marketing and Terminalling
Net sales:
Affiliate
$
12,379
$
11,681
$
46,982
$
45,815
Third party
106,981
84,246
369,364
280,072
Total wholesale marketing and terminalling
119,360
95,927
416,346
325,887
Operating costs and expenses:
Cost of goods sold
101,622
83,753
354,680
282,733
Operating expenses
3,709
1,835
10,034
7,963
Segment contribution margin
$
14,029
$
10,339
$
51,632
$
35,191
Total Assets
$
94,179
$
78,198
Consolidated
Net sales:
Affiliate
$
39,706
$
37,750
$
156,280
$
149,564
Third party
111,501
86,930
381,795
298,495
Total consolidated
151,207
124,680
538,075
448,059
Operating costs and expenses:
Cost of goods sold
106,141
88,777
372,890
302,158
Operating expenses
12,288
8,753
43,274
37,198
Contribution margin
32,778
27,150
121,911
108,703
General and administrative expenses
3,585
2,338
11,840
10,256
Depreciation and amortization
5,517
5,649
21,914
20,813
(Gain) on asset disposals
(22
)
—
(20
)
(16
)
Operating income
$
23,698
$
19,163
$
88,177
$
77,650
Total Assets
$
443,530
$
415,547
Delek Logistics Partners, LP
Segment Capital Spending
(In thousands)
Three Months Ended December 31,
Year Ended December 31,
Pipelines and Transportation
2017
2016
2017
2016
Maintenance capital spending
$
4,079
$
3,758
$
8,643
$
7,386
Discretionary capital spending
3,468
683
5,619
1,092
Segment capital spending
$
7,547
$
4,441
$
14,262
$
8,478
Wholesale Marketing and Terminalling
Maintenance capital spending
$
1,693
$
1,144
$
2,461
$
1,317
Discretionary capital spending
467
1,173
1,680
1,972
Segment capital spending
$
2,160
$
2,317
$
4,141
$
3,289
Consolidated
Maintenance capital spending
$
5,772
$
4,902
$
11,104
$
8,703
Discretionary capital spending
3,935
1,856
7,299
3,064
Total capital spending
$
9,707
$
6,758
$
18,403
$
11,767
Delek Logistics Partners, LP
Segment Data (Unaudited)
Three Months Ended December 31,
Year Ended December 31,
2017
2016
2017
2016
Pipelines and Transportation Segment:
Throughputs (average bpd)
Lion Pipeline System:
Crude pipelines (non-gathered)
58,497
58,353
59,362
56,555
Refined products pipelines
54,874
52,895
51,927
52,071
SALA Gathering System
15,013
16,518
15,871
17,756
East Texas Crude Logistics System
18,078
11,624
15,780
12,735
El Dorado Rail Offloading Rack
—
—
—
—
Wholesale Marketing and Terminalling Segment:
East Texas - Tyler Refinery sales volumes (average bpd)
78,810
68,114
73,655
68,131
West Texas marketing throughputs (average bpd)
14,322
13,906
13,817
13,257
West Texas marketing margin per barrel
$
5.18
$
1.96
$
4.03
$
1.43
Terminalling throughputs (average bpd)
130,547
119,934
124,488
122,350
Big Spring Logistics Drop Down and Marketing Agreement
Reconciliation of Forecasted Annualized EBITDA to Forecasted Net Income
($ in thousands)
Tanks, Terminals and Marketing Agreement
Forecasted Net income
$
20,500
Add:
Income tax expense
—
Depreciation and amortization
5,100
Interest expense, net
14,600
Forecasted EBITDA
$
40,200
DKGP Energy Terminals LLC
Reconciliation of Forecasted 2019 EBITDA to Forecasted Net Income
($ in thousands)
DKGP Joint Venture (1)
Forecasted Net income
$
11,000
Add:
Income tax expense
—
Depreciation and amortization
8,200
Interest expense, net
—
Forecasted EBITDA
$
19,200
This amount represents the forecasted 2019 performance for the total joint venture. Each partner will record performance based on their respective percentage ownership in the joint venture.
Investor / Media Relations Contact: Keith Johnson Vice President of Investor Relations 615-435-1366
