Delek Logistics Reports Fourth Quarter 2023 Results and 2024 Capital Program

Fourth Quarter

    --  Net income attributable to all partners of $22.1 million
    --  Quarterly EBITDA of $86.1 million, adjusted EBITDA of $100.9 million
    --  Distributable cash flow of $64.6 million, DCF coverage ratio of 1.40x
    --  Delivered 44 consecutive quarters of distribution growth with recent
        increase to $1.055/unit

2023 Full Year

    --  Net income attributable to all partners of $126.2 million
    --  EBITDA of $370.3 million, adjusted EBITDA of $385.1 million
    --  Distributable cash flow of $248.2 million, DCF coverage ratio of 1.37x
    --  Improved leverage ratio to 4.34x from 4.89x at year-end 2022
    --  Grew Midland gathering & processing volumes nearly 80%
    --  Rewarded unitholders with continued distribution growth

2024 Capital Program

    --  2024 capital expenditures are estimated to be approximately $70 million

BRENTWOOD, Tenn., Feb. 27, 2024 /PRNewswire/ -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the fourth quarter 2023, with reported net income attributable to all partners of $22.1 million, or $0.51 per diluted common limited partner unit. This compares to net income attributable to all partners of $42.7 million, or $0.98 per diluted common limited partner unit, in the fourth quarter 2022. The decrease in net income attributable to all partners was driven by higher interest expense and a fourth quarter 2023 goodwill impairment. Net cash provided in operating activities was $114.7 million in the fourth quarter 2023 compared to net cash used in operating activities of $105.3 million in the fourth quarter 2022. Distributable cash flow was $64.6 million in the fourth quarter 2023, compared to $51.4 million in the fourth quarter 2022.

For the fourth quarter 2023, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $86.1 million. Excluding the goodwill impairment, adjusted EBITDA was $100.9 million compared to $92.5 million in the fourth quarter 2022.

"I am pleased to say that Delek Logistics has exceeded quarterly earnings goals, and surpassed last year's strong performance," said Avigal Soreq, President of Delek Logistics' general partner. "We saw substantial growth from new connections in our Midland gathering operations, further validating our strong position in the Permian Basin. The dedication of our workforce to having safe and reliable operations also contributed to our success. I'm proud of the team that has gone without a lost time injury 4-years in a row and counting. We are excited for Delek Logistics' future and numerous growth opportunities. The business looks to utilize capital investments in 2024 to support customer growth and expand upon existing assets."

"In January, the Board approved the 44th consecutive increase in the quarterly distribution to $1.055 per unit. Delek Logistics has a strong track record of delivering value to unitholders. We feel confident in our ability to maintain competitive distributions to our investors as we head into 2024," Mr. Soreq concluded.

Distribution and Liquidity

On January 24, 2024, Delek Logistics declared a quarterly cash distribution of $1.055 per common limited partner unit for the fourth quarter 2023. This distribution was paid on February 12, 2024 to unitholders of record on February 5, 2024. This represents a 1.0% increase from the third quarter 2023 distribution of $1.045 per common limited partner unit, and a 3.4% increase over Delek Logistics' fourth quarter 2022 distribution of $1.020 per common limited partner unit. For the fourth quarter 2023, the total cash distribution declared to all partners was approximately $46.0 million, resulting in a distributable cash flow ("DCF") coverage ratio of 1.40x.

As of December 31, 2023, Delek Logistics had total debt of approximately $1.70 billion and cash of $3.8 million. Additional borrowing capacity, subject to certain covenants, under the $1.05 billion third party revolving credit facility was $269.5 million. The total leverage ratio as of December 31, 2023 of approximately 4.34x was within the requirements of the maximum allowable leverage ratio under the credit facility.

Consolidated Operating Results

Fourth quarter 2023 Adjusted EBITDA was $100.9 million compared with $92.5 million in the fourth quarter 2022. The $8.4 million increase reflects higher contributions from the Midland Gathering and Delaware Gathering systems, terminalling and marketing rate increases, as well as continued strong throughput on joint venture pipelines. The increase was partially offset by higher operating expenses driven by the growth in operations.

Gathering and Processing Segment

Adjusted EBITDA in the fourth quarter 2023 was $53.3 million compared with $48.1 million in the fourth quarter 2022. The increase was primarily due to higher throughput from Permian Basin assets.

During the fourth quarter 2023, Delek Logistics recorded a $14.8 million impairment charge related to the Delaware Gathering reporting unit within the gathering and processing segment. The impairment was primarily driven by the significant increase in interest rates and timing effect of system connections with producer customers. The Partnership's long-term outlook of its Delaware Gathering system remains unchanged.

Wholesale Marketing and Terminalling Segment

Adjusted EBITDA in the fourth quarter 2023 was $28.4 million, compared with fourth quarter 2022 Adjusted EBITDA of $23.3 million. The increase was primarily due to higher terminalling utilization.

Storage and Transportation Segment

Adjusted EBITDA in the fourth quarter 2023 was $17.5 million, compared with $16.1 million in the fourth quarter 2022. The increase was primarily due to increased storage and transportation rates.

Investments in Pipeline Joint Ventures Segment

During the fourth quarter 2023, income from equity method investments was $8.5 million compared to $9.0 million in the fourth quarter 2022.

Corporate

Adjusted EBITDA in the fourth quarter 2023 was a loss of $6.9 million compared to a loss of $4.0 million in the fourth quarter 2022.

Capital Program

Delek Logistics Partners expects the 2024 Capital Program to be approximately $70 million, with approximately $20 million for sustaining and regulatory projects and $50 million for growth projects. The 2024 Capital Program compares with the 2023 Capital Program of $74 million, which includes $7 million of capital partially funded by producers. Excluding these proceeds, 2023 capital expenditures were $81 million.

2024 growth capital will be to advance new connections in both the Midland and Delaware gathering systems, enabling continued volume growth at the Partnership.



     
              ($ millions)         Total



     Delek Logistics



           Growth                      $50



           Sustaining & Regulatory      20



     
              2024 Capital Program   $70

Fourth Quarter 2023 Results | Conference Call Information

Delek Logistics will hold a conference call to discuss its fourth quarter 2023 results on Tuesday, February 27, 2024 at 11:30 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. An archived version of the replay will also be available at www.DelekLogistics.com for 90 days.

About Delek Logistics Partners, LP

Delek Logistics is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. Through its owned assets and joint ventures located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the Gulf Coast region, Delek Logistics provides gathering, pipeline and other transportation services primarily for crude oil and natural gas customers, storage, wholesale marketing and terminalling services primarily for intermediate and refined product customers, and water disposal and recycling services. Delek US Holdings, Inc. ("Delek US") owns the general partner interest as well as a majority limited partner interest in Delek Logistics, and is also a significant customer.

Safe Harbor Provisions Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are "forward-looking statements," as that term is defined under 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 significant portion of Delek Logistics' revenue is derived from Delek US, thereby subjecting us to Delek US' 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; risks and uncertainties related to the integration of the 3 Bear business following the recent acquisition; uncertainties regarding future decisions by OPEC regarding production and pricing disputes between OPEC members and Russia; an inability of Delek US to grow as expected as it relates to our potential future growth opportunities, including dropdowns, and other potential benefits; projected capital expenditures, scheduled turnaround activity; 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; distributions and the amounts and timing thereof; potential dropdown inventory; projected benefits of the Delaware Gathering acquisition; expected earnings or returns from joint ventures or other acquisitions; expansion projects; ability to create long-term value for our unit holders; financial flexibility and borrowing capacity; and distribution growth. Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Delek Logistics undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof, except as required by applicable law or regulation.

Non-GAAP Disclosures:

Our management uses certain "non-GAAP" operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our GAAP financial information presented in accordance with U.S. GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include:

    --  Earnings before interest, taxes, depreciation and amortization
        ("EBITDA") - calculated as net income before net interest expense,
        income tax expense, depreciation and amortization expense, including
        amortization of customer contract intangible assets, which is included
        as a component of net revenues in our accompanying consolidated
        statements of income.
    --  Adjusted Earnings before interest, taxes, depreciation and amortization
        ("Adjusted EBITDA") - EBITDA adjusted to exclude the impairment of
        goodwill associated with our Delaware Gathering reporting unit.
    --  Distributable cash flow - calculated as net cash flow from operating
        activities plus or minus changes in assets and liabilities, less
        maintenance capital expenditures net of reimbursements and other
        adjustments not expected to settle in cash. Delek Logistics believes
        this is an appropriate reflection of a liquidity measure by which users
        of its financial statements can assess its ability to generate cash.
    --  Distributable cash flow, as adjusted for transaction costs, or
        Distributable cash flow, as adjusted - distributable cash flow adjusted
        to exclude significant, infrequently occurring transaction costs.

Our EBITDA, Adjusted EBITDA and distributable cash flow measures are non GAAP supplemental financial measures that management and external users of our consolidated 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 and Adjusted EBITDA,
        financing methods;
    --  the ability of our assets to generate sufficient cash flow to make
        distributions to our unitholders on a current and on-going basis;
    --  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.

We believe that the presentation of EBITDA, Adjusted EBITDA and distributable cash flow measures provide information useful to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance for current and comparative periods. EBITDA, Adjusted EBITDA and distributable cash flow should not be considered alternatives to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. EBITDA, Adjusted EBITDA and distributable cash flow 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, Adjusted EBITDA and distributable cash flow may be defined differently by other partnerships in our industry, our definitions of EBITDA, Adjusted EBITDA and distributable cash flow may not be comparable to similarly titled measures of other partnerships, thereby diminishing their utility. For a reconciliation of EBITDA, Adjusted EBITDA and distributable cash flow to their most directly comparable financial measures calculated and presented in accordance with U.S. GAAP, please refer to "Results of Operations" below. See the accompanying tables in this earnings release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.



              
                Delek Logistics Partners, LP



              
                Consolidated Balance Sheets (Unaudited)



              
                (In thousands, except unit data)


                                                                                                                      December 31, 2023 December 31, 2022



              
                ASSETS



              Current assets:



              Cash and cash equivalents                                                                                         $3,755             $7,970



                 Accounts receivable                                                                                            41,131             53,314



              Accounts receivable from related parties                                                                          28,443



              Inventory                                                                                                          2,264              1,483



              Other current assets                                                                                                 676              2,463



              Total current assets                                                                                              76,269             65,230



              Property, plant and equipment:



              Property, plant and equipment                                                                                  1,320,510          1,240,684



              Less: accumulated depreciation                                                                                 (384,359)         (316,680)



              Property, plant and equipment, net                                                                               936,151            924,004



              Equity method investments                                                                                        241,337            257,022



              Customer relationship intangible, net                                                                            181,336            199,440



              Marketing contract intangible, net                                                                               102,155            109,366



              Rights-of-way, net                                                                                                59,536             55,990



              Goodwill                                                                                                          12,203             27,051



              Operating lease right-of-use assets                                                                               19,043             24,788



              Other non-current assets                                                                                          14,216             16,408



              Total assets                                                                                                  $1,642,246         $1,679,299





              
                LIABILITIES AND DEFICIT



              Current liabilities:



              Accounts payable                                                                                                 $26,290            $57,403



              Accounts payable to related parties                                                                                    -             6,055



              Current portion of long-term debt                                                                                 30,000             15,000



              Interest payable                                                                                                   5,805              5,308



              Excise and other taxes payable                                                                                    10,321              8,230



              Current portion of operating lease liabilities                                                                     6,697              8,020



              Accrued expenses and other current liabilities                                                                    11,477              6,202



              Total current liabilities                                                                                         90,590            106,218



              Non-current liabilities:



              Long-term debt, net of current portion                                                                         1,673,789          1,646,567



              Operating lease liabilities, net of current portion                                                                8,335             12,114



              Asset retirement obligations                                                                                      10,038              9,333



              Other non-current liabilities                                                                                     21,363             15,767



              Total non-current liabilities                                                                                  1,713,525          1,683,781



              Total liabilities                                                                                              1,804,115          1,789,999



              Equity (Deficit):



              Common unitholders - public; 9,299,763 units issued and outstanding at December 31, 2023 (9,257,305 at           160,402            172,119
    December 31, 2022)



              Common unitholders - Delek Holdings; 34,311,278 units issued and outstanding at December 31, 2023              (322,271)         (282,819)
    (34,311,278 at December 31, 2022)



              Total deficit                                                                                                  (161,869)         (110,700)



              Total liabilities and deficit                                                                                 $1,642,246         $1,679,299



              
                Delek Logistics Partners, LP



              
                Consolidated Statement of Income and Comprehensive Income (Unaudited)



              
                (In thousands, except unit and per unit data)


                                                                                                             Three Months Ended December
                                                                                                                 31,                            Year Ended December 31,


                                                                                                        2023         2022                  2023             2022



              Net revenues:



              Affiliate                                                                            $149,400     $104,141              $563,803         $479,411



              Third-party                                                                           104,749      164,910               456,606          556,996



              Net revenues                                                                          254,149      269,051             1,020,409        1,036,407



              Cost of sales:



              Cost of materials and other - affiliate                                                98,071      121,855               396,333          496,184



              Cost of materials and other - third party                                              29,707       39,213               136,294          145,179



              Operating expenses (excluding depreciation and amortization presented below)           30,380       22,546               115,682           85,438



              Depreciation and amortization                                                          21,642       18,334                87,136           60,210



              Total cost of sales                                                                   179,800      201,948               735,445          787,011



              Operating expenses related to wholesale business (excluding depreciation and            1,022          764                 2,419            2,869
    amortization presented
    below)



              General and administrative expenses                                                     5,100        3,355                24,766           34,181



              Depreciation and amortization                                                           1,325        1,357                 5,248            2,778



              Impairment of goodwill                                                                 14,848                            14,848



              (Gain) loss on disposal of assets                                                       (462)           6               (1,266)           (114)



              Total operating costs and expenses                                                    201,633      207,430               781,460          826,725



              Operating income                                                                       52,516       61,621               238,949          209,682



              Interest expense, net                                                                  38,663       28,683               143,244           82,304



              Income from equity method investments                                                 (8,536)     (9,017)             (31,433)        (31,683)



              Other income, net                                                                       (279)       (334)                (303)           (373)



              Total non-operating expenses, net                                                      29,848       19,332               111,508           50,248



              Income before income tax expense                                                       22,668       42,289               127,441          159,434



              Income tax expense (benefit)                                                              520        (411)                1,205              382



              Net income attributable to partners                                                   $22,148      $42,700              $126,236         $159,052



              Comprehensive income attributable to partners                                         $22,148      $42,700              $126,236         $159,052





              
                Net income per limited partner unit:



              Basic                                                                                   $0.51        $0.98                 $2.90            $3.66



              Diluted                                                                                 $0.51        $0.98                 $2.89            $3.66



              
                Weighted average limited partner units outstanding:



              Basic                                                                              43,599,670   43,517,906            43,583,938       43,487,910



              Diluted                                                                            43,625,012   43,540,645            43,611,314       43,511,650



              Cash distribution per common limited partner unit                                      $1.055       $1.020                $4.160           $3.975



     
                Delek Logistics Partners, LP



     
                Condensed Consolidated Statements of Cash Flows (In thousands)          Three Months Ended December 31,                    Year Ended December 31,



     
                (Unaudited)                                                        2023           2022                   2023         2022



     
                Cash flows from operating activities



     Net cash provided by (used in) operating activities                         $114,689     $(105,314)              $225,319     $192,168



     
                Cash flows from investing activities



     Net cash used in investing activities                                       (33,995)      (65,350)              (89,629)   (770,437)



     
                Cash flows from financing activities



     Net cash (used in) provided by financing activities                         (81,121)       163,689              (139,905)     581,947



     
                Net (decrease) increase in cash and cash equivalents              (427)       (6,975)               (4,215)       3,678



     Cash and cash equivalents at the beginning of the period                       4,182         14,945                  7,970        4,292



     Cash and cash equivalents at the end of the period                            $3,755         $7,970                 $3,755       $7,970



     
                Delek Logistics Partners, LP



     
                Reconciliation of  Amounts Reported Under U.S. GAAP (Unaudited)



     
                (In thousands)


                                                                                                             Three Months Ended December 31,                 Year Ended December 31,


                                                                                                        2023          2022                  2023        2022



     
                Reconciliation of Net Income to EBITDA:



     Net income                                                                                     $22,148       $42,700              $126,236    $159,052



     Add:



     Income tax expense (benefit)                                                                       520         (411)                1,205         382



     Depreciation and amortization                                                                   22,967        19,691                92,384      62,988



     Amortization of marketing contract intangible                                                    1,803         1,803                 7,211       7,211



     Interest expense, net                                                                           38,663        28,683               143,244      82,304



     
                EBITDA                                                                            $86,101       $92,466              $370,280    $311,937



     Impairment of goodwill                                                                          14,848                             14,848



     
                Adjusted EBITDA                                                                  $100,949       $92,466              $385,128    $311,937





     
                Reconciliation of net cash from operating activities to distributable cash flow:



     Net cash provided by (used in) operating activities                                           $114,689    $(105,314)             $225,319    $192,168



     Changes in assets and liabilities                                                             (51,894)      164,781                29,474      49,423



     Non-cash lease expense                                                                         (2,142)      (2,670)              (9,549)   (16,254)



     Distributions from equity method investments in investing activities                             4,525                              9,002       1,737



     Regulatory and sustaining capital expenditures not distributable                               (1,348)      (6,501)              (7,272)    (9,684)



     Reimbursement from Delek Holdings for capital expenditures                                         338         1,171                 1,280       1,176



     Accretion of asset retirement obligations                                                        (176)        (181)                (705)      (596)



     Deferred income taxes                                                                              115            71                 (638)        (5)



     Gain (loss) on disposal of assets                                                                  462           (6)                1,266         114



     
                Distributable Cash Flow                                                           $64,569       $51,351              $248,177    $218,079



     Transaction costs                                                                                    -                                       10,604



     
                Distributable Cash Flow, as adjusted                                              $64,569       $51,351              $248,177    $228,683



     
                Delek Logistics Partners, LP



     
                Distributable Coverage Ratio Calculation (Unaudited)



     
                (In thousands)


                                                                                Three Months Ended December
                                                                                      31,                            Year Ended December 31,


                                                                           2023             2022                2023                 2022



     Distributions to partners of Delek Logistics, LP                  $46,010          $44,440            $181,344             $172,933





     Distributable cash flow                                           $64,569          $51,351            $248,177             $218,079



     Distributable cash flow coverage ratio (1)                          1.40x           1.16x              1.37x               1.26x



     Distributable cash flow, as adjusted (2)                           64,569           51,351             248,177              228,683



     Distributable cash flow coverage ratio, as adjusted (3)             1.40x           1.16x              1.37x               1.32x




     
     (1) Distributable cash flow coverage ratio is calculated by dividing distributable cash flow by distributions to be paid in each
              respective period.



     
     (2) Distributable cash flow adjusted to exclude transaction costs associated with the Delaware Gathering Acquisition (formerly 3
              Bear).



     
     (3) Distributable cash flow coverage ratio, as adjusted is calculated by dividing distributable cash flow, as adjusted for
              transaction costs by distributions to be paid in each respective period.



     
                Delek Logistics Partners, LP


     
                Segment Data (Unaudited)


     
                (In thousands)




                                                                                                    
        
                Three Months Ended December 31, 2023


                                                             Gathering and               Wholesale                   Storage and                              Investments
                                                                                                                                                                   in                  Corporate and     Consolidated
                                                   Processing              Marketing and                Transportation                               Pipeline
                                                                                                                                                       Joint                    Other
                                                                           Terminalling                                                              Ventures



     
                Net revenues:



     Affiliate                                                    $55,175                  $62,560                        $31,665             
              $                -  
          $                -         $149,400



     Third party                                                   35,441                   64,895                          4,413                                                                               104,749



     Total revenue                                                $90,616                 $127,455                        $36,078             
              $                -  
          $                -         $254,149





     Segment EBITDA                                               $38,449                  $28,441                        $17,534                                    $8,535                    $(6,858)          $86,101



     Depreciation and amortization                                 17,670                    1,717                          2,730                                                                  850            22,967



     Amortization of customer contract intangible                                           1,803                                                                                                               1,803



     Interest expense, net                                                                                                                                                                   38,663            38,663



     Income tax expense                                                                                                                                                                                          520



     Net income                                                                                                                                                                                              $22,148





     Capital spending                                             $12,515                   $(416)                          $615             
              $                -  
          $                -          $12,714




                                                                                                    
        
                Three Months Ended December 31, 2023


                                                             Gathering and               Wholesale                   Storage and                              Investments
                                                                                                                                                                   in                  Corporate and     Consolidated
                                                   Processing              Marketing and                Transportation                               Pipeline
                                                                                                                                                       Joint                    Other
                                                                           Terminalling                                                              Ventures



     Segment EBITDA                                               $38,449                  $28,441                        $17,534                                    $8,535                    $(6,858)          $86,101



     Impairment of goodwill                                        14,848                                                                                                                                      14,848



     Segment Adjusted EBITDA                                      $53,297                  $28,441                        $17,534                                    $8,535                    $(6,858)         $100,949




                                                                                                    
        
                Three Months Ended December 31, 2022


                                                             Gathering and               Wholesale                   Storage and                              Investments
                                                                                                                                                                   in                  Corporate and     Consolidated
                                                   Processing              Marketing and                Transportation                               Pipeline
                                                                                                                                                       Joint                    Other
                                                                           Terminalling                                                              Ventures



     
                Net revenues:



     Affiliate                                                    $51,530                  $29,080                        $23,531             
              $                -  
          $                -         $104,141



     Third party                                                   38,417                  115,623                         10,870                                                                               164,910



     Total revenue                                                $89,947                 $144,703                        $34,401             
              $                -  
          $                -         $269,051





     Segment EBITDA                                               $48,121                  $23,285                        $16,057                                    $9,017                    $(4,014)          $92,466



     Depreciation and amortization                                 14,946                    1,634                          2,228                                                                  883            19,691



     Amortization of customer contract intangible                                           1,803                                                                                                               1,803



     Interest expense, net                                                                                                                                                                   28,683            28,683



     Income tax benefit                                                                                                                                                                                        (411)



     Net income                                                                                                                                                                                              $42,700





     Capital spending                                             $56,206                     $157                         $6,528             
              $                -  
          $                -          $62,891




                                                                                                      
          
                Year Ended December 31, 2023


                                                             Gathering and               Wholesale                   Storage and                              Investments
                                                                                                                                                                   in                  Corporate and     Consolidated
                                                   Processing              Marketing and                Transportation                               Pipeline
                                                                                                                                                       Joint                    Other
                                                                           Terminalling                                                              Ventures



     
                Net revenues:



     Affiliate                                                   $212,537                 $218,997                       $132,269             
              $                -  
          $                -         $563,803



     Third party                                                  158,573                  286,704                         11,329                                                                               456,606



     Total revenue                                               $371,110                 $505,701                       $143,598             
              $                -  
          $                -       $1,020,409





     Segment EBITDA                                              $199,463                 $106,512                        $63,850                                   $31,424                   $(30,969)         $370,280



     Depreciation and amortization                                 72,181                    7,055                          9,839                                                                3,309            92,384



     Amortization of customer contract intangible                                           7,211                                                                                                               7,211



     Interest expense, net                                                                                                                                                                  143,244           143,244



     Income tax expense                                                                                                                                                                                        1,205



     Net income                                                                                                                                                                                             $126,236





     Capital spending                                             $74,683                   $2,111                         $4,548             
              $                -  
          $                -          $81,342




                                                                                                      
          
                Year Ended December 31, 2023


                                                             Gathering and               Wholesale                   Storage and                              Investments
                                                                                                                                                                   in                  Corporate and     Consolidated
                                                   Processing              Marketing and                Transportation                               Pipeline
                                                                                                                                                       Joint                    Other
                                                                           Terminalling                                                              Ventures



     Segment EBITDA                                              $199,463                 $106,512                        $63,850                                   $31,424                   $(30,969)         $370,280



     Impairment of goodwill                                        14,848                                                                                                                                      14,848



     Segment Adjusted EBITDA                                     $214,311                 $106,512                        $63,850                                   $31,424                   $(30,969)         $385,128




                                                                                                      
          
                Year Ended December 31, 2022


                                                             Gathering and               Wholesale                   Storage and                              Investments
                                                                                                                                                                   in                  Corporate and     Consolidated
                                                   Processing              Marketing and                Transportation                               Pipeline
                                                                                                                                                       Joint                    Other
                                                                           Terminalling                                                              Ventures



     
                Net revenues:



     Affiliate                                                   $185,845                 $173,084                       $120,482             
              $                -  
          $                -         $479,411



     Third party                                                  119,582                  415,800                         21,614                                                                               556,996



     Total revenue                                               $305,427                 $588,884                       $142,096             
              $                -  
          $                -       $1,036,407





     Segment EBITDA                                              $175,250                  $83,098                        $56,269                                   $31,683                   $(34,363)         $311,937



     Depreciation and amortization                                 47,206                    6,308                          8,591                                                                  883            62,988



     Amortization of customer contract intangible                                           7,211                                                                                                               7,211



     Interest expense, net                                                                                                                                                                   82,304            82,304



     Income tax expense                                                                                                                                                                                          382



     Net income                                                                                                                                                                                             $159,052





     Capital spending                                            $122,594                   $1,548                         $6,528             
              $                -  
          $                -         $130,670



     
                Delek Logistics Partners, LP



     
                Segment Capital Spending



     
                 (In thousands)


                                                                 Three Months Ended December 31,                Year Ended December 31,



     
                Gathering and Processing                    2023                                 2022        2023                        2022



     Regulatory capital spending                       
     $       -                                $163         $31                      $2,855



     Sustaining capital spending                             1,036                                1,103       2,016                       1,455



     Growth capital spending                                11,479                               54,940      72,636                     118,284



     Segment capital spending                              $12,515                              $56,206     $74,683                    $122,594



     
                Wholesale Marketing and Terminalling



     Regulatory capital spending                              $553        
              $                -        924                         156



     Sustaining capital spending                             (591)                                   5         163                          24



     Growth capital spending                                 (378)                                 152       1,024                       1,368



     Segment capital spending                               $(416)                                $157      $2,111                      $1,548



     
                Storage and Transportation



     Regulatory capital spending                              $335        
              $                -     $2,005        
              $       -



     Sustaining capital spending                               280                                6,528       2,543                       6,528



     Growth capital spending                                     -                                      
     $     -       
              $       -



     Segment capital spending                                 $615                               $6,528      $4,548                      $6,528



     
                Consolidated



     Regulatory capital spending                              $888                                 $163      $2,960                      $3,011



     Sustaining capital spending                               725                                7,636       4,722                       8,007



     Growth capital spending                                11,101                               55,092      73,660                     119,652



     
                Total capital spending                   $12,714                              $62,891     $81,342                    $130,670



     
                Delek Logistics Partners, LP



     
                Segment Operating Data (Unaudited)


                                                                          Three Months Ended December
                                                                              31,                             Year Ended December 31,


                                                                     2023          2022                  2023             2022



     
                Gathering and Processing Segment:



     
                Throughputs (average bpd)



     El Dorado Assets:



         Crude pipelines (non-gathered)                           73,438        68,798                67,003           78,519



         Refined products pipelines to Enterprise Systems         68,552        35,585                58,181           56,382



     El Dorado Gathering System                                   13,329        13,136                13,782           15,391



     East Texas Crude Logistics System                            40,798        25,154                32,668           21,310



     Midland Gathering System (1)                                229,179       191,119               230,471          128,725



     Plains Connection System                                    254,224       234,164               250,140          183,827



     Delaware Gathering Assets (2):



     Natural Gas Gathering and Processing (Mcfd(3))               67,292        60,669                71,239           60,971



     Crude Oil Gathering (average bpd)                           112,522        91,526               111,335           87,519



     Water Disposal and Recycling (average bpd)                   94,686        80,028               102,340           72,056





     
                Wholesale Marketing and Terminalling Segment:



     East Texas - Tyler Refinery sales volumes (average bpd) (4)  68,735        64,825                60,626           66,058



     Big Spring marketing throughputs (average bpd)               76,408        74,238                77,897           71,580



     West Texas marketing throughputs (average bpd)               10,511        10,835                10,032           10,206



     West Texas gross margin per barrel                            $4.73         $5.64                 $5.18            $4.45



     Terminalling throughputs (average bpd) (5)                  105,933       127,277               113,803          132,262




     (1) 
     Formerly known as the Permian Gathering Assets.



     (2)   Volumes for the year ended December 31, 2022 are for the period from June 1 through December 31, 2022, for which we owned the
              Delaware Gathering Assets.



     (3) 
     Mcfd - average thousand cubic feet per day.



     (4) 
     Excludes jet fuel and petroleum coke.



     (5)   Consists of terminalling throughputs at our Tyler, Big Spring, Big Sandy and Mount Pleasant, Texas, El Dorado and North Little
              Rock, Arkansas and Memphis and Nashville, Tennessee terminals.

Information about Delek Logistics Partners, LP can be found on its website (www.deleklogistics.com), investor relations webpage (https://www.deleklogistics.com/investor-relations), news webpage (https://www.deleklogistics.com/news-releases) and its Twitter account (@DelekLogistics).

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SOURCE Delek Logistics Partners, LP