The following is a summary of the Delek Logistics Partners, LP Common Units (DKL) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Delek Logistics reported an adjusted EBITDA of $102.4 million for Q2 2024, an increase from $92.8 million in Q2 2023.

• Distributable cash flow was reported at $68 million and the coverage ratio at 1.32 times.

• Segment earnings: Gathering and Processing contributed $54.7 million, Wholesale Marketing and Terminalling provided $30.2 million, and Storage and Transportation accounted for $16.8 million in the EBITDA.

Business Progress:

• Announced an extended contract with DK for the W2W pipeline up to seven years.

• Acquisition of H2O Midstream for $230 million, enhancing midstream service capabilities in the Permian Basin.

• Introduced a new gas processing plant projected to complete in H1 2025 with estimated cash on cash returns of over 20%.

• Quarterly distribution to unitholders increased to $1.09 per unit.

Opportunities:

• Enhanced position in the Permian Basin with acquisitions and infrastructure investments.

• Expanding the customer base and operational efficiency through the full suite of midstream services after the H2O Midstream acquisition.

• New gas processing plant expected to meet rising needs in the region, synergistic with existing operations.

Risks:

• Dependence on the successful integration and performance of newly acquired assets including H2O Midstream.

• Potential risks associated with the expanded contract terms and investments in infrastructure.

More details: Delek Logistics Partners LP IR

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