Delek Logistics Partners LP (DKL) 2023 Q3 法說會逐字稿

Good day, and welcome to the Delek Logistics Partners' Third Quarter 2023 Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Rosy Zuklic, Vice President of Investor Relations. Please go ahead.

您好，歡迎參加 Delek Logistics 合作夥伴 2023 年第三季電話會議。 （操作員說明）請注意此事件正在被記錄。現在我想將會議交給投資者關係副總裁 Rosy Zuklic。請繼續。

Good day, and welcome to the Delek Logistics Partners' Third Quarter Earnings Conference Call.

美好的一天，歡迎參加德勒物流合作夥伴第三季財報電話會議。

Participants on today's call will include Avigal Soreq, President; Joseph Israel, EVP Operations; Reuven Spiegel, EVP and Chief Financial Officer; and Odely Sakazi, SVP, Delek Logistics.

今天電話會議的參與者包括總裁 Avigal Soreq； Joseph Israel，營運執行副總裁； Reuven Spiegel，執行副總裁兼財務長；以及 Delek Logistics 資深副總裁 Odely Sakazi。

As a reminder, this conference call will contain forward-looking statements as defined under the federal securities laws, including without limitation, statements regarding guidance and future business outlook. These statements involve risks and uncertainties that may cause actual results to differ from our forecast. For more information, please refer to the risk factors discussed in the company's most recently filed annual report on Form 10-K and quarterly report on Form 10-Q filed with the SEC, along with the press release associated with this call. The company assumes no obligation to update any forward-looking statements or information, which speak as of their respective dates.

提醒一下，本次電話會議將包含聯邦證券法定義的前瞻性聲明，包括但不限於有關指導和未來業務前景的聲明。這些陳述涉及風險和不確定性，可能導致實際結果與我們的預測不同。欲了解更多信息，請參閱該公司最近向 SEC 提交的 10-K 表年度報告和 10-Q 表季度報告中討論的風險因素，以及與本次電話會議相關的新聞稿。本公司不承擔更新任何前瞻性陳述或資訊的義務，這些陳述或資訊截至其各自日期。

I'll now turn the call over to Avigal for opening remarks. Avigal?

現在我將把電話轉給阿維加爾致開幕詞。阿維加爾？

Thank you, Rosy. Delek Logistics Partners delivered another record quarter with over $98 million in EBITDA. We have been pleased to see the consistent performance of our team and assets. We are very proud to be able to deliver that value back to our unitholders. This is a result of our dedication to the company's strategic objectives, growing third-party revenues, maintaining multiyear MVC contracts and keeping a focus on growth opportunities.

謝謝你，羅西。 Delek Logistics Partners 再次創下季度 EBITDA 超過 9,800 萬美元的紀錄。我們很高興看到我們的團隊和資產的穩定表現。我們非常自豪能夠將這項價值回饋給我們的單位持有者。這是我們致力於公司策略目標、增加第三方收入、維持多年 MVC 合約以及持續專注於成長機會的結果。

Midland Gathering achieved a record throughput this quarter as a result of our investment in the system. With the Delaware Gathering system, we were able to support our objective, diversifying revenue stream and increasing third-party business. Given our strong performance this quarter, we are confident in our ability to exceed $100 million in a quarterly EBITDA run rate by Q4 of this year.

由於我們對系統的投資，Midland Gathering 本季實現了創紀錄的吞吐量。借助特拉華收集系統，我們能夠支持我們的目標，實現收入來源多元化並增加第三方業務。鑑於我們本季的強勁表現，我們有信心到今年第四季我們的季度 EBITDA 運行率將超過 1 億美元。

I'm also very proud to say that DKL recently received operational award of excellence from the National Safety Council, demonstrating our team's dedication to safety and operational excellence. On October 25, our Board of Directors approved 5.6% increase in the quarterly distribution from prior year to $1.045 per limited partner unit for the third quarter of this year, highlighting our commitment to increasing the quarterly distribution.

我還非常自豪地說，DKL 最近獲得了國家安全委員會頒發的卓越營運獎，這體現了我們團隊對安全和卓越營運的奉獻精神。 10 月 25 日，我們的董事會批准今年第三季的季度分配比去年增加 5.6%，達到每個有限合夥人單位 1.045 美元，這凸顯了我們對增加季度分配的承諾。

I will now hand it over to Reuven.

我現在將其交給魯文。

Thank you, Avigal. Total EBITDA for DKL was $98 million for the third quarter of '23 compared with $89 million for the same period in '22. For the third quarter of '23, distributable cash flow was $61 million and the DCF coverage ratio was 1.35x. For the Gathering and Processing segment, EBITDA this quarter was $53 million. The EBITDA for the third quarter of '22 was $57 million, which benefited from a onetime credit. Excluding this, third quarter '23 results were higher than last year due to increased throughput from our Permian assets.

謝謝你，阿維加爾。 DKL 23 年第三季的 EBITDA 總額為 9,800 萬美元，而 22 年同期為 8,900 萬美元。 2023 年第三季度，可分配現金流量為 6,100 萬美元，折現現金流量覆蓋率為 1.35 倍。對於收集和處理部門，本季的 EBITDA 為 5,300 萬美元。 22 年第三季的 EBITDA 為 5,700 萬美元，受惠於一次性信貸。排除這一點，由於我們二疊紀資產的吞吐量增加，23 年第三季的業績高於去年。

Throughput of Midland Gathering averaged approximately 250,000 barrels per day for the third quarter, more than twice the average of 121,000 barrels per day in the third quarter of '22. The Wholesale Marketing and Terminalling segment EBITDA was $28 million for the quarter compared to $20 million in the third quarter of '22. The increase was due to higher utilization in our terminaling operations and improved margins in wholesale.

Midland Gathering 第三季的平均吞吐量約為每天 25 萬桶，是 2022 年第三季平均每天 121,000 桶的兩倍多。該季度批發行銷和終端業務部門的 EBITDA 為 2,800 萬美元，而 2022 年第三季為 2,000 萬美元。這一增長是由於我們的碼頭業務利用率提高以及批發利潤率提高。

The Storage and Transportation segment EBITDA was $18 million in the quarter compared with $15 million in the third quarter of '22. This segment benefited from recent industry-wide fee escalations. And lastly, the investment in pipeline joint venture segment contributed $9 million toward the second quarter of '23, slightly up from third quarter of '22.

本季儲存和運輸部門的 EBITDA 為 1800 萬美元，而 2022 年第三季為 1500 萬美元。該細分市場受益於最近全行業費用上漲。最後，管道合資企業部門的投資在 2023 年第二季貢獻了 900 萬美元，略高於 22 年第三季。

Moving on to capital expenditures. Third quarter '23 capital spending was $15 million. Most of that spend was for growth projects, namely advancing new connection in both the Midland and Delaware Gathering systems. For '23, we expect capital expense to be in the range of $85 million to $90 million, with approximately $10 million of growth CapEx to be partially funded by the producers. Including this, net capital expenditures for the year is in the range of $75 million to $80 million.

轉向資本支出。 23 年第三季資本支出為 1,500 萬美元。大部分支出用於成長項目，即推進米德蘭和德拉瓦收集系​​統的新連接。對於 23 年，我們預計資本支出將在 8,500 萬美元至 9,000 萬美元之間，其中約 1,000 萬美元的成長資本支出將部分由生產商提供資金。包括此在內，全年淨資本支出在7,500萬美元至8,000萬美元之間。

With that, we can open the call for questions.

這樣，我們就可以開始提問了。

(Operator Instructions) Our first question comes from Doug Irwin with Citi.

（操作員說明）我們的第一個問題來自花旗銀行的 Doug Irwin。

I just want to start with Permian volumes. You saw some really strong results in the Midland this quarter, but if you look at the Delaware, it lagged a little bit. I'm just curious if (inaudible) some of the same issues around extreme heat and compression constraints that we've heard some peers talk about this cycle? And if so, have these issues been resolved?

我只想從二疊紀卷開始。本季米德蘭的業績非常強勁，但如果你看看特拉華州，你會發現它有點落後。我只是好奇（聽不清楚）我們聽到一些同行談論這個週期時是否存在一些關於極端熱量和壓縮約束的相同問題？如果是的話，這些問題是否已解決？

Doug, it's Avigal. Thanks for jumping on the call. And we are not going to be specific on the numbers, but we are going to give you some highlights. We've seen the Permian base and DPG legacy gathering system is performing very well, and we are very pleased with the acreage we have and our investment over the years are yielding us very nicely. So that investment is absolutely going as we wanted. On the DPG former 3 Bear, we're also seeing a very stable operation. We are pleased with the progress of the team and the assets and it's trending in the right direction for sure. I allow Odely to give you more color. If you can?

道格，我是阿維格爾。感謝您接聽電話。我們不會具體說明數字，但我們將為您提供一些重點內容。我們已經看到二疊紀基地和 DPG 遺留收集系統表現非常良好，我們對我們擁有的面積非常滿意，而且我們多年來的投資為我們帶來了非常好的回報。因此，這項投資絕對會按照我們的意願進行。在 DPG 前 3 Bear 上，我們也看到了非常穩定的運行。我們對團隊和資產的進展感到滿意，並且肯定正在朝著正確的方向發展。我允許奧德利給你更多的色彩。如果可以的話？

Yes. Thank you, Avigal. And Doug, good to hear you again. This is Odely. So talking about those 2 segments as you mentioned, around the Midland gathering, as you've seen, we got our volume almost double than last year and also exceeded last quarter. This is basically benefiting us from the previous capital deployment we had both this year and also last year. So we start to benefit those on the volume side in DPG and also the associated infrastructure is very solid, close to our refinery and what we built in the recent years, so we kind of start to benefit that.

是的。謝謝你，阿維加爾。道格，很高興再次聽到你的聲音。這是奧德利。因此，談到您提到的這兩個部分，如您所見，圍繞著米德蘭聚會，我們的銷量幾乎是去年的兩倍，也超過了上季度。這基本上使我們受益於我們今年和去年的資本部署。因此，我們開始使 DPG 的產量方面受益，而且相關的基礎設施非常堅固，靠近我們的煉油廠和我們近年來建造的設施，所以我們開始受益。

And to your question around the DG around the Delaware Gathering assets, we still have been able to perform better than last year but slightly lower than last quarter. And this is, I think, something that you probably also heard from others as we face both us and also our producers as well and also the area with a lot of issue from a weather situation, both on the storm impact and also excessive heat during this time that impact both electricity and also availability for producers. So that's something that kind of impact everything. With that said (technical difficulty).

對於您關於特拉華州聚會資產總幹事的問題，我們的表現仍然比去年更好，但略低於上季度。我認為，您可能也從其他人那裡聽到了這一點，因為我們面臨著我們自己和我們的生產商，以及因天氣情況而面臨很多問題的地區，無論是風暴影響還是過熱天氣。這次，這既影響了電力，也影響了生產者的可用性。所以這會影響一切。話雖如此（技術難度）。

This concludes our question-and-answer session. I would like to turn the conference back over to Avigal Soreq for any closing remarks. We were having technical difficulties, and I am bringing in Avigal Soreq for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給 Avigal Soreq 進行閉幕致詞。我們遇到了技術困難，我邀請阿維加爾·索雷克（Avigal Soreq）發表結束語。

Thank you, Dave, for the call. Thank you to the team over here in the room that prepared and worked so hard. Thank you for the Board of Directors, our employees and the unitholders, and we are very excited about where DKL is and looking forward talking to you again next quarter. Thank you, Dave.

謝謝戴夫的來電。感謝房間裡的團隊，他們付出瞭如此多的努力和準備。感謝董事會、我們的員工和單位持有人，我們對 DKL 的現狀感到非常興奮，並期待下個季度再次與您交談。謝謝你，戴夫。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。