Delek Logistics Partners LP (DKL) 2025 Q2 法說會逐字稿

Thank you for standing by. My name is Jael, and I will be your conference operator today. At this time, I would like to welcome everyone to the Delek Logistics Partners second-quarter 2025 earnings call.

感謝您的支持。我叫 Jael，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Delek Logistics Partners 2025 年第二季財報電話會議。

(Operator Instructions)

（操作員指示）

I would now like to turn the conference over to Robert Wright, Chief Financial Officer. You may begin.

現在我想將會議交給財務長羅伯特·賴特 (Robert Wright)。你可以開始了。

Good morning, and welcome to the Delek Logistics Partners second-quarter earnings conference call. Participants joining me on today's call will include Avigal Soreq, President; Reuven Spiegel, EVP.

早安，歡迎參加 Delek Logistics Partners 第二季財報電話會議。參加今天電話會議的人員包括總裁 Avigal Soreq 和執行副總裁 Reuven Spiegel。

As a reminder, this conference call will contain forward-looking statements as defined under the federal securities laws, including statements regarding guidance and future business outlook. Any forward-looking statements made during today's call involve risks and uncertainties that may cause actual results to differ materially from today's comments. Factors that could cause actual results to differ are included in our SEC filings. The company assumes no obligation to update any forward-looking statements.

提醒一下，本次電話會議將包含聯邦證券法定義的前瞻性陳述，包括有關指導和未來業務展望的陳述。今天電話會議中做出的任何前瞻性陳述都涉及風險和不確定性，可能導致實際結果與今天的評論有重大差異。可能導致實際結果不同的因素已包含在我們向美國證券交易委員會提交的文件中。該公司不承擔更新任何前瞻性陳述的義務。

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

現在我將把電話轉給阿維加爾 (Avigal) 致開幕詞。阿維加爾？

Thank you, Robert.

謝謝你，羅伯特。

Delek Logistics Partners had another record quarter. We reported approximately $120 million in quarterly adjusted EBITDA. DKL is on track to deliver its full-year EBITDA guidance of $480 million to $520 million. Delek Logistics continue to make substantial progress in improving its position as a premier full-service crude, natural gas, and water provider in the most prolific areas of the Permian basin. During the quarter, we successfully completed the commissioning of the new Libby plant. We are very excited about the opportunities this expansion has opened for us and expect to fill the plant to capacity in the second half of 2025. This expansion and our ongoing efforts on acid gas injection and sour gas handling capabilities will further improve our natural gas offering in the Delaware Basin.

Delek Logistics Partners 再創季度紀錄。我們報告的季度調整後 EBITDA 約為 1.2 億美元。DKL 預計將實現 4.8 億至 5.2 億美元的全年 EBITDA 預期。Delek Logistics 持續取得實質進展，提升其作為二疊紀盆地最豐富地區的頂級全方位原油、天然氣和水供應商的地位。本季度，我們成功完成了新利比工廠的調試。我們對此次擴建為我們帶來的機會感到非常興奮，並預計在 2025 年下半年工廠將達到滿載生產。此次擴建以及我們在酸性氣體注入和酸性氣體處理能力方面的持續努力將進一步改善我們在特拉華盆地的天然氣供應。

I'm also very pleased with our crude and water gathering operations. Both VPG and DTG crude gathering operations have started the second half of the year strong with both showing significant rise in volumes. We look forward to continue building on its strength through the remainder of 2025 and beyond. Between our two water acquisitions and increasing dedication, we expect to grow our competitive position in both Midland and the Delaware basis.

我對我們的原油和水收集作業也非常滿意。VPG 和 DTG 原油收集業務在下半年都表現強勁，產量均大幅成長。我們期待在 2025 年剩餘時間及以後繼續增強其實力。透過兩次水務收購和不斷加大投入，我們期望在米德蘭和特拉華州提升我們的競爭地位。

As we have demonstrated in the past, we will continue to grow our partnership to prudent management of leverage and coverage. We not only intend to remain good stewards of stakeholder capital, we also intend to continue to reward them through our peer leading distributions. I am pleased to announce that our Board of Directors have approved the 50th consecutive increase in quarterly distributions to $1.115 per unit. This is an extraordinary achievement and we are extremely proud of our team and financial prudence that have gotten us here.

正如我們過去所表明的那樣，我們將繼續發展我們的合作夥伴關係，以審慎管理槓桿和覆蓋範圍。我們不僅打算繼續做好利害關係人資本的管理，我們還打算繼續透過同業領先的分配來獎勵他們。我很高興地宣布，我們的董事會已批准連續第 50 次增加季度分配至每單位 1.115 美元。這是一項非凡的成就，我們為我們的團隊和財務審慎使我們取得了這樣的成就感到非常自豪。

To conclude, we are very excited about the prospect of Delek Logistics. We expect to continue on our value creation path moving forward, and we will continue to grow our distribution in the future.

總而言之，我們對德萊克物流的前景感到非常興奮。我們期望繼續沿著我們的價值創造之路前進，並且未來我們將繼續擴大我們的分銷。

I will now hand it over to Reuven, who will provide more details on our operations.

現在我將把發言權交給 Reuven，他將提供有關我們行動的更多細節。

Thank you, Avigal.

謝謝你，阿維加爾。

As Avigal mentioned, our excitement about DKL's future is growing, and we continue to work diligently to strengthen our advantaged Permian position. As I mentioned on our last call, we have begun commissioning our Libby 2 gas plant. Since then, we have completed the commissioning and transferred the plan to operation. The plant is performing according to expectations. And as Avigal mentioned, we expect to fill up the plant up over the remainder of the year.

正如阿維加爾所說，我們對 DKL 的未來越來越興奮，我們將繼續努力加強我們在二疊紀的優勢地位。正如我在上次通話中提到的，我們已經開始調試利比 2 號天然氣廠。自那時起，我們已經完成調試並將該計劃轉入營運。該工廠的運作符合預期。正如阿維加爾 (Avigal) 所提到的，我們預計今年剩餘時間內工廠的產能將達到滿載運轉。

As we also mentioned in our last call, planned CapEx for Libby 2 included investments that will support future expansions of the Libby Complex. Our current focus around Libby Complex is to continue progressing our sour gas treating, gathering and acid gas injection capabilities.

正如我們在上次電話會議中提到的那樣，Libby 2 的計劃資本支出包括支持 Libby 綜合體未來擴建的投資。我們目前圍繞利比綜合設施的重點是繼續提高我們的酸性氣體處理、收集和酸性氣體注入能力。

We continue to believe that our expanded gas processing and sour gas handling capabilities provide a unique offering to our customers and provides us with a long runway of growth in the Delaware Basin. Additionally, since we are one of the few companies which can handle all three streams; crude, gas, and water; our natural gas G&P expansion is opening additional opportunities for us on crude and water gathering in the Delaware Basin.

我們始終相信，我們擴大的天然氣處理和酸性氣體處理能力將為我們的客戶提供獨特的服務，並為我們在特拉華盆地提供長期的成長空間。此外，由於我們是少數能夠處理原油、天然氣和水三種資源的公司之一，我們的天然氣 G&P 擴張為我們在特拉華盆地收集原油和水資源開闢了更多機會。

As Avigal mentioned, we have seen our crude gathering volumes rise to start the third quarter, and we expect to continue to see this trend going forward. On the Midland side, the integration of the two water gathering systems from H2O and Gravity is progressing well, and we expect to use our larger footprint to enhance our combined crude and water offering in the Howard, Martin, and Glasgow counties.

正如阿維加爾所提到的，我們看到我們的原油收集量在第三季開始時有所上升，我們預計這一趨勢將持續下去。在米德蘭方面，H2O 和 Gravity 的兩個集水系統的整合進展順利，我們希望利用更大的覆蓋範圍來增強我們在霍華德、馬丁和格拉斯哥縣的原油和水的綜合供應。

Finally, we continue to look for opportunities to make our operations more efficient with target to improve margins across our operations.

最後，我們繼續尋找機會提高我們的營運效率，目標是提高整個營運的利潤率。

With that, I will pass it on to Robert.

說完這些，我就會把它傳給羅伯特。

Thank you.

謝謝。

As both Avigal and Reuven have mentioned, we are continuing the growth story of Delek Logistics. We remain focused on maintaining healthy liquidity to support this growth while ensuring that our leverage aligns with our long-term targets. Specifically, the success of our high-yield notes offering completed earlier this summer increased our availability by $700 million to over $1 billion.

正如 Avigal 和 Reuven 所提到的，我們正在延續 Delek Logistics 的成長故事。我們將繼續致力於維持健康的流動性以支持這一成長，同時確保我們的槓桿率與我們的長期目標保持一致。具體來說，今年夏初我們成功發行了高收益票據，這使我們的可用資金增加了 7 億美元，達到 10 億美元以上。

Moving on to our second-quarter results. The second-quarter adjusted EBITDA was approximately $120 million compared to $102 million in the same period of 2024. Distributable cash flow as adjusted was $73 million, and the DCF coverage ratio was approximately 1.22 times. We expect this ratio to continue to rise throughout the remainder of the year as our growth projects, including the Libby 2 gas plant start to meaningfully contribute to our results.

接下來介紹我們的第二季業績。第二季調整後的 EBITDA 約為 1.2 億美元，而 2024 年同期為 1.02 億美元。調整後的可分配現金流量為 7,300 萬美元，DCF 覆蓋率約為 1.22 倍。我們預計，隨著包括利比 2 號天然氣廠在內的成長項目開始對我們的業績做出有意義的貢獻，這一比率將在今年剩餘時間內繼續上升。

For the Gathering and Processing segment, adjusted EBITDA for the quarter was $78 million, compared to $55 million in the second quarter of 2024. The increase was primarily due to the acquisitions of H2O and Gravity.

對於收集和加工部門，本季調整後的 EBITDA 為 7,800 萬美元，而 2024 年第二季為 5,500 萬美元。這一成長主要歸因於收購 H2O 和 Gravity。

Wholesale Marketing and Terminalling adjusted EBITDA was $23 million, compared to $30 million in the prior year. The decrease was primarily due to the impact of last summer's amend and extend agreements with DK.

批發行銷和終端調整後的 EBITDA 為 2,300 萬美元，而上年為 3,000 萬美元。下降主要是由於去年夏天與 DK 修改和延長協議的影響。

Storage and Transportation adjusted EBITDA in the quarter was $17 million, compared with $17 million in the second quarter of 2024.

本季倉儲和運輸調整後的 EBITDA 為 1,700 萬美元，而 2024 年第二季為 1,700 萬美元。

And lastly, the investments in Pipeline Joint Venture segment contributed $11 million this quarter compared with $8 million in the second quarter of 2024. The increase was primarily due to the Wink to Webster drop down in August of last year.

最後，管道合資企業部門的投資本季貢獻了 1,100 萬美元，而 2024 年第二季為 800 萬美元。成長的主要原因是去年 8 月 Wink to Webster 數量下降。

Moving on to capital expenditures. The capital program for the second quarter was approximately $119 million, $150 million of this capital spend related to growth CapEx with around $48 million attributed to the completion of the Libby 2 gas processing plant. The project was very successful and finished on track from both a timing and cost perspective. The remainder of the capital spend for the period was other growth projects, namely advancing new connections in the Midland and Delaware gathering systems. As to our outlook for the balance of the year, we continue to remain on track for the EBITDA guidance we laid out for the full year of $480 million to $520 million.

繼續討論資本支出。第二季的資本計畫約為 1.19 億美元，其中 1.5 億美元的資本支出與成長資本支出有關，約 4,800 萬美元歸因於利比 2 號天然氣處理廠的竣工。該專案非常成功，從時間和成本角度來看都按計劃完成。該期間剩餘的資本支出用於其他成長項目，即推進米德蘭和德拉瓦收集系​​統的新連接。至於我們對今年剩餘時間的展望，我們將繼續保持對全年 EBITDA 4.8 億美元至 5.2 億美元的預期。

With that, we can now open the call for questions.

好了，我們現在可以開始提問了。

(Operator Instructions)

（操作員指示）

Doug Irwin, Citi.

花旗銀行的道格歐文。

I wanted to start with the processing plant here. I realize you talked about ramping to capacity in the second half of the year, but just wondering if you could share where you're seeing volumes trending today as commissioning was completed. And then the press release pointed to further expansions here potentially. Just curious how you're thinking about any timing of those expansions and whether those would also include more treating capacity along with more processing.

我想從這裡的加工廠開始。我知道您談到了下半年的產能提升，但我只是想了解一下，在調試完成後，您能否分享一下目前產量的趨勢。然後新聞稿指出這裡可能會進一步擴張。只是好奇您是如何考慮這些擴張的時間的，以及這些擴張是否還包括更多的處理能力以及更多的處理能力。

Yes. Doug, thank you for joining us. And as we said in the prepared remarks, we're really excited about the operation and what we have done there, both on the capital side and the operations side, and it's all coming together very, very nicely, and we are very happy about that. So with that said, I will let Reuven -- that takes the lead around that activity to give some more color.

是的。道格，感謝您加入我們。正如我們在準備好的發言中所說的那樣，我們對這次運營以及我們在那裡所做的一切感到非常興奮，無論是在資本方面還是運營方面，一切都進展得非常順利，我們對此感到非常高興。因此，話雖如此，我會讓 Reuven 來帶頭進行這項活動，為活動增添更多色彩。

Thank you, Avigal. Thanks for the question.

謝謝你，阿維加爾。謝謝你的提問。

As Avigal said, the plant was completed on time. The commissioning phase takes some time, but it was done according to our planned schedule and with a big focus on reliability. As we are speaking right now, we are flowing gas. We're doing it gradually, and we expect to run full by year end. The execution of this project within the time line and the budget is what gives us the confidence and the comfort to reaffirm our guideline of $480 million to $520 million.

正如阿維加爾所說，工廠按時竣工。調試階段需要一些時間，但它是按照我們的計劃時間表進行的，並且非常注重可靠性。正如我們現在所說的那樣，我們正在流動氣體。我們正在逐步推進，預計到年底將全面完成。該項目在規定時間和預算內完成，讓我們有信心、有信心重申 4.8 億至 5.2 億美元的指導方針。

In addition to that, our focus is now on the sour gas (technical difficulty) processing and we're working -- we already constructed the amine unit, and now we're working on drilling the AGI wells the -- and executing on other infrastructure-related projects associated with the sour. So we are on track on that project as well, and we are coordinating the time line and the efforts with their producers.

除此之外，我們現在的重點是酸性氣體（技術難度）處理，我們正在努力——我們已經建造了胺裝置，現在我們正在鑽探 AGI 井——並執行與酸性氣體相關的其他基礎設施項目。因此，我們在該專案上的進展也十分順利，我們正在與製作人協調時間表和工作。

(multiple speakers) -- for more development, we have to stay tight. We obviously have the opportunity. We said in the previous call that we have made some investments, but we will announce it once we feel that we are ready to announce it and not announce it before. So that's very much on our mind.

（多位發言者）－為了更大發展，我們必須保持緊密聯繫。我們顯然有機會。我們在之前的電話會議中說過，我們已經進行了一些投資，但我們會在覺得準備好的時候才宣布，而不是提前宣布。所以我們非常關心這個問題。

Understood.

明白了。

And maybe just a follow-up on the sour gas treating side. We obviously saw some assets change hands in the Delaware recently. Just curious your view of that deal, how kind of those assets might compare to your footprint right there in the Delaware as well and just -- your views just on the broader competitive environment for treating capacity in the Delaware as it seems like it's becoming an increased focus for some players in the basin.

也許只是對酸性氣體處理的後續行動。我們顯然看到最近特拉華州的一些資產易手。我只是好奇您對這筆交易的看法，這些資產與您在特拉華州的足跡相比如何，以及您對特拉華州處理能力的更廣泛競爭環境的看法，因為它似乎正成為該盆地一些參與者關注的焦點。

Yes. Doug, I think you're absolutely right. You covered the sector very well, and you're the one, obviously, Northwind, you're probably referring to that is a very close system to us. There is some similarity in configuration, but we also have capabilities that are not necessarily in Northwind and Mohit will cover that in a second.

是的。道格，我認為你完全正確。您對這個領域的報道非常透徹，顯然，Northwind，您可能指的是與我們非常接近的系統。配置上有一些相似之處，但我們也具有 Northwind 中不一定具備的功能，Mohit 將在稍後介紹這一點。

With that said, every time that we see such a high multiple in our neighborhood, it's a good thing for us, and it showed the intrinsic value that we see in the DKL asset, and we are very proud and excited to develop them to full capacity to the benefit of the unitholder. Mohit, do you want to explain the difference between the systems?

話雖如此，每次我們在附近看到如此高的倍數時，對我們來說都是一件好事，它顯示了我們在 DKL 資產中看到的內在價值，我們非常自豪和興奮能夠充分開發它們，造福單位持有人。Mohit，你想解釋一下這兩個系統之間的差異嗎？

Yes, Avigal, thanks.

是的，阿維加爾，謝謝。

So Doug, I think we've talked about this multiple times in the past. This transaction is a great reaffirmation of our strategy and as far as the gas processing, gathering, and our entire business and the delivery is concerned. So we're very happy to see that benchmark. And I think I mentioned this on earlier telecall, I don't know if you got a chance to listen to it. Northwind just has trading capacity. They don't have processing capacity. We have a much bigger fuller strategy around natural gas, including sour gas gathering, treating, processing, and we like our comprehensive system a lot better. But this definitely provides us a benchmark. We followed the transaction very closely and I think it's a great reaffirmation of our strategy, as I mentioned before.

道格，我想我們過去已經多次談論過這個問題。就天然氣加工、收集以及我們的整個業務和交付而言，這筆交易是對我們的策略的極大肯定。所以我們很高興看到這個基準。我想我在之前的電話會議中提到過這一點，我不知道你是否有機會聽到它。Northwind 剛好有交易能力。他們沒有處理能力。我們對天然氣有更大、更全面的策略，包括酸性氣體的收集、處理、加工，我們更喜歡我們的綜合系統。但這無疑為我們提供了一個基準。我們密切關注著這筆交易，正如我之前提到的，我認為這是對我們策略的極大肯定。

Gabe Moreen, Mizuho.

加布·莫林，瑞穗。

Just wanted to stay on the M&A topic. Just kind of wondering your latest thoughts in terms of what you're seeing out there in the market. Obviously, you've got a lot of liquidity now on the DKL side post the high-yield offerings. So just wondering what you're seeing out there, whether in the Delaware, Midland, water, crude, or gas or otherwise?

只是想繼續討論併購話題。我只是有點想知道您對市場上所看到的情況的最新想法。顯然，在高收益發行之後，DKL 方面現在擁有大量流動性。所以只是想知道你在那裡看到了什麼，無論是德拉瓦州、米德蘭、水、原油、天然氣還是其他？

So thank Gabe. We do have liquidity, but our first in mind is to create value for for investors. We've done that through increasing distribution. We have done that in inorganic development. And we are doing that by reducing our cost of capital, and that was a very big initiative for the time.

所以感謝 Gabe。我們確實有流動性，但我們首先考慮的是為投資者創造價值。我們透過增加分銷實現了這一目標。我們在無機開發方面已經做到了這一點。我們透過降低資本成本來實現這一目標，這在當時是一項非常重大的舉措。

Specifically on the high-yield market, when we are looking on M&A, we are looking on three things, it needs to be free cash flow accretive, it needs to be accretive to leverage ratio, it needs to be accretive for coverage ratio, and it needs to fit our strategy. We are always looking. And if the opportunity presents itself, we are not trying to make a move but we are also on the sell side, if the opportunity presents itself on the other side, we can do the other way around.

具體來說，在高收益市場上，當我們考慮併購時，我們會考慮三件事：它需要增加自由現金流，它需要增加槓桿率，它需要增加覆蓋率，它需要符合我們的策略。我們一直在尋找。如果機會出現，我們不會試圖採取行動，但我們也站在賣方立場，如果機會出現在另一方，我們可以反過來做。

So we are not -- I want you to fully understand that we are not married to an asset. Our whole purpose in life to create value and we can -- as we demonstrate in the last year, we can play on each side of the table by creating a huge value to investors. So I think that's the message.

所以我們不是——我希望你充分理解，我們並不是與資產結合。我們人生的全部目的就是創造價值，正如我們去年所展示的那樣，我們可以在雙方之間發揮作用，為投資者創造巨大的價值。所以我認為這就是訊息。

Perfect. Thanks, Avigal.

完美的。謝謝，阿維加爾。

And then maybe if we can talk about just what you're hearing from producers in their plans. Clearly, there's been a lot of commodity price volatility, where you're feeling about where you may come in, in the $480-million to $520-million range for guidance? Just maybe your latest thoughts there, given all the shifting background there.

然後，也許我們可以談談您從生產商那裡聽到的計劃。顯然，大宗商品價格波動很大，您認為您的預期收入在 4.8 億美元到 5.2 億美元之間嗎？考慮到那裡不斷變化的背景，這也許只是您最近的想法。

Yes, absolutely. So let's start with the easy one. Let's talk about producers. So we are -- as I said many times in the past, we are in the most prolific area of the Permian Basin. We feel very good with our guidance $480 million and five -- to $520 million. And I think we are one of the a few (technical difficulty) the reiterated guidance versus the sector that took some breathing room on their guidance and took them down just a little bit. So you need to feel very good with that.

是的，絕對是。那麼就讓我們從簡單的開始吧。讓我們來談談製作人。所以，正如我過去多次說過的，我們正處於二疊紀盆地最富饒的地區。我們對 4.8 億美元和 5 至 5.2 億美元的預期感到非常滿意。我認為我們是少數幾個（技術難題）重申指導方針的行業之一，而該行業在其指導方針上留出了一些喘息空間，並將其略微下調。所以你應該對此感到很高興。

You probably also heard me saying in the prepared remarks that we see uptick in volume on Q3 on crude, both from the Delaware system, the DTG and the Midland system, VPG. So that's another thing that you need to feel good about. We are very -- we have a very good relationship with our customer.

您可能也聽到我在準備好的發言中說過，我們看到第三季原油交易量有所上升，無論是來自特拉華系統 DTG 還是米德蘭系統 VPG。所以這是另一件讓你感到高興的事。我們與客戶的關係非常好。

We have a mature customer. We have a great [rock] to work with our breakeven in our area [alone]. So I don't think that any -- there is now where crude is [65] stable kind of a deal. I don't see any problem with where we are giving the lowest breakeven, so we feel very good with where we are.

我們有一個成熟的客戶。我們有一塊很棒的岩石，可以幫助我們實現所在地區的損益平衡[獨自的]。因此，我認為目前不存在任何原油價格穩定的交易。我認為，我們所給出的最低損益平衡點沒有任何問題，因此，我們對目前的狀況感到非常滿意。

There are no further questions. That concludes our Q&A session. I'll now turn the conference back over to Avigal Soreq for closing remarks.

沒有其他問題了。我們的問答環節到此結束。現在我將會議交還給 Avigal Soreq 並請他致閉幕詞。

Thank you. So I would like to thank my colleagues here around the table. I would like to thank you, the investors, sell side, buy side, and I would like to thank the Board of Directors and mostly to thank our entire employees that make our partnership as good as it is. So thank you.

謝謝。因此，我要感謝在座的各位同事。我要感謝你們，投資人、賣方、買方，我要感謝董事會，最重要的是感謝我們全體員工，是他們讓我們的合作關係如此良好。所以謝謝你。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。