The following is a summary of the Delek Logistics Partners, LP (DKL) Q1 2024 Earnings Call Transcript:
Financial Performance:
Delek Logistics Partners' Q1 2024 EBITDA exceeded $100 million, up from $93.2 million in Q1 2023.
The company reported distributable cash flow of $68 million with a DCF coverage ratio of 1.35x.
The EBITDA for the Gathering and Processing segment grew to $57.8 million from $55.4 million in the same period of the previous year.
The Storage and Transportation segment's EBITDA was $18.1 million, showing an increased performance from $13.4 million in Q1 2023.
Using the debt and equity offering, the company improved its liquidity to approximately $800 million from about $300 million before the transactions.
Business Progress:
The company had a successful performance from the Midland Gathering operations and consistent performance in the Delaware Basin operation.
The company plans to increase investment in new connections in the Midland and Delaware Gathering systems.
Delek approved the 45th consecutive increase in the quarterly distribution to $1.07 per unit, underlining the company's steady tradition of delivering value to its unitholders.
Furthermore, infrastructure in the Delaware area is set to offer comprehensive crude, gas, and water gathering services to customers, thereby expecting future growth in the system.
More details: Delek Logistics Partners LP IR
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