Delek Logistics Partners, LP (NYSE: DKL) has released its investor presentation for March 2024, which provides a comprehensive overview of its financial and operational performance.
The ownership structure of Delek Logistics Partners, LP includes 72.7% interest with 34.3 million common limited partner units and 27.3% interest with 12.9 million common limited partner units.
In terms of asset overview, the company's operations include gathering and processing, wholesale marketing and terminalling, storage and transportation, as well as pipeline joint ventures. The company owns approximately 240 miles of the gathering system in the Midland Basin, with 65 tank battery connections and terminals with a total storage capacity of approximately 400,000 barrels.
Key financial highlights for 2023 include an adjusted EBITDA of $385.1 million, net income of $126.2 million, and distributable cash flow of $248.2 million. As of December 31, 2023, the company had $269.5 million of unused credit facility, $70.0 million availability under the Related Party Revolving Credit Facility, and $3.8 million of cash. The company has focused on maintaining a strong coverage and improving the leverage ratio to less than 4x.
The company's strategic initiatives include growing the Permian Gathering System based on accelerating producer activity, expanding business development efforts throughout all three commodities, and increasing third-party business to reduce sponsor dependency.
The investor presentation also details the company's cash flows, stability, and diversification, with approximately half of its net revenues coming from third parties. The company continues to focus on growing third-party revenues, with gathering and processing third-party revenues up 33% versus FY 2022.
The presentation also outlines the company's financial strength, with strong and stable distributions, a distribution per unit of $1.055, and a DCF coverage ratio of 1.37x.
In terms of financial flexibility, the company has optimized its balance sheet, with a leverage ratio of approximately 4.34x as of December 31, 2023.
The presentation also includes a summary of a follow-on offering of $650 million of 8.625% Senior Notes due 2029, which significantly extends the company's debt maturity profile.
The market has reacted to these announcements by moving the company's shares 0.4% to a price of $40.83. If you want to know more, read the company's complete 8-K report here.
