Q4 2024 Delek Logistics Partners LP Earnings Call Transcript
Key Points
- Delek Logistics Partners LP (DKL) reported a record quarterly adjusted EBITDA of approximately $107 million.
- The company completed the acquisition of Delek's portion in the Wing to Webster pipeline, enhancing asset quality and competitive position.
- DKL announced a strong 2025 EBITDA guidance of $480 million to $520 million, representing around 20% growth over 2024 adjusted EBITDA.
- The board of directors approved the 48th consecutive increase in the quarterly distribution to $1.10 per unit.
- DKL has approximately $530 million of liquidity post-acquisition of Gravity Water Midstream, supporting financial flexibility.
- Wholesale marketing and terminaling adjusted EBITDA decreased to $21.2 million from $28.4 million in the prior year, primarily due to lower wholesale margins.
- The distributable cash flow coverage ratio was approximately 1.2 times, below the long-term objective of 1.3 times.
- The company faces risks and uncertainties that may cause actual results to differ materially from forward-looking statements.
- The capital expenditure for the fourth quarter was $49.4 million, with significant allocation to new gas processing plant projects.
- The buyback program is subject to market conditions and compliance with company covenants, which may impact execution timing.
Thank you for standing by. My name is Jay, and I will be a conference operator today. At this time, I would like to welcome everyone to the Delek fourth quarter 2024 earnings call. (Operator Instructions) And I'd like to turn the conference over to Robert Wright, Deputy CFO. You may begin.
Good morning and welcome to the Delek Logistics Partners fourth quarter earnings conference call. Participants joining me on today's call will include Avigal Soreq, President, Reuven Spiegel, EVP, Mark Hobbs, EVP. 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
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