Q1 2024 Delek Logistics Partners LP Earnings Call Transcript
Key Points
- Delek Logistics Partners reported a strong first quarter with over $100 million in quarterly EBITDA, demonstrating consistent performance.
- Significant growth in the Midland and Delaware basins, with about 50% of EBITDA now generated from third-party business.
- Successful capital structure improvements, including a debt and equity offering that increased liquidity to approximately $800 million and reduced leverage ratio.
- 45th consecutive increase in quarterly distribution to $1.7 per unit, reflecting a strong track record of delivering value to unitholders.
- Strategic investments in growth projects, particularly in the Midland and Delaware Gathering Systems, enhancing infrastructure and service capabilities.
- Forward-looking statements indicate potential risks and uncertainties that could affect future results.
- Dependence on the performance of assets in the Permian Basin, which could be impacted by regional market dynamics or operational challenges.
- The need for continuous capital investments to sustain growth and expand operations, which could strain financial resources if not managed effectively.
- Ongoing necessity to manage and renegotiate MVC contracts, which could affect stability and predictability of cash flows.
- Potential market and operational risks associated with expanding both organically and inorganically, requiring careful strategic planning and execution.
Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Delek Logistics Partners first quarter 2024 earnings conference call.
All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) I would now like to turn the conference over to Rosie to click, Vice President, Investor Relations. Please go ahead.
Good morning, and welcome to the Delek Logistics Partners first quarter earnings conference call. 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.
As a reminder, this conference call will contain forward-looking statements as defined under the federal securities laws, including without limitation,
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