Delek Logistics Partners, LP (NYSE:DKL) Q2 2023 Earnings Conference Call August 7, 2023 12:30 PM ET

Company Participants

Rosy Zuklic - Vice President, Investor Relations

Avigal Soreq - President

Reuven Spiegel - Executive Vice President and Chief Financial Officer

Operator

Good day, and welcome to the Delek Logistics Partners Second Quarter Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Rosy Zuklic. Vice President of Investor Relations. Please go ahead.

Rosy Zuklic

Welcome to the Delek Logistics Partners second 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, statements regarding guidance and future business outlook. These statements involve risks and uncertainties that may cause actual results to differ from our forecast.

For more information, please refer to the risk factors discussed in the company’s most recently filed annual report on Form 10-K and quarterly report on Form 10-Q filed with the SEC along with the press release associated with this call. The company assumes no obligation to update any forward-looking statements or information, which speaks as of their respective dates.

I’ll now turn the call to Avigal for opening remarks.

Avigal Soreq

Thanks, Rosy.

Delek Logistics Partners delivered another great quarter with $93 million of EBITDA. Delek Logistics has been able to provide consistent results and stable cash flow. We are encouraged by our positive outlook. As the production in Permian Basin ramps up, we continue on our promising growth path with increased scale and efficiency. We are proud to say that our acreage has outperformed average growth in the basin.

The Midland Gathering System volumes have more than doubled from a year ago and we are excited to identify more value-add opportunities with our producers. Our Delaware Gathering assets are performing well and meeting our expectations. We now expect to exceed $100 million a quarter EBITDA run rate by Q4 of this year.

On July 26, our Board of Directors approved 5.1% increase in the quarterly distribution from the prior year to $1.035 per limited partner unit for the second quarter of 2023. We are committed to continuing increasing the quarterly distribution.