Delek Logistics Partners, LP (NYSE:DKL) Q3 2023 Earnings Conference Call November 7, 2023 12:30 PM ET

Company Participants

Rosy Zuklic - Vice President, Investor Relations

Avigal Soreq - President

Joseph Israel - Executive Vice President, Operations

Reuven Spiegel - Executive Vice President and Chief Financial Officer

Odely Sakazi - Senior Vice President, Delek Logistics

Conference Call Participants

Doug Irwin - Citi

Operator

Good day and welcome to the Delek Logistics Partners’ Third Quarter 2023 Conference Call. [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

Good day and welcome to the Delek Logistics Partners’ third 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 speak as of their respective dates.

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

Avigal Soreq

Thank you, Rosy. Delek Logistics Partners delivered another record quarter with over $98 million in EBITDA. We have been pleased to see the consistent performance of our team and assets. We are very proud to be able to deliver that value back to our unitholders. This is a result of our dedication to the company’s strategic objectives, growing third-party revenues, maintaining multiyear MVC contracts and keeping a focus on growth opportunities.

Midland Gathering achieved a record throughput this quarter as a result of our investment in the system. With the Delaware Gathering system, we were able to support our objective, diversifying revenue stream and increasing third-party business. Given our strong performance this quarter, we are confident in our ability to exceed $100 million in a quarterly EBITDA run rate by Q4 of this year.

I am also very proud to say that DKL recently received operational award of excellence from the National Safety Council, demonstrating our team’s dedication to safety and operational excellence. On October 25, our Board of Directors approved 5.6% increase in the quarterly distribution from prior year to $1.045 per limited partner unit for the third quarter of this year, highlighting our commitment to increasing the quarterly distribution.