Delek Logistics Partners, LP (NYSE:DKL) Q1 2024 Results Conference Call May 7, 2024 12:30 PM ET

Company Participants

Rosy Zuklic - Vice President, Investor Relations
Avigal Soreq - President
Reuven Spiegel - Executive Vice President & Chief Financial Officer
Odely Sakazi - Senior Vice President, Delek Logistics

Conference Call Participants

Doug Irwin - Citigroup
Neal Dingmann - Truist Securities

Operator

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. [Operator Instructions]

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

Rosy Zuklic

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, 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 partnership'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 partnership assumes no obligation to update any forward-looking statements or information, which speak as of the respective date. I'll now turn the call over to Avigal for opening remarks. Avigal?

Avigal Soreq

Thank you, Rosy. Delek Logistics Partners reported a strong first quarter. We once again exceeded $100 million of the quarterly EBITDA. I'm pleased with our consistent performance. We saw continued strong performance from our Midland Gathering operations and our operation in the Delaware basin has started to exceed our expectations on a consistent basis. This validates our strong position in the Permian Basin. We have come a long way with DKL. Delek Logistics started back in 2012 as a classic drop-down story.

It has evolved into something bigger. We started to develop third-party business back in 2016, focusing in the Midland and the Delaware Basins. Today, approximately 50% of our EBITDA is from third-party business. Our growth efforts have been focused on gathering and processing segment. Our Midland Gathering system has premier assets in the heart of the Midland Basin. We built this system organically. It's now gathered up to 230,000 barrels per day and has around 350,000 of dedicated acreage contracted until 2030.