Delek Logistics Partners, LP Common Units (NYSE:DKL) Q2 2024 Earnings Conference Call August 6, 2024 1:30 PM ET

Company Participants

Robert Wright - Deputy Chief Financial Officer
Avigal Soreq - President
Reuven Spiegel - Executive Vice President & Chief Financial Officer
Odely Sakazi - Senior Vice President, Delek Logistics

Conference Call Participants

Neal Dingmann - Truist Securities
Doug Irwin - Citi

Operator

Thank you for standing by. My name is Joel, and I will be your conference operator today. At this time, I would like to welcome everyone to the Delek Logistics Partners Q2 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be question-and-answer session. [Operator Instructions]

I would now like to turn the conference over to Robert Wright, Deputy CFO. You may begin.

Robert Wright

Good morning, and welcome to the Delek Logistics Partners second quarter earnings conference call. Participants joining me 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 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.

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

Avigal Soreq

Thank you, Robert. Delek Logistics Partners had another record quarter. We reported $102.4 million quarterly adjusted EBITDA. I am pleased with our continued performance. We have made several announcements today. DKL is a premier full-service crude water and natural gas provider in the prolific Permian Basin. And the transaction we have announced today will significantly enhance our position.

First, let's talk about the contract between DKL, DK and Wink to Webster pipeline. We announced an amend and extent of the contract between DKL and DK. The extensions remove an overhang on the DKL unit. It moves away from a month-to-month to contract terms of up to seven years. These amendments allow us to acquire DK's interest in the W2W pipeline without significant strain on our balance sheet. W2W is a premier crude oil pipeline backed by investment grade counterparties. It increases the overall asset quality at DKL and enhance DKL Permian position.