Declared fourth quarter distribution of $0.885 per limited partner unit; increased by 9.3% percent year-over-year
Reported fourth quarter net income attributable to all partners of $21.6 million; EBITDA increased 6.1% year-over-year
Fourth quarter net cash from operations was $45.8 million
Distributable cash flow coverage ratio of 1.08x for the fourth quarter 2019
Forecasting 5% distribution growth in 2020
BRENTWOOD, Tenn., Feb. 25, 2020 (GLOBE NEWSWIRE) -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the fourth quarter 2019. For the three months ended December 31, 2019, Delek Logistics reported net income attributable to all partners of $21.6 million, or $0.52 per diluted common limited partner unit. This compares to net income attributable to all partners of $21.3 million, or $0.58 per diluted common limited partner unit, in the fourth quarter 2018. Net cash from operating activities was $45.8 million in the fourth quarter 2019 compared to $95.4 million in the fourth quarter 2018. Distributable cash flow was $33.0 million in the fourth quarter 2019, compared to $27.6 million in the fourth quarter 2018. Reconciliation of net cash from operating activities as reported under U.S. GAAP to distributable cash flow is included in the financial tables attached to this release.
For the fourth quarter 2019, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $43.3 million compared to $40.8 million in the fourth quarter 2018. Despite spill related costs of $7.1 million in the fourth quarter 2019, results improved on a year-over-year basis. This was primarily due to a $3.4 million increase to income from equity method investments, as well as increased contributions from the Paline Pipeline and Gathering Assets. This was partially offset by lower West Texas gross margin on a year-over-year basis. Reconciliation of net income attributable to all partners as reported under U.S. GAAP to EBITDA is included in the financial tables attached to this release.
Uzi Yemin, Chairman, President and Chief Executive Officer of Delek Logistics' general partner, remarked: "Delek Logistics delivered strong financial performance in fourth quarter with EBITDA increasing approximately 23% excluding spill related costs. Full-year 2019 distribution growth was over 10 percent on a year-over-year basis. The acquisition of the Red River pipeline joint venture bolstered results in 2019. The pipeline expansion, currently underway, should increase the contribution into the second half of 2020. Looking forward, we are targeting distribution growth of 5% in 2020. We are looking at simplifying the capital structure and preparing the balance sheet for potential asset drop-down options from our sponsor, Delek US Holdings, Inc. (NYSE: DK) ("Delek US"). From a strategic perspective, we remain focused on maintaining strong cash flow coverage and flexibility."
Distribution and Liquidity
On January 24, 2020, Delek Logistics declared a quarterly cash distribution of $0.885 per common limited partner unit for the fourth quarter 2019, which equates to $3.54 per common limited partner unit on an annualized basis. This distribution was paid on February 12, 2020 to unitholders of record on February 4, 2020. This represents a 1.0 percent increase from the third quarter 2019 distribution of $0.880 per common limited partner unit, or $3.52 per common limited partner unit on an annualized basis, and a 9.3% increase over Delek Logistics’ fourth quarter 2018 distribution of $0.810 per common limited partner unit, or $3.24 per common limited partner unit annualized. For the fourth quarter 2019, the total cash distribution declared to all partners, including incentive distribution rights (IDRs), was approximately $30.6 million. Based on the distribution for the fourth quarter 2019, the distributable cash flow coverage ratio for the fourth quarter was 1.08x.
As of December 31, 2019, Delek Logistics had total debt of approximately $833.1 million and cash of $5.5 million. Additional borrowing capacity, subject to certain covenants, under the $850.0 million credit facility was $261.6 million. The total leverage ratio, calculated in accordance with the credit facility, for the fourth quarter 2019 was approximately 4.43x, which is within the current requirements of the maximum allowable leverage ratio of 5.25x and a decrease from the third quarter 2019 level of 4.60x
Financial Results
Revenue for the fourth quarter 2019 was $138.6 million compared to $159.3 million in the prior-year period. The decrease in revenue is primarily due to lower prices and volumes in the west Texas wholesale business, partially offset by improved performance from the Gathering Assets and Paline Pipeline. Total operating expenses were $22.3 million in the fourth quarter 2019, compared to $15.9 million in the fourth quarter 2018. The increase was primarily due to spill related costs, higher maintenance and repair and outside services. Total contribution margin was $42.5 million in the fourth quarter 2019 compared to $45.0 million in the fourth quarter 2018. General and administrative expenses were $5.8 million for the fourth quarter 2019, compared to $7.4 million in the prior-year period, with the decrease being primarily due to services rendered in fourth quarter 2018 to support the development and operations of the Big Spring Gathering project not occurring in fourth quarter 2019.
Pipelines and Transportation Segment
Contribution margin in the fourth quarter 2019 was $25.2 million compared to $26.3 million in the fourth quarter 2018. Operating expenses were $18.7 million in the fourth quarter 2019 compared to $10.9 million in the prior-year period. The increase was primarily driven by spill related costs. Excluding those costs, the contribution margin would have increased year-over-year due to strong performance from Paline and the Gathering Assets.
Wholesale Marketing and Terminalling Segment
During the fourth quarter 2019, contribution margin was $17.3 million, compared to $18.8 million in the fourth quarter 2018. This decrease was primarily due to lower gross margin in west Texas. Operating expenses of $3.6 million in the fourth quarter 2019 were lower than the $5.0 million in the prior-year period.
In the west Texas wholesale business, average throughput in the fourth quarter 2019 was 9,972 barrels per day compared to 12,938 barrels per day in the fourth quarter 2018. The west Texas gross margin per barrel decreased year-over-year to $3.12 per barrel and included approximately $0.3 million, or $0.28 per barrel, from renewable identification numbers (RINs) generated in the quarter. During the fourth quarter 2018, the west Texas gross margin per barrel was $4.60 per barrel and included $0.2 million from RINs, or $0.14 per barrel.
Average terminalling throughput volume of 160,298 barrels per day during the fourth quarter 2019 decreased on a year-over-year basis from 164,028 barrels per day in the fourth quarter 2018. During the fourth quarter 2019, average volume under the East Texas marketing agreement with Delek US was 73,016 barrels per day compared to 77,896 barrels per day during the fourth quarter 2018.
Fourth Quarter 2019 Results | Conference Call Information
Delek Logistics will hold a conference call to discuss its fourth quarter 2019 results on Wednesday, February 26, 2020 at 7:30 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.Delek Logistics.com. Participants are encouraged to register at least 15 minutes early to download and install any necessary software. For those who cannot listen to the live broadcast, a telephonic replay will be available through March 11, 2020 by dialing (855) 859-2056, passcode 1297317. An archived version of the replay will also be available at www.DelekLogistics.com for 90 days.
Investors may also wish to listen to Delek US’ (NYSE: DK) fourth quarter 2019 earnings conference call on Wednesday, February 26, 2020 at 8:30 a.m. Central Time and review Delek US’ earnings press release. Market trends and information disclosed by Delek US may be relevant to Delek Logistics, as it is a consolidated subsidiary of Delek US. Investors can find information related to Delek US and the timing of its earnings release online by going to www.DelekUS.com.
About Delek Logistics Partners, LP
Delek Logistics Partners, LP, headquartered in Brentwood, Tennessee, was formed by Delek US Holdings, Inc. (NYSE: DK) to own, operate, acquire and construct crude oil and refined products logistics and marketing assets.
This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or similar expressions, as well as statements in the future tense, and can be impacted by numerous factors, including the fact that a substantial majority of Delek Logistics' contribution margin is derived from Delek US, thereby subjecting us to Delek US' business risks; risks relating to the securities markets generally; risks and costs relating to the age and operational hazards of our assets including, without limitation, costs, penalties, regulatory or legal actions and other effects related to releases, spills and other hazards inherent in transporting and storing crude oil and intermediate and finished petroleum products; the impact of adverse market conditions affecting the utilization of Delek Logistics' assets and business performance, including margins generated by its wholesale fuel business; an inability of Delek US to grow as expected as it relates to our potential future growth opportunities, including dropdowns, and other potential benefits; the results of our investments in joint ventures; the ability of the Red River joint venture to complete the expansion to increase the Red River pipeline capacity; adverse changes in laws including with respect to tax and regulatory matters; and other risks as disclosed in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports and filings with the United States Securities and Exchange Commission. Forward looking statements include, but are not limited to, statements regarding future growth at Delek Logistics; distributions and the amounts and timing thereof; potential dropdown inventory and the evaluation of incentive distribution rights; expected earnings or returns from joint ventures or other acquisitions; expansion projects; ability to create long-term value for our unit holders; financial flexibility and borrowing capacity; and distribution growth of 10% or at all. Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Delek Logistics undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof, except as required by applicable law or regulation
Non-GAAP Disclosures:
Our management uses certain "non-GAAP" operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our GAAP financial information presented in accordance with U.S. GAAP. These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include:
Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income before net interest expense, income tax expense, depreciation and amortization expense, including amortization of customer contract intangible assets, which is included as a component of net revenues in our accompanying condensed consolidated statements of income.
Distributable cash flow - calculated as net cash flow from operating activities plus or minus changes in assets and liabilities, less maintenance capital expenditures net of reimbursements and other adjustments not expected to settle in cash. Delek Logistics believes this is an appropriate reflection of a liquidity measure by which users of its financial statements can assess its ability to generate cash.
EBITDA and distributable cash flow are non-U.S. GAAP supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
Delek Logistics' operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;
Delek Logistics' ability to incur and service debt and fund capital expenditures; and
the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
Delek Logistics believes that the presentation of EBITDA, distributable cash flow and distributable cash flow coverage ratio provide useful information to investors in assessing its financial condition, its results of operations and the cash flow its business is generating. EBITDA, distributable cash flow and distributable cash flow coverage ratio should not be considered in isolation or as alternatives to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP.
Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net income and net cash provided by operating activities. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. Additionally, because EBITDA and distributable cash flow may be defined differently by other partnerships in its industry, Delek Logistics' definitions of EBITDA and distributable cash flow may not be comparable to similarly titled measures of other partnerships, thereby diminishing their utility. See the accompanying tables in this earnings release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures.
Delek Logistics Partners, LP
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except unit and per unit data)
December 31, 2019
December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents
$
5,545
$
4,522
Accounts receivable
13,204
21,586
Inventory
12,617
5,491
Other current assets
2,204
969
Total current assets
33,570
32,568
Property, plant and equipment:
Property, plant and equipment
461,325
452,746
Less: accumulated depreciation
(166,281
)
(140,184
)
Property, plant and equipment, net
295,044
312,562
Equity method investments
246,984
104,770
Operating lease right-of-use assets
3,745
—
Goodwill
12,203
12,203
Marketing Contract Intangible, net
130,999
138,210
Other non-current assets
21,902
24,280
Total assets
$
744,447
$
624,593
LIABILITIES AND DEFICIT
Current liabilities:
Accounts payable
$
12,471
$
14,226
Accounts payable to related parties
8,898
7,833
Interest Payable
2,572
2,664
Excise and other taxes payable
3,941
4,069
Current portion of operating lease liabilities
1,435
—
Accrued expenses and other current liabilities
5,765
7,713
Total current liabilities
35,082
36,505
Non-current liabilities:
Long-term debt
833,110
700,430
Asset retirement obligations
5,588
5,191
Deferred tax liabilities
215
—
Operating lease liabilities, net of current portion
2,310
—
Other non-current liabilities
19,261
17,290
Total non-current liabilities
860,484
722,911
Total liabilities
895,566
759,416
Equity (Deficit):
Common unitholders - public; 9,131,579 units issued and outstanding at December 31, 2019 (9,109,807 at December 31, 2018)
164,436
171,023
Common unitholders - Delek Holdings; 15,294,046 units issued and outstanding at December 31, 2019 (15,294,046 at December 31, 2018)
(310,513
)
(299,360
)
General partner - 498,482 units issued and outstanding at December 31, 2019 (498,038 at December 31, 2018)
(5,042
)
(6,486
)
Total deficit
(151,119
)
(134,823
)
Total liabilities and deficit
$
744,447
$
624,593
Delek Logistics Partners, LP
Condensed Consolidated Statements of Income (Unaudited)
(In thousands, except unit and per unit data)
Three Months Ended December 31,
Twelve Months Ended December 31,
2019
2018
2019
2018
Net revenues:
Affiliate
$
69,484
$
62,250
$
261,014
$
240,809
Third-party
69,126
97,048
322,978
416,800
Net revenues
138,610
159,298
583,992
657,609
Cost of Sales:
Cost of materials and other
73,760
98,417
336,473
429,061
Operating expenses (excluding depreciation and amortization presented below)
22,023
15,423
71,341
55,924
Depreciation and amortization
6,443
5,821
24,893
24,108
Total cost of sales
102,226
119,661
432,707
509,093
Operating expenses related to wholesale business (excluding depreciation and amortization presented below)
314
432
2,816
2,820
General and administrative expenses
5,769
7,367
20,815
17,166
Depreciation and amortization
457
448
1,808
1,882
Other operating expense (income), net
129
243
34
891
Total operating costs and expenses
108,895
128,151
458,180
531,852
Operating income
29,715
31,147
125,812
125,757
Interest expense, net
12,164
11,167
47,328
41,263
Income from equity method investments
(4,972
)
(1,549
)
(19,832
)
(6,230
)
Other expense, net
139
—
600
8
Total non-operating expenses, net
7,331
9,618
28,096
35,041
Income before income tax expense
22,384
21,529
97,716
90,716
Income tax expense (benefit)
746
249
967
534
Net income attributable to partners
$
21,638
$
21,280
$
96,749
$
90,182
Comprehensive income attributable to partners
$
21,638
$
21,280
$
96,749
$
90,182
Less: General partner's interest in net income, including incentive distribution rights
8,834
7,065
33,080
25,543
Limited partners' interest in net income
$
12,804
$
14,215
$
63,669
$
64,639
Net income per limited partner unit:
Common units - basic
$
0.52
$
0.58
$
2.61
$
2.65
Common units - diluted
$
0.52
$
0.58
$
2.61
$
2.65
Weighted average limited partner units outstanding:
Common units - basic
24,419,189
24,397,085
24,413,294
24,390,286
Common units - diluted
24,424,715
24,405,661
24,418,641
24,396,881
Cash distribution per limited partner unit
$
0.885
$
0.810
$
3.440
$
3.120
Delek Logistics Partners, LP
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
Twelve Months Ended December 31,
2019
2018
Cash flows from operating activities
Net income
$
96,749
$
90,182
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
26,701
25,990
Non-cash lease expense
193
—
Amortization of customer contract intangible assets
7,211
6,009
Amortization of deferred revenue
(1,688
)
(1,497
)
Amortization of deferred financing costs and debt discount
2,629
2,577
Accretion of asset retirement obligations
397
359
Income from equity method investments
(19,832
)
(6,230
)
Dividends from equity method investments
16,108
6,936
(Gain) loss on asset disposals
(197
)
891
Other non-cash adjustments
1,557
826
Changes in assets and liabilities:
Accounts receivable
8,382
1,427
Inventories and other current assets
(7,702
)
15,178
Accounts payable and other current liabilities
(4,836
)
(1,747
)
Accounts receivable/payable to related parties
1,065
9,038
Non-current assets and liabilities, net
3,662
3,019
Changes in assets and liabilities
571
26,915
Net cash provided by operating activities
130,399
152,958
Cash flows from investing activities
Asset acquisitions, net of assumed asset retirement obligation liabilities
—
(72,380
)
Purchases of property, plant and equipment
(9,070
)
(12,931
)
Proceeds from sales of property, plant and equipment
144
502
Purchases of intangible assets
—
(144,219
)
Distributions from equity method investments
804
1,162
Equity method investment contributions
(139,294
)
(173
)
Net cash used in investing activities
(147,416
)
(228,039
)
Cash flows from financing activities
Proceeds from issuance of additional units to maintain 2% General Partner interest
8
26
Distributions to general partner
(31,654
)
(23,698
)
Distributions to common unitholders - public
(30,626
)
(27,721
)
Distributions to common unitholders - Delek Holdings
(51,388
)
(46,417
)
Distributions to Delek Holdings unitholders and general partner related to Big Spring Logistic Assets Acquisition
—
(98,798
)
Proceeds from revolving credit facility
564,700
735,000
Payments on revolving credit facility
(433,000
)
(458,200
)
Deferred financing costs paid
—
(5,264
)
Net cash provided by (used in) financing activities
18,040
74,928
Net increase (decrease) in cash and cash equivalents
1,023
(153
)
Cash and cash equivalents at the beginning of the period
4,522
4,675
Cash and cash equivalents at the end of the period
$
5,545
$
4,522
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest
$
44,791
$
38,959
Income taxes
$
144
$
137
Non-cash investing activities:
Increase/(Decrease) in accrued capital expenditures
$
917
$
(1,363
)
Non-cash financing activities:
Sponsor contribution of fixed assets
$
—
$
154
Non-cash lease liability arising from obtaining right of use assets during the period
$
1,285
$
—
Non-cash lease liability arising from recognition of right of use assets upon adoption of ASU 2016-02
$
2,654
$
—
Delek Logistics Partners, LP
Reconciliation of Amounts Reported Under U.S. GAAP
(In thousands)
Three Months Ended December 31,
Twelve Months Ended December 31,
2019
2018
2019
2018
Reconciliation of Net Income to EBITDA:
Net income
$
21,638
$
21,280
$
96,749
$
90,182
Add:
Income tax expense
746
249
967
534
Depreciation and amortization
6,900
6,269
26,701
25,990
Amortization of customer contract intangible assets
1,803
1,803
7,211
6,009
Interest expense, net
12,164
11,167
47,328
41,263
EBITDA
$
43,251
$
40,768
$
178,956
$
163,978
Reconciliation of net cash from operating activities to distributable cash flow:
Net cash provided by operating activities
$
45,809
$
95,358
$
130,399
$
152,958
Changes in assets and liabilities
(14,793
)
(64,915
)
(571
)
(26,915
)
Non-cash lease expense
2,361
—
(193
)
—
Distributions from equity method investments in investing activities
—
205
804
1,162
Maintenance and regulatory capital expenditures
(2,947
)
(3,485
)
(8,569
)
(7,326
)
Reimbursement from Delek Holdings for capital expenditures
3,221
936
5,828
3,115
Accretion of asset retirement obligations
(99
)
(92
)
(397
)
(359
)
Deferred income taxes
(611
)
(152
)
(496
)
$
(152
)
Gain (loss) on asset disposals
102
(243
)
197
(891
)
Distributable Cash Flow
$
33,043
$
27,612
127,002
$
121,592
Delek Logistics Partners, LP
Distributable Coverage Ratio Calculation
(In thousands)
Three Months Ended December 31,
Twelve Months Ended December 31,
Distributions to partners of Delek Logistics, LP
2019
2018
2019
2018
Limited partners' distribution on common units
$
21,616
$
19,770
$
83,873
$
76,113
General partner's distributions
444
—
$
1,711
$
1,553
General partner's incentive distribution rights
8,573
6,775
$
31,781
$
24,224
Total distributions to be paid
$
30,633
$
26,545
$
117,365
$
101,890
Distributable cash flow
$
33,043
$
27,612
$
127,002
$
121,592
Distributable cash flow coverage ratio (1)
1.08x
1.04x
1.08x
1.19x
(1) Distributable cash flow coverage ratio is calculated by dividing distributable cash flow by distributions to be paid in each respective period.
Delek Logistics Partners, LP
Segment Data (unaudited)
(In thousands)
Three Months Ended December 31,
Twelve Months Ended December 31,
2019
2018
2019
2018
Pipelines and Transportation
Net revenues:
Affiliate
$
42,517
$
38,794
$
155,211
$
138,418
Third party
6,374
3,531
23,107
15,149
Total pipelines and transportation
48,891
42,325
178,318
153,567
Cost of sales:
Cost of materials and other
4,955
5,187
22,826
19,878
Operating expenses (excluding depreciation and amortization)
18,718
10,880
54,827
39,934
Segment contribution margin
$
25,218
$
26,258
$
100,665
$
93,755
Total Assets
$
537,580
$
387,333
Wholesale Marketing and Terminalling
Net revenues:
Affiliates (1)
$
26,967
$
23,456
$
105,803
$
102,391
Third party
62,752
93,517
299,871
401,651
Total wholesale marketing and terminalling
89,719
116,973
405,674
504,042
Cost of sales:
Cost of materials and other
68,805
93,230
313,647
409,183
Operating expenses (excluding depreciation and amortization)
3,619
4,975
19,330
18,810
Segment contribution margin
$
17,295
$
18,768
$
72,697
$
76,049
Total Assets
$
206,867
$
237,260
Consolidated
Net revenues:
Affiliates
$
69,484
$
62,250
$
261,014
$
240,809
Third party
69,126
97,048
322,978
416,800
Total consolidated
138,610
159,298
583,992
657,609
Cost of sales:
Cost of materials and other
73,760
98,417
336,473
429,061
Operating expenses (excluding depreciation and amortization presented below)
22,337
15,855
74,157
58,744
Contribution margin
42,513
45,026
173,362
169,804
General and administrative expenses
5,769
7,367
20,815
17,166
Depreciation and amortization
6,900
6,269
26,701
25,990
Loss (gain) on asset disposals
129
243
34
891
Operating income
$
29,715
$
31,147
$
125,812
$
125,757
Total Assets
$
744,447
$
624,593
(1) Affiliate revenue for the wholesale marketing and terminalling segment is presented net of amortization expense pertaining to the marketing contract intangible we acquired in connection with the Big Spring acquisition.
Delek Logistics Partners, LP
Segment Capital Spending
(In thousands)
Three Months Ended December 31,
Twelve Months Ended December 31,
Pipelines and Transportation
2019
2018
2019
2018
Maintenance capital spending
2,434
1,084
6,435
3,669
Discretionary capital spending
40
1,436
165
3,171
Segment capital spending
$
2,474
$
2,520
$
6,600
$
6,840
Wholesale Marketing and Terminalling
Maintenance capital spending
$
1,199
$
1,429
2,588
$
2,880
Discretionary capital spending
295
176
799
1,845
Segment capital spending
$
1,494
$
1,605
$
3,387
$
4,725
Consolidated
Maintenance capital spending
$
3,633
$
2,513
$
9,023
$
6,549
Discretionary capital spending
335
1,612
964
5,016
Total capital spending
$
3,968
$
4,125
$
9,987
$
11,565
Delek Logistics Partners, LP
Segment Data (Unaudited)
Three Months Ended December 31,
Twelve Months Ended December 31,
2019
2018
2019
2018
Pipelines and Transportation Segment:
Throughputs (average bpd)
Lion Pipeline System:
Crude pipelines (non-gathered)
55,521
45,416
42,918
51,992
Refined products pipelines to Enterprise Systems
53,960
41,496
37,716
45,728
Gathering Assets
30,917
15,536
21,869
16,571
East Texas Crude Logistics System
16,612
13,602
19,927
15,696
Wholesale Marketing and Terminalling Segment:
East Texas - Tyler Refinery sales volumes (average bpd) (1)
73,016
77,896
74,206
77,487
Big Spring marketing throughputs (average bpd) (2)
79,985
84,135
82,695
81,117
West Texas marketing throughputs (average bpd)
9,972
12,938
11,075
13,323
West Texas gross margin per barrel
$
3.12
$
4.60
$
4.44
$
5.57
Terminalling throughputs (average bpd) (3)
160,298
164,028
160,075
161,284
(1) Excludes jet fuel and petroleum coke.
(2) Throughputs for the twelve months ended December 31, 2018 are for the 306 days we marketed certain finished products produced at or sold from the Big Spring Refinery following the execution of the Big Spring Marketing Agreement, effective March 31, 2018.
(3) Consists of terminalling throughputs at our Tyler, Big Spring, Big Sandy and Mount Pleasant, Texas, our El Dorado and North Little Rock, Arkansas and our Memphis and Nashville, Tennessee terminals. Throughputs for the Big Spring terminal for twelve months ended December 31, 2018 are for the 306 days we operated the terminal following its acquisition effective March 1, 2018. Barrels per day are calculated for only the days we operated each terminal. Total throughput for the twelve months ended months ended December 31, 2018 was 56.6 million barrels, which averaged 155,193 bpd for the period.
Investor/Media Relations Contacts: Blake Fernandez, Senior Vice President of Investor Relations and Market Intelligence, 615-224-1312 Jeb Bachmann, Manager of Investor Relations and Market Intelligence, 615-224-1118 Lenny Raymond, Manager of Investor Relations and Market Intelligence, 615-224-0828
Keith Johnson, Vice President of Investor Relations, 615-435-1366
Media/Public Affairs Contact: Michael P. Ralsky, Vice President - Government Affairs, Public Affairs & Communications, 615-435-1407