Delek Logistics Partners, LP Reports Fourth Quarter and Full-Year 2013 Results

  Delek Logistics Partners, LP Reports Fourth Quarter and Full-Year 2013
  Results

Business Wire

BRENTWOOD, Tenn. -- February 25, 2014

Delek Logistics Partners, LP (NYSE: DKL) (“Delek Logistics”), a
growth-oriented master limited partnership focused on owning and operating
midstream energy infrastructure, today announced financial results for the
fourth quarter and full year 2013.

For the fourth quarter 2013, Delek Logistics reported net income attributable
to partners of $11.3 million, or $0.46 per diluted limited partner unit.
Distributable cash flow was $13.3 million for the quarter.

For 2013, net income attributable to partners was $47.8 million, or $1.93 per
diluted limited partner unit. Distributable cash flow was $52.9 million for
the year.

Distribution Update

On January 23, 2014, Delek Logistics declared a quarterly cash distribution of
approximately $10.2 million, or $0.415 per unit that was paid on February 13,
2014, which equates to $1.66 per unit on an annualized basis. This represents
a 2.5 percent increase from the third quarter 2013 distribution of $0.405 per
unit, or $1.62 per unit on an annualized basis, and is 10.7 percent higher
than Delek Logistics’ minimum quarterly distribution of $0.375 per unit, or
$1.50 per unit on an annualized basis.

As of December 31, 2013, Delek Logistics had a cash balance of $0.9 million
and total debt was $164.8 million. Availability under the $400 million credit
facility was $223.2 million at year end.

Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics’ general
partner, remarked: “Our fourth quarter results benefited from the July
purchase of the tank farm and terminal in Tyler, Texas and was a solid finish
to a successful first full year of operations. During 2013, we generated
approximately $64 million of EBITDA and completed three acquisitions for $105
million. These combined acquisitions have an expected EBITDA of approximately
$11.5 million on an annual basis. In addition, we increased the quarterly
distribution by 10.7 percent over our minimum quarterly distribution and ended
the year with a distributable cash flow coverage ratio of approximately 1.3
times. Our financial position allowed us to start 2014 off with continued
growth as we completed the purchase of the El Dorado logistics assets from
Delek US in February for $95.9 million, which is expected to add approximately
$10 million of annual EBITDA. Moving forward, we remain focused on providing
growth in both our operations and distributions throughout 2014.”

Financial Results

Delek Logistics commenced operations on November 7, 2012 upon the completion
of its initial public offering (the “Offering”) and the concurrent
contribution of certain assets from its sponsor, Delek US Holdings, Inc.
(NYSE: DK) (“Delek US”). For accounting purposes, the results from operations
prior to the Offering from the assets and entities that were contributed to
Delek Logistics concurrent with the Offering and the Tyler tank farm and
product terminal purchased in July 2013 were attributed to their respective
predecessor periods. Management believes results presented from these periods
are not directly comparable year over year.

Revenue for the fourth quarter was $223.1 million and contribution margin was
$18.6 million. Total operating expenses were $7.2 million and general and
administrative expenses were $1.7 million for the quarter. For the fourth
quarter 2013, earnings before interest, taxes, depreciation and amortization
(“EBITDA”) was $16.7 million. This compares to a contribution margin of $18.4
million and EBITDA of $16.6 million in the third quarter 2013. Results in the
third quarter 2013 that are presented for comparison purposes take into
account the contribution from the Tyler tank farm and terminal from the
acquisition date of July 26, 2013.

Wholesale Marketing and Terminalling Segment

Contribution margin was $6.8 million in the fourth quarter 2013, compared to
$7.7 million in the third quarter 2013. Contribution from a full quarter of
operation of the Tyler, Texas terminal that was purchased in July, and the
addition of the North Little Rock terminal purchased in October were factors
partially offsetting lower throughput in this segment compared to the third
quarter 2013. During the fourth quarter, throughput under the east Texas
marketing agreement with Delek US of 55,279 barrels per day was lower on a
sequential basis compared to 61,698 barrels per day during the third quarter
2013. This was primarily due to turnaround work on some units in December at
Delek US’ Tyler, Texas refinery.

In west Texas, throughput of 18,009 barrels per day benefited as demand for
refined products remained strong due to economic growth in the west Texas area
related to oil drilling activity. The margin per barrel in west Texas was
$1.24 and included approximately $0.7 million, or $0.43 per barrel from
renewable identification numbers (RINs) generated in the quarter. This
compares to $1.63 per barrel, including $2.0 million, or $1.13 per barrel from
RINs, during the third quarter 2013. On a sequential basis compared to the
third quarter, a decline in the value of RINs related to ongoing ethanol
blending activities was the primary factor in a lower gross margin per barrel.

Terminalling throughput volume of 69,994 barrels per day during the quarter
was lower sequentially from the third quarter primarily due to planned
turnaround activity at Delek US’ Tyler, TX refinery in December.

Pipeline and Transportation Segment

The Pipeline and Transportation segment’s contribution margin of $11.8 million
improved from $10.8 million in the third quarter 2013. This increase is
primarily attributed to a full quarter of storage fees associated with the
Tyler tank farm purchased in late July. As expected, fees derived from the
East Texas Crude Logistics System, which supports Delek US’ Tyler, TX refinery
continued at minimum contractual levels due to the reconfiguration of a third
party pipeline that commenced service on April 1, 2013 to supply crude to this
refinery.

Recent Acquisitions

On February 10, 2014, Delek Logistics acquired substantially all of the active
tanks and the product terminal from a subsidiary of Delek US for $95.9 million
in cash. These assets are expected to contribute at least $10.1 million of
EBITDA annually. The tank farm has approximately 2.5 million barrels of
aggregate shell capacity and consists of 158 tanks and ancillary assets,
including piping and pumps. The product terminal operated at an approximate
total throughput of 12,500 barrels per day during the nine months ended
September 30, 2013 and has an estimated capacity of 26,700 barrels per day.
These assets are located adjacent to and within Delek US’ El Dorado, Arkansas
refinery and will continue to support that operation in the future. In
connection with this transaction, among other agreements, an eight year
throughput and tankage agreement for the terminal assets, storage tanks and
related assets was entered into with a subsidiary of Delek US.

On October 24, 2013, Delek Logistics purchased a light products terminal in
North Little Rock, Arkansas from an affiliate of Enterprise Products Partners
LP. This terminal has a throughput capacity of approximately 10,000 barrels
per day and is expected to contribute approximately $800,000 of EBITDA in the
first twelve months of operation. This terminal is expected to be supplied by
Delek US’ El Dorado, Arkansas refinery through the Enterprise light products
pipeline. Capital expenditures are planned in the amount of $5.4 million to
increase biodiesel blending ability and gasoline and diesel throughput
capacity to approximately 17,500 barrels per day at this terminal over time.

Fourth Quarter and Full-Year 2013 Results | Conference Call Information

Delek Logistics will hold a conference call to discuss its fourth quarter and
full-year 2013 results on February 26, 2014 at 9:00 a.m. Central Time.
Investors will have the opportunity to listen to the conference call live by
going to www.DelekLogistics.com and clicking on the Investor Relations tab.
Participants are encouraged to register at least 15 minutes early to register,
download and install any necessary software. For those who cannot listen to
the live broadcast, a telephonic replay will be available through May 26, 2014
by dialing (855) 859-2056, passcode 44430857. 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 and
full year 2013 earnings conference call on Thursday, February 27, 2014 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 Logistic 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.

Safe Harbor Provisions Regarding Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of
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 Holdings, thereby
subjecting us to Delek US Holdings’ business risks, risks relating to the
securities markets generally, the impact of adverse market conditions
affecting the business of Delek Logistics, 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. There
can be no assurance that actual results will not differ from those expected by
management or described in forward-looking statements of Delek Logistics.
Delek Logistics undertakes no obligation to update or revise such
forward-looking statements to reflect events or circumstances that occur, or
which Delek Logistics becomes aware of, after the date hereof.

Factors Affecting Comparability:

The following tables present financial and operational information for the
three months and twelve months ended December 31, 2013 and 2012. Delek
Logistics commenced operations on November 7, 2012 upon successful completion
of its initial public offering (the “Offering”) and the concurrent
contribution of certain assets from its sponsor, Delek US. For accounting
purposes, the results from operations prior to November 7, 2012 from the
assets and entities that were contributed to us concurrent with the Offering,
were attributed to Delek Logistics Partners, LP Predecessor (our
“Predecessor”). Because many of these assets were historically a part of the
integrated operations of Delek US, the Predecessor generally recognized the
costs and most revenue associated with the gathering, pipeline,
transportation, terminalling and storage services provided to Delek US on an
intercompany basis or charged low or no throughput or storage fees for
transportation.

On July 26, 2013, we acquired from Delek US the Tyler Assets. The Tyler Assets
were a transfer between entities under common control. Accordingly, the
accompanying financial statements of the DKL Predecessor and the Partnership
have been retrospectively adjusted to include the historical results of the
Tyler Assets for all periods presented through July 26, 2013, the date of the
acquisition (the “Tyler Predecessor”). We refer to the historical results of
the DKL Predecessor and the Tyler Assets collectively as our Predecessor(s).

Non-GAAP Disclosures:

EBITDA and distributable cash flow are non-U.S. GAAP supplemental financial
measures that management and external users of our combined financial
statements, such as industry analysts, investors, lenders and rating agencies,
may use to assess:

  *our 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;

  *our 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 and distributable
cash flow provide useful information to investors in assessing our financial
condition, our results of operations and cash flow our business is generating.
EBITDA and distributable cash flow should not be considered as alternatives to
net income, operating income, cash from operations or any other measure of
financial performance or liquidity presented in accordance with U.S. GAAP.
EBITDA and distributable cash flow 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. Additionally, because EBITDA and
distributable cash flow may be defined differently by other companies in our
industry, Delek Logistics’ definitions of EBITDA and distributable cash flow
may not be comparable to similarly titled measures of other companies, thereby
diminishing their utility. Please see the tables below for a reconciliation of
EBITDA and distributable cash flow to their most directly comparable financial
measures calculated and presented in accordance with U.S. GAAP.






Delek Logistics Partners, LP
Reconciliation of Amounts Reported Under U.S. GAAP

                    Three Months Ended
                                                   Year Ended
                    December 31,
($ in thousands)    2013            2012 ^(1)       2013 ^(2)   2012 ^(1)
Reconciliation
of EBITDA to net                     Predecessors                 Predecessors
income:
Net income          $  11,325        $   23,456      $ 40,977     $  24,818
Add:
Income taxes        210              (19,207     )   757          (14,024    )
Depreciation and    3,362            2,400           12,436       10,120
amortization
Interest            1,807           906            4,570       2,682      
expense, net
EBITDA              $  16,704       $   7,555      $ 58,740    $  23,596  
                                                                  
Reconciliation
of EBITDA to net
cash provided by
(used in)
operating
activities:
Net cash
provided by
(used in)           $  8,907         $   31,143      $ 44,391     $  26,612
operating
activities
Amortization of
unfavorable
contract            667              668             2,623        668
liability to
revenue
Amortization of
deferred            (447       )     (235        )   (1,007   )   (381       )
financing costs
Accretion of
asset retirement    (53        )     (108        )   (216     )   (187       )
obligations
Deferred taxes      (267       )     93              (309     )   228
Loss on asset       (166       )     (4          )   (166     )   (9         )
disposals
Stock-based
compensation        —                —               —            (92        )
expense
Unit-based
compensation        (285       )     (1          )   (464     )   (1         )
expense
Changes in
assets and          6,331            (24,233     )   8,561        (10,434    )
liabilities
Income taxes        210              (673        )   757          4,510
Interest            1,807              905         4,570       2,682   
expense, net
EBITDA              $  16,704       $   7,555      $ 58,740    $  23,596  
                                                                  
Reconciliation
of distributable
cash flow to
EBITDA:
EBITDA              $  16,704        $   7,555       $ 58,740     $  23,596
Less: Cash          1,360            671             3,563        2,301
interest, net
Less:
Maintenance and
Regulatory          1,322            2,715           7,179        8,054
capital
expenditures
Less: Capital
improvement         459              —               2,219        —
expenditures
Add:
Reimbursement
from Delek for      374              —               837          —
capital
expenditures
Less: Income tax    210              (673        )   757          4,510
expense
Add: Non-cash
share-based         —                92              —            92
compensation
expense
Add: Non-cash
unit-based          285              1               464          1
compensation
expense
Less:
Amortization of     50               —               204          —
deferred revenue
Less:
Amortization of
unfavorable         667             668            2,623       668        
contract
liability
Distributable       $  13,295       $   4,267      $ 43,496    $  8,156   
cash flow

^(1) The information presented includes the results of operations of our
Predecessors. Prior to the completion of the Offering and the Tyler
acquisition, our Predecessors did not record revenues for intercompany
gathering, pipeline transportation, terminalling and storage services.
^(2) The information presented includes the results of operations of the Tyler
Predecessor. Prior to the completion of the Tyler acquisition, the Tyler
Predecessor did not record revenues for intercompany gathering, pipeline
transportation, terminalling and storage services.







Delek Logistics Partners, LP
Reconciliation of Amounts Reported Under U.S. GAAP

                                            Tyler Terminal
                      Delek Logistics       and
                                                            Year Ended
                      Partners, LP          Tank Assets
                                            ^(1)
($ in thousands)      1/1/2013 -           1/1/2013 –          December 31,
                      12/31/2013            7/26/2013            2013
                                            Tyler
                                            Predecessor
Reconciliation of
EBITDA to net
income:
Net income            $   47,830            $   (6,853  )        $  40,977
Add:
Income taxes          757                   —                    757
Depreciation and      10,686                1,750                12,436
amortization
Interest expense,     4,570                —                   4,570      
net
EBITDA                $   63,843          $   (5,103  )       $  58,740  
                                                                 
Reconciliation of
EBITDA to net cash
from operating
activities:
Net cash provided
by operating          $   49,447            $   (5,056  )        $  44,391
activities
Amortization of
unfavorable           2,623              —                    2,623
contract liability
to revenue
Amortization of
debt issuance         (1,007       )     —                    (1,007        )
costs
Accretion of asset
retirement            (161         )     (55            )     (216          )
obligations
Deferred taxes        (309         )     —                    (309          )
Loss on asset         (166         )     —                    (166          )
disposals
Unit-based
compensation          (464         )     —                    (464          )
expense
Changes in assets     8,553              8                    8,561
and liabilities
Income taxes          757                —                    757
Interest expense,     4,570             —                   4,570         
net
EBITDA                $   63,843          $   (5,103  )       $  58,740  
                                                                 
Reconciliation of
distributable cash
flow to EBITDA:
EBITDA                $   63,843            $   (5,103  )        $  58,740
Less: Cash            3,563              —                    3,563
interest, net
Less: Maintenance
and Regulatory        4,038              3,141                7,179
capital
expenditures
Less: Capital
improvement           1,089              1,130                2,219
expenditures
Add: Reimbursement
from Delek for        837                —                    837
capital
expenditures
Less: Income tax      757                —                    757
expense
Add: Non-cash
unit-based            464                —                    464
compensation
expense
Less: Amortization
of deferred           204                —                    204
revenue
Less: Amortization
of unfavorable        2,623             —                   2,623         
contract liability
Distributable cash    $   52,870          $   (9,374  )       $  43,496  
flow

^(1) The information presented is for the year ended December 31, 2013,
disaggregated to present the results of the Tyler Predecessor. Prior to the
completion of the Tyler acquisition on July 26, 2013, the Tyler Predecessor
did not record revenues for intercompany terminalling and storage services.







Delek Logistics Partners, LP
Condensed Consolidated Balance Sheets (Unaudited)

                                                   December 31,
                                                    2013         2012 ^(1)
                                                                  Predecessors
                                                    (In thousands)
ASSETS
Current assets:
Cash and cash equivalents                           $ 924         $  23,452
Accounts receivable                                 28,976        27,725
Inventory                                           17,512        14,351
Deferred tax assets                                 12            14
Other current assets                                341          169        
Total current assets                                47,765       65,711     
Property, plant and equipment:
Property, plant and equipment                       235,588       216,048
Less: accumulated depreciation                      (36,306   )   (24,991    )
Property, plant and equipment, net                  199,282      191,057    
Goodwill                                            10,454        10,454
Intangible assets, net                              12,258        12,430
Other non-current assets                            5,045        3,664      
Total assets                                        $ 274,804    $  283,316 
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable                                    $ 26,045      $  21,849
Accounts payable to related parties                 1,513         10,148
Fuel and other taxes payable                        5,700         4,650
Accrued expenses and other current liabilities      5,776        3,650      
Total current liabilities                           39,034       40,297     
Non-current liabilities:
Revolving credit facility                           164,800       90,000
Asset retirement obligations                        2,993         3,177
Deferred tax liabilities                            324           17
Other non-current liabilities                       5,612        9,810      
Total non-current liabilities                       173,729      103,004    
Equity:
Predecessor division equity                         —             35,590
Common unitholders - public; 9,353,240 units
issued and outstanding at December 31, 2013         183,839       178,728
(9,200,000 at December 31, 2012)
Common unitholders - Delek; 2,799,258 units
issued and outstanding at December 31, 2013         (176,680  )   (127,129   )
(2,799,258 at December 31, 2012)
Subordinated unitholders - Delek; 11,999,258
units issued and outstanding at December 31, 2013   59,386        52,875
(11,999,258 at December 31, 2012)
General partner - Delek; 492,893 units issued and
outstanding at December 31, 2013 (489,766 at        (4,504    )   (49        )
December 31, 2012)
Total equity                                        62,041       140,015    
Total liabilities and equity                        $ 274,804    $  283,316 

^(1) Includes the historical balances of the Tyler Terminal and Tank Assets.







Delek Logistics Partners, LP
Condensed Consolidated Statements of Income (Unaudited)
                                               
                   Three Months Ended
                                                  Year Ended
                   December 31,
                   2013           2012 ^(1)      2013 ^(2)     2012 ^(1)
                                   Predecessors                  Predecessors
                   (In thousands, except unit and per unit data)
                   
Net sales          $   223,097     $  249,216     $  907,428     $ 1,022,586
Operating costs
and expenses:
Cost of goods      197,316         229,684        811,364        959,434
sold
Operating          7,227           9,760          30,302         30,397
expenses
General and
administrative     1,684           2,213          6,856          9,150
expenses
Depreciation
and                3,362           2,400          12,436         10,120
amortization
Loss on sale of    166            4             166           9           
assets
Total operating
costs and          209,755        244,061       861,124       1,009,110   
expenses
Operating          13,342         5,155         46,304        13,476      
income
Interest           1,807          906           4,570         2,682       
expense, net
Net income
before income      11,535         4,249         41,734        10,794      
tax expense
(benefit)
Income tax
expense            210            (19,207    )   757           (14,024     )
(benefit)
Net income         $   11,325      $  23,456      $  40,977      $ 24,818
Less: (Loss)
income             —              (2,636     )   (6,853     )   16,408      
attributable to
Predecessors
Net income
attributable to    11,325         26,092        47,830        8,410       
partners
Comprehensive
income             $   11,325     $  26,092     $  47,830     $ 8,410     
attributable to
partners
                                                                 
Less: General
partner's          227            522           957           168         
interest in net
income (2%)
Limited
partners'          $   11,098     $  25,570     $  46,873     $ 8,242     
interest in net
income
                                                                 
Net income per
limited partner
unit:
Common units -     $   0.46        $  1.07        $  1.95        $ 0.34
(basic)
Common units -     $   0.46        $  1.07        $  1.93        $ 0.34
(diluted)
Subordinated
units - Delek      $   0.46        $  1.07        $  1.95        $ 0.34
(basic and
diluted)
                                                                 
Weighted
average limited
partner units
outstanding:
Common units -     12,057,310      11,999,258     12,025,249     11,999,258
basic
Common units -     12,193,630      11,999,258     12,148,774     11,999,258
diluted
Subordinated
units - Delek      11,999,258      11,999,258     11,999,258     11,999,258
(basic and
diluted)
                                                                 
Cash
distribution       $   0.415       $  0.224       $  1.600       $ 0.224
per unit

^(1) The information presented includes the results of operations of our
Predecessors. Prior to the completion of the Offering and the Tyler
acquisition, our Predecessors did not record revenues for intercompany
gathering, pipeline transportation, terminalling and storage services.
^(2) The information presented includes the results of operations of the Tyler
Predecessor. Prior to the completion of the Tyler acquisition, the Tyler
Predecessor did not record revenues for intercompany gathering, pipeline
transportation, terminalling and storage services.







Delek Logistics Partners, LP
Condensed Consolidated Statements of Income (Unaudited)
Reconciliation of Partnership to Predecessor
                                                           
                         Delek Logistics    Tyler Terminal
                                            and                 Year Ended
                         Partners, LP
                                            Tank Assets ^(1)
                         1/1/2013 -         1/1/2013 -          December 31,
                         12/31/2013         7/26/2013           2013
                                            Tyler
                                            Predecessor
                         (In thousands, except unit and per unit data)
Net Sales                $   907,428        $   —               $  907,428
Operating costs and
expenses:
Cost of goods sold       811,364            —                   811,364
Operating expenses       25,801             4,501               30,302
General and
administrative           6,254              602                 6,856
expenses
Depreciation and         10,686             1,750               12,436
amortization
Loss on asset            166               —                  166         
disposals
Total operating          854,271           6,853              861,124     
costs and expenses
Operating income         53,157             (6,853       )      46,304
Interest expense,        4,570             —                  4,570       
net
Net income before        48,587             (6,853       )      41,734
income tax expense
Income tax expense       757               —                  757         
Net income               $   47,830         $   (6,853   )      $  40,977
Less: Loss
attributable to          —                 (6,853       )      (6,853      )
Predecessors
Net income
attributable to          $   47,830        $   —              $  47,830   
partners

^(1) The information presented is a summary of our results of operations for
the year ended December 31, 2013, disaggregated to present the results of
operations of the Tyler Predecessor. Prior to the completion of the Tyler
acquisition on July 26, 2013, the Tyler Predecessor did not record revenues
for intercompany terminalling and storage services.








Delek Logistics Partners, LP
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
                                                              
                                                Year Ended December 31,
                                                2013              2012 ^(1)
                                                                  Predecessors
Cash Flow Data
Cash flows provided by operating activities:    $  44,391         $  26,612
Cash flows used in investing activities:        (20,135     )     (50,010    )
Cash flows (used in) provided by financing      (46,784     )     46,815     
activities:
Net increase in cash and cash equivalents       $  (22,528  )     $  23,417  

^(1) Adjusted to include the historical cash flows of the Tyler Terminal and
Tank Assets.








Delek Logistics Partners, LP
Segment Data (unaudited)
(In thousands)

                            Three Months Ended December 31, 2013
                             Pipelines &       Wholesale
                                             Marketing        Consolidated
                             Transportation
                                               & Terminalling
Net sales                    $  17,229         $  205,868        $   223,097
Operating costs and
expenses:
Cost of goods sold           764               196,552           197,316
Operating expenses           4,710            2,517            7,227
Segment contribution         $  11,755        $  6,799         18,554
margin
General and                                                      1,684
administrative expenses
Depreciation and                                                 3,362
amortization
Loss on disposal of                                              166
assets
Operating income                                                 $   13,342
Total assets                 $  164,608       $  110,196       $   274,804
                                                                 
Capital spending
Maintenance capital          482               841               $   1,323
spending
Expansion capital            183              275              $   458
spending
Total capital spending       $  665           $  1,116         $   1,781



                             Three Months Ended December 31, 2012 ^(1)
                             Predecessors
                             Pipelines &       Wholesale
                                              Marketing         Consolidated
                             Transportation
                                               & Terminalling
Net sales                    $  12,100         237,116           $   249,216
Operating costs and
expenses:
Cost of goods sold           —                 229,684           229,684
Operating expenses           8,006            1,754            9,760
Segment contribution         $  4,094         $  5,678         9,772
margin
General and                                                      2,213
administrative expenses
Depreciation and                                                 2,400
amortization
(Gain) on disposal of                                            4
assets
Operating income                                                 $   5,155
Total assets                 $  183,204       $  100,112       $   283,316
                                                                 
Capital spending
Maintenance capital          2,630             85                $   2,715
spending
Expansion capital            4,116            3,220            $   7,336
spending
Total capital spending       $  6,746         $  3,305         $   10,051
^(2)

^(1) The information presented includes the results of operations of our
Predecessors. Prior to the completion of the Offering and the Tyler
acquisition, our Predecessors did not record revenues for intercompany
gathering, pipeline transportation, terminalling and storage services.
^(2) Capital spending includes expenditures of $3.8 million incurred in
connection with the assets acquired in the Tyler acquisition.







Delek Logistics Partners, LP
Segment Data (unaudited)
(In thousands)

                           Year Ended December 31, 2013
                            Pipelines &        Wholesale
                                              Marketing        Consolidated
                            Transportation
                                               & Terminalling
Net sales                   $    60,237        $  847,191        $  907,428
Operating costs and
expenses:
Cost of goods sold          764                810,600           811,364
Operating expenses          22,903            7,399            30,302
Segment contribution        $    36,570       $  29,192        65,762
margin
General and                                                      6,856
administrative expenses
Depreciation and                                                 12,436
amortization
Loss on disposal of                                              166
assets
Operating income                                                 $  46,304
                                                                 
Capital spending
Maintenance capital         5,018              2,161             $  7,179
spending
Expansion capital           1,887             332              $  2,219
spending
Total capital spending      $    6,905        $  2,493         $  9,398
^(1)
                                                                    
^(1) Capital spending includes expenditures of $4.3 million incurred in
connection with the Tyler acquisition prior to July 26, 2013, the date we
acquired the Tyler Terminal and Tank Assets.



                            Year Ended December 31, 2012 ^(1)
                            Predecessors
                            Pipelines &        Wholesale
                                               Marketing         Consolidated
                            Transportation
                                               & Terminalling
Net sales                   $    33,539        $  989,047        $  1,022,586
Operating costs and
expenses:
Cost of goods sold          —                  959,434           959,434
Operating expenses          24,155            6,242            30,397
Segment contribution        $    9,384        $  23,371        32,755
margin
General and                                                      9,150
administrative expenses
Depreciation and                                                 10,120
amortization
(Gain) on disposal of                                            9
assets
Operating income                                                 $  13,476
                                                                 
Capital spending
Maintenance capital         7,791              263               $  8,054
spending
Expansion capital           14,355            4,350            $  18,705
spending
Total capital spending      $    22,146       $  4,613         $  26,759
^(1)

^(1) The information presented includes the results of operations of our
Predecessors. Prior to the completion of the Offering and the Tyler
acquisition, our Predecessors did not record revenues for intercompany
gathering, pipeline transportation, terminalling and storage services.
^(2) Capital spending includes expenditures of $15.7 million incurred in
connection with the assets acquired in the Tyler acquisition.







Delek Logistics Partners, LP
Segment Data (Unaudited)

                                                    Year Ended
                   Three Months Ended
                                                  December 31,
                   December 31,
                                                    
Throughputs        2013             2012 ^(1)      2013         2012 ^(1)
(average bpd)
                                     Predecessors                 Predecessors
Pipelines and
Transportation
Segment:
Lion Pipeline
System:
Crude pipelines    44,096            43,164         46,515        46,027
(non-gathered)
Refined
products
pipelines to       55,637            47,382         49,694        45,220
Enterprise
Systems
SALA Gathering     21,904            21,679         22,152        20,747
System
East Texas
Crude Logistics    7,410             57,761         19,896        55,068
System
Wholesale
Marketing and
Terminalling
Segment:
East Texas -
Tyler Refinery     55,279            61,317         58,773        57,574
sales volumes
(average bpd)
West Texas
marketing          18,009            17,316         18,156        16,523
throughputs
(average bpd)
West Texas
marketing          $      1.24     $    2.67      $   2.12    $    2.56
margin per
barrel
Bulk Biofuels      —                 7,517          —             5,577
Terminalling
throughputs        69,994            12,637         77,760        15,420
(average
bpd)^(2)

^(1) The information presented includes the results of operations of our
Predecessors. Volumes for all periods presented include both affiliate and
third-party throughput.
^(2) Consists of terminalling throughputs at our Memphis and Nashville,
Tennessee terminals, our North Little Rock Terminal and our Tyler Terminal.
Barrels per day information for the three and twelve months ended December 31,
2013 consist of throughputs for the North Little Rock Terminal for the 69 days
Delek operated the terminal following its acquisition in October 2013.
Throughputs for the Tyler terminal are excluded for the three and twelve
months ended December 31, 2012, as the Tyler Predecessor did not record
revenues for intercompany terminalling services. Total throughput barrels for
the three and twelve months ended December 31, 2013 were 6.3 million and 14.9
million, respectively, which averaged 69,994 bpd for the 92 day period and
40,842 bpd for the 365 day period, respectively.







Delek Logistics Partners, LP
Segment Data (Unaudited)

                        Delek Logistics        Tyler Terminal
                                             and                 Year Ended
                        Partners, LP
                                               Tank Assets ^(1)
Throughputs             1/1/2013 -             1/1/13 -             2013
(average bpd)           12/31/2013             7/26/2013
                                               Tyler Predecessor
Pipelines and
Transportation
Segment:
Lion Pipeline
System:
Crude pipelines         46,515                 —                    46,515
(non-gathered)
Refined products
pipelines to            49,694                 —                    49,694
Enterprise Systems
SALA Gathering          22,152                 —                    22,152
System
East Texas Crude        19,896                 —                    19,896
Logistics System
                                                                    
Wholesale Marketing
and Terminalling
Segment:
East Texas - Tyler
Refinery sales          58,773                 —                    58,773
volumes (average
bpd)
West Texas
marketing               18,156                 —                    18,156
throughputs
(average bpd)
West Texas
marketing margin        $     2.12             $       —            $   2.12
per barrel
Bulk Biofuels           —                      —                    —
Terminalling
throughputs             75,438                 59,800               77,760
(average bpd)^(2)

^(1) The information presented includes the results of operations for the year
ended December 31, 2013, disaggregated to present the results of the
Partnership for the year and the Tyler Terminal and tank Assets through July
26, 2013.
^(2) Consists of terminalling throughputs at our Memphis and Nashville,
Tennessee terminals, our North Little Rock Terminal and our Tyler Terminal.
Throughputs for the North Little Rock Terminal are for the 69 days Delek
operated the terminal following its acquisition in October 2013. Throughputs
for the Tyler Terminal are for the 159 days following the Tyler Acquisition.
Throughputs for the Tyler Predecessor are for the 206 days prior to our
acquisition of the terminal. Barrels per day are calculated for only the days
we operated each terminal. Total throughput barrels for the year ended
December 31, 2013 were 14.9 million, which averaged 40,842 bpd for the 365 day
period.




Contact:

U.S. Investor / Media Relations Contact
Delek Logistics Partners, LP
Keith Johnson, 615-435-1366
Vice President of Investor Relations
or
Alpha IR Group
Chris Hodges, 312-445-2870
Founder & CEO
 
Press spacebar to pause and continue. Press esc to stop.