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