Delek Logistics Partners, LP (NYSE:DKL) Q4 2022 Earnings Call Transcript

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Delek Logistics Partners, LP (NYSE:DKL) Q4 2022 Earnings Call Transcript February 28, 2023

Operator: Good day, and welcome to the Delek Logistics Partners Fourth Quarter 2022 Earnings Call. Please note, this event is being recorded. I would now like to turn the conference over to Rosy Zuklic, Vice President of Investor Relations. Please go ahead.

Rosy Zuklic: Good afternoon, and welcome to the Delek Logistics Partners Fourth Quarter Earnings Conference Call. Participants on today's call will include Avigal Soreq, President; Todd O'Malley, EVP and Chief Operating Officer; Reuven Spiegel, EVP and Chief Financial Officer; as well as other management team members. As a reminder, this conference call will contain forward-looking statements as defined under the federal securities laws, including without limitation, statements regarding guidance and future business outlook. These statements involve risks and uncertainties that may cause actual results to differ from our forecast. For more information, please refer to the risk factors discussed in the company's most recently filed annual report on Form 10-K and quarterly report on Form 10-Q filed with the SEC, along with the press release associated with this call.

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

Truck, Transport, Cargo
Truck, Transport, Cargo

Photo by Gabriel Santos on Unsplash

Avigal Soreq: Thanks, Rosy. Delek Logistics Partners ended the year with a record growth. Our logistics system end extremely well this quarter, contributing to a record EBITDA of $92.5 million, 33% higher than a record. A big driver for the increase was the successful integration of the 3 Bear asset. We are very pleased with the integration of 3 Bear and consider the integration phase complete. Their logistics had a safe and reliable operation all year long. This was a direct result of dedicated employees and contractors. We achieved 3 million man hours worked without a lost time injury, a great milestone we aim to continue. Our Board approved an increase in the quarterly distribution to $1.02 per unit for the fourth quarter.

This marks 40 consecutive quarterly distribution increases. We successfully achieved our goal to deliver a 5% distribution increase in 2022 and expect to continue this trend into 2023. From a macro perspective, we are optimistic on the outlook for the midstream business. Delek Logistics is well positioned to continue its strong track record to grow and to be long-term significant midstream player. I will now hand it over to Todd.