Delek Logistics Partners, LP reports news on a midstream energy master limited partnership that owns assets and participates in joint ventures in the Permian Basin, Delaware Basin and Gulf Coast region. Its updates center on gathering, pipeline and transportation services for crude oil and natural gas customers; storage, wholesale marketing and terminalling for intermediate and refined products; and water disposal and recycling services.
Recurring developments include quarterly operating results, cash distributions on common limited partner units, senior note and credit-facility activity, and project updates tied to sour gas processing, treating and handling at the Libby Gas Complex. Company news also reflects its relationship with Delek US Holdings, which owns the general partner interest and a majority limited partner interest and is a significant customer.
Delek Logistics Partners reported a net income of $27.8 million for Q1 2020, marking a 41% increase year-over-year. EBITDA surged by 23.5% to $48.7 million, driven by contributions from various assets despite lower gross margins in West Texas. The company declared a distribution of $0.890 per unit, an 8.5% increase from Q1 2019, reiterating a 5% distribution growth target for the year. Capital spending has been reduced from $22.7 million to $17.6 million, enhancing financial flexibility.