Delek Logistics Partners, LP reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting a decrease in net revenues and operating income compared to the same periods in 2023. For Q3 2024, net revenues were $214.1 million, down from $275.8 million in Q3 2023, reflecting a 22.4% decline. The nine-month figures also showed a decrease, with revenues of $730.8 million compared to $766.3 million in the prior year, a 4.6% drop. The decline in revenue was primarily attributed to decreased sales volumes and prices in West Texas marketing operations, alongside lower revenues in the gathering and processing and storage and transportation segments.
Operating income for Q3 2024 was $31.8 million, significantly lower than $62.6 million in Q3 2023. For the nine months, operating income decreased to $164.8 million from $186.4 million. Despite the revenue decline, net income attributable to partners for Q3 2024 was $33.7 million, slightly down from $34.8 million in Q3 2023. Year-to-date net income increased to $107.4 million from $104.1 million in the previous year.
The company’s cash and cash equivalents rose to $7.3 million as of September 30, 2024, up from $3.8 million at the end of 2023. Total assets increased to $1.96 billion, compared to $1.64 billion at the end of 2023. The partnership's equity method investments also saw a significant rise, reaching $322.7 million from $241.3 million.
Strategically, Delek Logistics completed two significant acquisitions in 2024: H2O Midstream for $229.5 million and Permian Pipeline Holdings for $83.9 million. The H2O Midstream acquisition, finalized on September 11, 2024, is expected to enhance the company’s water disposal and recycling operations in the Midland Basin, Texas. The partnership incurred $6.1 million in acquisition-related costs during the third quarter.
The company declared a quarterly cash distribution of $1.100 per common unit for Q3 2024, totaling approximately $51.5 million, reflecting a 5.3% increase from the previous year. This distribution will be paid on November 14, 2024.
Overall, while Delek Logistics faced challenges in revenue generation and operating income, strategic acquisitions and a solid cash distribution policy indicate a focus on long-term growth and stability.
About Delek Logistics Partners, LP
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