Delek Logistics Partners LP

Ladies and gentlemen, thank you for standing by and welcome to the DELIC Logistics first quarter earnings call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone keypad. As a reminder, this conference is being recorded today, May 6, 2020. I would now like to hand the conference over to your speaker today, Blake Hernandez. Blake, you may begin.

Thank you, and good morning. I would like to thank everyone for joining us on this webcast to discuss Delic Logistics Partners' first quarter 2020 financial results. Joining me on the call today will be Uzi Amin, our General Partners Chairman and CEO, and Otzi Ginsberg, CFO, Ruben Spiegel, incoming CFO, as well as other members of our management team. As a reminder, this call is being recorded and will make forward-looking statements as the term is defined under federal securities laws. In addition to reporting financial results in accordance with generally accepted accounting principles or GAAP, we report certain non-GAAP financial results. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results, which can be found in the press release, which is posted on the investor relations section of our website. Our prepared remarks are being made assuming that the earnings press release has been reviewed and we are covering less segment and market information than is incorporated in the first quarter press release. On today's call, Ossie will begin with financial overview, I will review results, and Uzi will offer a few closing strategic remarks. With that, I'll turn the call over to Ossie.

Thanks, Blake. Our first quarter performance on a year-over-year basis benefited from improved results from the Payline pipeline, East Texas marketing, Eldorado assets, and our gathering assets. Our DCF was approximately $35.5 million in the first quarter of 2020, compared to $29.8 million in the first quarter of 2019. The limited partners' interest in net income increased approximately 51% over the prior year period. Our DCF coverage, which was approximately 1.15 for the first quarter of 2020, compared to approximately 1.1 in the prior year period. EBITDA was $49 million, which represents a 23.5% increase over the prior year period. Based on our performance and outlook, we increased our quarterly distribution to $0.89 per Limited Partner Unit for the quarter ended March 31, 2020. This distribution will be paid on May 12 and represent a 0.6% increase from the fourth quarter of 2019. This is our 29th consecutive quarterly increase and is 8.5% higher than our first quarter 2019 distribution. At March 31, 2020, and after completion of the DPG drop-down, DKL had approximately $155 million of available capacity on our $850 million credit facility. Our total debt was approximately $940 million, and total leverage ratio of 4.1 times is within the 5.5 times currently allowable under our credit facility, and a decrease from the 4.5 times leverage in a prior quarter. Now, I will turn over the call to Blake to discuss the results.