Delek Logistics Partners LP

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Dell at Logistics Partners first quarter 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star and the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. I would now like to turn the conference over to Rosie Zuclick, Vice President, Investor Relations. Please go ahead.

Good morning and welcome to the Dellick Logistics Partners First Quarter Earnings Conference Call. Participants on today's call will include Abigail Sorek, President, Joseph Israel, EVP Operations, Reuven Spiegel, EVP and Chief Financial Officer, and Odeli Sakazi, SVP, Dellick Logistics. 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 partnership'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 partnership assumes no obligation to update any forward-looking statements or information which speak as of their respective dates. I'll now turn the call over to Abigail for opening remarks. Abigail?

Thank you, Rosie. Derek Logistics Partners reported a strong first quarter. We once again exceeded $100 million of the quarterly EBITDA. I'm pleased with our consistent performance. We saw continued strong performance from our Midland Gathering operations, and our operations in the Delaware Basins have started to exceed our expectations on a consistent basis. This validates our strong position in the Perlin Basin. We have come a long way with DKL. That logistics started back in 2012. It's a classic drop-down story. It has evolved into something bigger. We started to develop third-party business back in 2016, focusing in the Midland and the Delaware Basins. Today, approximately 50% of our EBITDA is from third-party business. Our growth efforts have been focused on the gathering and processing segment. Our Midland Gathering System is a premier asset in the heart of the Midland Basin. We built this system organically. It's now gathered up to 230,000 bears per day and has around 350,000 of dedicated acreage contracted until 2030. It's an attractive asset that provides the growth engine of our midland midstream operation. Moving to the Delaware gathering business. We build this business inorganically and organically. The system provides complete, crude, guests, and water gathering to our customers. We have significant growth opportunities in our system. On a capital structure, we improve DELEC logistics, financial strength, and flexibility. Reuven will speak to this. The debt and equity offering improves our liquidity to approximately $800 million. I'm proud of the team for their successfully executing these transactions. In May, the board approved the 45th consecutive increase in the quarterly distribution to $1.07 per unit. ELEC Logistics has shown strong track records of delivering value to our unit holders. We feel confident in our ability to maintain strong distribution to our investors. I will now hand it over to Ruben.