Delek Logistics Partners LP

Thank you for standing by. My name is JL and I will be a conference operator today. At this time, I would like to welcome everyone to the DKL fourth quarter 2024 earnings 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 would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star one again. I would now like to turn the conference over to Robert Wright, Deputy CFO. You may begin.

Good morning, and welcome to the Dellick Logistics Partners Fourth Quarter Earnings Conference Call. Participants joining me on today's call will include Abigail Sorek, President, Reuben Spiegel, EVP, Mark Hobbs, EVP. As a reminder, this conference call will contain forward-looking statements as defined under the federal securities laws, including statements regarding guidance and future business outlook. Any forward-looking statements made during today's call involve risks and uncertainties that may cause actual results to differ materially from today's comments. Factors that could cause actual results to differ are included in our SEC filings. The company assumes no obligation to update any forward-looking statements. I will now turn the call over to Abigail for opening remarks. Abigail? Thank you, Robert.

Delec Logistics' partner had another record quarter. We reported approximately $107 million in quarterly adjusted EBITDA. 2024 has been a transformational year for Delec Logistics. and we are pleased with its continued strong performance. In 2024, DKL is taking key steps to becoming a premier full-service crude, natural gas, and water provider in the prolific Permian Basin, and we expect to make further progress in 2025. I would like to take a moment to reflect on the things we were able to accomplish in 2024. We increased the financial and trading liquidity of DKL. We were also the first MLP to do two primary offerings in a year since 2017. We amend and extend contact between DKL and DK for a period of up to seven years, providing certainty around cash flows. We completed the acquisition of DELEC portion in Wink to Webster pipeline, which increased the overall asset quality at DKL and enhanced DKL permanent position. We announced two acquisitions in the Midland Basin. H2O Midstream and Gravity Water Midstream enhanced our competitive position in the Midland Basin significantly. We are excited about our combined offering and we are extremely pleased with the initial success we have seen so far. In the Delaware Basin, we are also making good progress in our processing plant expansion. The expansion is set to complete on time and on budget in the first half of 2025. As we complete the plant expansion, we also announced an FID on acid gas injection at the Libby complex. AGI wells and sour gas treating capabilities enhance our competitive position in the Delaware and provide a good runway of growth for DELEC logistics in the future. Looking forward, in 2025 we will continue to grow the partnership through prudent management of leverage and coverage. also initiate a strong 2025 EBITDA guidance of $480 to $520 million. This represents around 20% growth over 2024 adjusted EBITDA. DKL continues to provide one of the best combinations of yield and growth in the entire ANZI index. We will continue to increase our economic separation with our sponsor, DK. We are progressing the economic separation in few different ways, and today we have announced an additional tool to enable the deconsolidation. Our board of directors have authorized up to $150 million buyback from our sponsor, DK, to enhance value for the DKL unit holders. I'm also pleased to announce that the Board of Directors has approved the 48th consecutive increase in the quarterly distribution to $1.10.5 per unit. To conclude, we are very excited about the prospect of telelogistics. We expect to continue on our value creation path moving forward, and we will continue to grow our distribution in the future. I'll hand it over to Mark.