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Delek Logistics Partners LP$31.51($.59)(1.84%)

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 Delek Logistics Partners, LP Reports Fourth Quarter and Full Year 2015 Results
   Thursday, February 25, 2016 5:15:01 PM ET

--Management targeting 15 percent growth in distribution per limited partner unit for 2016

--Partnership maintains flexible financial position with borrowing capacity of $347 million at year end

--2015 Distributable coverage ratio of 1.37x

Delek Logistics Partners, LP (DKL ) ("Delek Logistics") today announced its financial results for the fourth quarter 2015. For the three months ended December 31, 2015, Delek Logistics reported net income attributable to all partners of $15.3 million, or $0.55 per diluted common limited partner unit. This compares to net income attributable to all partners of $20.5 million, or $0.80 per diluted common limited partner unit, in the fourth quarter 2014. Distributable cash flow was $18.9 million in the fourth quarter 2015, compared to $21.8 million in the prior-year period.



Results in the fourth quarter 2015 declined on a year-over-year basis primarily due to lower performance in the west Texas wholesale business, which was partially offset by better performance in the Pipelines and Transportation segment. The gross margin per barrel in west Texas was $1.05 in the fourth quarter 2015 compared to $6.36 per barrel in the fourth quarter 2014. This decline was due to more challenging market conditions and a reduction of approximately $1.0 million, or $0.90 per barrel, due to a change in inventory values, including lower of cost or market, as a result of a decline in prices during the quarter. Excluding this effect, the gross margin per barrel would have been approximately $1.95 per barrel, compared to the reported $1.05 per barrel. This inventory effect lowered distributable cash flow for the period.

For 2015, net income attributable to all partners was $66.8 million, or $2.52 per diluted common limited partner unit. This compares to net income attributable to all partners of $72.0 million, or $2.85 per diluted common limited partner unit for 2014. Distributable cash flow was $81.3 million in 2015 compared to $80.3 million in 2014, while earnings before interest, taxes, depreciation and amortization ("EBITDA") was $96.5 million in 2015, compared to $95.4 million in 2014.

Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics’ general partner, remarked: "Our business model is anchored by stable fee based contracts, which served us well during a year in which uncertainty and volatility in energy markets created a challenging environment for our industry. For 2015, our EBITDA and distributable cash flow improved compared to 2014, which supported an increase in our declared distributions per limited partner unit for 2015 to $2.24 from $1.90 for 2014. We ended the year with a 3.5 times leverage ratio and $347 million of capacity on our credit facility."

Yemin concluded, "Our pipeline development projects through two joint ventures with unaffiliated third parties are moving toward completion in the second half of 2016. In addition, we continue to evaluate potential third party acquisition opportunities and options to partner with Delek US to provide future growth. With a focus on creating long term value for our unit holders, we believe that our balance sheet should allow the flexibility to take advantage of opportunities, while targeting growth in our distribution per limited partner unit by 15 percent for 2016."

Distribution and Liquidity

On January 25, 2016, Delek Logistics declared a quarterly cash distribution for the fourth quarter of $0.59 per limited partner unit, which equates to $2.36 per limited partner unit on an annualized basis. This distribution was paid on February 12, 2016 to unitholders of record on February 5, 2016. This represents a 3.5 percent increase from the third quarter 2015 distribution of $0.57 per limited partner unit, or $2.28 per limited partner unit on an annualized basis, and a 15.7 percent increase over Delek Logistics’ fourth quarter 2014 distribution of $0.51 per limited partner unit, or $2.04 per limited partner unit annualized. For the fourth quarter 2015, the total cash distribution declared to all partners, including IDRs, was $16.1 million. For 2015 the total cash distribution declared to all partners, including IDRs, was $59.3 million.

As of December 31, 2015, Delek Logistics had total debt of $351.6 million. Additional borrowing capacity, subject to certain covenants, under the $700.0 million credit facility was approximately $346.9 million.

Financial Results

Results in the fourth quarter 2015, compared to the prior-year period, benefited from the acquisition of the Tyler crude oil storage tank and El Dorado rail offloading facility, which were acquired on March 31, 2015, from subsidiaries of Delek US Holdings, Inc. ("Delek US"). For accounting purposes, the expenses from operations prior to the acquisition of the Tyler crude oil storage tank and El Dorado rail offloading facility are attributed to their respective predecessor periods. For purposes of comparison, results discussed in the text of this press release exclude predecessor costs during the respective periods. However, these costs are shown in the financial statements with a reconciliation provided in the tables attached to this release.

Revenue for the fourth quarter 2015 was $108.9 million and contribution margin was $26.2 million, which compares to revenue of $173.3 million and a contribution margin of $29.3 million in the fourth quarter 2014. The decrease in contribution margin is primarily due to lower performance in the west Texas wholesale business, which was partially offset by improved performance in the Pipelines and Transportation segment. Total operating expenses were $11.7 million compared to $9.7 million in the fourth quarter 2014, with the increase primarily due to maintenance related expenses. General and administrative expenses decreased to $2.3 million for the fourth quarter 2015 compared to $3.3 million in the prior-year period, which was primarily due to lower professional services expenses on a year-over-year basis. For the fourth quarter 2015, EBITDA was $23.6 million compared to $26.1 million in the prior-year period.

Pipelines and Transportation Segment

The Pipelines and Transportation segment’s fourth quarter 2015 contribution margin of $17.5 million improved from $14.1 million in the fourth quarter 2014. This increase is primarily attributed to a higher contribution from the Paline Pipeline and fees associated with the El Dorado rail offloading racks and Tyler crude oil storage tank purchased on March 31, 2015.

Wholesale Marketing and Terminalling Segment

Contribution margin for the Wholesale Marketing and Terminalling segment was $8.7 million in the fourth quarter 2015, compared to $15.2 million in the fourth quarter 2014. This change on a year-over-year basis was primarily due to a lower gross margin per barrel and lower volume sold in the west Texas wholesale business, which was partially offset by improved performance in the east Texas assets.

In the west Texas wholesale business, throughput was 12,488 barrels per day compared to 15,441 barrels per day in the fourth quarter 2014. The wholesale gross margin per barrel in west Texas decreased year-over-year to $1.05 and included approximately $0.9 million, or $0.79 per barrel from renewable identification numbers (RINs) generated in the quarter. Also, the fourth quarter 2015 gross margin was reduced by approximately $1.0 million, or $0.90 per barrel, due to a reduction in inventory values, including lower of cost or market, as a result of a decline in prices during the fourth quarter 2015. During the fourth quarter 2014, the wholesale gross margin per barrel was $6.36 and included $1.2 million from RINs, or $0.82 per barrel. The fourth quarter 2014 gross margin per barrel benefited as the local market sales price in west Texas did not decline as quickly as the Gulf Coast light product prices, thereby expanding the margin per barrel. On a year-over-year basis, reduced drilling activity in west Texas as a result of lower crude oil prices lowered demand in the area, creating a more challenging market environment and playing a role in the change in gross margin per barrel and volume sold.

Both terminalling and the east Texas marketing throughputs benefited from higher volume at Delek US’ Tyler, Texas refinery. Terminalling throughput volume of 114,136 barrels per day during the quarter increased on a year-over-year basis from 100,396 barrels per day in the fourth quarter 2014 primarily due to higher throughput at the Tyler and Big Sandy, Texas terminals. During the fourth quarter 2015, volume under the east Texas marketing agreement with Delek US was 66,950 barrels per day compared to 62,172 barrels per day during the fourth quarter 2014.

Project Development Update

In March 2015, Delek Logistics, through wholly owned subsidiaries, entered into two joint ventures (Caddo Pipeline and RIO Pipeline) that will construct logistics assets. Delek Logistics’ total projected investment for the two joint ventures is approximately $96.0 million and will be financed through a combination of cash from operations and borrowings under its revolving credit facility. Through December 31, 2015, approximately $41.3 million has been invested in these projects. Both of these projects are expected to be constructed by the second half of 2016.

Fourth Quarter 2015 Results | Conference Call Information

Delek Logistics will hold a conference call to discuss its fourth quarter 2015 results on Friday, February 26, 2016 at 7:00 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekLogistics.com. Participants are encouraged to register at least 15 minutes early to download and install any necessary software. For those who cannot listen to the live broadcast, a telephonic replay will be available through May 26, 2016 by dialing (855) 859-2056, passcode 28236906. An archived version of the replay will also be available at www.DelekLogistics.com for 90 days.

Investors may also wish to listen to Delek US’ (DK ) fourth quarter 2015 earnings conference call on Friday, February 26, 2016 at 8:00 a.m. Central Time and review Delek US’ earnings press release. Market trends and information disclosed by Delek US may be relevant to Delek Logistics, as it is a consolidated subsidiary of Delek US. Investors can find information related to Delek US and the timing of its earnings release online by going to www.DelekUS.com.

About Delek Logistics Partners, LP

Delek Logistics Partners, LP, headquartered in Brentwood, Tennessee, was formed by Delek US Holdings, Inc. (DK ) to own, operate, acquire and construct crude oil and refined products logistics and marketing assets.

Safe Harbor Provisions Regarding Forward-Looking Statements

This press release contains "forward-looking" statements within the meaning of the federal securities laws. These statements contain words such as "possible," "believe," "should," "could," "would," "predict," "plan," "estimate," "intend," "may," "anticipate," "will," "if," "expect" or similar expressions, as well as statements in the future tense, and can be impacted by numerous factors, including the fact that a substantial majority of Delek Logistics’ contribution margin is derived from Delek US Holdings, thereby subjecting us to Delek US Holdings’ business risks; risks relating to the securities markets generally; risks and costs relating to the age and operational hazards of our assets including, without limitation, costs, penalties, regulatory or legal actions and other affects related to releases, spills and other hazards inherent in transporting and storing crude oil and intermediate and finished petroleum products; the impact of adverse market conditions affecting the business of Delek Logistics; adverse changes in laws including with respect to tax and regulatory matters and other risks as disclosed in our annual report on Form 10-K, quarterly reports on Form 10-Q and other reports and filings with the United States Securities and Exchange Commission. There can be no assurance that actual results will not differ from those expected by management or described in forward-looking statements of Delek Logistics. Delek Logistics undertakes no obligation to update or revise such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof.

Factors Affecting Comparability:

The following tables present financial and operational information for the three months and year ended December 31, 2015 and 2014. On February 10, 2014, Delek Logistics acquired substantially all of the active storage tanks and product terminal located adjacent to Delek US’ El Dorado refinery (the "El Dorado Assets"). On March 31, 2015, Delek Logistics acquired the Tyler crude oil storage tank and the El Dorado rail offloading facility (the "Logistics Assets") from Delek US. These assets were accounted for as transfers between entities under common control. Accordingly, the accompanying financial statements of the Partnership have been retrospectively adjusted to include the historical results of these assets. For all periods presented through February 10, 2014, the acquisition date of the El Dorado Assets, and March 31, 2015, the acquisition date of the Logistics Assets, the retrospective adjustments were made to the financial statements. The historical results of the El Dorado Assets and Logistics Assets, prior to the acquisition dates, are referred to as the "El Dorado Assets Predecessor" and "Logistics Assets Predecessor" in the respective periods.

Non-GAAP Disclosures:

EBITDA and distributable cash flow are non-U.S. GAAP supplemental financial measures that management and external users of our combined financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

-- Delek Logistics’ operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;

-- the ability of our assets to generate sufficient cash flow to make distributions to Delek Logistics’ unitholders;

-- Delek Logistics’ ability to incur and service debt and fund capital expenditures; and

-- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

Delek Logistics believes that the presentation of EBITDA and distributable cash flow provide useful information to investors in assessing its financial condition, its results of operations and cash flow its business is generating. EBITDA and distributable cash flow should not be considered in isolation or as alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all items that affect net income and net cash provided by operating activities. Additionally, because EBITDA and distributable cash flow may be defined differently by other partnerships in its industry, Delek Logistics’ definitions of EBITDA and distributable cash flow may not be comparable to similarly titled measures of other partnerships. Please see the tables below for a reconciliation of EBITDA and distributable cash flow to their most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.

We also include the results of our operations excluding the results of our Predecessors. We believe that the presentation of our results of operations excluding results of our Predecessors will provide useful information to investors in assessing our results of operations by allowing them to analyze operations of our business under our current commercial agreements with Delek US.

 
                                                                                                                                      Delek Logistics Partners, LP
                                                                                                                           Reconciliation of Amounts Reported Under U.S. GAAP
 
                                                                                                        Three Months Ended                                                                                   Year Ended
                                                                                                                              December 31,                                                                                                        December 31,
                                                                                     ----------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------------
($ in thousands)                                                                                     2015                                  2014(1)                                                  2015 (1)                               2014 (1)
                                                                                     ----------------------------------                        ----------------------------------                        ----------------------------------                        ----------------------------------
Reconciliation of EBITDA to net income:
Net income                                                                                 $  15,295                                                 $  20,179                                                 $  66,211                                                 $  70,058
   Add:
   Income tax (benefit) expense                                                                 (621 )                                                    (473 )                                                    (195 )                                                     132
   Depreciation and amortization                                                               5,907                                                     4,075                                                    19,692                                                    15,022
   Interest expense, net                                                                       3,042                                  2,105                                 10,658                                  8,656  
                                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
EBITDA                                                                                     $  23,623                              $  25,886                              $  96,366                              $  93,868  
                                                                                     ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                    
Reconciliation of EBITDA to net cash from operating activities:
   Net cash provided by operating activities                                               $   1,262                                                 $  20,655                                                 $  68,024                                                 $  85,084
   Amortization of unfavorable contract liability to revenue                          --                                                       668                                            --                                                     2,670
   Amortization of deferred revenue                                                              260                                                        77                                                       596                                                       307
   Amortization of deferred financing costs                                                     (365 )                                                    (316 )                                                  (1,460 )                                                  (1,267 )
   Accretion of asset retirement obligations                                                     (64 )                                                      35                                                      (251 )                                                    (232 )
   Deferred income taxes                                                                           9                                                       190                                                       (14 )                                                     109
   Loss on equity method investments                                                            (146 )                                          --                                                      (588 )                                          --
   Loss on asset disposals                                                                      (122 )                                                      (9 )                                                    (104 )                                                     (83 )
   Unit-based compensation expense                                                              (108 )                                                     (78 )                                                    (406 )                                                    (274 )
   Changes in assets and liabilities                                                          20,476                                                     3,032                                                    20,106                                                    (1,234 )
   Income tax (benefit) expense                                                                 (621 )                                                    (473 )                                                    (195 )                                                     132
   Interest expense, net                                                                       3,042                                  2,105                                 10,658                                  8,656  
                                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
EBITDA                                                                                     $  23,623                              $  25,886                              $  96,366                              $  93,868  
                                                                                     ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                    
Reconciliation of distributable cash flow to EBITDA:
EBITDA                                                                                     $  23,623                                                 $  25,886                                                 $  96,366                                                 $  93,868
Less: Cash interest, net                                                                       2,677                                                     1,789                                                     9,198                                                     7,389
Less: Maintenance capital expenditures                                                         2,674                                                     3,882                                                    11,841                                                     6,642
Add: Reimbursement from Delek for capital expenditures                                            14                                                     1,578                                                     5,220                                                     1,578
Less: Loss on equity method investments                                                         (146 )                                          --                                                      (588 )                                          --
Less: Income tax (benefit) expense                                                              (621 )                                                    (473 )                                                    (195 )                                                     132
Add: Non-cash unit-based compensation expense                                                    108                                                        78                                                       406                                                       274
Less: Amortization of deferred revenue                                                           260                                                        77                                                       596                                                       307
Less: Amortization of unfavorable contract liability                                  --                                    668                         --                                  2,670  
                                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Distributable cash flow                                                                    $  18,901                              $  21,599                              $  81,140                              $  78,580  
                                                                                     ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                                    
(1) The information presented includes the results of
operations of the Logistics Assets Predecessor. Prior to the El
Dorado offloading racks acquisition and Tyler crude oil storage
tank acquisition on March 31, 2015, the Logistics Assets
Predecessor did not record revenues for intercompany throughput
and storage services.
 
 
                                                                                                      Delek Logistics Partners, LP
                                                                                           Reconciliation of Amounts Reported Under U.S. GAAP
 
($ in thousands)                                                            Delek Logistics                   Logistics Assets (1)                       Year Ended
                                                                                                Partners, LP                                                                                                   December 31, 2015
                                                                                     -------------------------------                        ----------------------------------                        --------------------------------
                                                                                                                                                      Logistics Assets
                                                                                                                                                         Predecessor
Reconciliation of EBITDA to net income:
Net income (loss)                                                                        $ 66,848                                                 $    (637 )                                              $ 66,211
Add:
Income tax benefit                                                                           (195 )                                          --                                                    (195 )
Depreciation and amortization                                                              19,222                                                       470                                                  19,692
Interest expense, net                                                                      10,658                         --                               10,658  
                                                                                     ---------------------------------                      ------------------------------------                      ----------------------------------
EBITDA                                                                                   $ 96,533                              $    (167 )                                              $ 96,366  
                                                                                     ===== ====== ====================                      ======= ======= ====================                      ====== ====== ====================
                                                                                                                                                                                                       
Reconciliation of EBITDA to net cash from operating activities:
Net cash provided by (used in) operating activities                                      $ 68,191                                                 $    (167 )                                              $ 68,024
Amortization of deferred revenue                                                              596                                            --                                                     596
Amortization of deferred financing costs                                                   (1,460 )                                          --                                                  (1,460 )
Accretion of asset retirement obligations                                                    (251 )                                          --                                                    (251 )
Deferred income taxes                                                                         (14 )                                          --                                                     (14 )
Loss on equity method investments                                                            (588 )                                          --                                                    (588 )
Loss on asset disposals                                                                      (104 )                                          --                                                    (104 )
Unit-based compensation expense                                                              (406 )                                          --                                                    (406 )
Changes in assets and liabilities                                                          20,106                                            --                                                  20,106
Income tax expense                                                                           (195 )                                          --                                                    (195 )
Interest expense, net                                                                      10,658                         --                               10,658  
                                                                                     ---------------------------------                      ------------------------------------                      ----------------------------------
EBITDA                                                                                   $ 96,533                              $    (167 )                                              $ 96,366  
                                                                                     ===== ====== ====================                      ======= ======= ====================                      ====== ====== ====================
                                                                                                                                                                                                       
Reconciliation of distributable cash flow to EBITDA:
EBITDA                                                                                   $ 96,533                                                 $    (167 )                                              $ 96,366
Less: Cash interest, net                                                                    9,198                                            --                                                   9,198
Less: Maintenance capital expenditures                                                     11,841                                            --                                                  11,841
Add: Reimbursement from Delek for capital expenditures                                      5,220                                            --                                                   5,220
Less: Loss on equity method investments                                                      (588 )                                          --                                                    (588 )
Less: Income tax benefit                                                                     (195 )                                          --                                                    (195 )
Add: Non-cash unit-based compensation expense                                                 406                                            --                                                     406
Less: Amortization of deferred revenue                                                        596                         --                                  596  
                                                                                     ---------------------------------                      ------------------------------------                      ----------------------------------
     Distributable cash flow                                                             $ 81,307                              $    (167 )                                              $ 81,140  
                                                                                     ===== ====== ====================                      ======= ======= ====================                      ====== ====== ====================
                                                                                                                                                                                                                     
(1) The information presented is for the year ended
December 31, 2015, disaggregated to present the results of
operations of the Partnership and the Logistics Assets
Predecessor. Prior to the El Dorado offloading racks acquisition
and Tyler crude oil storage tank acquisition on March 31, 2015,
the Logistics Assets Predecessor did not record revenues for
intercompany throughput and storage services.
 
 
                                                                                                      Delek Logistics Partners, LP
                                                                                           Reconciliation of Amounts Reported Under U.S. GAAP
 
                                                                            Delek Logistics                   Logistics Assets (1)                   Three Months Ended
                                                                                                Partners, LP                                                                                                   December 31, 2014
                                                                                     -------------------------------                        ----------------------------------                        --------------------------------
($ in thousands)                                                                                                                                      Logistics Assets
                                                                                                                                                         Predecessor
Reconciliation of EBITDA to net income:
Net income (loss)                                                                        $ 20,486                                                 $    (307 )                                              $ 20,179
Add:
Income tax benefit                                                                           (473 )                                          --                                                    (473 )
Depreciation and amortization                                                               3,947                                                       128                                                   4,075
Interest expense, net                                                                       2,105                         --                                2,105  
                                                                                     ---------------------------------                      ------------------------------------                      ----------------------------------
EBITDA                                                                                   $ 26,065                              $    (179 )                                              $ 25,886  
                                                                                     ===== ====== ====================                      ======= ======= ====================                      ====== ====== ====================
                                                                                                                                                                                                       
Reconciliation of EBITDA to net cash from operating activities:
Net cash provided by (used in) operating activities                                      $ 20,834                                                 $    (179 )                                              $ 20,655
Amortization of unfavorable contract liability to revenue                                     668                                            --                                                     668
Amortization of deferred financing costs                                                     (316 )                                          --                                                    (316 )
Amortization of deferred revenue                                                               77                                            --                                                      77
Accretion of asset retirement obligations                                                      35                                            --                                                      35
Deferred income taxes                                                                         190                                            --                                                     190
Loss on asset disposals                                                                        (9 )                                          --                                                      (9 )
Unit-based compensation expense                                                               (78 )                                          --                                                     (78 )
Changes in assets and liabilities                                                           3,032                                            --                                                   3,032
Income tax benefit                                                                           (473 )                                          --                                                    (473 )
Interest expense, net                                                                       2,105                         --                                2,105  
                                                                                     ---------------------------------                      ------------------------------------                      ----------------------------------
EBITDA                                                                                   $ 26,065                              $    (179 )                                              $ 25,886  
                                                                                     ===== ====== ====================                      ======= ======= ====================                      ====== ====== ====================
                                                                                                                                                                                                       
Reconciliation of distributable cash flow to EBITDA:
EBITDA                                                                                   $ 26,065                                                 $    (179 )                                              $ 25,886
Less: Cash interest, net                                                                    1,789                                            --                                                   1,789
Less: Maintenance capital expenditures                                                      3,882                                            --                                                   3,882
Add: Reimbursement from Delek for capital expenditures                                      1,578                                            --                                                   1,578
Less: Income tax benefit                                                                     (473 )                                          --                                                    (473 )
Add: Non-cash unit-based compensation expense                                                  78                                            --                                                      78
Less: Amortization of deferred revenue                                                         77                                            --                                                      77
Less: Amortization of unfavorable contract liability                                          668                         --                                  668  
                                                                                     ---------------------------------                      ------------------------------------                      ----------------------------------
   Distributable cash flow                                                               $ 21,778                              $    (179 )                                              $ 21,599  
                                                                                     ===== ====== ====================                      ======= ======= ====================                      ====== ====== ====================
                                                                                                                                                                                                                     
(1) The information presented is for the three months
ended December 31, 2014, disaggregated to present the results of
operations of the Partnership and the Logistics Assets
Predecessor. Prior to the El Dorado offloading racks acquisition
and Tyler crude oil storage tank acquisition on March 31, 2015,
the Logistics Assets Predecessor did not record revenues for
intercompany throughput and storage services.
                                                                                                                                                                                                                     
                                                                                                                                                                                                                       
                                                                                                                                   Delek Logistics Partners, LP
                                                                                                                        Reconciliation of Amounts Reported Under U.S. GAAP
                                                                                                                                                                                                                       
                                                                            Delek Logistics                   Logistics Assets (1)                         El Dorado                            Year Ended
                                                                                                Partners, LP                                                                                                      Terminal and                                           December 31, 2014
                                                                                                                                                                                                                 Tank Assets (2)
                                                                                     -------------------------------                        ----------------------------------                        ----------------------------------                        --------------------------------
($ in thousands)                                                                                                                                      Logistics Assets                                              El Dorado
                                                                                                                                                         Predecessor                                               Predecessor
Reconciliation of EBITDA to net income:
Net income (loss)                                                                        $ 71,997                                                 $    (996 )                                               $    (943 )                                              $ 70,058
Add:
Income tax expense                                                                            132                                            --                                            --                                                     132
Depreciation and amortization                                                              14,591                                                       317                                                       114                                                  15,022
Interest expense, net                                                                       8,656                         --                         --                                8,656  
                                                                                     -----------  --------------------                      --------------  --------------------                      --------------  --------------------                      ------------  --------------------
EBITDA                                                                                   $ 95,376                              $    (679 )                                               $    (829 )                                              $ 93,868  
                                                                                     ===== ====== ====================                      ======= ======= ====================                      ======= ======= ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                                 
Reconciliation of EBITDA to net cash from operating activities:
Net cash provided by (used in) operating activities                                      $ 86,592                                                 $    (679 )                                               $    (829 )                                              $ 85,084
Amortization of unfavorable contract liability to revenue                                   2,670                                            --                                            --                                                   2,670
Amortization of deferred financing costs                                                   (1,267 )                                          --                                            --                                                  (1,267 )
Amortization of deferred revenue                                                              307                                            --                                            --                                                     307
Accretion of asset retirement obligations                                                    (238 )                                          --                                                         6                                                    (232 )
Deferred income taxes                                                                         109                                            --                                            --                                                     109
Loss on asset disposals                                                                       (83 )                                          --                                            --                                                     (83 )
Unit-based compensation expense                                                              (274 )                                          --                                            --                                                    (274 )
Changes in assets and liabilities                                                          (1,228 )                                          --                                                        (6 )                                                (1,234 )
Income tax expense                                                                            132                                            --                                            --                                                     132
Interest expense, net                                                                       8,656                         --                         --                                8,656  
                                                                                     ---------------------------------                      ------------------------------------                      ------------------------------------                      ----------------------------------
EBITDA                                                                                   $ 95,376                              $    (679 )                                               $    (829 )                                              $ 93,868  
                                                                                     ===== ====== ====================                      ======= ======= ====================                      ======= ======= ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                                 
Reconciliation of distributable cash flow to EBITDA:
EBITDA                                                                                   $ 95,376                                                 $    (679 )                                               $    (829 )                                              $ 93,868
Less: Cash interest, net                                                                    7,389                                            --                                            --                                                   7,389
Less: Maintenance capital expenditures                                                      6,465                                            --                                                       177                                                   6,642
Add: Reimbursement from Delek for capital expenditures                                      1,578                                            --                                            --                                                   1,578
Less: Income tax expense                                                                      132                                            --                                            --                                                     132
Add: Non-cash unit-based compensation expense                                                 274                                            --                                            --                                                     274
Less: Amortization of deferred revenue                                                        307                                            --                                            --                                                     307
Less: Amortization of unfavorable contract liability                                        2,670                         --                         --                                2,670  
                                                                                     ---------------------------------                      ------------------------------------                      ------------------------------------                      ----------------------------------
     Distributable cash flow                                                             $ 80,265                              $    (679 )                                               $  (1,006 )                                              $ 78,580  
                                                                                     ===== ====== ====================                      ======= ======= ====================                      ======= ======= ====================                      ====== ====== ====================
                                                                                                                                                                                                                                                                               
(1) The information presented is for the year ended
December 31, 2014, disaggregated to present the results of
operations of the Partnership and the Logistics Assets
Predecessor. Prior to the El Dorado offloading racks acquisition
and Tyler crude oil storage tank acquisition on March 31, 2015,
the Logistics Assets Predecessor did not record revenues for
intercompany throughput and storage services.
(2) The information presented is for the year ended
December 31, 2014, disaggregated to present the results of
operations of the Partnership and the El Dorado Predecessor. Prior
to the completion of the El Dorado acquisition on February 10,
2014, the El Dorado Predecessor did not record revenues for
intercompany terminalling and storage services.
                                                                                                                                                                                                                                                                               
 
                                                                                   Delek Logistics Partners, LP
                                                                         Condensed Consolidated Balance Sheets (Unaudited)
 
                                                                                         December 31,                              December 31,
                                                                                                                2015                                                       2014 (1)
                                                                                            --------------------------------------------                     -------------------------------------
                                                                                                                                                              
                                                                                                                                        (In thousands)
                                ASSETS
Current assets:
   Cash and cash equivalents                                                                      $ --                                                 $   1,861
   Accounts receivable                                                                                      35,049                                                    27,986
   Inventory                                                                                                10,451                                                    10,316
   Deferred tax assets                                                                              --                                                        28
   Other current assets                                                                                      1,540                                    768  
                                                                                            -------------------------------------------                      ------------------------------------
      Total current assets                                                                                  47,040                                 40,959  
                                                                                            -------------------------------------------                      ------------------------------------
Property, plant and equipment:
   Property, plant and equipment                                                                           325,647                                                   308,088
   Less: accumulated depreciation                                                                          (71,799 )                                                 (53,309 )
                                                                                            -------------------------------------------                      ------------------------------------
      Property, plant and equipment, net                                                                   253,848                                254,779  
                                                                                            -------------------------------------------                      ------------------------------------
Equity method investments                                                                                   40,678                                            --
Goodwill                                                                                                    12,203                                                    11,654
Intangible assets, net                                                                                      15,482                                                    16,520
Other non-current assets                                                                                     6,037                                  7,374  
                                                                                            -------------------------------------------                      ------------------------------------
      Total assets                                                                                $        375,288                              $ 331,286  
                                                                                            ======= ============== ====================                      ======= ======= ====================
                   LIABILITIES AND EQUITY (DEFICIT)
Current liabilities:
   Accounts payable                                                                               $          6,850                                                 $  17,929
   Accounts payable to related parties                                                                       3,992                                                       628
   Excise and other taxes payable                                                                            4,871                                                     5,443
   Tank inspection liabilities                                                                               1,890                                                     2,829
   Pipeline release liabilities                                                                              1,393                                                     1,899
   Accrued expenses and other current liabilities                                                            1,694                                  1,588  
                                                                                            -------------------------------------------                      ------------------------------------
      Total current liabilities                                                                             20,690                                 30,316  
                                                                                            -------------------------------------------                      ------------------------------------
Non-current liabilities:
   Revolving credit facility                                                                               351,600                                                   251,750
   Asset retirement obligations                                                                              3,506                                                     3,319
   Deferred tax liabilities                                                                         --                                                       231
   Other non-current liabilities                                                                            10,510                                  5,889  
                                                                                            -------------------------------------------                      ------------------------------------
      Total non-current liabilities                                                                        365,616                                261,189  
                                                                                            -------------------------------------------                      ------------------------------------
Equity (Deficit):
   Predecessor division equity                                                                      --                                                    19,726
   Common unitholders - public; 9,478,273 units issued and outstanding                                     198,401                                                   194,737
   at December 31, 2015 (9,417,189 at December 31, 2014)
   Common unitholders - Delek; 2,799,258 units issued and outstanding                                     (280,828 )                                                (241,112 )
   at December 31, 2015 (2,799,258 at December 31, 2014)
   Subordinated unitholders - Delek; 11,999,258 units issued and                                            78,601                                                    73,515
   outstanding at December 31, 2015 (11,999,258 at December 31, 2014)
   General partner - Delek; 495,445 units issued and outstanding at                                         (7,192 )                                                  (7,085 )
   December 31, 2015 (494,197 at December 31, 2014)
                                                                                            ---------------------  --------------------                      --------------  --------------------
      Total (deficit) equity                                                                               (11,018 )                                                  39,781  
                                                                                            -------------------------------------------                      ------------------------------------
      Total liabilities and (deficit) equity                                                      $        375,288                              $ 331,286  
                                                                                            ======= ============== ====================                      ======= ======= ====================
                                                                                                                                                                              
(1) Adjusted to include the historical balances of the
Logistics Assets Predecessor.
                                                                                                                                                                              
 
                                                                                                                                       Delek Logistics Partners, LP
                                                                                                                          Condensed Consolidated Statements of Income (Unaudited)
 
                                                                                                            Three Months Ended                                                                                  Year Ended
                                                                                                                                  December 31,                                                                                                       December 31,
                                                                                         ----------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------
                                                                                                         2015                                 2014 (1)                                                 2015 (2)                              2014 (1)
                                                                                         -------------------------------------                     -------------------------------------                     -----------------------------------                     -------------------------------------
                                                                                                                                                                                                                                                                      
                                                                                                                                                                           (In thousands, except unit and per unit data)
Net sales:
   Affiliate                                                                                   $  38,589                                                 $  30,728                                               $ 152,564                                                 $ 114,583
   Third-Party                                                                                    70,342                                142,619                              437,105                                726,670  
                                                                                         ------------------------------------                      ------------------------------------                      ----------------------------------                      ------------------------------------
Net sales                                                                                        108,931                                                   173,347                                                 589,669                                                   841,253
Operating costs and expenses:
   Cost of goods sold                                                                             71,018                                                   134,305                                                 436,304                                                   697,221
   Operating expenses                                                                             11,732                                                     9,889                                                  44,923                                                    39,465
   General and administrative expenses                                                             2,290                                                     3,258                                                  11,384                                                    10,616
   Depreciation and amortization                                                                   5,907                                                     4,075                                                  19,692                                                    15,022
   Loss on asset disposals                                                                           122                                      9                                  104                                     83  
                                                                                         ------------------------------------                      ------------------------------------                      ----------------------------------                      ------------------------------------
      Total operating costs and expenses                                                          91,069                                151,536                              512,407                                762,407  
                                                                                         ------------------------------------                      ------------------------------------                      ----------------------------------                      ------------------------------------
   Operating income                                                                               17,862                                                    21,811                                                  77,262                                                    78,846
Interest expense, net                                                                              3,042                                                     2,105                                                  10,658                                                     8,656
Loss on equity method investments                                                                    146                         --                                  588                         --  
                                                                                         ------------------------------------                      ------------------------------------                      ----------------------------------                      ------------------------------------
Net Income before income tax (benefit) expense                                                    14,674                                                    19,706                                                  66,016                                                    70,190
Income tax (benefit) expense                                                                        (621 )                                                    (473 )                                                  (195 )                                                     132  
                                                                                         ------------------------------------                      ------------------------------------                      ----------------------------------                      ------------------------------------
Net income                                                                                     $  15,295                                                 $  20,179                                               $  66,211                                                 $  70,058
Less: loss attributable to Predecessors                                                   --                                   (307 )                                                  (637 )                                                  (1,939 )
                                                                                         ------------------------------------                      ------------------------------------                      ----------------------------------                      ------------------------------------
Net income attributable to partners                                                               15,295                                 20,486                               66,848                                 71,997  
                                                                                         ====================================                      ====================================                      ==================================                      ====================================
Comprehensive income attributable to partners                                                  $  15,295                              $  20,486                            $  66,848                              $  71,997  
                                                                                         ======= ======= ====================                      ======= ======= ====================                      ===== ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                      
Less: General partner’s interest in net income, including incentive                                1,784                                    855                                5,163                                  2,366  
distribution rights
                                                                                         ==============  ====================                      ==============  ====================                      ============  ====================                      ==============  ====================
Limited partners’ interest in net income                                                       $  13,511                              $  19,631                            $  61,685                              $  69,631  
                                                                                         ======= ======= ====================                      ======= ======= ====================                      ===== ======= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                      
Net income per limited partner unit:
Common units - (basic)                                                                         $    0.56                                                 $    0.81                                               $    2.55                                                 $    2.88
Common units - (diluted)                                                                       $    0.55                                                 $    0.80                                               $    2.52                                                 $    2.85
Subordinated units - Delek (basic and diluted)                                                 $    0.56                                                 $    0.81                                               $    2.54                                                 $    2.88
                                                                                                                                                                                                                                                                      
Weighted average limited partner units outstanding:
Common units - basic                                                                          12,256,721                                                12,189,570                                              12,237,154                                                12,171,548
Common units - diluted                                                                        12,360,179                                                12,328,880                                              12,356,914                                                12,302,629
Subordinated units - Delek (basic and diluted)                                                11,999,258                                                11,999,258                                              11,999,258                                                11,999,258
                                                                                                                                                                                                                                                                      
Cash distribution per limited partner unit                                                     $   0.590                                                 $   0.510                                               $   2.240                                                 $   1.900
                                                                                                                                                                                                                                                                                      
(1) Adjusted to include the historical results of the
Logistics Assets Predecessor. Prior to the El Dorado offloading
racks acquisition and Tyler crude oil storage tank acquisition on
March 31, 2015, the Logistics Assets Predecessor did not record
revenues for intercompany throughput and storage services.
(2) The information presented includes the results of
operations of the Logistics Assets Predecessor. Prior to the
Logistics Assets Predecessor on March 31, 2015, revenues for
intercompany throughput and storage services were not recorded.
                                                                                                                                                                                                                                                                                      
 
                                                                                                                                  Delek Logistics Partners, LP
                                                                                                                          Consolidated Statements of Income (Unaudited)
                                                                                                                          Reconciliation of Partnership to Predecessor
                                                                                                                                                                                
                                                                            Delek Logistics                                               El Dorado Rail                                                   Tyler Crude Oil                                               Year Ended
                                                                             Partners, LP                                              Offloading Racks (1)                                               Storage Tank (1)                                            December 31, 2015
                                                                 ----------------------------------                        -----------------------------------------                        -----------------------------------------                        --------------------------------
                                                                                                                                         El Dorado Assets                                                   Tyler Assets
                                                                                                                                            Predecessor                                                      Predecessor
                                                                                                                                                                         (In thousands)
Net Sales                                                              $ 589,669                                                 $ --                                                 $ --                                               $ 589,669
Operating costs and expenses:
   Cost of goods sold                                                    436,304                                                   --                                                   --                                                 436,304
   Operating expenses                                                     44,756                                                              167                                                   --                                                  44,923
   General and administrative expenses                                    11,384                                                   --                                                   --                                                  11,384
   Depreciation and amortization                                          19,222                                                              372                                                               98                                                  19,692
   Loss on asset disposals                                                   104                                --                                --                                  104  
                                                                 ------------------------------------                      -------------------------------------------                      -------------------------------------------                      ----------------------------------
      Total operating costs and expenses                                 511,770                                           539                                            98                              512,407  
                                                                 ------------------------------------                      -------------------------------------------                      -------------------------------------------                      ----------------------------------
   Operating income (loss)                                                77,899                                                             (539 )                                                            (98 )                                                77,262
Interest expense, net                                                     10,658                                                   --                                                   --                                                  10,658
Loss on equity method investments                                            588                                --                                --                                  588  
                                                                 ------------------------------------                      -------------------------------------------                      -------------------------------------------                      ----------------------------------
Net income (loss) before income tax expense                               66,653                                                             (539 )                                                            (98 )                                                66,016
Income tax benefit                                                          (195 )                                                 --                                --                                 (195 )
                                                                 ------------------------------------                      -------------------------------------------                      -------------------------------------------                      ----------------------------------
Net income (loss)                                                      $  66,848                                                 $           (539 )                                               $            (98 )                                             $  66,211
   Less: loss attributable to Predecessors                        --                                          (539 )                                                            (98 )                                                  (637 )
                                                                 ------------------------------------                      -------------------------------------------                      -------------------------------------------                      ----------------------------------
Net income attributable to partners                                    $  66,848                              $ --                              $ --                            $  66,848  
                                                                 ======= ======= ====================                      ======= ============== ====================                      ======= ============== ====================                      ===== ======= ====================
                                                                                                                                                                                                                                                                            
(1) The information presented is for the year ended
December 31, 2015, disaggregated to present the results of
operations of the Partnership and the Logistics Assets
Predecessor. Prior to the El Dorado offloading racks acquisition
and Tyler crude oil storage tank acquisition on March 31, 2015,
the Logistics Assets Predecessor did not record revenues for
intercompany throughput and storage services.
 
 
                                                                                                                                  Delek Logistics Partners, LP
                                                                                                                          Consolidated Statements of Income (Unaudited)
                                                                                                                          Reconciliation of Partnership to Predecessor
                                                                                                                                                                                
                                                                            Delek Logistics                                               El Dorado Rail                                                   Tyler Crude Oil                                            Three Months Ended
                                                                             Partners, LP                                              Offloading Racks (1)                                               Storage Tank (1)                                             December 31, 2014
                                                                 ----------------------------------                        -----------------------------------------                        -----------------------------------------                        ---------------------------------
                                                                                                                                         El Dorado Assets                                                   Tyler Assets
                                                                                                                                            Predecessor                                                      Predecessor
                                                                                                                                                                          (In thousands)
Net Sales                                                              $ 173,347                                                 $ --                                                 $ --                                                $ 173,347
Operating costs and expenses:
   Cost of goods sold                                                    134,305                                                   --                                                   --                                                  134,305
   Operating expenses                                                      9,710                                                              179                                                   --                                                    9,889
   General and administrative expenses                                     3,258                                                   --                                                   --                                                    3,258
   Depreciation and amortization                                           3,947                                                              128                                                   --                                                    4,075
   Loss on asset disposals                                                     9                                --                                --                                     9  
                                                                 ------------------------------------                      -------------------------------------------                      -------------------------------------------                      -----------------------------------
      Total operating costs and expenses                                 151,229                                           307                                --                               151,536  
                                                                 ------------------------------------                      -------------------------------------------                      -------------------------------------------                      -----------------------------------
   Operating income (loss)                                                22,118                                                             (307 )                                                 --                                                   21,811
Interest expense, net                                                      2,105                                --                                --                                 2,105  
                                                                 ------------------------------------                      -------------------------------------------                      -------------------------------------------                      -----------------------------------
Net income (loss) before income tax benefit                               20,013                                                             (307 )                                                 --                                                   19,706
Income tax benefit                                                          (473 )                                                 --                                --                                  (473 )
                                                                 ------------------------------------                      -------------------------------------------                      -------------------------------------------                      -----------------------------------
Net income (loss)                                                      $  20,486                                                 $           (307 )                                               $ --                                                $  20,179
   Less: loss attributable to Predecessors                        --                                          (307 )                                                 --                                  (307 )
                                                                 ------------------------------------                      -------------------------------------------                      -------------------------------------------                      -----------------------------------
Net income attributable to partners                                    $  20,486                              $ --                              $ --                             $  20,486  
                                                                 ======= ======= ====================                      ======= ============== ====================                      ======= ============== ====================                      ====== ======= ====================
                                                                                                                                                                                                                                                                             
(1) The information presented is for the three months
ended December 31, 2014, disaggregated to present the results of
operations of the Partnership and the Logistics Assets
Predecessor. Prior to the El Dorado offloading racks acquisition
and Tyler crude oil storage tank acquisition on March 31, 2015,
the Logistics Assets Predecessor did not record revenues for
intercompany throughput and storage services.
                                                                                                                                                                                                                                                                             
 
                                                                                                                                                                  Delek Logistics Partners, LP
                                                                                                                                                          Consolidated Statements of Income (Unaudited)
                                                                                                                                                          Reconciliation of Partnership to Predecessor
                                                                                                                                                                                                                             
                                                                           Delek Logistics                                               El Dorado Rail                                                   Tyler Crude Oil                                                El Dorado Terminal                                              Year Ended
                                                                            Partners, LP                                              Offloading Racks (1)                                               Storage Tank (1)                                                and Tank Assets (2)                                          December 31, 2014
                                                                ----------------------------------                        -----------------------------------------                        -----------------------------------------                        -----------------------------------------                        --------------------------------
                                                                                                                                        El Dorado Assets                                                   Tyler Assets                                                       El Dorado
                                                                                                                                           Predecessor                                                      Predecessor                                                      Predecessor
                                                                                                                                                                                                         (In thousands)
Net Sales                                                             $ 841,253                                                 $ --                                                 $ --                                                 $ --                                               $ 841,253
Operating costs and expenses:
   Cost of goods sold                                                   697,221                                                   --                                                   --                                                   --                                                 697,221
   Operating expenses                                                    38,003                                                              679                                                   --                                                              783                                                  39,465
   General and administrative expenses                                   10,570                                                   --                                                   --                                                               46                                                  10,616
   Depreciation and amortization                                         14,591                                                              317                                                   --                                                              114                                                  15,022
   Loss on asset disposals                                                   83                                --                                --                                --                                   83  
                                                                ------------------------------------                      -------------------------------------------                      -------------------------------------------                      -------------------------------------------                      ----------------------------------
      Total operating costs and expenses                                760,468                                           996                                --                                           943                              762,407  
                                                                ------------------------------------                      -------------------------------------------                      -------------------------------------------                      -------------------------------------------                      ----------------------------------
   Operating income (loss)                                               80,785                                                             (996 )                                                                                                                            (943 )                                                78,846
Interest expense, net                                                     8,656                                --                                --                                --                                8,656  
                                                                ------------------------------------                      -------------------------------------------                      -------------------------------------------                      -------------------------------------------                      ----------------------------------
Income before income tax expense                                         72,129                                                             (996 )                                                                                                                            (943 )                                                70,190
Income tax expense                                                          132                                --                                --                                --                                  132  
                                                                ------------------------------------                      -------------------------------------------                      -------------------------------------------                      -------------------------------------------                      ----------------------------------
Net income (loss)                                                     $  71,997                                                 $           (996 )                                               $ --                                                 $           (943 )                                             $  70,058
   Less: loss attributable to Predecessors                       --                                          (996 )                                                 --                                          (943 )                                                (1,939 )
                                                                ------------------------------------                      -------------------------------------------                      -------------------------------------------                      -------------------------------------------                      ----------------------------------
Net income attributable to partners                                   $  71,997                              $ --                              $ --                              $ --                            $  71,997  
                                                                ======= ======= ====================                      ======= ============== ====================                      ======= ============== ====================                      ======= ============== ====================                      ===== ======= ====================
                                                                                                                                                                                                                                                                                                                                            
(1) The information presented is for the year ended
December 31, 2014, disaggregated to present the results of
operations of the Partnership and the Logistics Assets
Predecessor. Prior to the El Dorado offloading racks acquisition
and Tyler crude oil storage tank acquisition on March 31, 2015,
the Logistics Asset Predecessor did not record revenues for
intercompany throughput and storage services.
(2) The information presented includes the results of
operations of the El Dorado Predecessor. Prior to the El Dorado
acquisition on February 10, 2014, the El Dorado Predecessor did
not record revenues for intercompany terminalling and storage
services.
 
 
                                                                                                                    Delek Logistics Partners, LP
                                                                                                     Condensed Consolidated Statements of Cash Flows (Unaudited)
                                                                                                                           (In thousands)
                                   
                                                                                                                                                                                                            Year Ended December 31,
                                                                                                                                                                         --------------------------------------------------------------------------------------------
                                                                                                                                                                            2015 (1)                                                           2014 (2)
                                                                                                                                                                         ---------------                                          -----------------------------------
                                                                                                                                                                                                                                   
Cash Flow Data
Net cash provided by operating activities                                                                                                                                  $ 68,024                                                    $ 85,084
Net cash used in investing activities                                                                                                                                       (56,592 )                                                   (31,662 )
Net cash used in financing activities                                                                                                                                       (13,293 )                                                   (52,485 )
                                                                                                                                                                         --------------                                           ----------------------------------
                     Net (decrease) increase in cash and cash equivalents                                                                                                  $ (1,861 )                                                  $    937  
                                                                                                                                                                         === ====== ===                                           ====== ====== ====================
 
(1) Includes the historical cash flows of the Logistics
Assets predecessor.
(2) Adjusted to include the historical cash flows of
the Logistic Assets predecessor and El Dorado Predecessor.
                                                                                                                                                                                                                                                 
 
                                                                                       Delek Logistics Partners, LP
                                                                                         Segment Data (unaudited)
                                                                                              (In thousands)
 
                                                                                            Three Months Ended December 31, 2015
                                                        --------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Pipelines &                       Wholesale Marketing                    Consolidated
                                                                   Transportation                                           & Terminalling
                                                        ---------------------------------                        ---------------------------------                        ------------------------------
Affiliate                                                    $  26,115                                                $  12,474                                                    $               38,589
Third-Party                                                      6,589                                63,753                                                 70,342
                                                        -----------------------------------                      -----------------------------------                      --------------------------------
Net sales                                                       32,704                                                   76,227                                                                   108,931
Operating costs and expenses:
   Cost of goods sold                                            4,481                                                   66,537                                                                    71,018
   Operating expenses                                           10,720                                 1,012                                                 11,732
                                                        -----------------------------------                      -----------------------------------                      --------------------------------
Segment contribution margin                                  $  17,503                             $   8,678                                                 26,181
                                                        ------ ------- --------------------                      ------ ------- --------------------
General and administrative expense                                                                                                                                                                  2,290
Depreciation and amortization                                                                                                                                                                       5,907
Loss on asset disposals                                                                                                                                                                               122
                                                                                                                                                                          --------------------------------
Operating income                                                                                                                                                                   $               17,862
                                                                                                                                                                          ========== ====================
Total Assets                                                 $ 283,553                             $  91,735                                 $              375,288
                                                        ====== ======= ====================                      ====== ======= ====================                      ========== ====================
                                                                                                                                                                           
Capital spending
Maintenance capital spending                                 $   1,200                                                $     808                                                    $                2,008
Discretionary capital spending                                   2,203                                   486                                                  2,689
                                                        -----------------------------------                      -----------------------------------                      --------------------------------
Total capital spending                                       $   3,403                             $   1,294                                 $                4,697
                                                        ====== ======= ====================                      ====== ======= ====================                      ========== ====================
                                                                                                                                                                                      
                                                                                                               Three Months Ended December 31, 2014
                                                        --------------------------------------------------------------------------------------------------------------------------------------------------
                                                                     Pipelines &                                          Wholesale Marketing                                     Consolidated (1)
                                                                   Transportation                                           & Terminalling
                                                        ---------------------------------                        ---------------------------------                        ------------------------------
Affiliate                                                    $  21,360                                                $   9,368                                                    $               30,728
Third-Party                                                      2,645                               139,974                                                142,619
                                                        -----------------------------------                      -----------------------------------                      --------------------------------
Net sales                                                       24,005                                                  149,342                                                                   173,347
Operating costs and expenses:
   Cost of goods sold                                            1,027                                                  133,278                                                                   134,305
   Operating expenses                                            9,059                                   830                                                  9,889
                                                        -----------------------------------                      -----------------------------------                      --------------------------------
Segment contribution margin                                  $  13,919                             $  15,234                                                 29,153
                                                        ------ ------- --------------------                      ------ ------- --------------------
General and administrative expense                                                                                                                                                                  3,258
Depreciation and amortization                                                                                                                                                                       4,075
Loss on asset disposals                                                                                                                                                                                 9
                                                                                                                                                                          --------------------------------
Operating income                                                                                                                             $               21,811
                                                        ------------------------------------                     ------------------------------------                     ========== ====================
Total assets                                                 $ 230,293                             $ 100,993                                 $              331,286
                                                        ------ ------- --------------------                      ------ ------- --------------------                      ========== ====================
                                                                                                                                                                           
Capital spending
Maintenance capital spending                                 $   1,186                                                $   1,872                                                    $                3,058
Discretionary capital spending                                     794                                   709                                                  1,503
                                                        -----------------------------------                      -----------------------------------                      --------------------------------
Total capital spending (2)                                   $   1,980                             $   2,581                                 $                4,561
                                                        ====== ======= ====================                      ====== ======= ====================                      ========== ====================
                                                                                                                                                                                      
(1) The information presented includes the results of
operations of the Logistics Assets Predecessor. Prior to the El
Dorado offloading racks acquisition and Tyler crude oil storage
tank acquisition on March 31, 2015, the Logistics Assets
Predecessor did not record revenues for intercompany throughput
and storage services.
(2) Capital spending includes expenditures of $(0.1)
million incurred in connection with the Logistics Assets
Predecessor.
                                                                                                                                                                                      
 
                                                                                          Delek Logistics Partners, LP
                                                                                            Segment Data (Unaudited)
                                                                                                 (In thousands)
 
                                                                                             Three Months Ended December 31, 2014
                                                   --------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     Pipelines & Transportation
                                                   --------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Delek Logistics                                         Predecessor -                        Three Months Ended
                                                                         Partners, LP                                         Logistics Assets                                           December 31, 2014
                                                   ----------------------------------------------------         -----------------------------------------                        ------------------------------
Net Sales                                              $                       24,005                                 $ --                                                    $               24,005
Operating costs and expenses:
   Cost of goods sold                                                           1,027                                   --                                                                     1,027
   Operating expenses                                                           8,880                           179                                                  9,059
                                                   -------------------------------------------------------      -------------------------------------------                      --------------------------------
Segment contribution margin                            $                       14,098              $           (179 )                                                  $               13,919
                                                   ===== =================================================      ======= ============== ====================                      ========== ====================
                                                                                                                                                                                  
Total capital spending                                 $                        2,114              $           (134 )                                                  $                1,980
                                                   ===== =================================================      ======= ============== ====================                      ========== ====================
                                                                                                                                                                                             
                                                                                                                Three Months Ended December 31, 2014
                                                   --------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Wholesale Marketing & Terminalling
                                                   --------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Delek Logistics                                                 Predecessor -                                              Three Months Ended
                                                              Partners, LP                                                 Logistics Assets                                              December 31, 2014
                                                   --------------------------------                        ---------------------------------------------                         ------------------------------
Net Sales                                              $ 149,342                                              $         --                                                    $              149,342
Operating costs and expenses:
   Cost of goods sold                                    133,278                                                        --                                                                   133,278
   Operating expenses                                        830                                     --                                                    830
                                                   ----------------------------------                      ------------------------------------------------                      --------------------------------
Segment contribution margin                            $  15,234                           $         --                                 $               15,234
                                                   ===== ======= ====================                      ==== ===========================================                      ========== ====================
                                                                                                                                                                                  
Total capital spending                                 $   2,581                           $         --                                 $                2,581
                                                   ===== ======= ====================                      ==== ===========================================                      ========== ====================
                                                                                                                                                                                             
 
                                                                                      Delek Logistics Partners, LP
                                                                                        Segment Data (unaudited)
                                                                                             (In thousands)
 
                                                                                             Year Ended December 31, 2015 (1)
                                                        -------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    Pipelines &                       Wholesale Marketing                    Consolidated
                                                                  Transportation                                           & Terminalling
                                                        --------------------------------                        ---------------------------------                        ------------------------------
Affiliate                                                   $ 102,551                                                $  50,013                                                    $              152,564
Third-Party                                                    28,828                               408,277                                                437,105
                                                        ----------------------------------                      -----------------------------------                      --------------------------------
Net sales                                                   $ 131,379                                                $ 458,290                                                    $              589,669
Operating costs and expenses:
   Cost of goods sold                                          19,607                                                  416,697                                                                   436,304
   Operating expenses                                          33,751                                11,172                                                 44,923
                                                        ----------------------------------                      -----------------------------------                      --------------------------------
Segment contribution margin                                 $  78,021                             $  30,421                                                108,442
                                                        ----- ------- --------------------                      ------ ------- --------------------
General and administrative expense                                                                                                                                                                11,384
Depreciation and amortization                                                                                                                                                                     19,692
Loss on asset disposals                                                                                                                                                                              104
                                                                                                                                                                         --------------------------------
Operating income                                                                                                                                                                  $               77,262
                                                                                                                                                                         ========== ====================
                                                                                                                                                                          
Capital spending:
Maintenance capital spending                                $  12,965                                                $   1,944                                                    $               14,909
Discretionary capital spending                                  3,065                                 4,453                                                  7,518
                                                        ----------------------------------                      -----------------------------------                      --------------------------------
Total capital spending                                      $  16,030                             $   6,397                                 $               22,427
                                                        ===== ======= ====================                      ====== ======= ====================                      ========== ====================
(1) The information presented includes the results of
operations of the Logistics Assets Predecessor. Prior to the El
Dorado offloading racks acquisition and Tyler crude oil storage
tank acquisition on March 31, 2015, the Logistics Assets
Predecessor did not record revenues for intercompany throughput
and storage services.
                                                                                                                                                                                     
                                                                                                                Year Ended December 31, 2014 (1)
                                                        -------------------------------------------------------------------------------------------------------------------------------------------------
                                                                    Pipelines &                                          Wholesale Marketing                                       Consolidated
                                                                  Transportation                                           & Terminalling
                                                        --------------------------------                        ---------------------------------                        ------------------------------
Affiliate                                                   $  80,683                                                $  33,900                                                    $              114,583
Third-Party                                                    10,665                               716,005                                                726,670
                                                        ----------------------------------                      -----------------------------------                      --------------------------------
Net sales                                                   $  91,348                                                $ 749,905                                                    $              841,253
Operating costs and expenses:
   Cost of goods sold                                           4,294                                                  692,927                                                                   697,221
   Operating expenses                                          31,979                                 7,486                                                 39,465
                                                        ----------------------------------                      -----------------------------------                      --------------------------------
Segment contribution margin                                 $  55,075                             $  49,492                                                104,567
                                                        ----- ------- --------------------                      ------ ------- --------------------
General and administrative expense                                                                                                                                                                10,616
Depreciation and amortization                                                                                                                                                                     15,022
Loss on asset disposals                                                                                                                                                                               83
                                                                                                                                                                         --------------------------------
Operating income                                                                                                                                                                  $               78,846
                                                                                                                                                                         ========== ====================
                                                                                                                                                                          
Capital spending
Maintenance capital spending                                $   4,465                                                $   2,497                                                    $                6,962
Discretionary capital spending                                  1,339                                   867                                                  2,206
                                                        ----------------------------------                      -----------------------------------                      --------------------------------
Total capital spending (2)                                  $   5,804                             $   3,364                                 $                9,168
                                                        ===== ======= ====================                      ====== ======= ====================                      ========== ====================
(1) The information presented includes the results of
operations of the Logistics Assets Predecessor. Prior to the El
Dorado offloading racks acquisition and Tyler crude oil storage
tank acquisition on March 31, 2015, the Logistics Assets
Predecessor revenues for intercompany throughput and storage
services were not recorded.
(2) Capital spending includes expenditures of $2.2
million incurred in connection with the acquisition of the
Logistics Assets Predecessor and El Dorado assets predecessor.
                                                                                                                                                                                     
 
                                                                                          Delek Logistics Partners, LP
                                                                                            Segment Data (Unaudited)
                                                                                                 (In thousands)
 
                                                                                                 Year Ended December 31, 2015
                                                   --------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                     Pipelines & Transportation
                                                   --------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Delek Logistics                                       Logistics Assets                           Year Ended
                                                                         Partners, LP                                            Predecessor                                             December 31, 2015
                                                   ----------------------------------------------------         -----------------------------------------                        ------------------------------
Net Sales                                              $                      131,379                                 $ --                                                    $              131,379
Operating costs and expenses:
   Cost of goods sold                                                          19,607                                   --                                                                    19,607
   Operating expenses                                                          33,584                           167                                                 33,751
                                                   -------------------------------------------------------      -------------------------------------------                      --------------------------------
Segment contribution margin                            $                       78,188              $           (167 )                                                  $               78,021
                                                   ===== =================================================      ======= ============== ====================                      ========== ====================
                                                                                                                                                                                  
Total capital spending                                 $                       16,082              $            (52 )                                                  $               16,030
                                                   ===== =================================================      ======= ============== ====================                      ========== ====================
                                                                                                                                                                                             
                                                                                                                                                                                             
                                                                                                                    Year Ended December 31, 2015
                                                   --------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 Wholesale Marketing & Terminalling
                                                   --------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Delek Logistics                                               Logistics Assets                                                 Year Ended
                                                              Partners, LP                                                    Predecessor                                                December 31, 2015
                                                   --------------------------------                        ---------------------------------------------                         ------------------------------
Net Sales                                              $ 458,290                                              $         --                                                    $              458,290
Operating costs and expenses:
   Cost of goods sold                                    416,697                                                        --                                                                   416,697
   Operating expenses                                     11,172                                     --                                                 11,172
                                                   ----------------------------------                      ------------------------------------------------                      --------------------------------
Segment contribution margin                            $  30,421                           $         --                                 $               30,421
                                                   ===== ======= ====================                      ==== ===========================================                      ========== ====================
                                                                                                                                                                                  
Total capital spending                                 $   6,397                           $         --                                 $                6,397
                                                   ===== ======= ====================                      ==== ===========================================                      ========== ====================
                                                                                                                                                                                             
 
                                                                                                                              Delek Logistics Partners, LP
                                                                                                                                Segment Data (Unaudited)
                                                                                                                                     (In thousands)
 
                                                                                                                                     Year Ended December 31, 2014
                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                         Pipelines & Transportation
                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Delek Logistics                                       Logistics Assets                                     El Dorado Storage Tank                                        Year Ended
                                                                         Partners, LP                                            Predecessor                                                            Assets Predecessor                                       December 31, 2014
                                                   ----------------------------------------------------         -----------------------------------------                        -------------------------------------------------------------           ------------------------------
Net Sales                                              $                       91,348                                 $ --                                                 $                      --                                      $               91,348
Operating costs and expenses:
   Cost of goods sold                                                           4,294                                   --                                                                        --                                                       4,294
   Operating expenses                                                          30,619                           679                                                                681                                   31,979
                                                   -------------------------------------------------------      -------------------------------------------                      ----------------------------------------------------------------        --------------------------------
Segment contribution margin                            $                       56,435              $           (679 )                                               $                                (681 )                                    $               55,075
                                                   ===== =================================================      ======= ============== ====================                      ======= ========================================================        ========== ====================
                                                                                                                                                                                                                                                          
Total capital spending                                 $                        3,555              $          2,036                              $                                 213                   $                5,804
                                                   ===== =================================================      ======= ============== ====================                      ======= ========================================================        ========== ====================
                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                     
                                                                                                                                                        Year Ended December 31, 2014
                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                     Wholesale Marketing & Terminalling
                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                             Delek Logistics                                               Logistics Assets                                                 El Dorado Storage Tank                                              Year Ended
                                                              Partners, LP                                                    Predecessor                                                     Assets Predecessor                                             December 31, 2014
                                                   --------------------------------                        ---------------------------------------------                         -----------------------------------------                        ------------------------------------
Net Sales                                              $ 749,905                                              $         --                                                 $ --                                                $                         749,905
Operating costs and expenses:
   Cost of goods sold                                    692,927                                                        --                                                   --                                                                          692,927
   Operating expenses                                      7,384                                     --                                           102                                                         7,486
                                                   ----------------------------------                      ------------------------------------------------                      -------------------------------------------                      ---------------------------------------
Segment contribution margin                            $  49,594                           $         --                              $           (102 )                                              $                          49,492
                                                   ===== ======= ====================                      ==== ===========================================                      ======= ============== ====================                      ====== ================================
                                                                                                                                                                                                                                                   
Total capital spending                                 $   3,400                           $         --                              $            (36 )                                              $                           3,364
                                                   ===== ======= ====================                      ==== ===========================================                      ======= ============== ====================                      ====== ================================
                                                                                                                                                                                                                                                          
                                                                                                                                                       
                                                                                              Delek Logistics Partners, LP
                                                                                                Segment Data (Unaudited)
                                                                                                                                                                                               
                                                                              Three Months Ended                                                                  Year Ended
                                                                                                    December 31,                                                                    December 31,
                                                                             ----------------------------------------------------                            -----------------------------------------------------
Throughputs (average bpd)                                                           2015                 2014                                 2015                                    2014
                                                                             -------------------                     -------------------                     ------------                     --------------------------
                                                                                                                                                                                               
Pipelines and Transportation Segment:
Lion Pipeline System:
   Crude pipelines (non-gathered)                                                       54,342                                  50,303                           54,960                                          47,906
   Refined products pipelines to Enterprise Systems                                     60,549                                  56,343                           57,366                                          53,461
SALA Gathering System                                                                   19,741                                  23,949                           20,673                                          22,656
East Texas Crude Logistics System                                                        8,613                                  10,863                           18,828                                           7,361
El Dorado Rail Offloading Rack                                                  --                          --                              981                                  --
                                                                                                                                                                                               
Wholesale Marketing and Terminalling Segment:
East Texas - Tyler Refinery sales volumes (average bpd)                                 66,950                                  62,172                           59,174                                          61,368
West Texas marketing throughputs (average bpd)                                          12,488                                  15,441                           16,357                                          16,707
West Texas marketing margin per barrel                                        $           1.05                        $           6.36                        $    1.35                                $           4.67
Terminalling throughputs (average bpd)                                                 114,136                                 100,396                          106,514                                          96,801

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160225006753r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160225006753/en/

SOURCE: Delek Logistics Partners, LP

Delek Logistics Partners, LP 
Keith Johnson, 615-435-1366 
Vice President of Investor Relations 
or 
Alpha IR Group 
Chris Hodges, 312-445-2870 
Founder & CEO


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