Business Context and Reporting Period
Company: Delek Logistics Partners, LP
Filing Type: Form 8-K (Current Report)
Date of Report: July 25, 2013
Event: Entry into a Material Definitive Agreement following the acquisition of the Big Sandy Terminal and Pipeline assets from Enterprise TE Products Pipeline Company LLC on July 19, 2013.
Key Financial Metrics
This filing does not report consolidated revenue, profit, cash flow, margins, debt, or liquidity metrics. It details specific contractual financial terms related to the Big Sandy Terminal and Pipeline:
- Minimum Pipeline Throughput Commitment: 5,000 barrels per day (calculated on a quarterly average basis).
- Transportation Fee: $0.50 per barrel for volumes shipped by Delek Refining, Ltd.
Material Changes
The Partnership entered into an Amended and Restated Terminalling Services Agreement with Delek Refining, Ltd. Key modifications include:
- Renewal and Third-Party Rights: If Delek Refining does not exercise its renewal option, the Partnership may enter into agreements with third parties. Delek Refining retains a 45-day right of first refusal to match third-party terms.
- Throughput Obligations: Added a specific minimum pipeline throughput commitment of 5,000 barrels per day.
- Capital Improvements: Delek Refining is entitled to designate capital improvements to the terminal and pipeline per established procedures.
- Third-Party Services: The Partnership may serve third parties with prior written consent from Delek Refining, provided such services do not negatively impact Delek Refining's usage.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the operational constraints of the new agreement. The agreement includes a contingency regarding the Partnership's ability to serve third parties, which is contingent upon Delek Refining's consent and non-interference with their operations.
Investor Verification Checklist
- Verify the full text of the Amended and Restated Services Agreement (Exhibit 10.1) for complete terms.
- Confirm the operational status and capacity of the newly acquired Big Sandy Terminal and Pipeline assets.
- Monitor Delek Refining's ability to meet the 5,000 barrels per day minimum throughput commitment.
- Assess the potential for future third-party service agreements and the associated consent requirements.