Business Context and Reporting Period
Company: Delek Logistics Partners, LP
Filing Type: Form 8-K (Current Report)
Date of Report: February 16, 2018
Event: Formation of a joint venture and agreement to acquire light product terminals.
Key Financial Metrics
This filing does not report standard financial performance metrics such as revenue, profit, cash flow, margins, or debt levels for the reporting period. The primary financial data point disclosed is the proposed acquisition price.
- Proposed Acquisition Price: $138.5 million (cash), subject to working capital and other adjustments.
- Transaction Structure: 50/50 joint venture (DKGP Energy Terminals LLC) with Green Plains Partners, LP.
Material Changes
The filing discloses a material strategic change involving the creation of a new business entity and a significant asset acquisition:
- Joint Venture Formation: Delek Logistics Partners, LP and Green Plains Partners, LP formed DKGP Energy Terminals LLC to engage in a proposed light products terminalling business.
- Asset Acquisition: DKGP agreed to purchase the entire membership interest of an American Midstream Partners, LP affiliate owning light product terminals in Caddo Mills, Texas, and North Little Rock, Arkansas.
- Guarantees: Both Delek and Green Plains executed a parent guaranty agreement, each guaranteeing their respective 50% share of DKGP's obligations under the purchase agreement.
Guidance, Outlook, and Risks
Outlook and Conditions: The transaction is subject to customary closing conditions and regulatory approvals. Further details are referenced in a joint press release dated February 20, 2018.
Risks and Contingencies: The filing does not explicitly list specific risks beyond the standard contingencies of regulatory approval and closing conditions. No financial guidance or management commentary regarding future earnings is provided in this document.
Investor Verification Checklist
- Verify the status of regulatory approvals required for the $138.5 million acquisition.
- Confirm the final purchase price after working capital and other adjustments.
- Review the joint press release (Exhibit 99.1) for additional details on the DKGP joint venture strategy.
- Monitor for the execution of definitive agreements following the Letter of Intent.