Delek Logistics Partners, LP (NYSE:DKL) Q2 2020 Earnings Conference Call - Final Transcript
Aug 05, 2020 • 08:30 am ET
Good morning and welcome to the Delek Logistics' Second Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to Blake Fernandez. Please go ahead.
Thank you, and good morning. I would like to thank everyone for joining us on this webcast to discuss Delek Logistics Partners' second quarter 2020 financial results. Joining me on the call today will be Uzi Yemin, our general partner's Chairman and CEO; and Reuven Spiegel, CFO, as well as other members of our management team. As a reminder, this conference call may contain forward-looking statements as that term is defined under federal securities laws. In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, we report certain non-GAAP financial results.
Investors are encouraged to review the reconciliation of these non-GAAP financial measures to the comparable GAAP results, which can be found in the press release, which is posted on the Investor Relations section of our website. Our prepared remarks are being made assuming earnings release has been reviewed and we are covering less segment and market information than as incorporated into the second quarter press release. On today's call, Reuven will begin with financial overview, I will review the results, and Uzi will offer a few closing strategic remarks.
With that, I'll turn the call over to Reuven.
Thank you, Blake. Our second quarter performance on a year-over-year basis benefited from relatively stable baseline business operations, contribution from the recent asset dropdowns along with business initiatives and asset optimization. Our distributable cash flow was approximately $57 million in the second quarter of 2020, compared to $31 million in the second quarter of 2019. The Limited Partners' interest in net income increased approximately 107% over the prior year period. Our DCF coverage ratio was 1.58 times for the second quarter of 2020, compared to 1.08 times in the prior year period. EBITDA was $65 million, which represents a 45% increase over the prior year period.
Based on our performance and outlook, we increased our quarterly distribution to $0.90 per Limited Partner unit for the quarter ended June 30, 2020. This distribution will be paid on August 12, 2020 and represents a 1.1% increase from the first quarter of 2020. This is our 29th consecutive quarterly increase and is 6% higher than our second quarter of 2019 distribution. At June 30, 2020, DKL had approximately $100 million of available capacity on our $850 million credit facility. Our total debt was approximately $995 million, and the total leverage ratio was below 4.1 times, which is within the 5.5 times currently allowable under our credit facility.
Now, I will return the call over to Blake to discuss the results.
Thanks, Reuven. For the second quarter of 2020, Delek Logistics reported net income attributable to all partners of $44.4 million which compares to $24.9 million in the prior year period. The Limited Partners' interest in net income in the second quarter was