Q2 2024 Delek Logistics Partners LP Earnings Call
And therefore, we're both their services. So this is accretive at very accretive deal for us and it is extremely synergistic.
Speaker Change: No I would agree and then secondly, just on the new Delaware gas plant.
Speaker Change: Whats the timing maybe.
Speaker Change: Maybe jumping the gun a little bit on this one but I liked that bidders I think there is some future.
Speaker Change: Additional gas processing opportunities you all can have around there beginning next year. After you close and I'm just wondering what how soon could you see some of those future gas opportunities and what might that consistent.
Speaker Change: Yes, so all of it.
Speaker Change: <unk> plant is completed.
Speaker Change: Completely synergetic with the covenant that gas since we have we said that we're going to have completed the second.
Speaker Change: Second in the first half of.
Speaker Change: 2025, and it's already being nicely subscribed with any I don't know if you want to add into that just a little bit and to your comment.
Speaker Change: To be honest right now we already have the associate need for additional capacity from what we're seeing with our producer currently and also going forward. So this is why we feel very comfortable on the volume on that new plant is already highly subscribed as Abigail mentioned, so we see that timing pretty much.
Austin: As soon as possible from Austin.
Speaker Change: Great guys nice additions on both side. Thank you.
Speaker Change: Okay. Thank you.
Speaker Change: Yeah.
Doug <unk>: Your next question comes from the line of Doug <unk> of Citi. Your line is open.
Speaker Change: Yeah.
Speaker Change: Alright, thanks for the question.
Doug <unk>: Wanted to touch on the $55 to $85 million EBITDA range you provided for the transactions. This morning I was wondering if you could talk about some of the assumptions for the high end versus the low end of that range is that mostly dependent.
Speaker Change: Some of the <unk> midstream synergies or are there maybe some other factors under consideration there.
Speaker Change: And then should we expect that to kind of a good run rate for 25 or is that ramping over time.
Speaker Change: So.
Speaker Change: So the three main components around it looked like we outline.
Speaker Change: One is the decay contract amendment extent secondly, the Ww and there are these aged or midstream.
Speaker Change: And then for the gas processing plant.
Speaker Change: I think the majority of that is not coming from synergies is coming from the base business.
Speaker Change: And I.
Speaker Change: Good estimation is to take the mid point out of that this is a good number to assume going forward.
Speaker Change: Okay, Great that's helpful.
Speaker Change: I was just wondering if you could provide a little more detail around the funding expectations for the cash component to these transactions.
Speaker Change: And if I look at slide six in the presentation materials. It looks like maybe some units are changing hands here as part of the Wink to Webster and re contracting just wanted to clarify on I'm interpreting that correctly and if so maybe get a little more detail around how that might play into the deconsolidation priorities at the dk.
Speaker Change: Yes, absolutely so units are changing hands, but the net amount is not between the companies. So it's likely exchange value for one company to another and we've got the tax efficient.
Speaker Change: So that's a good news so don't need to pay a little bit.
Speaker Change: A lot of attention into this part of the equation.
Speaker Change: You didn't you can you can you can appreciate it I'm sure we put the right assets either under the highest ownership.
Speaker Change: Ww weight naturally belong in the exchanges for a value that belong to the refineries.
Speaker Change: Yeah.
Speaker Change: Got it that's all from me I appreciate the questions.
Speaker Change: Thank you.
Speaker Change: With no further questions that concludes our Q&A session I will now turn the conference back over to CEO <unk> <unk> for closing remarks.
Speaker Change: Thank you so I would like to thank Kim.
Speaker Change: Leadership and unsustainable.
Speaker Change: Yes.
Speaker Change: <unk> Board of directors for you invest dose and when it comes to age duo team to the Delek the decay in the family. Thank you guys and we'll talk next next quarter.
Speaker Change: This concludes today's conference call you may now disconnect.
Speaker Change: Thank you.
Speaker Change:
Speaker Change: Yeah.
Yeah.
Speaker Change: Okay.