Revenue during the quarter grew 24.43 percent to $129.47 million from $104.06 million in the previous year period. Gross margin for the quarter contracted 736 basis points over the previous year period to 28.49 percent. Total expenses were 85.73 percent of quarterly revenues, up from 81.77 percent for the same period last year. That has resulted in a contraction of 397 basis points in operating margin to 14.27 percent.

Operating income for the quarter was $18.47 million, compared with $18.97 million in the previous year period.

Uzi Yemin, chairman and chief executive officer of Delek Logistics' general partner, remarked: "During the first quarter, our position in the Permian Basin benefited from increased drilling activity, which has translated into better margins in our west Texas wholesale operation and increased volumes on our RIO joint venture crude oil pipeline. Also, late in the first quarter, volume on the Paline Pipeline benefited from crude oil price differentials widening, as the price environment supported third party crude oil shipments to the Gulf Coast. The Caddo joint venture crude oil pipeline, which began operations in January, quickly increased throughput during the first quarter. We maintained financial flexibility, ending the quarter with approximately $301 million of capacity on our credit facility and a leverage ratio of 3.8 times. Our financial position supported the 13.1 percent year-over-year increase in our declared first quarter distribution."

The company has spent $5.41 million cash to meet investing activities during the quarter as against cash outgo of $16.56 million in the last year period.

The company has spent $18.09 million cash to carry out financing activities during the quarter as against cash outgo of $9.62 million in the last year period.

Cash and cash equivalents stood at $0.03 million as on Mar. 31, 2017, down 83.82 percent or $0.17 million from $0.20 million on Mar. 31, 2016.

Working capital drops significantly
Delek Logistics Partners, LP has witnessed a decline in the working capital over the last year. It stood at $8.58 million as at Mar. 31, 2017, down 61.16 percent or $13.52 million from $22.10 million on Mar. 31, 2016. Current ratio was at 1.38 as on Mar. 31, 2017, down from 2.23 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 14 days for the quarter from 31 days for the last year period. Days sales outstanding went down to 20 days for the quarter compared with 30 days for the same period last year.

Days inventory outstanding has decreased to 3 days for the quarter compared with 12 days for the previous year period. At the same time, days payable outstanding was almost stable at 10 days for the quarter, when compared with the previous year period.