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Delek Logistics Partners (DKL 2.16%)
Q2 2023 Earnings Call
Aug 07, 2023, 12:30 p.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Good day and welcome to the Delek Logistics Partners second-quarter earnings conference call. All participants will be in listen-only mode. [Operator instructions] Please note, this event is being recorded. I would now like to turn the conference over to Rosy Zuklic, vice president of investor relations.
Please go ahead.
Rosy Zuklic -- Vice President, Investor Relations and Market Intelligence
Welcome to the Delek Logistics Partners' second-quarter earnings conference call. Participants on today's call will include Avigal Soreq, president; Joseph Israel, EVP, operations; Reuven Spiegel, EVP and chief financial officer; and Odely Sakazi, SVP, Delek Logistics. As a reminder, this conference call will contain forward-looking statements as defined under the federal securities laws, including, without limitation, statements regarding guidance and future business outlook. These statements involve risks and uncertainties that may cause actual results to differ from our forecast.
For more information, please refer to the risk factors discussed in the company's most recently filed annual report on Form 10-K and quarterly report on Form 10-Q filed with the SEC, along with the press release associated with this call. The company assumes no obligation to update any forward-looking statements or information which speaks as of their respective dates. I'll now turn the call over to Avigal for opening remarks.
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Avigal Soreq -- President
Thanks, Rosy. Delek Logistics Partners delivered another great quarter with $93 million of EBITDA. Delek Logistics has been able to provide consistent results and stable cash flow. We are encouraged by a positive outlook.
As the production in the Permian Basin ramps up, we continue on our promising growth path with increased scale and efficiency. We are proud to say that our acreage has outperformed average growth in the basin. The Midland Gathering system volumes has -- have more than doubled from a year ago, and we're excited to identify more value-add opportunities with our producers. Our Delaware Gathering assets are performing well and meeting our expectations.
We now expect to exceed $100 million a quarter EBITDA run rate by Q4 of this year. On July 26th, our board of directors approved 5.1% increase in the quarterly distribution from the prior year to $1.035 per limited partner unit for the second quarter of 2023. We are committed to continuing increasing the quarterly distribution. I will now hand it over to Reuven.
Reuven Spiegel -- Chief Financial Officer
Thank you, Avigal. Total EBITDA for logistics was 93 million for the second quarter of '23, compared with 65 million for the same period in '22. For the second quarter of '23, distributable cash flow was 60 million, and the DCF coverage ratio was 1.34. For the gathering and processing segment, EBITDA this quarter was 53 million, compared with 38 million in the second quarter of '22.
The increase was primarily driven from strong contributions by the Midland Gathering System, as well as Delaware Gathering. Throughput for the Midland gathering averaged approximately 222,000 barrels per day for the second quarter of '23, more than twice the average 100,000 barrels per day in the second quarter of '22. The wholesale and marketing and terminalling segment EBITDA of 28 million for the quarter, compared with 19 million in the second quarter of '22. The increase was due to higher terminalling throughput in East Texas and higher gross margin in our West Texas operation.
The storage and transportation segment had EBITDA of 15 million this quarter, which is in line with the last year results. And lastly, the investment in Pipeline joint venture segment contributed $7 million toward the second quarter of '23, flat with the second quarter of '22. Moving on to capital expenditures. Second quarter of 23 capital spending was 19 million.
Most of that spend was for growth projects, namely advancing new connections in the Delaware and Midland gathering systems. For 2023, we maintained with our capital outlook of 81 million. With that, we can open the call for questions.
Questions & Answers:
Operator
And we will now begin the question-and-answer session. [Operator instructions] Since we have no questions at this time, we will turn the conference over back to Avigal Soreq for any closing remarks.
Avigal Soreq -- President
So, I want to thank the executives around the table, to our employees, to the board of directors, and to you, investor, for another great quarter of DKL. We are very much committed to the path we're at. We see a sustainable growth, and we are committed to run the course. And we'll talk again in the next quarter.
Thank you.
Operator
[Operator signoff]
Duration: 0 minutes
Call participants:
Rosy Zuklic -- Vice President, Investor Relations and Market Intelligence
Avigal Soreq -- President
Reuven Spiegel -- Chief Financial Officer
