Delek Logistics Partners (DKL) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 results with net income of $44.6 million and adjusted EBITDA of $120.9 million, up 18% year-over-year, driven by strong performance in the Permian Basin and strategic acquisitions.

• Successfully commissioned the Libby 2 gas processing plant, expanding capacity for producer customers in Lea County, NM, and expected to reach full capacity by year-end.

• Marked the 50th consecutive quarterly distribution increase to $1.115 per unit.

• Liquidity exceeded $1 billion following a $700 million debt offering maturing in 2033.

• Gravity and H2O Midstream acquisitions expanded water services and third-party revenue, enhancing the competitive position in the Permian Basin.

Financial highlights

• Q2 2025 adjusted EBITDA was $120.9 million, up from $102.4 million in Q2 2024; net income was $44.6 million, or $0.83 per diluted unit.

• Distributable cash flow, as adjusted, was $73 million, with a DCF coverage ratio of 1.22x.

• Gathering and processing segment adjusted EBITDA rose to $78 million from $54.7 million year-over-year, driven by acquisitions.

• Wholesale marketing and terminalling adjusted EBITDA declined to $23 million from $30 million due to prior agreements.

• Storage and transportation adjusted EBITDA remained flat at $17 million.

Outlook and guidance

• Reaffirmed full-year 2025 adjusted EBITDA guidance of $480–$520 million.

• Management expects continued distribution growth and further expansion of processing capacity at the Libby Complex.

• Minimum volume commitments and dedicated acreage agreements provide recessionary protection and support distribution growth.

• Confident in guidance despite commodity price volatility, citing strong producer relationships and low break-evens.