Delek Logistics Partners (DKL) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 adjusted EBITDA of $107.2 million, reflecting a transformational year with strong operational and financial performance and 6% year-over-year growth.

• Completed key acquisitions, including H2O Midstream and Gravity Water Midstream, and finalized investment decisions on new gas processing and acid gas injection projects.

• Increased economic separation from Delek US, with third-party EBITDA contribution reaching approximately 70% on a pro-forma basis.

• Initiated a $150 million buyback authorization and approved the 48th consecutive quarterly distribution increase to $1.105 per unit.

• Expanded asset base and competitive position in the Permian, Midland, and Delaware Basins through acquisitions and organic growth projects.

Financial highlights

• Q4 2024 adjusted EBITDA was $107.2 million, up from $100.9 million in Q4 2023.

• Distributable Cash Flow (DCF), as adjusted, was $69.5 million with a DCF coverage ratio of 1.17x for Q4 2024.

• Gathering and processing segment adjusted EBITDA rose to $66 million from $53.3 million year-over-year.

• Wholesale marketing and terminaling adjusted EBITDA declined to $21.2 million from $28.4 million year-over-year.

• Storage and transportation adjusted EBITDA increased slightly to $17.8 million from $17.5 million year-over-year.

Outlook and guidance

• 2025 Adjusted EBITDA guidance set at $480–$520 million, representing about 20% growth over 2024.

• Capital expenditures for 2025 expected to total $235 million, including $75 million for Libby plant expansion and $160 million for growth and maintenance.

• DCF coverage ratio targeted to return to 1.3x in the second half of 2025.

• Focus on completing Libby plant expansion, adding AGI & sour gas treating, and enhancing Midland basin offerings.

• Management expects continued distribution growth and prudent liquidity and leverage management.