Delek Logistics Partners (DKL) Q4 2025 earnings summary

Executive summary

• Achieved record Adjusted EBITDA of $535.6 million for 2025, driven by strong execution and integration of H2O and Gravity acquisitions, and record net income of $47.3 million for Q4 2025.

• Expanded as a full-service provider in the Permian Basin, advancing natural gas, crude, and water businesses.

• Completed major projects including the Libby 2 gas processing plant, Gravity Water Midstream acquisition, and DPG Dropdown.

• 2026 EBITDA guidance set at $520 million-$560 million, reflecting continued growth opportunities and including a ~$10 million negative impact from Winter Storm Fern.

• Board approved 52nd consecutive quarterly distribution increase to $1.125 per unit, marking 13 years of growth.

Financial highlights

• Q4 2025 Adjusted EBITDA reached $142.3 million, up from $114 million year-over-year, and full-year 2025 Adjusted EBITDA was $535.6 million, up from $433.8 million in 2024.

• Q4 2025 net income rose 34% year-over-year to $47.3 million; distributable cash flow as adjusted was $73.3 million, with a DCF coverage ratio of 1.22x.

• Gathering and Processing segment Adjusted EBITDA was $71 million in Q4 2025, up from $66 million in Q4 2024, driven by acquisitions.

• Storage and transportation Adjusted EBITDA rose to $35 million from $18 million year-over-year, reflecting asset sales and increased interest income.

• Pipeline joint venture segment contributed $26 million in Q4 2025, up from $18 million in Q4 2024.

Outlook and guidance

• 2026 EBITDA guidance range of $520 million-$560 million, supported by growth in gas, crude, and water segments, and including Winter Storm Fern impact.

• Third-party EBITDA contribution expected to exceed 80% in 2026, increasing independence from sponsor.

• Anticipate step change in gas utilization as sour gas infrastructure is completed, with further expansion possible.

• Focus remains on maintaining leverage and coverage targets while pursuing accretive growth.