Delek Logistics Reports Record Fourth Quarter 2024 Results

Rhea-AI Summary

Delek Logistics Partners (NYSE: DKL) reported record fourth quarter 2024 results with net income of $35.3 million and record Adjusted EBITDA of $107.2 million, up 6% year over year. The company declared a quarterly cash distribution of $1.105 per unit, representing a 4.7% increase from Q4 2023.

2024 was transformational for DKL as it progressed toward becoming an independent Permian midstream services provider. Key achievements included completing the Wink to Webster pipeline acquisition, closing the H2O Midstream acquisition, announcing FID on a new gas processing plant, and increasing dedicated acres in the Midland basin to ~400,000. Third-party EBITDA contribution reached ~70% on a pro-forma basis.

In early 2025, DKL closed the Gravity Water Midstream acquisition, announced full-year Adjusted EBITDA guidance of $480-$520 million, and authorized a $150 million buyback of Delek US-owned common units. As of December 31, 2024, DKL had total debt of approximately $1.88 billion with a leverage ratio of ~4.06x.

Positive

• Record Q4 Adjusted EBITDA of $107.2 million, up 6% year-over-year
• Quarterly distribution increased to $1.105 per unit, up 4.7% from Q4 2023
• Authorized $150 million buyback of Delek US-owned common units
• Third-party cash flow contribution increased to ~70% on pro-forma basis
• Strong 2025 Adjusted EBITDA guidance of $480-$520 million
• Increased dedicated acres in Midland basin to ~400,000
• Raised ~$298 million from two primary offerings to fund growth projects

Negative

• Net cash from operating activities decreased to $49.9 million in Q4 2024 from $114.7 million in Q4 2023
• Wholesale Marketing and Terminalling Segment Adjusted EBITDA decreased to $21.2 million from $28.4 million in Q4 2023
• Total debt of approximately $1.88 billion with leverage ratio of ~4.06x
• Corporate Adjusted EBITDA loss increased to $9.0 million from $6.9 million in Q4 2023

Insights

Financial Analyst

Delek Logistics Posts Record Q4 Results While Advancing Permian-Focused Strategy

Delek Logistics Partners (DKL) reported record Q4 2024 Adjusted EBITDA of $107.2 million, up 6% year-over-year, reflecting the company's successful transformation into a more independent midstream operator. Net income reached $35.3 million ($0.68 per diluted partner unit), while distributable cash flow increased to $69.5 million from $64.6 million in Q4 2023.

The results demonstrate DKL's ongoing strategic pivot to become a premier Permian Basin midstream provider, with segment performance highlighting both strengths and challenges:

• Gathering and Processing segment showed impressive growth, with Adjusted EBITDA jumping to $66.0 million from $53.3 million in Q4 2023, driven by higher Permian Basin throughput and the H2O Midstream acquisition
• Wholesale Marketing and Terminalling segment declined to $21.2 million from $28.4 million, primarily due to compressed wholesale margins
• Investments in Pipeline Joint Ventures contributed $11.3 million, up from $8.5 million, benefiting from the Wink to Webster pipeline acquisition

The company's transformation toward greater independence from sponsor Delek US is progressing rapidly, with third-party cash flow now representing approximately 70% of total EBITDA following the January 2025 Gravity Water Midstream acquisition. This reduces sponsor concentration risk while creating a more diversified revenue stream.

DKL maintained its impressive distribution growth streak with its 48th consecutive increase, raising the quarterly distribution to $1.105 per unit. With a current yield around 11%, DKL offers one of the highest yields in the midstream sector, though investors should monitor the company's leverage ratio of 4.06x, which sits above the industry average of 3.0-3.5x.

The $150 million buyback authorization targeting Delek US-owned units represents a strategic capital allocation decision that should benefit unitholders by reducing the float and future distribution obligations. This approach allows DKL to simultaneously invest in growth projects while managing its capital structure.

Looking ahead, DKL's 2025 Adjusted EBITDA guidance of $480-$520 million suggests continued strong performance, supported by its expanding Permian Basin infrastructure. The company's strategic positioning in both the Midland and Delaware basins provides exposure to some of the most productive and economic oil and gas regions in North America, offering visible growth opportunities through both organic projects and potential additional acquisitions.

While DKL's transformation is impressive, investors should monitor execution risks associated with integrating multiple acquisitions and the company's ability to deleverage while maintaining distribution growth. The midstream sector faces broader challenges from energy transition pressures, though DKL's water handling capabilities provide some diversification beyond traditional hydrocarbon infrastructure.

• Net income of $35.3 million
• Reported record Adjusted EBITDA of $107.2 million up 6% year over year
• Transformational 2024 towards becoming an independent, full suite Permian midstream services provider. In 2024:
  • Completed the acquisition of Delek US' interest in the Wink to Webster ("W2W") pipeline
  • Amended and extended agreements with Delek US for a period of up to seven years
  • Announced the final investment decision ("FID") on a new gas processing plant adjacent to the existing Delaware plant
  • Closed the acquisition of H2O Midstream
  • Announced the FID on Acid Gas Injection at the Libby Complex in the Delaware Basin
  • Increased our dedicated acres in the Midland basin to ~400,000 acres
  • Raised ~$298 million from two separate primary offerings to fund its accretive growth projects
  • Increased economic separation from our sponsor with third party EBITDA contribution of ~70% on a pro-forma basis
• We have also started 2025 on a strong note. Since the start of the year:
  • Closed the acquisition of Gravity Water Midstream
  • Announced a strong full year Adjusted EBITDA guidance of $480 to $520 million
  • Announced a buyback authorization of $150 million of Delek US owned common units
    • Allows us to reduce common units outstanding and distributions
• Continued our consistent distribution growth policy with recent increase to $1.105/unit

BRENTWOOD, Tenn.--(BUSINESS WIRE)-- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the fourth quarter 2024.

“Delek Logistics made great strides in 2024 in becoming a premier midstream provider in the Permian basin. It provides the best combination of yield and growth in the midstream sector with a long runway of growth driven by its advantageous position in the Midland and Delaware basins. We are proud of the 48^th consecutive increase in our distribution and we expect to continue to increase our distribution in the future. The completion of the acquisition of Gravity Water Midstream in January 2025 pushes third party cash flow contribution at Delek Logistics to ~70%, a significant step in increasing our economic separation from our sponsor Delek US,” said Avigal Soreq, President of Delek Logistics' general partner.

"Going forward, we look forward to completing our Libby plant expansion, adding AGI & Sour gas treating capabilities at the Libby complex, and making our combined crude and water offering in the Midland basin more accretive. We will continue to strengthen and grow Delek Logistics through a prudent management of liquidity and leverage," Mr. Soreq continued.

Delek Logistics reported fourth quarter 2024 net income of $35.3 million (net income attributable to limited partners of $34.5 million, or $0.68 per diluted common limited partner unit). The fourth quarter 2024 net income attributable to limited partners included $2.7 million of transaction costs and impacts of sales-type lease accounting. This compares to net income attributable to limited partners of $22.1 million, or $0.51 per diluted common limited partner unit, in the fourth quarter 2023 which included a $14.8 million goodwill impairment. Net cash provided by operating activities was $49.9 million in the fourth quarter 2024 compared to $114.7 million in the fourth quarter 2023. Distributable cash flow, as adjusted was $69.5 million in the fourth quarter 2024, compared to $64.6 million in the fourth quarter 2023.

For the fourth quarter 2024, earnings before interest, taxes, depreciation and amortization ("EBITDA") was $73.8 million compared to $86.1 million in the fourth quarter 2023. The fourth quarter 2024 EBITDA included $2.7 million of transaction costs and impacts of sales-type lease accounting. For the fourth quarter 2024, Adjusted EBITDA was $107.2 million compared to $100.9 million in the fourth quarter 2023.

Distribution and Liquidity

On January 24, 2025, Delek Logistics declared a quarterly cash distribution of $1.105 per common limited partner unit for the fourth quarter 2024. This distribution was paid on February 11, 2025 to unitholders of record on February 4, 2025. This represents a 0.5% increase from the third quarter 2024 distribution of $1.100 per common limited partner unit, and a 4.7% increase over Delek Logistics’ fourth quarter 2023 distribution of $1.055 per common limited partner unit.

As of December 31, 2024, Delek Logistics had total debt of approximately $1.88 billion and cash of $5.4 million and a leverage ratio of approximately 4.06x. Additional borrowing capacity under the $1.15 billion third party revolving credit facility was $714.6 million.

Consolidated Operating Results

Adjusted EBITDA in the fourth quarter 2024 was $107.2 million compared to $100.9 million in the fourth quarter 2023. The $6.3 million increase in Adjusted EBITDA reflects higher contributions from the Delaware Gathering systems, H2O Midstream, terminalling and marketing rate increases, as well as impacts from the W2W dropdown.

Gathering and Processing Segment

Adjusted EBITDA in the fourth quarter 2024 was $66.0 million compared with $53.3 million in the fourth quarter 2023. The increase was primarily due to higher throughput from Permian Basin assets and incremental EBITDA from the H2O Midstream acquisition.

Wholesale Marketing and Terminalling Segment

Adjusted EBITDA in the fourth quarter 2024 was $21.2 million, compared with fourth quarter 2023 Adjusted EBITDA of $28.4 million. The decrease was primarily due to a decline in wholesale margins and impacts of intercompany agreements.

Storage and Transportation Segment

Adjusted EBITDA in the fourth quarter 2024 was $17.8 million, compared with $17.5 million in the fourth quarter 2023.

Investments in Pipeline Joint Ventures Segment

During the fourth quarter 2024, income from equity method investments was $11.3 million compared to $8.5 million in the fourth quarter 2023. The increase was primarily due to the impacts of the W2W dropdown.

Corporate

Adjusted EBITDA in the fourth quarter 2024 was a loss of $9.0 million compared to a loss of $6.9 million in the fourth quarter 2023.

Fourth Quarter 2024 Results | Conference Call Information

Delek Logistics will hold a conference call to discuss its fourth quarter 2024 results on Tuesday, February 25, 2024 at 11:30 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekLogistics.com. Participants are encouraged to register at least 15 minutes early to download and install any necessary software. An archived version of the replay will also be available at www.DelekLogistics.com for 90 days.

About Delek Logistics Partners, LP

Delek Logistics is a midstream energy master limited partnership headquartered in Brentwood, Tennessee. Through its owned assets and joint ventures located primarily in and around the Permian Basin, the Delaware Basin and other select areas in the Gulf Coast region, Delek Logistics provides gathering, pipeline and other transportation services primarily for crude oil and natural gas customers, storage, wholesale marketing and terminalling services primarily for intermediate and refined product customers, and water disposal and recycling services. Delek US Holdings, Inc. ("Delek US") owns the general partner interest as well as a majority limited partner interest in Delek Logistics, and is also a significant customer.

Safe Harbor Provisions Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based upon current expectations and involve a number of risks and uncertainties. Statements concerning current estimates, expectations and projections about future results, performance, prospects, opportunities, plans, actions and events and other statements, concerns, or matters that are not historical facts are “forward-looking statements,” as that term is defined under the federal securities laws. These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or similar expressions, as well as statements in the future tense, and can be impacted by numerous factors, including the fact that a significant portion of Delek Logistics' revenue is derived from Delek US, thereby subjecting us to Delek US' business risks; risks relating to the securities markets generally; risks and costs relating to the age and operational hazards of our assets including, without limitation, costs, penalties, regulatory or legal actions and other effects related to releases, spills and other hazards inherent in transporting and storing crude oil and intermediate and finished petroleum products; the impact of adverse market conditions affecting the utilization of Delek Logistics' assets and business performance, including margins generated by its wholesale fuel business; risks and uncertainties with respect to the possible benefits of the H2O Midstream and Gravity Water Midstream transactions, as well as from integration post-closing; uncertainties regarding future decisions by OPEC regarding production and pricing disputes between OPEC members and Russia; an inability of Delek US to grow as expected as it relates to our potential future growth opportunities, including dropdowns, and other potential benefits; projected capital expenditures, scheduled turnaround activity; the results of our investments in joint ventures; adverse changes in laws including with respect to tax and regulatory matters; and other risks as disclosed in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports and filings with the United States Securities and Exchange Commission. Forward-looking statements include, but are not limited to, statements regarding future growth at Delek Logistics; distributions and the amounts and timing thereof; potential dropdown inventory; projected benefits of the Delaware Gathering, H2O Midstream and Gravity Water Midstream acquisitions; expected earnings or returns from joint ventures or other acquisitions; expansion projects; ability to create long-term value for our unit holders; financial flexibility and borrowing capacity; and distribution growth. Forward-looking statements should not be read as a guarantee of future performance or results and will not be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management's good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Delek Logistics undertakes no obligation to update or revise any such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof, except as required by applicable law or regulation.

Sales-Type Leases

During the third quarter of 2024, Delek Logistics and Delek US renewed and amended certain commercial agreements. These amendments required the embedded leases within these agreements to be reassessed under Accounting Standards Codification 842, Leases. As a result of these amendments, certain of these agreements met the criteria to be accounted for as sales-type leases. Therefore, portions of our payments received for minimum volume commitments under agreements subject to sales-type lease accounting are recorded as interest income with the remaining amounts recorded as a reduction in net investment in leases. Prior to the amendments, these agreements were accounted for as operating leases and these minimum volume commitments were recorded as revenues.

Non-GAAP Disclosures:

Our management uses certain "non-GAAP" operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our financial information presented in accordance with United States ("U.S.") Generally Accepted Accounting Principles ("GAAP"). These financial and operational non-GAAP measures are important factors in assessing our operating results and profitability and include:

• Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income before interest, income taxes, depreciation and amortization, including amortization of customer contract intangible assets, which is included as a component of net revenues.
• Adjusted EBITDA - EBITDA adjusted for (i) significant, infrequently occurring transaction costs and (ii) throughput and storage fees associated with the lease component of commercial agreements subject to sales-type lease accounting.
• Distributable cash flow - calculated as net cash flow from operating activities adjusted for changes in assets and liabilities, maintenance capital expenditures net of reimbursements, sales-type lease receipts, net of income recognized and other adjustments not expected to settle in cash.
• Distributable cash flow, as adjusted -calculated as distributable cash flow adjusted to exclude significant, infrequently occurring transaction costs.

Our EBITDA, Adjusted EBITDA, distributable cash flow and distributable cash flow, as adjusted measures are non-GAAP supplemental financial measures that management and external users of our consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

• Delek Logistics' operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA and Adjusted EBITDA, financing methods;
• the ability of our assets to generate sufficient cash flow to make distributions to our unitholders on a current and on-going basis;
• Delek Logistics' ability to incur and service debt and fund capital expenditures; and
• the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

We believe that the presentation of these non-GAAP measures provide information useful to investors in assessing our financial condition and results of operations and assists in evaluating our ongoing operating performance and liquidity for current and comparative periods. Non-GAAP measures should not be considered alternatives to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Non-GAAP measures have important limitations as analytical tools, because they exclude some, but not all, items that affect net earnings, net cash provided by operating activities and operating income. These measures should not be considered substitutes for their most directly comparable U.S. GAAP financial measures. Additionally, because EBITDA, Adjusted EBITDA, distributable cash flow and distributable cash flow, as adjusted may be defined differently by other partnerships in our industry, our definitions may not be comparable to similarly titled measures of other partnerships, thereby diminishing their utility. See the accompanying tables in this earnings release for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures. However, due to the inherent difficulty and impracticability of estimating certain amounts required by U.S. GAAP with a reasonable degree of certainty at this time without unreasonable effort and imprecision, we have not provided a reconciliation of forward-looking Adjusted EBITDA guidance.

Delek Logistics Partners, LP
Consolidated Balance Sheets (Unaudited)
(In thousands, except unit data)
	December 31, 2024				December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	5,384			$	3,755
Accounts receivable		54,725				41,131
Accounts receivable from related parties		33,313				28,443
Lease receivable - affiliate		22,783				—
Inventory		5,427				2,264
Other current assets		24,260				676
Total current assets		145,892				76,269
Property, plant and equipment:
Property, plant and equipment		1,375,391				1,320,510
Less: accumulated depreciation		(311,070	)			(384,359	)
Property, plant and equipment, net		1,064,321				936,151
Equity method investments		317,152				241,337
Customer relationship intangibles, net		186,911				181,336
Marketing contract intangible, net		—				102,155
Other intangibles, net		94,547				59,536
Goodwill		12,203				12,203
Operating lease right-of-use assets		16,654				19,043
Net lease investment - affiliate		193,126				—
Other non-current assets		10,753				14,216
Total assets	$	2,041,559			$	1,642,246
LIABILITIES AND DEFICIT
Current liabilities:
Accounts payable	$	41,380			$	26,290
Current portion of long-term debt		—				30,000
Interest payable		30,665				5,805
Excise and other taxes payable		6,764				10,321
Current portion of operating lease liabilities		5,340				6,697
Accrued expenses and other current liabilities		4,629				11,477
Total current liabilities		88,778				90,590
Non-current liabilities:
Long-term debt, net of current portion		1,875,397				1,673,789
Operating lease liabilities, net of current portion		6,004				8,335
Asset retirement obligations		15,639				10,038
Other non-current liabilities		20,213				21,363
Total non-current liabilities		1,917,253				1,713,525
Total liabilities		2,006,031				1,804,115
Equity (Deficit):
Common unitholders - public; 17,374,618 units issued and outstanding at December 31, 2024 (9,299,763 at December 31, 2023)		440,957				160,402
Common unitholders - Delek Holdings; 34,111,278 units issued and outstanding at December 31, 2024 (34,311,278 at December 31, 2023)		(405,429	)			(322,271	)
Total equity (deficit)		35,528				(161,869	)
Total liabilities and equity (deficit)	$	2,041,559			$	1,642,246

Delek Logistics Partners, LP
Consolidated Statement of Income and Comprehensive Income (Unaudited)
(In thousands, except unit and per unit data)
	Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Net revenues:
Affiliate	$	106,430			$	149,400			$	517,782			$	563,803
Third party		103,433				104,749				422,854				456,606
Net revenues		209,863				254,149				940,636				1,020,409
Cost of sales:
Cost of materials and other - affiliate		69,359				98,071				349,321				396,333
Cost of materials and other - third party		35,114				29,707				134,414				136,294
Operating expenses (excluding depreciation and amortization presented below)		33,125				30,380				122,020				115,682
Depreciation and amortization		23,253				21,642				91,135				87,136
Total cost of sales		160,851				179,800				696,890				735,445
Operating expenses related to wholesale business (excluding depreciation and amortization presented below)		145				1,022				714				2,419
General and administrative expenses		9,320				5,100				35,944				24,766
Depreciation and amortization		1,216				1,325				5,240				5,248
Impairment of goodwill		—				14,848				—				14,848
Other operating expense (income), net		316				(462	)			(978	)			(1,266	)
Total operating costs and expenses		171,848				201,633				737,810				781,460
Operating income		38,015				52,516				202,826				238,949
Interest income		(24,294	)			—				(47,792	)			—
Interest expense		38,413				38,663				150,960				143,244
Income from equity method investments		(11,327	)			(8,536	)			(43,301	)			(31,433	)
Other income, net		(28	)			(279	)			(205	)			(303	)
Total non-operating expenses, net		2,764				29,848				59,662				111,508
Income before income tax expense		35,251				22,668				143,164				127,441
Income tax (benefit) expense		(54	)			520				479				1,205
Net income		35,305				22,148				142,685				126,236
Comprehensive income		35,305				22,148				142,685				126,236
Less: Preferred unitholder's interest in net income		768				—				768				—
Net income attributable to limited partners	$	34,537			$	22,148			$	141,917			$	126,236
Net income per limited partner unit:
Basic	$	0.68			$	0.51			$	2.99			$	2.90
Diluted	$	0.68			$	0.51			$	2.99			$	2.89
Weighted average limited partner units outstanding:
Basic		51,038,367				43,599,670				47,452,138				43,583,938
Diluted		51,068,930				43,625,012				47,479,248				43,611,314

Delek Logistics Partners, LP
Condensed Consolidated Statements of Cash Flows (In thousands)	Three Months Ended December 31,								Year Ended December 31,
(Unaudited)		2024				2023				2024				2023
Cash flows from operating activities
Net cash provided by operating activities	$	49,898			$	114,689			$	206,339			$	225,319
Cash flows from investing activities
Net cash used in investing activities		(70,051	)			(33,995	)			(384,579	)			(89,629	)
Cash flows from financing activities
Net cash provided by (used in) financing activities		18,220				(81,121	)			179,869				(139,905	)
Net (decrease) increase in cash and cash equivalents		(1,933	)			(427	)			1,629				(4,215	)
Cash and cash equivalents at the beginning of the period		7,317				4,182				3,755				7,970
Cash and cash equivalents at the end of the period	$	5,384			$	3,755			$	5,384			$	3,755

Delek Logistics Partners, LP
Reconciliation of Amounts Reported Under U.S. GAAP (Unaudited)
(In thousands)
	Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
Reconciliation of Net Income to EBITDA:
Net income	$	35,305			$	22,148			$	142,685			$	126,236
Add:
Income tax (benefit) expense		(54	)			520				479				1,205
Depreciation and amortization		24,469				22,967				96,375				92,384
Amortization of marketing contract intangible		—				1,803				4,206				7,211
Interest expense, net		14,119				38,663				103,168				143,244
EBITDA		73,839				86,101				346,913				370,280
Impairment of goodwill		—				14,848				—				14,848
Throughput and storage fees for sales-type leases		30,663				—				59,635				—
Transaction costs		2,740				—				11,416				—
Adjusted EBITDA	$	107,242			$	100,949			$	417,964			$	385,128
Reconciliation of net cash from operating activities to distributable cash flow:
Net cash provided by operating activities	$	49,898			$	114,689			$	206,339			$	225,319
Changes in assets and liabilities		17,601				(51,894	)			48,769				29,474
Non-cash lease expense		(2,423	)			(2,142	)			(8,112	)			(9,549	)
Distributions from equity method investments in investing activities		900				4,525				4,277				9,002
Regulatory and sustaining capital expenditures not distributable		(4,976	)			(1,348	)			(12,658	)			(7,272	)
Reimbursement from Delek Holdings for capital expenditures		53				338				335				1,280
Sales-type lease receipts, net of income recognized		6,369				—				11,843				—
Accretion		(356	)			(176	)			(920	)			(705	)
Deferred income taxes		(28	)			115				(479	)			(638	)
(Loss) gain on disposal of assets		(317	)			462				6,410				1,266
Distributable Cash Flow		66,721				64,569				255,804				248,177
Transaction costs		2,740				—				11,416				—
Distributable Cash Flow, as adjusted (1)	$	69,461			$	64,569			$	267,220			$	248,177
(1) Distributable cash flow adjusted to exclude transaction costs associated with the H2O Midstream Acquisition.

Delek Logistics Partners, LP
Distributable Coverage Ratio Calculation (Unaudited)
(In thousands)
	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Distributions to partners of Delek Logistics, LP	$	59,303		$	46,010		$	217,699		$	181,344
Distributable cash flow	$	66,721		$	64,569		$	255,804		$	248,177
Distributable cash flow coverage ratio (1)	1.13x			1.40x			1.18x			1.37x
Distributable cash flow, as adjusted		69,461			64,569			267,220			248,177
Distributable cash flow coverage ratio, as adjusted (2)	1.17x			1.40x			1.23x			1.37x

(1)		Distributable cash flow coverage ratio is calculated by dividing distributable cash flow by distributions to be paid in each respective period.
(2)		Distributable cash flow coverage ratio, as adjusted is calculated by dividing distributable cash flow, as adjusted for transaction costs by distributions to be paid in each respective period.

Delek Logistics Partners, LP
Segment Data (Unaudited)
(In thousands)

		Three Months Ended December 31, 2024
		Gathering and Processing				Wholesale Marketing and Terminalling				Storage and Transportation				Investments in Pipeline Joint Ventures			Corporate and Other				Consolidated
Net revenues:
Affiliate		$	36,771			$	46,040			$	23,619			$	—		$	—			$	106,430
Third party			57,895				43,674				1,864				—			—				103,433
Total revenue		$	94,666			$	89,714			$	25,483			$	—		$	—			$	209,863
Adjusted EBITDA		$	65,960			$	21,161			$	17,798			$	11,327		$	(9,004	)		$	107,242
Transaction costs			—				—				—				—			2,740				2,740
Throughput and storage fees for sales-type leases			13,629				5,156				11,878				—			—				30,663
Segment EBITDA		$	52,331			$	16,005			$	5,920			$	11,327		$	(11,744	)		$	73,839
Depreciation and amortization			23,504				(887	)			1,094				—			758				24,469
Amortization of customer contract intangible			—				—				—				—			—				—
Interest income			(11,779	)			(4,839	)			(7,676	)			—			—				(24,294	)
Interest expense			—				—				—				—			38,413				38,413
Income tax benefit																						(54	)
Net income																					$	35,305
Capital spending		$	44,767			$	1,504			$	3,165			$	—		$	—			$	49,436

		Three Months Ended December 31, 2023
		Gathering and Processing			Wholesale Marketing and Terminalling				Storage and Transportation			Investments in Pipeline Joint Ventures			Corporate and Other				Consolidated
Net revenues:
Affiliate		$	55,175		$	62,560			$	31,665		$	—		$	—			$	149,400
Third party			35,441			64,895				4,413			—			—				104,749
Total revenue		$	90,616		$	127,455			$	36,078		$	—		$	—			$	254,149
Adjusted EBITDA		$	53,297		$	28,441			$	17,534		$	8,535		$	(6,858	)		$	100,949
Impairment of Goodwill			14,848			—				—			—			—				14,848
Segment EBITDA		$	38,449		$	28,441			$	17,534		$	8,535		$	(6,858	)			86,101
Depreciation and amortization			17,670			1,717				2,730			—			850				22,967
Amortization of customer contract intangible			—			1,803				—			—			—				1,803
Interest expense			—			—				—			—			38,663				38,663
Income tax expense																				520
Net income																			$	22,148
Capital spending		$	12,515		$	(416	)		$	615		$	—		$	—			$	12,714

		Year Ended December 31, 2024
		Gathering and Processing				Wholesale Marketing and Terminalling				Storage and Transportation				Investments in Pipeline Joint Ventures			Corporate and Other				Consolidated
Net revenues:
Affiliate		$	180,763			$	221,503			$	115,516			$	—		$	—			$	517,782
Third party			183,956				230,019				8,879				—			—				422,854
Total revenue		$	364,719			$	451,522			$	124,395			$	—		$	—			$	940,636
Adjusted EBITDA		$	233,423			$	101,335			$	72,081			$	43,301		$	(32,176	)		$	417,964
Transaction costs			—				—				—				—			11,416				11,416
Throughput and storage fees for sales-type leases			26,273				9,606				23,756				—			—				59,635
Segment EBITDA		$	207,150			$	91,729			$	48,325			$	43,301		$	(43,592	)			346,913
Depreciation and amortization			80,144				5,256				7,609				—			3,366				96,375
Amortization of customer contract intangible			—				4,206				—				—			—				4,206
Interest income			(23,338	)			(8,546	)			(15,908	)			—			—				(47,792	)
Interest expense			—				—				—				—			150,960				150,960
Income tax expense																						479
Net income																					$	142,685
Capital spending		$	128,927			$	2,727			$	8,332			$	—		$	—			$	139,986

		Year Ended December 31, 2023
		Gathering and Processing			Wholesale Marketing and Terminalling			Storage and Transportation			Investments in Pipeline Joint Ventures			Corporate and Other				Consolidated
Net revenues:
Affiliate		$	212,537		$	218,997		$	132,269		$	—		$	—			$	563,803
Third party			158,573			286,704			11,329			—			—				456,606
Total revenue		$	371,110		$	505,701		$	143,598		$	—		$	—			$	1,020,409
Adjusted EBITDA		$	214,311		$	106,512		$	63,850		$	31,424		$	(30,969	)		$	385,128
Impairment of goodwill			14,848			—			—			—			—				14,848
Segment EBITDA		$	199,463		$	106,512		$	63,850		$	31,424		$	(30,969	)			370,280
Depreciation and amortization			72,181			7,055			9,839			—			3,309				92,384
Amortization of customer contract intangible			—			7,211			—			—			—				7,211
Interest expense			—			—			—			—			143,244				143,244
Income tax expense																			1,205
Net income																		$	126,236
Capital spending		$	74,683		$	2,111		$	4,548		$	—		$	—			$	81,342

Delek Logistics Partners, LP
Segment Capital Spending
(In thousands)
	Three Months Ended December 31,							Year Ended December 31,
Gathering and Processing		2024			2023				2024			2023
Regulatory capital spending	$	—		$	—			$	—		$	31
Sustaining capital spending		307			1,036				1,599			2,016
Growth capital spending (1)		44,460			11,479				127,328			72,636
Segment capital spending		44,767			12,515				128,927			74,683
Wholesale Marketing and Terminalling
Regulatory capital spending		385			553				791			924
Sustaining capital spending		1,119			(591	)			1,936			163
Growth capital spending		—			(378	)			—			1,024
Segment capital spending		1,504			(416	)			2,727			2,111
Storage and Transportation
Regulatory capital spending		467			335				1,155			2,005
Sustaining capital spending		2,698			280				7,177			2,543
Growth capital spending		—			—				—			—
Segment capital spending		3,165			615				8,332			4,548
Consolidated
Regulatory capital spending		852			888				1,946			2,960
Sustaining capital spending		4,124			725				10,712			4,722
Growth capital spending (1)		44,460			11,101				127,328			73,660
Total capital spending	$	49,436		$	12,714			$	139,986		$	81,342
(1) 2024 includes $95.5 million of capital spending related to the new gas processing plant.

Delek Logistics Partners, LP
Segment Operating Data (Unaudited)
	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Gathering and Processing Segment:
Throughputs (average bpd)
El Dorado Assets:
Crude pipelines (non-gathered)		64,920			73,438			69,903			67,003
Refined products pipelines to Enterprise Systems		57,513			68,552			59,136			58,181
El Dorado Gathering System		13,883			13,329			11,568			13,782
East Texas Crude Logistics System		35,046			40,798			34,711			32,668
Midland Gathering System		200,705			229,179			217,847			230,471
Plains Connection System		360,725			254,224			333,405			250,140
Delaware Gathering Assets:
Natural Gas Gathering and Processing (Mcfd(1))		71,078			67,292			74,831			71,239
Crude Oil Gathering (average bpd)		123,346			112,522			123,978			111,335
Water Disposal and Recycling (average bpd)		144,414			95,175			128,539			108,907
Midland Water Gathering System:
Water Disposal and Recycling (average bpd) (2)		274,361			—			280,955			—
Wholesale Marketing and Terminalling Segment:
East Texas - Tyler Refinery sales volumes (average bpd) (3)		63,022			68,735			67,682			60,626
Big Spring marketing throughputs (average bpd)		—			76,408			44,999			77,897
West Texas marketing throughputs (average bpd)		7,472			10,511			5,828			10,032
West Texas gross margin per barrel	$	4.35		$	4.73		$	3.18		$	5.18
Terminalling throughputs (average bpd) (4)		151,309			105,933			154,217			113,803

(1)		Mcfd - average thousand cubic feet per day.
(2)		2024 volumes include volumes from September 11, 2024 through December 31, 2024.
(3)		Excludes jet fuel and petroleum coke.
(4)		Consists of terminalling throughputs at our Tyler, Big Spring, Big Sandy and Mount Pleasant, Texas, El Dorado and North Little Rock, Arkansas and Memphis and Nashville, Tennessee terminals.

Information about Delek Logistics Partners, LP can be found on its website (www.deleklogistics.com), investor relations webpage (https://www.deleklogistics.com/investor-relations), news webpage (https://www.deleklogistics.com/news-releases) and its X account (@DelekLogistics).

View source version on businesswire.com: https://www.businesswire.com/news/home/20250225148826/en/

Investor Relations and Media/Public Affairs Contact:

investor.relations@delekus.com

Source: Delek Logistics Partners, LP

FAQ

What was Delek Logistics' (DKL) Adjusted EBITDA for Q4 2024?

Delek Logistics reported record Adjusted EBITDA of $107.2 million for Q4 2024, representing a 6% increase compared to Q4 2023.

How much is Delek Logistics' (DKL) quarterly distribution for Q4 2024?

Delek Logistics declared a quarterly cash distribution of $1.105 per common partner unit for Q4 2024, representing a 4.7% increase over Q4 2023.

What is the size of DKL's buyback authorization announced in 2025?

Delek Logistics announced a $150 million buyback authorization of Delek US-owned common units in early 2025.

What is Delek Logistics' (DKL) Adjusted EBITDA guidance for 2025?

Delek Logistics announced full-year Adjusted EBITDA guidance of $480 to $520 million for 2025.

What was Delek Logistics' (DKL) debt level and leverage ratio as of December 31, 2024?

As of December 31, 2024, Delek Logistics had total debt of approximately $1.88 billion and a leverage ratio of approximately 4.06x.

What percentage of Delek Logistics' (DKL) EBITDA comes from third-party contributions?

Following recent acquisitions, Delek Logistics' third-party EBITDA contribution reached approximately 70% on a pro-forma basis.

What major acquisitions did Delek Logistics (DKL) complete in 2024 and early 2025?

Delek Logistics completed the acquisition of Delek US' interest in the Wink to Webster pipeline and H2O Midstream in 2024, followed by the Gravity Water Midstream acquisition in January 2025.