Delek Logistics Hits Record Highs, Charts Independent Course for 2026

By Stephanie Kelly

BRENTWOOD, TN – February 27, 2026 – Delek Logistics Partners, LP (NYSE: DKL) capped off a transformative year by announcing record-setting financial results for the fourth quarter and full-year 2025, signaling strong momentum as it heads into 2026 with ambitious growth plans and a greater degree of independence from its parent sponsor.

The midstream energy partnership reported significant gains across its crude, gas, and water businesses, bolstered by strategic acquisitions and the successful launch of key infrastructure projects in the prolific Permian and Delaware Basins.

“Delek Logistics delivered another record year, driven by strong execution across our crude, gas, and water businesses and the continued dedication of our team,” said Avigal Soreq, President of Delek Logistics’ general partner, in the company's official announcement. Soreq described 2025 as a “pivotal year,” highlighting major milestones that have fundamentally reshaped the company's operational and economic structure.

A Year of Record-Breaking Financials

Delek Logistics' fourth-quarter performance underscored a year of robust financial health. The company posted a net income of $47.3 million, or $0.88 per diluted common limited partner unit, a substantial 34% increase from the $35.3 million, or $0.68 per unit, reported in the fourth quarter of 2024.

Adjusted EBITDA, a key metric of operational profitability that strips out interest, taxes, depreciation, and amortization, reached a record $142.3 million for the quarter, up 24.5% from $114.3 million in the prior-year period. For the full year, Adjusted EBITDA climbed to an impressive $535.6 million, demonstrating sustained growth.

This strong performance translated directly into returns for investors. The company declared its 52nd consecutive quarterly distribution, raising it to $1.125 per unit. This marks 13 straight years of distribution growth, a rare feat in the volatile energy sector. The company's distributable cash flow (DCF), as adjusted, was $73.3 million for the quarter, resulting in a healthy coverage ratio of 1.22x, indicating it generated more than enough cash to cover its payments to unitholders with a comfortable margin.

Strategic Assets Fueling Growth

The impressive financial results were not accidental but the direct outcome of a deliberate strategy focused on expansion and service integration in America's most active energy plays. The successful startup of the Libby 2 gas plant was a cornerstone of this strategy. The new facility expands the Libby Complex's capacity and enhances its capabilities for acid gas injection and sour gas handling—a critical and specialized service for processing natural gas with high sulfur content, which is increasingly common in the Delaware Basin.

This technical expertise is central to DKL’s 'Full-Suite' strategy, which aims to provide a comprehensive range of midstream services to producers. This integrated approach was further strengthened by the acquisition of Gravity Water Midstream in 2025. This purchase, combined with the late-2024 acquisition of H2O Midstream, significantly expanded Delek Logistics' water disposal and recycling operations, a crucial component of modern oil and gas production. These acquisitions were primary drivers of the Gathering and Processing segment's Adjusted EBITDA growth, which rose to $70.9 million in the fourth quarter.

These strategic moves have solidified the company's position as a premier, full-service provider in the Permian Basin, leading to tangible results such as record crude gathering volumes in its Delaware Basin operations during the year.

Charting a Course for Independence

Perhaps the most significant long-term development in 2025 was the company's “economic separation” from its sponsor, Delek US Holdings, Inc. (DK). Through a series of strategic intercompany agreements, including the Delek Permian Gathering Dropdown, Delek Logistics has moved to diversify its customer base and reduce its reliance on its parent company for revenue.

This shift is a clear sign of maturation. While Delek US remains its general partner and a majority unitholder, the partnership's financial health is becoming increasingly self-sufficient. This is reflected in the company's 2026 guidance, which projects that more than 80% of its EBITDA will be generated from third-party customers. This diversification mitigates risk and positions Delek Logistics to compete more broadly in the open market.

An Optimistic Outlook for 2026

Building on its 2025 successes, Delek Logistics has issued confident guidance for the year ahead. The company projects its 2026 EBITDA to be between $520 million and $560 million. This forecast already accounts for an anticipated negative impact of approximately $10 million in the first quarter due to operational disruptions from Winter Storm Fern, demonstrating a transparent approach to its projections.

“Looking ahead to 2026, we are increasingly optimistic about the opportunities in front of us, driven by the continued advancement of our integrated acid gas injection and sour gas treating solution at the Libby Complex,” Soreq stated. He emphasized that this industry-leading solution will be a key driver for “multi-year growth in the Delaware Basin.”

As of the end of 2025, the company maintained a solid financial footing with total debt of approximately $2.3 billion and a leverage ratio of 4.07x. With nearly $0.9 billion in available borrowing capacity, Delek Logistics has the financial flexibility to continue pursuing its growth objectives. With a clear strategy focused on specialized services and increasing autonomy, Delek Logistics appears poised to navigate the year ahead while continuing its long-standing commitment to unitholder value.