Delek Logistics Partners Lp Stock Price, News & Analysis

Delek Logistics Partners, LP (NYSE: DKL) is a midstream energy master limited partnership that owns and operates logistics and infrastructure assets serving the crude oil, natural gas, intermediate, refined products and water markets. The partnership is headquartered in Brentwood, Tennessee and its common units representing limited partner interests trade on the New York Stock Exchange under the symbol DKL.

According to its public disclosures, Delek Logistics operates through 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. Through these assets, the partnership provides gathering, pipeline and other transportation services for crude oil and natural gas customers, as well as storage, wholesale marketing and terminalling services for intermediate and refined product customers. It also provides water disposal and recycling services.

The partnership’s operations are commonly discussed in four segments: gathering and processing; wholesale marketing and terminalling; storage and transportation; and investments in pipeline joint ventures. The gathering and processing segment includes crude oil and natural gas gathering systems and gas processing facilities. The wholesale marketing and terminalling segment includes refined product and intermediate product marketing activities and terminalling services. The storage and transportation segment includes tankage and pipeline transportation assets. The investments in pipeline joint ventures segment reflects equity interests in pipeline entities accounted for under the equity method.

Delek Logistics has described its business as focused on owning and operating midstream energy infrastructure assets. Its assets and joint ventures support crude oil and natural gas producers, as well as intermediate and refined product customers, particularly in the Midland and Delaware portions of the Permian Basin and in select Gulf Coast markets. Public statements highlight gathering, pipeline and other transportation services, storage, wholesale marketing, terminalling, and water disposal and recycling as key service areas.

Delek US Holdings, Inc. ("Delek US") owns the general partner interest in Delek Logistics and holds a majority limited partner interest. Delek US is also described as a significant customer of the partnership. This relationship links Delek Logistics’ midstream operations with Delek US’s downstream refining and logistics activities, with Delek Logistics providing marketing services for refined products output from Delek US refineries and engaging in wholesale activity at its own and third-party terminals, as described in prior company summaries.

In its wholesale marketing and terminalling activities, Delek Logistics has been described as providing marketing services for refined products output of Delek US refineries, engaging in wholesale activity at its terminals and at terminals owned by third parties, and providing terminalling services at refined products terminals to independent third parties and Delek US. The partnership’s disclosures also note that it participates in pipeline joint ventures, which contribute income accounted for under the equity method.

Delek Logistics has communicated that its gathering and processing segment benefits from acquisitions such as Gravity and H2O Midstream and from dropdown transactions like the Delek Permian Gathering purchasing and blending business (the "DPG Dropdown"). These transactions have added to its crude oil and water gathering operations and its purchasing and blending activities associated with its Midland Gathering System. The partnership has also discussed development of additional capabilities such as sour gas gathering and acid gas injection at the Libby Gas Complex and the completion of the Libby 2 gas processing plant to expand processing capacity for producer customers in Lea County, New Mexico.

As a publicly traded partnership, Delek Logistics regularly reports non-GAAP financial measures such as EBITDA, Adjusted EBITDA, distributable cash flow and distributable cash flow, as adjusted. Management describes these measures as tools used by the partnership and external users to assess operating performance, the ability of assets to generate cash flow to support distributions, the capacity to incur and service debt and fund capital expenditures, and the viability and returns of acquisitions and other capital projects. These measures are presented as supplements to financial information prepared in accordance with U.S. GAAP and are reconciled to the most directly comparable GAAP measures in the partnership’s earnings materials.

Delek Logistics has also disclosed capital markets activity, including the issuance of 7.375% senior notes due 2033 under an indenture entered into on June 30, 2025. These notes are described as general unsecured senior obligations of the partnership and a wholly owned finance subsidiary, guaranteed on a senior unsecured basis by certain subsidiaries. The indenture includes covenants that limit, among other things, the incurrence of additional indebtedness, creation of liens, certain distributions and investments, asset sales, and transactions with affiliates, and it sets out events of default and redemption provisions.

The partnership’s common units are registered under Section 12(b) of the Securities Exchange Act of 1934 and listed on the NYSE. Delek Logistics has a history of declaring quarterly cash distributions on its common limited partner units, and recent public announcements describe a series of consecutive quarterly distribution increases. The partnership has also highlighted its liquidity position, including borrowing capacity under a third-party revolving credit facility, and has noted that debt offerings, such as the 2033 notes, are intended to support its growth efforts.

Business Segments and Services

Gathering and Processing: This segment includes crude oil and natural gas gathering systems and gas processing facilities. Public disclosures note record crude gathering volumes in the Delaware crude gathering system and reference projects such as crude and water gathering expansions and the Libby 2 gas processing plant, as well as development of sour gas gathering and acid gas injection capabilities at the Libby Complex.

Wholesale Marketing and Terminalling: In this segment, Delek Logistics provides marketing services for refined products output from Delek US refineries, engages in wholesale activity at its own and third-party terminals, and provides terminalling services to independent third parties and Delek US. The partnership has discussed changes such as the assignment of a refinery marketing agreement to Delek US and the impact of wholesale margins on segment results.

Storage and Transportation: This segment encompasses storage and pipeline transportation assets that support the movement and storage of crude oil, intermediates and refined products. Segment results are reported as part of the partnership’s consolidated operating results.

Investments in Pipeline Joint Ventures: Delek Logistics holds equity method investments in pipeline joint ventures. Income from these investments is reported as equity method investment income and has been described as influenced by transactions such as the W2W dropdown.

Relationship with Delek US Holdings

Delek US owns the general partner interest and a majority limited partner interest in Delek Logistics and is described as a significant customer. Delek US also reports a logistics segment that includes Delek Logistics, and its public filings and press releases reference Delek Logistics’ Adjusted EBITDA and capital projects, such as the Libby 2 gas processing plant and acid gas injection initiatives, as part of Delek US’s broader enterprise optimization and midstream strategies.

Capital Structure and Exchange Listing

Delek Logistics’ common units are listed on the New York Stock Exchange under the symbol DKL. The partnership has entered into an indenture covering 7.375% senior notes due 2033, which are general unsecured senior obligations with guarantees from certain subsidiaries. The notes include interest payment terms, optional redemption provisions, change of control repurchase rights and covenants addressing indebtedness, liens, distributions, investments, mergers, asset sales and affiliate transactions.

Use of Non-GAAP Measures

In its earnings materials, Delek Logistics explains that it uses non-GAAP measures such as EBITDA, Adjusted EBITDA, distributable cash flow and distributable cash flow, as adjusted to evaluate operating performance and liquidity. These measures are described as useful to management and external users, including industry analysts, investors, lenders and rating agencies, for comparing performance to other publicly traded partnerships in the midstream energy industry, assessing the ability of assets to generate cash flow to support distributions, evaluating debt service capacity and funding for capital expenditures, and analyzing the viability and returns of acquisitions and capital projects.

Regulatory Reporting

As a public partnership, Delek Logistics files reports with the U.S. Securities and Exchange Commission, including current reports on Form 8-K. Recent 8-K filings have covered quarterly financial results, declarations of quarterly distributions, and material definitive agreements such as the indenture governing the 7.375% senior notes due 2033. These filings also confirm that the partnership’s common units are registered and listed on the New York Stock Exchange.