Investing Delek Logistics' 13-Year Distribution Streak Meets a Cash Flow Reality Check - 24/7 Wall St. S&P 5006,614.60 +0.35% Dow Jones46,490.80 +0.46% Nasdaq 10024,269.70 +0.18% Russell 20002,536.80 +1.67% FTSE 10010,014.40 +0.57% Nikkei 22553,363.00 +0.15% Delek Logistics' 13-Year Distribution Streak Meets a Cash Flow Reality Check By David BerenPublished Mar 24, 4:42PM EDT Quick Read Delek Logistics Partners (DKL) achieved 52 consecutive quarterly distribution increases over 13 years with an 8.5% yield, ...

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential and diversification opportunities [1] Investment Focus - The company has diversified its investments across various sectors including banking, telecommunications, logistics, and hotels, indicating a strategic approach to portfolio management [1] - The entry into the US market in 2020 reflects a growing interest in international investment opportunities, particularly in sectors like banks, hotels, and shipping [1] Market Trends - The popularity of insurance companies in the Philippines since 2014 suggests a shift in investment preferences among local investors, moving towards more diversified financial products [1] - The trend of using platforms like Seeking Alpha for analysis indicates a growing reliance on data-driven insights for investment decisions in both the ASEAN and US markets [1]

Group 1 - Delek Logistics Partners, LP has made its 2025 K-1 tax packages available on a third-party provider's website, with printing and mailing currently underway [1] - The company is a midstream energy master limited partnership based in Brentwood, Tennessee, providing various services including gathering, pipeline, transportation, and storage primarily in the Permian Basin and Gulf Coast region [1][1] - Delek US Holdings, Inc. owns the general partner interest and a majority limited partner interest in Delek Logistics Partners, LP, and is also a significant customer [1] Group 2 - Delek Logistics Partners, LP filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, with the U.S. Securities and Exchange Commission on February 27, 2026 [1] - The company reported record financial results for the fourth quarter of 2025, driven by strong performance across its crude, gas, and water businesses [1] - A conference call to discuss the fourth quarter 2025 results is scheduled for February 27, 2026, at 11:30 a.m. CT [1]

Core Viewpoint - Delek Logistics Partners, LP has filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, highlighting strong performance and operational achievements in the midstream energy sector [1]. Financial Performance - Delek Logistics reported record financial results for the fourth quarter of 2025, driven by robust execution across its crude, gas, and water businesses [1]. - The company declared a quarterly cash distribution of $1.125 per common limited partner unit for the fourth quarter of 2025, translating to an annualized distribution of $4.50 per unit [1]. Operational Highlights - The successful startup of the Libby 2 gas plant was a significant milestone for Delek Logistics in 2025, marking a pivotal year for the company [1]. - The company operates primarily in the Permian Basin and Gulf Coast region, providing various services including gathering, pipeline transportation, and storage [1]. Investor Relations - The Annual Report on Form 10-K can be accessed on the company's website, and limited partners can request a printed copy free of charge [1].

Financial Data and Key Metrics Changes - Delek Logistics achieved a record Adjusted EBITDA of $536 million for 2025, reflecting strong execution across its businesses and the addition of high-quality acquisitions [3] - Adjusted EBITDA for Q4 was approximately $142 million, up from $114 million in the same period last year, and $6 million higher than the previous record set in Q3 [11] - Distributable cash flow (DCF) as adjusted totaled $73 million, with a DCF coverage ratio of approximately 1.22x [11] Business Line Data and Key Metrics Changes - In the Gathering and Processing segment, Adjusted EBITDA for Q4 was $71 million compared to $66 million in Q4 2024, primarily due to the acquisitions of H2O and Gravity [12] - Storage and transportation Adjusted EBITDA increased to $35 million from $18 million in Q4 2024, reflecting the sale of certain assets to DK [12] - The investments in pipeline joint ventures contributed $26 million in Q4, up from $18 million in the same quarter last year [12] Market Data and Key Metrics Changes - Approximately 80% of the run rate EBITDA in 2026 is expected to come from third parties, indicating increased economic separation from the sponsor, DK [7] - The company is focusing on the Delaware Basin, where the need for sour gas solutions is urgent, and anticipates a step change in utilization once the sour gas gathering infrastructure is complete [8] Company Strategy and Development Direction - Delek Logistics aims to be a premier full-service provider in the Permian Basin, focusing on natural gas, crude, and water businesses [3] - The company announced a 2026 EBITDA guidance range of $520 million to $560 million, reflecting growth opportunities while managing leverage and coverage [5] - The integration of H2O and Gravity has strengthened the company's competitive position and growth platform [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth and long-term value for unit holders, supported by a strong financial position with approximately $940 million in available liquidity [11] - The management highlighted the importance of optimizing synergies and executing strategic priorities to capture the value of recent investments [10] Other Important Information - The Board of Directors approved the 52nd consecutive quarterly distribution increase, raising the distribution to $1.125 per unit, marking 13 consecutive years of distribution growth [5] - Total capital spending for Q4 was approximately $32 million, with $26 million allocated to growth capital related to sour gas capabilities at the Libby complex [13] Q&A Session Summary Question: Growth expectations for the GMT segment - Management discussed the variance in guidance and emphasized a clear strategy focused on crude, gas, and water in the Permian Basin, highlighting a return on investment of 1x-3x [16][17] Question: EBITDA impact from transactions with DK - Management noted that the transactions helped further economic separation, with 82% of EBITDA now coming from third-party businesses, and indicated that the impact on EBITDA was not material to either entity [22][23] Question: Next steps on Libby processing expansion - Management mentioned prior investments for future expansion and is closely monitoring customer activity in the area, indicating positive macro and micro conditions [28][29] Question: Thoughts on sour gas midstream M&A - Management stated that Delek Logistics remains open to acquisitions but will only pursue deals that are accretive to free cash flow and maintain financial discipline [34]

Financial Data and Key Metrics Changes - Delek Logistics achieved a record Adjusted EBITDA of $536 million for 2025, reflecting strong execution across its businesses [3] - Adjusted EBITDA for Q4 was approximately $142 million, up from $114 million in the same period last year, and $6 million higher than the previous record set in Q3 [11] - Distributable cash flow (DCF) as adjusted totaled $73 million, with a DCF coverage ratio of approximately 1.22 times [11] Business Line Data and Key Metrics Changes - In the Gathering and Processing segment, Adjusted EBITDA for Q4 was $71 million compared to $66 million in Q4 2024, primarily due to acquisitions of H2O and Gravity [12] - Storage and transportation Adjusted EBITDA increased to $35 million from $18 million in Q4 2024, driven by the sale of certain assets to DK [12] - Investments in pipeline joint ventures contributed $26 million in Q4, compared to $18 million in the same quarter last year [12] Market Data and Key Metrics Changes - Approximately 80% of the run rate EBITDA in 2026 is expected to come from third parties, indicating increased economic separation from the sponsor, DK [7] - The company is focusing on the Delaware Basin, where the demand for sour gas solutions is increasing, necessitating further processing capacity [8] Company Strategy and Development Direction - Delek Logistics aims to be a premier full-service provider in the Permian Basin, focusing on natural gas, crude, and water businesses [3] - The company announced a 2026 EBITDA guidance range of $520 million to $560 million, reflecting growth opportunities while managing leverage and coverage [5] - The integration of H2O and Gravity has strengthened the company's competitive position and growth platform [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth and long-term value for unit holders [6] - The company is optimistic about the growth potential in the Delaware gas business, which is expected to be a significant growth engine [20] - Management highlighted the importance of maintaining financial discipline while pursuing growth opportunities [10] Other Important Information - The board approved a distribution increase to $1.125 per unit, marking 13 consecutive years of distribution growth [5] - Total capital expenditures for Q4 were approximately $32 million, with $26 million allocated to growth capital [13] Q&A Session Summary Question: Growth expectations for the GMT segment - Management discussed the clear strategy in crude, gas, and water, emphasizing a return on investment of 1-3 times, which is beneficial for coverage and leverage ratios [17] Question: EBITDA impact from transactions with DK - Management noted that these transactions have furthered the economic separation of the two entities, with 82% of DKL's EBITDA now coming from third-party businesses [23] Question: Next steps on Libby processing expansion - Management indicated that they are looking at future expansions and are optimistic about the macro and micro conditions in the area [28] Question: Thoughts on sour gas midstream M&A - Management stated that they are open to acquisitions but will only pursue deals that are accretive to free cash flow and maintain their financial principles [34]

Financial Data and Key Metrics Changes - Delek Logistics achieved a record Adjusted EBITDA of $536 million for 2025, reflecting strong execution across its businesses and the addition of high-quality acquisitions [3][5] - Adjusted EBITDA for Q4 2025 was approximately $142 million, up from $114 million in Q4 2024, and $6 million higher than the previous record set in Q3 2025 [12] - Distributable cash flow (DCF) as adjusted totaled $73 million, with a DCF coverage ratio of approximately 1.22 times [12] Business Line Data and Key Metrics Changes - The Gathering and Processing segment reported Adjusted EBITDA of $71 million for Q4 2025, compared to $66 million in Q4 2024, primarily due to the acquisitions of H2O and Gravity [12][13] - Storage and transportation Adjusted EBITDA increased to $35 million in Q4 2025 from $18 million in Q4 2024, driven by the sale of certain assets to DK [13] - The investments in pipeline joint ventures contributed $26 million in Q4 2025, up from $18 million in Q4 2024, reflecting strong performance from the Wink to Webster joint venture [13] Market Data and Key Metrics Changes - Approximately 80% of the run rate EBITDA in 2026 is expected to come from third parties, indicating increased economic separation from the sponsor, DK [7][23] - The company is focusing on the Delaware Basin, where the need for sour gas solutions is urgent, and anticipates a step change in utilization once the sour gas gathering infrastructure is complete [9][21] Company Strategy and Development Direction - Delek Logistics aims to position itself as a premier full-service provider in the Permian Basin, with a focus on natural gas, crude, and water businesses [3][4] - The company announced a 2026 EBITDA guidance range of $520 million to $560 million, reflecting growth opportunities while managing leverage and coverage [5][14] - The integration of H2O and Gravity has enhanced the company's competitive position and built a strong platform for growth [4][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth and long-term value for unit holders, supported by a strong financial position with approximately $940 million in available liquidity [5][12] - The company is optimistic about the growth potential in the Delaware gas business, which is expected to be a key growth engine for years to come [21] Other Important Information - The board approved a distribution increase to $1.125 per unit, marking the 52nd consecutive quarterly distribution increase and 13 years of distribution growth [5] - Total capital expenditures for Q4 2025 were approximately $32 million, with $26 million allocated to growth capital related to sour gas capabilities at the Libby complex [14] Q&A Session Summary Question: Growth expectations for the GMT segment - Management highlighted a clear strategy in crude, gas, and water in the Permian Basin, with a focus on achieving a return on investment that supports coverage and leverage ratios [17][18] Question: EBITDA impact from transactions with DK - The transactions helped further the economic separation of the two entities, with DKL now having 82% of its EBITDA from third-party businesses [22][23] Question: Next steps on Libby processing expansion - Management indicated ongoing investments for future expansion and is closely monitoring customer activities in the area, which look promising [28][29] Question: Thoughts on sour gas midstream M&A - Management expressed confidence in their valuation compared to peers and emphasized that any future deals must be accretive to free cash flow, leverage, and coverage ratios [34]

Core Insights - Delek Logistics Partners, LP has achieved a record adjusted EBITDA of $536 million for 2025, reflecting strong operational execution and strategic acquisitions [4] - The company is positioned for sustainable growth in 2026, with an EBITDA guidance range of $520 million to $560 million [2][12] - The integration of H2O and Gravity has enhanced the company's competitive position in the Permian Basin, contributing to its growth strategy [2][4] Financial Performance - The adjusted EBITDA for Q4 2025 was approximately $142 million, up from $114 million in the same period last year, marking a significant increase [10] - Distributable cash flow (DCF) as adjusted totaled $73 million, with a DCF coverage ratio of approximately 1.22x [11] - Total capital expenditures for Q4 were approximately $32 million, with $26 million allocated to growth capital related to sour gas capabilities [12] Operational Developments - The Libbey II processing plant has been successfully commissioned, increasing processing capacity to around 160 million scf per day [3] - The company is advancing its sour gas handling capabilities, with ongoing construction of sour gas gathering infrastructure [6][10] - The crude gathering operations have shown strong performance, with record volumes in Q4 [7] Strategic Initiatives - Approximately 80% of the run-rate EBITDA is expected to come from third parties in 2026, indicating increased independence from the sponsor [5][19] - The company is focused on optimizing synergies from recent acquisitions and executing strategic priorities to capture value from investments [10] - Future expansions of the Libbey complex are being considered to meet increasing demand for processing capacity [6][21] Market Position - Delek Logistics Partners, LP is recognized as a premier full-service provider in the Permian Basin, with a strong focus on natural gas, crude, and water services [4][5] - The company aims to maintain financial discipline while pursuing growth opportunities, ensuring that all investments are accretive to free cash flow and leverage ratios [24]

Operations and Capacity - The Partnership operates approximately 1,326 miles of crude and refined product pipelines, with a total active shell capacity of about 10.0 million barrels [28]. - The water disposal capacity is approximately 310 MBbl/d, and the gas processing capacity is around 195 MMcf/d [28]. - The company has approximately 258 miles of gathering assets in the Midland Gathering System, with a total storage capacity of approximately 400,000 barrels [52]. - The Delaware Gathering Assets include 57,600 dedicated acres and a processing capacity of 195 MMcf/d, supporting crude oil and natural gas operations [54]. - The Midland Water Gathering Assets consist of approximately 278,450 dedicated acres and 852 MBbl/d of operational capacity, primarily in the Midland Basin [56]. - The El Dorado Assets include a pipeline system with a total capacity of approximately 250,000 bpd for crude oil transportation [59]. - The Magnolia Pipeline has a capacity of 68,500 bpd and spans 78 miles, connecting Shreveport, LA to Magnolia, AR [57]. - The East Texas Crude Logistics System has five storage terminals with a total active shell capacity of 1,036,000 barrels, including LaGloria Station with 450,000 barrels [60]. - The company owns approximately 100 miles of product pipelines in West Texas, connecting terminals to the Magellan Orion Pipeline [72]. - The Abilene and San Angelo terminals have a combined active aggregate shell capacity of 426,000 barrels and a maximum daily truck loading capacity of 30,000 bpd [72]. - The El Dorado Tank Assets include approximately 150 storage tanks with a total capacity of 2.5 million barrels [59]. - The Magnolia Station has a storage capacity of approximately 230,000 barrels [58]. - The total active aggregate shell capacity across terminals is 639,000 barrels, with a maximum daily available truck loading capacity of 213,100 barrels per day [75]. Financial Performance and Risks - The company emphasizes a focus on operational optimization and improved margin capture as part of its long-term sustainability framework [35]. - The ongoing review of strategic alternatives may materially impact the company's strategic direction and results of operations [18]. - The company is exposed to risks related to global oil market developments, which could adversely affect its financial performance [18]. - The Partnership's ability to pay quarterly distributions may be impaired if it cannot generate sufficient cash flow [18]. - The Partnership's debt levels may limit its flexibility to obtain financing and pursue business opportunities [19]. - Revenues and cash flows are sensitive to changes in commodity prices, affecting operating margins [492]. - Inflationary factors may adversely affect operating results and gross margin levels [494]. Strategic Acquisitions - The company has successfully completed several acquisitions, including the Big Spring Asset Acquisition for $171 million and the Midland Gathering Assets Acquisition for $100 million plus 5.0 million common limited partner units, enhancing its strategic positioning and cash flows [38]. - The acquisition of 3 Bear Energy for $628.3 million has diversified the company's customer and product mix while expanding its footprint into the Delaware Basin [38]. - The company acquired a 50% equity interest in W2W Holdings for $83.9 million cash and $60 million in debt forgiveness, which includes a 15.6% indirect interest in the Wink to Webster Pipeline [38]. - The acquisition of H2O Midstream for $160 million and $70 million in convertible preferred equity supports the company's strategy of providing comprehensive midstream services in the Permian Basin [38]. Revenue Generation - The Partnership generates revenue from product sales, gathering and processing services, and pipeline throughput fees, with a significant portion derived from long-term contracts with Delek Holdings [45]. - The competitive position in the Delaware Basin is strengthened by long-term renewable contracts with minimum volume commitments, enhancing cash flow stability [46]. - The company is insulated from seasonal market conditions due to minimum volume commitments with producers, which helps stabilize cash flows [49]. - The wholesale marketing and terminalling segment generates revenue from marketing services, transportation, storage, and terminalling of refined products, with a focus on the Tyler Refinery output [64][65]. - Delek Holdings accounted for 49.3%, 55.0%, and 55.3% of total revenues for the years ended December 31, 2025, 2024, and 2023, respectively [99]. - The Partnership generates a substantial majority of its Storage and Transportation segment revenues from long-term commercial agreements with Delek Holdings, which typically have initial terms ranging from five to ten years [80]. Regulatory and Compliance - The company is subject to extensive environmental regulations enforced by agencies such as the EPA, which govern the discharge and management of hazardous materials [112]. - The company anticipates ongoing capital investments to comply with evolving environmental and safety regulations, although future expenditures are difficult to quantify [112]. - The Renewable Fuel Standard requires an increase in renewable fuel sales, potentially impacting demand for petroleum products [119]. - The company maintains spill prevention control and countermeasure plans to comply with the Clean Water Act and the Oil Pollution Act [125]. - The company has not been identified as a potentially responsible party at any Superfund-regulated sites, mitigating certain liabilities [120]. - The company is monitoring proposed new pipeline regulations that may impose additional operational responsibilities [108]. - The Federal Motor Carrier Safety Administration regulates safety standards for the company's fleet, which is believed to be in substantial compliance with these regulations [110]. - The Pipeline Safety Act allows the PHMSA to impose penalties of up to $257,664 per day for violations, with potential cumulative penalties reaching $2,576,627 [107]. Operational Assets and Infrastructure - The Partnership owns or leases 161 tractors and 306 trailers for hauling crude oil and other products, enhancing its operational capacity [85]. - The Partnership's joint ventures include a 109-mile pipeline with a capacity of 145,000 barrels per day and an 80-mile pipeline with a capacity of 80,000 barrels per day [86]. - The Partnership's operational assets include 28 tanks across various terminals, with the Mount Pleasant, TX terminal having the highest capacity of 200,000 barrels [75]. - The Partnership's revenue from joint ventures is based on its proportionate share of net income or loss, rather than direct revenues from the joint ventures [88]. - The Partnership's commercial agreements with Delek Holdings were amended on August 5, 2024, extending terms and reassessing embedded leases under ASC 842 [93]. Miscellaneous - The company believes it owns valid easement rights and rights-of-way or fee ownership or leasehold interests to the lands on which its assets are located [128]. - The majority of the assets are pledged under and encumbered by the company's credit agreement [129]. - Outstanding floating rate borrowings totaled approximately $211.9 million as of December 31, 2025 [493]. - A hypothetical one percent change in interest rates would change interest expense by approximately $2.1 million [493]. - The company has obtained permits from public authorities for its operations, some of which are revocable [127]. - The corporate headquarters lease is for 56,141 square feet and expires in January 2030 [130]. - The company has the right of eminent domain in some states to acquire necessary rights-of-way [127]. - Title to properties is subject to encumbrances, but these are not expected to materially detract from their value [128].

NYSE: DK Exhibit 99.2 NYSE: DKL Fourth Quarter 2025 Earnings Conference Call February 27, 2026 Disclaimers Forward Looking Statements: Delek US Holdings, Inc. ("Delek US") and Delek Logistics Partners, LP ("Delek Logistics"; and collectively with Delek US, "we" or "our") are traded on the New York Stock Exchange in the United States under the symbols "DK" and "DKL", respectively. These slides and any accompanying oral or written presentations contain forward-looking statements within the meaning of federal ...