For years now, there's been a deep value/sum of the parts play for refiner Delek US Holdings (NYSE: DK ) stock. The core of the thesis is simple: Delek's stake in midstream play Delek Logistics Partners ( DKL ) accounts forI've been contributing to Seeking Alpha and other investment websites since 2011, with a general (though far from rigid) focus on value over growth. I got my Series 7 and 63 back in 1999, and watched the dot-com bubble peak and then burst in real time at a small, tech-focused retail broke ...

Acquisitions and Investments - The Partnership acquired 100% of Gravity Water Intermediate Holdings LLC for water disposal and recycling operations in the Permian Basin and Bakken on January 2, 2025[111]. - Gravity Acquisition completed on January 2, 2025, for a total consideration of $300.8 million, consisting of $209.3 million in cash and 2,175,209 common units, enhancing the company's position in the Permian Basin[130]. - The Delek Permian Gathering Dropdown on May 1, 2025, involved the transfer of the purchasing and blending business, with total consideration including the cancellation of $58.8 million in existing receivables owed by Delek Holdings[130]. - The El Dorado Purchase Agreement, executed on May 1, 2025, involves Delek Holdings purchasing assets for cash consideration of $25.0 million, set to close on January 1, 2026[132]. - The partnership is focused on pursuing attractive expansion opportunities in the Permian Basin, particularly in crude, natural gas, and water services[141]. Financial Performance - The Partnership reported a $6.4 million increase in net income for the three months ended March 31, 2025, compared to the prior year period[124]. - EBITDA decreased by $16.0 million in 2025 compared to 2024, primarily due to a change in classification of certain commercial agreements[124]. - EBITDA for the three months ended March 31, 2025, was reported at $85.5 million, compared to $101.5 million for the same period in 2024[153]. - Net revenues for Q1 2025 decreased by $2.1 million, or 0.9%, compared to Q1 2024, totaling $249.93 million[160]. - EBITDA for Q1 2025 was $85.49 million, a decrease of $16.01 million, or 15.8%, from $101.50 million in Q1 2024[158]. - Distributable cash flow increased to $71.71 million in Q1 2025, up from $67.99 million in Q1 2024, representing a growth of 5.0%[155]. Segment Performance - The gathering and processing segment saw a $10.2 million increase in segment EBITDA, largely due to the H2O Midstream and Gravity acquisitions[124]. - The wholesale marketing and terminalling segment experienced a $12.0 million decrease in segment EBITDA[124]. - The storage and transportation segment reported a $13.7 million decrease in segment EBITDA[124]. - The gathering and processing segment saw net revenues rise by $22.7 million, or 23.7%, in Q1 2025, largely due to contributions from H2O Midstream and Gravity operations[170]. - Net revenues for the wholesale marketing and terminalling segment decreased by $12.6 million, or 10.5%, to $106.7 million in Q1 2025 compared to $119.3 million in Q1 2024[176]. - Net revenues for the storage and transportation segment decreased by $12.3 million, or 33.3%, to $24.6 million in Q1 2025 compared to $36.9 million in Q1 2024[185]. Expenses and Cash Flow - Operating expenses increased by $9.1 million, or 28.4%, in Q1 2025 compared to Q1 2024, driven by higher general and administrative expenses[161]. - General and administrative expenses surged by $4.0 million, or 82.3%, in Q1 2025, primarily due to transaction costs related to the Gravity Acquisition[161]. - Net cash provided by operating activities decreased by $12.3 million to $31.6 million in Q1 2025 compared to $43.9 million in Q1 2024[198]. - Net cash used in investing activities increased by $224.9 million to $234.8 million in Q1 2025, primarily due to the Gravity Acquisition for $181.2 million[199]. Debt and Liquidity - Total liquidity as of March 31, 2025, amounted to $447.0 million, consisting of $444.9 million in unused credit commitments and $2.1 million in cash[192]. - Total indebtedness as of March 31, 2025, was $2,155.1 million, reflecting an increase of $269.7 million compared to December 31, 2024[203]. - The outstanding floating rate borrowings totaled approximately $705.1 million as of March 31, 2025, exposing the company to interest rate risk[211]. - A hypothetical one percent change in interest rates would change interest expense by approximately $7.1 million annually[211]. Strategic Outlook - The economic outlook remains uncertain due to geopolitical instability and commodity market volatility, but the Partnership is positioned to manage through potential downturns[125]. - The company aims to achieve strong cash flow growth in 2025, driven by the expansion of the Libby gas processing plant and the integration of H2O Midstream and Gravity acquisitions[144]. - The partnership is prioritizing reducing its leverage ratio to enhance financial flexibility for pursuing growth opportunities[143]. - The partnership's long-term strategic objectives include increasing economic separation from Delek Holdings and enhancing third-party cash flow contributions[140]. Market and Regulatory Factors - Market trends indicate that fluctuations in crude oil and natural gas prices significantly impact operations, with long-term fee-based contracts mitigating short-term financial risks[147]. - Changes in commodity prices can significantly affect revenues and cash flows, impacting operating margins[210]. - Inflationary factors may adversely affect operating results, impacting gross margin and operating expenses[212]. - Regulatory maintenance projects are financed through cash generated from operations, ensuring compliance with environmental regulations[206]. Safety and Compliance - The company has successfully avoided lost time injuries for four years, demonstrating strong safety protocols and adherence to regulations[142].

Delek Logistics Partners (DKL) Q1 2025 Earnings Call May 07, 2025 12:30 PM ET Company Participants Robert Wright - EVP & CFOAvigal Soreq - PresidentReuven Spiegel - EVPDoug Irwin - Vice President Operator Thank you for standing by. My name is JL, and I will be your conference operator today. At this time, I would like to welcome everyone to the Delek Logistics Partners First Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' rema ...

Financial Data and Key Metrics Changes - Delek Logistics Partners reported approximately $117 million in quarterly adjusted EBITDA, an increase from $102 million in the same period of 2024, indicating a year-over-year growth of approximately 14.7% [4][13] - Distributable cash flow as adjusted was $75 million, with a DCF coverage ratio of approximately 1.27 times, expected to rise throughout the year [13] - The company is on track to deliver full-year EBITDA guidance of $480 million to $520 million [4][16] Business Line Data and Key Metrics Changes - Gathering and Processing segment adjusted EBITDA for the quarter was $81 million, up from $50 million in Q1 2024, reflecting a significant increase due to acquisitions [14] - Wholesale marketing and terminalling adjusted EBITDA decreased to $18 million from $25 million in the prior year, primarily due to seasonal weather impacts [14] - Storage and transportation adjusted EBITDA was $14 million, down from $18 million in Q1 2024, attributed to renegotiation impacts [14] - Investments in pipeline joint venture segment contributed $10 million, compared to $8 million in the same quarter of the previous year [14] Market Data and Key Metrics Changes - The company is enhancing its competitive position in the Midland Basin through intercompany transactions and acquisitions, increasing third-party contribution to cash flow from 70% to around 80% on a pro forma basis [4][20] - The Delaware Basin is expected to continue growing, with the company optimistic about its competitive position despite near-term crude price volatility [6] Company Strategy and Development Direction - The company is focused on increasing its economic separation from DK and enhancing its position as a full-service crude, natural gas, and water provider in the Permian Basin [4][5] - The commissioning of the Libbey II gas plant is expected to add 100 million to 120 million cubic feet per day of incremental capacity, with plans for future expansions [8][9] - The company aims to improve operational efficiency and margins across its operations [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the Delaware Basin and the overall partnership, emphasizing prudent management of leverage and coverage [6][12] - The company is optimistic about the prospects of direct logistics and plans to continue its value creation path moving forward [6] Other Important Information - The Board of Directors approved a 49th consecutive increase in the quarterly distribution to $1.11 per unit [6] - The capital program for Q1 was approximately $72 million, with significant investments in the Libbey II gas processing plant [15][16] Q&A Session Summary Question: Details on intercompany agreements and optimization opportunities - Management clarified that the intercompany transaction involved cleaning up contracts and moving some midstream activities from DK to DKL, with no net material impact on EBITDA [20] Question: Customer feedback and contract mix in the current macro environment - Management reported stable volumes in the Midland Basin and increasing water volumes, indicating a strong customer base and competitive advantage [22][25] Question: CapEx and future growth plans - Management indicated limited direct commodity exposure with strong counterparties and forecasted an increase in produced water volumes despite volatility [25][26]

Exhibit 99.1 Delek Logistics Reports Record First Quarter 2025 Results BRENTWOOD, Tenn., May 7, 2025 -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the first quarter 2025. "Delek Logistics started 2025 on a strong note enhancing our position as a premier midstream provider in the Permian basin. We provide 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 a ...

Group 1 - The company, Henriot Capital, emphasizes a quant-driven investment approach that prioritizes simplicity and common sense for success [1] - The investment strategy is characterized by a motto of "invest first, investigate later," indicating a reliance on model recommendations without human bias [1] - The firm aims to build a hedge fund with a clear purpose and disciplined focus, seeking consistent alpha through data-driven decisions [1]

Tomas Riba is an economist and former Chief Financial Officer (CFO) investing in high-quality companies that can compound their cash flow over the long term.His journey in financial markets started at a young age, and he has been investing since 2007. Following his studies in economics, Tomas initially built his career in accounting.After taking on the role of CFO for a holding company operating in the pharma, medical device, textile, food, and real estate industries, he pursued an academic career. Currentl ...

One stock that might be an intriguing choice for investors right now is Delek Logistics Partners, LP (DKL) . This is because this security in the Oil and Gas - Production Pipeline - MLB space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective. This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arg ...

For those looking to find strong Oils-Energy stocks, it is prudent to search for companies in the group that are outperforming their peers. Delek Logistics Partners, L.P. (DKL) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Oils-Energy peers, we might be able to answer that question.Delek Logistics Partners, L.P. is a member of our Oils-Ener ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35721 DELEK LOGISTICS PARTNERS, LP (Exact name of registrant as specified in its charter) Delaware 45-5379027 (State or other jurisdi ...