The live broadcast of this conference call will be available online by going to www.DelekLogistics.com and clicking on the webcasts section of the website. The online replay will be available on the website 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 Coas ...

These companies offer high-yielding and steadily rising income streams.The S&P 500's dividend yield is a paltry 1.1% these days. That's approaching its all-time low. As a result, fewer stocks are offering compelling income streams right now. However, there are some enticing options available. Delek Logistics Partners (DKL +0.46%), Hess Midstream (HESM +1.04%), and Plains All American Pipeline (PAA +0.92%) currently offer yields of up to 9%. Even better, all three companies recently increased their payouts. ...

Core Insights - The midstream sector is demonstrating strong financial health at the start of 2026, with numerous companies announcing increases in distributions and dividends, reinforcing its position as a reliable income source for investors [1] Payout Growth Across Midstream - Williams (WMB) raised its quarterly cash dividend to $0.525 from $0.50, a 5% increase [1] - Plains All American (PAA/PAGP) increased its quarterly distribution to $0.4175 per unit, reflecting a 9.9% rise [1] - Enterprise Products Partners (EPD) raised its distribution to $0.55, nearly a 1% increase [1] - ONEOK (OKE) announced a 4% sequential increase to $1.07 per share [1] Broad Sector Momentum - Energy Transfer (ET) increased its quarterly distribution to $0.335, a 3.1% year-over-year rise from $0.325 [1] - Hess Midstream (HESM) raised its payout to $0.7641, marking a 9.0% year-over-year increase [1] - Sunoco LP (SUN) announced a distribution of $0.9317, a 5.1% year-over-year increase [1] - Genesis Energy (GEL) raised its distribution by $0.015 to $0.18 per unit, a 9.1% increase [1] - Kinetik (KNTK) raised its payout to $0.81, reflecting a 4% sequential increase [1] - Delek Logistics (DKL) increased its payout to $1.125, representing a 1.85% year-over-year rise [1] ETF Exposure - Energy Transfer, Enterprise, Hess Midstream, Genesis, Delek Logistics, Sunoco, and Plains are included in both the Alerian MLP ETF (AMLP) and the Alerian Energy Infrastructure ETF (ENFR) [1] - AMLP tracks the Alerian MLP Infrastructure Index (AMZI), while ENFR tracks the Alerian Midstream Energy Select Index (AMEI) [1] - Williams, ONEOK, and Kinetik operate as C-corps, with only ENFR holding them [1]

BRENTWOOD, Tenn.--(BUSINESS WIRE)--Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics†) today declared its quarterly cash distribution for the fourth quarter 2025 of $1.125 per common limited partner unit, or $4.50 per common limited partner unit on an annualized basis. The fourth quarter 2025 cash distribution is payable on February 12, 2026, to unitholders of record on February 5, 2026. About Delek Logistics Partners, LP Delek Logistics is a midstream energy master limited partnership. ...

Company Overview - Delek Logistics Partners (DKL) is a midstream master limited partnership primarily operating in Texas and surrounding states, known for its long history of growth [1] Investment Strategy - The focus is on generating a 7%+ income yield by investing in a portfolio of energy stocks while minimizing the risk of principal loss [1] - The investment group, Energy Profits in Dividends, targets both traditional and renewable energy companies that hold a competitive advantage and pay strong dividends [1] Research and Analysis - The leader of the investment group provides in-depth micro and macro-analysis of both domestic and international energy companies [1] - Subscribers gain access to exclusive research and investment ideas that are not available to the general public [1]

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] - The popularity of insurance companies in the Philippines since 2014 indicates a shift in investment strategies among local investors, moving towards a more diversified portfolio [1] - The entry into the US market in 2020 reflects a growing interest in international investments, particularly in sectors like banking, hotels, and logistics [1] Investment Strategies - Initial investments were focused on blue-chip companies, showcasing a conservative approach to stock investing [1] - The diversification into various industries and market cap sizes demonstrates a strategic shift towards balancing risk and return [1] - The decision to write for Seeking Alpha indicates a commitment to knowledge sharing and continuous learning in investment practices [1] Market Trends - The ASEAN market remains a focal point for investments in banking, telecommunications, and retail sectors, suggesting robust growth in these areas [1] - The US market has become increasingly attractive for investments in banks, hotels, shipping, and logistics companies, reflecting a trend towards global investment strategies [1] - The use of comparative analyses between the US and Philippine markets highlights the importance of market research in making informed investment decisions [1]

Core Insights - The S&P 500's dividend yield is at a historic low of approximately 1.2%, while several stocks offer significantly higher yields, including those in the double digits [1] AGNC Investment - AGNC Investment currently yields 13.6%, over 10 times higher than the S&P 500 [3] - The REIT invests in residential mortgage-backed securities (MBS) guaranteed against credit losses by government agencies, generating low-risk, fixed-income returns [3] - AGNC's return on equity is in the mid-to-high teens, aligning with its cost of capital, allowing it to maintain its monthly dividend since early 2020 [4] Delek Logistics Partners - Delek Logistics Partners has a current yield of 10.1% and operates as a master limited partnership (MLP) with a portfolio of energy midstream assets [6] - The MLP expects to generate cash flow sufficient to cover its dividend payout by 1.3 times this year, providing a cushion for operational investments [8] - Delek Logistics has increased its distribution for 51 consecutive quarters, indicating strong financial flexibility for future growth [9] Ares Capital Corporation - Ares Capital Corporation offers a dividend yield of 9.6% and invests in private companies through debt and equity [10] - The company has maintained a stable or increasing dividend rate for over 16 years, with a cumulative net realized loss of 0% since inception [12] - Ares Capital raised over $1 billion in fresh capital in Q3, enabling new investments and supporting its dividend payments [13] Summary of High-Yield Stocks - AGNC Investment, Delek Logistics Partners, and Ares Capital Corporation provide substantial yields and have solid records of maintaining or increasing their dividends, appealing to risk-tolerant investors seeking income [14]

Group 1 - Investors in Delek Logistics Partners, LP (DKL) should monitor the stock due to significant activity in the options market, particularly the Nov. 21, 2025 $30 Put, which has high implied volatility [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Delek Logistics shares, possibly due to an upcoming event [2] - Delek Logistics currently holds a Zacks Rank 3 (Hold) in the Oil and Gas - Production Pipeline - MLB industry, which is in the bottom 22% of the Zacks Industry Rank [3] Group 2 - Over the past 60 days, no analysts have increased earnings estimates for Delek Logistics for the current quarter, while one analyst has lowered their estimate, resulting in a decrease in the Zacks Consensus Estimate from $1.15 to $1.06 per share [3] - The high implied volatility may indicate a trading opportunity, as options traders often seek to sell premium on options with high implied volatility, hoping the underlying stock does not move as much as expected at expiration [4]

Financial Performance - Total net revenues for Q3 2025 reached $261.3 million, a 21.9% increase from $214.1 million in Q3 2024[16] - Operating income for Q3 2025 was $45.4 million, compared to $31.8 million in Q3 2024, reflecting a 42.6% increase[16] - Net income for the nine months ended September 30, 2025, was $129.2 million, up from $107.4 million for the same period in 2024, representing a 20.3% increase[16] - The company reported a basic net income per unit of $0.85 for Q3 2025, compared to $0.71 for Q3 2024, marking a 19.7% increase[16] - Net income for the three months ended September 30, 2025, was $46.3 million, up 37.4% from $33.7 million in the prior year[46] - Net income for the three months ended September 30, 2025, was $45,560 thousand, compared to $33,674 thousand in 2024, reflecting a year-over-year increase of 35.3%[79] - The company reported a net income of $45.6 million for Q3 2025, compared to $33.7 million in Q3 2024, representing a 35.4% increase[180] Assets and Liabilities - Total current assets increased to $382.8 million as of September 30, 2025, compared to $145.9 million at December 31, 2024[14] - Long-term debt, net of current portion, rose to $2.3 billion as of September 30, 2025, up from $1.9 billion at December 31, 2024[14] - Total assets as of September 30, 2025, were $2.75 billion, an increase from $2.04 billion at December 31, 2024[14] - The company’s total liabilities increased to $2.73 billion as of September 30, 2025, compared to $2.01 billion at December 31, 2024[14] - The principal amount of long-term debt as of September 30, 2025, was $2,306,850 thousand, compared to $1,885,400 thousand at the end of 2024, reflecting an increase of 22.3%[80] Cash Flow and Investments - Net cash provided by operating activities increased to $193.9 million for the nine months ended September 30, 2025, compared to $156.4 million in 2024, reflecting a growth of 24%[21] - The company reported a net cash used in investing activities of $411.7 million for the nine months ended September 30, 2025, compared to $314.5 million in 2024, representing a 31% increase[21] - Cash paid for interest during the nine months ended September 30, 2025, was $129.3 million, up from $95.3 million in 2024, indicating a 35.7% increase[22] - The company reported a net increase in cash and cash equivalents of $1.5 million for the nine months ended September 30, 2025, compared to an increase of $3.6 million in 2024[21] Acquisitions - The Gravity Acquisition completed on January 2, 2025, had a preliminary purchase price of $300.8 million, which included $209.3 million in cash and 2,175,209 common units[33] - Revenue from the Gravity Acquisition operations was $67.5 million for the period from January 2, 2025, through September 30, 2025, with a net income contribution of $24.0 million[35] - The H2O Midstream Acquisition was completed for a total consideration of $229.7 million, consisting of $159.7 million in cash and $70.0 million in preferred units[47] - The preliminary fair value of total assets acquired in the H2O Midstream Acquisition was $243.9 million, with property, plant, and equipment valued at $172.4 million[50] - The partnership aims to increase third-party revenue streams and expand its footprint in the Midland and Bakken basins through the acquisitions of Gravity and H2O Midstream[56] Revenue Segments - Gathering and Processing segment revenues reached $132.2 million in Q3 2025, up from $81.5 million in Q3 2024, reflecting a significant increase[180] - Net revenues for the gathering and processing segment increased by $98.5 million, or 36.5%, in the nine months ended September 30, 2025, compared to the same period in 2024[199] - Net revenues increased by $47.2 million, or 22.1%, in Q3 2025 compared to Q3 2024, primarily driven by growth in gathering and processing segments[182] - Net revenues for the wholesale marketing and terminalling segment decreased by $45.8 million, or 12.6%, for the nine months ended September 30, 2025, compared to the same period in 2024[207] Expenses - Operating and maintenance expenses for the three months ended September 30, 2025, were $23,076 thousand, up from $15,275 thousand in 2024, representing an increase of 51.3%[72] - General and administrative expenses decreased by $4.3 million, or 16.1%, in the nine months ended September 30, 2025, compared to the same period in 2024[187] - Depreciation and amortization for the three months ended September 30, 2025, was $34.799 million, up from $21.204 million in the same period of 2024, reflecting a 64% increase[112] - Operating expenses increased by $33.4 million, or 37.4%, in the nine months ended September 30, 2025, compared to the same period in 2024[185] Cash Distributions - Distributions to common unitholders totaled $178.2 million for the nine months ended September 30, 2025, compared to $148.1 million in 2024, reflecting a 20.3% increase[21] - Quarterly cash distributions per limited partner unit increased from $1.055 in Q4 2023 to $1.120 in Q3 2025, with total cash distributions reaching $59,898,000 for Q3 2025[97] Strategic Initiatives - The Partnership 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[166] - The Partnership is focused on reducing its leverage ratio to enhance financial flexibility and pursue growth opportunities[165] - The Partnership's strategic focus areas for 2025 include pursuing organic growth opportunities in the Permian Basin and engaging in mutually beneficial transactions with Delek Holdings[163]

Financial Data and Key Metrics Changes - The company reported approximately $136 million in quarterly adjusted EBITDA, an increase from $107 million in the same period last year [3][10] - Full-year EBITDA midpoint guidance has been raised to the upper end of the range between $500 million and $520 million [3][12] - Distributable cash flow, as adjusted, totaled $74 million, with a coverage ratio of approximately 1.24x [10] Business Line Data and Key Metrics Changes - Adjusted EBITDA for the gathering and processing segment was $83 million, up from $55 million in the third quarter of 2024, primarily due to the acquisition of H2O and Gravity [10] - Wholesale marketing and terminaling adjusted EBITDA was $21 million, down from $25 million in the prior year [10] - Storage and transportation adjusted EBITDA remained stable at $19 million compared to the third quarter of 2024 [11] - Investments in the pipeline joint venture segment contributed $22 million this quarter, up from $16 million in the third quarter of 2024 [11] Market Data and Key Metrics Changes - The company noted strong operations in crude and water gathering segments, with record volumes for DDG in the third quarter [4][8] - The competitive position in both Midland and Delaware Basins is increasing due to recent acquisitions and operational improvements [4] Company Strategy and Development Direction - The company aims to become a strong, independent, full-suite midstream service provider, focusing on prudent management of leverage and coverage [4][5] - The successful commissioning of the Libby 2 plant and ongoing efforts in acid gas injection and sour gas handling are key strategic initiatives [3][6] - The company plans to continue optimizing synergies and realizing EBITDA uplift from recent acquisitions [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the earnings trajectory and the ability to meet increased demand for sour gas capabilities [18][32] - The company is optimistic about future expansion opportunities and plans to provide detailed guidance in the next earnings call [20][32] Other Important Information - The Board of Directors approved a 51st consecutive increase in the quarterly distribution to $1.12 per unit [4] - Capital expenditures for the third quarter were approximately $50 million, with $44 million allocated to growth projects [11] Q&A Session Summary Question: Inquiry about producers' increasing activity on acreage ahead of Libby 2 - Management noted strong performance in crude and water, with no material change in drilling activity on their acreage [16][17] Question: Follow-up on CapEx and future flexibility - Management indicated that planning for next year is ongoing and further guidance will be provided in the next earnings call [20] Question: Discussion on equity income performance - The strong performance was attributed to the Wink to Webster joint venture, with expectations for sustainable results going forward [28] Question: Inquiry about the water landscape and competition - Management highlighted the successful timing of acquisitions and the challenges in permitting new facilities in the Delaware Basin [30] Question: Clarification on Libby 3 expansion timing and AGI disposal - Management confirmed that market demand for sour capabilities is strong and that detailed plans will be shared after the planning session [32][34]