Investors in Delek Logistics Partners, LP (DKL) need to pay close attention to the stock based on moves in the options market lately. That is because the Nov. 21, 2025 $30 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It co ...

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]

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, now expected between $500 million and $520 million [3][12] - Distributable cash flow, as adjusted, totaled $74 million, with a coverage ratio of approximately 1.24 times [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 decreased to $21 million 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] Market Data and Key Metrics Changes - Crude gathering operations had a record third quarter, with strong performance continuing into the fourth quarter [4][8] - The company is seeing solid operations in both crude and water gathering segments, enhancing its competitive position in the Midland and Delaware Basins [4][8] 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 while seizing growth opportunities [4][5] - The successful commissioning of the Libby 2 plant and ongoing efforts in acid gas injection and sour gas handling are key initiatives to improve operational capacity [3][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the earnings trajectory and the ability to capture full value from recent investments, including optimizing synergies from acquisitions [9][12] - The company is well-positioned to meet market demands for sour gas and water treatment, indicating a strong growth runway in the Delaware Basin [18][32] Other Important Information - The Board of Directors approved a 51st consecutive increase in the quarterly distribution to $1.12 per unit, reflecting the company's financial prudence and strong performance [4][5] - Capital expenditures for the third quarter were approximately $50 million, with $44 million allocated to growth projects, including the Libby 2 gas processing plant [11] Q&A Session Summary Question: Expansion on producers' increasing activity on acreage ahead of Libby 2 - Management noted that while drilling activity has not materially changed, there are increasing synergies between different streams being managed [16][17] Question: CapEx trends for 2026 and flexibility for debt repayment or unit buybacks - Management indicated that planning for next year is ongoing, with further guidance expected in the next earnings call [20] Question: Performance of equity investments and sustainability of current run rate - Strong performance in the Wink to Webster joint venture was highlighted, with expectations for a good run rate going forward [28] Question: Water landscape and competition - Management acknowledged a favorable position in the market due to timely acquisitions and noted challenges in permitting new facilities in the Delaware Basin [30] Question: Timing for Libby 3 expansion and AGI disposal capabilities - Management confirmed that market demand for sour capabilities is strong, and detailed plans will be shared after the planning session [32][34]

Financial Data and Key Metrics Changes - Delek Logistics Partners reported approximately $136 million in quarterly adjusted EBITDA, an increase from $107 million in the same period last year [3][10] - The full-year EBITDA midpoint guidance has been raised to the upper end of the range, now expected between $500 million and $520 million [3][12] - Distributable cash flow, as adjusted, totaled $74 million, with a DCF coverage ratio of approximately 1.24 times [10] Business Line Data and Key Metrics Changes - For the gathering and processing segment, adjusted EBITDA for the quarter was $83 million compared to $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, mainly due to last summer's amend and extend agreements [10] - Storage and transportation adjusted EBITDA remained stable at $19 million compared to the same quarter last year [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 [4][7] - The competitive position in both Midland and Delaware Basins is increasing due to two water acquisitions and increasing dedication [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 while seizing growth opportunities [4][5] - The commissioning of the new Libby 2 plant is a key initiative, enhancing the company's capabilities in acid gas injection and sour gas handling [3][6] - The company plans to optimize synergies and realize associated 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 fill the Libby 2 plant to capacity, indicating a need for earlier expansion due to market demand for sour gas solutions [18] - The company remains focused on achieving long-term leverage and coverage targets while maintaining a strong financial position with approximately $1 billion of availability on credit facilities [9] 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 capex [11] Q&A Session Summary Question: Inquiry about producers' increasing activity on acreage ahead of Libby 2 - Management noted that while crude and water operations are strong, there has not been a material change in drilling activity, but synergies between different streams are increasing [15][17] Question: Follow-up on CapEx and 2026 trends - 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 line performance - The strong performance was attributed to the Wink to Webster joint venture, with expectations for sustainable run rates going forward [27] Question: Inquiry about the water landscape and competition - Management highlighted the favorable timing of past acquisitions and the challenges in permitting new facilities, positioning the company well in the market [29] Question: Clarification on Libby 3 expansion timing and AGI disposal - Management confirmed confidence in handling sour gas and indicated that planning for expansion will be detailed in future communications [31]

Financial Performance - Adjusted EPS was $7.13 in 3Q 2025[17] - Adjusted EBITDA reached $759.6 million[18] - CFO (ex WC and SREs) amounted to $150 million[19] Enterprise Optimization Plan (EOP) - The company achieved approximately $60 million in EOP improvements in 3Q 2025[9] - The run-rate cash flow improvement guidance is raised to at least $180 million from the previous $130 - $170 million[12] - $50 million margin improvement plan stems from enhanced logistics, reduced costs, higher quality product slate and higher yields at El Dorado[37] Delek Logistics (DKL) - DKL is increasing its expected 2025 EBITDA range to $500 million[13] - Increased DKL Distribution: $1.12 per unit ($4.48 per unit annualized)[15] Small Refinery Exemptions (SREs) - The majority of pending 2019-2024 SRE petitions were approved[13] - A cash inflow of approximately $400 million is expected over the next six to nine months due to SREs[14] - The impact of (50% RVO Exemption 1Q to 3Q 2025) is $160.2 million[21] Capital Returns - Approximately $30 million was allocated to dividends and buybacks in 3Q 2025[15, 17] - Delek has led the group in the last twelve months in total shareholder returns, outperforming the group average by 7%[26]

Exhibit 99.1 Delek Logistics Reports Record Third Quarter 2025 Results BRENTWOOD, Tenn., November 7, 2025 -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the third quarter 2025. "During the third quarter Delek Logistics continued its strong execution by making progress on the development of sour gas gathering and acid gas injection capabilities. Delek Logistics also had record crude gathering volumes in its Delaware Business. Due to the strong progre ...

Core Insights - Delek Logistics Partners reported record financial results for the third quarter of 2025, with a net income of $45.6 million, or $0.85 per diluted common limited partner unit, marking an increase from $33.7 million, or $0.71 per diluted unit, in the same quarter of 2024 [4][14] - The company has increased its full-year EBITDA guidance to between $500 million and $520 million due to strong operational performance [2][14] - Delek Logistics has achieved a 51st consecutive quarterly increase in its cash distribution, now at $1.120 per common limited partner unit, reflecting a 0.4% increase from the previous quarter and a 1.8% increase year-over-year [6][14] Financial Performance - The third quarter 2025 EBITDA was reported at $102.0 million, up from $69.2 million in the third quarter of 2024, with Adjusted EBITDA reaching $136.0 million compared to $106.8 million in the prior year [5][8] - Net cash provided by operating activities was $54.9 million in Q3 2025, significantly higher than $24.9 million in Q3 2024 [4][29] - Distributable cash flow, as adjusted, was $74.1 million in Q3 2025, compared to $62.0 million in Q3 2024 [4][29] Operational Highlights - The company reported record crude gathering volumes in its Delaware Business, contributing to the overall increase in operational efficiency [2][14] - Progress has been made on the development of sour gas gathering and acid gas injection capabilities at the Libby Complex, which is expected to enhance service offerings to producer customers [3][14] - The Gathering and Processing segment saw an Adjusted EBITDA of $82.8 million in Q3 2025, up from $55.0 million in Q3 2024, primarily due to acquisitions [9][14] Debt and Liquidity - As of September 30, 2025, Delek Logistics had total debt of approximately $2.3 billion and cash of $6.9 million, resulting in a leverage ratio of approximately 4.44x [7][14] - The company has an additional borrowing capacity of $1.0 billion under its $1.2 billion revolving credit facility [7][14] Segment Performance - The Wholesale Marketing and Terminalling segment reported Adjusted EBITDA of $21.4 million in Q3 2025, down from $24.7 million in Q3 2024, primarily due to the assignment of a marketing agreement [10][14] - The Investments in Pipeline Joint Ventures segment saw income from equity method investments increase to $21.9 million in Q3 2025, compared to $15.6 million in Q3 2024 [12][14]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: High-Yielding Stocks in Energy Sector - Vitesse Energy Inc (NYSE:VTS) has a dividend yield of 10.17%. Analyst Chris Baker from Evercore ISI Group maintained an In-Line rating and reduced the price target from $22 to $20, while analyst John White from Roth MKM maintained a Buy rating and increased the price target from $30.5 to $33 [7] - Delek Logistics Partners LP (NYSE:DKL) has a dividend yield of 9.76%. Analyst Gabriel Moreen from Mizuho maintained a Neutral rating and raised the price target from $44 to $45, while analyst Justin Jenkins from Raymond James maintained an Outperform rating and increased the price target from $44 to $46 [7] - Western Midstream Partners LP (NYSE:WES) has a dividend yield of 9.42%. Analyst Spiro Dounis from Citigroup reinstated a Neutral rating with a price target of $39, while analyst Robert Kad from Morgan Stanley maintained an Underweight rating and lowered the price target from $41 to $39 [7]

BRENTWOOD, Tenn.--(BUSINESS WIRE)--Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics†) today announced that the Partnership intends to issue a press release summarizing third quarter 2025 results before the U.S. stock market opens on Friday, November 7, 2025. A conference call to discuss these results is scheduled to begin at 11:00 a.m. CT (12:00 p.m. ET) on Friday, November 7, 2025. The live broadcast of this conference call will be available online by going to www.DelekLogistics.com. ...