UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 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 | | --- | - ...

Delek Logistics Partners (DKL) Q2 2025 Earnings Call August 06, 2025 12:30 PM ET Company ParticipantsRobert Wright - EVP & CFOAvigal Soreq - President, CEO & DirectorReuven Spiegel - EVP - Special Projects & DirectorDoug Irwin - Vice PresidentMohit Bhardwaj - EVP - Strategy, Business Development & IRGabriel Moreen - Managing DirectorOperatorThank 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 Se ...

Financial Data and Key Metrics Changes - The company reported approximately $120 million in quarterly adjusted EBITDA, an increase from $102 million in the same period of 2024, indicating a year-over-year growth of approximately 17.6% [12] - Distributable cash flow as adjusted was $73 million, with a DCF coverage ratio of approximately 1.22 times, expected to rise as growth projects contribute to results [13] - The full-year EBITDA guidance remains between $480 million to $520 million [12][15] Business Line Data and Key Metrics Changes - For the Gathering and Processing segment, adjusted EBITDA was $78 million compared to $55 million in 2024, primarily due to acquisitions [13] - Wholesale Marketing and Terminalling adjusted EBITDA decreased to $23 million from $30 million in the prior year, attributed to last summer's agreements [13] - Storage and transportation adjusted EBITDA remained stable at $17 million, while investments in pipeline joint ventures contributed $11 million, up from $8 million in 2024 [13] Market Data and Key Metrics Changes - The company is focused on enhancing its competitive position in both Midland and Delaware Basins through water acquisitions and increased dedication [5] - The integration of two water gathering systems is progressing well, expected to enhance crude and water offerings in specific counties [11] Company Strategy and Development Direction - The company aims to strengthen its position as a premier full-service provider in the Permian Basin, with ongoing efforts in acid gas injection and sour gas handling capabilities [4][5] - The successful commissioning of the new Libbey plant is expected to fill to capacity in 2025, contributing to future growth [4][8] - The company intends to remain prudent in managing leverage and coverage while rewarding stakeholders through leading distributions, with a recent increase to $1.115 per unit [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the EBITDA guidance despite commodity price volatility, citing strong relationships with producers and low breakeven costs in the area [36][38] - The company is optimistic about the uptick in crude volumes for Q3, indicating a strong start to the second half of the year [37] Other Important Information - The capital expenditures for the second quarter were approximately $119 million, with $115 million allocated to growth projects, including the completion of the Libbey II gas processing plant [15] - The company has increased its liquidity by $700 million through a high-yield notes offering, bringing total availability to over $1 billion [12] Q&A Session Summary Question: Trends in processing plant volumes and potential expansions - Management confirmed that the commissioning of the plant was completed on time and is currently flowing gas, expecting to reach full capacity by year-end [20][21] Question: Competitive environment for sour gas treating capacity - Management acknowledged the recent asset transactions in the Delaware Basin and emphasized their comprehensive strategy around natural gas, which includes gathering, treating, and processing [24][26] Question: M&A opportunities and market outlook - Management stated that any M&A activity would need to be free cash flow accretive and align with their strategy, while also being open to both acquisition and divestiture opportunities [32][34] Question: Producer plans and guidance outlook - Management reiterated confidence in their guidance, citing strong relationships with producers and favorable conditions in the Permian Basin [36][38]

Exhibit 99.2 Second Quarter 2025 Earnings Conference Call August 6, 2025 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 securities laws that a ...

Exhibit 99.1 As of June 30, 2025, Delek Logistics had total debt of approximately $2.2 billion and cash of $1.4 million and a leverage ratio of approximately 4.32x. Additional borrowing capacity under the $1.2 billion third party revolving credit facility was $1.1 billion. Delek Logistics Reports Record Second Quarter 2025 Results BRENTWOOD, Tenn., August 6, 2025 -- Delek Logistics Partners, LP (NYSE: DKL) ("Delek Logistics") today announced its financial results for the second quarter 2025. "During the sec ...

Delek US Holdings, Inc. Investor Presentation March 2018 Disclaimers Forward Looking Statements: Delek US Holdings, Inc. ("Delek US") and Delek Logistics Partners, LP ("Delek Logistics"; collectively with Delek US, defined as "we", "our") are traded on the New York Stock Exchange in the United States under the symbols "DK" and "DKL", respectively, and, as such, are governed by the rules and regulations of the United States Securities and Exchange Commission. These slides and any accompanying oral and writte ...

Strategy and Operations - DKL's strategy focuses on operational excellence, continuous optimization, strategic growth, and financial strength in the Permian Basin[14, 16, 17, 18] - The company aims to increase third-party cash flows to become a strong independent midstream company[21] - DKL is uniquely positioned to capitalize on Delaware natural gas production growth, particularly in sour gas handling[24, 36] - The company is expanding the Libby Complex Gas Plant to enhance its competitive position in the Northern Lea County through Acid Gas Injection (AGI) capabilities, targeting over 20% cash-on-cash returns[32, 36] Financial Performance and Outlook - DKL's adjusted EBITDA is projected to be between $480 million and $520 million in 2025[64] - The company expects to maintain a distribution coverage ratio of approximately 130% by the end of 2025 and anticipates continued distribution growth[64] - In 2024, DKL's adjusted EBITDA was $418 million, up from $385 million in 2023, representing a CAGR of 135% from 2021 to 2025E[63] - DKL's distribution per unit has consistently increased, reaching $4365 in 2024[63] Acquisitions and Joint Ventures - DKL acquired Gravity Water Holdings LLC on January 2, 2025, for $2093 million in cash and 2175209 DKL common units[57] - DKL owns a 156% interest in the Wink to Webster crude pipeline system, enhancing fee-based earnings and distributable cash flow[48, 70] - The company has ownership interests in joint venture assets like RIO Pipeline (33%), Caddo Pipeline (50%), and Red River Pipeline (33%), supporting its crude value chain[46, 47, 48]

Core Viewpoint - Companies like AGNC Investment, Annaly Capital Management, and Delek Logistics Partners are identified as "monster dividend stocks" with yields exceeding 10%, making them attractive for generating passive income [1]. Group 1: AGNC Investment - AGNC Investment offers a dividend yield of over 16%, significantly higher than the S&P 500's yield of less than 1.5% [3]. - As a REIT, AGNC is required to distribute at least 90% of its taxable net income as dividends, contributing to its high yield [4]. - The company utilizes leverage to enhance returns, with potential returns in the low 20% range, but this strategy carries risks during market downturns [5]. Group 2: Annaly Capital Management - Annaly Capital Management, another mortgage REIT, has a dividend yield approaching 15% and has recently increased its dividend due to improved earnings [7]. - The REIT invests primarily in Agency MBS and has also ventured into higher-risk residential credit investments and mortgage servicing rights [6][8]. - Historical performance shows that Annaly has had to cut dividends in the past due to declining earnings, indicating a higher risk-reward profile [8]. Group 3: Delek Logistics Partners - Delek Logistics Partners operates as a master limited partnership (MLP) with a dividend yield of nearly 10.5%, the highest in the energy midstream sector [10]. - The MLP has consistently raised its distribution for 49 consecutive quarters, with a 3.7% increase over the past year [10]. - Its business model is supported by stable cash flows from long-term contracts, and it is diversifying its earnings by reducing reliance on its parent company [11].

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].