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]

Financial Performance - Delek Logistics reported a net income of $45.6 million, or $0.85 per diluted common limited partner unit, for Q3 2025, compared to $33.7 million, or $0.71 per diluted common limited partner unit, in Q3 2024[4]. - Adjusted EBITDA for Q3 2025 was $136.0 million, reflecting a 27% increase year-over-year from $106.8 million in Q3 2024[5][8]. - The company increased its full-year Adjusted EBITDA guidance to $500 - $520 million due to strong operational performance[3]. - Total net revenues for Q3 2025 reached $261.3 million, a 22% increase from $214.1 million in Q3 2024[28]. - Net income for Q3 2025 was $45.6 million, compared to $33.7 million in Q3 2024, reflecting a 35% year-over-year growth[28]. - Adjusted EBITDA for Q3 2025 was $136.0 million, up from $106.8 million in Q3 2024, representing a 27% increase[30]. - Total revenue for Q3 2025 reached $261,277, a 22% increase compared to $214,070 in Q3 2024[33]. - Adjusted EBITDA for Q3 2025 was $135,978, significantly higher than $106,829 in Q3 2024, reflecting a 27% growth[33]. - Net income for Q3 2025 was $45,560, compared to $33,674 in Q3 2024, marking a 35% increase[33]. - Total revenue for the nine months ended September 30, 2025, was $757,557, up 3.7% from $730,773 in the same period of 2024[34]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $373,410, compared to $310,722 in the same period of 2024, indicating a 20% increase[34]. Cash Flow and Distributions - Delek Logistics declared a quarterly cash distribution of $1.120 per common limited partner unit for Q3 2025, marking a 0.4% increase from Q2 2025 and a 1.8% increase from Q3 2024[6]. - Cash provided by operating activities was $54.9 million in Q3 2025, significantly higher than $24.9 million in Q3 2024[4]. - The company reported a net cash provided by operating activities of $54.9 million for Q3 2025, compared to $24.9 million in Q3 2024[29]. - Distributable cash flow for Q3 2025 was $73,584, up 38% from $53,283 in Q3 2024[31]. - The distributable cash flow coverage ratio increased to 1.23x in Q3 2025 from 0.94x in Q3 2024[31]. - The distributable cash flow, as adjusted, for Q3 2025 was $74,147, up from $61,959 in Q3 2024, reflecting a 19.5% increase[31]. Debt and Assets - Total debt as of September 30, 2025, was approximately $2.3 billion, with a leverage ratio of about 4.44x[7]. - Long-term debt rose to $2.3 billion as of September 30, 2025, up from $1.9 billion at the end of 2024[27]. - Total liabilities increased to $2.7 billion as of September 30, 2025, compared to $2.0 billion at the end of 2024[27]. - The company’s total assets reached $2.7 billion as of September 30, 2025, compared to $2.0 billion at the end of 2024[27]. - Total current assets increased significantly to $382.8 million as of September 30, 2025, compared to $145.9 million at the end of 2024[27]. Operational Highlights - The Gathering and Processing segment reported Adjusted EBITDA of $82.8 million in Q3 2025, up from $55.0 million in Q3 2024, primarily due to acquisitions[9]. - Income from equity method investments increased to $21.9 million in Q3 2025, compared to $15.6 million in Q3 2024, driven by the W2W dropdown[14]. - The company achieved record crude gathering volumes in its Delaware Business during Q3 2025[12]. - Average throughput for the Gathering and Processing segment's crude pipelines (non-gathered) was 71,802 bpd in Q3 2025, compared to 68,430 bpd in Q3 2024, reflecting a 3.9% increase[36]. - The average gross margin per barrel for West Texas marketing increased to $4.50 in Q3 2025, up from $3.38 in Q3 2024, representing a 33.1% improvement[36]. - The average daily throughput for the Midland Water Gathering System was 616,484 bpd in Q3 2025, a substantial increase from 311,290 bpd in Q3 2024, indicating a 98.1% growth[36]. - The El Dorado Gathering System's average throughput decreased to 9,053 bpd in Q3 2025 from 13,886 bpd in Q3 2024, a decline of 34.1%[36]. - The average throughput for the East Texas - Tyler Refinery was 67,439 bpd in Q3 2025, slightly down from 70,172 bpd in Q3 2024, a decrease of 3.5%[36]. Capital Expenditures - Capital spending for Q3 2025 was $49,630, down from $65,198 in Q3 2024[33]. - The company reported transaction costs of $563 in Q3 2025, compared to $8,676 in Q3 2024[33]. - Total capital spending for the three months ended September 30, 2025, was $49.63 million, a decrease of 23.9% from $65.20 million in the same period of 2024[35]. - Growth capital spending for the nine months ended September 30, 2025, reached $229.92 million, significantly higher than $82.87 million in the same period of 2024[35]. - Regulatory capital spending for the consolidated segment was $785,000 in Q3 2025, slightly up from $745,000 in Q3 2024[35]. - Sustaining capital spending for the Gathering and Processing segment was $3.28 million in Q3 2025, compared to $284,000 in Q3 2024, showing a significant increase[35]. - Total segment capital spending for the Storage and Transportation segment was $1.39 million in Q3 2025, compared to $1.91 million in Q3 2024, reflecting a decrease of 27.3%[35].

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]

Core Points - Delek Logistics Partners, LP plans to issue a press release summarizing its third quarter 2025 results before the U.S. stock market opens on November 7, 2025 [1] - A conference call to discuss the results is scheduled for 11:00 a.m. CT (12:00 p.m. ET) on the same day [1] - The live broadcast of the conference call will be available online at the company's website [1]

Core Insights - Investors are increasingly turning to dividend-yielding stocks during market turbulence and uncertainty, as these companies typically have high free cash flows and offer substantial dividend payouts [1] Group 1: High-Yielding Stocks in Energy Sector - Mach Natural Resources LP (NYSE:MNR) has a dividend yield of 18.53%. Analyst John Freeman from Raymond James maintained a Strong Buy rating and raised the price target from $21 to $22, with an accuracy rate of 75%. Stifel analyst Selman Akyol also maintained a Buy rating, increasing the price target from $21 to $23, with an accuracy rate of 71%. Recently, Mach Natural Resources filed for a mixed shelf of up to $250 million [3][7] - Delek Logistics Partners LP (NYSE:DKL) has a dividend yield of 10.36%. Mizuho analyst Gabriel Moreen maintained a Neutral rating and raised the price target from $44 to $45, with an accuracy rate of 68%. Raymond James analyst Justin Jenkins maintained an Outperform rating, increasing the price target from $44 to $46, with an accuracy rate of 77%. Delek Logistics posted weaker-than-expected quarterly results on August 6 [4][7] - Vitesse Energy Inc (NYSE:VTS) has a dividend yield of 10.19%. Evercore ISI Group analyst Chris Baker maintained an In-Line rating and cut the price target from $22 to $20, with an accuracy rate of 69%. Roth MKM analyst John White maintained a Buy rating, increasing the price target from $30.5 to $33, with an accuracy rate of 63%. Vitesse Energy reported upbeat quarterly sales on August 4 [5][7]

Group 1: Company Analysis - Chevron Corp is highlighted for its strong performance in the energy sector, benefiting from rising oil prices and increased demand for energy [1] - Cogent Communications Holdings Inc is noted for its growth in the telecommunications industry, with a focus on expanding its fiber network to meet increasing data demands [1] - T-Mobile US Inc continues to show robust subscriber growth, driven by competitive pricing and enhanced network capabilities [1] Group 2: Industry Trends - The energy sector is experiencing a rebound, with oil prices climbing significantly, which is positively impacting companies like Chevron [1] - The telecommunications industry is undergoing rapid transformation, with companies like Cogent Communications investing heavily in infrastructure to support higher data usage [1] - The competitive landscape in the telecom sector is intensifying, with T-Mobile US Inc leveraging its market position to attract new customers [1]

Core Viewpoint - Delek Logistics Partners, L.P. (DKL) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Company Performance and Outlook - The upgrade reflects an improvement in Delek Logistics Partners' underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - The Zacks Consensus Estimate for Delek Logistics Partners indicates expected earnings of $3.93 per share for the fiscal year ending December 2025, with a 0.8% increase in estimates over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have generated an average annual return of +25% since 1988 [7]. - The upgrade to Zacks Rank 2 places Delek Logistics Partners in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].