Financial Data and Key Metrics Changes - The company reported approximately $117 million in quarterly adjusted EBITDA, an increase from $102 million in the same period of 2024, indicating a strong performance [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 capital program for the first quarter was approximately $72 million, with $52 million attributed to the construction of the Libbey II gas processing plant [15][16] Business Line Data and Key Metrics Changes - For the Gathering and Processing segment, adjusted EBITDA was $81 million compared to $50 million in Q1 2024, primarily due to acquisitions [14] - Wholesale marketing and terminalling adjusted EBITDA decreased to $18 million from $25 million, attributed to seasonal weather impacts [14] - Storage and transportation adjusted EBITDA was $14 million, down from $18 million, due to renegotiation impacts [14] - Investments in the pipeline joint venture segment contributed $10 million, up from $8 million in Q1 2024 [14] Market Data and Key Metrics Changes - The company is increasing its economic separation from DK, with third-party contributions to cash flow rising from 70% to around 80% on a pro forma basis [4][20] - The Delaware Basin is expected to continue growing, with the company maintaining a competitive position despite near-term crude price volatility [5][6] Company Strategy and Development Direction - The company is focused on enhancing its competitive position in the Midland and Delaware Basins through acquisitions and operational improvements [5][9] - The commissioning of the Libbey II gas plant is expected to add 100 million to 120 million cubic feet per day of incremental capacity [9][10] - The company aims to improve margins across operations while managing liquidity and leverage effectively [12][16] 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 anticipates continued value creation and growth in distributions moving forward [6][16] Other Important Information - The Board of Directors approved a 49th consecutive increase in the quarterly distribution to $1.11 per unit [6] - The company has authorization to buy back common units of up to $150 million from DK through 2026, with $10 million repurchased in Q1 [12] 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 gas plant ramp-up - Management noted that CapEx was heavy in the first half, with limited material investment expected in the second half, and emphasized the importance of the Libbey II gas plant for meeting existing demand and supporting acreage growth [26][27]

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]

Financial Data and Key Metrics Changes - Delek reported a net loss of $173 million or negative $2.78 per share for Q1 2025, with an adjusted net loss of $144 million or negative $2.32 per share and adjusted EBITDA of $26.5 million [19][20] - The increase in adjusted EBITDA was driven by a $42.2 million increase in refining due to a higher margin environment and sequentially higher throughputs [19] - Logistics segment delivered $117 million in adjusted EBITDA, a $9 million increase over the previous record [20] Business Line Data and Key Metrics Changes - Total throughput in Tyler was approximately 69,000 barrels per day with a production margin of $7.82 per barrel [13] - El Dorado's total throughput was approximately 76,000 barrels per day with a production margin of $3.83 per barrel [14] - Big Spring's throughput was approximately 59,000 barrels per day with a production margin of $4.86 per barrel [15] - Cross Springs achieved a record throughput of approximately 85,000 barrels per day with a production margin of $6.4 per barrel [16] Market Data and Key Metrics Changes - The refining margin environment was around $4 below mid-cycle, impacting overall performance [4] - Supply and marketing contributed a loss of $23.7 million, driven by seasonal low demand trends in wholesale marketing and asphalt [17] Company Strategy and Development Direction - The company is focused on a sum of the parts strategy and midstream deconsolidation, aiming to increase third-party cash flow at DKL to around 80% [7][8] - The Enterprise Optimization Plan (EOP) aims to improve cash flow by $120 million annually starting in the second half of 2025 [9] - The company is committed to a disciplined approach to capital allocation, including share buybacks and dividends [10] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational improvements and the potential for a cleaner runway into the summer driving season [6] - The company remains optimistic about the prospects for 2025 and beyond, particularly in light of the support for domestic energy production [11] Other Important Information - The company paid $16 million in dividends and repurchased $32 million of its shares during the quarter [9] - The company expects operating expenses for Q2 2025 to be between $215 million and $225 million, reflecting higher throughput [22] Q&A Session Summary Question: Discussion on DKL and full year EBITDA guidance - Management reiterated guidance for DKL, highlighting strong positions in both Midland and Delaware areas, with expectations for high volumes [28] Question: Capital returns strategy and sustainability of dividend yield - Management emphasized a focus on free cash flow and a balanced approach between buybacks and dividends, indicating confidence in share price value [31][35] Question: Supply and marketing improvements in Q2 - Management noted strong demand and positive trends in RAC, with expectations for further improvements in wholesale marketing and asphalt categories [40][41] Question: Dynamics in the Southwest market - Management reported strong cracks in the Southwest, particularly in Arizona markets, countering concerns about sluggish starts [44] Question: Small refinery exemptions (SREs) - Management confirmed that SREs would be pursued retroactively from 2019, with optimism about receiving support from the EPA [49][52] Question: Opportunities for upside beyond EOP targets - Management acknowledged potential for upside beyond the $120 million target, with ongoing focus on operational improvements [57] Question: Intercompany transactions and their impact - Management clarified that recent intercompany transactions are aimed at optimizing asset allocation and enhancing deconsolidation efforts [71][72] Question: Operational expenditure guidance - Management explained that increased OpEx guidance is primarily due to the addition of a new natural gas plant, with expectations for further improvements in the second half of the year [92][93]

Financial Performance & Liquidity - Delek Logistics reported another record quarter[10] - Delek US increased consolidated financial liquidity by approximately $250 million[11, 26] - Delek US spent $32 million in buybacks and $16 million in dividends, representing approximately a 20% yield[11] - Delek US reiterates 2025 Adjusted EBITDA guidance of $480 - $520 million[11] - Delek US's net loss was $(172.7) million, or $(2.78) per share, but adjusted net loss was $(144.4) million, or $(2.32) per share[49] - Delek US's Adjusted EBITDA was $26.5 million[49] Strategic Objectives & Initiatives - Delek is on track to achieve at least $120 million cash flow improvement through the enterprise optimization plan (EOP)[11, 13, 16] - Delek Logistics' third-party contribution is expected to increase to approximately 80% on a pro-forma basis due to new intercompany transactions[11, 13, 26, 34] - El Dorado's EOP initiatives are focused on generating free cash flow through cycle, with a $50 million margin improvement plan[19] Operational Throughput - Total refining throughput for 1Q25 was 2892 MBPD[47] - Tyler throughput was 348 MBPD in 4Q24 and 2665 MBPD in 1Q25[47]

Financial Performance - Delek Logistics reported a net income of $39.0 million, or $0.73 per diluted common limited partner unit, for Q1 2025, compared to $32.6 million in Q1 2024[4]. - Adjusted EBITDA for Q1 2025 was $116.5 million, reflecting a 15% increase year-over-year from $101.5 million in Q1 2024[5][8]. - Total net revenues for Q1 2025 were $249.93 million, a slight decrease from $252.08 million in Q1 2024, representing a 0.5% decline[28]. - Operating income for Q1 2025 was $47.60 million, down from $64.54 million in Q1 2024, reflecting a decrease of 26.3%[28]. - Net income for Q1 2025 increased to $39.03 million compared to $32.65 million in Q1 2024, marking a growth of 19.4%[28]. - Distributable cash flow for Q1 2025 was $71.71 million, up from $67.99 million in Q1 2024, indicating a 5.0% increase[30]. - The distributable cash flow coverage ratio for Q1 2025 was 1.21x, down from 1.35x in Q1 2024[31]. - Total segment EBITDA for Q1 2025 was $85.49 million, compared to $101.50 million in Q1 2024, reflecting a decrease of about 15.7%[32]. Debt and Assets - Total debt as of March 31, 2025, was approximately $2.15 billion, with a leverage ratio of about 4.21x[7]. - Long-term debt increased to $2.15 billion in Q1 2025 from $1.88 billion in Q1 2024, representing a rise of 14.3%[27]. - Total assets increased to $2.40 billion as of March 31, 2025, compared to $2.04 billion at the end of 2024, reflecting a growth of 17.4%[27]. Cash Flow - Net cash provided by operating activities was $31.6 million in Q1 2025, down from $43.9 million in Q1 2024[4]. - Cash and cash equivalents at the end of Q1 2025 were $2.11 million, a decrease from $9.67 million at the end of Q1 2024[29]. - Cash flows from operating activities decreased to $31.55 million in Q1 2025 from $43.86 million in Q1 2024, a decline of 28.1%[29]. Capital Expenditures - Capital spending in Q1 2025 totaled $71.94 million, significantly higher than $15.17 million in Q1 2024, indicating a year-over-year increase of approximately 373%[33]. - Growth capital spending in Q1 2025 was $71.30 million, compared to $13.89 million in Q1 2024, indicating a significant increase of approximately 413%[33]. Operational Metrics - The acquisition of Gravity Water Midstream was completed on January 2, 2025, contributing to the increase in third-party cash flow to approximately 80%[3][10]. - The new Libby 2 plant is being commissioned to expand processing capacity in Lea County, NM[10]. - Average throughput for the Midland Gathering System in Q1 2025 was 246,090 bpd, up from 213,458 bpd in Q1 2024, showing an increase of about 15.3%[34]. - The average bpd for crude pipelines (non-gathered) in El Dorado assets decreased to 61,888 bpd in Q1 2025 from 73,011 bpd in Q1 2024, a decline of approximately 15.3%[34]. - The average bpd for water disposal and recycling in the Midland Water Gathering System was 632,972 bpd in Q1 2025, with no prior year data available for comparison[34]. Market Performance - The company experienced a decline in wholesale marketing and terminalling segment Adjusted EBITDA, which was $17.8 million in Q1 2025 compared to $25.3 million in Q1 2024[12]. - The West Texas gross margin per barrel decreased to $1.64 in Q1 2025 from $2.15 in Q1 2024, a decline of approximately 23.7%[34].

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]

Core Insights - Tomas Riba is an economist and former CFO focused on investing in high-quality companies that can compound cash flow over the long term [1] - His investment strategy emphasizes companies with strong competitive advantages, operating in growing industries, expanding margins, low debt, and aligned management [1] Background and Experience - Tomas Riba began his journey in financial markets at a young age and has been investing since 2007 [1] - He has a background in accounting and has served as CFO for a holding company involved in various sectors including pharma, medical devices, textiles, food, and real estate [1] - Currently, he teaches courses on "Derivatives for risk management" and "Investment analysis" at a Master's Degree program in Financial Management [1]

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 ...