Delek Logistics(US:DKL)2025-11-07 11:31Financial 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].