Delek Logistics(US:DKL)2026-02-27 11:32Financial Performance - Delek Logistics reported a record net income of $47.3 million, or $0.88 per diluted common limited partner unit, for Q4 2025, compared to $35.3 million, or $0.68 per unit, in Q4 2024[4] - Adjusted EBITDA for Q4 2025 was $142.3 million, up from $114.3 million in Q4 2024, reflecting a $28.0 million increase due to H2O Midstream and Gravity operations[7] - Total net revenues for Q4 2025 reached $255.8 million, a 21.9% increase from $209.9 million in Q4 2024[28] - Operating income for Q4 2025 was $36.4 million, compared to $38.0 million in Q4 2024, reflecting a decrease of 4.1%[28] - Net income for Q4 2025 was $47.3 million, up 33.9% from $35.3 million in Q4 2024[28] - Adjusted EBITDA for Q4 2025 was $142.3 million, a 24.5% increase from $114.3 million in Q4 2024[30] - Distributable cash flow for Q4 2025 was $73.3 million, compared to $69.5 million in Q4 2024, reflecting a 4.0% increase[30] - The company reported a basic net income per unit of $0.88 for Q4 2025, up from $0.68 in Q4 2024[28] - Total revenue for the three months ended December 31, 2025, was $255,766,000, up from $209,863,000 in the same period of 2024, reflecting a growth of 22%[33] - Adjusted EBITDA for the year ended December 31, 2025, reached $535,567,000, compared to $433,761,000 in 2024, marking an increase of 23.5%[34] - Net income for the year ended December 31, 2025, was $176,460,000, a significant rise from $142,685,000 in 2024, showing an increase of 23.6%[34] Cash and Debt Management - As of December 31, 2025, total debt was approximately $2.3 billion, with a leverage ratio of approximately 4.07x and cash of $10.9 million[7] - Cash and cash equivalents increased to $10.9 million at the end of Q4 2025, compared to $5.4 million at the end of Q4 2024[29] - Long-term debt increased to $2.34 billion as of December 31, 2025, up from $1.88 billion in 2024, representing a 24.7% rise[27] - Total current liabilities increased to $356.5 million as of December 31, 2025, compared to $88.8 million in 2024, a significant rise of 301.5%[27] - The distributable cash flow coverage ratio for the year ended December 31, 2025, was 1.21x, compared to 1.18x for 2024, indicating improved cash flow relative to distributions[31] Operational Highlights - The successful startup of the Libby 2 gas plant and the acquisition of Gravity Water Midstream were key highlights for 2025, contributing to the company's economic separation from its sponsor[3] - The company achieved record crude gathering volumes in its Delaware Basin operations, indicating strong operational performance[3] - Adjusted EBITDA for the Storage and Transportation Segment increased to $34.7 million in Q4 2025, compared to $17.8 million in Q4 2024, primarily due to increased interest income from sales-type leases[12] - Income from equity method investments was $19.2 million in Q4 2025, up from $11.3 million in Q4 2024, driven by the impacts of the W2W dropdown[13] Capital Expenditures - Total capital spending for the year ended December 31, 2025, was $252.1 million, a significant increase from $140.0 million in 2024, representing an 80% year-over-year growth[35] - The Gathering and Processing segment's growth capital spending reached $235.9 million for the year ended December 31, 2025, compared to $127.3 million in 2024, indicating an 85% increase[35] - Total segment capital spending for the Gathering and Processing segment was $27.9 million in Q4 2025, compared to $44.8 million in Q4 2024, a decrease of 38%[35] - Regulatory capital spending for the consolidated segment was $1.0 million in Q4 2025, compared to $852,000 in Q4 2024, an increase of 17%[35] - Sustaining capital spending for the Gathering and Processing segment was $2.9 million in Q4 2025, compared to $307,000 in Q4 2024, a significant increase[35] Throughput and Margins - Average throughput for the Midland Gathering System was 237,681 bpd in Q4 2025, up from 200,705 bpd in Q4 2024, reflecting an 18% increase[36] - The average bpd for crude oil gathering in the Delaware Gathering Assets was 140,790 in Q4 2025, compared to 123,346 bpd in Q4 2024, marking a 14% increase[36] - The average gross margin per barrel for West Texas marketing was $3.48 in Q4 2025, down from $4.35 in Q4 2024, representing a 20% decline[36] - The average throughput for terminalling in Q4 2025 was 147,041 bpd, slightly down from 151,309 bpd in Q4 2024, a decrease of 3%[36] - The average throughput for the El Dorado Gathering System was 8,483 bpd in Q4 2025, down from 13,883 bpd in Q4 2024, indicating a 39% decrease[36] Management Commitment - Delek Logistics remains committed to long-term value creation for unitholders through prudent management of liquidity and leverage[3]