Delek Logistics Reports Record Third Quarter 2025 Results

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]