Financial Data and Key Metrics Changes - Delek Logistics achieved a record Adjusted EBITDA of $536 million for 2025, reflecting strong execution across its businesses and the addition of high-quality acquisitions [3] - Adjusted EBITDA for Q4 was approximately $142 million, up from $114 million in the same period last year, and $6 million higher than the previous record set in Q3 [11] - Distributable cash flow (DCF) as adjusted totaled $73 million, with a DCF coverage ratio of approximately 1.22x [11] Business Line Data and Key Metrics Changes - In the Gathering and Processing segment, Adjusted EBITDA for Q4 was $71 million compared to $66 million in Q4 2024, primarily due to the acquisitions of H2O and Gravity [12] - Storage and transportation Adjusted EBITDA increased to $35 million from $18 million in Q4 2024, reflecting the sale of certain assets to DK [12] - The investments in pipeline joint ventures contributed $26 million in Q4, up from $18 million in the same quarter last year [12] Market Data and Key Metrics Changes - Approximately 80% of the run rate EBITDA in 2026 is expected to come from third parties, indicating increased economic separation from the sponsor, DK [7] - The company is focusing on the Delaware Basin, where the need for sour gas solutions is urgent, and anticipates a step change in utilization once the sour gas gathering infrastructure is complete [8] Company Strategy and Development Direction - Delek Logistics aims to be a premier full-service provider in the Permian Basin, focusing on natural gas, crude, and water businesses [3] - The company announced a 2026 EBITDA guidance range of $520 million to $560 million, reflecting growth opportunities while managing leverage and coverage [5] - The integration of H2O and Gravity has strengthened the company's competitive position and growth platform [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth and long-term value for unit holders, supported by a strong financial position with approximately $940 million in available liquidity [11] - The management highlighted the importance of optimizing synergies and executing strategic priorities to capture the value of recent investments [10] Other Important Information - The Board of Directors approved the 52nd consecutive quarterly distribution increase, raising the distribution to $1.125 per unit, marking 13 consecutive years of distribution growth [5] - Total capital spending for Q4 was approximately $32 million, with $26 million allocated to growth capital related to sour gas capabilities at the Libby complex [13] Q&A Session Summary Question: Growth expectations for the GMT segment - Management discussed the variance in guidance and emphasized a clear strategy focused on crude, gas, and water in the Permian Basin, highlighting a return on investment of 1x-3x [16][17] Question: EBITDA impact from transactions with DK - Management noted that the transactions helped further economic separation, with 82% of EBITDA now coming from third-party businesses, and indicated that the impact on EBITDA was not material to either entity [22][23] Question: Next steps on Libby processing expansion - Management mentioned prior investments for future expansion and is closely monitoring customer activity in the area, indicating positive macro and micro conditions [28][29] Question: Thoughts on sour gas midstream M&A - Management stated that Delek Logistics remains open to acquisitions but will only pursue deals that are accretive to free cash flow and maintain financial discipline [34]

Financial Data and Key Metrics Changes - Delek Logistics achieved a record Adjusted EBITDA of $536 million for 2025, reflecting strong execution across its businesses [3] - Adjusted EBITDA for Q4 was approximately $142 million, up from $114 million in the same period last year, and $6 million higher than the previous record set in Q3 [11] - Distributable cash flow (DCF) as adjusted totaled $73 million, with a DCF coverage ratio of approximately 1.22 times [11] Business Line Data and Key Metrics Changes - In the Gathering and Processing segment, Adjusted EBITDA for Q4 was $71 million compared to $66 million in Q4 2024, primarily due to acquisitions of H2O and Gravity [12] - Storage and transportation Adjusted EBITDA increased to $35 million from $18 million in Q4 2024, driven by the sale of certain assets to DK [12] - Investments in pipeline joint ventures contributed $26 million in Q4, compared to $18 million in the same quarter last year [12] Market Data and Key Metrics Changes - Approximately 80% of the run rate EBITDA in 2026 is expected to come from third parties, indicating increased economic separation from the sponsor, DK [7] - The company is focusing on the Delaware Basin, where the demand for sour gas solutions is increasing, necessitating further processing capacity [8] Company Strategy and Development Direction - Delek Logistics aims to be a premier full-service provider in the Permian Basin, focusing on natural gas, crude, and water businesses [3] - The company announced a 2026 EBITDA guidance range of $520 million to $560 million, reflecting growth opportunities while managing leverage and coverage [5] - The integration of H2O and Gravity has strengthened the company's competitive position and growth platform [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth and long-term value for unit holders [6] - The company is optimistic about the growth potential in the Delaware gas business, which is expected to be a significant growth engine [20] - Management highlighted the importance of maintaining financial discipline while pursuing growth opportunities [10] Other Important Information - The board approved a distribution increase to $1.125 per unit, marking 13 consecutive years of distribution growth [5] - Total capital expenditures for Q4 were approximately $32 million, with $26 million allocated to growth capital [13] Q&A Session Summary Question: Growth expectations for the GMT segment - Management discussed the clear strategy in crude, gas, and water, emphasizing a return on investment of 1-3 times, which is beneficial for coverage and leverage ratios [17] Question: EBITDA impact from transactions with DK - Management noted that these transactions have furthered the economic separation of the two entities, with 82% of DKL's EBITDA now coming from third-party businesses [23] Question: Next steps on Libby processing expansion - Management indicated that they are looking at future expansions and are optimistic about the macro and micro conditions in the area [28] Question: Thoughts on sour gas midstream M&A - Management stated that they are open to acquisitions but will only pursue deals that are accretive to free cash flow and maintain their financial principles [34]

Financial Data and Key Metrics Changes - Delek Logistics achieved a record Adjusted EBITDA of $536 million for 2025, reflecting strong execution across its businesses and the addition of high-quality acquisitions [3][5] - Adjusted EBITDA for Q4 2025 was approximately $142 million, up from $114 million in Q4 2024, and $6 million higher than the previous record set in Q3 2025 [12] - Distributable cash flow (DCF) as adjusted totaled $73 million, with a DCF coverage ratio of approximately 1.22 times [12] Business Line Data and Key Metrics Changes - The Gathering and Processing segment reported Adjusted EBITDA of $71 million for Q4 2025, compared to $66 million in Q4 2024, primarily due to the acquisitions of H2O and Gravity [12][13] - Storage and transportation Adjusted EBITDA increased to $35 million in Q4 2025 from $18 million in Q4 2024, driven by the sale of certain assets to DK [13] - The investments in pipeline joint ventures contributed $26 million in Q4 2025, up from $18 million in Q4 2024, reflecting strong performance from the Wink to Webster joint venture [13] Market Data and Key Metrics Changes - Approximately 80% of the run rate EBITDA in 2026 is expected to come from third parties, indicating increased economic separation from the sponsor, DK [7][23] - The company is focusing on the Delaware Basin, where the need for sour gas solutions is urgent, and anticipates a step change in utilization once the sour gas gathering infrastructure is complete [9][21] Company Strategy and Development Direction - Delek Logistics aims to position itself as a premier full-service provider in the Permian Basin, with a focus on natural gas, crude, and water businesses [3][4] - The company announced a 2026 EBITDA guidance range of $520 million to $560 million, reflecting growth opportunities while managing leverage and coverage [5][14] - The integration of H2O and Gravity has enhanced the company's competitive position and built a strong platform for growth [4][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth and long-term value for unit holders, supported by a strong financial position with approximately $940 million in available liquidity [5][12] - The company is optimistic about the growth potential in the Delaware gas business, which is expected to be a key growth engine for years to come [21] Other Important Information - The board approved a distribution increase to $1.125 per unit, marking the 52nd consecutive quarterly distribution increase and 13 years of distribution growth [5] - Total capital expenditures for Q4 2025 were approximately $32 million, with $26 million allocated to growth capital related to sour gas capabilities at the Libby complex [14] Q&A Session Summary Question: Growth expectations for the GMT segment - Management highlighted a clear strategy in crude, gas, and water in the Permian Basin, with a focus on achieving a return on investment that supports coverage and leverage ratios [17][18] Question: EBITDA impact from transactions with DK - The transactions helped further the economic separation of the two entities, with DKL now having 82% of its EBITDA from third-party businesses [22][23] Question: Next steps on Libby processing expansion - Management indicated ongoing investments for future expansion and is closely monitoring customer activities in the area, which look promising [28][29] Question: Thoughts on sour gas midstream M&A - Management expressed confidence in their valuation compared to peers and emphasized that any future deals must be accretive to free cash flow, leverage, and coverage ratios [34]

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, 2025 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 ...

Financial 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]

Core Insights - Delek Logistics Partners achieved a record year in 2025, driven by strong performance across its crude, gas, and water businesses, highlighted by the startup of the Libby 2 gas plant and the acquisition of Gravity Water Midstream [2][3] - The company provided 2026 EBITDA guidance of $520 to $560 million, factoring in a $10 million negative impact from Winter Storm Fern [2][3] - Delek Logistics declared a quarterly cash distribution of $1.125 per common limited partner unit for Q4 2025, marking a 0.4% increase from Q3 2025 and a 1.8% increase from Q4 2024 [5] Financial Performance - For Q4 2025, net income was $47.3 million, or $0.88 per diluted common limited partner unit, compared to $35.3 million, or $0.68 per diluted common limited partner unit, in Q4 2024 [3][4] - Net cash provided by operating activities was $43.2 million in Q4 2025, down from $49.9 million in Q4 2024 [3] - Adjusted EBITDA for Q4 2025 was $142.3 million, an increase from $114.3 million in Q4 2024, reflecting contributions from H2O Midstream and Gravity operations [4][7] Segment Performance - The Gathering and Processing segment reported an Adjusted EBITDA of $70.9 million in Q4 2025, up from $66.0 million in Q4 2024, primarily due to contributions from Gravity and H2O Midstream acquisitions [8] - The Wholesale Marketing and Terminalling segment's Adjusted EBITDA was $20.9 million in Q4 2025, slightly down from $21.2 million in Q4 2024, mainly due to the assignment of a marketing agreement [9] - The Storage and Transportation segment saw Adjusted EBITDA rise to $34.7 million in Q4 2025 from $17.8 million in Q4 2024, driven by increased interest income from sales-type leases [10] Debt and Liquidity - As of December 31, 2025, Delek Logistics had total debt of approximately $2.3 billion and cash of $10.9 million, resulting in a leverage ratio of approximately 4.07x [6][25] - The company had additional borrowing capacity of $0.9 billion under its $1.2 billion revolving credit facility [6] Distribution and Growth Strategy - Delek Logistics has delivered 52 consecutive quarterly distributions, marking 13 years of distribution growth [2] - The company is optimistic about future growth opportunities, particularly in the Delaware Basin, driven by advancements in integrated acid gas injection and sour gas treating solutions [2]

Core Insights - The S&P 500's dividend yield is currently at 1.1%, nearing an all-time low, leading to fewer stocks offering attractive income streams. However, companies like Delek Logistics Partners, Hess Midstream, and Plains All American Pipeline provide yields up to 9% and have recently increased their payouts [1]. Delek Logistics Partners - Delek Logistics Partners declared a quarterly distribution payment of $1.125 per unit, reflecting a 0.4% increase from the previous quarter, extending its distribution growth streak to 52 consecutive quarters and raising its yield to 9% [2]. - The company generated enough cash to cover its distribution payment by over 1.3 times last year, allowing for reinvestment in expansion projects and maintaining financial flexibility [3]. - Delek's market cap is $2.7 billion, with a gross margin of 22.31% and a dividend yield of 8.86%. Recent investments include the completion of the Libby 2 gas processing plant and the acquisition of Gravity Water [5]. Hess Midstream - Hess Midstream announced a quarterly cash distribution payment of $0.7641 per share, a 1.2% increase from the prior quarter, resulting in a yield of 8.2%. The company has increased its dividend by 65% since 2021 [6]. - The company has 100% fee-based minimum-volume contracts, providing stability in cash flow through 2028, and expects to increase its dividend by at least 5% annually during this period while generating about $1 billion in excess free cash flow [9]. - Hess Midstream's market cap is $4.7 billion, with a gross margin of 63.94% and a dividend yield of 8.07% [7]. Plains All American Pipeline - Plains All American Pipeline announced a quarterly distribution payment of $0.4175 per unit, a 10% increase from the previous level, resulting in a yield of 8.5%. The company has grown its payout at a 21% compound annual rate over the last four years [10]. - The company is selling its Canadian natural gas liquids business for $3.8 billion, which will enhance its financial position and allow for reinvestment into its oil pipeline operations [12]. - Plains has the financial flexibility to invest in organic expansion projects and acquisitions, which will help grow its cash flow and continue increasing its high-yielding distribution [13]. Investment Opportunities - The energy midstream sector, represented by Delek Logistics Partners, Hess Midstream, and Plains All American Pipeline, offers attractive passive income investment opportunities with yields between 8% and 9%, and all three companies have a history of regularly raising their payments [14].

Company Overview - Delek Logistics Partners (DKL) is a midstream master limited partnership primarily operating in Texas and surrounding states, known for its long history of growth [1] Investment Strategy - The focus is on generating a 7%+ income yield by investing in a portfolio of energy stocks while minimizing the risk of principal loss [1] - The investment group, Energy Profits in Dividends, targets both traditional and renewable energy companies that hold a competitive advantage and pay strong dividends [1] Research and Analysis - The leader of the investment group provides in-depth micro and macro-analysis of both domestic and international energy companies [1] - Subscribers gain access to exclusive research and investment ideas that are not available to the general public [1]

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential and diversification opportunities [1] - The popularity of insurance companies in the Philippines since 2014 indicates a shift in investment strategies among local investors, moving towards a more diversified portfolio [1] - The entry into the US market in 2020 reflects a growing interest in international investments, particularly in sectors like banking, hotels, and logistics [1] Investment Strategies - Initial investments were focused on blue-chip companies, showcasing a conservative approach to stock investing [1] - The diversification into various industries and market cap sizes demonstrates a strategic shift towards balancing risk and return [1] - The decision to write for Seeking Alpha indicates a commitment to knowledge sharing and continuous learning in investment practices [1] Market Trends - The ASEAN market remains a focal point for investments in banking, telecommunications, and retail sectors, suggesting robust growth in these areas [1] - The US market has become increasingly attractive for investments in banks, hotels, shipping, and logistics companies, reflecting a trend towards global investment strategies [1] - The use of comparative analyses between the US and Philippine markets highlights the importance of market research in making informed investment decisions [1]

Group 1 - Investors in Delek Logistics Partners, LP (DKL) should monitor the stock due to significant activity in the options market, particularly the Nov. 21, 2025 $30 Put, which has high implied volatility [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in Delek Logistics shares, possibly due to an upcoming event [2] - Delek Logistics currently holds a Zacks Rank 3 (Hold) in the Oil and Gas - Production Pipeline - MLB industry, which is in the bottom 22% of the Zacks Industry Rank [3] Group 2 - Over the past 60 days, no analysts have increased earnings estimates for Delek Logistics for the current quarter, while one analyst has lowered their estimate, resulting in a decrease in the Zacks Consensus Estimate from $1.15 to $1.06 per share [3] - The high implied volatility may indicate a trading opportunity, as options traders often seek to sell premium on options with high implied volatility, hoping the underlying stock does not move as much as expected at expiration [4]