Delek Logistics Partners (DKL) Earnings Call Presentation

Strategy and Operations - DKL's strategy focuses on operational excellence, continuous optimization, strategic growth, and financial strength in the Permian Basin[14, 16, 17, 18] - The company aims to increase third-party cash flows to become a strong independent midstream company[21] - DKL is uniquely positioned to capitalize on Delaware natural gas production growth, particularly in sour gas handling[24, 36] - The company is expanding the Libby Complex Gas Plant to enhance its competitive position in the Northern Lea County through Acid Gas Injection (AGI) capabilities, targeting over 20% cash-on-cash returns[32, 36] Financial Performance and Outlook - DKL's adjusted EBITDA is projected to be between $480 million and $520 million in 2025[64] - The company expects to maintain a distribution coverage ratio of approximately 130% by the end of 2025 and anticipates continued distribution growth[64] - In 2024, DKL's adjusted EBITDA was $418 million, up from $385 million in 2023, representing a CAGR of 135% from 2021 to 2025E[63] - DKL's distribution per unit has consistently increased, reaching $4365 in 2024[63] Acquisitions and Joint Ventures - DKL acquired Gravity Water Holdings LLC on January 2, 2025, for $2093 million in cash and 2175209 DKL common units[57] - DKL owns a 156% interest in the Wink to Webster crude pipeline system, enhancing fee-based earnings and distributable cash flow[48, 70] - The company has ownership interests in joint venture assets like RIO Pipeline (33%), Caddo Pipeline (50%), and Red River Pipeline (33%), supporting its crude value chain[46, 47, 48]