Delek Logistics Partners Reports Decrease in Net Revenues but Increase in Net Income for Q2 2025

Delek Logistics Partners, LP reported a decrease in net revenues for the second quarter of 2025, totaling $246.4 million, down from $264.6 million in the same period last year. The decline was primarily attributed to a $31.0 million drop in revenues from the wholesale marketing and terminalling segment, which was impacted by lower average sales prices and a decrease in volumes sold. In contrast, the gathering and processing segment saw an increase in revenues, bolstered by contributions from recent acquisitions, including H2O Midstream and Gravity, which added $15.3 million and $24.0 million, respectively, to the quarter's revenue.

The company's net income for the second quarter of 2025 was $44.6 million, compared to $41.1 million in the prior year, reflecting a year-over-year increase of approximately 12.2%. However, earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased to $90.1 million from $102.4 million, largely due to changes in revenue classification under sales-type lease accounting. The basic net income per unit was reported at $0.83, a slight decrease from $0.87 in the previous year.

Significant operational changes included the completion of the Gravity Acquisition on January 2, 2025, for $300.8 million, which enhanced Delek's water disposal and recycling capabilities in the Permian Basin and Bakken regions. Additionally, the company executed the H2O Midstream Acquisition in September 2024, further diversifying its service offerings. These strategic moves are expected to increase third-party revenue streams and reduce reliance on Delek Holdings, which currently accounts for a substantial portion of the partnership's business.

In terms of operational metrics, the partnership reported a notable increase in its customer base and throughput volumes, particularly in the gathering and processing segment. The Midland Gathering System's throughput averaged 207,183 barrels per day, while the Delaware Gathering Assets reported crude oil gathering of 137,167 barrels per day. The company also maintained a strong liquidity position, with total liquidity exceeding $1 billion as of June 30, 2025, bolstered by a recent debt issuance of $700 million.

Looking ahead, Delek Logistics Partners expressed optimism about its growth trajectory, emphasizing its commitment to expanding its asset base and enhancing cash flow. The company plans to continue pursuing organic growth opportunities and strategic acquisitions while managing costs effectively. Despite potential market volatility and economic uncertainties, the partnership aims to leverage its strong financial position to maximize unitholder returns and sustain long-term growth.