Delek Logistics Partners Reports 56.2% Revenue Growth to $384.8 Million in Latest Quarter

Delek Logistics Partners, LP reported significant financial growth in its latest quarterly results, with net revenues reaching $384.8 million for the three months ended June 30, 2026, a 56.2% increase from $246.4 million in the same period last year. For the first half of 2026, revenues totaled $682.2 million, up 37.5% from $496.3 million in the first half of 2025. The increase was primarily driven by higher sales in the gathering and processing segment, particularly due to the acquisition of Delek Permian Gathering's operations, and improved performance in West Texas marketing operations, which benefited from rising gasoline and diesel prices.

The company’s operating income for the second quarter was $61.9 million, compared to $52.4 million in the prior year, while net income fell to $28.9 million from $44.6 million year-over-year. This decline in net income was attributed to increased interest expenses and losses on extinguished debt, which rose significantly due to recent debt restructuring activities. The basic net income per unit was $0.54, down from $0.83 in the same quarter of 2025.

In terms of operational developments, Delek Logistics has focused on expanding its service offerings and customer base, particularly in the Permian Basin. The company has made strategic moves, including the acquisition of Gravity Water Intermediate Holdings LLC, which enhances its water disposal and recycling capabilities. Additionally, the partnership has entered into asset purchase agreements with Delek Holdings, selling certain terminal assets to streamline operations and improve financial flexibility. As of June 30, 2026, the partnership had a total liquidity of $1.1 billion, bolstered by unused credit commitments and cash reserves.

The company has also seen a notable increase in its capital expenditures, with $105.9 million spent in the first half of 2026, primarily on growth projects in the gathering and processing segment. This reflects a strategic focus on enhancing operational capacity and efficiency. The partnership's total debt stood at $2.4 billion, with a significant portion related to recent debt issuances aimed at refinancing existing obligations and supporting growth initiatives.

Looking ahead, Delek Logistics Partners remains optimistic about its growth trajectory, despite potential market volatility due to geopolitical tensions and fluctuating commodity prices. The company plans to continue leveraging its strong asset base and contractual protections to navigate challenges and pursue opportunities for expansion. The board has declared a quarterly cash distribution of $1.135 per unit, reflecting a commitment to maintaining attractive returns for unitholders while supporting ongoing operational and strategic initiatives.