Delek Logistics Partners Reports $32.4M Net Income, 19% Revenue Growth in Q1 2026

Delek Logistics Partners, LP reported a net income of $32.4 million for the first quarter of 2026, a decrease of 17.0% from $39.0 million in the same period last year. The decline in profitability was attributed to increased depreciation expenses related to asset expansions and higher interest expenses from debt issuance. Despite the drop in net income, the company experienced a 19.0% increase in net revenues, which rose to $297.5 million from $249.9 million in the prior year. This growth was primarily driven by a $36.1 million increase in the gathering and processing segment, bolstered by enhanced crude activity and the transfer of certain operations from Delek Holdings.

In terms of operational metrics, the partnership's gathering and processing segment saw a significant uptick, with revenues increasing by 30.4% year-over-year. This was largely due to the Delek Permian Gathering purchasing and blending activities, which were transferred from Delek Holdings, and increased crude activity in the Delaware Gathering operations. However, the wholesale marketing and terminalling segment faced challenges, with a decrease in segment EBITDA of $3.5 million, primarily due to the termination of a marketing agreement with Delek Holdings. The storage and transportation segment reported a modest revenue increase of 1.5%, reflecting stable operations.

Delek Logistics also made strategic moves during the quarter, including the completion of the Tyler Tank Sale to Delek Holdings for $19.0 million, which closed on April 1, 2026. This transaction resulted in a dilution of Delek Holdings' ownership interest in the partnership to 63.0%. Additionally, the partnership entered into a new credit agreement that provides for revolving commitments of up to $1.3 billion, enhancing its liquidity position. The company is also focused on expanding its gas processing capabilities, particularly at the Libby complex, which is expected to contribute to future growth.

As of March 31, 2026, Delek Logistics reported total assets of $2.9 billion, up from $2.8 billion at the end of 2025. The partnership's total liabilities decreased slightly to $2.4 billion from $2.5 billion, reflecting a reduction in long-term debt. The company maintained a strong liquidity position with $1.1 billion in unused credit commitments and $9.9 million in cash. Looking ahead, Delek Logistics aims to continue its focus on organic growth and strategic acquisitions while navigating the uncertainties in the energy market, including fluctuations in commodity prices and geopolitical factors. The partnership declared a quarterly cash distribution of $1.130 per unit, reflecting a 1.8% increase from the previous quarter, demonstrating its commitment to returning value to unitholders.