Delek Logistics Partners, LP reported a net income of $176.5 million for the fiscal year ending December 31, 2025, marking a 23.6% increase from the previous year's net income of $142.7 million. The Partnership's total revenues rose to $1.01 billion, a 7.7% increase compared to $940.6 million in 2024. This growth was primarily driven by the contributions from recent acquisitions, including H2O Midstream and Gravity, which added $90.1 million and $41.0 million in revenue, respectively. However, the Partnership also faced challenges, as certain throughput fees were reclassified as interest income under sales-type lease accounting, impacting revenue recognition.
In terms of operational performance, the gathering and processing segment saw a significant increase in EBITDA, rising by $52.4 million to $259.5 million, largely due to the contributions from the H2O and Gravity acquisitions. Conversely, the wholesale marketing and terminalling segment experienced a decline in EBITDA of $28.8 million, attributed to lower revenues from the assignment of the Big Spring refinery marketing agreement to Delek Holdings and the impact of sales-type lease accounting. The storage and transportation segment also reported a decrease in EBITDA of $22.5 million, reflecting similar challenges.
Strategically, Delek Logistics has focused on expanding its service offerings and customer base, particularly in the Permian Basin. The Partnership has made significant investments in infrastructure, including a new natural gas processing plant, which is expected to enhance throughput in 2026. Additionally, the Partnership has engaged in various agreements with Delek Holdings to further its economic separation and increase third-party revenue. The completion of a $700 million debt issuance in June 2025 has bolstered liquidity, bringing it to over $1 billion, which positions the Partnership well for future growth opportunities.
Looking ahead, Delek Logistics anticipates continued cash flow growth driven by the ramp-up of operations at its new gas processing plant and ongoing expansion projects. The Partnership remains committed to enhancing its sustainability efforts while navigating the challenges posed by geopolitical instability and commodity market volatility. The management's strategic focus areas for 2026 include achieving strong cash flow growth, pursuing attractive expansion opportunities, and optimizing existing assets to further diversify its customer base.
About Delek Logistics Partners, LP
Delek Logistics Partners, LP is a midstream energy company providing gathering, pipeline, transportation, storage, and terminalling services primarily for crude oil, natural gas, and water in the Permian Basin and Gulf Coast regions. Its business model relies on long-term contracts with Delek Holdings and third parties, offering integrated infrastructure solutions that support refining operations and third-party producers, emphasizing operational stability, strategic acquisitions, and sustainability initiatives.
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