Delek Logistics Partners, LP reported a net income of $142.7 million for the fiscal year ending December 31, 2024, reflecting a $16.4 million increase compared to the previous year. However, total revenues decreased by 7.8% to $940.6 million, primarily due to a decline in the wholesale marketing and terminalling segment, which saw revenues drop by $54.2 million, attributed to lower average sales prices and reduced Renewable Identification Number (RIN) revenues. The gathering and processing segment also experienced a revenue decline, largely due to a change in accounting treatment that reclassified certain throughput and storage fees as interest income under sales-type lease accounting.
The Partnership made significant strategic moves during the year, including the acquisition of H2O Midstream and Gravity Water Intermediate Holdings, which are expected to enhance its water disposal and recycling operations in the Permian Basin. The H2O Midstream acquisition, completed on September 11, 2024, was valued at approximately $229.7 million, while the Gravity acquisition, finalized on January 2, 2025, was valued at $301.2 million. These acquisitions are anticipated to provide integrated services and support the Partnership's growth strategy in the region.
Operationally, the Partnership reported an increase in segment EBITDA for its gathering and processing segment by $7.7 million, driven by the contributions from H2O Midstream operations. However, the wholesale marketing and terminalling segment saw a decrease in EBITDA by $14.8 million, reflecting the challenges faced in the West Texas market. The storage and transportation segment also reported a decline in EBITDA, down $15.5 million, primarily due to the same accounting changes affecting revenue recognition.
Looking ahead, Delek Logistics Partners aims to focus on generating stable cash flow and pursuing attractive expansion opportunities, particularly in the Permian Basin. The Partnership has emphasized its commitment to environmental stewardship and plans to enhance its ESG initiatives. The near-term outlook remains cautious due to geopolitical instability and commodity market volatility, but the company believes it is well-positioned to manage through potential economic downturns, supported by minimum volume commitments and dedicated acreage agreements with Delek Holdings.
As of December 31, 2024, the Partnership's total debt stood at approximately $1.885 billion, with a significant portion tied to its revolving credit facility and senior notes. The company reported total liquidity of $720 million, indicating a solid financial position to support its operational and capital needs. The board of directors declared a quarterly distribution of $1.105 per common unit, representing a 4.7% increase from the previous quarter, reflecting the Partnership's ongoing commitment to delivering value to its unitholders.
About Delek Logistics Partners, LP
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.