Delek Logistics Partners, LP: 2024 Form 10-K Offers Insights into Strategic Growth and Financial Performance

Delek Logistics Partners, LP (DKL) has made its 2024 Form 10-K available on its website, providing valuable insights into the company's strategic growth, financial performance, and operational efficiency. The report highlights DKL's commitment to expanding its presence in the Permian Basin and Delaware Basin, as well as its focus on maintaining a strong financial position.

Throughout 2024, DKL executed several strategic actions that contributed to its growth and expansion. The company acquired H2O Midstream, significantly expanding its third-party cash flows and strengthening its position in the Permian Basin. Additionally, DKL completed the acquisition of Delek US' interest in the Wink to Webster ("W2W") pipeline, enhancing its asset portfolio. These acquisitions, along with the final investment decision (FID) on a new gas processing plant adjacent to the existing Delaware plant, demonstrate DKL's commitment to growing its midstream energy business.

DKL's financial performance in 2024 reflects its strategic growth and expansion. The company reported a record quarterly adjusted EBITDA of $107.2 million in the fourth quarter, highlighting its strong financial performance. Additionally, DKL declared a quarterly cash distribution of $1.105 per common limited partner unit for the fourth quarter 2024, representing a 0.5% increase from the third quarter 2024 distribution and a 4.7% increase over the fourth quarter 2023 distribution. This consistent growth in distributions underscores DKL's commitment to rewarding unitholders with competitive returns.



DKL's liquidity management and debt levels indicate a strong financial position, enabling it to pursue growth opportunities while maintaining a sustainable debt-to-equity ratio. As of December 31, 2024, DKL had total debt of approximately $1.88 billion and cash of $5.4 million. The company maintained a leverage ratio of approximately 4.06x, within the requirements of the maximum allowable leverage ratio under its credit facility. DKL's debt-to-total capital ratio was about 82.8%, indicating a healthy balance between debt and equity financing.

In conclusion, Delek Logistics Partners, LP's 2024 Form 10-K offers valuable insights into the company's strategic growth, financial performance, and operational efficiency. DKL's commitment to expanding its presence in the Permian Basin and Delaware Basin, along with its strong financial position, positions the company well for continued growth and success in the midstream energy sector. Investors should consider DKL as a compelling option for exposure to the growing midstream energy market.