What does Delek Logistics do and what are its main business segments?

What were the key takeaways from Delek Logistics’s earnings call?

What is Delek Logistics's gross profit margin?

What guidance did Delek Logistics's management provide for the next earnings period?

What is the revenue and EPS growth rate for Delek Logistics year over year?

What were the key takeaways from Delek Logistics's earnings call?

What is the market's earnings forecast for Delek Logistics next quarter?

What factors drove the changes in Delek Logistics's revenue and profit?

- **Record Q3 EBITDA**: $136M, up 27% YoY, driving full-year guidance to $500-520M.
- **Strategic Acquisitions Paying Dividends**: H2O and Gravity Midstream integration boosting crude and water volumes.
- **Libby 2 Expansion Accelerated**: Sour gas infrastructure enabling earlier capacity expansion in Delaware Basin.
- **Strong Distribution Growth**: 51st consecutive increase to $1.12/unit.
- **JV Performance Strong**: Equity investments segment up 38% YoY to $22M.

**【Management Opening Remarks】**
- CFO Robert Wright welcomed participants and outlined the call structure, emphasizing forward-looking statements and the company's financial position.

**【CEO Opening Remarks】**
- CEO Avigal Soreq highlighted Q3 adjusted EBITDA of $136M, raising full-year guidance to $500-520M. Key achievements included:
  - Record crude and water volumes, with DTG crude gathering at all-time highs.
  - Successful commissioning of Libby 2 gas plant and sour gas handling infrastructure.
  - 51st consecutive distribution increase to $1.12/unit.
  - Strategic acquisitions (H2O and Gravity Midstream) enhancing Permian Basin presence.

**【 EVP Operational Update】**
- EVP Reuven Spiegel detailed operational progress:
  - Libby 2 plant performing above expectations, with AGI infrastructure enabling capacity expansion.
  - Midland and Delaware basin water systems integration driving efficiency.
  - Crude gathering volumes at record levels, supported by producer activity.

**【 CFO Financial Review】**
- CFO Robert Wright provided financial highlights:
  - Q3 2025: Adjusted EBITDA $136M (vs. $107M YoY), DCF coverage 1.24x.
  - Segment performance:
    - Gathering & Processing: $83M (vs. $55M YoY).
    - Storage & Transportation: $19M (flat YoY).
    - Equity Investments: $22M (vs. $16M YoY), driven by Wink to Webster JV.
  - Capital expenditures: $50M (Q3), with $44M allocated to growth projects.
  - Full-year 2025 guidance raised to $500-520M EBITDA.

**【Q&A Highlights】**
- **Libby 2 & Sour Gas Expansion**: Executives confirmed accelerated sour gas infrastructure deployment, enabling earlier-than-expected capacity expansion.
- **CapEx & Liquidity**: $1B available on credit facilities supports growth while maintaining leverage targets.
- **Water Market Dynamics**: Acquisitions positioned DKL as a low-cost provider amid SWD permitting challenges.
- **Equity Income Sustainability**: JV performance stable, with Wink to Webster contributing meaningfully.
- **2026 Outlook**: Management hinted at maintaining disciplined capital allocation, with potential for distribution growth or debt reduction.


Delek Logistics Partners, LP Common Units (DKL) Q3 2025 Earnings Call Transcript

- **Record Q2 Performance**: $120 million EBITDA, 17.6% YoY growth, with DCF coverage at 1.22x.
- **Libby 2 Plant Success**: On-track for full capacity by year-end, supporting $480–$520 million EBITDA guidance.
- **Strategic Expansion**: Midland water system integration and Delaware crude volume growth drive operational efficiency.
- **M&A Readiness**: $700 million liquidity for accretive deals, with focus on sour gas infrastructure and full-service basin presence.

**【Management Opening Remarks】**
- Q2 2025 Adjusted EBITDA of $120 million, reaffirming full-year guidance of $480–$520 million.
- Completed commissioning of Libby 2 gas plant, expected to reach full capacity by year-end 2025.
- 50th consecutive distribution increase to $1.11 per unit, reflecting financial prudence and stakeholder returns.
- Crude and water gathering volumes rising in Q3, with Delaware and Midland basin expansion plans.

**【Operational Updates (Reuven Spiegel)】**
- Libby 2 plant performing as expected, with sour gas handling and acid gas injection projects progressing.
- Midland integration of H2O and Gravity systems enhancing crude and water gathering capabilities.
- Delaware Basin crude volumes up in Q3, driven by new connections and expanded gas processing.

**【Financial Highlights (Robert Wright)】**
- Q2 2025 Adjusted EBITDA up 17.6% YoY to $120 million, driven by H2O/Gravity acquisitions and Wink to Webster pipeline.
- Distributable Cash Flow (DCF) of $73 million, with DCF coverage ratio at 1.22x, expected to improve in H2.
- Gathering & Processing segment EBITDA up 41.8% YoY to $78 million; Wholesale Marketing down 23.3% YoY to $23 million due to DK amend-and-extend agreements.
- Total Q2 CapEx $119 million, including $48 million for Libby 2 plant completion.

**【Q&A Key Highlights】**
- **Libby 2 Plant**: Gradual ramp-up to full capacity by year-end, with sour gas treating infrastructure (Amine unit, AGI wells) on track.
- **Competitive Position**: Comprehensive gas processing system (sour gas gathering, treating, processing) differentiates from peers like Northwind.
- **M&A Strategy**: Liquidity from $700 million high-yield notes offering supports accretive deals; focus on free cash flow, leverage, and coverage accretion.
- **Guidance Confidence**: Reaffirmed $480–$520 million EBITDA despite market volatility, citing strong producer relationships and low breakeven costs in Delaware Basin.

Delek Logistics Partners, LP Common Units (DKL) Q2 2025 Earnings Call Transcript

- **Record Q1 EBITDA**: $117 million, with 80% third-party revenue mix post-transaction.
- **Libby II Plant Progress**: 100-120 MMcf/d capacity on track for H2 2025 fill, supported by $52M Q1 capex.
- **Distribution Growth**: 49% hike to $1.11/unit, marking 49th consecutive increase.
- **Sour Gas Leadership**: AGI well deployment and acid gas injection capabilities differentiate Delaware Basin operations.
- **Strong Liquidity**: $450 million available, supporting $480-520 million EBITDA guidance.


**【President Avigal Soreq Opening Remarks】**
- Q1 2025 Adjusted EBITDA: $117 million, tracking toward full-year guidance of $480-520 million.
- Economic Separation from parent company DKL increased to 80% (pro forma) via intercompany transaction, up from 70%.
- Delaware Basin Libby II gas plant commissioning underway, targeting mid-2025 capacity fill.
- Sour gas handling capabilities via AGI well deployment, enhancing competitive position in Delaware.
- Q1 Distribution Increase: 49% hike to $1.11/unit, marking 49th consecutive raise.

**【EVP Reuven Spiegel Operational Update】**
- Libby II Gas Plant: 100-120 MMcf/d incremental capacity, on track for full utilization by H2 2025. $52M Q1 capex allocated to construction.
- Midland Basin Water Assets: H2O and Gravity integrations driving crude/water gathering synergies, exceeding expectations.
- Delaware Basin Growth: Acid gas injection (AGI) well activation underway, supporting sour gas processing leadership.
- Operational Efficiency: Targeting margin improvements through process optimization.

**【CFO Robert Wright Financial Review】**
- Q1 2025 Results:
  - Adjusted EBITDA: $117M (vs. $102M YoY)
  - Distributable Cash Flow: $75M (1.27x coverage ratio)
  - Gathering & Processing EBITDA: $81M (vs. $50M YoY, driven by H2O/Gravity)
- Capital Allocation:
  - $72M Q1 capex ($52M for Libby II)
  - $10M unit buyback under $150M authorization
  - $450M liquidity post-Gravity acquisition
- 2025 Outlook: On track for $480-520M EBITDA, with improving coverage ratio.

**【Q&A Key Takeaways】**
- **Intercompany Transaction Details**: Reassigned midstream/refining activities, no EBITDA impact but elevated third-party contribution to 80%.
- **Customer Activity**: Midland Basin water volumes rising; Delaware Basin acreage under development with low breakeven costs.
- **Contract Mix**: Limited commodity exposure, strong counterparty diversification across water and gas assets.
- **Libby II Ramp-Up**: 20-30 MMcf/d initial capacity, with expansion potential for future growth.
- **Sour Gas Advantage**: Unique AGI capabilities in Delaware Basin, supporting long-term differentiation.


Delek Logistics Partners (DKL)-7 May 25-2025 Q1 Earnings call transcript

- **Record Q4 EBITDA**: $107 million, up 6% YoY. 2025 Guidance: $480-520 million (~20% growth)
- **Strategic Acquisitions**: Midland Basin assets (H2O, Gravity) and Wink-to-Webster pipeline enhance Permian position
- **Buyback Program**: $150 million to capitalize on 11% implied yield vs. 7% debt cost
- **Libby Plant Expansion**: On track for H1 2025, supporting Delaware Basin sour gas growth
- **Distribution Growth**: 48th consecutive increase to $1.105/unit

**【Avigal Soreq Opening Remarks】**
- Q4 2024 Adjusted EBITDA: $107 million, up 6% YoY. Full-year 2024 EBITDA: $400 million+ (previously $334 million). 2025 Guidance: $480-520 million (~20% growth). 
- Key 2024 achievements:
  - 2 primary equity offerings (first MLP since 2017)
  - 7-year contract extension with sponsor DK
  - Wink-to-Webster pipeline acquisition
  - Midland Basin acquisitions (H2O & Gravity Water Midstream)
  - Delaware Basin processing plant expansion on track for H1 2025
- Announced $150 million unit buyback program to enhance unitholder value
- 48th consecutive distribution increase to $1.105/unit

**【Mark Hobbs Financial Details】**
- Q4 2024 Financials:
  - Gathering & Processing EBITDA: $66 million (up 24% YoY)
  - Storage & Transportation EBITDA: $17.8 million (up 2% YoY)
  - Capital Expenditures: $49.4 million (85% for gas plant expansion)
- 2025 Capital Plan:
  - $75 million for Libby plant expansion
  - $160 million for growth/maintenance projects
- DCF Coverage: 1.2x (target 1.3x by H2 2025)

**【Q&A Highlights】**
1. **EBITDA Guidance Range**:
   - Low end reflects cautious execution of known projects
   - High end contingent on new organic growth opportunities
2. **Buyback Program Execution**:
   - Funded by free cash flow (debt cost 7% vs. implied 11% equity yield)
   - Subject to market conditions and covenant compliance
3. **Asset Utilization**:
   - Delaware Basin gas demand strong
   - Comprehensive crude/gas/water offering driving Midland expansion


Delek Logistics Partners (DKL)-25 Feb 25-2024 Q4 Earnings call transcript

Delek Logistics Partners (DKL)-6 Nov 24-2024 Q3 Earnings call transcript

Delek Logistics Partners (DKL)-6 Aug 24-2024 Q2 Earnings call transcript

Delek Logistics Partners (DKL)-7 May 24-2024 Q1 Earnings call transcript

Delek Logistics Partners (DKL)-27 Feb 24-2023 Q4 Earnings call transcript

Delek Logistics Partners (DKL)-7 Nov 23-2023 Q3 Earnings call transcript

Delek Logistics Partners (DKL)-7 Aug 23-2023 Q2 Earnings call transcript

Delek Logistics Partners (DKL)-8 May 23-2023 Q1 Earnings call transcript

Delek Logistics Partners (DKL)-28 Feb 23-2022 Q4 Earnings call transcript

Delek Logistics Partners (DKL)-7 Nov 22-2022 Q3 Earnings call transcript

Delek Logistics Partners (DKL)-7 Aug 22-2022 Q2 Earnings call transcript

Delek Logistics Partners (DKL)-3 May 22-2022 Q1 Earnings call transcript

Delek Logistics Partners (DKL)-24 Feb 22-2021 Q4 Earnings call transcript

Delek Logistics Partners (DKL)-5 Nov 21-2021 Q3 Earnings call transcript

Delek Logistics Partners (DKL)-4 Aug 21-2021 Q2 Earnings call transcript

Delek Logistics Partners (DKL)-5 May 21-2021 Q1 Earnings call transcript

Delek Logistics Partners (DKL)-24 Feb 21-2020 Q4 Earnings call transcript

Delek Logistics Partners (DKL)-5 Nov 20-2020 Q3 Earnings call transcript

Delek Logistics Partners (DKL)-6 Aug 20-2020 Q2 Earnings call transcript

Delek Logistics Partners (DKL)-6 May 20-2020 Q1 Earnings call transcript

Delek Logistics Partners (DKL)-26 Feb 20-2019 Q4 Earnings call transcript

Delek Logistics Partners (DKL)-5 Nov 19-2019 Q3 Earnings call transcript

Delek Logistics Partners (DKL)-5 Aug 19-2019 Q2 Earnings call transcript

Delek Logistics Partners (DKL)-6 May 19-2019 Q1 Earnings call transcript

Delek Logistics Partners (DKL)-20 Feb 19-2018 Q4 Earnings call transcript

Delek Logistics Partners (DKL)-7 Nov 18-2018 Q3 Earnings call transcript

Delek Logistics Partners (DKL)-8 Aug 18-2018 Q2 Earnings call transcript

Delek Logistics Partners (DKL)-8 May 18-2018 Q1 Earnings call transcript

Delek Logistics Partners (DKL)-27 Feb 18-2017 Q4 Earnings call transcript

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