The midstream MLP achieved its highest-ever annual Adjusted EBITDA while expanding its independence from its parent company and rewarding unitholders with a 52nd consecutive quarterly distribution increase.

March 2, 2026

A Record-Breaking Year in Midstream Energy

Delek Logistics Partners, LP closed out 2025 with the strongest financial results in its history, capping a year marked by strategic acquisitions, infrastructure expansion, and a deliberate push to reduce reliance on its corporate sponsor. The Tennessee-based master limited partnership reported full-year Adjusted EBITDA of $535.6 million — surpassing any previous annual performance — and fourth-quarter Adjusted EBITDA of $142.3 million, also a quarterly record.

For the fourth quarter of 2025, the partnership reported net income of $47.3 million, or $0.88 per diluted common limited partner unit, compared to $35.3 million, or $0.68 per unit, in the same period a year earlier. For the full year, net income rose to $176.5 million from $142.7 million in 2024.

Distributable cash flow, as adjusted, reached $73.3 million for the fourth quarter versus $69.5 million in the prior-year quarter. On an annual basis, the figure climbed to $295.1 million from $267.2 million. The distributable cash flow coverage ratio, as adjusted, held at 1.22x for the quarter and 1.23x for the full year.

Segment-by-Segment Performance

The Gathering and Processing segment was the primary growth engine in 2025, generating full-year Adjusted EBITDA of $312.7 million, up from $233.4 million in 2024. In the fourth quarter alone, it contributed $70.9 million, driven largely by incremental results from the Gravity Water Midstream and H2O Midstream acquisitions. Crude oil gathering volumes in the Delaware Basin reached record levels during the year.

The Storage and Transportation segment posted one of the year’s most dramatic improvements, with fourth-quarter Adjusted EBITDA rising to $34.7 million from $17.8 million in the same quarter of 2024 — a gain attributed primarily to increased interest income from restructured sales-type lease arrangements.

The Investments in Pipeline Joint Ventures segment also contributed meaningfully, with fourth-quarter income from equity method investments reaching $19.2 million, up from $11.3 million a year earlier, reflecting the impact of the W2W dropdown transaction.

The Wholesale Marketing and Terminalling segment was largely flat, with fourth-quarter Adjusted EBITDA of $20.9 million versus $21.2 million in the prior-year period. A slight decline stemming from the reassignment of the Big Spring refinery marketing agreement to Delek Holdings was partially offset by improved wholesale margins.

Strategic Milestones: Acquisitions and Infrastructure

Management described 2025 as a pivotal year shaped by transactions that substantially repositioned the partnership. Key developments included:

• The acquisition of Gravity Water Midstream in January 2025, significantly expanding water disposal and recycling capacity.
• The successful startup of the Libby 2 gas plant, adding processing capability in the Delaware Basin.
• The Delek Permian Gathering dropdown on May 1, 2025, through which Delek Logistics absorbed purchasing and blending operations from Delek Holdings, structured via the cancellation of approximately $58.8 million in receivables.

Total capital spending for the year reached $252.1 million, with $237.4 million directed toward growth, predominantly in the Gathering and Processing segment — nearly double the roughly $140 million invested in 2024.

Looking ahead, the partnership is advancing an integrated acid gas injection and sour gas treating solution at its Libby Gas Complex, which management characterized as an industry-leading capability expected to support multi-year growth and underpin its broader Full-Suite midstream services strategy in the Delaware Basin.

Distribution Growth and Balance Sheet

Delek Logistics declared a fourth-quarter distribution of $1.125 per common limited partner unit, paid in February 2026. The payment marked the 52nd consecutive quarterly distribution increase — equivalent to 13 straight years of uninterrupted growth — and represented a 1.8% increase over the fourth-quarter 2024 level.

As of December 31, 2025, the balance sheet reflected the scale of recent investment activity:

• Total assets: approximately $2.78 billion, up from $2.04 billion at year-end 2024
• Total debt: approximately $2.3 billion
• Cash and equivalents: $10.9 million
• Leverage ratio: approximately 4.07x (adjusted)
• Remaining revolver capacity: approximately $0.9 billion under a $1.2 billion facility

2026 Guidance and Outlook

For 2026, Delek Logistics initiated full-year EBITDA guidance of $520 million to $560 million, a range that incorporates an estimated $10 million negative impact from Winter Storm Fern, which disrupted operations early in the first quarter.

A defining theme of the 2026 outlook is the partnership’s accelerating economic separation from Delek US Holdings. Management expects third-party EBITDA contributions to exceed 80% of the total — a threshold framed as marking the near-completion of the partnership’s strategic independence.

The acid gas injection project at the Libby Complex was cited as the most significant near-term growth catalyst, with management expressing growing confidence in its capacity to drive multi-year volume and earnings expansion. The overall tone from leadership emphasized disciplined capital allocation, balanced leverage management, and a sustained focus on long-term unitholder value.