Delek Logistics Partners ( (DKL) ) has released its Q1 earnings. Here is a breakdown of the information Delek Logistics Partners presented to its investors.
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Delek Logistics Partners, LP is a midstream energy master limited partnership based in Brentwood, Tennessee, providing services such as gathering, pipeline transportation, storage, and wholesale marketing primarily for crude oil and natural gas customers in the Permian Basin and other Gulf Coast regions.
Delek Logistics reported a strong start to 2025 with record first-quarter results, achieving a net income of $39.0 million and an adjusted EBITDA of $116.5 million, marking a 15% increase year over year. The company is on track to reach its full-year adjusted EBITDA target of $480 million to $520 million.
Key highlights from the quarter include the commencement of operations at the new Libby 2 plant, which expands processing capacity in Lea County, NM, and the successful acquisition of Gravity Water Midstream, which has exceeded performance expectations. Additionally, Delek Logistics increased its distribution to $1.110 per unit and executed a $10 million unit buyback as part of its $150 million authorization.
Despite some declines in wholesale marketing and storage segments due to reduced margins and rates, the company’s gathering and processing segment saw significant growth, driven by acquisitions and increased throughput. Delek Logistics continues to focus on expanding its capabilities and enhancing its offerings in the Midland Basin.
Looking ahead, Delek Logistics aims to further enhance its operational capacity and maintain its growth trajectory by managing liquidity and leverage prudently, while continuing to increase distributions to unitholders.