Delek Logistics Partners

DKL Q1 2025 Earnings

Reported May 7, 2025 at 7:07 AM ET · SEC Source

Q1 25 EPS

$0.73

MISS 20.65%

Est. $0.92

Q1 25 Revenue

$249.9M

BEAT +18.10%

Est. $211.6M

vs S&P Since Q1 25

+7.5%

BEATING MARKET

DKL +38.2% vs S&P +30.7%

Market Reaction

Did DKL Beat Earnings? Q1 2025 Results

Delek Logistics Partners delivered a mixed first quarter for 2025, posting earnings that fell short of Wall Street expectations even as revenue cleared the bar by a wide margin. The partnership reported earnings per unit of $0.73, missing the $0.92 c… Read more Delek Logistics Partners delivered a mixed first quarter for 2025, posting earnings that fell short of Wall Street expectations even as revenue cleared the bar by a wide margin. The partnership reported earnings per unit of $0.73, missing the $0.92 consensus estimate by 20.65%, while revenue of $249.93 million topped the $211.62 million forecast by 18.10%, though sales edged down 0.8% from the year-ago period. The headline EPS shortfall largely reflected a higher unit count following recent acquisitions, most notably the Gravity Water Midstream deal that closed January 2 and is already performing above expectations. That transaction helped push Adjusted EBITDA to a record $116.54 million, up 15% year-over-year, with the Gathering and Processing segment driving much of the strength on higher throughput and expanded water infrastructure in the Permian Basin. Looking ahead, management reaffirmed full-year 2025 Adjusted EBITDA guidance of $480 million to $520 million, signaling confidence in continued acquisition integration and the commissioning of the new Libby 2 gas processing plant in New Mexico.

Key Takeaways

  • Gravity Water Midstream acquisition closed January 2, performing above expectations
  • H2O Midstream acquisition contribution to Gathering and Processing segment
  • Higher throughput from Midland Gathering system (246,090 vs 213,458 average bpd year-over-year)
  • W2W dropdown driving higher income from equity method investments
  • Third-party EBITDA contribution increased to approximately 80%
24/7 Wall St

DKL YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

DKL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Delek Logistics started 2025 on a strong note enhancing our position as a premier midstream provider in the Permian basin. We provide the best combination of yield and growth in the midstream sector with a long runway of growth driven by its advantageous position in the Midland and Delaware basins. We are proud of the 49th consecutive increase in our distribution and we expect to continue to increase our distribution in the future. The completion of the acquisition of Gravity in January and today's announcement of intercompany transactions push third party cash flow contribution at Delek Logistics to ~80%, further increasing our economic separation from our sponsor Delek US.”

— Avigal Soreq, Q1 2025 Earnings Press Release