Delek Logistics Partners LP
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.47%.
Did DKL Beat Earnings? Q3 2025 Results
Delek Logistics Partners delivered a mixed third quarter for 2025, posting earnings per unit of $0.85 that fell short of the $1.04 consensus estimate by 18.43%, even as revenue of $261.28 million came in 3.02% above expectations and climbed 22.1% year over year. The headline profit miss was overshadowed in part by the operational story underneath: a record quarter powered by acquisition-driven volume growth, with Adjusted EBITDA rising 27% year over year to $135.98 million as the H2O Midstream and Gravity Water Midstream deals pushed Delaware Basin crude gathering to 153,745 barrels per day and nearly doubled water disposal volumes to 616,484 barrels per day. The Gathering and Processing segment led the way, with Adjusted EBITDA jumping to $82.79 million from $55.02 million a year earlier, while weakness in the Wholesale Marketing and Terminalling segment, partly tied to the reassignment of the Big Spring refinery marketing agreement, weighed on overall profitability. Management responded to the strong operational execution by raising full-year 2025 Adjusted EBITDA guidance to $500 million to $520 million and declaring the partnership's 51st consecutive quarterly distribution increase, setting the payout at $1.12 per unit.
- Incremental EBITDA from H2O Midstream and Gravity Water Midstream acquisitions
- Record crude gathering volumes in the Delaware Basin crude gathering system
- W2W dropdown contributing to increased equity method investment income
- Increased wholesale margins partially offsetting loss of Big Spring refinery marketing agreement
- Delaware crude oil gathering averaged 153,745 bpd, up from 125,123 bpd year-over-year
- Midland Water Gathering System water disposal and recycling volumes of 616,484 bpd versus 311,290 bpd year-over-year
“During the third quarter Delek Logistics continued its strong execution by making progress on the development of sour gas gathering and acid gas injection capabilities. Delek Logistics also had record crude gathering volumes in its Delaware Business. Due to the strong progress we have made so far in the year we are increasing our full year EBITDA guidance higher to $500 - $520 million. We are proud of the 51st consecutive increase in our distribution.”
Delek Logistics Partners CEO, on the earnings call
Forward Guidance & Outlook
Delek Logistics raised its full year 2025 Adjusted EBITDA guidance to $500–$520 million, up from prior guidance, citing strong execution across its business. Management highlighted continued development of acid gas injection and sour gas treating capabilities at the Libby Gas Complex, which is expected to attract incremental producer drilling activity and further expand processing capacity. The company also signaled continued focus on prudent management of liquidity and leverage while pursuing distribution growth.
DKL YoY Financials
DKL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.