Delek Logistics Partners LP
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −5.20%.
Did DKL Beat Earnings? Q4 2025 Results
Delek Logistics Partners posted a disappointing fourth quarter despite record annual results, with earnings per unit of $0.88 falling well short of the $1.14 consensus estimate, a miss of 22.81%, while revenue of $255.77 million came in 9.86% below the $283.76 million Wall Street had anticipated, even as that top line reflected 21.9% year-over-year growth. The primary driver behind the shortfall was the reassignment of the Big Spring refinery marketing agreement to sponsor Delek US Holdings, which weighed on the Wholesale Marketing and Terminalling segment and masked otherwise strong operational momentum. On the brighter side, net income climbed to $47.29 million from $35.30 million a year earlier, and Adjusted EBITDA reached a record $142.28 million for the quarter, buoyed by the Gravity Water Midstream acquisition and record crude gathering volumes in the Delaware Basin. The partnership extended its 52nd consecutive quarterly distribution increase to $1.13 per unit and issued 2026 EBITDA guidance of $520 to $560 million, a range that already absorbs roughly $10 million in headwinds from Winter Storm Fern, with third-party EBITDA expected to exceed 80% as economic separation from Delek US Holdings nears completion.
- Record Adjusted EBITDA driven by strong execution across crude, gas, and water businesses
- Incremental EBITDA from Gravity and H2O Midstream acquisitions
- Increased interest income from sales-type leases in Storage and Transportation segment
- W2W dropdown impact boosting Investments in Pipeline Joint Ventures income
- Record crude gathering volumes in Delaware Basin operations
“Delek Logistics delivered another record year, driven by strong execution across our crude, gas, and water businesses and the continued dedication of our team. 2025 was a pivotal year for Delek Logistics, highlighted by the successful startup of the Libby 2 gas plant, acquisition of Gravity Water Midstream and the execution of strategic intercompany agreements, a combination of which has largely completed DKL's economic separation from its sponsor. We also made meaningful progress advancing sour gas gathering and acid gas injection capabilities, while achieving record crude gathering volumes in our Delaware Basin operations.”
Delek Logistics Partners CEO, on the earnings call
Forward Guidance & Outlook
Delek Logistics initiated 2026 EBITDA guidance of $520 to $560 million, which includes approximately $10 million in negative impact from Winter Storm Fern in Q1 2026. The 2026 guidance reflects increased economic separation from Delek US Holdings, with third-party EBITDA contribution expected to exceed 80%. Management expressed optimism about multi-year growth opportunities in the Delaware Basin driven by the advancement of integrated acid gas injection and sour gas treating solutions at the Libby Complex, which will support expansion of the 'Full-Suite' midstream strategy.
DKL YoY Financials
DKL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.