DKL · Delek Logistics Partners, LP

Delek Logistics delivered solid operational performance in Q1 2026, with Adjusted EBITDA rising 7.4% year-over-year to $132.3 million—driven by higher wholesale marketing margins and increased income from sales-type leases, particularly in the Storage and Transportation segment (+$10.7M YoY). The Gathering and Processing segment also contributed modestly (+$1.8M), while Wholesale Marketing and Terminalling declined (-$3.5M) due to termination of the East Texas marketing agreement with Delek Holdings. Net income fell 17% YoY to $32.4 million, explicitly attributed to the impact of Winter Storm Fern—a material near-term headwind that affected operations but did not derail core execution. Management reaffirmed full-year 2026 Adjusted EBITDA guidance of $520–$560 million, underscoring confidence in continued growth from third-party volumes, Delaware Basin ramp-up, and sour gas infrastructure progress—including completion of the first acid gas injection (AGI) well at the Libby Gas Complex. Distribution growth remained uninterrupted (53rd consecutive increase), supported by stable distributable cash flow ($72.4M, down modestly from $75.1M in Q1 2025) and strengthened liquidity: the new $1.3 billion revolving credit facility—up $150 million and extended to 2031—provides $1.1 billion of available capacity against $2.3 billion total debt and a 4.05x leverage ratio as of March 31, 2026. These results confirm DKL’s ongoing economic separation from its sponsor and reinforce its midstream platform’s resilience and strategic positioning in high-growth basins.