Delek Logistics Partners ( (DKL) ) has released its Q4 earnings. Here is a breakdown of the information Delek Logistics Partners presented to its investors.
Delek Logistics Partners, LP is a midstream energy master limited partnership based in Brentwood, Tennessee, providing transportation, storage, and marketing services primarily for crude oil and natural gas in the Permian and Delaware Basins, with a focus on increasing economic independence from its sponsor, Delek US Holdings, Inc.
Delek Logistics Partners reported record financial results for the fourth quarter of 2024, with a net income of $35.3 million and an adjusted EBITDA of $107.2 million, marking a 6% increase year-over-year. The company made significant strides in 2024 towards becoming a full-suite Permian midstream services provider, highlighted by strategic acquisitions and expansions.
Key financial highlights include the completion of the acquisition of Delek US’ interest in the Wink to Webster pipeline, the acquisition of H2O Midstream, and the final investment decision on a new gas processing plant. The company also increased its dedicated acres in the Midland basin to approximately 400,000 acres and raised approximately $298 million from primary offerings to fund growth projects. The economic separation from its sponsor was enhanced with third-party EBITDA contribution reaching approximately 70% on a pro-forma basis.
Looking ahead, Delek Logistics has started 2025 on a strong note with the acquisition of Gravity Water Midstream and announced a full-year adjusted EBITDA guidance of $480 to $520 million. The company continues to focus on distribution growth, with a recent increase to $1.105 per unit, and has authorized a $150 million buyback of Delek US-owned common units, aiming to reduce outstanding units and distributions.
Delek Logistics’ management remains optimistic about future growth, focusing on completing the Libby plant expansion and enhancing its crude and water offerings in the Midland basin. The company plans to continue strengthening its financial position through prudent management of liquidity and leverage, aiming for sustained growth and value creation for its unit holders.