Delek Logistics Partners (DKL) Q2 2026 earnings summary

Executive summary

• Adjusted EBITDA reached $144 million in Q2 2026, with full-year guidance reaffirmed at $520–$560 million and strong operational performance across all segments.

• Net income for Q2 2026 was $28.9 million, down from $44.6 million in Q2 2025, while record crude oil and water volumes were achieved.

• The company expanded crude, gas, and water midstream services in the Permian Basin, increasing third-party revenue and economic separation from the sponsor.

• Leadership transitions included Mark Hobbs as EVP and Kris Kindrick as SVP, Commercial, supporting growth strategy.

• The 54th consecutive quarterly distribution increase was approved, raising the payout to $1.135 per unit.

Financial highlights

• Q2 2026 net revenues rose 56.2% year-over-year to $384.8 million; adjusted EBITDA was $144 million, up from $127 million in Q2 2025.

• Distributable cash flow (DCF), as adjusted, was $81 million, with a DCF coverage ratio of 1.33x.

• Quarterly distribution increased to $1.135 per unit, a 1.8% rise over the prior year.

• Leverage ratio ended at 4.23x, reflecting growth capital investments.

• Liquidity stood at approximately $1.1 billion at quarter-end.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance reaffirmed at $520–$560 million, with management expecting continued cash flow growth driven by the Libby gas plant ramp-up and sour gas gathering expansion.

• Strategic focus remains on organic growth, bolt-on acquisitions, and expanding the third-party customer base.

• Capital spending forecast for 2026 is $255.2 million, with $105.9 million spent in the first half.

• Guidance may be updated later in the year if current trends persist.