Delek Logistics Partners (DKL) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 adjusted EBITDA of $107.2 million, up 6% year-over-year, reflecting strong operational and financial performance.

• Completed key acquisitions in the Permian and Midland Basins, including H2O Midstream, Gravity Water Midstream, and a stake in Wink-to-Webster pipelines.

• Initiated economic separation from sponsor DK/Delek US, with third-party EBITDA contribution reaching ~70% on a pro-forma basis and a $150 million buyback authorization.

• Announced the 48th consecutive quarterly distribution increase to $1.105 per unit, up 0.5% sequentially and 4.7% year-over-year.

Financial highlights

• Q4 2024 adjusted EBITDA was $107.2 million, up from $100.9 million in Q4 2023; distributable cash flow, as adjusted, was $69.5 million with a DCF coverage ratio of 1.2x.

• Q4 2024 net income attributable to limited partners was $34.5 million ($0.68 per diluted unit), up from $22.1 million ($0.51 per unit) in Q4 2023.

• Liquidity post-acquisition of Gravity Water Midstream stands at approximately $530 million, with additional borrowing capacity of $714.6 million under the $1.15 billion revolving credit facility.

• Total debt of $1.88 billion and cash of $5.4 million at year-end.

Outlook and guidance

• 2025 adjusted EBITDA guidance set at $480–$520 million, representing about 20% growth over 2024.

• 2025 capital expenditure guidance includes $75 million for Libby plant expansion and $160 million for growth and maintenance projects.

• DCF coverage ratio expected to return to 1.3x in the second half of 2025.

• Focus on completing Libby plant expansion, adding AGI & sour gas treating, and enhancing Midland basin offerings.