Q3 2025 Delek Logistics Partners LP Earnings Call Transcript
Key Points
- Delek Logistics Partners LP (DKL) reported a record quarterly adjusted EBITDA of approximately $136 million.
- The company increased its full-year EBITDA guidance to the upper end of the range between $500 million and $520 million.
- Successful commissioning of the new Liby 2 plant and advancements in acid gas injection and sour gas handling capabilities are paving the way for further processing capacity expansions.
- The company achieved a record volume in its crude gathering operations, with strong performance expected to continue.
- Delek Logistics Partners LP (DKL) announced a 50th consecutive increase in the quarterly distribution to $1.12 per unit, highlighting financial prudence and commitment to stakeholders.
- Wholesale marketing and terminally adjusted EBITDA decreased to $21 million from $25 million in the prior year, primarily due to impacts of last summer's amend and extend agreements.
- The company faces challenges in obtaining timely permits for SWDs in the Delaware Basin, which could impact future operations.
- There is uncertainty regarding the exact timing and execution plan for the expansion of the Liby 3 plant and associated infrastructure.
- Despite strong performance, the company is still working on planning and budgeting for the next year, leaving some uncertainty about future capital expenditures and debt management.
- The competitive landscape in the water segment is evolving, with new competitors and market dynamics potentially impacting Delek Logistics Partners LP (DKL)'s strategic positioning.
Thank you for standing by. My name is Jay and I'll be your conference operator today. I would now like to turn the conference over to Robert, Chief Financial Officer. You may begin.
Good morning and welcome to the Delek Logistics Partners 3rd quarter earnings conference call. Participants joining me on today's call will include Abigail Sorek, President, and Ruben Spiegel, EVP.
As a reminder, this conference call will contain forward-looking statements as defined under the Federal securities laws, including statements regarding guidance and future business outlook. Any forward-looking statements made during today's calls will include risks and uncertainties that may cause actual results to differ materially from today's comments. Factors that could cause actual results to differ are included in our SEC filings. The company assumes no obligation to update any forward-looking statements.
I will now turn the call over to Avigal for opening remarks. Avial.
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