Delek Logistics Logs $132M EBITDA, Completes First AGI Well, Raises Distribution
Delek Logistics generated $132 million in Q1 adjusted EBITDA despite a $10 million Winter Storm Fern impact and affirmed full-year guidance of $520–560 million. The partnership completed its first Acid Gas Injection well and raised its quarterly distribution by a 53rd consecutive increase to $1.13 per unit.
1. Earnings and Financial Performance
Delek Logistics reported $132 million in Q1 2026 adjusted EBITDA, reflecting strong execution despite approximately $10 million in headwinds from Winter Storm Fern. The partnership reaffirmed its full-year adjusted EBITDA guidance of $520 million to $560 million.
2. Distribution and Sponsor Independence
The Board approved a 53rd consecutive quarterly distribution increase, raising the payout to $1.13 per unit. Management expects third-party EBITDA to reach roughly 80% of run-rate EBITDA by the end of 2026, advancing economic independence from its sponsor.
3. First AGI Well and Sour Gas Solution
The partnership completed drilling its first Acid Gas Injection well in the Delaware Basin, a key milestone for its integrated sour gas offering. Executives project gas utilization will reach capacity within three to six months, with plans to add processing capacity cost-efficiently.
4. Operational Challenges and Outlook
Wholesale Marketing and Termalling adjusted EBITDA fell to $14 million from $18 million year over year, pressured by the 2024 Amended Extend Agreement and delayed permits for new disposal sites. Management remains confident that its combined gas, crude, and water platform will strengthen competitiveness and drive growth.