Delek Logistics Partners Posts Record $536M EBITDA, Guides $520–560M
Delek Logistics Partners posted record 2025 adjusted EBITDA of $536 million and raised its quarterly distribution 5% to $1.125 per unit, marking 52 straight increases. The partnership commissioned the Libby II plant boosting capacity to 160 million scf/d and issued 2026 EBITDA guidance of $520–560 million.
1. Record Full-Year and Fourth-Quarter Results
Delek Logistics Partners reported a record $536 million of adjusted EBITDA for 2025, while fourth-quarter adjusted EBITDA reached approximately $142 million, up from $114 million a year earlier and $6 million above the third quarter. Distributable cash flow was $73 million with a coverage ratio of about 1.22x.
2. Distribution Increase and 2026 Guidance
The board approved a 5% quarterly distribution increase to $1.125 per unit, marking the 52nd consecutive hike. Management set full-year 2026 adjusted EBITDA guidance at $520 million to $560 million to balance growth opportunities with leverage and coverage targets.
3. Libby II Plant and Sour Gas Buildout
The Libby II natural gas processing plant was commissioned, raising the Libby complex’s capacity to about 160 million scf per day. Acid gas injection and sour gas gathering infrastructure is expected to drive a step change in sour gas utilization upon completion.
4. Liquidity and Segment Operations
The partnership ended the year with roughly $940 million of available liquidity under its credit facilities and spent $32 million of fourth-quarter capital primarily on sour gas capabilities. Segment EBITDA contributions were broad-based, with gains in Gathering & Processing, Storage & Transportation, and pipeline joint ventures.