Delek Logistics Posts $141.9 M Record Q4 EBITDA; 2026 Cash Flows Guided at $520–560 M
Delek Logistics delivered record fourth-quarter 2025 Adjusted EBITDA of $141.9 million, up 24% from $114.3 million a year earlier, driven by W2W dropdown and H2O Midstream and Gravity acquisitions. The partnership targets 2026 third-party cash flows of $520–$560 million, backed by its three-stream model and Permian Basin investments.
1. Record Fourth Quarter Performance
Delek Logistics Partners delivered a record Adjusted EBITDA of $141.9 million in Q4 2025, marking a 24% increase from the $114.3 million posted in Q4 2024. Higher wholesale margins and inventory benefits underpinned the strongest quarterly performance in the partnership’s history.
2. Growth Drivers and Acquisitions
The improvement reflects contributions from the W2W pipeline dropdown and the September 11, 2024 H2O Midstream acquisition, along with the January 2, 2025 Gravity acquisition. These strategic transactions have expanded throughput capacity and diversified fee-based revenue streams.
3. 2026 Cash Flow Guidance
Management set 2026 third-party cash flow guidance at $520–$560 million, highlighting the durability of its three-stream business model. The outlook assumes continued fee-based earnings stability and disciplined capital allocation to support sustainable distributions.
4. Permian Basin Investments and Outlook
Ongoing ramp-up of gas processing facilities and enhancements in sour gas gathering and acid gas injection across the Permian Basin aim to drive long-term value. Continued investment in midstream infrastructure is expected to improve operational efficiency and bolster margins.