Delek Logistics Q1 Revenue Climbs 19% to $297.5M, EPS Misses
Delek Logistics reported Q1 adjusted EPS of $0.60, missing the $0.78 consensus, while revenue rose 19% to $297.46 million, surpassing the $242.45 million estimate despite disruptions from Winter Storm Fern. The company achieved adjusted EBITDA of $132.3 million, maintained its 2026 guidance range of $520 million–$560 million, and increased its quarterly distribution by 1.8% to $1.13 per unit.
1. Q1 Financial Highlights
Delek Logistics posted adjusted earnings per unit of $0.60, below the $0.78 analyst consensus, and recorded revenue of $297.46 million, up 19% year over year from $249.93 million. Adjusted EBITDA reached $132.3 million, increasing from $123.2 million in the prior-year quarter.
2. Segment Breakdown
The Gathering and Processing segment generated $82.9 million of adjusted EBITDA, up from $81.1 million last year, driven by crude and water gathering growth. The Wholesale Marketing and Terminalling segment saw adjusted EBITDA fall to $14.3 million from $17.8 million, reflecting the end of an East Texas marketing agreement.
3. Operational Developments
The ramp-up of Delaware crude and water gathering businesses contributed to top-line strength, and drilling of the first acid gas injection well advanced the sour gas gathering project. Management noted continued execution across crude, gas and water segments despite weather-related headwinds.
4. Guidance and Distribution
The company reaffirmed its full-year 2026 adjusted EBITDA guidance of $520 million to $560 million, centered on a $540 million midpoint. It declared a quarterly distribution of $1.130 per unit, marking a 1.8% increase year over year and the 53rd consecutive quarterly payout increase, payable May 11, 2026.