Delek Logistics Partners, LP (DKL): Business Model Canvas [Dec-2025 Updated]

You're digging into the nuts and bolts of Delek Logistics Partners, LP (DKL) to see where the real value is hiding in late 2025, and honestly, the story isn't just about being a logistics provider; it's a focused play on the Permian Basin, anchored by a stable, fee-based revenue stream from its parent, Delek US Holdings, Inc. With 2025 Adjusted EBITDA guidance sitting between $480 million and $520 million and significant capital spending-projected at $220 million to $250 million-for growth, understanding their nine building blocks is crucial for assessing distribution stability. Below, I've broken down the entire Business Model Canvas, simplifying exactly how Delek Logistics Partners, LP makes and keeps its money, so you can see the risks and opportunities clearly.

Delek Logistics Partners, LP (DKL) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that make Delek Logistics Partners, LP run, and honestly, the structure is heavily weighted toward its sponsor. These partnerships are the bedrock for their Permian Basin strategy and liquidity management as of late 2025.

Delek US Holdings, Inc. (DK) as General Partner and anchor customer

Delek US Holdings, Inc. remains central, owning the general partner interest and a substantial portion of the limited partner units. As of March 31, 2025, Delek US Holdings, Inc. and its subsidiaries owned approximately 63.4% of Delek Logistics Partners, LP. This relationship is critical not just for governance but also because Delek US is a significant customer, providing a baseline for throughput and services. This alignment helped facilitate major capital moves, such as Delek Logistics closing its upsized $700 million offering of 7.375% senior notes due 2033 on June 30, 2025, which was used to repay borrowings under its credit facility.

Key aspects of the relationship include:

• Delek US Holdings, Inc. owns the general partner interest.
• Delek US owned approximately 63.4% of DKL as of March 31, 2025.
• Delek US is cited as a significant customer.
• Amended and extended agreements with Delek US for a period of up to seven years were completed in 2024.

Joint venture partners in major pipelines like Wink to Webster (W2W)

Joint ventures provide access to critical infrastructure. The Wink to Webster (W2W) pipeline is a prime example; the impact of the W2W dropdown was evident in Delek Logistics' first quarter 2025 Adjusted EBITDA, which was $116.5 million compared to $99.7 million in the prior-year quarter. Delek Logistics completed the acquisition of Delek US's interest in the W2W pipeline during 2024. These joint ventures, including W2W, RIO, and Caddo, are key to the partnership's growth projections.

Producers with acreage dedications for crude and gas gathering

Securing long-term volume commitments through acreage dedications de-risks capital deployment. Delek Logistics expects to continue benefiting from additional acreage dedications in the crude business in 2025. In late 2024, an agreement was executed for an additional 50,000 acres under a 12-year crude oil gathering agreement, pushing the total dedicated acreage for the Permian Gathering System (DPG) to over 350,000 acres. Overall, in 2024, agreements expanded the total dedicated acreage to approximately ~400,000 acres. This is defintely a strong indicator of future fee-based revenue stability.

Third-party midstream service providers for logistics and water

A major strategic goal is increasing economic separation from the sponsor, which is achieved by growing third-party volumes. Following the January 2025 acquisition of Gravity Water Midstream, the third-party EBITDA contribution reached approximately ~70% on a pro-forma basis as of year-end 2024/early 2025. Furthermore, Delek Logistics is enhancing its capabilities by adding sour natural gas treating and acid gas injection capabilities at the Libby Complex.

Here's a quick look at some of the key partnership-related financial and statistical metrics as of mid-2025:

Partnership Element	Metric/Value	Reference Period/Date
Delek US Holdings, Inc. Ownership	63.4% Limited Partner Interest	March 31, 2025
Senior Notes Offering Size	$700 million	Closed June 30, 2025
Senior Notes Coupon/Maturity	7.375% due 2033	Priced June 2025
Total Acreage Dedication (Crude)	~400,000 acres	As of 2024
New Acreage Dedication (Oct 2024)	50,000 acres (12-year term)	October 2024
Third-Party EBITDA Contribution	~70%	Pro-forma as of Q4 2024
Logistics Segment Adjusted EBITDA	$116.5 million	Q1 2025

Delek Logistics Partners, LP (DKL) - Canvas Business Model: Key Activities

You're looking at the core engine room of Delek Logistics Partners, LP (DKL), the daily actions that turn their physical assets into cash flow. Honestly, for a master limited partnership like DKL, key activities revolve around moving, storing, and processing hydrocarbons and water, all while making sure the infrastructure stays running and growing.

Crude oil and natural gas gathering and processing.

This is about getting the product from the wellhead into the larger system. Delek Logistics Partners, LP focuses heavily on the Permian Basin, which you know is the sweet spot right now. For crude oil gathering, throughput volumes on the Midland Gathering System hit 217,847 barrels per day (bpd) in a recent period. On the natural gas side, gathering and processing volumes were reported at 74,831 Mcfd (thousand cubic feet per day). A major activity here is expanding processing capacity to handle more gas, especially sour gas. They started commissioning the new Libby 2 plant, which is designed to add capacity up to approximately 110 MMcf/d, or specifically 79,139 MCF/day. This expansion is crucial for meeting producer demand in Lea County, New Mexico.

Operating and maintaining extensive pipeline and terminal infrastructure.

Keeping the pipes flowing and the terminals ready is non-negotiable. DKL operates a network supporting crude oil, intermediates, and refined products across the southeastern U.S. and West Texas. This activity includes managing their stake in pipeline joint ventures, like the Wink to Webster Pipeline, which bolsters crude oil transportation capabilities. The overall operational focus is on maintaining and optimizing these assets to support the throughput volumes mentioned above.

Water disposal and recycling services in the Permian Basin.

This segment has seen significant recent focus, especially after acquisitions. Delek Logistics Partners, LP manages a full-cycle water system, which involves gathering, transportation, recycling, storage, and disposal of produced water. Before recent additions, their asset base already included a capacity of 200,000 bbl/d for water disposal. The integration of Gravity Water Midstream, which closed January 2, 2025, for a total consideration of $300.8 million, directly enhanced this capability in the Midland Basin and the Bakken. This activity supports their goal of being a full-suite provider in the Permian. To give you a sense of the impact, in 2023 alone, their pipeline network helped eliminate over 380,000 truckloads of saltwater transport.

Here's a quick look at some of those operational metrics:

Activity Metric	Latest Reported/Guidance Figure	Context/Segment
Adjusted EBITDA Guidance (Full Year 2025)	$480 million to $520 million	Overall Partnership Target
Crude Oil Gathering Throughput	217,847 bpd	Midland Gathering System
Natural Gas Processing Capacity (New Plant)	79,139 MCF/day	Libby 2 Plant
Water Disposal Capacity (Existing Base)	200,000 bbl/d	Pre-Gravity Acquisition Asset Base
Wholesale Marketing & Terminalling Adj. EBITDA (Q2 2025)	$23.3 million	Segment Performance
Total Debt (as of June 30, 2025)	Approximately $2.2 billion	Balance Sheet

Wholesale marketing and terminalling of refined products.

DKL moves and markets finished products like gasoline, diesel, and jet fuel. This involves operating a network of pipelines, terminals, and storage assets, particularly supporting Delek US Holdings, Inc.'s refining system. For example, East Texas - Tyler Refinery sales volumes were reported at 67,682 bpd. The Wholesale Marketing and Terminalling Segment posted an Adjusted EBITDA of $23.3 million for the second quarter of 2025. You should note that the Q2 2025 Adjusted EBITDA for the segment was impacted by the assignment of the Big Spring refinery marketing agreement to Delek Holdings.

Strategic acquisitions and organic growth project development.

Growth is a core activity, often executed through acquisitions and capital projects. The Gravity Acquisition closed on January 2, 2025, for about $300.8 million, which was a mix of cash and DKL units. Furthermore, the Delek Permian Gathering purchasing and blending business was dropped down from Delek Holdings to DKL on May 1, 2025. The partnership is investing for the future, with a 2025 capital expenditures guidance set between $220 million and $250 million, which includes these expansion projects. A key strategic goal is increasing the contribution from third-party customers; management announced agreements that push this third-party EBITDA contribution to approximately 80%.

You'll want to track that distribution growth, which was $1.115 per unit for Q2 2025, marking a 3.7% increase over Q1 2024.

• Focus on Permian Basin integration for crude, gas, and water services.
• Executing on 2025 Adjusted EBITDA guidance of $480 million to $520 million.
• Investing $220 million to $250 million in capital expenditures for 2025.
• Leveraging recent acquisitions (Gravity, H2O Midstream) for synergy realization.
• Maintaining a consistent distribution growth policy, with a recent increase to $1.110/unit for Q1 2025.

Delek Logistics Partners, LP (DKL) - Canvas Business Model: Key Resources

You're looking at the core physical and financial assets that Delek Logistics Partners, LP (DKL) uses to run its business as of late 2025. These resources are the foundation for their midstream service offerings across the Permian Basin and other key areas.

The physical infrastructure is substantial, focused on crude oil, refined products, natural gas, and water handling. This network is critical for maintaining their 'full suite' strategy in the Permian Basin.

Here is a breakdown of the key physical assets:

• The crude oil and refined product pipeline network spans approximately 850 miles.
• The crude oil gathering system covers approximately 700 miles.
• The natural gas processing capacity is supported by the Libby complex.

The Libby 2 gas processing plant, commissioned in 2025, is designed to handle up to 79,139 MCF/day of gas processing capacity. Delek Logistics plans to fill this new capacity by adding 100 million to 120 million cfd in the second half of 2025. Furthermore, the complex is being enhanced with Acid Gas Injection (AGI) and sour gas treating capabilities, expected online in the latter half of 2025.

The integrated water systems stem from strategic acquisitions, specifically H2O Midstream and the closing of the Gravity Water Intermediate Holdings LLC acquisition on January 2, 2025, for a total consideration of $285 million. The Gravity Water assets include integrated full-cycle water systems in the Permian Basin, adding to the combined crude and water offering. Specifically, the Gravity Water assets include:

• Over 200 miles of pipeline.
• 46 saltwater disposal facilities.
• 14 freshwater facilities.
• Over 6 million bbl of storage capacity.

Financially, Delek Logistics Partners, LP bolstered its balance sheet to support growth initiatives. As of mid-2025, following an upsized offering of $700 million in senior notes due 2033, the company increased its total financial liquidity to over one billion dollars. As of September 30, 2025, the available borrowing capacity under the revolving credit facility was $1.0 billion.

You can see the scale of the core infrastructure assets here:

Asset Category	Metric/Amount	Reference Point/Date
Crude Oil & Refined Product Pipelines	850 miles	As of April 1, 2025 Investor Update
Crude Oil Gathering System	700 miles	As of April 1, 2025 Investor Update
Libby 2 Gas Processing Capacity (Design)	Up to 79,139 MCF/day	2025
Total Financial Liquidity	Over $1 billion	As of June 30, 2025
Revolving Credit Facility Availability	$1.0 billion	As of September 30, 2025

The Gravity Water acquisition consideration was $285 million, paid with $200 million in cash and approximately 2.175 million DKL units. This move is defintely key to their water segment growth.

Delek Logistics Partners, LP (DKL) - Canvas Business Model: Value Propositions

Full-suite midstream services provider in the Permian Basin.

Delek Logistics Partners, LP is executing its strategy to be the preferred oil, gas, and water midstream services provider across the Permian Basin. You see this commitment reflected in their asset footprint across both the Midland and Delaware Basins. For instance, the total acreage dedication Delek Logistics Partners, LP has in the Midland Basin stands at approximately 400,000 acres, supported by the Delek Permian Gathering System (DPG) in West Texas. This is part of a broader strategy that now includes capabilities aligned with the recent Gravity and H2O Midstream acquisitions.

Stable, fee-based revenue model for producer customers.

The structure of Delek Logistics Partners, LP's revenue is designed for stability, relying heavily on fee-based contracts. Following recent announcements, the expected third-party EBITDA contribution is approaching ~80%. This shift demonstrates increasing economic separation from the sponsor, Delek US Holdings, Inc.. The business model emphasizes long-term arrangements that provide predictable cash flows, which is key for a master limited partnership (MLP).

Critical logistics support for Delek US Holdings' refining operations.

Delek Logistics Partners, LP's assets are integral to the operations of its sponsor, Delek US Holdings, Inc. Specifically, Delek Logistics Partners, LP's infrastructure forms the backbone supporting Delek US Holdings' refining sites in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana. As of September 30, 2025, Delek US Holdings, Inc. and its subsidiaries owned approximately 63.3% of Delek Logistics Partners, LP, including the general partner interest.

Differentiated sour natural gas treating and acid gas injection capabilities.

A significant value-add is the development of differentiated services addressing regional constraints. Delek Logistics Partners, LP announced the development of permitted acid gas injection (AGI) capabilities at its Libby 2 gas processing plant, which is expected to be operational in the second half of 2025. This capability, enabled by existing AGI well permits and an amine unit under construction, directly removes infrastructure bottlenecks that previously restricted drilling across all six benches of the Delaware Basin by mitigating hydrogen sulfide and carbon dioxide liabilities.

Reliable and consistent distribution growth for unitholders.

You can see the commitment to unitholder returns through a long track record of distribution increases. Delek Logistics Partners, LP declared a quarterly cash distribution of $1.115 per common limited partner unit for the second quarter of 2025. This marked the 50th consecutive increase in the distribution. Management has reiterated its expectation to continue growing distributions in 2025.

Here are some key financial and operational metrics underpinning these value propositions as of mid-2025:

Metric	Value	Period/Context
Reported Adjusted EBITDA	$120.9 million	Q2 2025
Full Year Adjusted EBITDA Guidance	$480 - $520 million	FY 2025 Expectation
Quarterly Cash Distribution	$1.115/unit	Q2 2025
Consecutive Distribution Increases	50th	As of Q2 2025
Third-Party EBITDA Contribution	~80%	Pro-forma after intercompany agreements
Total Midland Basin Acreage Dedication	~400,000 acres	As of Q1 2025
Delek US Ownership in DKL	~63.3%	As of September 30, 2025

The Gathering and Processing (G&P) segment showed particular strength, with Adjusted EBITDA rising to $78.0 million in Q1 2025, up from $57.8 million year-over-year, driven by the Gravity and H2O Midstream acquisitions.

The value propositions are supported by the following strategic achievements:

• Completed commissioning of the new Libby 2 plant.
• Closed the acquisition of Gravity Water Midstream on January 2, 2025.
• Secured an incremental ~34,000 acreage dedication in the Midland Basin.
• AGI capabilities at Libby Complex expected online in the second half of 2025.
• Total debt as of March 31, 2025, was approximately $2.15 billion.

Delek Logistics Partners, LP (DKL) - Canvas Business Model: Customer Relationships

You're looking at how Delek Logistics Partners, LP (DKL) locks in its business flow, and honestly, it's all about long-term security through contracts and a clear commitment to unitholders.

Long-term, take-or-pay contracts with anchor customer (Delek US)

The foundation of DKL's relationship with its anchor customer, Delek US Holdings, Inc. (DK), is built on volume commitments. While the relationship is evolving toward greater independence, these contracts provide crucial cash flow stability. For instance, historical Minimum Volume Commitments (MVCs) included:

• Crude oil transportation: 46kbpd MVC.
• Refined products transportation: 40kbpd MVC.
• Crude oil gathering: 14kbpd MVC.
• East Texas wholesale marketing agreement with DK: 50kbpd MVC.
• Big Spring wholesale marketing agreement with DK: 65kbpd MVC.

Furthermore, a key move to secure a major asset involved amending and extending the contract for the Wink to Webster (W2W) pipeline with DK, moving terms from month-to-month to a duration of up to 7 years. This transition is part of a strategy where, following a transaction in the first half of 2025, a majority of DKL's EBITDA is projected to come from non-related parties, signaling a shift toward a mostly independent midstream company. Still, the relationship remains vital.

Dedicated account management for large Permian Basin producers

DKL is actively strengthening its position as the preferred crude, gas, and water midstream services provider in the prolific Permian Basin. This involves significant capital deployment to meet producer needs directly. A concrete example of this commitment is the successful completion of the new Libby 2 gas processing plant, which expanded needed processing capacity for producer customers in Lea County, New Mexico. Management is also progressing on adding comprehensive Acid Gas Injection (AGI) and sour gas treating capabilities at the Libby Complex to support producers drilling their most productive locations. The Gathering & Processing (G&P) segment saw its Adjusted EBITDA rise to $78.0 million in Q2 2025, up from $54.7 million year-over-year, partly due to incremental EBITDA from recent acquisitions like H2O Midstream and Gravity, which bolster service offerings to these producers.

Investor Relations focused on growing distributions

The commitment to unitholders is a central theme in Investor Relations, demonstrated by a consistent track record of distribution increases. The Q2 2025 distribution was declared at $1.115 per unit, marking the 50th consecutive quarterly increase. As of the latest reported quarter (Q3 2025), DKL declared a distribution of $1.120 per unit, representing the 51st consecutive quarterly increase. Here's how that latest declared distribution compares:

Metric	Value
Q3 2025 Distribution	$1.120/unit
Q2 2025 Distribution	$1.115/unit
Q3 2024 Distribution	$1.100/unit
Sequential Increase (Q2 to Q3 2025)	0.4%
Year-over-Year Increase (Q3 2024 to Q3 2025)	1.8%

Management has reiterated its commitment to growing distributions, even while executing on a full-year Adjusted EBITDA guidance range of $500 million to $520 million for 2025, which was an increase from the initial projection of $480 million to $520 million.

High-touch service to be the defintely preferred midstream provider

The strategy is to offer a 'full suite' of services to become the go-to provider, especially in the Permian Basin. This involves integrating services across crude oil, natural gas, and water. The company's Q3 2025 Adjusted EBITDA reached $136.0 million, up 27% year-over-year, showing strong operational performance supporting this service expansion. Furthermore, the company reported record crude gathering volumes in its Delaware crude gathering system in Q3 2025, which is a direct indicator of increased producer adoption and satisfaction with their asset base in that critical region. They are focused on execution, as evidenced by the completion of major projects like Libby 2, which was estimated to generate cash-on-cash returns of more than 20%.

Finance: draft 13-week cash view by Friday.

Delek Logistics Partners, LP (DKL) - Canvas Business Model: Channels

You're looking at how Delek Logistics Partners, LP (DKL) gets its services-moving crude, products, gas, and water-to market, which is all about the physical assets they control or have a stake in. This is the infrastructure that drives their fee-based revenue.

Owned and operated crude oil and natural gas pipelines.

DKL operates a network supporting its sponsor's refineries and third-party needs. As of late 2025, the company highlights specific operational capacities across its system, which includes gathering and transportation assets.

• Crude and refined product pipeline mileage is reported at approximately 53. miles.
• Gas processing capacity stands at 9+ MMcf/d.
• Water disposal capacity is noted around ~1,25,23 Bbls/d.

Refined product terminals and storage facilities.

The channel includes terminals for light product distribution and storage assets that stabilize supply for refined products like gasoline and diesel across the southeastern U.S. and West Texas. While the exact number of terminals isn't specified, the Storage and Transportation segment contributes to the overall financial picture.

Trucking and ancillary assets for transportation services.

DKL uses trucks and other ancillary assets to provide gathering, transportation, and storage services for crude oil, intermediates, and refined products, primarily supporting the refining system. These assets are integrated into the pipeline and transportation segment operations.

The performance of these operational channels is reflected in the segment Adjusted EBITDA figures reported for the third quarter of 2025:

Segment Channel Grouping	Q3 2025 Adjusted EBITDA
Gathering and Processing (Includes Crude Gathering/Water)	$83. million
Wholesale Marketing and Termining	$21 million
Storage and Transportation (Includes Refined Products)	$19. million

Equity investments in major pipeline joint ventures.

DKL uses equity stakes to gain connectivity and flow assurance, especially supporting the movement of crude oil to Delek US Holdings refineries. These are accounted for as equity method investments, and their financial contribution is tracked separately.

Key joint ventures providing this channel access include:

• RIO Pipeline: 33% ownership interest; 109-mile crude oil pipeline with 145,000 bpd capacity.
• Caddo Pipeline: 50% ownership interest; 80-mile crude oil pipeline with 80,000 bpd capacity.
• Red River Pipeline: 33% ownership interest; 350-mile crude oil pipeline with 235,000 bpd capacity.
• Wink to Webster: 15.6% ownership interest; 650-mile crude oil pipeline.

The financial contribution from this channel in the first quarter of 2025 was $10.2 million from equity method investments, while the Investments in Pipeline Joint Ventures segment contributed $22 million in Adjusted EBITDA for the third quarter of 2025. As of March 31, 2025, DKL's total long-term debt stood at approximately $2,145.7 million.

Delek Logistics Partners, LP (DKL) - Canvas Business Model: Customer Segments

Delek Logistics Partners, LP serves distinct customer groups across its midstream operations, though its relationship with its sponsor remains significant.

Delek US Holdings, Inc. (DK) as the largest, captive customer

Delek US Holdings, Inc. is a foundational customer, owning approximately 63.3% of Delek Logistics Partners, LP as of September 30, 2025. The Partnership faces risks due to this heavy reliance on Delek Holdings, which is the primary customer for a majority of its assets. However, the economic separation is increasing; announcements of intercompany transactions in the first quarter of 2025 pushed the third-party cash flow contribution to ~80%. The Wholesale Marketing and Terminalling segment specifically reported East Texas - Tyler Refinery sales volumes of 67,682 bpd. Delek US Holdings, Inc. also has an authorization to buy back common units up to $150 million from DK through 2026, under which Delek Logistics Partners, LP acquired $10 million worth of units from DK in the first quarter of 2025.

Crude oil and natural gas producers in the Permian Basin (Midland/Delaware)

A core segment involves crude oil and natural gas producers in the Permian Basin, specifically the Midland and Delaware sub-basins. The Gathering and Processing segment reported throughput volumes including 217,847 bpd for the Midland Gathering System and 74,831 Mcfd for Natural Gas Gathering and Processing. The Partnership is actively expanding services for these producers, evidenced by the commissioning of the new Libby 2 gas processing plant, which provides needed processing capacity expansion to producer customers in Lea County, New Mexico. Furthermore, Delek Logistics Partners, LP is constructing a new natural gas processing plant in the Delaware Basin, expected to have a capacity of approximately 110 MMcf/d. The third quarter of 2025 saw reported record crude gathering volumes in the Delaware crude gathering system.

Third-party refiners and marketers in the Gulf Coast and Southeast U.S.

Delek Logistics Partners, LP provides storage, wholesale marketing, and terminalling services primarily for intermediate and refined product customers in select areas in the Gulf Coast region. This service line supports third-party refiners and marketers operating in these key downstream markets.

Independent third parties utilizing wholesale marketing and terminalling

Independent third parties engage with Delek Logistics Partners, LP for its wholesale marketing and terminalling services, contributing to the growing third-party revenue base. The shift towards third-party business is a strategic focus, with the goal to pursue expansion opportunities and expand the customer base.

Key operational metrics relevant to customer segment activity:

Metric/Segment Area	Value	Reporting Period/Context	Source Reference
Third-Party EBITDA Contribution	~80%	As of Q1 2025	cite: 3, 6
Midland Gathering System Throughput	217,847 bpd	Reported Volumes	cite: 2
Natural Gas Gathering and Processing Throughput	74,831 Mcfd	Reported Volumes	cite: 2
New Delaware Basin Gas Plant Capacity	110 MMcf/d	Expected Capacity	cite: 2
East Texas - Tyler Refinery Sales Volume	67,682 bpd	Wholesale Marketing and Terminalling Segment	cite: 2
DKL Ownership by Delek US Holdings, Inc.	63.3%	As of September 30, 2025	cite: 7
Full Year Adjusted EBITDA Guidance	$480 - $520 million	For 2025	cite: 5

The Partnership's operations are structured across four segments:

• Gathering and Processing
• Wholesale Marketing and Terminalling
• Storage and Transportation
• Investments in Pipeline Joint Ventures

The Gathering and Processing segment saw Adjusted EBITDA of $81.1 million in the first quarter of 2025 compared with $57.8 million in the first quarter of 2024. The Wholesale Marketing and Terminalling segment Adjusted EBITDA was $23.3 million in the second quarter of 2025, compared with $30.2 million in the second quarter of 2024.

Delek Logistics Partners, LP (DKL) - Canvas Business Model: Cost Structure

High capital expenditures for growth projects are a major component of Delek Logistics Partners, LP's cost base, with projections for 2025 set between $220 million and $250 million, including expansion projects.

The structure carries significant interest expense on long-term debt. As of June 30, 2025, Delek Logistics Partners, LP reported total long-term debt of approximately $2,211.4 million. This debt load supports operations and growth, including the June 30, 2025, closing of an upsized offering of $700 million in aggregate principal amount of 7.375% senior notes due 2033. For context on interest burden, Delek Logistics Partners, LP reported an interest expense, net of $84.1 million for the first quarter of 2025, though this figure is from consolidated Delek US Holdings data.

Operating and maintenance costs for pipeline and processing assets are inherent to the midstream infrastructure business. While specific 2025 operating and maintenance cost figures aren't explicitly isolated for DKL, the company's Total Operating Expenses were reported at $46 million for the full year 2024. The company is focused on operational efficiency, such as the Libby 2 gas processing plant commissioning, which is expected to reach full operational capacity by late 2025.

General and administrative expenses include costs tied to strategic activity. Transaction costs from recent acquisitions are a notable part of this. For the second quarter of 2025, Delek Logistics Partners, LP reported transaction costs of $2.5 million included in its GAAP EBITDA calculation. In the first quarter of 2025, transaction costs were $3.3 million. The scale of recent investments driving these costs includes the acquisition of Gravity Water Midstream for $285 million and the acquisition of H2O Midstream for a total consideration of $230 million.

Costs associated with water disposal and recycling operations are now integrated following major capital outlays. The acquisition of H2O Midstream, which includes water gathering, transportation, recycling, storage, and disposal services, totaled $230 million. The subsequent acquisition of Gravity Water Intermediate Holdings LLC for $285 million further expanded this water management segment.

Here's a quick look at some key cost-related financial metrics:

Cost/Debt Metric	Amount (USD Millions)	Period/Projection
Projected Capital Expenditures	$220 - $250	2025 Projection
Total Long-Term Debt	$2,211.4	As of Q2 2025
New Senior Notes Issued	$700.0	June 2025
Transaction Costs (Q2)	$2.5	Q2 2025
Transaction Costs (Q1)	$3.3	Q1 2025
H2O Midstream Acquisition Cost	$230	Total Consideration
Gravity Water Acquisition Cost	$285	Total Consideration

You can see the embedded costs from growth initiatives:

• Capital investment for expansion projects is explicitly budgeted for 2025.
• Debt issuance costs are part of the overall financing structure.
• Transaction costs hit the P&L directly, like the $2.5 million in Q2 2025.
• The integration of water assets means operational costs now include water gathering and disposal.

Finance: draft 13-week cash view by Friday.

Delek Logistics Partners, LP (DKL) - Canvas Business Model: Revenue Streams

You're looking at how Delek Logistics Partners, LP (DKL) brings in the cash, which is heavily reliant on fee structures across its midstream assets. Honestly, for a master limited partnership, the revenue streams are all about volume commitments and tariffs, not commodity price swings.

The overall expectation for the year is strong. Management increased its full-year Adjusted EBITDA guidance to the upper end of the $500 million to $520 million range following solid execution through the third quarter of 2025.

Here's a look at some of the key components driving that expected performance, using the latest reported quarterly figures from 2025:

Revenue Stream Component	Q3 2025 Reported Amount (USD Millions)	Context/Driver
Income from Equity Investments (e.g., W2W)	$21.9 million	Primarily due to the impacts of the W2W dropdown.
Gathering & Processing Adjusted EBITDA	Not explicitly stated for Q3 2025, but Q1 2025 was $81.1 million	Driven by H2O and Gravity contributions and higher Midland throughput.
Wholesale Marketing & Terminalling Adjusted EBITDA	$21.4 million	Decrease from prior year due to assignment of Big Spring refinery marketing agreement to Delek Holdings, partially offset by increased wholesale margins.
Storage & Transportation Adjusted EBITDA	$19.3 million	Decline primarily due to decreased rates.

The fee-based revenue from crude oil and gas gathering and transportation is the core engine, supported by asset growth. For instance, the company reported record crude gathering volumes in its Delaware Business during the third quarter of 2025. This segment benefits from the commissioning of the Libby 2 gas plant, which adds 100-120 MMcf/d of processing capacity.

The push toward a full-suite provider is evident in the water services revenue stream, which is bundled into the recent H2O and Gravity Midstream acquisitions. These acquisitions, along with the W2W dropdown, have materially improved the revenue mix.

To be fair, the overall reported revenue for the third quarter ending September 30, 2025, was $261.3M, up 6.1% from the prior quarter. This is up significantly year-over-year from $214.07 million in Q3 2024.

The revenue streams are also characterized by a growing independence from the sponsor, Delek US Holdings (DK). The third-party EBITDA contribution reached approximately 80% pro forma as of Q1 2025 due to intercompany contract changes and acquisitions, which is a key strategic financial goal.

You can see the quarterly distribution growth continuing, which is directly supported by these cash flows:

• Q3 2025 distribution declared at $1.120 per common limited partner unit.
• Q1 2025 distribution was $1.110 per unit.
• This marks the 51st consecutive quarterly distribution increase as of Q3 2025.

The company is also actively investing in future revenue capacity, with planned capital expenditures for 2025 estimated between $220 million to $250 million, focused on expansion projects like the acid gas injection (AGI) and sour gas treating solution at the Libby Complex.

Finance: draft the Q4 2025 revenue forecast based on Q3 run-rate by Monday.