Delek Logistics Partners, LP (DKL): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at a midstream player that's clearly executing, and honestly, the numbers from late 2025 tell a compelling story about their strategy. Delek Logistics Partners, LP just notched its 51st consecutive quarterly distribution increase, pushing the Q3 payout to $1.120 per unit, all while management hiked the full-year Adjusted EBITDA guidance to a $500 - $520 million range on the back of strong Permian growth. If you want to see how their core assets-the 'Product'-are positioned geographically ('Place'), how they talk to the market ('Promotion'), and what that fee-based structure means for your returns ('Price'), stick around; we're breaking down the whole marketing mix below.

Delek Logistics Partners, LP (DKL) - Marketing Mix: Product

Delek Logistics Partners, LP (DKL) offers a full suite of midstream services designed to support the continuous movement and processing of energy resources across key production and distribution regions, including the Permian Basin and the Gulf Coast area. The product offering is an integrated infrastructure solution encompassing crude oil, natural gas, and water handling, alongside refined product logistics.

The crude oil logistics component centers on gathering and transportation infrastructure. Delek Logistics Partners, LP (DKL) operates approximately ~850 miles of crude oil and refined product transportation pipelines, complemented by a 700-mile crude oil gathering system. The company reported record crude gathering volumes in its Delaware crude gathering system during the third quarter of 2025. Throughput volumes for the Midland Gathering System were reported at 217,847 bpd for the period ending February 26, 2025.

The natural gas service line includes processing and treating capabilities. Delek Logistics Partners, LP (DKL) is advancing its sour natural gas treating and acid gas injection (AGI) capabilities at the Libby Gas Complex. The company has planned investments of approximately $75 million to complete the Libby processing plant expansion. Furthermore, expansion is underway for a new natural gas processing plant in the Delaware Basin, projected to have a capacity of approximately 110 MMcf/d. Existing processing capacity is noted at 9+ MMcf/d.

Water management is a key product, providing disposal and recycling services. Delek Logistics Partners, LP (DKL) offers water disposal and recycling services with a stated capacity of ~125,23 Bbls/d. Following the acquisition of Gravity Water Intermediate Holdings LLC, the assets included 46 saltwater disposal facilities and 14 freshwater facilities, providing over 6 million bbl of storage capacity. The results from these acquired H2O Midstream and Gravity operations contributed to the Adjusted EBITDA in the third quarter of 2025.

For refined products, Delek Logistics Partners, LP (DKL) provides wholesale marketing and terminalling services. The performance of this segment shows specific financial and volume metrics across recent quarters:

The overall product suite is supported by extensive infrastructure, which can be summarized by key asset metrics:

• Crude oil and refined product transportation pipelines: ~850 miles.
• Crude oil gathering system: 700 miles.
• Water disposal capacity: ~125,23 Bbls/d.
• Natural gas processing capacity: 9+ MMcf/d.
• RIO Pipeline (JV interest): 109-mile crude oil pipeline with 145,000 bpd capacity.
• Caddo Pipeline (JV interest): 80-mile crude oil pipeline with 80,000 bpd capacity.

The company's strategy is focused on enhancing its 'full suite' offering, particularly through integration of recent water acquisitions and expansion of gas treating capabilities. Finance: review Q3 2025 segment EBITDA against 2025 guidance targets by end of week.

Delek Logistics Partners, LP (DKL) - Marketing Mix: Place

Delek Logistics Partners, LP's distribution strategy centers on its integrated midstream infrastructure, heavily weighted toward the prolific Permian Basin and direct connectivity to its sponsor's refining assets across the Southeast U.S.

Strategic Concentration in the Permian Basin

Delek Logistics Partners, LP has enhanced its position as a premier midstream provider in the Permian Basin, offering a full suite of services including crude oil, natural gas, and water handling. The operations leverage existing assets in both the Midland and Delaware basins. The company reported record crude gathering volumes in its Delaware crude gathering system during the third quarter of 2025.

The asset base supporting this concentration includes:

The company is focused on expanding its combined crude and water offering in the Midland Basin.

Key Refining Connectivity

The distribution network is fundamentally anchored to the logistics required by Delek US Holdings, Inc.'s refining system. Delek US Holdings operates refineries in Tyler and Big Spring, Texas, El Dorado, Arkansas, and Krotz Springs, Louisiana. The combined nameplate crude throughput capacity across these facilities is 302,000 barrels per day.

Specific joint venture assets enhance this connectivity:

• Caddo Pipeline: 50% ownership interest in an 80-mile crude oil pipeline with 80,000 bpd capacity, moving light sweet crude into Delek US's El Dorado, AR refinery.
• Red River Pipeline: 33% ownership interest in a 350-mile crude oil pipeline with 235,000 bpd capacity, providing connectivity to the Cushing market hub.

Network of Distribution Terminals

Delek Logistics Partners, LP's network includes assets for storage, wholesale marketing, and terminalling services for intermediate and refined products. The reported number of light product distribution terminals is 0. However, the overall portfolio supports refined products distribution across the southeastern U.S. and West Texas.

General pipeline and transportation metrics include:

• Crude oil and refined product pipeline length: ~53 miles.
• Total consolidated long-term debt as of September 30, 2025: approximately $2.3 billion.
• Total consolidated long-term debt as of June 30, 2025: $2,211.4 million.

Joint Venture Interests to the Gulf Coast

Delek Logistics Partners, LP holds interests in major pipelines providing long-haul takeaway capacity, including to the Gulf Coast region. The partnership acquired Delek US's interest in the Wink to Webster (W2W) pipeline.

Key joint venture details:

The partnership also completed the acquisition of H2O Midstream for $230 million and Gravity Water Holdings LLC for $209.3 million in cash plus 2,175,209 DKL common units.

Anchor to Sponsor, Delek US Holdings, Inc.

Operations are defintely anchored to the sponsor, Delek US Holdings, Inc. (DK), which owned approximately 63.3% of Delek Logistics Partners, LP as of September 30, 2025. This relationship includes amended and extended contracts for a duration of up to seven years.

Financial figures showing the consolidation:

• DKL Total Long-Term Debt (as of September 30, 2025): approximately $2,288.3 million.
• DKL Total Long-Term Debt (as of June 30, 2025): $2,211.4 million.
• DKL Cash Balance (as of September 30, 2025): $6.9 million.

DKL's full-year 2025 Adjusted EBITDA guidance was increased to $500 to $520 million.

Delek Logistics Partners, LP (DKL) - Marketing Mix: Promotion

Delek Logistics Partners, LP (DKL) promotion strategy is heavily weighted toward the financial community, as is typical for a Master Limited Partnership (MLP). The primary communication channel is Investor Relations (IR), focusing on stability, growth, and unitholder returns rather than broad consumer advertising.

A key element of this communication is the consistent message around distribution growth. Management publicized the achievement of its 51st consecutive quarterly increase in the distribution as of the third quarter of 2025 results. For the third quarter of 2025, the declared quarterly cash distribution was $1.120 per common limited partner unit. This represented a 0.4% increase from the second quarter 2025 distribution of $1.115 per common limited partner unit.

The promotion of strategic growth is tied directly to acquisitions that enhance third-party revenue streams. The closing of the Gravity Water Midstream Acquisition on January 2, 2025, for a total consideration of $285 million (comprising $200 million in cash) was heavily publicized as a step toward greater economic separation from its sponsor. This, combined with the recent H2O Midstream acquisition, was used to highlight the shift in the revenue mix.

The success of these moves is quantified in promotional materials to demonstrate strategic execution. Following the first quarter of 2025, Delek Logistics Partners announced that these intercompany transactions pushed the third-party EBITDA contribution to ~80%. This figure is a critical metric used to convey diversification and stability to the investment audience.

Transparency is maintained through regular formal updates, such as quarterly earnings calls and webcasts. The third quarter 2025 financial results were released on November 7, 2025, providing unitholders with current performance data.

The promotion highlights specific operational and financial achievements from these calls to support the forward-looking narrative:

• Reported third quarter 2025 Adjusted EBITDA was $136.0 million.
• Net income for the third quarter 2025 was $45.6 million.
• Distributable cash flow, as adjusted, was $74.1 million for the third quarter 2025.
• Full-year Adjusted EBITDA guidance was increased to $500 - $520 million.
• The company reported record crude gathering volumes in the Delaware crude gathering system.

The narrative consistently links asset expansion to unitholder returns, as shown in the following summary of key promotional data points:

The messaging emphasizes the structural shift away from reliance on the sponsor, Delek US, by detailing the growth in third-party volumes and revenue streams. This is reinforced by highlighting specific operational milestones, such as the commissioning of the Libby 2 gas plant, which supports the increased processing capacity.

Delek Logistics Partners, LP (DKL) - Marketing Mix: Price

The pricing structure for Delek Logistics Partners, LP (DKL) is fundamentally tied to its service contracts and the resulting fee-based revenue model, which is designed to offer predictable cash flows rather than direct commodity price exposure.

The structure aims for customer accessibility through stable service fees. This approach is supported by the increasing economic separation from its sponsor, Delek US Holdings, Inc. Specifically, third-party cash flow contribution is targeted at approximately 80%, which helps insulate the partnership's pricing power from immediate swings in crude oil or refined product markets.

The direct financial reflection of this stability for unitholders is seen in the consistent distribution policy. You can see the latest declared payout below:

Management's confidence in sustaining and growing these payments is reflected in their forward-looking financial targets, which underpin the perceived value proposition for investors seeking yield. The expected profitability supports the distribution policy:

• Full-year 2025 Adjusted EBITDA guidance is set in the range of $500 - $520 million.
• The targeted Distribution coverage ratio by year-end 2025 is approximately 1.3x.

To achieve these profitability and coverage targets while expanding service offerings, Delek Logistics Partners, LP has allocated capital for future growth. This capital expenditure plan directly influences the future capacity and service quality that supports the current pricing structure:

Capital expenditures for 2025 are projected to be between $220 - $250 million for growth projects. This investment supports the infrastructure that generates the fee-based revenue stream you are analyzing.