Delek Logistics Partners, LP (NYSE: DKL) has reported its financial results for the second quarter of 2025. The company's net income for the quarter was $44.6 million, representing a significant increase from the net income of $41.1 million reported in the second quarter of 2024. Additionally, the reported adjusted EBITDA for the second quarter of 2025 was $120.9 million, marking an 18% increase compared to the same period last year.
In terms of liquidity, Delek Logistics declared a quarterly cash distribution of $1.115 per common limited partner unit for the second quarter of 2025, indicating a 0.5% increase from the first quarter of 2025. This also represents the 50th consecutive quarterly increase in distribution for the company.
As of June 30, 2025, the company had total debt of approximately $2.2 billion and cash of $1.4 million, with a leverage ratio of approximately 4.32x. The additional borrowing capacity under the $1.2 billion third-party revolving credit facility was reported to be $1.1 billion.
Looking at the company's segments, the gathering and processing segment reported an adjusted EBITDA of $78.0 million for the second quarter of 2025, compared with $54.7 million in the second quarter of 2024, representing a substantial increase primarily due to incremental EBITDA from the gravity and H2O Midstream acquisitions. However, the wholesale marketing and terminalling segment's adjusted EBITDA decreased to $23.3 million in the second quarter of 2025 from $30.2 million in the same period last year, primarily due to the assignment of the Big Spring refinery marketing agreement to Delek Holdings, partially offset by an increase in wholesale margins.
The storage and transportation segment reported an adjusted EBITDA of $16.9 million for the second quarter of 2025, compared with $16.8 million in the second quarter of 2024. Furthermore, income from equity method investments in the pipeline joint ventures segment was $10.5 million during the second quarter of 2025, compared to $7.9 million in the same period last year.
On a corporate level, the adjusted EBITDA for the second quarter of 2025 was a loss of $7.9 million, compared to a loss of $7.1 million in the second quarter of 2024.
Delek Logistics' President, Avigal Soreq, expressed confidence in the company's full-year adjusted EBITDA guidance of $480 million to $520 million, citing a strong execution and a long runway of growth. The company also successfully completed the construction of the new Libby 2 plant and several crude and water gathering projects during the second quarter of 2025.
Additionally, Delek Logistics successfully executed a $700.0 million debt offering maturing in June 2033, which has improved the company's total liquidity to over $1 billion, reinforcing its growth efforts as an independent entity.
Investors will have the opportunity to listen to the conference call discussing the second quarter 2025 results on the company's website. The market has reacted to these announcements by moving the company's shares -0.2% to a price of $44.99. If you want to know more, read the company's complete 8-K report here.
