Delek Logistics Partners Delivers Strong Q1 2026 Earnings, Positions Itself for Future Growth
Delek Logistics Partners LP (DKL) reported a strong first quarter in 2026, with Adjusted EBITDA reaching $132 million. The company's performance was driven by its comprehensive sour gas solution, which is expected to bring significant growth opportunities in the Delaware Basin.
Avigal Soreq, President and Chairman of DKL, highlighted the company's achievements during the quarter, stating that "DKL saw a strong execution in the first quarter, despite some challenges associated with Winter Storm Fern. These results are a reflection of strengths in all segments, advancing our position as a premier full-service provider of crude, gas, and water in the Permian Basin."
The company's gas segment performed well, with the successful completion of its first AGI well marking an important step towards completing its industry-leading comprehensive sour gas solution. This capability is expected to support long-term oil and gas production growth in the Delaware Basin.
Reuven Spiegel, Executive Vice President, noted that despite challenges related to Winter Storm Fern, DKL's crude gathering operations continued to see strength, with an increase in overall gathering capacity. The water business also performed strongly, with the company exploring additional opportunities in this space.
The combined gas, crude, and water offering in the Permian Basin has increased DKL's competitive position and built a strong platform for growth. The company plans to continue capturing growth opportunities in a disciplined manner, managing leverage and coverage while remaining good stewards of stakeholder capital.
DKL also announced its 53rd consecutive quarterly distribution increase, raising the distribution to $1.13 per unit. This achievement reflects the company's financial prudence and commitment to delivering sustainable growth and long-term value for unitholders.
Reuven Spiegel emphasized that recent rallies in crude prices, along with the strength of DKL's three-service platform, are presenting incremental opportunities to further increase its advantage in the Permian position. The company expects approximately 80% of its run-rate EBITDA to come from third-party business in 2026.
The sour gas system build-out is expected to bring a step change in utilization, with potential for additional processing capacity. DKL is exploring innovative ways to add capacity and making selected investments that will support future expansion of the Libby Complex.
