Delek Logistics Partners, LP Q4 FY2025 earnings call

• 2025 was exceptional with record adjusted EBITDA of $536 million, due to strong execution, addition of high-quality businesses, and employee hard work. - Advanced key initiatives in natural gas, crude, and water businesses in Permian Basin. - 2026 EBITDA guidance range $520 million to $560 million. - Board approved 52nd consecutive quarterly distribution increase to $1.125 per unit. - Rising economic separation from sponsor DK, with ~80% 2026 run rate EBITDA from third parties. - Working on sour gas solution in Delaware Basin, completing processing capacity expansion and AGI well, building sour gas gathering infrastructure. - Crude gathering volumes had record Q4, growing crude infrastructure. - Water business integration went well, looking forward to updated solutions for produced water gathering and disposal. - Total capital spending for Q4 was ~$32 million, $26 million growth capital for sour gas capabilities at Libby Complex.

Natural gas: Successfully commissioned the new Libby 2 processing plant, increasing capacity to around 160 million scf per day, with expansion enhanced by acid gas injection and sour gas handling solution. Crude: DPG and DDG crude gathering operations delivered strong performance, increased overall gathering capacity. Water: Largely completed integration of H2O and Gravity. Gathering and Processing segment adjusted EBITDA for Q4 was $71 million vs $66 million in Q4 2024. Wholesale Marketing and Terminalling adjusted EBITDA was $21 million vs prior year. Storage and Transportation adjusted EBITDA was $35 million vs $18 million in Q4 2024. Investments in Pipeline Joint Venture segment contributed $26 million this quarter vs $18 million in Q4 2024.

2026 EBITDA guidance range is $520 million to $560 million. Reflects growth opportunity while managing leverage and coverage. Confident in earnings trajectory.

Q: Doug Irwin of Citi asked about guidance and G&P segment growth expectations, and about the transaction with DK.

A: Avigal Soreq and Robert Wright responded on guidance, growth, and the transaction showing increased economic separation from DK.

Q: Gabriel Moreen of Mizuho asked about Libby processing expansion next steps and thoughts on sour gas midstream M&A.

A: Avigal Soreq responded on Libby processing expansion looking at customer and producer activity, and on sour gas midstream M&A stating deals need to be accretive to free cash flow, leverage, and coverage ratio