Delek Logistics Crushes Q1, Eyes $550M EBITDA

Delek Logistics Partners delivers impressive Q1 results, marking their fifty-third consecutive quarterly distribution hike to $1.13 per unit. Adjusted EBITDA surges to $132 million, up from $123 million last year, with distributable cash flow at $72 million and solid 1.2 times coverage. Despite a $10 million storm impact, they exceed expectations. The company plans $180-$190 million in growth capex this year, aiming for a $75 million extra EBITDA run rate. Their balance sheet is robust, with leverage at 4.05 times and liquidity at $1.1 billion. Operations are thriving, with sour gas gathering on the rise and crude gathering volumes recovering strongly. Executives express optimism, labeling it their best first quarter ever. Water business is outperforming, benefiting from rising water cuts and permitting challenges for disposal wells. Gas utilization is expected to reach capacity in 3-6 months, prompting plans for more processing at the Libby complex. Water solutions are evolving into a full platform play, and new pipelines should alleviate Waha pricing pressures later this year. Delek Logistics maintains full-year EBITDA guidance of $520-$560 million, positioning them for continued success in driving value for unitholders through disciplined growth. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/a1041339f0788aac