Delek Logistics Partners LP (DKL) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

to differ are included in our SEC filings. The company assumes no obligation to update any forward-looking statements. I will now turn the call over to Abigail for opening remarks. Abigail? Thank you, Robert. The electric logistics partner had another record quarter. We reported approximately $120 million in quarterly adjusted EBITDA. DKL is on track to deliver its full EBITDA guidance of $480 to $520 million. Delac Logistics continues to make substantial progress in improving its position as a premier pool service, crude, natural gas, and water provider in the most prolific areas of the Permian Basin. During the quarter, we successfully completed the commissioning of the new LIBI plant. We are very excited about the opportunities this expansion has opened for us and expect to fill the plant to capacity in the second half of 2025. This expansion and our ongoing efforts on acid gas injection and sour gas handling capabilities will further improve our natural gas offering in the Delaware Basin. I'm also very pleased with our crude and water gathering operations. Both DPG and DDG crude gathering operations have started the second half of the year strong with both showing significant rise in volumes. We look forward to continue building on its strength through the remainder of 2025 and beyond. Between our two water acquisitions and increasing dedication, we expect to grow our competitive position in both Midland and the Delaware Basin. As we have demonstrated in the past, we will continue to grow our partnership to prudent management of leverage and coverage. We not only intend to remain good stewards of stakeholder capital, we also intend to continue to reward them through our peer-leading distributions. I am pleased to announce that our Board of Directors have approved...