Delek Logistics Partners, LP (DKL): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how the crude oil and refined products you use daily make their way from the source to your hands? Delek Logistics Partners, LP (DKL), a publicly traded master limited partnership, plays a pivotal role in this journey. But how exactly does DKL operate, what's its history, who owns it, and most importantly, how does it generate revenue? Keep reading to discover how this growth-oriented company, with a $2.34B market cap as of March 2025, has become a key player in the Permian Basin's midstream sector, reporting a record adjusted EBITDA of $107.2 million in Q4 2024, up 6% year over year.

Delek Logistics Partners, LP (DKL) History

Delek Logistics Partners, LP Founding Timeline

Year established

The company was established in 2012.

Original location

The company is headquartered in Brentwood, Tennessee.

Founding team members

While specific names of the founding team members are not readily available in the provided context, the company was formed by Energy as a master limited partnership to own, operate, acquire and construct crude oil and refined products logistics and marketing assets.

Initial capital/funding

Details on the initial capital or funding for the company's establishment in 2012 are not explicitly available in the provided search results.

Delek Logistics Partners, LP Evolution Milestones

Delek Logistics Partners, LP Transformative Moments

• Strategic Acquisitions: The acquisitions of Alon USA Partners, LP and other pipeline and terminal assets significantly expanded the company's operational footprint and diversified its service offerings.
• Investment in Key Regions: Strategic investments in the Permian Basin and other key energy production areas allowed the company to capitalize on growing crude oil production and enhance its market position.
• Focus on Operational Efficiencies: By focusing on operational excellence, the company has improved reliability, safety, and profitability across its operations.
• Review of Strategic Alternatives: Delek Group's announcement in November 2023 to explore strategic alternatives for its stake in Delek Logistics marked a potential shift in the company's ownership structure and strategic direction.

For more insight into the company's guiding principles, see: Mission Statement, Vision, & Core Values of Delek Logistics Partners, LP (DKL).

Delek Logistics Partners, LP (DKL) Ownership Structure

Delek Logistics Partners, LP (DKL) operates with a master limited partnership (MLP) structure, influencing its ownership distribution and governance.

Delek Logistics Partners, LP Current Status

Delek Logistics Partners, LP is a publicly traded master limited partnership. It is listed on the New York Stock Exchange under the ticker symbol DKL.

Delek Logistics Partners, LP Ownership Breakdown

Understanding the ownership structure of Delek Logistics Partners, LP provides insight into the distribution of control and financial interests within the organization.

Delek Logistics Partners, LP Leadership

The leadership team guides the strategic direction and operational execution of Delek Logistics Partners. Here are some key aspects of its leadership and governance:

• General Partner Control: Delek US Holdings, Inc., as the general partner, exercises significant control over Delek Logistics Partners. This includes the power to appoint the board of directors and manage the partnership's operations.
• Board of Directors: The board of directors is responsible for overseeing the management of the partnership and making strategic decisions.
• Executive Officers: The executive officers are responsible for the day-to-day management of the partnership's business.

For more insights into the company's values, check out Mission Statement, Vision, & Core Values of Delek Logistics Partners, LP (DKL).

Delek Logistics Partners, LP (DKL) Mission and Values

Delek Logistics Partners is committed to operating safely and responsibly while providing reliable and efficient midstream services. Their core values emphasize integrity, respect, and a focus on creating value for their stakeholders.

Delek Logistics Partners, LP Core Purpose

Official mission statement

While Delek Logistics Partners, LP does not have a single, explicitly stated mission statement readily available in their filings or investor relations, their operational priorities and values reflect their core purpose. The company focuses on providing reliable and safe midstream services, emphasizing operational excellence and financial discipline.

• Ensuring the safe and reliable transportation, storage, and processing of crude oil and refined products.
• Maintaining operational excellence across all assets to maximize efficiency and minimize environmental impact.
• Creating long-term value for stakeholders through strategic investments and disciplined financial management.

Vision statement

Similarly, a specific vision statement is not formally declared. However, the vision can be inferred from their strategic objectives and long-term goals:

• To be a leading provider of midstream energy services in the markets they serve.
• To grow and diversify their asset base through strategic acquisitions and organic projects.
• To deliver sustainable value to unitholders through consistent distributions and responsible capital allocation.

Company slogan/tagline

Delek Logistics Partners, LP does not have a widely publicized official slogan or tagline. Instead, they emphasize their commitment to operational integrity and reliability in their communications.

For more in-depth information about the investors of Delek Logistics Partners, LP, check out this profile: Exploring Delek Logistics Partners, LP (DKL) Investor Profile: Who’s Buying and Why?

Delek Logistics Partners, LP (DKL) How It Works

Delek Logistics Partners, LP (DKL) operates as a midstream energy company, focusing on gathering, transporting, storing, and processing crude oil and natural gas in the United States. They generate revenue primarily through transportation, storage, and processing fees.

Delek Logistics Partners, LP's Product/Service Portfolio

Delek Logistics Partners, LP's Operational Framework

Delek Logistics' operations are structured around the midstream value chain, emphasizing the efficient and safe handling of crude oil and natural gas. Key aspects of their operational framework include:

• Asset Network: Maintaining and optimizing a network of pipelines, storage tanks, and processing facilities.
• Contractual Agreements: Establishing long-term contracts with producers and refiners to ensure stable volumes and revenues.
• Operational Efficiency: Focusing on cost-effective operations through technology and process improvements.
• Safety and Compliance: Adhering to strict safety and environmental regulations to minimize risks.

Delek Logistics Partners, LP's Strategic Advantages

Delek Logistics possesses several strategic advantages that contribute to its market position and financial performance:

• Strategic Asset Locations: Assets are located in key production areas, providing access to significant volumes of crude oil and natural gas.
• Integrated Operations: Integration with Delek US Holdings enhances operational efficiencies and provides a stable customer base.
• Fee-Based Revenue: A significant portion of revenue is generated from fee-based services, reducing exposure to commodity price volatility.
• Financial Discipline: Commitment to maintaining a strong balance sheet and returning value to unitholders through distributions.

To gain more insights into the investors profile, check this out: Exploring Delek Logistics Partners, LP (DKL) Investor Profile: Who’s Buying and Why?

Delek Logistics Partners, LP (DKL) How It Makes Money

Delek Logistics Partners, LP generates revenue primarily through gathering, processing, transporting, and storing crude oil and refined products. These operations occur in various regions, including the Permian Basin and the Gulf Coast.

Delek Logistics Partners, LP Revenue Breakdown

Here's a look at the revenue streams that drive Delek Logistics Partners, LP:

Delek Logistics Partners, LP Business Economics

Delek Logistics Partners, LP's business economics are influenced by several key factors:

• Fee-Based Agreements: A significant portion of the company’s revenue comes from long-term, fee-based agreements. These agreements provide stable and predictable cash flows, insulating the company from the full impact of commodity price volatility.
• Strategic Asset Locations: The strategic positioning of assets in key areas like the Permian Basin and the Gulf Coast allows Delek Logistics to capitalize on regional production and demand dynamics.
• Operational Efficiency: Efficient operations and cost management are critical to maintaining profitability. The company focuses on optimizing throughput and minimizing operational expenses to enhance margins.
• Capital Investments: Ongoing investments in infrastructure and expansion projects support long-term growth. These investments enable the company to increase its capacity and service offerings.

These elements collectively shape the economic foundation of Delek Logistics Partners, LP, ensuring resilience and supporting sustained financial performance.

Delek Logistics Partners, LP Financial Performance

Key aspects of Delek Logistics Partners, LP's financial performance include:

• Consistent Revenue Generation: The company has demonstrated a solid track record of revenue generation, supported by its diverse service offerings and strategic asset base.
• Stable Cash Flows: Fee-based agreements contribute to stable and predictable cash flows, which are essential for funding operations, investments, and distributions to unitholders.
• Strategic Investments: Investments in organic growth projects and strategic acquisitions enhance the company’s long-term earnings potential.
• Distribution Coverage Ratio: A key metric for evaluating the sustainability of distributions to unitholders. A ratio above 1.0x indicates that the company is generating sufficient cash flow to cover its distributions.

For more insights into the ownership and investment profile of Delek Logistics Partners, LP, check out: Exploring Delek Logistics Partners, LP (DKL) Investor Profile: Who’s Buying and Why?

Delek Logistics Partners, LP (DKL) Market Position & Future Outlook

Delek Logistics Partners, LP (DKL) is strategically positioned in the midstream energy sector, focusing on transportation, storage, and wholesale distribution of crude oil and refined products. The company's future outlook is shaped by its ability to capitalize on infrastructure development and operational efficiencies, while navigating the complexities of market volatility and regulatory changes. For more information, consider reading Exploring Delek Logistics Partners, LP (DKL) Investor Profile: Who’s Buying and Why?.

Competitive Landscape

Opportunities & Challenges

Industry Position

Delek Logistics operates as a key player in the midstream sector, particularly noted for its strategic assets supporting the Permian Basin. Its standing is further reinforced through:

• Integrated operations with Delek US Holdings, providing a stable base of business.
• Focus on operational efficiency and cost management.
• Expansion projects aimed at increasing capacity and service offerings.