Mission Statement, Vision, & Core Values of Delek Logistics Partners, LP (DKL)

When you look at a Master Limited Partnership (MLP) like Delek Logistics Partners, LP (DKL), you're not just buying into pipelines and storage tanks; you're investing in the operating philosophy that drives cash flow-so understanding their Mission and Core Values is defintely a critical piece of your due diligence.

The numbers show this philosophy is working: the company is currently guiding for full-year 2025 Adjusted EBITDA between $500 million and $520 million, a significant jump that maps directly to their strategic focus on Permian Basin expansion and third-party services, plus they just announced their 51st consecutive quarterly distribution increase to $1.120 per unit for Q3 2025. But how does a midstream company with nearly $2.3 billion in total debt (as of September 30, 2025) maintain that kind of consistent growth and distribution record? What does their commitment to 'Growth Mindset' or 'Accountability' actually mean for your investment thesis?

We need to map the operational reality-like the fact that roughly 80% of their cash flow now comes from third-party sources, increasing their economic separation from their sponsor, Delek US Holdings, Inc.-to the bedrock values they claim guide every decision. Is their stated emphasis on Safety & Discipline and Respect & Integrity just corporate boilerplate, or is it the real engine behind that $74.1 million in adjusted Distributable Cash Flow (DCF) they generated in the third quarter of 2025?

Delek Logistics Partners, LP (DKL) Overview

You're looking for a clear picture of Delek Logistics Partners, LP, and the takeaway is simple: this is a growth-focused Master Limited Partnership (MLP) that continues to deliver strong financial results in the midstream energy sector, largely due to its strategic position in the Permian Basin. Established in 2012 by Delek US Holdings, Inc., the company's core mission is to manage the essential infrastructure-the logistics and marketing assets-for crude oil and refined products.

Delek Logistics Partners, LP operates as the backbone for moving energy across the US, initially supporting its parent company's refineries in Texas and Arkansas, but now serving a growing base of third-party customers. They've evolved beyond just crude and refined fuels to a full-suite midstream provider.

• Gathering and processing crude oil and natural gas.
• Pipeline and storage for crude oil and refined products.
• Wholesale marketing and terminalling of finished petroleum products.
• Water gathering, disposal, and recycling services.

For the first nine months of the 2025 fiscal year, the company's total revenue was already substantial, reaching $757.56 million. That's defintely a solid foundation heading into the final quarter. If you want to dive deeper into the company's structure and how it generates revenue, you can check out Delek Logistics Partners, LP (DKL): History, Ownership, Mission, How It Works & Makes Money.

Q3 2025 Financial Performance: Record Volumes Drive Revenue

The latest financial report, covering the third quarter of 2025, shows Delek Logistics Partners, LP is executing well on its strategy, particularly in the Permian Basin. The company reported a Q3 2025 revenue of $261.28 million, which actually surpassed analyst expectations. This is a clear sign that demand for their core services is strong.

Here's the quick math on profitability: Net income for the quarter was $45.56 million, a significant improvement year-over-year. More telling for the midstream space is the Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which came in at $136.0 million, representing a 27% increase from the third quarter of 2024. That kind of growth is what you look for in a midstream player.

The biggest operational highlight, and the main driver of this performance, was the reported record crude gathering volumes in the Delaware crude gathering system. This is the company's main product sales growth engine right now. Management is confident, too, raising the full-year 2025 Adjusted EBITDA guidance to a range of $500 million to $520 million. They also announced their 51st consecutive quarterly distribution increase to $1.120 per unit, showing a commitment to unitholder returns.

A Premier Midstream Provider in the Permian Basin

Delek Logistics Partners, LP is not just another midstream company; they are strategically positioning themselves as a premier provider in the Permian Basin, which remains the most active and vital oil and gas region in the US. Their focus on the Midland and Delaware Basins gives them a long runway for growth.

The company's success is a direct result of strategic acquisitions like Gravity and H2O Midstream, plus organic expansion projects. They are actively building out comprehensive sour gas treating and acid gas injection (AGI) capabilities at their Libby Gas Complex. This expansion positions them to capture more high-margin business by offering a full-suite solution for producers, which is a major competitive advantage.

Their integrated approach-combining crude, natural gas, and water services-makes them a vital partner for producers, and honestly, that's why they keep growing. They are making the deliberate moves needed to increase third-party revenue and further separate their economic performance from their sponsor, Delek US Holdings, Inc.

Delek Logistics Partners, LP (DKL) Mission Statement

Delek Logistics Partners, LP's mission is to be the preferred crude, gas, and water midstream services provider in the Permian Basin by operating safely and responsibly, maintaining operational excellence, and delivering sustainable value to unitholders. This mission is the bedrock of their strategy, guiding the $500 million to $520 million Adjusted EBITDA guidance for the 2025 fiscal year, and it clearly maps their focus on operational execution to financial performance.

For a Master Limited Partnership (MLP), a clear mission is defintely critical; it aligns capital allocation (like the projected $220 million to $250 million in 2025 capital expenditures) with the long-term commitment to growing distributions. The goal isn't just growth, but responsible growth, which is a key distinction in the energy logistics sector.

Component 1: Operational Excellence and Safety

The first core component of the mission is a commitment to operational excellence, which translates directly to providing high-quality, reliable midstream services while upholding their foundational core value of Safety & Discipline. You can't be the preferred provider in the Permian Basin-a highly competitive, high-volume region-without near-perfect uptime and a relentless focus on safety. One clean one-liner: Safety is the ultimate precursor to reliability.

This commitment is backed by tangible, near-term investments. For instance, in 2025, Delek Logistics Partners started commissioning the new Libby 2 plant, a project designed to provide much-needed processing capacity expansion in Lea County, New Mexico. Also, they continue to progress a comprehensive acid gas injection (AGI) and sour gas treating solution at the Libby Gas Complex, which shows a dedication to handling complex, high-quality processing needs while managing environmental impact. This is how they translate the value of 'Accountability' into operational reality.

• Started commissioning Libby 2 plant for capacity expansion.
• Progressing AGI and sour gas treating at Libby Complex.
• Reported record crude gathering volumes in the Delaware crude gathering system.

Component 2: Strategic Growth and Market Position

The second component is the strategic ambition: to be the preferred crude, gas, and water midstream services provider in the Permian Basin. This isn't a vague aspiration; it's a geographic and service-specific mandate driven by their 'Growth Mindset' core value. It means actively expanding their asset base and diversifying their offerings to capture more of the energy value chain, moving beyond just crude oil.

Here's the quick math on their strategy: The company closed the acquisition of Gravity Water Midstream in January 2025, which immediately performed above expectations and helped boost the Gathering and Processing segment's Adjusted EBITDA to $81.1 million in Q1 2025, up from $57.8 million in Q1 2024. This strategic move enhances their 'full suite' strategy, making their combined crude and water offering more attractive to third-party customers. The goal is to push third-party cash flow contribution toward 80%, further separating the company's economics from its sponsor, Delek US Holdings, Inc. You can explore more about this strategic positioning by Exploring Delek Logistics Partners, LP (DKL) Investor Profile: Who's Buying and Why?

Component 3: Delivering Sustainable Value to Unitholders

The final, and arguably most important, component for an MLP is the commitment to delivering sustainable value to unitholders, which is directly tied to the core value of 'Respect & Integrity.' For investors, this means consistent, reliable, and growing cash distributions. Delek Logistics Partners has a strong track record here, demonstrating a commitment to their distribution growth policy even while funding substantial growth projects.

The company announced its 51st consecutive quarterly increase in the distribution, raising it to $1.120 per unit for the third quarter of 2025. This consistent growth, plus an anticipated coverage ratio of approximately 1.3x by year-end, shows a disciplined financial management approach that prioritizes long-term unitholder returns over short-term spikes. What this estimate hides, however, is the constant need for new capital projects to sustain that growth, but the $500 million to $520 million Adjusted EBITDA guidance for 2025 gives them the financial firepower to manage both.

Delek Logistics Partners, LP (DKL) Vision Statement

You're looking for a clear map of where Delek Logistics Partners, LP is headed, and the vision is surprisingly direct for a Master Limited Partnership (MLP): become the preferred, full-suite midstream services provider in the Permian Basin and consistently deliver value to unitholders. This isn't just corporate language; it's a strategy tied directly to their 2025 capital plan and operational focus. The goal is simple: own the logistics chain for crude, gas, and water in the most critical US energy play.

DKL's vision is supported by a core purpose of ensuring safe and reliable transportation, storage, and processing, all while maintaining the financial discipline that creates long-term value for stakeholders. For a deeper dive into how this structure works, you can check out: Delek Logistics Partners, LP (DKL): History, Ownership, Mission, How It Works & Makes Money. What this means for you as an investor or analyst is a clear line of sight between their strategic moves and their expected financial returns.

Becoming the Preferred Full-Suite Midstream Provider

The first strategic pillar is all about operational dominance in the Permian Basin-specifically, the Midland and Delaware Basins. DKL is moving past being just a pipeline operator to a 'full suite' provider, meaning they handle crude, natural gas, and water logistics. This is a smart move because it locks in producers with a single, comprehensive service contract, which is a huge competitive advantage in a fragmented market.

This strategy is defintely backed by capital. For the 2025 fiscal year, the company plans to invest between $220 million and $250 million in capital expenditures (CapEx), with a significant portion dedicated to expansion projects. A prime example is the completion and optimization of the Libby 2 gas plant and the associated sour gas and acid gas injection (AGI) infrastructure. This capability provides a unique solution for producers needing to handle associated natural gas, giving DKL a long runway for growth in the Delaware Basin. It's all about solving complex producer problems to secure long-term, fee-based revenue.

• Solve complex producer problems.
• Secure long-term, fee-based revenue.
• Expand crude, gas, and water services.

Delivering Value and Distribution Growth to Unitholders

The second, and arguably most important, part of the vision for unitholders is the explicit commitment to 'returning additional value' and 'growing our distributions.' This is the financial translation of their operational success. The company's financial guidance for 2025 reflects this ambition, projecting an Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in the range of $500 million to $520 million. Here's the quick math: that range represents a projected growth of approximately 20% year-over-year, which is a strong signal of business momentum.

Crucially, they are focused on maintaining a strong distribution coverage ratio, which is the distributable cash flow divided by the cash distributions. They expect this ratio to be approximately 1.3x by the end of 2025. This is a healthy cushion; a coverage ratio above 1.0x means the company is generating more cash than it pays out, which is essential for sustainability and growth. The company has already demonstrated this commitment by increasing its quarterly cash distribution to $1.120 per unit in Q3 2025, marking its 51st consecutive quarterly increase. You want to see that coverage ratio stay solid.

Operational Foundation: Core Values and Execution

The foundation supporting this ambitious vision is a set of five core values that dictate day-to-day execution, acting as the company's Mission Statement in practice. These values ensure that the growth strategy doesn't outrun its operational controls or ethical responsibilities. They are: Safety & Discipline, Accountability, Respect & Integrity, Growth Mindset, and Hyper-curiosity.

The focus on Safety & Discipline is non-negotiable in midstream, protecting employees, communities, and the environment. This is where the rubber meets the road on environmental, social, and governance (ESG) performance. Accountability ensures that when Q3 2025 Adjusted EBITDA hits $136.0 million, the teams responsible are recognized, and when things go wrong, they are corrected. The Growth Mindset and Hyper-curiosity values are the engine for the 'full-suite' strategy, driving the company to invest in new capabilities like sour gas treating instead of settling for the status quo. What this estimate hides, however, is the constant regulatory and commodity price risk inherent in the energy sector, which demands this kind of rigorous internal discipline.

Delek Logistics Partners, LP (DKL) Core Values

You're looking for the real drivers behind a midstream energy Master Limited Partnership (MLP) like Delek Logistics Partners, LP (DKL), not just the quarterly numbers. I get it. As a seasoned analyst, I can tell you that DKL's success-evidenced by the updated 2025 Adjusted EBITDA guidance of $500 million to $520 million-is fundamentally tied to its core values. These aren't just posters on a wall; they are the operating principles that map directly to their strategic moves in the Permian Basin.

The company's commitment to being the preferred crude, gas, and water midstream services provider is grounded in three core values: Safety & Discipline, Respect & Integrity, and Curiosity. They are the lens through which we should view their recent capital investments and their consistent distribution growth.

If you want a deeper dive into the numbers that back this up, you should check out Breaking Down Delek Logistics Partners, LP (DKL) Financial Health: Key Insights for Investors.

Safety & Discipline

This value is about more than just avoiding accidents; it's about a rigorous, systematic approach to operations and capital allocation. Without operational safety, you have no business, and without financial discipline, you have no long-term value for unitholders. It's that simple.

DKL demonstrates this value through its unwavering focus on protecting its employees, communities, and the environment. They have a comprehensive set of Life Saving Rules that define safety expectations for high-risk activities, which is a foundational part of their safety culture. On the financial side, this discipline translates into their commitment to a coverage ratio of approximately 1.3x by the end of 2025, ensuring distributable cash flow comfortably exceeds their growing distributions. They are also planning to complete all safety audits by the end of 2025, which shows a clear, time-bound commitment to a robust emergency preparedness program. That's a clear action item.

• Maintain a healthy, safe, and productive work environment.
• Ensure prudent management of liquidity and leverage.
• Invest in safety training and hazard assessment programs.

Respect & Integrity

In the midstream sector, your reputation is everything, and that's where Respect & Integrity comes in. It's how DKL builds trust with its customers, regulators, and the communities where it operates. This value mandates transparency and ethical conduct, both internally and externally.

For DKL, this means dealing fairly with all stakeholders and acting with honesty, as outlined in their Code of Business Conduct and Ethics. On the environmental front, their integrity is being measured by their commitment to operate in an environmentally responsible manner. A concrete target here is their goal to reduce Scope 1 and Scope 2 greenhouse gas emissions by 34% by 2030. That's a significant, measurable commitment that requires substantial capital and operational changes, not just talk. It also underpins the move to increase third-party cash flow contribution to approximately 80% in 2025, which helps diversify their revenue stream and reduce dependency on their sponsor, Delek US Holdings, Inc.

Curiosity

Hyper-curiosity, as DKL puts it, is the engine for innovation and growth, especially in a dynamic area like the Permian Basin. This is about questioning the status quo, embracing change, and seeking out inquisitive thinking to improve the broader company. You can't grow if you're not asking what's next.

We see this value in their strategic capital investments for 2025, which are projected to be between $220 million and $250 million. A major chunk of this is going toward complex, innovative projects like the new Libby 2 gas plant and the associated Acid Gas Injection (AGI) and sour gas treating solution in the Delaware Basin. This capability provides a unique, full-suite offering to producers, helping them drill their most productive locations. Plus, the record crude gathering volumes in the Delaware system in the third quarter of 2025 show that this curiosity-driven investment in new capabilities is defintely paying off in operational results.