Delek Logistics — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $47.4 million ($0.85 per diluted unit) for Q3 2026, compared to $45.6 million ($0.85 per diluted unit) in Q3 2025.
• Adjusted EBITDA was $142.9 million for Q3 2026, compared to $142.5 million in Q3 2025.
• EBITDA was $118.5 million for Q3 2026, compared to $108.5 million in Q3 2025.
• Net cash provided by operating activities was $187.9 million for Q3 2026, compared to $54.9 million in Q3 2025.
• Distributable cash flow, as adjusted, was $73.1 million for Q3 2026, compared to $74.1 million in Q3 2025.
• Total debt was approximately $2.1 billion as of September 30, 2026, with cash of $49.0 million.
• Leverage ratio decreased to 3.85x as of September 30, 2026, from 4.44x in the prior year period.
• Consolidated net revenues were $372.4 million for Q3 2026, compared to $261.3 million in Q3 2025.

Guidance and Future Outlook:

• Raised full-year 2026 adjusted EBITDA guidance to $530 million – $560 million, up from the previous range of $520 million – $560 million.
• The updated guidance includes approximately $15 million of contribution from 2026 organic growth projects.
• On track to deliver an incremental $60 million of adjusted EBITDA in 2027 from the 2026 growth capital program.
• Management remains focused on executing growth opportunities and continuing the economic separation and deconsolidation path from sponsor Delek US Holdings.

Business Segments and Product Lines:

• Completed construction of the integrated sour gas processing, treating, and handling solution at the Libby complex, achieving first acid gas injection during the quarter.
• Gathering and Processing Segment: Adjusted EBITDA was $88.4 million for Q3 2026, up from $82.8 million in Q3 2025, driven by increased margins.
• Wholesale Marketing and Terminalling Segment: Adjusted EBITDA was $20.9 million for Q3 2026, down from $21.4 million in Q3 2025, due to the termination of the East Texas marketing agreement with Delek US Holdings and decreased wholesale margins.
• Storage and Transportation Segment: Adjusted EBITDA was $19.8 million for Q3 2026, up from $19.3 million in Q3 2025, driven by increased volume and margins in trucking operations.
• Investments in Pipeline Joint Ventures Segment: Adjusted EBITDA from equity method investments was $26.5 million for Q3 2026, down from $28.4 million in Q3 2025, primarily due to decreased income from Red River and other joint ventures, partially offset by increased income from W2W.
• Corporate: Adjusted EBITDA was a loss of $12.7 million for Q3 2026, compared to a loss of $9.3 million in Q3 2025.

Market and Competitive Landscape:

• Positioned as a differentiated Delaware Basin midstream platform with growing demand for sour gas treating and acid gas injection capabilities.
• Net revenues from third-party customers were $188.2 million in Q3 2026, compared to $130.3 million in Q3 2025.
• Net revenues from affiliate (Delek US) customers were $184.2 million in Q3 2026, compared to $131.0 million in Q3 2025.

Risks and Challenges:

• Significant portion of revenue is derived from Delek US Holdings, subjecting the company to its business risks.
• Risks include political or regulatory developments, tariffs, taxes, and changes in governmental policies relating to crude oil, natural gas, refined products, or renewables.
• Operational hazards associated with the age of assets, including costs, penalties, and legal actions related to spills or releases.
• Exposure to Permian Basin crude oil supply, pricing, gathering, production, and transportation capacity.
• Uncertainties regarding actions by OPEC and non-OPEC oil-producing countries impacting crude oil production and pricing.
• Risks related to the integration of acquisitions and the ability to realize cost reductions.

Management Commentary and Tone:

• Avigal Soreq, President of Delek Logistics' general partner, stated the quarter underscored the durability of the integrated crude, gas, and water platform and the growing contribution from third-party cash flows.
• Management expressed confidence in the business, citing strong year-to-date operational performance as the driver for the guidance increase.
• The tone highlighted a clear path to long-term value creation and a diversified cash flow profile enabled by disciplined management of liquidity and leverage.

Other Key Points:

• Declared a quarterly cash distribution of $1.140 per common limited partner unit for Q3 2026, representing a 1.8% increase over the Q3 2025 distribution of $1.120.
• This marks the 55th consecutive quarterly distribution increase.
• Completed an underwritten equity offering on August 14, 2026, of 4,600,000 common units at $50 per unit.
• Net proceeds from the equity offering were used to repay outstanding borrowings under the Delek Logistics Revolving Facility.
• The company has full access to a $1.3 billion third-party revolving credit facility with no borrowings as of September 30, 2026.
• Intercompany lease agreements were amended in August 2024, resulting in certain agreements being accounted for as sales-type leases, impacting Q3 2026 financial results with $24.6 million in sales-type lease accounting impacts included in EBITDA.
• The East Texas marketing agreement with Delek US Holdings was terminated on January 1, 2026.