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, up slightly from $142.5 million in Q3 2025.
• EBITDA was $118.5 million for Q3 2026, compared to $108.5 million in Q3 2025, driven by increased margins in the gathering and processing business.
• Net cash provided by operating activities was $187.9 million for Q3 2026, a significant increase from $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, down from the prior year leverage ratio of 4.44x to a current leverage ratio of 3.85x.
• Cash and cash equivalents were $49.0 million as of September 30, 2026.
• 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

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

Market and Competitive Landscape

• Positioned as a differentiated Delaware Basin midstream platform with growing demand for sour gas treating and acid gas injection capabilities.
• Significant portion of revenue is derived from Delek US Holdings, subjecting the company to the sponsor's business risks.
• Wholesale marketing agreement with sponsor Delek US Holdings was terminated on January 1, 2026.

Risks and Challenges

• Forward-looking statements involve risks including political or regulatory developments, tariffs, taxes, and changes in governmental policies.
• Operational hazards related to the age of assets, including costs, penalties, and legal actions related to spills or releases.
• Risks related to exposure to Permian Basin crude oil supply, pricing, and transportation capacity.
• Uncertainties regarding actions by OPEC and non-OPEC oil-producing countries impacting crude oil production and pricing.
• Potential inability of Delek US Holdings to grow as expected, affecting future growth opportunities like dropdowns.

Management Commentary and Tone

• Avigal Soreq, President of Delek Logistics' general partner, stated the company delivered another strong quarter, underscoring the durability of the integrated crude, gas, and water platform.
• Management expressed confidence in the business, citing the successful completion of the Libby Complex sour gas system and a clear path to long-term value creation.
• Management highlighted the strengthened balance sheet and 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 equity offering on August 14, 2026, selling 4,600,000 common units at $50 per unit, with net proceeds used to repay outstanding borrowings under the revolving credit facility.
• The company has full access to a $1.3 billion third-party revolving credit facility with no borrowings as of the reporting date.
• Sales-type lease accounting impacts of $24.6 million were included in Q3 2026 EBITDA due to amendments to intercompany lease agreements.
• Conference call scheduled for November 6, 2026, at 11:30 a.m. Central Time.