Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☑

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended

March 31, 2024


☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

						For the transition period from to

Commission file number 001-35721

DELEK LOGISTICS PARTNERS, LP

(Exact name of registrant as specified in its charter)


Delaware			45-5379027
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

310 Seven Springs Way, Suite 500	Brentwood	Tennessee	37027
(Address of principal executive offices)			(Zip Code)

(615) 771-6701

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange on Which Registered

Common Units Representing Limited Partnership Interests

DKL

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☑

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

At May 1, 2024, there were 47,216,050 common limited partner units outstanding.

Table of Contents

Delek Logistics Partners, LP

Quarterly Report on Form 10-Q

For the Quarterly Period Ended March 31, 2024


PART I. FINANCIAL INFORMATION				PART II. OTHER INFORMATION

3	Item 1. Financial Statements (unaudited)			38	Item 1. Legal Proceedings
	3	Condensed Consolidated Balance Sheets
	4	Condensed Consolidated Statements of Comprehensive Income		38	Item 1A. Risk Factors
	5	Condensed Consolidated Statements of Partner's Equity (Deficit)
	6	Condensed Consolidated Statements of Cash Flows		38	Item 5. Other Information
	7	Notes to Condensed Consolidated Financial Statements
		7	Note 1 - Organization and Basis of Presentation	39	Item 6. Exhibits
		7	Note 2 - Related Party Transactions
		9	Note 3 - Revenues	40	Signatures
		10	Note 4 - Net Income Per Unit
		10	Note 5 - Long-Term Obligations
		12	Note 6 - Equity
		13	Note 7 - Equity Method Investments
		13	Note 8 - Segments
		14	Note 9 - Commitments and Contingencies
		15	Note 10 - Subsequent Events

16	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
	25	Summary of Financial and Other Information
	26	Results of Operations
		26	Consolidated
		28	Gathering and Processing
		30	Wholesale Marketing and Terminalling
		32	Storage and Transportation
		33	Investments in Pipeline Joint Ventures
	33	Liquidity and Capital Resources

36	Item 3. Quantitative and Qualitative Disclosures about Market Risk

37	Item 4. Controls and Procedures


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Financial Statements

Part I - FINANCIAL INFORMATION

Item 1. Financial Statements

Delek Logistics Partners, LP

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except unit and per unit data)


	March 31, 2024		December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents	$	9,672	$	3,755
Accounts receivable	56,993		41,131
Accounts receivable from related parties	36,588		28,443
Inventory	1,655		2,264
Other current assets	615		676
Total current assets	105,523		76,269
Property, plant and equipment:
Property, plant and equipment	1,336,053		1,320,510
Less: accumulated depreciation	(406,009)		(384,359)
Property, plant and equipment, net	930,044		936,151
Equity method investments	238,185		241,337
Customer relationship intangible, net	176,811		181,336
Marketing contract intangible, net	100,352		102,155
Rights-of-way, net	60,141		59,536
Goodwill	12,203		12,203
Operating lease right-of-use assets	17,641		19,043
Other non-current assets	13,471		14,216
Total assets	$	1,654,371	$	1,642,246
LIABILITIES AND DEFICIT
Current liabilities:
Accounts payable	$	26,313	$	26,290

Current portion of long-term debt	—		30,000
Interest payable	12,710		5,805
Excise and other taxes payable	7,638		10,321
Current portion of operating lease liabilities	6,442		6,697
Accrued expenses and other current liabilities	4,098		11,477
Total current liabilities	57,201		90,590
Non-current liabilities:
Long-term debt, net of current portion	1,601,226		1,673,789
Operating lease liabilities, net of current portion	7,367		8,335
Asset retirement obligations	10,225		10,038
Other non-current liabilities	20,819		21,363
Total non-current liabilities	1,639,637		1,713,525
Equity (Deficit):
Common unitholders - public; 12,898,253 units issued and outstanding at March 31, 2024 (9,299,763 at December 31, 2023)	290,051		160,402
Common unitholders - Delek Holdings; 34,311,278 units issued and outstanding at March 31, 2024 (34,311,278 at December 31, 2023)	(332,518)		(322,271)
Total deficit	(42,467)		(161,869)
Total liabilities and deficit	$	1,654,371	$	1,642,246

See accompanying notes to the condensed consolidated financial statements


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Financial Statements

Delek Logistics Partners, LP

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(In thousands, except unit and per unit data)


	Three Months Ended March 31,
	2024		2023
Net revenues
Affiliate (1)	$	139,625	$	124,999
Third Party	112,450		118,526
Net revenues	252,075		243,525
Cost of sales:
Cost of materials and other - affiliate (1)	92,882		91,071
Cost of materials and other - third party	30,810		35,025
Operating expenses (excluding depreciation and amortization presented below)	31,695		24,215
Depreciation and amortization	25,167		19,764
Total cost of sales	180,554		170,075
Operating expenses related to wholesale business (excluding depreciation and amortization presented below)	221		525
General and administrative expenses	4,863		7,510
Depreciation and amortization	1,328		1,341
Loss on disposal of assets	567		142
Total operating costs and expenses	187,533		179,593
Operating income	64,542		63,932
Interest expense, net	40,229		32,581
Income from equity method investments	(8,490)		(6,316)
Other income, net	(171)		(2)
Total non-operating expenses, net	31,568		26,263
Income before income tax expense	32,974		37,669
Income tax expense	326		302
Net income attributable to partners	$	32,648	$	37,367
Comprehensive income attributable to partners	$	32,648	$	37,367

Net income per limited partner unit:
Basic	$	0.74	$	0.86
Diluted	$	0.73	$	0.86

Weighted average limited partner units outstanding:
Basic	44,406,356		43,569,963
Diluted	44,422,817		43,585,297

Cash distributions per common limited partner unit	$	1.070	$	1.025

(1) See Note 2 for a description of our material affiliate revenue and purchases transactions.

See accompanying notes to the condensed consolidated financial statements


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Financial Statements

Delek Logistics Partners, LP

Condensed Consolidated Statements of Partners' Equity (Deficit) (Unaudited)

(in thousands)


	Common - Public		Common - Delek Holdings		Total
Balance as of December 31, 2023	$	160,402	$	(322,271)	$	(161,869)
Cash distributions	(10,012)		(36,198)		(46,210)
Net income attributable to partners	7,404		25,244		32,648
Issuance of units	132,327		—		132,327
Other	(70)		707		637
Balance as of March 31, 2024	$	290,051	$	(332,518)	$	(42,467)


	Common - Public		Common - Delek Holdings		Total
Balance as of December 31, 2022	$	172,119	$	(282,819)	$	(110,700)
Cash distributions	(9,442)		(34,998)		(44,440)
Net income attributable to partners	7,940		29,427		37,367
Other	(95)		446		351
Balance as of March 31, 2023	$	170,522	$	(287,944)	$	(117,422)

See accompanying notes to the condensed consolidated financial statements


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Financial Statements

Delek Logistics Partners, LP

Condensed Consolidated Statements of Cash Flows (Unaudited)

(in thousands)


	Three Months Ended March 31,
	2024		2023
Cash flows from operating activities:
Net income	$	32,648	$	37,367
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	26,495		21,105
Non-cash lease expense	1,939		2,200
Amortization of marketing contract intangible	1,803		1,803
Amortization of deferred revenue	(572)		(444)
Amortization of deferred financing costs and debt discount	1,250		1,127

Income from equity method investments	(8,490)		(6,316)
Dividends from equity method investments	9,509		9,238
Loss on extinguishment of debt	3,571		—
Other non-cash adjustments	1,492		780
Changes in assets and liabilities:
Accounts receivable	(15,862)		2,165
Inventories and other current assets	670		(1,482)
Accounts payable and other current liabilities	(2,359)		(36,430)
Accounts receivable/payable to related parties	(8,145)		(1,578)
Non-current assets and liabilities, net	(91)		(345)
Net cash provided by operating activities	43,858		29,190
Cash flows from investing activities:

Purchases of property, plant and equipment	(11,255)		(27,837)
Proceeds from sales of property, plant and equipment	42		—
Purchases of intangible assets	(781)		(582)

Distributions from equity method investments	2,133		1,440

Net cash used in investing activities	(9,861)		(26,979)
Cash flows from financing activities:

Distributions to common unitholders - public	(10,012)		(9,442)
Distributions to common unitholders - Delek Holdings	(36,198)		(34,998)
Proceeds from term debt	650,000		—
Payments on term debt	(531,250)		(3,750)
Proceeds from revolving facility	184,900		143,500
Payments on revolving facility	(400,200)		(93,400)
Proceeds from issuance of units	132,327		—


Payments on other financing agreements	(6,214)		—

Deferred financing costs paid	(10,946)		(400)
Other financing activities	(487)		(727)
Net cash (used in) provided by financing activities	(28,080)		783
Net increase in cash and cash equivalents	5,917		2,994
Cash and cash equivalents at the beginning of the period	3,755		7,970
Cash and cash equivalents at the end of the period	$	9,672	$	10,964




Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	28,503	$	20,210

Non-cash investing activities:
Increase in accrued capital expenditures	$	3,910	$	8,258

Non-cash financing activities:

Non-cash lease liability arising from obtaining right of use assets during the period	$	537	$	3,456

See accompanying notes to the condensed consolidated financial statements


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Notes to the Condensed Consolidated Financial Statements (Unaudited)

Delek Logistics Partners, LP

Notes to the Condensed Consolidated Financial Statements (Unaudited)

1. Organization and Basis of Presentation

As used in this report, the terms "Delek Logistics Partners, LP," the "Partnership," "we," "us," or "our" may refer to Delek Logistics Partners, LP, one or more of its consolidated subsidiaries or all of them taken as a whole. The Partnership is a Delaware limited partnership formed in April 2012 by Delek US Holdings, Inc. ("Delek Holdings") and its subsidiary Delek Logistics GP, LLC, our general partner (our "general partner").

The Partnership provides gathering, pipeline and other transportation services primarily for crude oil and natural gas customers, storage, wholesale marketing and terminalling services primarily for intermediate and refined product customers, and water disposal and recycling services through its owned assets and joint ventures located primarily in the Permian Basin (including the Delaware sub-basin) and other select areas in the Gulf Coast region. A majority of our existing assets are both integral to and dependent upon the success of Delek Holdings' refining operations, as many of our assets are contracted exclusively to Delek Holdings in support of its Tyler, Texas (the "Tyler Refinery"), El Dorado, Arkansas (the "El Dorado Refinery") and Big Spring, Texas (the "Big Spring Refinery").

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP") have been condensed or omitted, although management believes that the disclosures herein are adequate to make the financial information presented not misleading. Our unaudited condensed consolidated financial statements have been prepared in conformity with GAAP applied on a consistent basis with those of the annual audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 (our "Annual Report on Form 10-K"), filed with the U.S. Securities and Exchange Commission (the "SEC") on February 28, 2024 and in accordance with the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2023 included in our Annual Report on Form 10-K.

All adjustments necessary for a fair presentation of the financial position and the results of operations for the interim periods presented have been included. All intercompany accounts and transactions have been eliminated. Such intercompany transactions do not include those with Delek Holdings or our general partner, which are presented as related parties in these accompanying condensed consolidated financial statements. All adjustments are of a normal, recurring nature. Operating results for the interim period should not be viewed as representative of results that may be expected for any future interim period or for the full year.

Accounting Pronouncements Not Yet Adopted

ASU 2023-06, Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative

In October 2023, the FASB issued ASU 2023-06 Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative ("ASU 2023-06"). The main provision of ASU 2023-06 is to clarify or improve disclosure and presentation requirements of a variety of topics, which will allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the FASB accounting standard codification with the SEC's regulations. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Partnership is currently evaluating the provisions of the amendments and the impact on its future condensed consolidated statements, but does not currently expect adopting this new guidance will have a material impact on its condensed consolidated financial statements and related disclosures.

2. Related Party Transactions

Commercial Agreements

The Partnership has a number of long-term, fee-based commercial agreements with Delek Holdings under which we provide various services, including crude oil gathering and crude oil, intermediate and refined products transportation and storage services, and marketing, terminalling and offloading services to Delek Holdings. Most of these agreements have an initial term ranging from five to ten years, which may be extended for various renewal terms at the option of Delek Holdings. The fees under each agreement are payable to us monthly by Delek Holdings or certain third parties to whom Delek Holdings has assigned certain of its rights and are generally subject to increase or decrease on July 1 of each year, by the amount of any change in various inflation-based indices, however, in no event will the fees be adjusted below the amount initially set forth in the applicable agreement. Under each of these agreements, we are required to maintain the capabilities of our pipelines and terminals, such that Delek Holdings may throughput and/or store, as the case may be, specified volumes of crude oil, intermediate and refined products.

See our Annual Report on Form 10-K for a more complete description of our material commercial agreements and other agreements with Delek Holdings.


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Notes to the Condensed Consolidated Financial Statements (Unaudited)

Other Agreements with Delek Holdings

In addition to the commercial agreements described above, the Partnership has entered into the following agreements with Delek Holdings:

Omnibus Agreement

The Partnership entered into an omnibus agreement with Delek Holdings, our general partner, Delek Logistics Operating, LLC, Lion Oil Company, LLC and certain of the Partnership’s and Delek Holdings' other subsidiaries on November 7, 2012, which has been amended and restated from time to time in connection with acquisitions from Delek Holdings (collectively, as amended and restated, the "Omnibus Agreement"). The Omnibus Agreement governs the provision of certain operational services and reimbursement obligations, among other matters, between the Partnership and Delek Holdings, and obligates us to pay an annual fee of $4.4 million to Delek Holdings for its provision of centralized corporate services to the Partnership.

Pursuant to the terms of the Omnibus Agreement, we are reimbursed by Delek Holdings for certain capital expenditures. These amounts are recorded in other long-term liabilities and are amortized to revenue over the life of the underlying revenue agreement corresponding to the asset. There was no reimbursement by Delek Holdings during the three months ended March 31, 2024 and 2023. Additionally, we are reimbursed or indemnified, as the case may be, for costs incurred in excess of certain amounts related to certain asset failures, pursuant to the terms of the Omnibus Agreement. As of March 31, 2024 and December 31, 2023, there was no receivable from related parties for these matters. These reimbursements are recorded as reductions to operating expenses. There were no reimbursements for these matters in each of the three month periods ended March 31, 2024 and 2023.

Other Transactions

The Partnership manages long-term capital projects on behalf of Delek Holdings pursuant to a construction management and operating agreement (the "DPG Management Agreement") for the construction of gathering systems in the Permian Basin. The majority of the gathering systems have been constructed, however, additional costs pertaining to a pipeline connection that was not acquired by the Partnership continue to be incurred and are still subject to the terms of the DPG Management Agreement. The Partnership is also considered the operator for the project and is responsible for oversight of the project design, procurement and construction of project segments and provides other related services. Pursuant to the terms of the DPG Management Agreement, the Partnership receives a monthly operating services fee and a construction services fee, which includes the Partnership's direct costs of managing the project plus an additional percentage fee of the construction costs of each project segment. The agreement extends through December 2024. Total fees paid to the Partnership were $0.4 million for both the three months ended March 31, 2024 and 2023, which are recorded in affiliate revenue in our condensed consolidated statements of income. Additionally, the Partnership incurs the costs in connection with the construction of the assets and is subsequently reimbursed by Delek Holdings. Amounts reimbursable by Delek Holdings are recorded in accounts receivable from related parties.

Related Party Revolving Credit Facility

On November 6, 2023, the Partnership and certain of its subsidiaries, as guarantors, entered into the Related Party Revolving Credit Facility (as defined below) with Delek Holdings. See Note 5 - Long-Term Obligations for further information.

Summary of Transactions

Revenues from affiliates consist primarily of revenues from gathering, transportation, storage, offloading, Renewable Identification Numbers, wholesale marketing and products terminalling services provided primarily to Delek Holdings based on regulated tariff rates or contractually based fees and product sales. Affiliate operating expenses are primarily comprised of amounts we reimburse Delek Holdings, or our general partner, as the case may be, for the services provided to us under the Partnership Agreement. These expenses could also include reimbursement and indemnification amounts from Delek Holdings, as provided under the Omnibus Agreement. Additionally, the Partnership is required to reimburse Delek Holdings for direct or allocated costs and expenses incurred by Delek Holdings on behalf of the Partnership and for charges Delek Holdings incurred for the management and operation of our logistics assets, including an annual fee for various centralized corporate services, which are included in general and administrative expenses. In addition to these transactions, we purchase refined products and bulk biofuels from Delek Holdings, the costs of which are included in cost of materials and other-affiliate.


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Notes to the Condensed Consolidated Financial Statements (Unaudited)

A summary of revenue, purchases and expense transactions with Delek Holdings and its affiliates are as follows (in thousands):


	Three Months Ended March 31,
	2024		2023
Revenues	$	139,625	$	124,999
Purchases	$	92,882	$	91,071
Operating and maintenance expenses	$	18,218	$	8,823
General and administrative expenses	$	2,999	$	12,215

Quarterly Cash Distributions


Date of Distribution	Distributions paid to Delek Holdings (in thousands)
February 12, 2024	36,198
May 15, 2024 (1)	36,713


Total	$	72,911

February 9, 2023	$	34,998
May 15, 2023	$	35,169


Total	$	70,167

(1) On April 25, 2024, the board of directors of our general partner declared this quarterly cash distribution based on the available cash as of the date of determination.

3. Revenues

The following table represents a disaggregation of revenue for the gathering and processing, wholesale marketing and terminalling, and storage and transportation segments for the periods indicated (in thousands):























	Three Months Ended March 31, 2024
	Gathering and Processing		Wholesale Marketing and Terminalling		Storage and Transportation		Consolidated
Service Revenue - Third Party	$	23,385	$	—	$	2,732	$	26,117
Service Revenue - Affiliate (1)	2		13,216		13,545		26,763
Product Revenue - Third Party	19,945		66,388		—		86,333
Product Revenue - Affiliate	3,950		27,746		—		31,696
Lease Revenue - Affiliate	48,601		11,920		20,645		81,166
Total Revenue	$	95,883	$	119,270	$	36,922	$	252,075


	Three Months Ended March 31, 2023
	Gathering and Processing		Wholesale Marketing and Terminalling		Storage and Transportation		Consolidated
Service Revenue - Third Party	$	13,179	$	—	$	297	$	13,476
Service Revenue - Affiliate (1)	4,301		9,271		20,609		34,181
Product Revenue - Third Party	26,492		78,558		—		105,050
Product Revenue - Affiliate	4,670		979		—		5,649
Lease Revenue - Affiliate	43,790		23,501		17,878		85,169
Total Revenue	$	92,432	$	112,309	$	38,784	$	243,525

(1) Net of $1,803 of amortization expense for both the three months ended March 31, 2024 and 2023, related to marketing contract intangible recorded in the wholesale marketing and terminalling segment.

As of March 31, 2024, we expect to recognize approximately $1.1 billion in lease revenues related to our unfulfilled performance obligations pertaining to the minimum volume commitments and capacity utilization under the non-cancelable terms of our commercial agreements with Delek Holdings. Most of these agreements have an initial term ranging from five to ten years, which may be extended for various renewal terms. We disclose information about remaining performance obligations that have original expected durations of greater than one year.


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Notes to the Condensed Consolidated Financial Statements (Unaudited)

Our unfulfilled performance obligations as of March 31, 2024 were as follows (in thousands):


Remainder of 2024	$	157,672
2025	210,230
2026	202,754
2027	184,975
2028 and thereafter	304,466
Total expected revenue on remaining performance obligations	$	1,060,097

4. Net Income per Unit

Basic net income per unit attributable to limited partners is computed by dividing limited partners' interest in net income by the weighted-average number of outstanding common units. Diluted net income per unit attributable to common limited partners includes the effects of potentially dilutive units on our common units. As of March 31, 2024, the only potentially dilutive units outstanding consist of unvested phantom units.

The calculation of net income per unit is as follows (in thousands, except unit and per unit amounts):


	Three Months Ended March 31,
	2024		2023
Net income attributable to partners	$	32,648	$	37,367
Weighted average limited partner units outstanding, basic	44,406,356		43,569,963
Dilutive effect of unvested phantom units	16,461		15,334
Weighted average limited partner units outstanding, diluted	44,422,817		43,585,297
Net income per limited partner unit:
Basic	$	0.74	$	0.86
Diluted (1)	$	0.73	$	0.86

(1) There were 42,315 and $22,632 anti-dilutive common unit equivalents excluded from the diluted earnings per unit calculation during the three months ended March 31, 2024 and 2023, respectively.

5. Long-Term Obligations

Outstanding borrowings under the Partnership’s debt instruments are as follows (in thousands):


	March 31, 2024		December 31, 2023
DKL Revolving Facility	$	565,200	$	780,500
DKL Term Facility	—		281,250
2029 Notes	650,000		—
2028 Notes	400,000		400,000
2025 Notes	—		250,000
Principal amount of long-term debt	1,615,200		1,711,750
Less: Unamortized discount and deferred financing costs	13,974		7,961
Total debt, net of unamortized discount and deferred financing costs	1,601,226		1,703,789
Less: Current portion of long-term debt and notes payable	—		30,000
Long-term debt, net of current portion	$	1,601,226	$	1,673,789


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Notes to the Condensed Consolidated Financial Statements (Unaudited)

DKL Credit Facility

On October 13, 2022, the Partnership entered into a senior secured term loan with an original principal of $300.0 million (the "DKL Term Loan Facility"). On November 6, 2023, the Partnership entered into a First Amendment, a Second Amendment and a Third Amendment to the DKL Credit Facility (together, the “Amendments”) which among other things, extended the maturity of the DKL Term Loan Facility to April 15, 2025. The outstanding principal balance of $281.3 million was paid on March 13, 2024 from a portion of the proceeds received with the issuance of the 2029 Notes as indicated below. At the Partnership's option, borrowings bore interest at either the Adjusted Term Secured Overnight Financing Rate benchmark (“SOFR”) or U.S. dollar prime rate, plus an applicable margin. The applicable margin was 2.50% for the first year of the DKL Term Loan Facility and 3.00% for the second year for U.S. dollar prime rate borrowings. SOFR rate borrowings included a credit spread adjustment of 0.10% to 0.25% plus an applicable margin of 3.50% for the first year and 4.00% for the second year. At December 31, 2023, the weighted average borrowing rate was approximately 9.46%. Debt extinguishment costs were $2.1 million and are recorded in interest expense, net in the accompanying condensed consolidated statements of income.

On March 29, 2024, the Partnership entered into a Fourth Amendment to the fourth amended and restated senior secured revolving credit agreement (the "DKL Revolving Facility") which among other things increased the U.S. Revolving Credit Commitments (as defined in the DKL Credit Facility) by an amount equal to $100.0 million resulting in aggregate lender commitments under the Delek Logistics Revolving Credit Facility in an amount of $1,150.0 million, including up to $146.9 million for letters of credit and $31.9 million in swing line loans. This facility has a maturity date of October 13, 2027.

The DKL Revolving Facility requires a quarterly unused commitment fee based on average commitment usage, currently at 0.45% per annum. Interest is measured at either the U.S. dollar prime rate plus an applicable margin of 1.00% to 2.00% depending on the Partnership’s Total Leverage Ratio (as defined in the DKL Credit Agreement), or a SOFR rate plus a credit spread adjustment of 0.10% or 0.25% and an applicable margin ranging from 2.00% to 3.00% depending on the Partnership’s Total Leverage Ratio. As of March 31, 2024 and December 31, 2023, the weighted average interest rate was 8.18% and 8.46%, respectively. There were no letters of credit outstanding as of March 31, 2024 or December 31, 2023.

The obligations under the DKL Revolving Facility are secured by first priority liens on substantially all of the Partnership’s and its subsidiaries’ tangible and intangible assets. The carrying value of outstanding borrowings under the DKL Revolving Facility as of March 31, 2024 and December 31, 2023 approximate their fair values. Our debt facilities contain affirmative and negative covenants and events of default the Partnership considers usual and customary. As of March 31, 2024, we were in compliance with covenants on all of our debt instruments.

Related Party Revolving Credit Facility

On November 6, 2023, the Partnership and certain of its subsidiaries, as guarantors, entered into a certain Promissory Note (the “Related Party Revolving Credit Facility”) with Delek Holdings. The Related Party Revolving Credit Facility provides for revolving borrowings with aggregate commitments of $70.0 million comprised of a (i) $55.0 million senior tranche and a (ii) $15.0 million subordinated tranche (the “Subordinated Tranche”), with the initial borrowings under the Subordinated Tranche conditioned upon the Partnership and Delek Holdings reaching an agreement with Fifth Third Bank, National Association, as administrative agent under the DKL Credit Facility, on subordination provisions and other material terms related to the Subordinated Tranche. The Related Party Revolving Credit Facility will bear interest at Term SOFR (as defined in the Related Party Revolving Credit Facility) plus 3.00%. The Related Party Revolving Credit Facility proceeds will be used for the Partnership’s working capital purposes and other general corporate purposes. The Related Party Revolving Credit Facility will mature on June 30, 2028. The Related Party Revolving Credit Facility contains certain affirmative covenants, mandatory prepayments and events of default that the Partnership considers to be customary for an arrangement of this sort. The obligations under the Related Party Revolving Credit Facility are unsecured.

On May 2, 2024, the Boards of Directors of Delek Holdings and our general partner authorized the termination of the intercompany loan agreement between Delek Holdings and the Partnership, with the termination expected to be effective on or around May 31, 2024.

2029 Notes

On March 13, 2024, the Partnership and our wholly owned subsidiary Delek Logistics Finance Corp. ("Finance Corp." and together with the Partnership, the "Issuers") sold $650.0 million in aggregate principal amount of 8.625% senior notes due 2029 (the "2029 Notes") at par, pursuant to an indenture with U.S. Bank Trust Company, National Association as trustee. Net proceeds were used to redeem the 2025 Notes including accrued interest, pay off the DKL Term Facility including accrued interest and to repay a portion of the outstanding borrowings under the DKL Revolving Facility.

On April 17, 2024, the Issuers sold $200.0 million in aggregate principal amount of additional 8.625% senior notes due 2029 (the “Additional 2029 Notes”), at 101.25%. The Additional 2029 Notes were issued under the same indenture as the 2029 Notes and formed a part of the same series of notes as the 2029 Notes. The net proceeds were used to repay a portion of the outstanding borrowings under the DKL Revolving Facility.


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Notes to the Condensed Consolidated Financial Statements (Unaudited)

The 2029 Notes are general unsecured senior obligations of the Issuers and are unconditionally guaranteed jointly and severally on a senior unsecured basis by the Partnership's subsidiaries other than Finance Corp., and will be unconditionally guaranteed on the same basis by certain of the Partnership’s future subsidiaries. The 2029 Notes rank equal in right of payment with all existing and future senior indebtedness of the Issuers, and senior in right payment to any future subordinated indebtedness of the Issuers. The 2029 Notes will mature on March 15, 2029, and interest on the 2029 Notes is payable semi-annually in arrears on each March 15 and September 15, commencing September 15, 2024.

At any time prior to March 15, 2026, the Issuers may redeem up to 35% of the aggregate principal amount of the 2029 Notes with the net cash proceeds of one or more equity offerings by the Partnership at a redemption price of 108.625% of the redeemed principal amount, plus accrued and unpaid interest, if any, subject to certain conditions and limitations. Prior to March 15, 2026, the Issuers may also redeem all or part of the 2029 Notes at a redemption price of the principal amount plus accrued and unpaid interest, if any, plus a "make whole" premium, subject to certain conditions and limitations. In addition, beginning on March 15, 2026, the Issuers may, subject to certain conditions and limitations, redeem all or part of the 2029 Notes, at a redemption price of 104.313% of the redeemed principal for the twelve-month period beginning on March 15, 2026, 102.156% for the twelve-month period beginning on March 15, 2027, and 100.00% beginning on March 15, 2028 and thereafter, plus accrued and unpaid interest, if any. In the event of a change of control, subject to certain conditions and limitations, the Issuers will be obligated to make an offer for the purchase of the 2029 Notes from holders at a price equal to 101.00% of the principal amount thereof, plus accrued and unpaid interest.

We recorded $10.4 million of debt issuance costs which will be amortized over the term of the 2029 Notes and included in interest expense in the accompanying condensed consolidated statements of income. As of March 31, 2024, the effective interest rate was 8.81%. The estimated fair value of the 2029 Notes was $664.3 million as of March 31, 2024, measured based upon quoted market prices in an active market, defined as Level 1 in the fair value hierarchy.

2028 Notes

Our 2028 Notes are general unsecured senior obligations comprised of $400.0 million in aggregate principal of 7.125% senior notes maturing June 1, 2028. The 2028 Notes are unconditionally guaranteed jointly and severally on a senior unsecured basis by the Partnership's existing subsidiaries (other than Delek Logistics Finance Corp.) and will be unconditionally guaranteed on the same basis by certain of the Partnership's future subsidiaries. As of March 31, 2024, the effective interest rate was 7.39%. The estimated fair value of the 2028 Notes was $391.4 million and $380.4 million as of March 31, 2024 and December 31, 2023, respectively, measured based upon quoted market prices in an active market, defined as Level 1 in the fair value hierarchy.

2025 Notes

Our 2025 Notes are general unsecured senior obligations comprised of $250.0 million in aggregate principal of 6.75% senior notes maturing on May 15, 2025. Concurrent with the issuance of the 2029 Notes, the Partnership made a cash tender offer (the "Offer") for all of the outstanding 2025 Notes with a conditional notice of full redemption for the remaining balance not received from the Offer. The Partnership received tenders from holders of approximately $156.2 million in aggregate principal amount. All the remaining 2025 Notes were redeemed by March 29, 2024, pursuant to the notice of conditional redemption. Debt extinguishment costs were $1.5 million and are recorded in interest expense, net in the accompanying condensed consolidated statements of income. The estimated fair value of the 2025 Notes was $248.7 million as of December 31, 2023, measured based upon quoted market prices in an active market, defined as Level 1 in the fair value hierarchy.

6. Equity

On March 12, 2024, we completed a public offering of its common units in which it sold 3,584,416 common units (including an overallotment option of 467,532 common units) to the underwriters of the offering at a price to the public of $38.50 per unit. The proceeds received from this offering (net of underwriting discounts, commissions and expenses) were $132.3 million and were used to repay a portion of the outstanding borrowings under the DKL Revolving Facility. Underwriting discounts totaled $5.5 million.

Equity Activity

The table below summarizes the changes in the number of limited partner units outstanding from December 31, 2023 through March 31, 2024.


	Common - Public	Common - Delek Holdings (1)	Total
Balance at December 31, 2023	9,299,763	34,311,278	43,611,041
Unit-based compensation awards (2)	14,074	—	14,074
Units issued	3,584,416	—	3,584,416
Balance at March 31, 2024	12,898,253	34,311,278	47,209,531

(1) As of March 31, 2024, Delek Holdings owned a 72.7% limited partner interest in the Partnership.

(2) Unit-based compensation awards are presented net of 6,711 units withheld for taxes as of March 31, 2024.


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Notes to the Condensed Consolidated Financial Statements (Unaudited)

Cash Distributions

Our Partnership Agreement sets forth the calculation to be used to determine the amount and priority of available cash distributions that our limited partner unitholders will receive. Our distributions earned with respect to a given period are declared subsequent to quarter end.

The table below summarizes the quarterly distributions related to our quarterly financial results:


Quarter Ended	Total Quarterly Distribution Per Limited Partner Unit	Total Cash Distribution (in thousands)
March 31, 2023	$1.025	$44,664
June 30, 2023	$1.035	$45,112
September 30, 2023	$1.045	$45,558
December 31, 2023	$1.055	$46,010
March 31, 2024	$1.070	$50,514

7. Equity Method Investments

The Partnership owns a 33% membership interest in Red River Pipeline Company LLC ("Red River"), a joint venture operated with Plains Pipeline, L.P. Red River owns a 16-inch crude oil pipeline running from Cushing, Oklahoma to Longview, Texas with capacity of 235,000 bpd. Additionally, we have two pipeline joint ventures, in which we own a 50% membership interest in the entity formed with an affiliate of Plains All American Pipeline, L.P. ("CP LLC") to operate one of these pipeline systems and a 33% membership interest in the entity formed with Andeavor Logistics RIO Pipeline LLC ("Andeavor Logistics") to operate the other pipeline system.

The Partnership's investment balances in these joint ventures were as follows (in thousands):


	As of March 31, 2024		As of December 31, 2023
Red River	$	140,036	$	141,091
CP LLC	60,254		61,273
Andeavor Logistics	37,895		38,973
Total Equity Method Investments	$	238,185	$	241,337

8. Segment Data

We aggregate our operating segments into four reportable segments: (i) gathering and processing; (ii) wholesale marketing and terminalling; (iii) storage and transportation; and (iv) investment in pipeline joint ventures. Operations that are not specifically included in the reportable segments are included in Corporate and other segment.

The CODM evaluates performance based on EBITDA for planning and forecasting purposes. EBITDA is an important measure used by management to evaluate the financial performance of our core operations. EBITDA is not a GAAP measure, but the components of EBITDA are computed using amounts that are determined in accordance with GAAP. A reconciliation of EBITDA to Net Income is included in the tables below. We define EBITDA as net income (loss) before net interest expense, income tax expense, depreciation and amortization expense, including amortization of marketing contract intangible, which is included as a component of net revenues in our accompanying condensed consolidated statements of income.

Assets by segment are not a measure used to assess the performance of the Partnership by the CODM and thus is not disclosed.


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Notes to the Condensed Consolidated Financial Statements (Unaudited)

The following is a summary of business segment operating performance as measured by EBITDA for the periods indicated (in thousands):


	Three Months Ended March 31, 2024
(In thousands)	Gathering and Processing		Wholesale Marketing and Terminalling		Storage and Transportation		Investments in Pipeline Joint Ventures		Corporate and Other		Consolidated
Net revenues:
Affiliate (1)	$	52,553	$	52,882	$	34,190	$	—	$	—	$	139,625
Third party	43,330		66,388		2,732		—		—		112,450
Total revenue	$	95,883	$	119,270	$	36,922	$	—	$	—	$	252,075

Segment EBITDA	$	57,772	$	25,274	$	18,127	$	8,477	$	(8,149)	$	101,501
Depreciation and amortization	21,154		1,712		2,775		—		854		26,495
Amortization of customer contract intangible	—		1,803		—		—		—		1,803
Interest expense, net	—		—		—		—		40,229		40,229
Income tax expense											326
Net income											$	32,648

Capital spending (2)	$	14,723	$	(84)	$	526	$	—	$	—	$	15,165

	Three Months Ended March 31, 2023
(In thousands)	Gathering and Processing		Wholesale Marketing and Terminalling		Storage and Transportation		Investments in Pipeline Joint Ventures		Corporate and Other		Consolidated
Net revenues:
Affiliate (1)	$	52,761	$	33,751	$	38,487	$	—	$	—	$	124,999
Third party	39,671		78,558		297		—		—		118,526
Total revenue	$	92,432	$	112,309	$	38,784	$	—	$	—	$	243,525

Segment EBITDA	$	55,445	$	21,954	$	13,422	$	6,316	$	(3,979)	$	93,158
Depreciation and amortization	16,447		1,689		2,102		—		867		21,105
Amortization of customer contract intangible	—		1,803		—		—		—		1,803
Interest expense, net	—		—		—		—		32,581		32,581
Income tax expense											302
Net income											$	37,367

Capital spending (2)	$	32,789	$	3,116	$	196	$	—	$	—	$	36,101

(1) Affiliate revenue for the wholesale marketing and terminalling segment is presented net of amortization expense pertaining to the marketing contract intangible.

(2) Capital spending includes additions on an accrual basis.

9. Commitments and Contingencies

Litigation

In the ordinary conduct of our business, we are from time to time subject to lawsuits, investigations and claims, including environmental claims and employee-related matters. Although we cannot predict with certainty the ultimate resolution of lawsuits, investigations and claims asserted against us, including civil penalties or other enforcement actions, we do not believe that any currently pending legal proceeding or proceedings to which we are a party will have a material adverse effect on our financial statements.

Environmental, Health and Safety

We are subject to extensive federal, state and local environmental and safety laws and regulations enforced by various agencies, including the Environmental Protection Agency (the "EPA"), the United States Department of Transportation, the Occupational Safety and Health Administration, as well as numerous state, regional and local environmental, safety and pipeline agencies. These laws and regulations govern the discharge of materials into the environment, waste management practices and pollution prevention measures, as well as the safe operation of our pipelines and the safety of our workers and the public. Numerous permits or other authorizations are required under these laws and regulations for the operation of our terminals, pipelines, saltwells, trucks and related operations, and may be subject to revocation, modification and renewal.


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Notes to the Condensed Consolidated Financial Statements (Unaudited)

These laws and permits raise potential exposure to future claims and lawsuits involving environmental and safety matters, which could include soil, surface water and groundwater contamination, air pollution, personal injury and property damage allegedly caused by substances which we may have handled, used, released or disposed of, transported, or that relate to pre-existing conditions for which we may have assumed responsibility. We believe that our current operations are in substantial compliance with existing environmental and safety requirements. However, there have been and we expect that there will continue to be ongoing discussions about environmental and safety matters between us and federal and state authorities, including the receipt and response to notices of violations, citations and other enforcement actions, some of which have resulted or may result in changes to operating procedures and in capital expenditures. While it is often difficult to quantify future environmental or safety related expenditures, we anticipate that continuing capital investments and changes in operating procedures will be required to comply with existing and new requirements, as well as evolving interpretations and enforcement of existing laws and regulations.

Releases of hydrocarbons or hazardous substances into the environment could, to the extent the event is not insured, or is not a reimbursable event under the Omnibus Agreement, subject us to substantial expenses, including costs to respond to, contain and remediate a release, to comply with applicable laws and regulations and to resolve claims by governmental agencies or other persons for personal injury, property damage, response costs, or natural resources damages.

10. Subsequent Events

Distribution Declaration

On April 25, 2024, our general partner's board of directors declared a quarterly cash distribution of $1.070 per unit, payable on May 15, 2024, to unitholders of record on May 8, 2024.


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Management's Discussion and Analysis

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is management’s analysis of our financial performance and of significant trends that may affect our future performance. The MD&A should be read in conjunction with our condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and in the Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (''SEC'') on February 28, 2024 (the ''Annual Report on Form 10-K''). Those statements in the MD&A that are not historical in nature should be deemed forward-looking statements that are inherently uncertain. See "Forward-Looking Statements" below for a discussion of the factors that could cause actual results to differ materially from those projected in these statements.

Unless otherwise noted or the context requires otherwise, references in this report to "Delek Logistics Partners, LP," the "Partnership," “we,” “us,” or “our” or like terms, may refer to Delek Logistics Partners, LP, one or more of its consolidated subsidiaries or all of them taken as a whole. Unless otherwise noted or the context requires otherwise, references in this report to "Delek Holdings" refer collectively to Delek US Holdings, Inc. and any of its subsidiaries, other than the Partnership and its subsidiaries and its general partner.

The Partnership announces material information to the public about the Partnership, its products and services and other matters through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, the Partnership's website (www.deleklogistics.com), the investor relations section of the website (ir.deleklogistics.com), the news section of its website (www.deleklogistics.com/news), and/or social media, including its X (formerly known as Twitter) account (@DelekLogistics). The Partnership encourages investors and others to review the information it makes public in these locations, as such information could be deemed to be material information. Please note that this list may be updated from time to time.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Exchange Act. These forward-looking statements reflect our current estimates, expectations and projections about our future results, performance, prospects and opportunities. Forward-looking statements include, among other things, statements regarding the effect, impact, potential duration or other implications of, or expectations expressed with respect to, the actions of members of the Organization of Petroleum Exporting Countries ("OPEC") and other leading oil producing countries (together with OPEC, "OPEC+") with respect to oil production and pricing, and statements regarding our efforts and plans in response to such events, the information concerning our possible future results of operations, business and growth strategies, financing plans, expectations that regulatory developments or other matters will not have a material adverse effect on our business or financial condition, our competitive position and the effects of competition, the projected growth of the industry in which we operate, the benefits and synergies to be obtained from our completed and any future acquisitions, statements of management’s goals and objectives, and other similar expressions concerning matters that are not historical facts. Words such as “may,” “will,” “should,” “could,” “would,” “predicts,” “potential,” “continue,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “appears,” “projects” and similar expressions, as well as statements in future tense, identify forward-looking statements.

Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking information is based on information available at the time and/or management’s good faith belief with respect to future events, and is subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Important factors that, individually or in the aggregate, could cause such differences include, but are not limited to:

•our substantial dependence on Delek Holdings or its assignees and their support of and respective ability to pay us under our commercial agreements;

•our future coverage, leverage, financial flexibility and growth, and our ability to improve performance and achieve distribution growth at any level or at all;

•Delek Holdings' future growth, strategic priorities, financial performance, share repurchases, crude oil supply pricing and flexibility and product distribution;

•industry dynamics, including Permian Basin growth, ownership concentration, efficiencies and takeaway capacity;

•the age and condition of our assets and operating hazards and other risks incidental to transporting, storing and gathering crude oil, intermediate and refined products, including, but not limited to, costs, penalties, regulatory or legal actions and other effects related to spills, releases and tank failures;

•changes in insurance markets impacting costs and the level and types of coverage available;

•the timing and extent of changes in commodity prices and demand for refined products and the impact of the COVID-19 Pandemic on such demand;

•the wholesale marketing margins we are able to obtain and the number of barrels of product we are able to purchase and sell in our West Texas wholesale business;

•the suspension, reduction or termination of Delek Holdings' or its assignees' or third-party's obligations under our commercial agreements including the duration, fees or terms thereof;

•the results of our investments in joint ventures;

•the ability to secure commercial agreements with Delek Holdings or third parties upon expiration of existing agreements;


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Management's Discussion and Analysis

•the possibility of inefficiencies, curtailments, or shutdowns in refinery operations or pipelines, whether due to infection in the workforce or in response to reductions in demand as a result of a public health crisis;

•disruptions due to equipment interruption or failure, or other events, including terrorism, sabotage or cyber-attacks, at our facilities, Delek Holdings’ facilities or third-party facilities on which our business is dependent;

•changes in the availability and cost of capital of debt and equity financing;

•our reliance on information technology systems in our day-to-day operations;

•changes in general economic conditions, including uncertainty regarding the timing, pace and extent of economic recovery in the United States due to governmental fiscal policy or a public health crisis;

•the effects of existing and future laws and governmental regulations, including, but not limited to, the rules and regulations promulgated by the Federal Energy Regulatory Commission ("FERC") and state commissions and those relating to environmental protection, pipeline integrity and safety as well as current and future restrictions on commercial and economic activities in response to a public heal;

•significant operational, investment or other changes required by existing or future environmental statutes and regulations, including international agreements and national or regional societal, legislation; and regulatory measures to limit or reduce greenhouse gas emissions;

•competitive conditions in our industry including capacity overbuild in areas where we operate;

•actions taken by our customers and competitors;

•the demand for crude oil, refined products and transportation and storage services;

•our ability to successfully implement our business plan;

•inability to complete growth projects on time and on budget;

•our ability to successfully complete acquisitions and integrate acquired businesses, and to achieve the anticipated benefits therefrom;

•disruptions due to acts of God, natural disasters, casualty losses, severe weather patterns, such as freezing conditions, cyber or other attacks on our electronic systems, and other matters beyond our control which might cause damage to our pipelines, terminal facilities and other assets and could impact our operating results through increased costs and/or loss of revenue;

•changes in the price of RINs could affect our results of operations;

•future decisions by OPEC+ regarding production and pricing and disputes between OPEC+ regarding such;

•changes or volatility in interest and inflation rates;

•labor relations;

•large customer defaults;

•changes in tax status and regulations;

•the effects of future litigation or environmental liabilities that are not covered by insurance; and

•other factors discussed elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K.

Many of the foregoing risks and uncertainties are, and will be, exacerbated by any worsening of the global business and economic environment. In light of these risks, uncertainties and assumptions, our actual results of operations and execution of our business strategy could differ materially from those expressed in, or implied by, the forward-looking statements, and you should not place undue reliance upon them. In addition, past financial and/or operating performance is not necessarily a reliable indicator of future performance, and you should not use our historical performance to anticipate results or future period trends. We can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them do, what impact they will have on our results of operations and financial condition.

In light of these risks, uncertainties and assumptions, our actual results of operations and execution of our business strategy could differ materially from those expressed in, or implied by, the forward-looking statements, and you should not place undue reliance upon them. In addition, past financial and/or operating performance is not necessarily a reliable indicator of future performance, and you should not use our historical performance to anticipate results or future period trends. We can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them do, what impact they will have on our results of operations and financial condition.

All forward-looking statements included in this report are based on information available to us on the date of this report. We undertake no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise.


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Management's Discussion and Analysis

Executive Summary: Management's View of Our Business and Strategic Overview


Management's View of Our Business

The Partnership provides gathering, pipeline and other transportation services primarily for crude oil and natural gas customers, storage, wholesale marketing and terminalling services primarily for intermediate and refined product customers, and water disposal and recycling services through its owned assets and joint ventures located primarily in the Permian Basin (including the Delaware sub-basin) and other select areas in the Gulf Coast region. A majority of our existing assets are both integral to and dependent upon the success of Delek Holdings' refining operations, as many of our assets are contracted exclusively to Delek Holdings in support of its refineries in Tyler, Texas (the "Tyler Refinery"), El Dorado, Arkansas (the "El Dorado Refinery") and Big Spring, Texas (the "Big Spring Refinery").

Business and Economic Environment Overview

During the three months ended March 31, 2024, domestic markets have experienced an elevated hydrocarbon pricing environment that has resulted in a strong demand for hydrocarbons and presented an opportunity for the Partnership to leverage its extensive network of logistics assets, resulting in increased throughputs and higher utilization as compared to the prior year. Additionally, Delaware Gathering further diversifies our logistics customer base to include significantly more third-party customers, and it allows us to provide comprehensive logistics services in the Delaware Basin, while also serving as a funnel into our existing midstream Permian activities. As producers continue to ramp up production within the Permian Basin, the Partnership is well positioned to continue to add value through our gathering and processing services as a result of our Delaware Gathering operations which complement our existing Midland Gathering System assets. Our positioning allows our customers the ability to control quality and adds optionality to place barrels in a variety of markets. Through our joint venture projects, we have increased our supply network to take advantage of growth opportunities in expanding markets and added additional flexibility which has delivered realized value through the Partnership system. While we experienced a $4.7 million decrease in net income for the three months ended March 31, 2024, our EBITDA (as defined in "Non GAAP Measures" section below) increased $8.3 million in 2024 as compared to 2023. Our gathering and processing segment saw a $2.3 million increase in segment EBITDA. Our wholesale marketing and terminalling segment saw a $3.3 million increase in segment EBITDA. Segment EBITDA for our investments in pipeline joint ventures increased by $2.2 million. See the “Results of Operations” section below for further discussion.

Looking forward, concerns about inflation and a possible economic downturn as well as initiatives to reduce carbon footprints through energy transition to renewables have softened the forward demand expectations for hydrocarbons and natural gas. That said, we are well positioned to manage through an economic downturn because of built-in recessionary protections which include minimum volume commitments on throughput and dedicated acreage agreements. Additionally, the Partnership has embraced opportunities to enhance our environmental stewardship. It is expected that renewables, other than hydrocarbons, will continue to grow as a percentage of total energy consumption; however, a material reduction in the reliance on oil and gas for energy consumption is unlikely in the near term. Therefore, we expect that liquid transportation fuels will continue to be in high demand, and we expect to continue to leverage the strength of our cash flows and balance sheet in order to continue maximizing unitholder returns and the long-term prospects for return on investment.

See further discussion on macroeconomic factors and market trends, including the impact on 2024, in the ‘Market Trends’ section below.

Other 2024 Developments

Equity Offering

2029 Notes

On March 13, 2024, the Partnership sold $650.0 million in aggregate principal amount of 8.625% Senior Notes due 2029 (the “2029 Notes”), at par. Net proceeds were used to redeem the 2025 Notes including accrued interest, pay off the DKL Term Loan Facility including accrued interest and to repay a portion of the outstanding borrowings under the DKL Revolving Facility.


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Management's Discussion and Analysis

DKL Revolving Credit Facility

On March 29, 2024, the Partnership entered into a Fourth Amendment to the fourth amended and restated senior secured revolving credit agreement (the "DKL Revolving Facility") which among other things increased the U.S. Revolving Credit Commitments (as defined in the DKL Credit Facility) by an amount equal to $100.0 million resulting in aggregate lender commitments under the DKL Revolving Credit Facility in an amount of $1,150.0 million, including up to $146.9 million for letters of credit and $31.9 million in swing line loans. This facility has a maturity date of October 13, 2027.

As a result of these transactions, our liquidity significantly improved, with an increase from approximately $300.0 million as of December 31, 2023, to approximately $800.0 million. The improvement in liquidity demonstrates the success of our financial strategies and the positive impact of our transactions, positioning us for future growth and strengthening our financial stability.


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Management's Discussion and Analysis


Segment Overview

We review operating results in four reportable segments: (i) gathering and processing; (ii) wholesale marketing and terminalling; (iii) storage and transportation; and (iv) investments in pipeline joint ventures. Decisions concerning the allocation of resources and assessment of operating performance are made based on this segmentation. Management measures the operating performance of each reportable segment based on the segment EBITDA, except for the investments in pipeline joint ventures segment, which is measured based on net income. Segment reporting is discussed in more detail in Note 8 to our condensed consolidated statements of income in Item 1. to this Quarterly Report on Form 10-Q.


Gathering and Processing

The operational assets in our gathering and processing segment consist of Midland Gathering Assets and Delaware Gathering Assets. The Midland Gathering Assets support our crude oil gathering activities which primarily serves Delek Holdings refining needs throughout the Permian Basin. The Delaware Gathering Assets support our crude oil and natural gas gathering, processing and transportation businesses, as well as water disposal and recycling operations, located in the Delaware Basin of New Mexico, and serving primarily third-party producers and customers. Finally, our gathering and processing assets are integrated with our pipeline assets, which we use to transport gathered crude oil as well as provide other crude oil, intermediate and refined products transportation in support of Delek Holdings' refining operations in Tyler, Texas, El Dorado, Arkansas and Big Spring, Texas, as well as to certain third parties. In providing these services, we do not take ownership of the refined products or crude oil that we transport. While we do not take ownership of gas that is gathered, we sell the processed gas at a market price which we remit to the producer, net of our fees. Therefore, we are not directly exposed to changes in commodity prices with respect to this operating segment. The combination of these operational assets provides a comprehensive, integrated midstream service offering to producers and customers.


Wholesale Marketing and Terminalling

Our wholesale marketing and terminalling segment provides wholesale marketing and terminalling services to Delek Holdings’ refining operations and to independent third parties from whom we receive fees for marketing, transporting, storing and terminalling refined products and to whom we wholesale market refined products. In providing certain of these services, we take ownership of the products and are therefore exposed to market risks related to the volatility of commodity and refined product prices in our West Texas operations, which depend on many factors, including demand and supply of refined products in the West Texas market, the timing of refined product deliveries and downtime at refineries in the surrounding area.


Storage and Transportation

The operational assets in our storage and transportation segment consist of tanks, offloading facilities, trucks and ancillary assets, which provide crude oil, intermediate and refined products transportation and storage services primarily in support of Delek Holdings' refining operations in Tyler, Texas, El Dorado, Arkansas and Big Spring, Texas. Additionally, the assets in this segment provide crude oil transportation services to certain third parties. In providing these services, we do not take ownership of the products or crude oil that we transport or store. Therefore, we are not directly exposed to changes in commodity prices with respect to this operating segment.


Investments in Pipeline Joint Ventures

The Partnership owns a portion of three joint ventures (accounted for as equity method investments) that have constructed separate crude oil pipeline systems and related ancillary assets primarily in the Permian Basin and Gulf Coast regions and with strategic connections to Cushing, Midland and other key exchange points, which provide crude oil and refined product pipeline transportation to third parties and subsidiaries of Delek Holdings.


Corporate and Other

The corporate and other segment primarily consists of general and administrative expenses not allocated to a reportable segment, interest expense and depreciation and amortization. When applicable, it may also contain operating segments that are not reportable and do not meet the criteria for aggregation with any of our existing reportable segments.


Strategic Overview

Long-Term Strategic Objectives

The Partnership’s Long-Term Strategic Objectives have been focused on maintaining stable cash flows and to grow the quarterly distributions paid to our unitholders over time. To that end, we have been focused on growing our asset base within our geographic area, through acquisitions, project development, joint ventures, enhancing our existing systems and lowering our carbon footprint, as we continue to evaluate ways to provide Delek Holdings with logistics services and look for ways to reduce our reliance on Delek Holdings as our primary customer.


20 \|

Management's Discussion and Analysis

2024 Strategic Focus Areas

We continue to believe that our strategic focus areas are the right ones. As such, we continue to refine our processes for evaluating risks and returns while maintaining a keen eye on our overarching Long-Term Strategic Objectives and our desire to create long-term operational sustainability. To that end, our 2024 Strategic Focus Areas are as follows:

•Generate Stable Cash Flow. Continue to pursue opportunities to provide logistics, marketing and other services to Delek Holdings and third parties pursuant to long-term, fee-based contracts. In new service contracts, endeavor to include minimum volume throughput or other commitments, similar to those included in our current commercial agreements with Delek Holdings.

•Focus on Growing Our Business. Continue to evaluate and pursue opportunities to grow our business through both strategic acquisitions and expansion and construction projects, both internally funded or in combination with potential external partners and through investments in joint ventures. Additionally, where possible, leverage our strong relationship with Delek Holdings to enhance our opportunities to grow our business.

◦Pursue Acquisitions. Pursue strategic acquisitions that both complement our existing assets and provide attractive returns for our unitholders, with a focus on expanding our third-party business. Leverage our current asset base, and our knowledge of the regional markets in which we operate, to target and complete attractive third-party acquisitions, which will enhance our third-party revenues and margin, further diversifying our customer and product mix.

◦Investments in Joint Ventures. Continue to focus on leveraging and, when appropriate, expanding our investments in joint ventures, which have contributed to our initiative to grow our midstream business while increasing our crude oil sourcing flexibility.

•Engage in Mutually Beneficial Transactions with Delek Holdings. Delek Holdings is required, under certain circumstances, to offer us the opportunity to purchase additional logistics assets that Delek Holdings may acquire or construct in the future. Further, we will continue to evaluate additional growth opportunities through subsequent dropdowns of logistics assets acquired or developed by Delek Holdings, while factoring in associated impact on our capital structure and critically evaluating anticipated return on investment. As certain of our commercial agreements with Delek Holdings have expired or are set to expire soon, we are currently engaged in negotiations to renew these contracts and ensure continued value for both ourselves and our sponsor.

•Pursue Attractive Expansion and Construction Opportunities. Continue to evaluate, and when appropriate in the context of our return on investment and risk assessment criteria, pursue organic growth opportunities that complement our existing businesses or that provide attractive returns within or outside our current geographic footprint. Continue to evaluate potential opportunities to make capital investments that will be used to expand our existing asset base through the expansion and construction of new logistics assets to support growth of any of our customers', including Delek Holdings', businesses and from increased third-party activity. These construction projects may be developed either through joint venture relationships or by us acting independently, depending on size and scale.

•Optimize Our Existing Assets and Expand Our Customer Base. Continue seeking to enhance the profitability of our existing assets by adding incremental throughput volumes, improving operating efficiencies and increasing system-wide utilization. Additionally, continue to seek opportunities to further diversify our customer base by increasing third-party throughput volumes running through certain of our existing systems and expanding our existing asset portfolio to service more third-party customers.

•Expand our ESG Consciousness and Lower Our Carbon Footprint. Continue to look for ways to grow our business whilst staying conscious of and minimizing the negative environmental impact, while also seeking opportunities to invest in innovative technologies that will reduce our carbon emissions as we achieve our growth objectives and sustainably improve unitholder returns. We expect to achieve this objective through ESG-Conscious Investments with Clear Value Propositions and Sustainable Returns.


Market Trends

Fluctuations in crude oil, natural gas and NGL prices and the prices of related refined and other hydrocarbon products impact operations in the midstream energy sector. For example, the prices of each of these products have the ability to influence drilling activity in many basins and the amounts of capital spending that crude oil exploration and production companies incur to support future growth. Exploration and production activities have a direct impact on volumes transported through our gathering assets in the geologic basins in which we operate. Additionally, the demand for hydrocarbon-based refined products and related crack spreads significantly impact production decisions of our refining customers and likewise throughputs on our pipelines and other logistics assets. Finally, fluctuations in demand and commodity prices for refined products, as well as the value attributable to RINs, directly impacts our wholesale marketing operations, where we are subject to short-term commodity price fluctuations at the rack. Most of the logistics services we provide (including transportation, gathering and processing services) are subject to long-term fee-based contracts with minimum volume commitments or long-term dedicated acreage agreements which mitigate most of our short-term financial risk to price and demand volatility. However, sustained depressed demand/prices over the longer term could not only curb exploration and production expansion opportunities under our agreements, it could also impact our customers' willingness or ability to renew commercial agreements or result in liquidity or credit constraints that could impact our longer term relationship with them.


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Management's Discussion and Analysis

That said, our recent expansion of our gas processing capabilities have improved both our customer and geographic diversification which lowers concentration risk in those areas, in addition to adding service offerings to our portfolio. Furthermore, our dedicated acreage agreements provide significant growth opportunities in strong economic conditions (e.g., high demand/high commodity prices) without incremental customer acquisition cost. Given all of these factors, we believe that we continue to be strategically positioned, even in tougher market conditions, to sustain positive operating results and cash flows and to continue developing profitable growth projects that are needed to support future distribution growth.

The charts on the following page provide historical commodity pricing statistics for crude oil, refined product and natural gas.


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Management's Discussion and Analysis

Non-GAAP Measures

Our management uses certain "non-GAAP" operational measures to evaluate our operating segment performance and non-GAAP financial measures to evaluate past performance and prospects for the future to supplement our financial information presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"). These financial and operational non-GAAP measures include:


•Earnings before interest, taxes, depreciation and amortization ("EBITDA") - calculated as net income before net interest expense, income tax expense, depreciation and amortization expense, including amortization of marketing contract intangible, which is included as a component of net revenues in our condensed consolidated statements of income in Item 1. to this Quarterly Report on Form 10-Q.						•Distributable cash flow - calculated as net cash flow from operating activities plus or minus changes in assets and liabilities, less maintenance capital expenditures net of reimbursements and other adjustments not expected to settle in cash. The Partnership believes this is an appropriate reflection of a liquidity measure by which users of its financial statements can assess its ability to generate cash.

EBITDA and distributable cash flow are non-GAAP supplemental financial measures that management and external users of our condensed consolidated financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:

•our operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;

•the ability of our assets to generate sufficient cash flow to make distributions to our unitholders;

•our ability to incur and service debt and fund capital expenditures; and

•the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.

We believe that the presentation of EBITDA and distributable cash flow provide information useful to investors in assessing our financial condition and results of operations. EBITDA and distributable cash flow should not be considered alternatives to net income, operating income, cash flow from operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. EBITDA and distributable cash flow have important limitations as analytical tools, because they exclude some, but not all, items that affect net income and net cash provided by operating activities. Additionally, because EBITDA and distributable cash flow may be defined differently by other partnerships in our industry, our definitions of EBITDA and distributable cash flow may not be comparable to similarly titled measures of other partnerships, thereby diminishing their utility. See below for a reconciliation of EBITDA and distributable cash flow to their most directly comparable GAAP financial measures.

Non-GAAP Reconciliations

The following table provides a reconciliation of EBITDA and distributable cash flow (which are defined above) to the most directly comparable GAAP measure, or net income and net cash from operating activities, respectively.


Reconciliation of net income to EBITDA (in thousands)
	Three Months Ended March 31,
		2024		2023
Net income		$	32,648	$	37,367
Add:
Income tax expense		326		302
Depreciation and amortization		26,495		21,105
Amortization of marketing contract intangible		1,803		1,803
Interest expense, net		40,229		32,581
EBITDA		$	101,501	$	93,158


Reconciliation of net cash from operating activities to distributable cash flow (in thousands)
	Three Months Ended March 31,
		2024		2023
Net cash provided by operating activities		$	43,858	$	29,190
Changes in assets and liabilities		25,787		37,670
Distributions from equity method investments in investing activities		2,133		1,440
Non-cash lease expense		(1,939)		(2,200)
Regulatory and sustaining capital expenditures not distributable (1)		(1,279)		(4,246)
Reimbursement from Delek Holdings for capital expenditures (2)		286		337

Accretion of asset retirement obligations		(187)		(176)
Deferred income taxes		(101)		(111)
Loss on disposal of assets		(567)		(142)
Distributable cash flow		$	67,991	$	61,762


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Management's Discussion and Analysis


(1)			Regulatory and sustaining capital expenditures represent cash expenditures (including for the addition or improvement to, or the replacement of, our capital assets, and for the acquisition of existing, or the construction or development of new, capital assets) made to maintain our long-term operating income or operating capacity. Examples include expenditures for the repair, refurbishment and replacement of pipelines and terminals, to maintain equipment reliability, integrity and safety and to address environmental laws and regulations.
(2)			Reimbursement from Delek Holdings for capital expenditures represents amounts for certain capital expenditures reimbursable to us from Delek Holdings pursuant to the terms of the Omnibus Agreement (as defined in Note 2 to our condensed consolidated financial statements in Item 1. Financial Statements, of this Quarterly Report on Form 10-Q).


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Management's Discussion and Analysis

Summary of Financial and Other Information

A discussion and analysis of the factors contributing to our results of operations is presented below. The financial statements, together with the following information, are intended to provide investors with a reasonable basis for assessing our historical operations, but should not serve as the only criteria for predicting our future performance.

The following table provides summary financial data (in thousands, except unit and per unit amounts):


Summary Statement of Operations Data (1)	Three Months Ended March 31,
		2024		2023
Net revenues:
Gathering and Processing		$	95,883	$	92,432
Wholesale marketing and terminalling		119,270		112,309
Storage and transportation		36,922		38,784


Total		252,075		243,525

Cost of materials and other		123,692		126,096
Operating expenses (excluding depreciation and amortization presented below)		31,916		24,740
General and administrative expenses		4,863		7,510
Depreciation and amortization		26,495		21,105
Impairment of goodwill		—		—
Loss on disposal of assets		567		142
Operating income		$	64,542	$	63,932
Interest expense, net		40,229		32,581
Income from equity method investments		(8,490)		(6,316)
Other income, net		(171)		(2)
Total non-operating expenses, net		31,568		26,263
Income before income tax expense		32,974		37,669
Income tax expense		326		302
Net income attributable to partners		$	32,648	$	37,367
Comprehensive income attributable to partners		$	32,648	$	37,367
EBITDA(2)		$	101,501	$	93,158
Net income per limited partner unit:
Basic		$	0.74	$	0.86
Diluted		$	0.73	$	0.86
Weighted average limited partner units outstanding:
Basic		44,406,356		43,569,963
Diluted		44,422,817		43,585,297

(1)This information is presented at a summary level for your reference. See the Condensed Consolidated Statements of Income for more detail regarding our results of operations.

(2) For a definition of EBITDA, see "Non-GAAP Measures" above.

We report operating results in four reportable segments:

•Gathering and Processing

•Wholesale Marketing and Terminalling

•Storage and Transportation

•Investments in Pipeline Joint Ventures

Decisions concerning the allocation of resources and assessment of operating performance are made based on this segmentation. Management measures the operating performance of each of its reportable segments based on the segment EBITDA.


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Management's Discussion and Analysis

Results of Operations

Consolidated Results of Operations — Comparison of the three months ended March 31, 2024 compared to the three months ended March 31, 2023

Net Revenues

Q1 2024 vs. Q1 2023

Net revenues increased by $8.6 million, or 3.5%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The increase was primarily driven by the following:

•increase in terminalling and marketing fees due to rate increases as well as higher volumes associated with Tyler Refinery operations which were negatively impacted in prior year as a result of turnaround activities.

Such increases were partially offset by the following:

•decreased revenue of $0.6 million in our West Texas marketing operations primarily driven by decreases in RIN prices.

Cost of Materials and Other

Q1 2024 vs. Q1 2023

Cost of materials and other decreased by $2.4 million, or 1.9%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily driven by

•decrease of $5.2 million in our gathering and processing segment driven primarily by lower natural gas costs.

Such decrease was partially offset by the following:

•increase in costs of materials and other of $1.8 million in our West Texas marketing operations primarily driven by increases in the average volumes of gasoline and diesel sold, partially offset by decreases in the average cost per gallon:

◦the volumes of gasoline and diesel sold increased by 4.0 million and 0.5 million gallons, respectively; and

◦the average cost per gallon of gasoline and diesel sold decreased by $0.28 per gallon and $0.22 per gallon, respectively.

Operating Expenses

Q1 2024 vs. Q1 2023

Operating expenses increased by $7.2 million, or 29.0%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily driven by an increase in contract services.

General and Administrative Expenses

Q1 2024 vs. Q1 2023

General and administrative expenses decreased by $2.6 million, or 35.2%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily driven by a decrease in contract services.

Depreciation and Amortization

Q1 2024 vs. Q1 2023

Depreciation and amortization increased by $5.4 million, or 25.5%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily driven by the following:

•depreciation associated with new projects in-serviced during the period.


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Management's Discussion and Analysis

Interest Expense

Q1 2024 vs. Q1 2023

Interest expense increased by $7.6 million, or 23.5%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily driven by the following:

•debt extinguishment costs of $3.6 million associated with the payoff of the DKL Term Loan Facility and the 2025 Notes with proceeds from the 2029 Notes issued in March 2024;

•interest of $2.8 million associated with the 2029 Notes; and

•an increase in interest rates associated with the DKL Revolving Facility.

Results from Equity Method Investments

Q1 2024 vs. Q1 2023

Income from equity method investments increased by $2.2 million, or 34.4%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023 primarily due to increases in throughput at two of our joint ventures that were negatively impacted by the turnaround at the Tyler Refinery in prior year.


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Management's Discussion and Analysis

Operating Segments

Gathering and Processing Segment

The following tables and discussion present the results of operations and certain operating statistics of the gathering and processing segment for the three months ended March 31, 2024 and 2023:


Gathering and Processing
	Three Months Ended March 31,
		2024		2023



Net Revenues		$	95,883	$	92,432
Cost of materials and other		$	17,869	$	23,024
Operating expenses (excluding depreciation and amortization)		$	19,692	$	14,222
Segment EBITDA		$	57,772	$	55,445


Throughputs (average bpd)
	Three Months Ended March 31,
		2024	2023
El Dorado Assets:
Crude pipelines (non-gathered)		73,011	63,528
Refined products pipelines to Enterprise Systems		63,234	55,003
El Dorado Gathering System		12,987	13,872
East Texas Crude Logistics System		19,702	22,670
Midland Gathering System		213,458	222,112
Plains Connection System		256,844	240,597


Delaware Gathering Assets Volumes
	Three Months Ended March 31,
		2024	2023
Natural Gas Gathering and Processing (Mcfd(1))		76,322	74,716
Crude Oil Gathering (bpd(2))		123,509	103,725
Water Disposal and Recycling (bpd(2))		120,269	88,182

(1) Mcfd - average thousand cubic feet per day.

(2) bpd - average barrels per day.

Operational comparison of the three months ended March 31, 2024 compared to the three months ended March 31, 2023:

Net Revenues

Q1 2024 vs. Q1 2023

Net revenues for the gathering and processing segment increased by $3.5 million, or 3.7%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Cost of Materials and Other

Q1 2024 vs. Q1 2023

Cost of materials and other for the gathering and processing segment decreased by $5.2 million, or 22.4%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023, driven primarily by lower natural gas costs.

Operating Expenses

Q1 2024 vs. Q1 2023

Operating expenses for the gathering and processing segment increased by $5.5 million, or 38.5%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily driven by increase in contract services.


28 \|

Management's Discussion and Analysis

EBITDA

Q1 2024 vs. Q1 2023

EBITDA increased by $2.3 million, or 4.2%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023.


29 \|

Management's Discussion and Analysis

Wholesale Marketing and Terminalling Segment

The following tables and discussion present the results of operations and certain operating statistics of the wholesale marketing and terminalling segment for the three months ended March 31, 2024 and 2023:


Wholesale Marketing and Terminalling
	Three Months Ended March 31,
		2024		2023



Net Revenues		$	119,270	$	112,309
Cost of materials and other		$	91,904	$	87,482
Operating expenses (excluding depreciation and amortization presented below)		$	3,828	$	4,608
Segment EBITDA		$	25,274	$	21,954


Operating Information
	Three Months Ended March 31,
		2024		2023
East Texas - Tyler Refinery sales volumes (average bpd) (1)		66,475		34,816
Big Spring marketing throughputs (average bpd)		76,615		78,380
West Texas marketing throughputs (average bpd)		9,976		8,696
West Texas marketing gross margin per barrel		$	2.15	$	5.47
Terminalling throughputs (average bpd) (2)		136,614		93,305

(1) Excludes jet fuel and petroleum coke.

(2) Consists of terminalling throughputs at our Tyler, Big Spring, Big Sandy and Mount Pleasant, Texas terminals, our El Dorado and North Little Rock, Arkansas terminals and our Memphis and Nashville, Tennessee terminals.

Operational comparison of the three months ended March 31, 2024 compared to the three months ended March 31, 2023:

Net Revenues

Q1 2024 vs. Q1 2023

Net revenues for the wholesale marketing and terminalling segment increased by $7.0 million, or 6.2%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily driven by the following:

Such increases were partially offset by the following:

•decreased revenue of $0.6 million in our West Texas marketing operations primarily driven by decrease in RIN prices.

The following charts show summaries of the average sales prices per gallon of gasoline and diesel and refined products volume impacting our West Texas operations for the three months ended March 31, 2024 and 2023.


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Management's Discussion and Analysis

Cost of Materials and Other

Q1 2024 vs. Q1 2023

Cost of materials and other for the wholesale marketing and terminalling segment increased by $4.4 million, or 5.1%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily driven by the following:

•increased costs of materials and other of $1.8 million in our West Texas marketing operations primarily driven by increases in the average volumes of gasoline and diesel sold, partially offset by decreased costs per gallon:

◦the volumes of gasoline and diesel sold increased by 4.0 million and 0.5 million gallons, respectively;

◦the average cost per gallon of gasoline and diesel sold decreased by $0.28 per gallon and $0.22 per gallon, respectively.

The following chart shows a summary of the average prices per gallon of gasoline and diesel purchased in our West Texas operations for the three months ended March 31, 2024 and 2023. Refer to the Refined Products Volume - Gallons chart above for a summary of volumes impacting our West Texas operations.

Operating Expenses

Q1 2024 vs. Q1 2023

Operating expenses for the wholesale marketing and terminalling segment decreased by $0.8 million, or 16.9%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

EBITDA

Q1 2024 vs. Q1 2023

EBITDA increased by $3.3 million, or 15.1%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily driven by the following:

•increases in terminalling and marketing revenue, partially offset by lower wholesale margins.


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Management's Discussion and Analysis

Storage and Transportation Segment

The following tables and discussion present the results of operations and certain operating statistics of the storage and transportation segment for the three months ended March 31, 2024 and 2023:


Storage and Transportation
	Three Months Ended March 31,
		2024		2023



Net revenues		$	36,922	$	38,784
Cost of materials and other		$	13,893	$	18,604
Operating expenses (excluding depreciation and amortization presented below)		$	5,021	$	5,560
Segment EBITDA		$	18,127	$	13,422

Operation comparison of the three months ended March 31, 2024 compared to the three months ended March 31, 2023

Net Revenues

Q1 2024 vs. Q1 2023

Net revenues for the storage and transportation segment decreased by $1.9 million, or 4.8%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Cost of Materials and Other

Q1 2024 vs. Q1 2023

Cost of materials and other for the storage and transportation segment decreased by $4.7 million, or 25.3%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

Operating Expenses

Q1 2024 vs. Q1 2023

Operating expenses for the storage and transportation segment decreased by $0.5 million, or 9.7%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

EBITDA

Q1 2024 vs. Q1 2023

EBITDA increased by $4.7 million, or 35.1%, in the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily driven by a decrease in operating costs.


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Management's Discussion and Analysis

Investments in Pipeline Joint Ventures Segment

The Investments in Pipeline Joint Ventures segment relates to strategic Joint Venture investments, accounted for as equity method investments, to support the Delek Holdings operations in terms of offering connection to takeaway pipelines, alternative crude supply sources and flow of high quality crude oil to the Delek Holdings refining system. As a result, Delek Holdings is a major shipper and customer on certain of the Joint Venture pipelines, with minimum volume commitment ("MVC") agreements, which cushion the Joint Venture entities during periods of low activity. The other Joint Venture owners are usually major shippers on the pipelines resulting in a majority of the revenue of the Joint Venture entities coming from MVC agreements with related entities.

Investments in pipeline joint ventures segment include the Partnership's joint ventures investments described in Note 7 of our condensed consolidated financial statements in Item 1. Financial Statements, of this Quarterly Report on Form 10-Q.

Refer to Consolidated Results of Operations above for details and discussion of the investments in pipeline joint ventures segment for the three months ended March 31, 2024.

Liquidity and Capital Resources

Sources of Capital

We consider the following when assessing our liquidity and capital resources:


(i) cash generated from operations;			(iv) potential issuance of additional debt securities; and
(ii) borrowings under our revolving credit facility;			(v) potential sale of assets.
(iii) potential issuance of additional equity;

At March 31, 2024, our total liquidity amounted to $594.5 million comprised of $584.8 million in unused credit commitments under our third-party revolving credit facility (as discussed in Note 5 of our condensed consolidated financial statements in Item 1. Financial Statements, of this Quarterly Report on Form 10-Q), and $9.7 million in cash and cash equivalents. Historically, we have generated adequate cash from operations to fund ongoing working capital requirements, pay quarterly cash distributions and operational capital expenditures, and we expect the same to continue in the foreseeable future. Other funding sources, including the issuance of additional debt securities, have been utilized to fund growth capital projects such as dropdowns and other acquisitions. In addition, we have historically been able to source funding at rates that reflect market conditions, our financial position and our credit ratings. We continue to monitor market conditions, our financial position and our credit ratings and expect future funding sources to be at rates that are sustainable and profitable for the Partnership. However, there can be no assurances regarding the availability of any future financings or additional credit facilities or whether such financings or additional credit facilities can be made available on terms that are acceptable to us. We believe we have sufficient financial resources from the above sources to meet our funding requirements in the next 12 months, including working capital requirements, quarterly cash distributions and capital expenditures. Nevertheless, our ability to satisfy working capital requirements, to service our debt obligations, to fund planned capital expenditures, or to pay distributions will depend upon future operating performance, which will be affected by prevailing economic conditions in the oil industry and other financial and business factors, including crude oil prices, some of which are beyond our control. We continuously review our liquidity and capital resources. If market conditions were to change, for instance due to a significant decline in crude oil prices, and our revenue was reduced significantly or operating costs were to increase significantly, our cash flows and liquidity could be reduced. Additionally, it could cause the rating agencies to lower our credit ratings. There are no ratings triggers that would accelerate the maturity of any borrowings under our debt agreements. Refer to the Business Overview section of this MD&A for a complete discussion of the uncertainties identified by management and the actions taken to respond to these uncertainties. We believe we were in compliance with the covenants in all our debt facilities as of March 31, 2024.

Cash Distributions

On April 25, 2024, the board of directors of our general partner declared a distribution of $1.070 per common unit (the "Distribution"), which equates to approximately $50.5 million per quarter, or approximately $202,056 per year, based on the number of common units outstanding as of May 8, 2024. The Distribution will be paid on May 15, 2024 to common unitholders of record on May 8, 2024 and represents a 4.4% increase over the first quarter 2023 distribution. This increase in the distribution is consistent with our intent to maintain an attractive distribution growth profile over the long term. Although our Partnership Agreement requires that we distribute all of our available cash each quarter, we do not otherwise have a legal obligation to distribute any particular amount per common unit.


33 \|

Management's Discussion and Analysis

The table below summarizes the quarterly distributions related to our quarterly financial results:


Quarter Ended	Total Quarterly Distribution Per Limited Partner Unit	Total Cash Distribution (in thousands)
March 31, 2023	$1.025	$44,664
June 30, 2023	$1.035	$45,112
September 30, 2023	$1.045	$45,558
December 31, 2023	$1.055	$46,010
March 31, 2024	$1.070	$50,514

Equity Offering

Cash Flows

The following table sets forth a summary of our condensed consolidated cash flows for the three months ended March 31, 2024 and 2023 (in thousands):


	Three Months Ended March 31,
	2024		2023
Net cash provided by operating activities	$	43,858	$	29,190
Net cash used in investing activities	(9,861)		(26,979)
Net cash (used in) provided by financing activities	(28,080)		783
Net increase in cash and cash equivalents	$	5,917	$	2,994

Operating Activities

Net cash provided by operating activities increased by $14.7 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The cash receipts from customer activities decreased by $9.6 million and cash payments to suppliers and for allocations to Delek Holdings for salaries decreased by $32.3 million. In addition, cash dividends received from equity method investments increased by $0.3 million and cash paid for debt interest increased by $8.3 million.

Investing Activities

Net cash used in investing activities decreased by $17.1 million during the three months ended March 31, 2024 compared to the three months ended March 31, 2023, primarily due to decrease of $16.6 million in purchases of property, plant and equipment primarily associated with growth projects in our gathering and processing segment, and a $0.7 million increase in distributions from equity method investments.

Financing Activities

Net cash provided by financing activities decreased by $28.9 million for the three months ended March 31, 2024 compared to the three months ended March 31, 2023. This decrease was primarily driven by net payments under our revolving credit facility which increased by $265.4 million due to paydown in conjunction with the issuance of the 2029 Notes. Additionally contributing to this decrease was an increase in deferred financing costs paid of $10.5 million associated with the 2029 Note issuance and a $6.2 million increase in payments on other financing arrangements. Partially offsetting these decreases was an increase of $132.3 million due to proceeds from the equity issuance in March 2024, and an increase of $122.5 million in net proceeds from term debt primarily due to the issuance of the 2029 Notes.

Debt Overview

As of March 31, 2024, we had total indebtedness of $1,615.2 million. The decrease of $96.6 million in our long-term debt balance compared to the balance at December 31, 2023 resulted from the payments under the DKL Credit Facility and the 2025 Notes, which was partially offset by the issuance of the 2029 Notes during the three months ended March 31, 2024. As of March 31, 2024, our total indebtedness consisted of:

•An aggregate principal amount of $565.2 million under the DKL Revolving Facility, due on October 13, 2027, with an average borrowing rate of 8.18%.

•An aggregate principal amount of $400.0 million, under the 2028 Notes (7.125% senior notes), due in 2028, with an effective interest rate of 7.39%.

•An aggregate principal amount of $650.0 million, under the 2029 Notes (8.625% senior notes), due in 2029, with an effective interest rate of 8.81%.


34 \|

Management's Discussion and Analysis

On April 17, 2024, the Issuers sold $200.0 million in aggregate principal amount of additional 8.625% senior notes due 2029 at 101.25% (the "Additional 2029 Notes"). The Additional 2029 Notes were issued under the same indenture as the 2029 Notes and formed a part of the same series of notes as the 2029 Notes. The net proceeds were used to repay a portion of the outstanding borrowings under the DKL Revolving Facility.

We believe we were in compliance with the covenants in all debt facilities as of March 31, 2024. See Note 5 of our condensed consolidated financial statements in Item 1. Financial Statements, of this Quarterly Report on Form 10-Q for a complete discussion of our third-party indebtedness.

Agreements Governing Certain Indebtedness of Delek Holdings

Delek Holdings' level of indebtedness, the terms of its borrowings and any future credit ratings could adversely affect our ability to grow our business, our ability to make cash distributions to our unitholders and our credit profile. Our current and future credit ratings may also be affected by Delek Holdings' level of indebtedness, financial performance and credit ratings.

Capital Spending

A key component of our long-term strategy is our capital expenditure program, which includes strategic consideration and planning for the timing and extent of regulatory maintenance, sustaining maintenance, and growth capital projects. These categories are described below:

•Regulatory maintenance projects in the gathering and processing segment are those expenditures expected to be spent on certain of our pipelines to maintain their operational integrity pursuant to applicable environmental and other regulatory requirements. Regulatory projects in the wholesale marketing and terminalling segment relates to scheduled maintenance and improvements on our terminalling tanks and racks at certain of our terminals in order to maintain environmental and other regulatory compliance. These expenditures have historically been and will continue to be financed through cash generated from operations.

•Sustaining capital expenditures represent capitalizable expenditures for the addition or improvement to, or the replacement of, our capital assets, and for the acquisition of existing, or the construction or development of new, capital assets made to maintain our long-term operating income or operating capacity. Examples of sustaining capital expenditures are expenditures for the repair, refurbishment and replacement of pipelines, tanks and terminals, to maintain equipment reliability, integrity and safety and to maintain compliance with environmental laws and regulations. Delek Holdings has agreed to reimburse us with respect to certain assets it has transferred to us pursuant to the terms of the Omnibus Agreement (as defined in Note 2 to our accompanying condensed consolidated financial statements). When not provided for under reimbursement agreements, such activities are generally funded by cash generated from operations.

•Growth projects include those projects that do not fall into one of the two categories above, and could include committed expansion projects under contracts with customers as well as other incremental growth projects, but are generally expected to produce incremental cash flows in accordance with our internal return on invested capital policy. Depending on the magnitude, funding for such projects may include cash generated from operations, borrowings under existing credit facilities, or issuances of additional debt or equity securities.


35 \|

Management's Discussion and Analysis

The following table summarizes our actual capital expenditures, including any material capital expenditure payments made or forecasted to be made in advance of receipt of goods and materials, for the three months ended March 31, 2024:


(in thousands)	Full Year 2024 Forecast		Three Months Ended March 31, 2024
Gathering and Processing
Regulatory	$	750	$	—
Sustaining	3,900		837
Growth	49,500		13,886
Gathering and Processing Segment Total	$	54,150	$	14,723
Wholesale Marketing and Terminalling
Regulatory	$	3,300	$	(72)
Sustaining	2,379		(12)
Growth	—		—
Wholesale Marketing and Terminalling Segment Total	$	5,679	$	(84)
Storage and Transportation
Regulatory	$	1,500	$	—
Sustaining	8,500		526
Growth	—		—
Storage and Transportation Segment Total	$	10,000	$	526
Total Capital Spending	$	69,829	$	15,165

The amount of our capital expenditure forecast is subject to change due to unanticipated increases in the cost, scope and completion time for our capital projects. For example, we may experience increases in the cost of and/or timing to obtain necessary equipment required for our continued compliance with government regulations or to complete improvement projects. Additionally, the scope and cost of employee or contractor labor expense related to installation of that equipment could increase from our projections

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements through the date of the filing of this Quarterly Report on Form 10-Q.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Impact of Changing Prices

Our revenues and cash flows, as well as estimates of future cash flows, are sensitive to changes in commodity prices. Shifts in the cost of crude oil, natural gas, NGLs, refined products and ethanol and related selling prices of these products can generate changes in our operating margins.

Interest Rate Risk

Debt that we incur under the DKL Credit Facility bears interest at floating rates and will expose us to interest rate risk. The outstanding floating rate borrowings totaled approximately $565.2 million as of March 31, 2024. The annualized impact of a hypothetical one percent change in interest rates on our floating rate debt outstanding as of March 31, 2024 would be to change interest expense by approximately $5.7 million.

Inflation

Inflationary factors, such as increases in the costs of our inputs, operating expenses, and interest rates may adversely affect our operating results. In addition, current or future governmental policies may increase or decrease the risk of inflation, which could further increase costs and may have an adverse effect on our ability to maintain current levels of gross margin and operating expenses as a percentage of sales if the prices at which we are able to sell our products and services do not increase in line with increases in costs.


36 \|

Management's Discussion and Analysis

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to provide reasonable assurance that the information that we are required to disclose in reports we file under the Exchange Act is accumulated and appropriately communicated to management. We carried out an evaluation required by Rule 13a-15(b) of the Exchange Act, under the supervision and with the participation of our management, including the Principal Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures at the end of the reporting period. Based on that evaluation, the Principal Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the reporting period.

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that occurred during the first quarter of 2024 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.


37 \|

Other Information

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

In the ordinary conduct of our business, we are from time to time subject to lawsuits, investigations and claims, including, environmental claims and employee-related matters. Although we cannot predict with certainty the ultimate resolution of lawsuits, investigations and claims asserted against us, including civil penalties or other enforcement actions, we do not believe that any currently pending legal proceeding or proceedings to which we are a party will have a material adverse effect on our business, financial condition or results of operations. See Note 9 to our accompanying condensed consolidated financial statements, which is incorporated by reference in this Item 1, for additional information.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors identified in the Partnership’s fiscal 2023 Annual Report on Form 10-K.

ITEM 5. OTHER INFORMATION

Rule 10b5-1 Trading Plans

During the quarter ended March 31, 2024, none of our directors or officers (as defined in Rule 16a-1 under the Exchange Act) adopted, modified or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 105b-1 trading arrangement" (as those terms are defined in Item 408 of Regulation S-K).

Related Party Revolving Credit Facility Termination


38 \|

Legal Proceedings & Disclosures

ITEM 6. EXHIBITS


Exhibit No.		Description
4.1		Indenture, dated as of March 13, 2024, among the Partnership, Delek Logistics Finance Corp., the Guarantors named therein and U.S. Bank Trust Company, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Partnership's Form 8-K filed on March 13, 2024, SEC File No. 001-35721).
4.2		Form of 8.625% Senior Note due 2029 (included as Exhibit A in Exhibit 4.1) (incorporated by reference to Exhibit 4.2 to the Partnership's Form 8-K filed on March 13, 2024, SEC File No. 001-35721).
10.1		Fourth Amendment to the Fourth Amended and Restated Senior Secured Revolving Credit Facility, dated March 29, 2024, by and among the Partnership, Fifth Third Bank, National Association, as administrative agent; a syndicate of lenders; Fifth Third, BofA Securities Inc., PNC Bank Capital Markets LLC, MUFG Bank, Ltd., Wells Fargo Bank, N.A., Citizens Bank, N.A. and Royal Bank of Canada, as co-syndication agents; and Barclays Bank PLC, U.S. Bank National Association, Regions Bank and Truist Bank as co-documentation agents (incorporated by reference to Exhibit 1.01 to the Partnership’s Form 8-K filed on April 2, 2024).
31.1	#	Certification of Delek Logistics GP, LLC's Principal Executive Officer pursuant to Rule 13a-14(a)/15(d)-14(a) under the Securities Exchange Act of 1934, as amended.
31.2	#	Certification of Delek Logistics GP, LLC's Chief Financial Officer pursuant to Rule 13a-14(a)/15(d)-14(a) under the Securities Exchange Act of 1934, as amended.
32.1	##	Certification of Delek Logistics GP, LLC's Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	##	Certification of Delek Logistics GP, LLC's Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101		The following materials from Delek Logistics Partners, LP's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (Unaudited), (ii) Condensed Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2024 and 2023 (Unaudited), (iii) Condensed Consolidated Statement of Partners' Equity (Deficit) for the three months ended March 31, 2024 and 2023 (Unaudited), (iv) Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (Unaudited), and (v) Notes to Condensed Consolidated Financial Statements (Unaudited).
104		The cover page from Delek Logistics Partners, LP's Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 has been formatted in Inline XBRL.


#						Filed herewith
##						Furnished herewith


39 \|

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Delek Logistics Partners, LP

By: Delek Logistics GP, LLC

Its General Partner

By: /s/ Avigal Soreq

Avigal Soreq

President

(Principal Executive Officer)

By: /s/ Reuven Spiegel

Reuven Spiegel

Director, Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

By: /s/ Robert Wright

Robert Wright

Senior Vice President, Deputy Chief Financial Officer

(Principal Accounting Officer)

Dated: May 8, 2024


40 \|

EXHIBIT 31.1

Certification by Principal Executive Officer pursuant to

Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934,

As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Avigal Soreq, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Delek Logistics Partners, LP;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


By:			/s/Avigal Soreq
			Avigal Soreq,
			President (Principal Executive Officer) of Delek Logistics GP, LLC (the general partner of Delek Logistics Partners, LP)

Dated: May 8, 2024

EXHIBIT 31.2

Certification by Chief Financial Officer pursuant to

Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934,

As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Reuven Spiegel, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Delek Logistics Partners, LP;

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


By:			/s/ Reuven Spiegel
			Reuven Spiegel,
			Executive Vice President and Chief Financial Officer (Principal Financial Officer) of Delek Logistics GP, LLC (the general partner of Delek Logistics Partners, LP)

Dated: May 8, 2024

EXHIBIT 32.1

Certification Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report of Delek Logistics Partners, LP (the “Partnership”) on Form 10-Q for the quarterly period ended March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Avigal Soreq, President of Delek Logistics GP, LLC, the general partner of the Partnership, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, and to the best of my knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.


By:			/s/ Avigal Soreq
			Avigal Soreq,
			President (Principal Executive Officer) of Delek Logistics GP, LLC (the general partner of Delek Logistics Partners, LP)

Dated: May 8, 2024

A signed original of this written statement required by Section 906 has been provided to the Partnership and will be retained and furnished to the Securities and Exchange Commission or its staff upon request.

EXHIBIT 32.2

Certification Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report of Delek Logistics Partners, LP (the “Partnership”) on Form 10-Q for quarterly period ended March 31, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Reuven Spiegel, Executive Vice President and Chief Financial Officer of Delek Logistics GP, LLC, the general partner of the Partnership, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, and to the best of my knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.


By:			/s/ Reuven Spiegel
			Reuven Spiegel,
			Executive Vice President and Chief Financial Officer (Principal Financial Officer) of Delek Logistics GP, LLC (the general partner of Delek Logistics Partners, LP)

Dated: May 8, 2024

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2024	May 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-35721
Entity Registrant Name	DELEK LOGISTICS PARTNERS, LP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-5379027
Entity Address, Address Line One	310 Seven Springs Way
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Brentwood
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37027
City Area Code	615
Local Phone Number	771-6701
Title of 12(b) Security	Common Units Representing Limited Partnership Interests
Trading Symbol	DKL
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Common Stock, Shares, Outstanding		47,216,050
Entity Central Index Key	0001552797
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 9,672	$ 3,755
Inventory	1,655	2,264
Other current assets	615	676
Total current assets	105,523	76,269
Property, plant and equipment:
Property, plant and equipment	1,336,053	1,320,510
Less: accumulated depreciation	(406,009)	(384,359)
Property, plant and equipment, net	930,044	936,151
Equity method investments	238,185	241,337
Rights-of-way, net	60,141	59,536
Goodwill	12,203	12,203
Operating lease right-of-use assets	17,641	19,043
Other non-current assets	13,471	14,216
Total assets	1,654,371	1,642,246
Current liabilities:
Current portion of long-term debt	0	30,000
Interest payable	12,710	5,805
Excise and other taxes payable	7,638	10,321
Current portion of operating lease liabilities	6,442	6,697
Accrued expenses and other current liabilities	4,098	11,477
Total current liabilities	57,201	90,590
Non-current liabilities:
Long-term debt, net of current portion	1,601,226	1,673,789
Operating lease liabilities, net of current portion	7,367	8,335
Asset retirement obligations	10,225	10,038
Other non-current liabilities	20,819	21,363
Total non-current liabilities	1,639,637	1,713,525
Equity (Deficit):
Total equity (deficit)	(42,467)	(161,869)
Total liabilities and deficit	1,654,371	1,642,246
Third Party
Current assets:
Accounts receivable	56,993	41,131
Current liabilities:
Accounts payable	26,313	26,290
Affiliated Entity
Current assets:
Accounts receivable	36,588	28,443
Common- Public \| Limited Partner
Equity (Deficit):
Total equity (deficit)	290,051	160,402
Common- Delek \| Limited Partner
Equity (Deficit):
Total equity (deficit)	(332,518)	(322,271)
Customer relationships
Property, plant and equipment:
Intangibles, net	176,811	181,336
Marketing contract
Property, plant and equipment:
Intangibles, net	$ 100,352	$ 102,155

Condensed Consolidated Balance Sheets (Parenthetical) - Limited Partner - shares	Mar. 31, 2024	Dec. 31, 2023
Common - Public
Common unitholders, issued (in units)	12,898,253	9,299,763
Common unitholders, outstanding (in units)	12,898,253	9,299,763
Common - Delek Holdings
Common unitholders, issued (in units)	34,311,278	34,311,278
Common unitholders, outstanding (in units)	34,311,278	34,311,278

Condensed Consolidated Statements of Income and Comprehensive Income - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2024

Mar. 31, 2023

Condensed Consolidated Statements of Partners' Equity (Deficit) - USD ($) $ in Thousands	Total	Limited Partner	Limited Partner Common - Public	Limited Partner Common - Delek Holdings
Beginning balance at Dec. 31, 2022	$ (110,700)		$ 172,119	$ (282,819)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash distributions	(44,440)		(9,442)	(34,998)
Net income attributable to partners	37,367	$ 37,367	7,940	29,427
Other	351		(95)	446
Ending balance at Mar. 31, 2023	(117,422)		170,522	(287,944)
Beginning balance at Dec. 31, 2023	(161,869)		160,402	(322,271)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash distributions	(46,210)		(10,012)	(36,198)
Net income attributable to partners	32,648	$ 32,648	7,404	25,244
Issuance of units	132,327		132,327	0
Other	637		(70)	707
Ending balance at Mar. 31, 2024	$ (42,467)		$ 290,051	$ (332,518)

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 32,648	$ 37,367
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	26,495	21,105
Non-cash lease expense	1,939	2,200
Amortization of marketing contract intangible	1,803	1,803
Amortization of deferred revenue	(572)	(444)
Amortization of deferred financing costs and debt discount	1,250	1,127
Income from equity method investments	(8,490)	(6,316)
Dividends from equity method investments	9,509	9,238
Loss on extinguishment of debt	3,571	0
Other non-cash adjustments	1,492	780
Changes in assets and liabilities:
Accounts receivable	(15,862)	2,165
Inventories and other current assets	670	(1,482)
Accounts payable and other current liabilities	(2,359)	(36,430)
Accounts receivable/payable to related parties	(8,145)	(1,578)
Non-current assets and liabilities, net	(91)	(345)
Net cash provided by operating activities	43,858	29,190
Cash flows from investing activities:
Purchases of property, plant and equipment	(11,255)	(27,837)
Proceeds from sales of property, plant and equipment	42	0
Purchases of intangible assets	(781)	(582)
Distributions from equity method investments	2,133	1,440
Net cash used in investing activities	(9,861)	(26,979)
Cash flows from financing activities:
Distributions to common unitholders - public	(10,012)	(9,442)
Distributions to common unitholders - Delek Holdings	(36,198)	(34,998)
Proceeds from term debt	650,000	0
Payments on term debt	(531,250)	(3,750)
Proceeds from revolving facility	184,900	143,500
Payments on revolving facility	(400,200)	(93,400)
Proceeds from issuance of units	132,327	0
Payments on other financing agreements	(6,214)	0
Deferred financing costs paid	(10,946)	(400)
Other financing activities	(487)	(727)
Net cash (used in) provided by financing activities	(28,080)	783
Net increase in cash and cash equivalents	5,917	2,994
Cash and cash equivalents at the beginning of the period	3,755	7,970
Cash and cash equivalents at the end of the period	9,672	10,964
Cash paid during the period for:
Interest	28,503	20,210
Non-cash investing activities:
Increase in accrued capital expenditures	3,910	8,258
Non-cash financing activities:
Non-cash lease liability arising from obtaining right of use assets during the period	$ 537	$ 3,456

Organization and Basis of Presentation	3 Months Ended
Organization and Basis of Presentation	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Basis of Presentation	Organization and Basis of Presentation As used in this report, the terms "Delek Logistics Partners, LP," the "Partnership," "we," "us," or "our" may refer to Delek Logistics Partners, LP, one or more of its consolidated subsidiaries or all of them taken as a whole. The Partnership is a Delaware limited partnership formed in April 2012 by Delek US Holdings, Inc. ("Delek Holdings") and its subsidiary Delek Logistics GP, LLC, our general partner (our "general partner"). The Partnership provides gathering, pipeline and other transportation services primarily for crude oil and natural gas customers, storage, wholesale marketing and terminalling services primarily for intermediate and refined product customers, and water disposal and recycling services through its owned assets and joint ventures located primarily in the Permian Basin (including the Delaware sub-basin) and other select areas in the Gulf Coast region. A majority of our existing assets are both integral to and dependent upon the success of Delek Holdings' refining operations, as many of our assets are contracted exclusively to Delek Holdings in support of its Tyler, Texas (the "Tyler Refinery"), El Dorado, Arkansas (the "El Dorado Refinery") and Big Spring, Texas (the "Big Spring Refinery"). Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP") have been condensed or omitted, although management believes that the disclosures herein are adequate to make the financial information presented not misleading. Our unaudited condensed consolidated financial statements have been prepared in conformity with GAAP applied on a consistent basis with those of the annual audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 (our "Annual Report on Form 10-K"), filed with the U.S. Securities and Exchange Commission (the "SEC") on February 28, 2024 and in accordance with the rules and regulations of the SEC. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2023 included in our Annual Report on Form 10-K. All adjustments necessary for a fair presentation of the financial position and the results of operations for the interim periods presented have been included. All intercompany accounts and transactions have been eliminated. Such intercompany transactions do not include those with Delek Holdings or our general partner, which are presented as related parties in these accompanying condensed consolidated financial statements. All adjustments are of a normal, recurring nature. Operating results for the interim period should not be viewed as representative of results that may be expected for any future interim period or for the full year. Accounting Pronouncements Not Yet Adopted ASU 2023-06, Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative In October 2023, the FASB issued ASU 2023-06 Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative ("ASU 2023-06"). The main provision of ASU 2023-06 is to clarify or improve disclosure and presentation requirements of a variety of topics, which will allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the FASB accounting standard codification with the SEC's regulations. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. The Partnership is currently evaluating the provisions of the amendments and the impact on its future condensed consolidated statements, but does not currently expect adopting this new guidance will have a material impact on its condensed consolidated financial statements and related disclosures.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation In the ordinary conduct of our business, we are from time to time subject to lawsuits, investigations and claims, including environmental claims and employee-related matters. Although we cannot predict with certainty the ultimate resolution of lawsuits, investigations and claims asserted against us, including civil penalties or other enforcement actions, we do not believe that any currently pending legal proceeding or proceedings to which we are a party will have a material adverse effect on our financial statements. Environmental, Health and Safety We are subject to extensive federal, state and local environmental and safety laws and regulations enforced by various agencies, including the Environmental Protection Agency (the "EPA"), the United States Department of Transportation, the Occupational Safety and Health Administration, as well as numerous state, regional and local environmental, safety and pipeline agencies. These laws and regulations govern the discharge of materials into the environment, waste management practices and pollution prevention measures, as well as the safe operation of our pipelines and the safety of our workers and the public. Numerous permits or other authorizations are required under these laws and regulations for the operation of our terminals, pipelines, saltwells, trucks and related operations, and may be subject to revocation, modification and renewal. These laws and permits raise potential exposure to future claims and lawsuits involving environmental and safety matters, which could include soil, surface water and groundwater contamination, air pollution, personal injury and property damage allegedly caused by substances which we may have handled, used, released or disposed of, transported, or that relate to pre-existing conditions for which we may have assumed responsibility. We believe that our current operations are in substantial compliance with existing environmental and safety requirements. However, there have been and we expect that there will continue to be ongoing discussions about environmental and safety matters between us and federal and state authorities, including the receipt and response to notices of violations, citations and other enforcement actions, some of which have resulted or may result in changes to operating procedures and in capital expenditures. While it is often difficult to quantify future environmental or safety related expenditures, we anticipate that continuing capital investments and changes in operating procedures will be required to comply with existing and new requirements, as well as evolving interpretations and enforcement of existing laws and regulations. Releases of hydrocarbons or hazardous substances into the environment could, to the extent the event is not insured, or is not a reimbursable event under the Omnibus Agreement, subject us to substantial expenses, including costs to respond to, contain and remediate a release, to comply with applicable laws and regulations and to resolve claims by governmental agencies or other persons for personal injury, property damage, response costs, or natural resources damages.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Distribution Declaration On April 25, 2024, our general partner's board of directors declared a quarterly cash distribution of $1.070 per unit, payable on May 15, 2024, to unitholders of record on May 8, 2024

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income	$ 32,648	$ 37,367

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Related Party Transactions - Narrative (Details) - Affiliated Entity - USD ($) $ in Millions		3 Months Ended
	Nov. 07, 2012	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2023
DPG Management Agreement, Operating Service And Construction Fee Paid To Partnership
Related Party Transaction [Line Items]
Fees paid to the Partnership		$ 0.4	$ 0.4
Omnibus Agreement
Related Party Transaction [Line Items]
Obligation to pay annual fee	$ 4.4
Omnibus Agreement \| Delek US
Related Party Transaction [Line Items]
Receivable from related parties		0.0			$ 0.0
Omnibus Agreement \| Delek US \| Operating and maintenance expenses
Related Party Transaction [Line Items]
Recovery of direct costs		0.0	0.0
Omnibus Agreement \| Delek US \| Other Noncurrent Liabilities
Related Party Transaction [Line Items]
Reimbursement of capital expenditures by Delek Holdings		$ 0.0	$ 0.0	$ 0.0
Minimum
Related Party Transaction [Line Items]
Initial term of agreement		5 years
Maximum
Related Party Transaction [Line Items]
Initial term of agreement		10 years

Related Party Transactions - Quarterly Cash Distributions Paid (Details) - USD ($) $ in Thousands					3 Months Ended
	May 15, 2024	Feb. 12, 2024	May 15, 2023	Feb. 09, 2023	Mar. 31, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Related Party Transaction [Line Items]
Distribution made to limited partner, cash distributions paid					$ 50,514	$ 46,010	$ 45,558	$ 45,112	$ 44,664
Affiliated Entity
Related Party Transaction [Line Items]
Distribution made to limited partner, cash distributions paid		$ 36,198	$ 35,169	$ 34,998	$ 72,911				$ 70,167
Affiliated Entity \| Subsequent Event
Related Party Transaction [Line Items]
Distribution made to limited partner, cash distributions paid	$ 36,713

Revenues - Narrative (Details) $ in Thousands	3 Months Ended
Revenues - Narrative (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation	$ 1,060,097
Minimum \| Affiliated Entity
Disaggregation of Revenue [Line Items]
Initial term of agreement	5 years
Maximum \| Affiliated Entity
Disaggregation of Revenue [Line Items]
Initial term of agreement	10 years

Revenues - Remaining Performance Obligation (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 1,060,097
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 157,672
Revenue, remaining performance obligation, expected timing of satisfaction	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 210,230
Revenue, remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 202,754
Revenue, remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 184,975
Revenue, remaining performance obligation, expected timing of satisfaction	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation	$ 304,466
Revenue, remaining performance obligation, expected timing of satisfaction

Net Income per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Net income per unit [Line Items]
Net income attributable to partners	$ 32,648	$ 37,367
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Weighted average limited partner units outstanding, basic (in units)	44,406,356	43,569,963
Dilutive effect of unvested phantom units (in units)	16,461	15,334
Weighted average limited partner units outstanding, diluted (in units)	44,422,817	43,585,297
Net income per limited partner unit:
Basic (in dollars per unit)	$ 0.74	$ 0.86
Diluted (in dollars per unit)	$ 0.73	$ 0.86
Common units excluded from computation of earnings per share (in units)	42,315	22,632
Limited Partner
Net income per unit [Line Items]
Net income attributable to partners	$ 32,648	$ 37,367
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Weighted average limited partner units outstanding, basic (in units)	44,406,356	43,569,963
Net income per limited partner unit:
Basic (in dollars per unit)	$ 0.74	$ 0.86
Diluted (in dollars per unit)	$ 0.73	$ 0.86

Long-Term Obligations - Schedule of Outstanding Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Principal amount of long-term debt	$ 1,615,200	$ 1,711,750
Total debt, net of unamortized discount and deferred financing costs	1,601,226	1,703,789
Less: Current portion of long-term debt and notes payable	0	30,000
Long-term debt, net of current portion	1,601,226	1,673,789
Senior Notes
Debt Instrument [Line Items]
Less: Unamortized discount and deferred financing costs	13,974	7,961
DKL Revolving Facility \| Line of Credit \| Revolving Credit Facility \| Fifth Third Bank
Debt Instrument [Line Items]
Principal amount of long-term debt	565,200	780,500
DKL Term Facility \| Line of Credit
Debt Instrument [Line Items]
Principal amount of long-term debt	0	281,250
2029 Notes \| Senior Notes
Debt Instrument [Line Items]
Principal amount of long-term debt	650,000	0
2028 Notes \| Senior Notes
Debt Instrument [Line Items]
Principal amount of long-term debt	400,000	400,000
2025 Notes \| Senior Notes
Debt Instrument [Line Items]
Principal amount of long-term debt	$ 0	$ 250,000

Long-Term Obligations - DKL Credit Facility (Details) - USD ($) $ in Thousands					3 Months Ended
	Mar. 29, 2024	Mar. 13, 2024	Nov. 06, 2023	Oct. 13, 2022	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Debt Instrument [Line Items]
Loss on extinguishment of debt					$ 3,571	$ 0
DKL Revolver, Senior Secured Revolving Commitment \| Fifth Third Bank \| Line of Credit \| Secured Overnight Financing Rate (SOFR) \| Debt Instrument, Interest Rate Period One
Debt Instrument [Line Items]
Variable rate				0.10%
DKL Revolver, Senior Secured Revolving Commitment \| Fifth Third Bank \| Line of Credit \| Secured Overnight Financing Rate (SOFR) \| Debt Instrument, Interest Rate Period Two
Debt Instrument [Line Items]
Variable rate				0.25%
DKL Revolver, Senior Secured Revolving Commitment \| Fifth Third Bank \| Line of Credit \| Minimum \| Prime Rate
Debt Instrument [Line Items]
Variable rate				1.00%
DKL Revolver, Senior Secured Revolving Commitment \| Fifth Third Bank \| Line of Credit \| Minimum \| Total Leverage Ratio Interest Rate
Debt Instrument [Line Items]
Variable rate				2.00%
DKL Revolver, Senior Secured Revolving Commitment \| Fifth Third Bank \| Line of Credit \| Maximum \| Prime Rate
Debt Instrument [Line Items]
Variable rate				2.00%
DKL Revolver, Senior Secured Revolving Commitment \| Fifth Third Bank \| Line of Credit \| Maximum \| Total Leverage Ratio Interest Rate
Debt Instrument [Line Items]
Variable rate				3.00%
DKL Revolver, Delek Logistics Term Facility \| Fifth Third Bank \| Secured Debt \| Debt Instrument, Interest Rate Period One
Debt Instrument [Line Items]
Variable rate				3.50%
DKL Revolver, Delek Logistics Term Facility \| Fifth Third Bank \| Secured Debt \| Debt Instrument, Interest Rate Period Two
Debt Instrument [Line Items]
Variable rate				4.00%
DKL Revolver, Delek Logistics Term Facility \| Fifth Third Bank \| Secured Debt \| Prime Rate \| Debt Instrument, Interest Rate Period One
Debt Instrument [Line Items]
Variable rate				2.50%
DKL Revolver, Delek Logistics Term Facility \| Fifth Third Bank \| Secured Debt \| Prime Rate \| Debt Instrument, Interest Rate Period Two
Debt Instrument [Line Items]
Variable rate				3.00%
DKL Revolver, Delek Logistics Term Facility \| Fifth Third Bank \| Secured Debt \| Secured Overnight Financing Rate (SOFR) \| Debt Instrument, Interest Rate Period One
Debt Instrument [Line Items]
Variable rate				0.10%
DKL Revolver, Delek Logistics Term Facility \| Fifth Third Bank \| Secured Debt \| Secured Overnight Financing Rate (SOFR) \| Debt Instrument, Interest Rate Period Two
Debt Instrument [Line Items]
Variable rate				0.25%
DKL Term Facility \| Line of Credit
Debt Instrument [Line Items]
Weighted average interest rate							9.46%
Related Party Revolving Credit Facility \| Fifth Third Bank \| Line of Credit \| Secured Overnight Financing Rate (SOFR)
Debt Instrument [Line Items]
Variable rate			3.00%
Revolving Credit Facility \| Fifth Third Bank \| Line of Credit
Debt Instrument [Line Items]
Weighted average interest rate					8.18%		8.46%
Letters of credit					$ 0		$ 0
Revolving Credit Facility \| DKL Revolver, Senior Secured Revolving Commitment \| Fifth Third Bank \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 1,150,000
Revolving Credit Facility \| DKL Revolver, Delek Logistics Term Facility \| Fifth Third Bank \| Secured Debt
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 300,000
Repayments of debt		$ 281,300
Loss on extinguishment of debt					$ 2,100
Revolving Credit Facility \| DKL Revolving Facility \| Fifth Third Bank \| Line of Credit
Debt Instrument [Line Items]
Unused capacity, commitment fee percentage					0.45%
Revolving Credit Facility \| Related Party Revolving Credit Facility \| Fifth Third Bank \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 70,000
Revolving Credit Facility \| Related Party Revolving Credit Facility \| Fifth Third Bank \| Senior Tranche
Debt Instrument [Line Items]
Maximum borrowing capacity			55,000
Revolving Credit Facility \| Related Party Revolving Credit Facility \| Fifth Third Bank \| Subordinated Tranche
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 15,000
Revolving Credit Facility \| Fourth Amendment \| Fifth Third Bank \| Line of Credit
Debt Instrument [Line Items]
Increase in line of credit facility	100,000
US LC Sublimit \| DKL Revolver \| Fifth Third Bank \| Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	146,900
US Swing Line Sublimit \| DKL Revolver \| Fifth Third Bank \| Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 31,900

Long-Term Obligations - Senior Notes (Details) - Senior Notes - USD ($) $ in Millions		3 Months Ended
	Mar. 13, 2024	Mar. 31, 2024	Apr. 17, 2024	Dec. 31, 2023	May 24, 2021	May 31, 2018
2028 Notes
Debt Instrument [Line Items]
Debt instrument, face amount					$ 400.0
Debt instrument, interest rate, stated percentage					7.125%
Effective interest rate		7.39%
2028 Notes \| Level 1
Debt Instrument [Line Items]
Long-term debt, fair value		$ 391.4		$ 380.4
2025 Notes
Debt Instrument [Line Items]
Debt instrument, face amount						$ 250.0
Debt instrument, interest rate, stated percentage						6.75%
Debt issuance costs		1.5
Repayments of debt		$ 156.2
2025 Notes \| Level 1
Debt Instrument [Line Items]
Long-term debt, fair value				$ 248.7
2029 Notes
Debt Instrument [Line Items]
Debt instrument, face amount	$ 650.0
Debt instrument, interest rate, stated percentage	8.625%
Debt instrument, redemption price, percentage of principal amount redeemed	35.00%
Debt issuance costs	$ 10.4
Effective interest rate		8.81%
2029 Notes \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price percentage	108.625%
2029 Notes \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price percentage	104.313%
2029 Notes \| Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price percentage	102.156%
2029 Notes \| Debt Instrument, Redemption, Period Four
Debt Instrument [Line Items]
Redemption price percentage	100.00%
2029 Notes \| Subsequent Event
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage			8.625%
2029 Notes \| Level 1
Debt Instrument [Line Items]
Long-term debt, fair value		$ 664.3
Additional 2029 Notes
Debt Instrument [Line Items]
Redemption price percentage	101.00%
Additional 2029 Notes \| Subsequent Event
Debt Instrument [Line Items]
Debt instrument, face amount			$ 200.0
Debt instrument, premium percentage			1.0125

Equity - Narrative (Details) $ / shares in Units, $ in Millions	Mar. 12, 2024 USD ($) $ / shares shares
Limited Partners' Capital Account [Line Items]
Public offering, offering price (in dollars per share) \| $ / shares	$ 38.50
Public Stock Offering
Limited Partners' Capital Account [Line Items]
Shares issued in public offering (in shares) \| shares	3,584,416
Proceeds from public offering \| $	$ 132.3
Underwriting discounts \| $	$ 5.5
Over-Allotment Option
Limited Partners' Capital Account [Line Items]
Shares issued in public offering (in shares) \| shares	467,532

Equity - Units Rollforward (Details)	3 Months Ended
Equity - Units Rollforward (Details)	Mar. 31, 2024 shares
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance (in units)	43,611,041
Unit-based compensation awards (in units)	14,074
Units issued (in units)	3,584,416
Ending balance (in units)	47,209,531
Units withheld for taxes (in units)	6,711
Delek US Holdings, Inc.
Increase (Decrease) in Partners' Capital [Roll Forward]
Delek's limited partner interest	72.70%
Common - Public \| Limited Partner
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance (in units)	9,299,763
Unit-based compensation awards (in units)	14,074
Units issued (in units)	3,584,416
Ending balance (in units)	12,898,253
Common - Delek Holdings \| Limited Partner
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance (in units)	34,311,278
Unit-based compensation awards (in units)	0
Units issued (in units)	0
Ending balance (in units)	34,311,278

Equity Method Investments - Narrative (Details) bbl / d in Thousands	3 Months Ended
	Mar. 31, 2024 bbl / d jointVenture
Red River
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	33.00%
Throughput capacity \| bbl / d	235
CP LLC And Rangeland Energy
Schedule of Equity Method Investments [Line Items]
Number of joint ventures \| jointVenture	2
CP LLC
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	50.00%
Andeavor Logistics
Schedule of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	33.00%

Equity Method Investments - Schedule of Equity Method Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 238,185	$ 241,337
Red River
Schedule of Equity Method Investments [Line Items]
Equity method investments	140,036	141,091
CP LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	60,254	61,273
Andeavor Logistics
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 37,895	$ 38,973

Segment Data - Narrative (Details)	3 Months Ended
Segment Data - Narrative (Details)	Mar. 31, 2024 segment
Segment Reporting [Abstract]
Number of reportable segments	4

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Subsequent Events (Details) - $ / shares	3 Months Ended
Subsequent Events (Details) - $ / shares	Mar. 31, 2024	Mar. 31, 2023
Subsequent Event [Line Items]
Cash distributions per limited partner unit (in dollars per unit)	$ 1.070	$ 1.025