Delek Logistics Partners, LPDKL
Delek Logistics Partners, LP Revenue Disclosure
Revenues
We generate revenue by charging fees for gathering, transporting, offloading and storing crude oil and natural gas; for storing intermediate products and feed stocks; for water disposal and recycling services; for distributing, transporting and storing refined products; for marketing refined products output of Delek Holdings' Tyler and Big Spring refineries; and for wholesale marketing in the West Texas area. A significant portion of our revenue is derived from long-term commercial agreements with Delek Holdings, which provide for annual fee adjustments for increases or decreases in the CPI, PPI or the FERC index (refer to Note 4 for a more detailed description of these agreements). In addition to the services we provide to Delek Holdings, we also generate substantial revenue from crude oil, natural gas, intermediate and refined products transportation services for, and terminalling and marketing services to, and water disposal and recycling services to third parties primarily in Texas, New Mexico, Tennessee and Arkansas. Certain of these services are provided pursuant to contractual agreements with third parties. Payment terms require customers to pay shortly after delivery and do not contain significant financing components. Delek Holdings, directly or indirectly, accounted for 49.3%, 55.0% and 55.3% of our total revenues for the years ended December 31, 2025, 2024 and 2023, respectively.
The majority of our commercial agreements with Delek Holdings meet the definition of a lease because: (1) performance of the contracts is dependent on specified property, plant or equipment and (2) it is remote that one or more parties other than Delek Holdings will take more than a minor amount of the output associated with the specified property, plant or equipment.
Year Ended December 31, 2025 | |||||||||||||||||||||||
Gathering and Processing | Wholesale Marketing and Terminalling | Storage and Transportation | Consolidated | ||||||||||||||||||||
Service Revenue - Third Party | $ | 76,257 | $ | — | $ | 5,457 | $ | 81,714 | |||||||||||||||
Service Revenue - Affiliate | 13,098 | 29,990 | 59,838 | 102,926 | |||||||||||||||||||
Product Revenue - Third Party | 251,511 | 180,628 | — | 432,139 | |||||||||||||||||||
Product Revenue - Affiliate | 5,144 | 175,512 | — | 180,656 | |||||||||||||||||||
Lease Revenue - Affiliate | 152,087 | 31,505 | 32,296 | 215,888 | |||||||||||||||||||
Total Revenue | $ | 498,097 | $ | 417,635 | $ | 97,591 | $ | 1,013,323 | |||||||||||||||
Year Ended December 31, 2024 | |||||||||||||||||||||||
Gathering and Processing | Wholesale Marketing and Terminalling | Storage and Transportation | Consolidated | ||||||||||||||||||||
Service Revenue - Third Party | $ | 75,353 | $ | — | $ | 8,879 | $ | 84,232 | |||||||||||||||
Service Revenue - Affiliate (1) | 14,111 | 23,857 | 54,869 | 92,837 | |||||||||||||||||||
Product Revenue - Third Party | 108,603 | 230,019 | — | 338,622 | |||||||||||||||||||
Product Revenue - Affiliate | 16,548 | 131,881 | — | 148,429 | |||||||||||||||||||
Lease Revenue - Affiliate | 150,104 | 65,765 | 60,647 | 276,516 | |||||||||||||||||||
Total Revenue | $ | 364,719 | $ | 451,522 | $ | 124,395 | $ | 940,636 | |||||||||||||||
Year ended December 31, 2023 | |||||||||||||||||||||||
Gathering and Processing | Wholesale Marketing and Terminalling | Storage and Transportation | Consolidated | ||||||||||||||||||||
Service Revenue - Third Party | $ | 60,471 | $ | — | $ | 11,329 | $ | 71,800 | |||||||||||||||
Service Revenue - Affiliate (1) | 9,730 | 48,618 | 55,691 | 114,039 | |||||||||||||||||||
Product Revenue - Third Party | 98,102 | 286,704 | — | 384,806 | |||||||||||||||||||
Product Revenue - Affiliate | 15,699 | 122,969 | — | 138,668 | |||||||||||||||||||
Lease Revenue - Affiliate | 187,108 | 47,410 | 76,578 | 311,096 | |||||||||||||||||||
Total Revenue | $ | 371,110 | $ | 505,701 | $ | 143,598 | $ | 1,020,409 | |||||||||||||||
(1) Net of $4.2 million and $7.2 million for the years ended December 31, 2024 and 2023, respectively, related to the marketing contract intangible recorded in the wholesale marketing and terminalling segment. For the year ended December 31, 2025, no amortization was recorded related to this intangible, as the associated agreement was terminated on August 5, 2024.
As of December 31, 2025, we expect to recognize approximately $536.7 million in service 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 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.
Our unfulfilled performance obligations as of December 31, 2025, were as follows (in thousands):
2026 | $ | 134,343 | |||
2027 | 133,522 | ||||
2028 | 88,022 | ||||
2029 | 78,922 | ||||
2030 and thereafter | 101,893 | ||||
Total expected revenue on remaining performance obligations | $ | 536,702 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Mar 1, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.