8/6/2025

speaker
Robert
Chief Financial Officer

to differ are included in our SEC filings. The company assumes no obligation to update any forward-looking statements. I will now turn the call over to Abigail for opening remarks. Abigail? Thank you, Robert.

speaker
Avigal Sodek
President & CEO

The electric logistics partner had another record quarter. We reported approximately $120 million in quarterly adjusted EBITDA. DKL is on track to deliver its full EBITDA guidance of $480 to $520 million. Delac Logistics continues to make substantial progress in improving its position as a premier pool service, crude, natural gas, and water provider in the most prolific areas of the Permian Basin. During the quarter, we successfully completed the commissioning of the new LIBI plant. We are very excited about the opportunities this expansion has opened for us and expect to fill the plant to capacity in the second half of 2025. This expansion and our ongoing efforts on acid gas injection and sour gas handling capabilities will further improve our natural gas offering in the Delaware Basin. I'm also very pleased with our crude and water gathering operations. Both DPG and DDG crude gathering operations have started the second half of the year strong with both showing significant rise in volumes. We look forward to continue building on its strength through the remainder of 2025 and beyond. Between our two water acquisitions and increasing dedication, we expect to grow our competitive position in both Midland and the Delaware Basin. As we have demonstrated in the past, we will continue to grow our partnership to prudent management of leverage and coverage. We not only intend to remain good stewards of stakeholder capital, we also intend to continue to reward them through our peer-leading distributions. I am pleased to announce that our Board of Directors have approved the 50th consecutive increase in quarterly distribution to $1.11 and a half per unit. This is an extraordinary achievement, and we're extremely proud of our team and financial prudence that have gotten us here. To conclude, we are very excited about the prospect of DELEC Logistics. We expect to continue on our value creation path moving forward, and we will continue to grow our distribution in the future. I will now hand it over to Ruben who will provide more details on our operations.

speaker
Ruben
SVP, Operations

Thank you, Abigail. As Abigail mentioned, our excitement about DKL's future is growing, and we continue to work diligently to strengthen our advantage position. As I mentioned on our last call, we had began commissioning our Libby 2 gas plant. Since then, we have completed the commissioning and transferred the plan to operation. The plant is performing according to expectations, and as Avigal mentioned, we expect to fill up the plant up over the remainder of the year. As we also mentioned in our last call, planned capex for LIBI II included investments that will support future expansions of the LIBI complex. Our current focus around Libby Complex is to continue progressing our sour gas treating, gathering, and acid gas injections capabilities. We continue to believe that our expanded gas processing and sour gas handling capabilities provide a unique offering to our customers and provides us with a long runway of growth in the Delaware Basin. Additionally, since we are one of the few companies which can handle all three streams, crude, gas, and water, Our natural gas GNP expansion is opening additional opportunities for us on crude and water gathering in the Delaware Basin. As Abigail mentioned, we have seen our crude gathering volumes rise to start the third quarter and we expect to continue to see this trend going forward. On the Midland side, the integration of the two water gathering systems from H2O and Gravity is progressing well and we expect to use our larger footprint to enhance our combined crude and water offering in the Howard, Martin, and Glasgow counties. Finally, we continue to look for opportunities to make our operations more efficient with targets to improve margins across our operations. With that, I will pass it on to Robert.

Disclaimer

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